sensio technologies corporate presentation may 2011
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SENSIO Corporate presentation - May 2011TRANSCRIPT
SENSIO TECHNOLOGIES CORPORATE PRESENTATION
NICHOLAS ROUTHIERPresident and CEO, SENSIO Technologies Inc.
May 2011
5/16/2011
3D PIONEERS
First live 3D simulcast on multi-platform; cinema, stadium and home, with ESPN (2009)
First worldwide live 3D event in cinemas: FIFA World Cup soccer (2010)
First live 3D event in theatres: BCS Bowl (2009)
First 3D technology to be standardized: DVD Forum (2009)
First Full HD 3D for broadcast (2008)
First satellite transmission of 3D content with Cinedigm (2007)
First Live 3D solution demonstrated with IDC (2007)
First 3D console game using SENSIO –Ubisoft: Avatar: The Game (2009)
First proprietary format integrated into a mass market 3DTV: Vizio (2010)
Integration into chips from 6 major chipmakers including Mediatek, Trident, Sigma Design.
12 YEARS CREATING THE INDUSTRY
• Founded in 1999 by current CEO and EVP
• Specialized in the development and marketing of stereoscopic (3D) image-processing technologies, and supporting services
• SENSIO® Hi-Fi 3D: the worldwide leading 3D proprietary format
• Based in Montreal, Canada
• 27 employees in Montreal office
• Publicly-traded company on TSX Venture (SIO.V)(SIO.V); year-end May 31
First release of 3D DVDs of movies from Hollywood studios - Spy Kids 3D, first title (2005)
First demonstration of multi output playback from a single source (2004)
First full-resolution consumer 3D product anaglyph, page flip and 2D (2003)
2
DISTRIBUTIONREGULAR TV OR 3D READY
DISPLAY
3D CONTENT CREATION PLAYBACK
ENABLING TECHNOLOGIES
Award-winning SENSIO® HI-FI 3D Technology
SENSIO® 3D Encoder SENSIO® Hi-Fi 3D
SENSIO® 3DDecoder SENSIO® Hi-Fi 3D
5/16/2011
3
DISTRIBUTIONREGULAR TV OR 3D READY
DISPLAY
3D CONTENT CREATION PLAYBACK
ENABLING TECHNOLOGIES
Award-winning SENSIO® HI-FI 3D Technology
SENSIO® 3D Encoder SENSIO® Hi-Fi 3D
SENSIO® 3DDecoder SENSIO® Hi-Fi 3D
SENSIO® S2D Switch2D or 3D selection
and formatting
5/16/2011
4
DISTRIBUTIONREGULAR TV OR 3D READY
DISPLAY
3D CONTENT CREATION PLAYBACK
ENABLING TECHNOLOGIES
Award-winning SENSIO® HI-FI 3D Technology
SENSIO® 3D Encoder SENSIO® Hi-Fi 3D SbS TaB
SENSIO® 3DDecoder SENSIO® Hi-Fi 3D SbS TaB Noise reduction
SENSIO® S2D Switch2D or 3D selection
and formatting
5/16/2011
5
DISTRIBUTIONREGULAR TV OR 3D READY
DISPLAY
3D CONTENT CREATION PLAYBACK
ENABLING TECHNOLOGIES
Award-winning SENSIO® HI-FI 3D Technology
SENSIO® 3D Encoder SENSIO® Hi-Fi 3D SbS TaB
SENSIO® 3DDecoder SENSIO® Hi-Fi 3D SbS TaB Noise reduction
SENSIO® S2D Switch2D or 3D selection
and formatting
SENSIO®
Autodetect
5/16/2011
6
5/16/2011
DIVERSIFIED MARKETS
PROFESSIONAL & BROADCASTING
LIVE 3D IN CINEMAS
CONSUMER ELECTRONICS
SENSIO POWERS…
7
LIVE 3DIN CINEMAS
5/16/2011
A FAST-GROWING MARKET LIVE 3D IN CINEMAS
Evolution of 2D and 3D digital screens worldwideVolume (Ku)
Evolution of 2D and 3D digital screens worldwideVolume (Ku)
Source : ScreenDigest et RealD
The “Avatar Effect” - December 2009
20% 29%Penetration 3D screens/ Digital screens 61%61%61%55%
+26 pts
5156
6257 7346
14306
21645
