Aurora Innovation, Inc. · NASDAQ:AUR
Aurora Innovation — Investor Presentation (October 2024)
51 slides from Aurora Innovation's investor presentation, October 2024
Slide 1: Investor Presentation October 2024
Investor Presentation October 2024 © 2024 | Aurora Proprietary 1
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements This presentation contains certain forward-looking statements within the meaning of the federal securities laws. The words “believe,ˮ “may,ˮ “will,ˮ “estimate,ˮ “continue,ˮ “anticipate,ˮ “expect,ˮ “would,ˮ “project,ˮ “plan,ˮ “potentially,ˮ “i
Slide 3: Our mission
Our mission Deliver the benefits of self-driving technology safely, quickly, and broadly © 2024 | Aurora Proprietary 3
Slide 4: Aurora is in the pole position for autonomous trucking
Aurora is in the pole position for autonomous trucking Trucking is a massive Aurora Driver can Only player with strategic market unlock tremendous partnerships to enable value for customers commercialization at scale Competitive landscape Liquidity to support Driver as a Service DaaS has cleared s
Slide 5: Building the Aurora Driver around a common core
Weʼre building the Aurora Driver around a common core to power various vehicles in multiple use cases—trucking is our first focus © 2024 | Aurora Proprietary 5
Slide 6: Trucking is a massive market
Trucking is a massive market With attractive unit economics and significant $1 $4 need for this trillion trillion technology 1 U.S. Global2 © 2024 | Aurora Proprietary 1 A.T. Kearney State of Logistics, 2022 6 2 Armstrong & Associates, Global Third Party Logistics, 2019
Slide 7: Our strong, strategic relationships support our path to commercialization
Best in Class OEM Partners Industry-Leading Logistics Companies Autonomous Solutions Our strong, strategic relationships support our path to commercialization and scale in trucking, and springload us for our entry into personal mobility Industry-Leading Fleet Service and Pioneering Hardware as a Ser
Slide 8: Designing our trucking product to address the industry's primary pain points
We are designing our trucking product to address the industryʼs primary pain points Industry Pain Point The Aurora Driver Will Provide Driver shortage and high turnover >>> Scalable; stable driver supply 1,200,000 additional drivers needed over the next decade1, 90%+ annual turnover for large fleets
Slide 9: Safety Case Framework
Safety Case Framework Proficient We will know that the Aurora Driver is acceptably safe to Top level claim launch on the Dallas to Trustworthy Auroraʼs self-driving Fail-Safe Houston lane when we have a vehicles are acceptably closed Safety Case safe to operate on public roads Continuously Resilient
Slide 10: Autonomy Readiness Measure (ARM)
Autonomy Readiness Measure ARM (as of end of October) The Autonomy Readiness Measure ARM) illustrates the great progress we are making toward closing the Dallas to Houston Safety Case 97% © 2024 | Aurora Proprietary 10
Slide 11: Percentage of loads requiring no on-site support
100% API Loads Commercial Launch Est. We are focused on driving up the percentage of 80% 75% 75% commercial loads that do % of Loads 62% not require any form of 61% on-site support - 100% API 48% 32% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 April 25 © 2024 | Aurora Proprietary 11
Slide 12: Expected commercial launch in April 2025
With additional visibility on the time needed to complete remaining validation, we now expect to launch commercially in April 2025 We plan to introduce the Aurora Driver with a crawl, walk, run approach During launch, we expect to deploy up to 10 driverless trucks in commercial operations, starting
Slide 13: Expected launch capacity fully contracted
Our expected launch capacity is now fully contracted and we are in the final stages of contracting our remaining second half capacity to match our anticipated supply © 2024 | Aurora Proprietary 13
Slide 14: Autonomous trucks can be deployed under existing law and regulation
Under existing law and regulation, autonomous trucks can be deployed in the vast majority of U.S. states today, including our Texas launch market Deployment Testing Driverless operation Autonomous trucking permitted permitted prohibited currently prohibited Notes: * 24 states expressly allow and 15
Slide 15: Aurora Driver Indicative Roadmap to Scale
Aurora Driver Indicative Roadmap to Scale 2024 2025 2026 2027 Commercial Launch Path to Gross Profit Path to Scale & Self-Funding OWNERSHIP & DELIVERY MODEL Fleet Aurora Customer Predominantly Customer Ownership Delivery Terminal to Terminal First Customer Endpoints Unlocked Blended Endpoints and T
Slide 16: Path to expected gross profit in 2026
Our path to expected gross profit in 2026 is supported by: Revenue drivers Cost reduction levers Rapid lane penetration & expansion Realization of remote assistance efficiencies Increased asset utilization Reduction in on-site support Increased value creation Introduction of next-generation hardware
Slide 17: Rapidly scaling the Aurora Driver across the interstate system
Leveraging our R&D investments to-date, we expect to rapidly scale the Aurora Driver given the self-similarity of the U.S. interstate highway system Launch Lane We have already transferred the Aurora Driverʼs capabilities from the Dallas to Houston lane to the Fort Worth to El Paso lane, with plans
