Intrinsyc Investor Presentation
March 2019
Intrinsyc
Designs, Develops, and Builds
Intelligent IoT Products
Interconnecting People
And Their World.
Safe Harbor
StatementThis presentation contains statements which, to the extent that they are not recitations of historical fact, may constitute
forward-looking information under applicable Canadian securities legislation that involve risks and uncertainties. Such
forward-looking statements or information may include financial and other projections as well as statements regarding the
Company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the Company's underlying
assumptions.
Actual results, performance, or developments could differ materially from those expressed or implied by the forward looking
statements contained in this presentation as a result of known and unknown risks, uncertainties, and other factors including
those identified in the Company's reports filed on SEDAR, including its Annual Information Form and financial report for the
year ended December 31, 2018. This list is not exhaustive of the factors that may affect the Company’s forward-looking
information.
These and other factors should be considered carefully and readers should not place undue reliance on such forward-
looking information. All forward-looking statements made in this presentation are qualified by this cautionary statement and
there can be no assurance that actual results or developments anticipated by the Company will be realized. The Company
disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new
information, future events or otherwise, except as required by law.
www.intrinsyc.com
Enabling
Intelligent
Connected
Devices
Industrial IoT Smart Cities Drones/Robotics Wearables
Retail/Digital Signage In-Flight Entertainment Automotive Health & Fitness
Smart Homes Military/SecurityCameras Virtual Reality
Internet Of Things
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Challenges in Building Intelligent Connected Devices
Access to Next-generation Computing
Technology
Volume Flexibility
Need Complex Software Development
Language and Time Zone Barriers
IP Protection
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Intrinsyc Solves the Critical Challenges
• Advanced Qualcomm Technology for IoT Devices
• Off-the-Shelf Computing Modules Allows for Volume Flexibility
• Preeminent Expertise in Advanced Computing Technology and
Software Development
• Vancouver Engineering Center allows for Better Collaboration with
North America Clients and IP protection
• Development Kits
• References Designs
• Production Computing Modules
• Comprehensive Design
& Development Services
Intrinsyc Solutions
Open-Q™ 845 HDK Dev Kit
Qualcomm™ Flight Pro
Open-Q™ 835 HDK System On Module Open-Q™ 410 System On Module
S820Am v2 Automotive
Development Platform
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Snapdragon-based Modules are Very Small Percentage, but Should Grow Significantly
Embedded Computing Modules - US$2.7B TAM
Source: QYR Electronics Research Center
$1.4
$1.6
$1.8
$2.1
$2.4
$2.7
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2017 2018 2019 2020 2021 2022
Billion (US$)
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IoT Trends Favorable for Snapdragon and Intrinsyc
• Intelligence at the Edge
• New Types of IoT Devices
• Use in Consumer Electronics
• Higher Computing Power
• More Sophisticated Software
• Shorter Innovation Cycle
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Strong Relationship Helping to Drive Growth
One of a Limited # of partners in Qualcomm’s IoT Ecosystem
Early Access to Latest Technology and Direct Technical Support
Roadmap/Product Development Collaboration
Exclusive Arrangements for Certain Development/Reference Platforms
Referrals to other Industry Leading Technology Vendors
Products Exhibited within Qualcomm’s Booth at Major Trade Events
Support for Press Releases, Case Studies, and other Marketing Materials
Direct Referrals of Sales Opportunities from Qualcomm Sales & Business Development Teams
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Revenue Model
Revenue
Gross Margin
$4K - $50K
X 18% - 25%
Revenue
Gross Margin X 25% – 50%
$10K -
$1.5M
= $5K – $500KGross Profit
Revenue per Unit $50 - $300
Gross Margin X 10% - 25%
$10 -
$60= $1K - $12KGross Profit
Gross Profit Per Unit
Royalty per Unit $0 - $10
100 – 50K units sold per
year, over 1- 7 years
Non-Recurring Engineering Repeat Production Hardware
Recurring Royalty
Development Kits
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Path to Repeat Revenue
Prospect/
Qualify/BidDesign Win/Development Production Win
• Development
Kit Sales
1 – 24 Months
Prospect
• Product
Development
Phase – NRE Fees
6 – 12 Months
Design-Win
• Prototypes and
Marketing Unit
Sales
3 – 12 Months
Pilot Production
• Volume Computing
Module Sales or Design
Royalties
(Margins improve with age)
1 – 8 Years
Commercial Release
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0 3
11
2024
6
13
20
25
35
0
10
20
30
40
50
60
70
2014 2015 2016 2017 2018
DESIGN WINS
In-Production In Development
Maturing and Expanding Client Base
Design Wins are Clients Actively Developing Products
based on Intrinsyc Computing Modules or Shipping
Products using Intrinsyc Computing Modules.
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Strong Revenue Growth – 26.4% CAGR since 2014 (US$M)
$10.1
$12.5
$17.5
$20.7
$25.7
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
2014 2015 2016 2017 2018
Revenue
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Consistent Positive EBITDA Performance (US$M)
**
$0.4
$1.7 $1.8
$0.8
$1.9
$-
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
$2.0
2014 2015 2016 2017 2018
EBITDA
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Cash: US $6.0M
Net Working Capital: US $10.4M
Line of Credit: CDN $4.4M
No Debt
Canadian Tax Shield: US $27.1M
Strong Financial Position (December 31, 2018 )
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2019(14) Computing Modules +
(21) Development/Reference Platforms
2014(2) Computing Modules +
(2) Development Platforms
Broadening Product Portfolio
Growth Strategy
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Geographic Sales Expansion
Growth Strategy
72% of Market Opportunity
is outside of N.A.
Intrinsyc is Focused on
Expanding in Europe in
2019 (37.2% of global market)
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Drive Scale to Improve Buying Power and Gross Margins
Growth Strategy
Every ~$7M in Hardware Revenue Growth
Should Lead to1% Gross Margin
Improvement
Hardware Margin is Currently 21%
Long-term goal is 28%+
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Acquisitions to Accelerate Growth
Growth Strategy
Acquisition
Criteria
• Complementary Products
• Improve Buying Power/Margins
• Provide Cross-selling Opportunities
• Geographic Expansion
• Increased size attracts new and institutional investors
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A Compelling Investment
Focused on High
Growth IoT
Market
Positive
Industry Trends
Driving Growth
Strong
Technology
Partnerships
Expanding and
Maturing Client
Base
Repeat Revenue
Model
Expanding
Product Portfolio
Revenue Scale to
Drive Margin
Improvement
Strong Balance
Sheet
Acquisitions to
Accelerate
Growth