Ceva, Inc. · NASDAQ:CEVA
Ceva — Investor Day (January 2019)
166 slides from Ceva's investor day presentation, Jan 14, 2019
Slide 1: Welcome to CEVA 2019 Investor and Analyst Day
Welcome to CEVA 2019 Investor and Analyst Day Richard Kingston
Slide 2: Legal Notice
Legal Notice © Forward Looking Statement This presentation contains forward-looking statements and projections about our strategy, market opportunity, customer base, product penetration and market share, stockholder returns, and our future performance and achievements, financial and otherwise. These
Slide 3: Billion CEVA-powered devices shipped worldwide
Billion CEVA-powered devices shipped worldwide
Slide 4: Recent News
Recent News New Customers nore SONOMA New Products 3» Pro™ CEVA BX CEVA Proprietary Information New Bristol, U.K. R&D Center
Slide 5: Agenda - Morning
Agenda - Morning 10:00am - 1 10:30am - 11: 11:10am - 11: 11:50am - 12:00pm 12:00pm - 12:30pm A Introduction Cellular Computer Vision, Al & Automotive Morning Sessions Q&A Lunch Gideon Wertheizer, CEO Emmanuel Gresset, Director, Business Development. Wireless BU Michael Boukaya. Vice President and GM
Slide 6: Agenda - Afternoon
Agenda - Afternoon 12 5pm Connectivity Franz Dugand, Director. Sales and Marketing. Connectivity BU Aviv Malinovitch, Vice President and GM Connectivity BU pm - 12: 12:55pm - 1:20pm Sound Moshe Sheier, Vice President, Marketing 1:20pm - 1:30pm Afternoon Sessions Q&A 1:30pm - Jpm China Insight Issach
Slide 7: Today's Presenters
Today’s Presenters — EE Gideon Wertheizer Yaniv Arieli Issachar Ohana CEO CFO EVP, Worldwide Sales CEVA Proprietary Information CEVA
Slide 8: Today's Presenters
Today’s Presenters ‘ ) XX ¢ aw Michael Boukaya Aviv Malinovitch Ilan Yona Moshe Sheier VP and GM, Wireless VP and GM VP and GM, Vision VP, Marketing & Sound Business Unit Connectivity Business Business Unit Business Unit Unit CEVA
Slide 9: Today's Presenters
Today’s Presenters Emmanuel Gresset Jeff VanWashenova Franz Dugand Director, Business Director, Automotive Director, Sales & Development, Wireless Segment Marketing Marketing, Connectivity Business Unit Business Unit CEVA Proprietary Information CEVA
Slide 10: CEVA: Signal Processing and AI Platforms for a Smarter, Connected World
CEVA Signal Processing and Al Platforms for a Smarter, Connected World Gideon Wertheizer www.ceva-dsp.com Copyright © 2019 CEVA, Inc.
Slide 11: CEVA at a Glance
CEVA at a Glance We innovate and license technologies that process and connect data from sensors for the Internet of Things Short Range Connectivity Smart Sensing EverythingCellular CEVA Proprietary Information CEVA
Slide 12: Everything Cellular
Everything Cellular From loT through Infrastructure A) iis 12 Smartphones / Mobile broadband > ~30 years experience in handset modem design > Comprehensive 5G platform, appeals to incumbents and new markets (e.g. automotive, industrial, fixed wireless) Base Stations RAN > Industry's most advanced SD
Slide 13: Smart Sensing
Smart Sensing Making cameras and microphones intelligent Al > Optimal integration of hardware and software > Lead customers in camera, drones, surveillance Camera - Computer/Machine Vision > First to introduce vision DSP and software algorithms > Strong foothold in consumer and loT = Microphone - Vo
Slide 14: Short Range Connectivity
Short Range Connectivity Bringing leading edge IP to the masses KC) Wi-Fi > The only viable and credible |P provider > Range of architectures SDM, HDM > Solutions for client devices and AP Bluetooth > Large market share, premier customer base > Standard body (SIG) contributor > Strong competitive ed
