Aeye, Inc. · NASDAQ:LIDR
Aeye — SPAC Merger (February 2021)
47 slides from Aeye's SPAC merger presentation, Feb 17, 2021
Slide 1: Slide 1
Slide 2: Disclaimer
Disclaimer General This presentation does not constitute an offer or invitation for the sale or purchase of securities and has been prepared solely for informational purposes. The information contained in this presentation (this “Presentation”) has been prepared to assist interested parties in makin
Slide 3: Disclaimer
Disclaimer Financial Information The financial and operating forecasts and projections contained herein represent certain estimates of AEye as of the date thereof. AEye’s independent public accountants have not examined, reviewed or compiled the forecasts or projections and, accordingly, does not ex
Slide 4: Transaction Summary
Transaction Summary PIPE to facilitate CF Finance Acquisition Corp. Ill (“CFAC III”) business combination with AEye at a pre-merger valuation of $1.9 billion Transaction Highlights * $230 million cash in trust from CF Finance Acquisition Corp III (Nasdaq: CFAC)() 1 _— ransaction Size * $225 million
Slide 5: Overview of Sponsor
Overview of Sponsor Howard Lutnick Chairman and Chief Executive Officer Cantor Fitzgerald + Joined Cantor Fitzgerald in 1983 and was appointed President and CEO in 1991. Named Chairman in 1996 + Chairman and CEO of BGC Partners, Inc. (NASDAQ: BGCP), Executive Chairman of Newmark Group, Inc. (NASDAQ:
Slide 6: Experienced Senior Leadership Team
Experienced Senior Leadership Team Blair LaCorte Luis Dussan Bob Brown Dr. Allan Steinhardt Jordan Greene CEO Founder & CTO CFO Chief Scientist Founder & VP of Corp. Dev. 35+ years public and 25+ years electro-optics 30+ years public and 35+ years electro-optics 10+ years technology private general
Slide 7: Backed by Leading Strategic Investors
Backed by Leading Strategic Investors Partners OEMs Technology ri mane a Q@ntinentals. BVENTUZES intel (P KLEINER PERKINS . Late Bows —— capital Aiea SUBARU SBI TYCHE @ Le Electronics We PARTNERS WN SK hynix AISIN Zz AIRBUSVENTURES
Slide 8: Differentiated Technology and Approach
Differentiated Technology and Approach Founded in 2013 to create Al-driven sensing systems that perform better than the human eye and visual cortex — focusing on information that matters Key Principles of Differentiated Approach = Modular architecture leveraging mature components = Edge processing e
Slide 9: Delivering Groundbreaking Capabilities and Performance
Delivering Groundbreaking Capabilities and Performance AEye’s patented sensor platform delivers real-time integration of high-performance LiDAR and HD cameras — exceeding industry requirements for performance, reliability and cost
Slide 10: Recipient of Prestigious Industry Awards
Recipient of Prestigious Industry Awards _/AutoSens Award: Aut atfor 9 auTomositity(G) ‘TOP TEN AUTOMOTIVE STARTUPS / WINNER AutoSens Awards Most Exciting Start-Up < 2018 connected car news STEVIE = 20 MOST PROMISING aS TECH.AD 5 AUTOMOTIVE WINNER alin : TECHNOLOGY ff g-® Review SOLUTION PR 8
Slide 11: Investment Highlights
Investment Highlights Massive Market Opportunity = Broad adoption of LIDAR for automotive, industrial, and mobility applications = $42+ billion TAM opportunity by 2030) Select ateae Differentiated Technology somone = Single modular hardware platform to address all markets arnners = Proprietary softw
Slide 12: Massive Market Opportunity
Massive Market Opportunity A LALLY ES... Think lke a robot, perceive like a human 12
Slide 13: AEye LIDAR Will Drive Adoption Using Edge Intelligence
AEye LIDAR Will Drive Adoption Using Edge Intelligence Like a military targeting system, AEye’s intelligent sensor identifies and focuses on relevant objects Intelligent Detection and Ranging 1. Search Everywhere 2. Revisit Critical Objects 3. Acquire and Classify 4. Track What Matters A LXLLY E._Th
Slide 14: LIDAR Will Be Everywhere
LIDAR Will Be Everywhere Large ADAS commitments expected in the next 18 months will drive down component costs and establish the foundation for AEye’s growth across other markets 48 Autonomous up.to 10 sensors/per vehicle Think like a robot, perceive like a human. 14
Slide 15: AEye's Groundbreaking System Addresses Multiple Markets
