Aurora Innovation, Inc. · NASDAQ:AUR
Aurora Innovation — SPAC Merger (July 2021)
64 slides from Aurora Innovation's SPAC merger presentation, Jul 15, 2021
Slide 1: Slide 1
Slide 2: Disclaimer
DISCLAIMER Disclaimer This presentation (the “Presentation”) is being made in connection with a potential offering and transaction (the “Business Combination”) between Aurora Innovation, Inc. (“Aurora”) and Reinvent Technology Partners Y (“Reinvent”). Confidentiality The information in this Presenta
Slide 3: Disclaimer
DISCLAIMER Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the data contained herein is reflective
Slide 4: Disclaimer: Certain Financial Measures
DISCLAIMER Disclaimer Certain Financial Measures This Presentation includes certain non-GAAP financial measures that Aurora’s management uses to evaluate Aurora’s operations, measure its performance and make strategic decisions. EBITDA and Free Cash Flow are non-GAAP financial measures. EBITDA is de
Slide 5: Delivering the benefits of self-driving technology safely, quickly, and broadly
Delivering the benefits of self-driving technology safely, quickly, and broadly ©2021 | Aurora Confidential and Proprietary 5
Slide 6: Today's Presenters
Today’s Presenters CEO & CFO Reinvent ©2021 | Aurora Confidential and Proprietary 6
Slide 7: Together, Reinvent and Aurora will transform transportation
Overview Together, we believe Reinvent and Aurora will transform transportation ✓ founders ✓ Visionary founding team with unmatched industry and technical expertise ✓ We invest in markets where we have expertise and believe we can add value ✓ Massive autonomous transportation market with significant
Slide 8: Transaction Summary
Transaction Summary Overview Transaction structure1 Valuation Capital structure Transaction implies a fully The transaction will be Aurora and Reinvent are diluted pro forma enterprise targeting ~$1.9B of net partnering to transform value of $10.6B proceeds through a the future of transportation com
Slide 9: De-SPAC structure aligns interests for the long-term
De-SPAC structure aligns interests for the long-term Overview One Board seat Price-based vesting Lock-up arrangements At least $1 billion PIPE investment1 Designated for 75% of Reinvent founder Up to a four year lock-up on Reinvent shares subject to Reinvent founder shares in A Reinvent special pric
Slide 10: *Computer-rendered imagery provided for illustrative purposes only 10
©2021 | Aurora Confidential and Proprietary *Computer-rendered imagery provided for illustrative purposes only 10
Slide 11: Why Aurora is positioned to win
Why Aurora is positioned to win Overview Aurora’s approach defines self-driving 2.0 Led by a management team with deep technical and industry experience Architecting best-in-class technology, a highly-scalable solution and optimal path to commercialization to deliver self-driving We expect this tran
Slide 12: The Aurora Driver enables the digitalization of transportation
The Aurora Driver enables the digitalization of transportation ©2021 | Aurora Confidential and Proprietary 12
Slide 13: Delivering the benefits of self-driving technology safely, quickly, and broadly
Driver Delivering the benefits of self-driving technology Aurora safely, quickly, and broadlyThe safety Transform logistics hour 154 people the U.S., trucking their lives1 on the accounts for 300B miles roads annually & 65% of total goods3 movement access Improve lives 25.5 million people2 with The
Slide 14: Aurora expects to address the entirety of an enormous transportation market
Driver Aurora expects to address the entirety of an enormous Aurora transportation market The 700bn $4tn Trucking market (US)1 Global4 $35bn $1tn / $5tn Ride-hailing market (US)2 Personal mobility TAM (US / Global)5 $100bn $400bn Local goods delivery market (US)3 Global6 SOURCES: 1 A.T. Kearney Stat
Slide 15: Automation of transportation is analogous to digitalization of advertising
Driver The automation of transportation is analogous to Aurora the digitalization of advertisingThe Digitalization of advertising Automation of transportation Immediate global addressable market size 1995 2021 market $160B $835B US Only a handful of winners Facebook and Google captured ~70% of US di
Slide 16: *Computer-rendered imagery provided for illustrative purposes only 16
©2021 | Aurora Confidential and Proprietary *Computer-rendered imagery provided for illustrative purposes only 16
Slide 17: The Aurora Driver is a common platform across transportation verticals
Driver The Aurora Driver is a common platform Aurora The across transportation verticals Self-driving software Self-driving hardware Maps, offboard support, and other data services Passenger mobility ©2021 | Aurora Confidential and Proprietary 17