Slide 15: CEVA's IP Strategy Streamlines the Development of Emerging IoT SoCs
CEVA’s IP Strategy Streamlines the Development of Emerging loT SoCs Cuts time to market and R&D nses Mems Customer ee Customer IP icrophones, RE IP peeren Differentiators Voice Computer 4 Enhancements Vision Clie ieiesa Al Processor CPU (Cellular, Bluetooth, Wi-Fi °EVA Propristary Information CEVA
Slide 16: Business Model Practices
Business Model Practices © R&D Product dept: 2-3 years ranging fi 1 és & eH & & loyment End products ship for up to 5 years 10+ years Define architectures, develop care License and support customers to Long-tailroyalty streams generated technologies intandem withlead integrate IP into their SoC desi
Slide 17: Diverse Business & Growing Markets
Diverse Business & Growing Markets CEVATAM grows ~70%, based on expansion into emerging, high-growth areas 18 16 14 Units. billions ~10bn unitTAM Ea 2018 ~17bn unit TAM 2022 NOKIA @unisoc | Mobite Broadband | wescran ZTE = @ | cettutar or N©@ - Sigm@star Comptenvasionwal socionext’ €NevareK Sound /A
Slide 18: Exploiting both Short Tail and Long Tail Markets
Exploiting both Short Tail and Long Tail Markets ive surveillance t lifespan > r product life span » Short design cycle: integrated IP » Peruse license model, repetitive upgrades require vertically jesign cycles require high 18 CEVA
Slide 19: Summary - Our Growth Opportunities
Summary - Our Growth Opportunities Cellular » Handset / user equipment — LTE expansion in emerging rnarket & 5G upgrade cycle » Base stations - Expand customer base » New use cases - Automotive, fix » Cellular-loT- Capture newcomers tothe spi eless Connectivity » BLE - Gain share in the quickly grow
Slide 20: Thank You
Thank You
Slide 21: Cellular
CEVA Cellular Michael Boukaya Emmanuel Gresset www.ceva-dsp.com Copyright © 2019 CEVA, Inc.
Slide 22: 5G Vastly Expands Services and Use Cases
5G Vastly Expands Services and Use Cases Extreme Mobile Broadband & ‘En Infrastructure Control Buildings / Smart Home Wearables Virtual Reality @ Autonomous Vehicles Industrial / Robotics Enhanced Mobile Broadband Massive loT Mission Critical Services Anew underlyinginfrastructure gNB & HatNet needs
Slide 23: Cellular Market Dynamics & Opportunities
Cellular Market Dynamics & Opportunities CEVA Proprietary Information
Slide 24: Strong Growth of Mobile Broadband
Sous: Erkston Mbit po, Ho 2018 Strong Growth of Mobile Broadband 8.6bn Total Subscriptions B) For Mobile sutscriptions by technology billion) e billion 90% Mobile Br 29 billion ——_—| 7 I wcomasna WE0GE-onl Bl cOMA.on othe: CEVA Proprietary Information ‘Smartphone subscriptions by technology (billion
Slide 25: Cellular Modem Dynamics
Cellular Modem Dynamics Modem Shipment by oz) Technology 2.7Bn 13% Collularmodems will of allcellularmodems ship in 2022 will support 5G in 2022 > 5G will drive cellular modem growth starting in 2019 > 262% CAGR for 5G eMBB in 2019-22 > Strong LTE-A growth until 2021 > 18% CAGR of LTE-A handset in 2
Slide 26: 5G CPEs — 1Bn Unit 5G Opportunity
5G CPEs — 1Bn Unit 5G Opportunity 126M saver 900M house subscriptionsin 2022 vithout fixed band in 2022 Fixed Wireless Access 5G/LTE 40% « oyment than FTTH for similar performance de 5G CPE Antenna 5G Radio a ie 3 tke) i « Smartphones ! 20 © por zoe 2a 2020 zo 2 Direct NLOSpath from Small | 1Bnunit
Slide 27: HetNet Architectures for 5G and LTE-A Networks
HetNet Architectures for 5G and LTE-A Networks (9) cre ex aa » Ba TH eae Pico Cell clusters Femtocells Micro Cells - FWA Macrocells Heterogeneous Radio Access Network » Heterogeneous Networks (HetNet » Macrocells to serve a large number of users with high mobility over requires Small Cells to provid
