Navitas Semiconductor Corporation · NASDAQ:NVTS

Navitas Semiconductor — Investor Presentation (September 2022)

44 slides from Navitas Semiconductor's investor presentation, Sep 13, 2022

  1. Slide 1: New York Investor Meeting

    New York Investor Meeting Nasdaq Market Site September 13th, 2022 © Navitas Semiconductor 2022 Contact: ir@navitassemi.com Note disclaimers. Information is as of the date specified only.

  2. Slide 2: Disclaimers

    Disclaimers FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (15 U.S.C. § 78u–5). Forward-looking statements may be identified by the use of words such as “we expect” or “are expected

  3. Slide 3: Disclaimers

    Disclaimers FINANCIAL INFORMATION; NON-GAAP FINANCIAL MEASURES This presentation includes financial information and data which are unaudited and do not conform to Regulation S-X promulgated under the Securities Act of 1933, as amended. Accordingly, such information and data may not be included in, m

  4. Slide 4: Pure-Play Next-Gen Power Semiconductors

    Pure-Play Next-Gen Power Semiconductors © Navitas Semiconductor 2022 3

  5. Slide 5: Navitas At A Glance

    Navitas At A Glance Company Overview Company Revenue • Founded 2014 $40M+ • 200+ employees • Leading power GaN IC and power SiC technology • 185 patents pending or issued • Industry’s Only Pure-Play Next-Gen Power Semi company $1M • Mission to Electrify Our World FY18 FY22 Recent Highlights • Leadin

  6. Slide 6: Industry’s First Next-Gen Power Semi Player

    Industry’s First Next-Gen Power Semi Player New! Up To Up To Up To Up To Up To Up To 20x 3x 40% 3x 3x 20% Faster Smaller & Energy Higher Faster Lower Switching Lighter Savings Power Charging System Density Cost Note: Navitas estimate of GaN- & SiC-based power systems compared to silicon in the 2024-

  7. Slide 7: Significant Synergies to Accelerate Leadership

    Significant Synergies to Accelerate Leadership Powerful & Complimentary Combination Only Pure Play GaN+SiC Navitas GeneSiC Power Player Critical next-gen power Technology Leading GaN Leading SiC technology leadership Power Focus 20W – 20kW 1kW – 20MW Full power range Mobile, consumer; Accelerates EV

  8. Slide 8: Only Pure-Play Next-Gen Power Semi Company

    Only Pure-Play Next-Gen Power Semi Company Note: Axes not to scale Note (1): 2026E potential, Source: Yole, DNV, IRENA, Fraunhofer ISE, IHS, Cisco, Hyperscale, Peer annual reports, Wall Street research. © Navitas Semiconductor 2022 7

  9. Slide 9: It is Time to Electrify Our World

    It is Time to Electrify Our World™ Energy Sources Energy Uses Use Fossil-Fuel Use 2020 2050 2020 2050 Transition to clean, efficient, reliable and low-cost electricity …for a very bright, sustainable (and fun & enjoyable) future © Navitas Semiconductor 2022 8

  10. Slide 10: Our Electrified Future

    Our Electrified Future Fossil Fuel based Electrified Applications Applications Energy Supply Limited (<150 years?) Unlimited Energy Efficiency Inefficient (30-60%) Highly Efficient (95%+ w/ GaN, SiC) Noise &Impact Climate Odor High CO Noise / High Odor 2 Intensive Low Noise / Low Odor CO2 Light Nois

  11. Slide 11: Clean Energy Initiative (part of IRA)

    Clean Energy Initiative (part of IRA) • $369B in spending focused on clean energy • Targets roughly 40% CO2 emissions reduction by 2030 • Major focuses in renewables, home energy / efficiency improvements and EVs • Significant accelerant to Navitas pure-play GaN+SiC focus areas © Navitas Semiconduct

  12. Slide 12: GaN & SiC… A Perfect Fit for Fabless

    GaN & SiC… A Perfect Fit for Fabless Fabless vs IDM Trade-Offs GaN & SiC Wafer Fab Requirements Supply Capital Mfg Cost Assurance • Materials: very advanced Intensive Higher IDM $1B+ when new until >70% utilization High • Design: very advanced & proprietary (Navitas / GeneSiC) Light Lower High • Fab