Slide 18: Aurora Driver delivered as a service and monetized on a usage basis
Driver The Aurora Driver is set up to be delivered as Aurora The a service and monetized on a usage basis The Driver as a Service business model enables: Focused Rapid scaling through High-margin development partnerships revenue projected ~80% gross profit margins and ~60% projected EBITDA margins o
Slide 19: The Optimal Path to Market
The Optimal Path to Market ©2021 | Aurora Confidential and Proprietary 19
Slide 20: Differentiated market entry sequence starts in trucking
Market Aurora’s differentiated to Path market entry sequence starts in trucking Passenger Local goods Trucking mobility delivery US market 1 2 3 revenue today $700bn $35bn ride-hail $100bn Value proposition Increased vehicle operating Increased vehicle operating Increased driver access and for self-
Slide 21: Common core facilitates efficient development and rapid adaptation
Market The common core of the Aurora Driver facilitates efficient development to Path and rapid adaptation to trucking and ride-hailing The Aurora Driver’s common core requires only minor adaptations for different Redundant Truck vehicles and use cases Trucking Product Trucking is the “tip of the sp
Slide 22: Development, launch, and scale expected in five phases
Market Development, launch, and scale of to Path the Aurora Driver is expected to happen in five phases Phase I Phase II Phase III Phase IV Phase V Lay the foundation Develop & refine Validate Launch Expand (2017-2020) (2021-2022) (Truck: 2022-2023) (Truck: 2023-2024) (Truck: 2024+) (Rides: 2023-202
Slide 23: Trucking product expected to expand across the continental US over eight years
Market Aurora’s trucking product is expected to expand to Path across the continental US over eight years Illustrative lane expansion given commercial, technical, and regulatory considerations 2023 2024 2025 2026 2027 2028 2029 2030 ©2021 | Aurora Confidential and Proprietary 23
Slide 24: Industry-Leading Partnerships
Industry-Leading Partnerships ©2021 | Aurora Confidential and Proprietary *Computer-rendered imagery provided for illustrative purposes only 24
Slide 25: Partnerships accelerate commercialization of the Aurora Driver
Aurora’s partnerships accelerate the commercialization Partnerships of the Aurora Driver OEMs Ride Networks Partnered with logistics Partners produce ~50% companies and the of US trucks largest global ride-hailing company Fleet Service Partners Logistics Services ©2021 | Aurora Confidential and Prop
Slide 26: Aurora Driver can create immense value for trucking partners
The Aurora Driver can create immense value for trucking partners Partnerships Inventory Speed up service and supply chains carrying costs, and The Aurora Driver can operate 24 hours/day vs a traditional truck’s 11 network Moving a load from LA to Houston drops from 2+ days to a single day inefficien
Slide 27: Strategic truck OEM partners represent ~50% of the US market
Aurora’s strategic truck OEM Partnerships partners collectively represent ~50% of the US market Partnerships with two of the top three truck OEMs Long-term commitments to build and deploy self-driving trucks at scale, with all parties making significant investment in the success of the programs Deep
Slide 28: Aurora driver key to expansion in ride-hailing market
The Aurora driver is key to a significant Partnerships expansion in the ride-hailing market Safety ✓ Consumer considerations Driver vehicle Direct costs & Direct, parking, ✓ ownership costs parking & value of time Cost Step change reduction in 100% shared mobility cost ✓ 80% Service levels Personali
Slide 29: ©2021 | Aurora Confidential and Proprietary 29
©2021 | Aurora Confidential and Proprietary 29
Slide 30: Toyota and Aurora are committed long-term partners
Toyota and Aurora are Partnerships committed long-term partners Top global OEM & Tier 1 Supplier, respectively Long-term commitment: Large investor and major development partnership Structured for success: Relationship built on a strong framework supported at the highest levels ©2021 | Aurora Confid
Slide 31: Partnership with Uber drives key competitive benefits
Aurora’s partnership with Uber Partnerships drives key competitive benefits Compelling commercial relationship: Driven by mutually-beneficial economics and demand â–¸ Long-term commitment: Uber is a large minority investor and CEO is on Aurora’s Board of Directors Unprecedented data advantage: 10 ye
Slide 32: Access to Uber data is a unique competitive advantage
Access to Uber data is a unique Partnerships competitive advantage Clear roadmap prioritization Optimized fleet positioning Detailed marketplace data Not all self-driving capabilities are Uber data informs our in-market combined with regulatory created equal. Knowing where tactics e.g. fleet rebalan