Slide 28: The Base Station Opportunity
The Base Station Opportunity 14% CAGR‘18-’22 Installed M: Cell Legacy BTS tobe New LTE-Aand 5G BTSto upgraded to LTE-Aand be installed from ‘19 to ‘23 5G Macro build out and upgrade Small Cell is crucial & will exceed Macro shipment by 2023 with 36% CAGR Indoor Femtocell reaches 8Mu by 2023 Fixed Wi
Slide 29: Cellular IoT Connects Billions of Devices
Cellular loT Connects Billions of Devices WA networks are designed to connect essly billions of Ic vices to the d with the following requirements 10-year battery life 100K 10K-1Mbps devices/cell Periodic burst Cellular loT 10Km Secure coverage network Low cost $5/module & fo eMTC Cat-M Optimizing fo
Slide 30: Cellular IoT Opportunity
Cellular loT Opportunity Cellular loT Connections Cellular loT connections per region (billion) Connections by 2022 CAGR between '18 and ‘22 4s i ida South EastAsaand Oceania Nort Eastasa Tonepartant tee as Ml WostemEuope eS seating ral and Eastom Europ rex nasgeret Sra gre one toa = aoa D lo East a
Slide 31: The Strategy
The Strategy
Slide 32: The "Expert Source" for Wireless IP
The “Expert Source” for Wireless IP 7Bn Handsets Powered by CEVA Successfultrack record 3 of top 5 OEMs licensed from 2G to 5G already 32 CEVA Propristaryinformation Targeting massive deployment for a broad range of Industries CEVA
Slide 33: CEVA Wireless Strategy
CEVA Wireless Strategy o° eo 8° Move fromm DSP to 5G Expand leadership for Capitalize on unique mobile platform all base station competency to expand solution, generating segments, resulting in into mass market of value-add and higher long tail business, cellular loT and enabling ASP. higher and luc
Slide 34: Mobile Broadband
Mobile Broadband
Slide 35: Mobile Broadband - Streamline the Path to 5G
Mobile Broadband - Streamline the Path to 5G —IncumbentPlayers OEM Internalization The China Market » CEVAwireless IPs power » OEMsare ingto internalize » China strongly pushes 5G billions of devices modem tech gy nationaldeployment and » Co-ordination with existing » Better margin aiming to achieve
Slide 36: A Sizable & Lucrative Opportunity for Non-Handset Devices
A Sizable & Lucrative Opportunity for Non-Handset Devices hentsto open new big e Ree > 7 g i mers are entering these markets but lack wirele ‘0 producti ution @ \ fa path in orderto reduce °EVA Propristary Information CEVA
Slide 37: Challenges of 5G-NR Modem Design
Challenges of 5G-NR Modem Design Efficient modem design for 5G-NRis exponentially more complexthan previous standards and calls forsoftwa' ased architecture approach 1. High Performance & Power Optimized 3. Flexibility for Key 5G Functionality Multi-Gigabit capacity ofup to 10 Gbps Massive MIMO algo
Slide 38: Introducing the PentaG Platform
Introducing the PentaG™ Platform World’s most advanced 5G NR IP platform for smartphonesand broadband connected devices » Industry's first 5G-NR Rel.15 IP platform, supporting upto: capable of mee e extreme performance and strict p r budget requirements of mobile perience (over 20 years with more th
Slide 39: PentaG
PentaG™ A modular IP platform to address 5G use cases the redu >» PentaG™ redu 5G-NRd enormous complexity of designing ng entry barrier for new comers » PentaG™ all mponents » IPcormponents d smoothly integrated s OEMs toc th their ow ombine legacy t d with standard interfaces to be ® Allows flexibl
Slide 40: PentaG - From a DSP Core to a Full Modem Platform
PentaG™ - From a DSP Core to a Full Modem Platform a hentaGieM BB PentaG C-V2X Configuration Configuration SS CEVA Proprietary Information
