Valens Semiconductor Ltd. · NYSE:VLN
Valens Semiconductor — Q3 2023 Earnings Presentation
23 slides from Valens Semiconductor's earnings presentation, Nov 8, 2023
Slide 1: Valens Semiconductor
Valens Semiconductor (NYSE: VLN) November 2023
Slide 2: Pushing the Boundaries of Connectivity. Everywhere.
Pushing the Boundaries of Connectivity. Everywhere. Leading Provider of Semiconductor Products in the Large and Growing Automotive and Audio-Video Markets Enabling Resilient, Ultra High-speed Wired Connectivity Over Simple, Low-Cost Infrastructure 2
Slide 3: Disclaimer
Disclaimer Forward-Looking Statements Certain statements in this presentation (this "Presentation") are “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified
Slide 4: Valens Semiconductor At a Glance
Valens Semiconductor At a Glance Leveraging our Long-Reach Connectivity Solutions Across Markets Multi-Billion Audio-Video Automotive Addressable Markets Superior Connectivity, Critical Technology for Deployed Across Multiple ADAS 1 and Autonomous Verticals Driving Cars Fortress Balance Q4 2023 Adju
Slide 5: Leveraging Disruptive Connectivity Offerings Across Both Business Segments
Leveraging Disruptive Connectivity Offerings Across Both Business Segments Audio-Video Automotive The incumbent solution for high-speed long reach audio-video connectivity. Unique technology – the only high-speed connectivity solution supporting multi-gigabit The de-facto industry standard, supporte
Slide 6: Powering Millions of Audio-Video Products Globally
Powering Millions of Audio-Video Products Globally Samsung’s “The Wall” Logitech Rally PLUS Samsung “Terrace” Digital Signage Ultra-HD System Outdoor TV Dräger Evita® V800 Crestron FLEX Video Siemens Healthineers Epson BrightLink Interactive Ventilator Conferencing 3D Imaging Mobile C-Arm Ultra Shor
Slide 7: Growing Diversity and Business Opportunities in Audio-Video Connectivity
Growing Diversity and Business Opportunities in Audio-Video Connectivity Video Conferencing in Command and Control Corporations and Education Industrial Medical Imaging Signage Providing seamless videoconferencing Industry 4.0 increasingly relies on Integrated in diagnostic equipment, Commercial adv
Slide 8: Florida Modernizes Classrooms with Valens Semiconductor Audio-Video Connectivity Products
Florida Modernizes Classrooms with "Florida's largest public school district's schools and teachers can now provide learning experience to a much broader audience. Logitech's Valens Semiconductor Audio-Video superb camera technology, coupled with Valens Semiconductor's extension solution are empower
Slide 9: Constantly Evolving Audio-Video Market Presents New Opportunities
Constantly Evolving Audio-Video Legrand | AV’s global brands work together to leverage emerging technologies like the new VS6320 platform for long-reach USB 3.0 Market Presents New Opportunities solutions. “We’re excited to have the opportunity to add value to this platform for the Audio-Video and I
Slide 10: Automotive Connectivity Market – Key Drivers
Automotive Connectivity Market – Key Drivers Valens Semiconductor Will Play an Essential Role in Reliable ADAS & Autonomous Driving Today’s Car Architecture has Been Pushed to its Limits • Space, weight and complexity • Driving a growing need for increased bandwidth, zero latency, and long- reach co
Slide 11: Valens Provides a Future Proof Connectivity Technology, and is Well-Positioned with a Holistic Offering
Valens Provides a Future Proof Connectivity Technology, and is Well-Positioned with a Holistic Offering The Only High-speed Connectivity Solution Supporting Multi-gigabit Connectivity Over Unshielded Harness Infotainment & Telematic Units (2Gbps VA6xxx chipset family) Symmetric Data Connectivity (EC