27065
1299 2543 8989
21936
33855
42395
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
2007 2008 2009 2010 2011 2012
Unit sales (K
)
2D Screens 3D Screens
9
5/16/2011
GROWING OUR EXPERTISE
TECHNOLOGY PROVIDER
2009 BCS BOWL
DISTRIBUTION FACILITATOR
2010 FIFA WORLD CUP™
EVENT PROMOTER
2011 NBA
LIVE 3D IN CINEMAS
10
5/16/2011
QUALITY LEADING THE WAY LIVE 3D IN CINEMAS
LINE OF BUSINESS
MARKET POSITIONING BUSINESS MODEL
TECHNOLOGY PROVIDER
SENSIO® Hi-Fi 3D is the dominant format for the distribution of live 3D events in theatres worldwide:• Over 800 screens installed• More than 50 events
presented on 5 continents
IP licensing – 2 models• Fixed amount payable as
one-time or per-event• Ongoing – as a fixed
amount per ticket sold
LIVE 3D CONTENT DISTRIBUTION
SENSIO’s aim: to be a leading supplier of quality live 3D content to theatres part of its worldwide network
Box office share
11
UNIQUE, READY-TO-GO, EVER-EXPANDING, WORLDWIDE
The SENSIO® 3D Live Network:839 cinemas
Over 50 events
12 LIVE 3D IN CINEMAS
5/16/2011
2011 OUTLOOK LIVE 3D IN CINEMAS
• CONTINUE TO EXPAND OUR SENSIO® 3D LIVE NETWORK– EXPANSION IN ASIA – MAIN FOCUS IN 2011
– NEW OPPORTUNITIES IN USA
• MORE SPORTS, CONCERTS AND ENTERTAINMENT EVENTS DRIVEN BY SENSIO
“ WE ARE EXPECTING STEADY GROWTH IN THE COMING YEAR"
13
CONSUMER ELECTRONIC
MARKET
0 1 3,1 18,8 36,4 67,9 102
205 215 226 235 243 251 261
0
50
100
150
200
250
300
2008 2009 2010 2011 2012 2013 2014
Other TVsshipped3DTVsshipped
5/16/2011
3D MOVING INTO THELIVING ROOM
Evolution 3DTVs worldwideVolume (Mu)
Evolution 3DTVs worldwideVolume (Mu)
0% 0.5%Penetration3DTVs / Total TVs
27%15%8%1.4% 39%
CONSUMER ELECTRONICS
Total TVs shipped
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5/16/2011
QUALITY LEADING THE WAY
LINE OF BUSINESS MARKET POSITIONING BUSINESS MODEL
TECHNOLOGY PROVIDER– CE MANUFACTURERS AND CHIP MAKERS
SENSIO® Hi-Fi 3D is the leading non-open-source format in the CE market.
SENSIO’s aim: to be the leading provider of stereoscopic (3D) image-processing cores in the industry
IP licensing oftechnology cores based on volume and packaged pricing
CONTENT AGGREGATOR
SENSIO’s aim: to be a leading supplier of quality 3D content to VOD distributors
VOD rental revenueshare
CONSUMER ELECTRONICS
16
5/16/2011
PERMEATING THE ECOSYSTEMCONSUMER ELECTRONICS
• SENSIO® HI-FI 3D• SENSIO ® S2D SWITCH• SENSIO® AUTODETECT
SENSIO PRODUCTS
S/W MEDIA PLAYERS
17
5/16/2011
PERMEATING THE ECOSYSTEMCONSUMER ELECTRONICS
GAMES
VODPPV
3D TITLES
SENSIO® 3D Content Library
SENSIO PRODUCTS
SENSIO® Hi-Fi 3D technology for console games
SENSIO PRODUCTS
• SENSIO® HI-FI 3D• SENSIO ® S2D SWITCH• SENSIO® AUTODETECT
SENSIO PRODUCTS
S/W MEDIA PLAYERS
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5/16/2011
PERMEATING THE ECOSYSTEMCONSUMER ELECTRONICS
GAMES
VODPPV
3D TITLES
SENSIO® 3D Content Library
SENSIO PRODUCTS
SENSIO® Hi-Fi 3D technology for console games
SENSIO PRODUCTS
TIER-ONE
CHIP MANUFACTURERS
TIER-ONE
SENSIO PRODUCTS
• SENSIO® Hi-Fi 3D• SENSIO® Autodetect• Image enhancement
- scaling- noise reduction- de-interlacer
• SENSIO® HI-FI 3D• SENSIO ® S2D SWITCH• SENSIO® AUTODETECT
SENSIO PRODUCTS