  13. Slide 13: GaN & SiC Manufacturing Costs

    GaN & SiC Manufacturing Costs SiC Substrate Mfg Cost & Suppliers Manufacturing & Materials Cost Structures Substrate Epi Wafer Fab Total Cost Single Sourced Silicon GaN Silicon Fab 1x  GaN very low cost moderate cost low cost 0.6x future many suppliers growing suppliers standard eqiup’t SiC SiC Sil

  14. Slide 14: SiC: Robust and Flexible Supply Chain

    SiC: Robust and Flexible Supply Chain World-Class SiC Devices Finished SiC Wafer Tier-1, Low-Cost Packaging Multiple, major suppliers qualified SiC Epi Layer SiC Wafer Substrate Multi-sourced reactors, Multi-sourced, scalable, highest-quality epi established suppliers ✔ 90%+ yields ✔ 12+ combination

  15. Slide 15: Industry-Leading Technology

    Industry-Leading Technology © Navitas Semiconductor 2022 14

  16. Slide 16: The Second Revolution in Power

    The Second Revolution in Power Linear Switching Switching HF Switching Regulators Regulators Regulators Regulators 50 Hz 30 kHz 65 kHz 1 MHz 100 Si Bipolar Si FETs 95-98% (AC-DC converters ~300W) New Magnetics Power Density (W/in3) New Controllers New Topologies 10 2x Lower Loss 90% 3x Lower $/W 2x

  17. Slide 17: GaN ICs: Maximize Speed & Efficiency

    GaN ICs: Maximize Speed & Efficiency Size, Weight Energy Savings 1.0x 40% Silicon GaN IC 0.6x GaN Discrete / MCM 20% GaN Discrete GaN IC Silicon 0.35x 65 kHz 75 kHz Up to 1 MHz 85-90% 88-92% 90-95% (Switching Frequency) Speed Energy Efficiency GaN power ICs enable up to 3x smaller, lighter (1) GaN I

  18. Slide 18: Navitas GaN IC: Smaller, Faster, Robust

    Navitas GaN IC: Smaller, Faster, Robust Discrete dMode GaN Discrete eMode GaN Navitas eMode GaN IC dMode GaN Discrete Silicon (3.7mm2) FET Integrates (3.8mm2) eMode GaN Discrete drive circuit Monolithic (4.5mm2) & more GaN IC Drive Circuit (in Silicon) (1.4mm2) • No extra circuits • No parasitics &

  19. Slide 19: True GaN Integration Drives Speed, Size

    True GaN Integration Drives Speed, Size Passive Components System GaN IC GaN MCM Passive ICs 45W Speed Components 50W Shrinks Passives System GaN Discrete IC in Multi-Chip- Module (MCM) GaN ICs 65 kHz 400 kHz Bobbin Transformer (23 mm thick) 6x Faster Planar Transformer (8 mm thin) Electrolytic Capa

  20. Slide 20: Ultimate GaN Integration Drives Ultimate Speed

    Ultimate GaN Integration Drives Ultimate Speed 1 MHz 500 kHz 200-300 kHz 65 kHz 75 kHz © Navitas Semiconductor 2022 19

  21. Slide 21: GaN Integration Drives Speed, Efficiency, Stability

    GaN Integration Drives Speed, Efficiency, Stability Discrete GaN Half-Bridge GaNSense Half-Bridge IC 61% fewer  33 components components 13 components  250 mm2 footprint 90 mm2 footprint  External HB driver HVIC Level shifters 64% smaller  External. HV bootstrap footprint Bootstrap  2x HV b

  22. Slide 22: High Speed Shrinks Passive Components

    High Speed Shrinks Passive Components Typically, slow-speed designs have ~70% of volume High-speed GaN IC designs shrink Half-Bridge IC delivers used by transformer, capacitors, EMI filter, etc. ‘passive’ components by ~50%(1) ~2x the power, or ~2x faster charging in the same size(1) Transformer Tra