Slide 41: Base Station
Base Station
Slide 42: Base Station Challenges
Base Station Challenges 42 ® Significant computational complexity » Massive MIMO 5G » Legacy ASIC platforms based on TI/FSCL and FPGA don’t meet co » Much wider Bandwidth available (mmWave) and efficiency » Higher throughput and reduced latencies » Much higher bitrates » Larger Bandwidth, Modulation
Slide 43: Base Station — the Path to Leadership
Base Station — the Path to Leadership > Strategic investment from 2012 to design state-of-the-art vector processor for the infrastructure market from LTE to SG-NR > CEVA established a tight collaboration with 3 of the 5 Tier 1 OEMs in order to specialize the IP to address most complex eNB architectu
Slide 44: CEVA's technology applies to all RAN architectures
» CEVAs ti archit » Macro nology applies to all RAN ures and trends small cell, RRH, ba haul, mmWave » CEVA techno XC323 and XC4 in mass-production with » CEVA-XC12, the most advanced DSP for next generation of 5G NR RAN base stations and edg mputing > JEMs adop 44 /A Proprietary Information CEVA
Slide 45: New Infrastructure Players
New Infrastructure Players > Heterogenous nature of the 5G deployment opens the market to new small cell and femtocell companies > These companies need DSP technology designed for infrastructure > New initiatives like the OpenRAN forum will disrupt the industry landscape > Enable an open ecosystem o
Slide 46: Cellular IoT
Cellular loT
Slide 47: Cellular IoT Deployment
Cellular loT Deployment NB-loT represents 80% of all di ay /A Proprietary Information
Slide 48: The Opportunity Across the Value Chain
The Opportunity Across the Value Chain » Margins and fragmentation drive Semis, module makers and mobile operators to look into owning custom chips that integrate: » NB-loT modem » AP and sensors » GNSS » TTM and lack of cellular expertise drive 43 these new comers to look into licensing modem techn
Slide 49: Go-to-Market Strategy
Go-to-Market Strategy Reduce entry barriers and time to market for newcomers witha complete and self-contained modem solution » Single core running full modem and lite-application » Full modem RF, Digital, SoC IP » Fully Integrated modem Holistic loT endpoint offer » Always-on voice cormmands Combin
Slide 50: CEVA-Dragonfly NB2
CEVA-Dragonfly NB2 ceval Dragonfly First World-Wide NB-loT IP Solution — 50 Fully integrated solution compliant with 83GPP Release 14 Integrated RF design implemented in &5nm and 40nm processes Intelligent ultra-low power management to achieve few microAmps Optimized multi-constellation GNSS package
Slide 51: CEVA-Dragonfly NB2 Block Diagram
CEVA-Dragonfly NB2 Block Diagram —_ceval Dragonfly Dragonfly NB2 SoC > NB-IoT loT CEVA-X1 Instructions NB-loT Modem Embedded GNSS Application Flash ae A unique IP Fr End . ee MES eae _ ee solution combining ientiorcn Cellular loT and GNSS ‘Control ‘ Digital GNSS on single Front End DSP z CEVA Prapie
Slide 52: Indisputable Leadership
Indisputable Leadership cEVAI Dragonfly CEVA is the only IP vendor ZTE Rosefinch7100 uses CEVA with the ability to deliver a ey complete cellular loT offering ~10 customers have licensed Dragonfly full drop-in solution 52 CEVA Proprietary Information CEVA
Slide 53: Key Takeaways
Key Takeaways 5g lution CEVA Proprietary Information The de-facto wireless IP leader across all the biggest market segments CEVA
Slide 54: Thank You
Thank You
Slide 55: Computer Vision, AI and Automotive
CEVA Computer Vision, Al and Automotive Ilan Yona Jeff VanWashenova www.ceva-dsp.com Copyright © 2019 CEVA, Inc.
