NAVYA (Paris:NAVYA) (FR0013018041- NAVYA), a leading company in autonomous driving systems, announces its 2019 annual results.
Etienne Hermite, Chief Executive Officer of NAVYA, says: “In 2019, the various trials carried out on a global scale demonstrate the relevance of autonomous vehicles as tomorrow’s innovative and responsible mobility solution over short distances – first and last mile – within a controlled environment and at limited speed. In 2020, NAVYA will continue to invest in the development of its technology and is reasserting its ambition of being the leading player in supplying level 41 autonomous driving systems. Endowed with a strengthened financial structure, I am convinced that our teams’ commitment and our technological leadership will allow us to seize market opportunities and establish NAVYA as the benchmark partner in supplying autonomous driving systems on this market segment”.
Simplified income statement
Revenues of €15.0 million and improvement in the gross margin in the second half of the year
In 2019, NAVYA sold 43 AUTONOM® SHUTTLE vehicles and generated revenues of €15.0 million, down 21% compared with the 2018 financial year during which NAVYA had benefited from an exceptional order for 10 shuttles from AVENUE, a European consortium. However, the sales momentum was stronger in the second half of the year. The United States, for example, the Company’s largest market with 22 vehicles sold in 2019, recorded the commercialization of 2 fleets of 5 shuttles during the fourth quarter of 2019 alone.
At December 31, 2019, the installed base of AUTONOM® SHUTTLE vehicles was 159, a +37% increase. Services revenues continued to grow and totaled €2.9 million, an increase of +26%, and accounted for 19.0% of revenues in 2019 versus 12% in 2018. This ramping up is in line with NAVYA’s strategy of developing a range of services associated with autonomous vehicles.
The decrease in the gross margin of the Company’s Hardware activity was due to the weak commercial momentum and lesser absorption of fixed production costs. However, the Company observed a significant improvement during the second half of the year following an upturn in revenues and a reduction in production costs. The gross margin, which was -7% in the first half of 2019, thus rose to +13% in the second half. For its Services activity, NAVYA strengthened its workforce in the Client Support department and undertook software updates. The increase in revenues recorded in the second half of 2019 and productivity gains led to a reduction in the Company’s losses. The gross margin thus improved significantly from -44% in the first half of 2019 to -13% in the second.
R&D investments rose substantially in 2019, the workforce having doubled over the last two years. This increase in expenses is enabling the Company to develop its technology in order to strengthen its leadership and thus become a benchmark player in the supplying of level 41 autonomous driving systems.
Sales & Marketing and General & Administrative expenses increased by +4% and +14% respectively, driven by the full-year impact of the recruitments carried out during the second half of 2018 and an increase in IT spending.
Lastly, Other expenses essentially correspond to asset depreciation following the decision to focus exclusively on the AUTONOM® SHUTTLE market segment and stop production of « robocabs ».
All in all, the Operating loss and Net loss were -€31.2 million and -€32.3 million respectively, and reflect the decrease in Hardware activity on the one hand and the investment phase NAVYA is currently in on the other.
Strengthening of the financial structure: cash position of €19.0 million at end-2019 and an additional €11.9 million following the payments in 2020 of the “Dubai World Challenge for Self-Driving Transport” prize money and the completion of the bond issue subscribed by ESMO Corporation
At December 31, 2019, the Company had a cash position of €19 million, vs. €19.5 million at end-2018.
In January 2020, NAVYA received the 1.9 M€ corresponding to the prize money received in October 2019 as part of the “Dubai World Challenge for Self-Driving Transport”.
In February 2020, NAVYA announced the subscription by ESMO Corporation of the remaining 10 ORNANE (bonds repayable in cash and/or into new and/or existing shares) for €10 million, thus strengthening its investment capacity. The proceeds of the issuance of these bonds will primarily be used to strengthen R&D activities in order to improve the autonomous driving systems developed by NAVYA. They will also contribute to the Company’s commercial deployment.
H2 2019 highlights and events since the beginning of January 2020
The second half of 2019 was marked by some significant achievements:
– Launch of the first open-road autonomous shuttle service in Florida for the Lake Nona community in Orlando;
– NAVYA wins two (“Best Endurance & Reliability” and “Best Consumer Experience”) of the three awards granted at the first world challenge organized by the Dubai Roads and Transport Authority dedicated to actors specializing in autonomous passenger transportation on limited routes – first mile/last mile – at reduced speed;
– Launch of an AUTONOM® SHUTTLE service in Singapore for visitors to Gardens by the Bay, a 100-hectare garden located in the center of Singapore;
– Launch with Keolis of an open-road autonomous shuttle service fully integrated within Lyon’s public transport network to serve the Parc Olympique Lyonnais stadium;
– World premiere at Toulouse-Blagnac airport with the experimentation, in real conditions, of the AUTONOM® TRACT vehicle, an autonomous luggage tractor developed in collaboration with Charlatte Manutention for the transportation of goods;
– Open-road deployment of AUTONOM® SHUTTLE vehicles in Japan and Denmark;
– Completion, on February 20, 2020, of the bond issue subscribed to by ESMO Corporation for €20 million.
From an operating standpoint, NAVYA will continue the testing, initiated in 2019, of its AUTONOM® Tract vehicle developed in collaboration with Charlatte Manutention for transporting goods.
The Company is also intending to undertake, from the first half of 2020, the first “Full Autonom Level 4” (no safety driver onboard the vehicle) tests on its shuttle and Tract vehicle
At the same time, NAVYA wants to initiate the deployment of its technology on 1 or 2 additional platforms, such as the AUTONOM® Tract developed with Charlatte, in 2020.
Between January 28, 2020, when NAVYA announced its 2020 outlook, and today’s publication of its financial statements, the coronavirus health crisis has emerged. With the situation evolving rapidly all around the world, at this stage it is difficult to anticipate what the impacts will be between now and the end of the year. The Group is working on contingency plans and has already implement measures to protect its employees, as well as to best continue meeting its clients’ requirements.
Annual accounts are available at: www.navya-corp.com/fr/investisseurs/information-reglementee/documentation.
2019 annual results have been approved by the Board of Directors and were reviewed by the Supervisory Board on March 24, 2020.
Next financial press release: H1 2020 results, at 5:45 pm on September 23, 2020
NAVYA is a leading French name in the autonomous driving systems. With 280 employees in France (Paris and Lyon) and in the United States (Michigan), NAVYA aims at becoming the leading player for the supply of autonomous driving systems for passenger and goods transport. Since 2015, NAVYA has been the first to market and put into service autonomous mobility solutions. The AUTONOM® SHUTTLE, main development axis, was launched in September 2015 and nearly 160 units have been sold as of 31 December 2019, notably in the United States, France, Germany, Switzerland, Japan and Australia. The AUTONOM® TRACT is dedicated to goods transport. Created in 2014 with the support of Robolution Capital, investment fund managed by 360 Capital Partners, his reference shareholder, NAVYA’s shareholders also include the Gravitation fund and Paris Region Venture Fund (Région Île-de-France) managed by Cap Decisif Management as well as Valeo and Keolis groups.
NAVYA is listed on the Euronext regulated market in Paris (ISIN code: FR0013018041- NAVYA).
For more information visit: www.navya.tech/en
1 Level 4 is the penultimate level before completely autonomous driving. Within a limited context and pre-defined situation, the car is able to move without a safety driver onboard the vehicle.
Nicolas de Crémiers
Head of Marketing
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