AEye’s Groundbreaking System Addresses Multiple Markets Delivery Bot A LXLLYV E.._ Think tke a robot, perceive like a human. 15
Slide 16: Differentiated Technology
Differentiated Technology A LALLY E.. Think ike a robot, perceive like a human. 16
Slide 17: AEye System Design is Modular and Adaptive
AEye System Design is Modular and Adaptive Proprietary system architecture enables high performance Modular Hardware Design AEye Software on a Chip AEye Design Partner Algorithms AEye Design Laser Agile Agile Scanner —— _ Software Configuration @) Standalone Software Modules Triggers/ Perception Aye
Slide 18: AEye's Platform — Elegant Design Employing Embedded AI
AEye’s Platform — Elegant Design Employing Embedded Al Core building blocks enable real-time intelligence processed at the edge Fiber Laser — Amplifiable Energy + 1550nm eye safe laser * Optimal photon budget (100x 900nm lasers) + Automotive-grade operating temperature Advanced Receiver — Strong Sig
Slide 19: Detection of Small Hazardous Objects
Detection of Small Hazardous Objects
Slide 20: Ensuring Pedestrian Safety
Ensuring Pedestrian Safety
Slide 21: Solving the Most Difficult Industry Challenges
Solving the Most Difficult Industry Challenges Intelligent sensing allows AEye to see better in the highest risk situations 7) Long Range } a v High Resolution al = = — 7) Low Latency j ‘Distance Pedestrian == Trafte™ Grossing | @® Software Configurable | v Optimized Data Acquisition] @ Flexible Pla
Slide 22: AEye Rainstorm
AEye Rainstorm Filmed during a rainstorm in Dublin, CA on January 26, 2021.
Slide 23: The Value of Intelligent Sensors
The Value of Intelligent Sensors “ADAS and ‘Autonomous. Vehicles iKe] ~ detect and classify every object i ina scene. A LX LYE. Think tke a robot, perceive like a human, 23
Slide 24: Configurability Enables Flexible Placement Options
Configurability Enables Flexible Placement Options AEye’s product can be placed in various locations with minimal impact to performance Q@ntinental. — (ELLA @ Le Electronics AISIN >
Slide 25: AEye Platform Delivers Superior Detection & Acquisition
AEye Platform Delivers Superior Detection & Acquisition Bacre Company A Company B Company C Company D 1. Core Platform Laser Wavelength 1550nm 1550nm 905nm 905nm 880nm Software Configurable v v x v « Artificial Intelligence on the Edge v Ed Ed ed x Automotive Grade v v x v x 2. LiDAR Specifications
Slide 26: Partnering with the Automotive Industry to Drive Mass Adoption of LiDAR
Partnering with the Automotive Industry to Drive Mass Adoption of LiDAR A LX©LL YS Think tke a robot, perceive like a human, -
Slide 27: AEye's Automotive Tier Partnerships
AEye’s Automotive Tier 1 Partnerships Selected after extensive evaluation process 2019 Revenue Proof of Concept Investor Industrialization Channel G@ntinental. — «44on G G G G (Guy) én G C) G G AISIN _ s360n G G G @LG Electronics — $53bn G w - G AEye partners sell to all major OEMs
Slide 28: AEye Selected as Continental's Long-Range LIDAR Partner
AEye Selected as Continental’s Long-Range LIDAR Partner ti t iS Selected by Continental to meet premium OEM requirements on Inen a a Automotive product line targeted launch in 2024 Planning manufacturing line ADAS supplier to 25 OEMs, Applied engineering, operations and sales resources 50 brands, 30
Slide 29: Scalable Business Model and Customer Validation
Scalable Business Model and Customer Validation A LALLY ES... Think ike a robot, perceive like a human 29
Slide 30: Unique Business Model Leveraging a Common Product Platform
Unique Business Model Leveraging a Common Product Platform Tier 1 Partners OEMs Automotive A AEYE (ADAS) G@ntinentals: GA @ic Electronics AISIN Auto Grade Tier 2 Suppliers t 1 I Cee) Cece 1 1 i i I i i iT iT I I
Slide 31: Unique Business Model Leveraging a Common Product Platform
Unique Business Model Leveraging a Common Product Platform Channel Model for Automotive and Direct Sales for Industrial and Mobility Tier 1 Partners Gntinentals: GA @ic Electronics ASIN v Single Product Platform v Single Supply Chain v Achievable BOM Cost <$100
Slide 32: Penetrating Automotive, Mobility and Industrial Markets
Penetrating Automotive, Mobility and Industrial Markets 70+ commercial partners across multiple markets) 16+ major opportunities expected in automotive (ADAS) over the next two years — Partners — —— Automotive (ADAS) ——- —————— Mobility —-—————- —————— Industrial G@ntinentals GM | Vy) CrUIS@ TRIAD |