Slide 18: Unlocking longer lanes across the Sun Belt
Illustrative lane expansion through 2026 Unlocking longer lanes across the Sun Belt will increase utilization and be a key driver of our near-term top-line growth Launch Lane © 2024 | Aurora Proprietary 18
Slide 19: Unlocking customer endpoints after terminal to terminal launch
Following our terminal to terminal launch, we plan to unlock customer endpoints to augment our terminal footprint and increase customer value © 2024 | Aurora Proprietary 19
Slide 20: Estimated Cost Per Mile - Remote Assistance
Remote Assistance Specialist to AV trucks ratio will significantly improve over time, driving down cost per mile $1.00 Estimated Cost Per Mile - Remote Assistance As the Aurora Driverʼs performance continues $0.75 to improve, we expect to reduce remote $0.50 assistance costs $0.25 $0.00 20 40 60 80
Slide 21: Estimated Cost Per Mile - On-Site Support
Frequency of on-site support will decline over time, further reducing cost per mile $1.00 Estimated Cost Per Mile - On-Site Support We also expect this $0.75 performance improvement to reduce the need for $0.50 on-site support $0.25 $0.00 20,000 40,000 60,000 Miles Between On-Site Support © 2024 | A
Slide 22: Our hardware strategy is designed to support our scaling
# of Trucks 10,000 Our hardware strategy is designed Scalable to support our scaling 1,000 Hardware as a Service and cost reduction Generation objectives Next Generation 100 Commercially Ready Launch Generation Next generation kit Hardware as a Service designed for 1M miles, structure - Aurora pa
Slide 23: Estimated hardware cost per mile
Aurora Driver hardware cost efficiencies due to lower bill of materials BOM) costs, increased useful life, and improved reliability Reduction in material costs and Estimated Cost Per Mile increased reliability enables the achievement of our targeted 50%+ cost reduction goal for this next generation
Slide 24: Our path to scale and self-funding
Our path to scale & self-funding is supported by our: OEM partnerships with Continental Hardware as a Rapid lane expansion Volvo Trucks and PACCAR Service partnership © 2024 | Aurora Proprietary 24
Slide 25: Strategic partnerships with two of the top four class 8 truck OEMs
Our strategic partnerships Daimler 40% with two of the top four PACCAR 30% class 8 truck OEMs that collectively represent Volvo Group 17% 50% of the U.S. market Navistar 13% are key scaling enablers1 0% 5% 10% 15% 20% 25% 30% 35% 40% © 2024 | Aurora Proprietary 25 1 Statista Class 8 truck manufac
Slide 26: Long-term partnership with Continental
We entered a first-of-its-kind, long-term partnership with Continental to develop, manufacture, and service a commercially-scalable future generation of the Aurora Driver hardware kit We believe partnering with Continental will help us industrialize our hardware kit at scale and support our long-ter
Slide 27: 50B VMT serviceable addressable market by 2028
We expect the Aurora Driver to operate in a 50B VMT serviceable addressable market SAM) by the start of 2028 Illustrative lane expansion through given commercial, technical, and regulatory considerations1 Length of Haul Breakdown2 300 miles 17% 1,000 miles 42% 50B 300600 miles VMT3 22% 6001,00
Slide 28: The Complete Aurora Driver Freight Ecosystem
The Complete Aurora Driver Freight Ecosystem 1 2 3 4 5 Continental manufactures Ships hardware to OEM installs Ships to Customer utilizes the Aurora Driver hardware OEM hardware lineside partners Aurora Driver © 2024 | Aurora Proprietary 28
Slide 29: Driver as a Service business model is highly capital efficient
Aurora provides its technology to an external fleet Description owner and/or operator Our Driver as a Service DaaS) business model is Revenue Fee per mile highly capital efficient Variable: Aurora Driver hardware cost2, remote and aligns with our Costs borne by Aurora1 assistance, on-site support,
Slide 30: Total cost of ownership benefits
✓ More efficient and less variable driver costs We expect the Aurora Driver to provide ✓ Increased revenue per truck with potential to more than double asset utilization meaningful total cost of ownership TCO) benefits ✓ Better fuel economy ✓ Reduced insurance costs © 2024 | Aurora Proprietary 30
Slide 31: Product and pricing strategy versus existing alternatives
Current Trucking Cost Per Mile1 Other3 $0.04 Our product and pricing Repair2 Aurora DaaS strategy are designed to $0.25 Opportunity drive a compelling value Insurance $0.10 proposition versus Human Driver Incl. Benefits Truck/Trailer $2.27 $0.97 existing alternatives $0.36 Fuel $0.55 1 American Tr
Slide 32: Indicative DaaS pricing range
Trucking labor costs continue to rise Cost Per Mile: Driver Wages & Benefits1 Indicative DaaS pricing $1.00 range provides customer $0.90 TCO benefit while supporting “SaaSˮ like $0.80 Indicative DaaS gross margins $0.70 Price Range2 $0.60 $0.50 2013 2023 © 2024 | Aurora Proprietary 1 American Tra
Slide 33: Customer cost savings under DaaS pricing
Under DaaS pricing, Aurora customers have an opportunity to achieve lower costs, with a more predictable and stable supply, versus todayʼs alternatives In comparison to todayʼs driver costs In addition to driver costs $0.97, there are plus reducing other indirect costs, potential indirect cost red
Slide 34: Our industry-defining technology