Slide 12: Valens' First Generation VA6000 Validated By Automotive Leaders
“One of Daimler’s strategic focuses is to be a technological Valens’ First Generation VA6000 leader in ‘green’ technologies, safety, autonomous driving Validated By Automotive Leaders and connectivity. Valens Automotive is a perfect fit as its architectural benefits, reliability and robustness lead
Slide 13: Valens' First Generation VA6000 Validated By Automotive Leaders
Valens’ First Generation VA6000 Validated By Automotive Leaders Valens Partnered with Stoneridge, a Leading Truck Technology Manufacturer, to Solving a Critical Safety Hazard for Drivers and Fleets Solve a Tractor Trailer Connectivity Challenge Reducing Fleet Operating Costs Tackle Visibility Limita
Slide 14: Valens Semiconductor VA7000 Chipsets Gaining Traction
Valens Semiconductor VA7000 Chipsets Gaining Traction Participating in Bids, Moving Towards Adoption by Automotive OEMs Progressing Towards Mass Industry Standard-Setter Valens VA7000 Strong Ecosystem Momentum Production Defining A-PHY Connectivity Industry-First Expanding Adoption Design Wins First
Slide 15: Valens' Addressable Market Will be Further Fueled by the Growing Adoption of ADAS and Autonomous Driving
Valens’ Addressable Market Will be Further Fueled by the Growing Adoption of ADAS and Autonomous Driving High-Speed Video Connectivity Today Future ADAS1 Automotive TAM (2025-2026) Level 2/2+ Level 3 Level 4 Level 5 ~ 100 million cars2 are expected to be manufactured per year Eyes Off Mind Off Feet
Slide 16: Maximizing Environmental, Social and Governance (ESG) Opportunities and Managing ESG Risks
Maximizing Environmental, “Our high-performance connectivity solutions are designed to propel socially and environmentally responsible growth. Social and Governance We believe that operating with the utmost ethical standards (ESG) Opportunities and and practices is key to ensuring our continued succ
Slide 17: UN Sustainable Development Goals (SDGS)
UN Sustainable Development Goals (SDGS) Valens Semiconductor’s Core Business and ESG Strategies are Applicable to the Below SDGs: GOOD HEALTH AND WELL- INDUSTRY, INNOVATION & CLIMATE ACTION BEING INFRASTRUCTURE • Help reduce the emissions and overall • Key enabler of lifesaving ADAS • Contribute to
Slide 18: Third Quarter Financial Highlights; Fortress Balance Sheet
Third Quarter Financial Highlights; Fortress Balance Sheet Third Quarter 2023 vs. Third Quarter 2022 › Revenue: $14.2 million › Revenue: $23.1 million › Gross margin: 58.9% (non-GAAP1: 61.1%) › Gross margin: 69.7% (non-GAAP1: 70.5%) › Adjusted EBITDA2: $(8.8) million › Adjusted EBITDA2: $(1.7) milli
Slide 19: Focused on Delivering Value to Our Stakeholders
Focused on Delivering Value to Our Stakeholders Fourth Quarter 2023 Guidance1 Full Year 2023 Guidance1 › Revenue: $21.6-$22.0 million › Revenue: $83.8-$84.2 million › Gross margin: 61.6%-62.7% › Gross margin: 62.5%-62.8% › Adjusted EBITDA1,2: $0.0-$0.6 million › Adjusted EBITDA2: $(12.5)-$(11.9) mil
Slide 20: Valens Semiconductor - Track Record of Market Leadership
Valens Semiconductor - Track Record of Market Leadership Large addressable markets - Automotive and Audio-Video Disruptive connectivity technology across our targeted markets Industry standard setter – at the forefront of the industry Financial model supported by a solid balance sheet 20
Slide 21: Thank you
Thank you investors@valens.com www.valens.com
Slide 22: Appendix
\Wratens Appendix
Slide 23: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation of Net Loss to Adjusted EBITDA Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net Loss (12,492) (5,305) (22,451) (20,350) Adjusted to exclude the following: Change in fair value of (89) 370 (1,618) (3,772) Forfeiture Shares Financial expense (368)