  23. Slide 23: 100% Tier 1 Mobile OEMs Adopting Navitas

    100% Tier 1 Mobile OEMs Adopting Navitas Tier 1 OEMs Aftermarket Examples 225+ 290+ 100% 50M+ Zero GaN Chargers GaN Chargers Mobile OEMs Designing With GaN ICs Shipped(2) GaN Field Failures(2) Mass Production(1) In Development(1) Navitas GaN ICs 1) As of June 30th, 2022. 2) Based on Navitas shipment

  24. Slide 24: Now Ultra-Fast Chargers

    Now Ultra-Fast Chargers 240 Charging Power (W) GaN 230 Smartphone OEM Charger Power 220 210 GaN 200 190 • Major trend 180 • New, fast-growth market: $1B opportunity by 2025(1) 170 160 GaN • Full charge in <10 mins (200W) 150 140 • Increased GaN$ per charger 130 GaN GaN • World’s highest power densit

  25. Slide 25: © Navitas Semiconductor 2022

    © Navitas Semiconductor 2022 24

  26. Slide 26: Industry-Leading Robustness & Reliability

    Industry-Leading Robustness & Reliability Industry’s Highest 100% Tested Avalanche Rating Avalanche Energy (Production Test) Patented Trench-Assisted Planar SiC MOSFET • Highly uniform in production • Industry-leading robustness Supplier #3 • Highest 100% tested avalanche ratings Excellent Short-Cir

  27. Slide 27: Broadest SiC MOSFET Portfolio

    Broadest SiC MOSFET Portfolio (1) 650–6,500V Trench-Assisted Planar SiC FETs Most 1,700V SiC FETs Supplier #2 Supplier #3 Supplier #4 • 50+ SiC MOSFETs, array of standard packages • Broadest industry offering for 1700V SiC MOSFETs • Only supplier with 650V to 6,500V SiC MOSFETs Note (1): based on Ge

  28. Slide 28: Best High-Speed, High-Temp Performance

    Best High-Speed, High-Temp Performance Resistance Energy Loss Figure-of-Merit (Low number is better) Supplier RDS(ON) RDS(ON) EON EOFF EOSS EZVS Hard-Switching RDS @ 175°C x (EON+EOFF) Soft-Switching RDS @ 175°C x EZVS @ 25°C @ 175°C @ 25A @ 35A @ 800V EOFF-EOSS (mΩ) (Ω-µJ) (Ω-µJ) (mΩ) (µJ) (µJ) (µJ

  29. Slide 29: GeneSiC: Energy Savings, Extended Lifetime

    GeneSiC: Energy Savings, Extended Lifetime • GeneSiC trench-assisted planar FET vs. Competitor SiC FET • 1,200 V, 40 mΩ, D2pak in half-bridge • Represents 7.5 kW DC-DC converter (e.g. data center, EV) • 150 kHz switching = ~10x faster than Si IGBT example • GeneSiC: >80% energy savings (>3,000 kWh/y

  30. Slide 30: High-Speed GaN Exceeds “Titanium” with >2x Power Density

    High-Speed GaN Exceeds “Titanium” with >2x Power Density • Euro Data Centers must be ‘Titanium plus’ from January 1st, 2023 • European Union ‘Directive 2009/125/EC, 2019 Annex’, power supplies must be >96% efficiency peak. • System Design Center: 4 platforms, 8 customer projects: 1.3 kW, 1.6 kW, 2.7

  31. Slide 31: Pure-Play EV: The Largest Opportunity

    Pure-Play EV: The Largest Opportunity Dedicated EV System Design Center • 3 platforms in development LV Battery • 400V 6.6 kW W bi-directional charger (2-in-1) Traction Drive • 800V 6.6 kW bi-directional charger and DC-DC (3-in-1) • 22 kW wall charger to 400V, 800V • 5 GaN customer programs in devel

  32. Slide 32: GaN + SiC for Solar & Energy Storage

    GaN + SiC for Solar & Energy Storage $ Lower Less Inverter Power Inverter Cost(1) Dissipation(1) $0.100/W Solar Inverters 158 W 25%+ 40%+ Savings Energy Savings $0.075/W 94 W Energy Storage Silicon Silicon (1) EnergySage Solar Marketplace, 2020. Synergistic & Engaged Customers Market Potential for G

