Slide 1: Valens Semiconductor
Valens Semiconductor (NYSE: VLN) March 2022
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements Certain statements in this presentation (this "Presentation") are forward-looking statements. “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking s
Slide 3: 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 Connectivity Over Simple, Low-Cost Infrastructure 3
Slide 4: Valens at a Glance
Valens at a Glance Significant Standard-Setting Automotive Audio-Video first mover < and First-mover Critical Technology for ADAS Superior Connectivity, Benefiting From the advantage Adopted by Industry Leaders and Autonomous Cars New Hybrid Normal Impressive growth track record in the >$500M 30M >1
Slide 5: Investment Highlights
Investment Highlights Large, fast-growing addressable markets Automotive › One-stop-shop offering for high-speed connectivity solutions › Rising number of sensors for ADAS1 requires smart high-speed connectivity › Automotive SAM expected CAGR of 35%, reaching $8B by 2026 Audio-Video › Demand for vid
Slide 6: Go-to Market Strategy: Gain First-Mover Advantage, Set the Standard
Go-to Market Strategy: Gain First-Mover Advantage, Set the Standard in Every Industry we Operate Invented Disruptive Connectivity Technology in Fast Growing Markets Audio-Video Automotive A-PHY 1 Inventor of HDBaseT technology – an audio-video industry standard 1 Valens’ technology selected as the b
Slide 7: Empowering Millions of Audio-Video Products Globally
Empowering 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 Sh
Slide 8: New Business Opportunities in Audio-Video Connectivity
New Business Opportunities in Audio-Video Connectivity The New Hybrid Normal – Set to Conquer New and a Trend that is Here to Stay Untapped Segments • Video Conferencing – in Corporates • Industrial and Education Significant growth as Industry 4.0 increasingly relies on camera sensors and computer v
Slide 9: Successfully Addressing Key Pain Points of the Automotive Industry
Successfully Addressing Key Pain Points of the Automotive Industry, Offering a Unique and Holistic Offering Industry Pain The Valens Value Points Proposition Insufficient bandwidth to support growing data The most resilient, industry-leading processing requirements bandwidth with zero latency Safety
Slide 10: Providing a One-Stop-Shop for All In-Vehicle High-Speed Connectivity Links
Providing a One-Stop-Shop for All in- Vehicle High-Speed Connectivity Links › Valens provides multiple connectivity solutions that can, and should co-exist in cars › Well-positioned with a holistic symmetric and a-symmetric offering › Symmetric - Superior solutions › A-Symmetric - Fastest-growing se
Slide 11: Validated By Automotive Leaders
“One of Daimler’s strategic focuses is to be a technological Validated By leader in ‘green’ technologies, safety, autonomous driving Automotive Leaders and connectivity. Valens Automotive is a perfect fit as its architectural benefits, reliability and robustness lead to a superior driving experience
Slide 12: Validated By Automotive Leaders
Validated By Automotive Leaders Valens Partnered with Stoneridge, a Leading Truck Technology Manufacturer to Solving a Critical Safety Hazard and Solve a Tractor Trailer Connectivity Challenge Reducing Fleet Operating Costs Tackle Visibility Limitations • Provide video connectivity between truck’s t
Slide 13: Setting Standards, Enjoying First-mover Advantage in Automotive
Setting Standards, Enjoying First-mover Advantage in Automotive First-mover Advantage VA7000 Standard-Setter – A-PHY Connectivity • Shipped VA7000 samples First-in-Industry to Ship to more than 25 A-PHY Compliant Chipsets prospective customers to Leading Automotive and partners OEMs and Tier-1s • 4
Slide 14: Valens is Leading the Growing MIPI A-PHY Ecosystem
Valens is Leading the Growing “We at Mobileye are working closely with Valens to make sure our next-generation platforms will comply with the MIPI A-PHY MIPI A-PHY Ecosystem architecture.“ Amnon Shashua, Founder & CEO “We’re happy to be early adopters of this automotive connectivity standard. Valens
Slide 15: Automotive Connectivity Market - Key Drivers
Automotive Connectivity Market - Key Drivers 1 2 3 High-speed data Simplified car ADAS & autonomous processing architecture driving 15
Slide 16: Transforming Vehicles into Data Centers on Wheels
1 Transforming Vehicles into Data Centers on Wheels High-speed data processing 1990s Present Future Data Center on Wheels Sensor: 1-3 sensors, Sensor: ~10 sensors, 3-5 cameras, Sensor: >20 – cameras, radars, lidars, 0-1 displays, 2G 1-5 displays, 4G/LTE >8 displays, 5G/connected cars Speed: 25Mbps S
Slide 17: Car Architecture has Been Pushed to its Limits
2 Car Architecture has Been Pushed to its Limits – Space, Weight, and Complexity Simplified car The Challenge The Valens Solution architecture >2x Bandwidth Fewer Cables/ Lower Weight Lower Cost Less Complexity Valens Simplifies Less Power In-Vehicle Architecture Consumption Increased Resilience Emb
Slide 18: Valens is a Key Enabler for ADAS & Autonomous Driving
3 Valens is a Key Enabler for ADAS & Autonomous Driving Prerequisites for ADAS connectivity ADAS & autonomous High Speed Zero Latency Long Reach driving No matter the sensor type, Valens will provide the underlying connectivity solution Lane Departure Warning Lane Keep Assistance Speed Limited Auton
Slide 19: Valens' Current Addressable Market Will be Further Fueled by ADAS Adoption
Valens’ Current Addressable Market Will be Further Fueled by the Growing Adoption of ADAS and Autonomous Driving Valens High Speed Connectivity Automotive SAM(1) ($B) 2026 Number of Sensors Today Future Level 2 Level 3 Level 4 Level 5 2021 $0.9 Feet Off Hands Off Eyes Off Mind Off $0.6 $0.6 Camera 2
Slide 20: 2021 Achievements
2021 Achievements Record Revenues in Shipped first-in-industry Initial revenues from September 2021 – both business segments MIPI A-PHY automotive Stello, our newest Audio- became a public chipsets to potential Video product family. company Met all customer customers and leading Already embedded in
Slide 21: Fourth Quarter and Full Year 2021 Financial Highlights
Fourth Quarter and Full Year 2021 Financial Highlights Fourth Quarter 2021 Full Year 2021 › Revenue: $20.7 million › Revenue: $70.7 million › Gross profit: $14.8 million › Gross profit: $50.6 million › Gross margin: 71.2% (Non-GAAP 71.5%) › Gross margin: 71.6% (Non-GAAP: 71.8%) › Adjusted EBITDA1: $
Slide 22: Looking into 2022
Looking into 2022 Remain focused on Ultimate goal is to Increasing revenues Optimizing Diligently managing achieve and then delivering value to all year after year margins our operations continue to amplify our stakeholders by: our profitability First Quarter 2022 Full Year 2022 › Revenue: $20.6-$21
Slide 23: Summary
Summary First-mover advantage - Setting industry standards as a go-to-market strategy Track record of market leadership driving increased revenues Large, fast-growing addressable markets in Automotive and Audio-Video Compelling financial model with clear path to profitability 23
Slide 24: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to non-GAAP Financial Measures Three Months Ended Three Months Ended December 31, December 31, 2021 2020 2021 2020 Net Loss1 (7,973) (6,011) (26,534) (19,635) Adjusted to exclude the following: Financial income (expense), net (820) (428) (929) (3,300) Income taxes 169 37 407 1
Slide 25: Thank you
Thank you www.valens.com investors@valens.com