S/W MEDIA PLAYERS
19
5/16/2011
2011 OUTLOOK CONSUMER ELECTRONICS
• CE MANUFACTURERS – EXPANSION DRIVEN BY DIFFERENTIATION– SENSIO ® Hi-Fi 3D – the high-fidelity format – will make significant inroads
• VIZIO effect
• Appeal of SENSIO ® 3D Content Library (VOD)
• SEMICONDUCTORS– Leverage success of SENSIO® Hi-Fi 3D to generate sales with SENSIO ® Autodetect
• SENSIO® S2D SWITCH– Negotiations are going well – snowball effect
20
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
TECHNOLOGY
CONTENT - VOD
TECHNOLOGY
DEVELOPMENT SALES AND REVENUES (PRODUCTS ON THE MARKET)
LINES OF BUSINESS 2008 2009 2010 2011
CONTENT - LIVE 3D DISTRIBUTION
RESEARCH
2012
TIMELINE
CONSUMER ELECTRONICS
PROFESSIONAL & BROADCASTING
TECHNOLOGY - CE MANUFACTURERS
TECHNOLOGY - CHIP MAKERS
LIVE 3D IN CINEMAS
MARKETS
5/16/2011
COMING TO FRUITION21
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
TECHNOLOGY
CONTENT - VOD
TECHNOLOGY
DEVELOPMENT SALES AND REVENUES (PRODUCTS ON THE MARKET)
LINES OF BUSINESS 2008 2009 2010 2011
CONTENT - LIVE 3D DISTRIBUTION
RESEARCH
2012
TIMELINE
CONSUMER ELECTRONICS
PROFESSIONAL & BROADCASTING
TECHNOLOGY - CE MANUFACTURERS
TECHNOLOGY - CHIP MAKERS
LIVE 3D IN CINEMAS
MARKETS
5/16/2011
COMING TO FRUITION22
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
TECHNOLOGY
CONTENT - VOD
TECHNOLOGY
DEVELOPMENT SALES AND REVENUES (PRODUCTS ON THE MARKET)
LINES OF BUSINESS 2008 2009 2010 2011
CONTENT - LIVE 3D DISTRIBUTION
RESEARCH
2012
TIMELINE
CONSUMER ELECTRONICS
PROFESSIONAL & BROADCASTING
TECHNOLOGY - CE MANUFACTURERS
TECHNOLOGY - CHIP MAKERS
LIVE 3D IN CINEMAS
MARKETS
5/16/2011
COMING TO FRUITION23
MARKET DRIVERS: WHAT TO LOOK FOR
2011-05-16
24
• BLA
• BLA
FINANCIALS
5/16/2011
MONETIZING THE OPPORTUNITIES
LIVE 3D IN CINEMAS
• Average acquisition cost of SENSIO technology at maturity: $2,000
• Worldwide potential market as of December 2010:22,000 screens x $2,000 = $44 million
• Worldwide potential market at maturity :150,000 screens x $2,000 = $300 million
FYE FYE 9 months
2009 2010 2011
Revenue – Technology (000’s) 427 641 1,000
Percentage growth n/a 50.1% 56%
25
SENSIO® 3D screensY1 = 2008
RealD 3D screensY1 = 2005
TOTAL WORLDWIDE 3D SCREENS: 21.9K (CYE 2010)
Growth assumption (based on RealD historical growth figures):
82 241718
105
6741100
2108
5321
0
2000
4000
6000
Y1 Y2 Y3 Y4 Y5
X 10,5
X 8,7
?
?
?
?
LIVE 3D IN CINEMAS
MONETIZING THE OPPORTUNITIES
• FYE 2012: 800 new screens = 1500 network• FYE 2013: 2500 new screens = 4000 network
26
5/16/2011
MONETIZING THE OPPORTUNITIES
CONSUMER ELECTRONICS
• Price between $0.25 to $2.50
• Average price / product = $0.50
2011 2012 2013 2014
Assuming Vizio share of 3DTVs similar to 2DTVs in North America USA, Canada, Mexico (20%)
1.06M 1.86M 3.23M 4.86
27
5/16/2011
OTHER REVENUE SOURCES FOR FYE 2012
• SENSIO® S2D Switch (patent licence)
• SENSIO® Autodetect to chip makers
• SENSIO® Content Library (via VOD)
• Live 3D content
• Professional and broadcast market
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5/16/2011
LONG-TERM POTENTIAL MARKET
MARKETS WW 2D MARKET 2010
PENETRATION RATE AT
MATURITY
AVERAGE PRICE / UNIT
$ POTENTIAL
TV sets 226 M ? $0.50 ?