  33. Slide 33: Motor Drive: Speed Drives Efficiency, Size & Cost

    Motor Drive: Speed Drives Efficiency, Size & Cost • Motors use >53% of the world’s energy • Most are still simple AC motors, only ~60% efficient (1) Navitas and Infinitum research

  34. Slide 34: 50-300W Motors = $1.5B/yr GaN Opportunity

    50-300W Motors = $1.5B/yr GaN Opportunity(1) Legacy Si-Based GE Brush-less DC (BLDC) Motor & Inverter for Washing Machine (~80% efficiency) Navitas 300W 3-phase Platform for Inverter-Motor Integration • 2x higher frequency • >60% fewer components, PCB area • 95-97% efficiency • 80% energy savings vs

  35. Slide 35: High Speed GaN+SiC Enable Motor Drive Revolution

    High Speed GaN+SiC Enable Motor Drive Revolution • SiC/GaN + lightweight PCB stators • More power (inductance) • Half the size and weight • Low noise • 30% lower CO2 footprint • Next-gen air-core motor • Industrial, commercial 0.5 - 30 hp (400 W - 22 kW) • EV up to 400 hp (300 kW) © Navitas Semicond

  36. Slide 36: Pure-Play Next-Gen Power Semiconductors

    Pure-Play Next-Gen Power Semiconductors © Navitas Semiconductor 2022 35

  37. Slide 37: GeneSiC Acquisition: Accretive in Every Way

    GeneSiC Acquisition: Accretive in Every Way Navitas GeneSiC Benefit Revenue Growth >40%(1) >60%(2) Gross Margin %(3) Low 40’s Over 50% EBITDA(3) -- Over 25% Market Opportunity $13.1B $15.4B Market Expansion 2-3 years Immediate Qtrly Cash Flow(3) ($13M) + $2M © Navitas Semiconductor 2022 (1) 1H’22 vs

  38. Slide 38: GeneSiC Transaction Summary

    GeneSiC Transaction Summary Deal Elements Terms / Impact Cash $100M Equity 25M shares (approx.) Deal Value $246M (@ $5.5/share) Earn-Out $25M (substantial revenue & margin targets) Balance Sheet Result $140M+ (organic confidence & inorganic optionality) Debt / Financing No debt or financing required

  39. Slide 39: Balance Sheet Creates Opportunities

    Balance Sheet Creates Opportunities Balance Sheet Creates Opportunities Cash and cash equivalents (in thousands) $ 140,504 Accounts receivable, net 10,360 Inventories 15,636 Prepaid expenses and other current asset 2,342 Pro forma balance sheet June 30, 2022: Total current assets $ 168,842 • Reflect

  40. Slide 40: Impressive Growth & Diversity

    Impressive Growth & Diversity Revenue Growth Market Diversification $45 $40 $35 Revenue ($M) $30 $25 $20 $15 $10 $5 $0 2018 2019 2020 2021 2022 • Impressive, demonstrated revenue growth • Diversifying across high growth end markets as GaN moves into motor (appliance to start) • GeneSiC accelerates a

  41. Slide 41: Attractive Operating Model

    Attractive Operating Model Other Power Semi Players Navitas Benefit Technology Mixed Pure-Play Next-Gen Mostly IDM Fabless Supply Chain & Inflexible & Flexible System-driven Market Focus Broad-based Electrification Annual Growth Rate <10%(1) 60% Gross Margin % ~40%(1) Target >50% Capital Intensity H

  42. Slide 42: Partners to Customers; Caretakers to Our Planet

    Partners to Customers; Caretakers to Our Planet © Navitas Semiconductor 2022 41

  43. Slide 43: The Only Pure-Play Next Gen Semis

    The Only Pure-Play Next Gen Semis • Future-focused, leading-edge technology • GaNSense Half-Bridge ICs set new standard in speed, efficiency & integration • GeneSiC sets new technology standard in speed, efficiency and robustness • GaN market expansions on track • New motor market established, openi

  44. Slide 44: Pure-Play Next-Gen Power Semiconductors

    Pure-Play Next-Gen Power Semiconductors © Navitas Semiconductor 2022 43

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