Slide 56: Market Trends
Market Trends
Slide 57: Trend #1: Cameras Become Ubiquitous
Trend #1: Cameras Become Ubiquitous Object Detection SLAM ARR Object Tracking Scene Recognition Total Cameras (Billions) Grovah (2017-2022) Nye 7 Free Space Detection Facial Recognition ay me ma 2020 S022 44 billion cameras in the world by 2022* Source: LOV Capital CEVA Propristaryinformation CEVA
Slide 58: Trend #2: Intelligence Moving to the Edge
Trend #2: Intelligence Moving to the Edge Cloud Al Edge Devices Intelligence & Analytics Processing Key benefits of intelligence at the edge: | HighReli
Slide 59: Addressable Markets and Growth Trends
Addressable Markets and Growth Trends 2022 forecast for edge devices with computer vision / Al Consumer 375m units Surveillance 70m units Automotive Image sensors 300m units Smartphones 800m units Industrial 150m units
Slide 60: Smartphone — Enhanced Photography
Smartphone — Enhanced Photography » Al /Computer vision » Dual/Triple cameras ® Intelligent zoom Visionin hones > Selfies ® Low light performance » Face authentications and soon AR Units, millions 1,072 593 26 i i CEVA Proprietary Information
Slide 61: Surveillance/Security
Surveillance/Security » Government » Infrastructure, mages/second / 8 people on earth including airports, bridges, highways, » Municipal government Computer Vision Reven » Police, transportation n » Retail » Theft, consumer behaviour > Defense 1 Camera for every ue, Surveillance & Security a 2 Reven
Slide 62: Consumer
Consumer Dimes Computer Vision Revenue, Consumer Devices » Action dror follow me ie Smart home ” © » Personalization, safety & a urity 9 AR/VR 7 arab g° Photography a >» DSLR ‘ cameras 2017° «2018 «82019 2020 2021 2022 /s Proprietary Information CEVA
Slide 63: Industrial
Industrial Global robotic market Next revolution > Industry 4.0 >Smant factory infrastructure > Robotics > Manufacturing >Computer vision > Artificial Intelligence = 74 26.9 42.9 66.9 ° Computer Vision and Al will help drive next revolution ary Information CEVA CEVAPr
Slide 64: Automotive Growth Drivers
Automotive Growth Drivers More sensors, processing and intelligence Sensor Modules Market Value for Autonomous » Growth drivers 8 Cars from 2018-2030 » NCAP ani € € 30 Ultra Sound Sensors SR Radars ‘onl i 2018 2019 21 2022 2028 2024 2025 2026 2027 2028 2029 2030 (Source: Sensors & Data Management fo
Slide 65: CEVA Automotive Strategy
CEVA Automotive Strategy Focus outside and position/partner for in » Benefits of serisor first Registered Autonomous Passenger » Quick time to revenue Vehicles by SAE Level » More license opportunities 200 » Diverse opportunities 180) eee » Rear, surround, driver monitoring 160) "Level > Alatthe 5 4
Slide 66: Imaging Growth
Imaging Growth Seeing leads to action » Key growth application 20m » Back-up cameras 80m Taiz 40m in 2020 in 2020 em » Driver monitoring Murrey pocorn = Rear View Replacement InCabin in 2020 » Growth with >L2 Camera camera’ Driver . Forward » Distracted driving Camera » Forwardcameras » Pedestrian »
Slide 67: Automotive Artificial Intelligence Growth
Automotive Artificial Intelligence Growth Driven by the need for higher performance > Chal leng ing vis ion Artificial Intelligence based systems for automotive Environment » Weather 120 » Occlusion » Bright/Dark > Object i | j i Detection/identification ” » Path planning >a atl ERG 2015 2016 2017-2
Slide 68: Artificial Intelligence
Artificial Intelligence Artificial Intelligence takes ADAS to the next level Small efficient networks Improvement of specific areas Occlusion detection w targets erformance all efficient neural networks Driver monitoring systems Distracted driving curity Personalization (cctusiondetacion (SP + VO +L
Slide 69: A Strategy for Success
A Strategy for Success Focus on growth applications > Smart cameras > Combination of CV and Al > Not all functions are Al > CV is stable and predictable > Al complements CV > CEVA-XM and NeuPro are well positioned for growth markets > Example: NextChip —- APACHE4. 69