PC & laptops 333 M ? $0.50 ?
STB 148 M ? $0.50 ?
Mobile 281 M ? $0.50 ?
Total 988 M ? $0.50 ?
CONSUMER ELECTRONICS
You do the math!
29
5/16/2011
COMPARABLES
GLOBAL IP LICENSING COMPS Trdg Curr
Local Price Pot. Mkt. Cap. Revenue (USD) P/E EV/Sales EV/EBITDATicker Rtg 09-mai Target Return (US$M) C11E C12E C11E C12E C11E C12E C11E C12E
D-BOX Technologies Inc. TSX:DBO SO CAD 0,56 1 79% 95 9 20 NM NM 8,4 3,9 NM 25,7SENSIO Technologies, Inc. TSXV:SIO SO CAD 0,81 3 270% 42 3 8 NM 52,3 11,9 4,2 NM 32,7Wi-LAN Inc. TSX:WIN SO CAD 5,93 11 85% 718 111 146 9,6 6,7 4,9 3,7 7,5 5,1QUALCOMM Incorporated QCOM NR USD 56,66 64,67 14% 94 596 14 990 16 671 18 16 5,5 5 12,2 11Dolby Laboratories, Inc. DLB NR USD 49,78 60,04 21% 5 578 936 1 053 18,6 15,9 5,2 4,6 10 9,1Rovi Corporation ROVI NR USD 49,42 67,27 36% 5 566 780 926 20,8 16,5 7,2 6 16 13InterDigital, Inc. IDCC NR USD 46,02 51 11% 2 087 366 403 17,5 15,4 4,3 3,9 6,3 5,5RealD Inc. RLD NR USD 31,03 29,5 -5% 1 592 359 406 NM 35,8 4,3 3,8 16,7 11,2Tessera Technologies Inc. TSRA NR USD 18,98 28 48% 970 303 346 14 11,3 1,6 1,4 5,3 4,1Acacia Research Corporation ACTG NR USD 39,82 45 13% 1 703 182 227 32,9 22,5 7,7 6,1 19 13,8DTS Inc. DTSI NR USD 44,24 48,69 10% 769 104 126 32,9 24,2 6,5 5,4 16,2 11,8MIPS Technologies Inc. MIPS NR USD 8,23 12 46% 427 84 96 22,2 15,8 3,9 3,4 13,1 9,7MOSAID Technologies Inc. TSX:MSD NR CAD 28,75 35,5 23% 353 89 124 10,3 7 2,6 1,9 4,7 NM SRS Labs Inc. SRSL NR USD 8,26 11,17 35% 123 37 44 27,1 14,5 2,5 2,1 NM NM 01 Communique Laboratory Inc. TSX:ONE NR CAD 0,4 0,75 88% 25 1 12 NM NM NM 1,6 NM 2DEQ Systems Corporation TSXV:DEQ NR CAD 0,39 NA NA 28 NA NA NM NM NM NM NM NM
Mean 21,4x 17,7x 4,7x 3,8x 11,9x 9,1x
Median 19,7x 15,9x 4,3x 3,9x 12,6x 10,3x
SOURCE: NCP, Capital IQ (SIO-V, DBO.A-V, and WIN-T are NCP estimates; DBO.A-V is covered by Rob Goff; SIO-V, WIN-T are covered by Ralph Garcea)
30
5/16/2011
CAPITAL STRUCTURE
1 - As of market close on May 13, 2011 2 - As at February 28, 2011
SHARE PRICE1 $1,08
52.4M
$0.76
2M
54.3MFD SHARES
FD MARKET CAP
$41.3M
52 WEEK HIGH
52 WEEK LOW
$2.15
$0.72
CASH2
DEBT
$7.2M
$0
BASIC SHARES
OPTIONS & WARRANTS
SHAREHOLDER STRUCTURE:• Board and management 20%• Institutional 30%• Free Float 50%
31
MARKET DRIVERS: WHAT TO LOOK FOR
2011-05-16
32
• BLA
• BLA
QUESTION PERIOD