Interim Report January - September 2021

GÖTEBORG, SE / ACCESSWIRE / October 22, 2021 / Smart Eye (STO:SEYE) (OTC PINK:SMTEF) (FRA:SE9)

Strong rebounce post Covid - New exciting perspectives

July - September 2021

• Net sales amounted to SEK 30.9 (15.2) million, which is an increase of 103% compared to the corresponding period previous year, of which 35% was organic growth.
• Operating loss totaled SEK -46.8 (-12.8) million. The acquisition of Affectiva contributes to SEK -11.2 million of the operating result. Depreciation of the surplus value created in conjunction with the Affectiva acquisition amounts to SEK 18.6 million.
• Profit/loss after financial items was SEK -46.8 (-12.9) million.
• Profit/loss after tax per share is negative.
• Cash and cash equivalents totaled SEK 326.3 million at the end of September
• In July, four design wins were obtained from a global North American OEM. The order is for four new car models on an existing platform with an estimated order value of SEK 100 million, and 1st of October an additional design win with an existing Japanese customer was communicated. Estimated order value SEK 25 million.

January - September 2021

• Net sales amounted to SEK 66.0 (46.8) million, which is an increase of 41% compared to the corresponding period previous year, of which 19% was organic growth
• Operating loss amounted to SEK -87.3 (-57.7) million.
• Profit after financial items amounted to SEK -87.3 (-58.0) million.
• Earnings after tax per share are negative.
• In May the company entered into an agreement to acquire Affectiva, a Boston based Emotion AI company, for a consideration of USD 73.5 million. In conjunction with the acquisition a directed share issue of SEK 275 million were completed.

Comments from the CEO

We are back and have surpassed our pre-covid levels of business activity. All our business areas are performing very well and our position in the market is as good as it has ever been. We stand strong in the business pursuits in Automotive Solutions, we have a pent-up market demand for our brand new fleet product soon to be delivered, and our research products are picking up speed post pandemic.

Automotive

• Let's put some color on our existing automotive production programs. We have been hamstrung by NDAs to talk openly about all but a few OEMs, but it is possible to give more information in general terms.
• We have three OEMs in production with cars equipped with our software being produced out of Europe, US, Korea, and China.
• Since the start of series production in 2018, we have equipped more than half a million cars with Smart Eye software, and are rapidly approaching one million in total delivery, a number that we will surpass during the first half of 2022.
• We expect two more car OEMs to start production in Q4 this year, or latest early next year.
• Next year we will add production in Japan.
• The majority of the 89 car models that we won until now will be in production before the end of 2023.

Let's now put some color on the ongoing automotive procurements where we are currently participating. Generally speaking, our competitive position contionues to be very strong thanks to our long history of delivering DMS and Eye Tracking to highly qualified customers during the last 22 years.