Slide 33: Financial Overview
Financial Overview
Slide 34: Large and Rapidly Growing Projected Market Opportunity
Large and Rapidly Growing Projected Market Opportunity - 25-30 . LiDAR TAM —_— — Illustrative Use Cases $42b CAGR . ba n Automotive (ADAS) ADAS opportunities over the next 3 years are expected 43% r——~ to drive revenue ne ommere’ over the next & Passenger Commercial 8-10 years Industrial 1% a a & Ra
Slide 35: ADAS Program Lifecycle and Market Opportunity
ADAS Program Lifecycle and Market Opportunity Multi-Year Investment Cycle for AEye Tier 1 Partners’ ADAS Series Production Deals Design Win Pipeline? $8.7bn $0.5bn Current CY 2026E + Development and testing takes >2 years after contract win « Atleast 16 opportunities expected to be bid by Tier 1s in
Slide 36: Projecting High-Growth Revenue Opportunity
Projecting High-Growth Revenue Opportunity Commentary Revenue ($ in millions) « Series production wins generate ADAS $617 licensing revenue starting in 2024 » ADAS revenue driven by licensing/royalties from our Tier 1 partners = Near-term growth primarily from Industrial sole and Mobility markets x
Slide 37: Attractive Projected Profitability & Cash Flow Growth
Attractive Projected Profitability & Cash Flow Growth Commentary ———_. ——- Grrosss Profit ($ in millions) « Industry-leading gross margins and mm Gross Profit 81% 83% 84% EBITDA margins + Gross Margin $521 = Substantial BOM cost reduction $251 expected over the next 5 years as $142 | | volume ramps
Slide 38: Robust Financial Profile
Robust Financial Profile Summary Financials % of Revenue 80% 52% 30% ($ in millions) ' palaiaiahahaaiaiatataisiansiaihaaiaiaiaiaiaiabaaiaimiaiaianaiaianals' 2021E 2022E 2023E 1 2024E 2025E 2026E Revenue $4 $13 $35 | = $175 $303 $617 %YoY Growth 156% 213% 180% | 395% 73% 103% Gross Profit $1 $4 $18 $
Slide 39: Tracking the Motion of the Ball
Tracking the Motion of the Ball A LLY E&. Think tke a robot, perceive like a human. 39
Slide 40: Attractive Entry Point
Attractive Entry Point LiDAR companies have performed strongly after SPAC transactions ($ in billions) ‘ Li i IDR Model Autotech = At Announcement = Current $12.8 $10.8 SPAC Transaction Pending Pre-transaction _Post-transaction $6.0 Enterprise Value Enterprise Value $4.2 $1.9 $2.0 ee $1.6 | $1.8 [|
Slide 41: Favorable Growth and Margin Profile
Favorable Growth and Margin Profile AEye expects to achieve a superior margin profile Revenue CAGR Gross Margin EBITDA Margin ‘Source: Public filings, Wall Street research. a Licensing LIDAR ” Model Autotech 088 103% ~~ ~Average: 149% 7 | | ~ = 52% 14% INNQ@VIZ = S77 0 Bacye /\ oben LUMINAR — Velody
Slide 42: Illustrative Valuation Shows AEye at a Discount to Peers
Illustrative Valuation Shows AEye at a Discount to Peers Licensing LIDAR Model Autotech EV: $2.0 billion” 45.8x 36.5x 40.0x 42.2x —— SPAC Transaction Pending —— Current EV / 10.5x . 8.0x ax EBITDA mz [| — >= 0 LUMINAR — Velodyne /\ INN@VIZ OS ST cxrerce 2025E (2024E 2025E 2025E 2025E 2017E 2021E (3)
Slide 43: Illustrative AEye Transaction Value Bridge
Illustrative AEye Transaction Value Bridge Current valuation provides opportunistic entry point Tenenelien We Comparable Valuation Sensitivity Analysis $7.6 billion $6.1 billion _.-$5.4 billion midpoint_______NN 76576 alscount $4.7 billion valuation $3.6 billion $2.0 billion Enterprise Value Discoun
Slide 44: Transaction Summary — Pro Forma Equity Ownership
Transaction Summary — Pro Forma Equity Ownership ( in millions, unless otherwise stated) Sources & Uses ————————-_ ————_ Pro Forma Valuation Sources ——————— _——————— Uses SPAC Cash in Trust $230 AEye Rollover Equity $1,900 Pro Forma Shares Outstanding 241.8 PPE Capit $225 Deal Expenses soo EguiyVawe
Slide 45: Appendix
Appendix
Slide 46: Deep Bench of Experienced Management Talent
Deep Bench of Experienced Management Talent John Stockton Nate Ramanathan Abhijit Thatte Steve Lambright Andrew Nelson SVP of R&D SVP of Operations SVP of Software CMO VP of Sales 43+ years semiconductor 25+ years automotive 25+ years software and 25+ years marketing 15+ years sales and venture expe
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