Slide 70: Autonomous Processing Landscape
Autonomous Processing Landscape Increasing Autonomous Driving Levels ‘Semi Contant Potent a » Traditional » OEMs - vam thers +900 » Volume autonomy market > L2-13 oo 3 2 Partial § » Need for efficient Ed | eoeson alternatives to large compute +8100 ay Driver platforms Assistance No Automation CEVA /
Slide 71: CEVA's Opportunity in Autonomous Driving
CEVA’s Opportunity in Autonomous Driving Broad engagement with OEMs, Tier-1, and disruptors of the market to understand and develop IP for L4/L5 Processing requirements continue to grow quickly Solutions today not designed for mass market applications CEVA is addressing the need for new architecture
Slide 72: The Strategy
The Strategy
Slide 73: Technology Trends Within Cameras
Technology Trends Within Cameras » Traditional camera optics (DSLR) has transformed to digital & Al » The role of cameras has extended beyond photography to machine vision » The fourunderlying technologies that drive advanced cameras are: CEVA Proprietary Information
Slide 74: Digital Imaging - HDR
Digital Imaging - HDR a7 CEVA Proprietary Information CEVA
Slide 75: Computer Vision — Pedestrian Detection
Computer Vision — Pedestrian Detection
Slide 76: 3D Scanning
3D Scanning 78 Image source: FuslaD CEVA
Slide 77: AI - Object Detection & Classification
Al - Object Detection & Classification
Slide 78: CV/AI - High Entry Barrier Space
CV/AI - High Entry Barrier Space > Technology competencies are scarce > Al/Machine learning space has a different domain expertise. Know how exists within the cloud, substantially less at the edge > The complexity and required performance is growing at 2X-4X in every year > A holistic view of softwa
Slide 79: The Four Pillars of CEVA's Holistic Strategy
The Four Pillars of CEVA’s Holistic Strategy Imaging & Vision SW formance /s Proprietary Information CEVA
Slide 80: Tightly Coupled HW and SW
Tightly Coupled HW and SW OEM LA Application Apple's 3D Al Neural Level Imaging ARKit Scanning application Networks t t ‘3 I t i t CEVA N Optimized sw | | ; ; CEVA Dedicated oO > HW CEVA- NeuPro 80 CEVA Prapristary Information CEVA
Slide 81: Slide 81
Slide 82: Slide 82
Slide 83: Slide 83
Slide 84: Slide 84
Slide 85: Slide 85
Slide 86: Slide 86
Slide 87: Slide 87
Slide 88: Slide 88
Slide 89: Slide 89
Slide 90: Slide 90
Slide 91: Slide 91
Slide 92: Slide 92
Slide 93: Slide 93
Slide 94: Slide 94
Slide 95: Slide 95
Slide 96: Slide 96
Slide 97: Slide 97
Slide 98: Slide 98
Slide 99: Slide 99
Slide 100: Slide 100
Slide 101: Slide 101
Slide 102: Slide 102
Slide 103: Slide 103
Slide 104: Slide 104
Slide 105: Slide 105
Slide 106: Slide 106
Slide 107: Slide 107
Slide 108: Slide 108
Slide 109: Slide 109
Slide 110: Slide 110
Slide 111: Slide 111
Slide 112: Slide 112
Slide 113: Slide 113
Slide 114: Slide 114
Slide 115: Slide 115
Slide 116: Slide 116
Slide 117: Slide 117
Slide 118: Slide 118
Slide 119: Slide 119
Slide 120: Slide 120
Slide 121: Slide 121
Slide 122: Slide 122
Slide 123: Slide 123
Slide 124: Slide 124
Slide 125: Slide 125
Slide 126: Slide 126
Slide 127: Slide 127
Slide 128: Slide 128
Slide 129: Slide 129
Slide 130: Slide 130
Slide 131: Slide 131
Slide 132: Slide 132
Slide 133: Slide 133
Slide 134: Slide 134
Slide 135: Slide 135
Slide 136: Slide 136
Slide 137: Slide 137
Slide 138: Slide 138
Slide 139: Slide 139
Slide 140: Slide 140
Slide 141: Slide 141
Slide 142: Slide 142
Slide 143: Slide 143
Slide 144: Slide 144
Slide 145: Slide 145
Slide 146: Slide 146
Slide 147: Slide 147
Slide 148: Slide 148
Slide 149: Slide 149
Slide 150: Slide 150
Slide 151: Slide 151
Slide 152: Slide 152
Slide 153: Slide 153
Slide 154: Slide 154
Slide 155: Slide 155
Slide 156: Slide 156
Slide 157: Slide 157
Slide 158: Slide 158
Slide 159: Slide 159
Slide 160: Slide 160
Slide 161: Slide 161
Slide 162: Slide 162
Slide 163: Slide 163
Slide 164: Slide 164
Slide 165: Slide 165
Slide 166: Slide 166