Slide 33: The Team That Will Deliver
The Team That Will Deliver ©2021 | Aurora Confidential and Proprietary 33
Slide 34: Aurora has proven leadership and expertise
Team Aurora has proven leadership and expertise Barna Brooklyn Nat Beuse Richard Tame of Hardware VP of Safety VP of Finance Gerhard Tara Green Gerardo Interiano Bart Nabbe David Maday Eschelbeck VP of People VP of Government VP of Corporate VP of Business Chief Information Operations Relations Deve
Slide 35: Aurora has the required scale to deliver self-driving
Team Aurora has the required scale to deliver self-driving ~1600 Seattle, WA Employees Bozeman, MT 1400+ Wixom, MI Product & Engineering Pittsburgh, PA Louisville, CO 175+ San Francisco, CA PHDs Mountain View, CA 1100+ Dallas / Ft. Worth, TX Patents1 Office Aurora Test Site Network 1 Includes patent
Slide 36: Industry-Defining Technology
Industry-Defining Technology ©2021 | Aurora Confidential and Proprietary *Computer-rendered imagery provided for illustrative purposes only 36
Slide 37: Aurora is innovating throughout the self-driving stack
Technology GPS IMU Encoders Lidar Camera Radar Hardware Aurora is innovating Perception Localization throughout the self-driving stack Planning Simulation Control Maps Drive-by-wire Indicates the technologies highlighted in this presentation ©2021 | Aurora Confidential and Proprietary 37
Slide 38: FirstLight Lidar is engineered for highway driving
Aurora’s FirstLight Lidar is engineered for the needs of highway driving Technology Multi-modal long-range sensing 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
Slide 39: ©2021 | Aurora Confidential and Proprietary 39
©2021 | Aurora Confidential and Proprietary 39
Slide 40: Developing lidar in-house has many advantages
Developing lidar in-house Technology has many advantages There are significant challenges relying on externally-developed lidar Step Step 1 Digest data, revise undamental of vision and assumptions, iterate technology Lack clarity in requirements Risk of being left out via exclusivity Tier 1s have lo
Slide 41: Virtual Testing Suite creates a paradigm shift in testing
Aurora’s Virtual Testing Suite creates a paradigm shift Technology in testing safety, efficiency, and speed Aurora’s Virtual Testing Suite (which includes simulation and data replay technologies) improves: â–¸ Safety: Dramatically reduces the number of on-road miles needed to develop the Aurora Driv
Slide 42: The Aurora Atlas is HD mapping with exceptional maintainability
The Aurora Atlas is HD Technology mapping with exceptional maintainability Aurora’s Atlas architecture: â–¸ Provides accuracy where it’s needed most: near the vehicle â–¸ Unlocks rapid (near-real-time) updates â–¸ Enables efficient maintenance so that map data can always be up-to-date â–¸ Shards dat
Slide 43: Financial Forecast
Financial Forecast ©2021 | Aurora Confidential and Proprietary 43
Slide 44: Driver as a Service business model is highly capital efficient
Driver as a Service business model Financials is highly capital efficient Description Aurora provides its technology to an external fleet owner and/or operator Revenue Fee per mile Variable: Insurance2, Aurora Driver hardware/maintenance cost3, Teleassist, Cloud, Telecommunications, and any variable
Slide 45: *Computer-rendered imagery provided for illustrative purposes only 45
©2021 | Aurora Confidential and Proprietary *Computer-rendered imagery provided for illustrative purposes only 45
Slide 46: Aurora intends to fund its development operations primarily with transaction proceeds
Aurora intends to fund its Financials Fiscal Year End December 31 development operations ($ in millions) 2021E 2022E 2023E 2024E 2025E 2026E 2027E US trucking VMT nm nm 183 186 189 191 194 primarily with proceeds (bn miles) Aurora trucking VMT from this transaction nm nm 1 20 134 952 3,264 (mm miles
Slide 47: Commercial model and development roadmap anticipates 2027 breakeven
Financials Aurora’s commercial model Fiscal Year End December 31 and development roadmap ($ in millions) 2021E 2022E 2023E 2024E 2025E 2026E 2027E US trucking VMT nm nm 183 186 189 191 194 anticipates 2027 breakeven (bn miles) Aurora trucking VMT nm nm 1 20 134 952 3,264 (mm miles) % Mkt Penetration
Slide 48: TAM drives large long-term outcome potential
TAM drives large long-term Financials outcome potential â–¸ Massive US trucking and ride hailing markets enable significant revenue even at small % 2030E Trucking penetration revenues ($bn) Aurora market penetration1 â–¸ Driver as a Service model creates attractive 7.5% 10.0% 12.5% unit economics an
Slide 49: Aurora's next-generation approach positions it to win