Our industry-defining technology © 2024 | Aurora Proprietary 34
Slide 35: Innovating throughout the self-driving stack
GPS IMU Encoders Lidar Camera Radar Hardware Perception We are innovating Localization throughout the self-driving stack Planning Simulation Maps Control Drive-by-wire © 2024 | Aurora Proprietary 35
Slide 36: Verifiable AI
Verifiable AI Our approach to building a driver that is both human-like in its behavior and structured to follow the rules of the road to deliver a practical, transparent, and commercially scalable solution to market AI is essential to the success of a self-driving system - it solves problems that
Slide 37: Verifiable AI observations and examples
We leverage AI to AI Example: Leveraging AI to Invariant Example: Encoding a navigate complex and safely and naturally change rule of the road guardrail lanes on the highway dynamic scenarios but do not have to rely AI excels at finding the optimal Applying a guardrail to always come to a position i
Slide 38: Sensor suite with FirstLight Lidar
Our sensor suite combines multiple sensing modalities with our powerful FirstLight Lidar Lidar Camera Radar All modalities FirstLight is our custom Our cameras are made of Our custom imaging radar Different sensor modalities frequency-modulated automotive-grade sensor sensors produce precise 3D have
Slide 39: FirstLight Lidar engineered for highway driving
400m Our FirstLight Lidar is engineered for the needs of highway driving 300m The ability to see at distance with both Lidar & Camera—is crucial to unlocking safe autonomous operation at high speed. FirstLight FMCW Lidar enables quicker reaction and longer range for 200m safer, more capable driving.
Slide 40: Developing long-range lidar in-house
Developing long-range lidar in-house has many advantages There are significant challenges relying on Step 4 Step 1 externally-developed lidar Digest data, revise Fundamental assumptions, iterate technology ● Lack of clarity in vision and requirements ● Risk of being left out via exclusivity ● Tier 1
Slide 41: Virtual Testing Suite
Our Virtual Testing Suite creates a paradigm shift in testing safety, efficiency, and speed Auroraʼs Virtual Testing Suite (which includes simulation and data replay technologies) improves: ● Safety: Dramatically reduces the number of on-road miles needed to develop the Aurora Driver ● Efficiency: A
Slide 42: The Aurora Atlas HD mapping
The Aurora Atlas is HD mapping with exceptional maintainability Made up of layers of data: ● Provides accuracy where itʼs needed most: Road features such as near the vehicle stop signs, traffic lights, and other signs ● Unlocks rapid (near-real-time) updates ● Enables efficient maintenance to map da
Slide 43: Innovations support our path to Commercial Launch
We expect Aurora's innovations to support our path to Commercial Launch We believe we have one of the strongest self-driving intellectual property positions ● 1,750 awarded and pending patents worldwide1 ○ Continued strong pace of innovation with more than 200 patents awarded YTD ● Covering hardwar
Slide 44: Aurora is in the pole position for autonomous trucking
Aurora is in the pole position for autonomous trucking Trucking is a massive Aurora Driver can Only player with strategic market unlock tremendous partnerships to enable value for customers commercialization at scale Competitive landscape Liquidity to support Driver as a Service DaaS has cleared s
Slide 45: Appendix
Appendix © 2024 | Aurora Proprietary 45
Slide 46: We raised $483 million in gross proceeds from a public offering
We raised $483 million in gross proceeds from a public offering of our Class A common stock to strengthen our financial position, with liquidity expected to support our Commercial Launch and fund our operations well into 2026 Net proceeds totaled $466 million We expect this incremental capital to fu
Slide 47: Historical Financial Summary
Historical Financial Summary (unaudited) Quarter Ended Year Ended $ in millions except per share data) September 30, 2024 December 31, 2023 Operating expenses: Research and development $169 $716 Selling, general and administrative 27 119 Loss from operations 196 835 Other income (expense): Chan
Slide 48: Non-GAAP Financial Information; Selected Balance Sheet Data
Non-GAAP Financial Information (unaudited) The following table reconciles our as reported U.S. GAAP net loss to Non-GAAP adjusted EBITDA Quarter Ended Year Ended $ in millions) September 30, 2024 December 31, 2023 Net Loss $208 $796 Depreciation and amortization 4 21 Stock-based compensation 3
Slide 49: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information Our Non-GAAP Adjusted EBITDA excludes certain items we believe are not representative of continuing operations due to their non-recurring or non-cash nature. We believe Non-GAAP Adjusted EBITDA provides greater transparency to key metrics used by management in i
Slide 50: Additional detail on on-road autonomy performance indicator
Additional detail regarding our on-road autonomy performance indicator We believe the key to developing autonomous technology for safe, commercial operation is through robust development, testing, and validation through both simulation and on-road driving. As we have said previously, we believe ther
Slide 51: © 2024 | Aurora Proprietary
© 2024 | Aurora Proprietary 51
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