Aurora’s next-generation approach Financials positions it to win â–¸ Led by a management team with deep technical and industry experience â–¸ A differentiated go-to-market strategy that enables rapid and efficient entry to multiple verticals â–¸ Strong, strategic partnerships accelerate commercializ
Slide 50: Valuation Benchmarking
Valuation Benchmarking ©2021 | Aurora Confidential and Proprietary *Computer-rendered imagery provided for illustrative purposes only 50
Slide 51: Transaction overview
Overview Transaction overview $mm, except per share data Transaction Sources $ Pro-forma valuation $ Rollover equity $11,000 Share price $10.00 PIPE proceeds1 1,000 Pro-forma shares outstanding3 1,304 Reinvent cash held in trust 978 Equity value $13,039 Total sources $12,978 Net cash4 2,478 Uses $ A
Slide 52: Analogous autonomous precedents validate valuation upside
Analogous autonomous precedents validate valuation upside Benchmarking Valuation Valuation across last five rounds Latest valuation $30 $31 $19 bn) $15 bn) $12 $ ( $ ( $1 2016 2018 2018 2019 2021 2020 Lead â–¸ Waymo and its autonomous taxi business Investor: was most recently valued at $31bn Employe
Slide 53: Operational benchmarking
Operational benchmarking Benchmarking At Scale Peers Long-Term Bets 2021E-2023E Revenue CAGR Outer Years Revenue CAGR1 Operational 807% 305% 355% Growth 158% 61% 33% 32% 51% Revenue 31% 11% 24% 2025-2027E Revenue CAGR Median 33% 2021E Gross Margin Outer Years Gross Margin² 78% 67% 68% 66% 55% 54% 62
Slide 54: Valuation benchmarking
Valuation benchmarking Benchmarking At Scale Peers Long-Term Bets EV / 2022E Revenue EV / Outer Years Revenue2 Valuation 53.8x 31.0x 30.0x 20.4x 18.7x 11.1x 8.6x 5.3x 4.9x 3.2x Revenue 1.6x / EV 2027E 1 Median: 30.5x EV / 2022E Gross Profit EV / Outer Years Gross Profit3 77.8x 59.3x Profit 48.1x 38.
Slide 55: ©2021 | Aurora Confidential and Proprietary 55
©2021 | Aurora Confidential and Proprietary 55
Slide 56: Appendix
Appendix ©2021 | Aurora Confidential and Proprietary 56
Slide 57: Development, launch, and scale expected in five phases
Development, launch, and scale of Appendix the Aurora Driver is expected to happen in five phases Phase I Phase II Phase III Phase IV Phase V Lay the Foundation Develop & Refine Validate Launch Expand (2017-2020) (2021-2022) (Truck: 2022-2023) (Truck: 2023-2024) (Truck: 2024+) (Rides: 2023-2024) (Ri
Slide 58: Self-driving 2.0: next-generation approach to self-driving
Self-driving 2.0: Aurora is developing Appendix the next-generation approach to self-driving Self-driving 1.0 Self-driving 2.0 Vehicle interface Highly customized/bespoke to a single vehicle Widely adaptable/consistent platform approach Hardware Sensor suite Limited range, resolution, and data Advan
Slide 59: Key forecast assumptions
Key forecast assumptions Appendix The Aurora financial model attempts to quantify our projected US trucking & rides business opportunity, based on a number of operational assumptions that include: Addressable vehicle miles traveled (VMT). For trucking, we start with 175bn miles as our addressable ma
Slide 60: Historical Financial Summary
Historical Financial Summary ($ in thousands) Fiscal Year End December 31, 2020 Fiscal Year End December 31, 2019 Development services revenue $- $19,601 Operating expenses: Cost of revenue—160 Research and development 179,426 107,368 Selling, general and administrative 38,693 25,591 Total operating
Slide 61: Risk Factors (1/4)
Risk Factors (1/4) Appendix Investing in our common stock involves a high degree of risk. You should carefully consider the following risks, together with all of the other information contained in this Presentation, before deciding to invest in our common stock. Our business, financial condition, re
Slide 62: Risk Factors (2/4)
Risk Factors (2/4) Appendix Risks Related to Our Technology, Business Model and Industry Risks Related to Our Business Operations 1. We are an early stage company with a history of losses, and we expect to incur significant 13. Our business plans require a significant amount of capital. In addition,
Slide 63: Risk Factors (3/4)
Risk Factors (3/4) Appendix Risks Related to Our Legal and Regulatory Environment Risks Related to Our Intellectual Property and Data Privacy 27. Burdensome regulations, inconsistent regulations, or a failure to receive regulatory 38. Despite the actions we are taking to defend and protect our intel
Slide 64: Risk Factors (4/4)
Risk Factors (4/4) Appendix Risks Related to the Business Combination Risks Relating to Ownership of Our Common Stock 48. The consummation of the Business Combination is subject to a number of conditions and 56. We cannot predict the impact our dual class structure may have on the market price of ou