Navitas Semiconductor Corporation · NASDAQ:NVTS
Navitas Semiconductor — SPAC Merger (May 2021)
44 slides from Navitas Semiconductor's SPAC merger presentation, May 6, 2021
Slide 1: Investor Presentation
Investor Presentation TM Electrify Our World
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS This presentation (this “Presentation”) includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of wor
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont’d) FINANCIAL INFORMATION; NON-GAAP FINANCIAL MEASURES The financial information and data contained in this Presentation is unaudited and does not conform to Regulation S-X promulgated under the Securities Act of 1933, as amended. Accordingly, such information and data may not be inc
Slide 4: Transaction Summary
Transaction Summary Navitas Management Transaction Highlights ▪ Live Oak Acquisition Corp. II (NYSE: LOKB.U) is a publicly-listed special purpose acquisition company with $253M cash held in trust that has entered into an agreement that contemplates a merger with Gene Sheridan Overview Navitas Semico
Slide 5: Live Oak Partnership Provides de-SPAC Advantages
Live Oak Partnership Provides de-SPAC Advantages Live Oak is the Preferred Case Study: Merger Partner II Successful de-SPAC through Commitment to Partnership ✓Generate a stable and long-term oriented shareholder base ✓Twelve weeks of “de-SPAC” roadshow ✓Retained ICR, a leading IR / PR firm to lead i
Slide 6: Investment Highlights
Investment Highlights Next-generation power semiconductor platform, with up to 3x smaller, 3x lighter, 3x faster charging and 1 40% energy savings(1) Differentiated GaN power integrated circuit (IC) platform, with over 18Mu in volume(2), #1 market 2 position, zero field failures(3) and 120+ patents
Slide 7: GaN Expected To Replace Silicon In Power Applications
GaN Expected To Replace Silicon In Power Applications Up To Up To 20x 3x 40% 3x 3x 20% Faster Smaller & Energy Higher Faster Lower Switching Lighter Savings Power Density Charging System Cost Navitas GaN Is Empowering Efficiency In Industries Where Power Is Key(1) Note: Statistical data is based on
Slide 8: Navitas GaN Applies To Diverse Industries
Navitas GaN Applies To Diverse Industries Mobile Consumer Enterprise Renewables / Solar EV / eMobility Navitas GaN Electrifies The World Today, For A Cleaner Tomorrow © Navitas Semiconductor 2021 7
Slide 9: GaN ICs Deliver High Value & Reliability At Low Cost
GaN ICs Deliver High Value & Reliability At Low Cost GaNICs GaN Discrete Integrate Drive, Control and Protection(1) Discrete GaN is Unprotected GaN(2) GaN Power IC 95% Excessive voltage stress degrades Efficiency 90% reliability and Up to 5x risks failure Discrete Energy Savings GaN 85% Silicon Reli
Slide 10: GaN Integration Is Key To Speed, Efficiency And Size
GaN Integration Is Key To Speed, Efficiency And Size Navitas’ proprietary integration unlocks GaN’s potential Drive, Control & Speed Passive & Mechanical Size & Weight Solution Power Energy Efficiency Protection (Switching Frequency) Components Density 92-95% GaN (40% energy 3x Compact, integrated s
Slide 11: GaN ICs Set A New Standard In Power Semiconductors
GaN ICs Set A New Standard In Power Semiconductors IC Silicon Discrete GaN Discrete Simplicity 🗸🗸 🗸 🗴 Cost(1) 🗸🗸 🗸 🗴 🗸🗸 🗴 🗸 Speed (Switching Frequency) Efficiency 🗸🗸 🗴 🗸 🗸🗸 🗴 🗸 Size (Power, Weight, Density) Protection 🗸🗸 🗴 🗴 Reliability 🗸🗸 🗴 🗴 © Navitas Semiconductor…
Slide 12: Significant Praise For Navitas GaN IC
Significant Praise For Navitas GaN IC “ Navitas is uniquely positioned vs. others who struggle “ With GaN devices the most difficult part is gate driving. with drive and control ” Chief Power Architect, Dell Navitas has solved this issue perfectly – today we only use Navitas ” CTO and Co-Founder of
Slide 13: Navitas Has Overcome Key Hurdles To Commercialization
Navitas Has Overcome Key Hurdles To Commercialization Significant Barriers to Entry Proprietary GaN IC Poor Manufacturing / Yields Manufacturability Stable >90% Yields(1) Material mismatch (GaN / Silicon) Fully-Qualified, >1B Device Hours Poor Reliability Founding Reliability Tested, >18Mu Shipped(
Slide 14: Navitas Has Enabled A Mass Market Inflection Point
Navitas Has Enabled A Mass Market Inflection Point Mobile served as a pioneer and other markets are expected to reap the benefits at lower cost points Navitas GaN vs Silicon – $ Dollar Per Watt(1) How Navitas Enables Lower Cost $0.120 Navitas GaN $ / W Si $ / W Early Mover Advantage High yields and
Slide 15: Industry-Leading IP Position In GaN Power ICs
Industry-Leading IP Position In GaN Power ICs Mature and Comprehensive GaN Integrated Circuit Process Design Kit (PDK) Device Development / Library Circuit Development / Library ◼ 650 eMode power FET ◼ Logic gates and latch ◼ 12-40V eMode power FET ◼ Linear regulators ◼ 650V dMode power FET ◼ Compar
Slide 16: Growth In The World's Need For Efficient Power
Growth In The World’s Need For Efficient Power Data growth and climate change are driving a long-term secular need for GaN Connectivity Electrification Sustainability Mobile Consumer Enterprise EV / eMobility Renewables / Solar 5G Smartphone Shipments(1) (M) Smart Home Device Shipments(2) (M) Global
Slide 17: GaN ICs Can Potentially Displace A $13B Market
GaN ICs Can Potentially Displace A $13B Market GaN Opportunity Within Total Power Semiconductor TAM(1,2) GaN Power Semiconductor TAM(2) GaN Other (3) $13.1B $2.1B $150M Other 6% CAGR $724M EV / eMobility $9.0B $189M Renewables / Solar $139M Enterprise $293M Consumer (3) $2.1B 117% $575M Mobile CAGR
Slide 18: GaN: An Expansive Market Opportunity
GaN: An Expansive Market Opportunity 1MW+ GaN’s wide band gap EV Inverters Wind allows power 100kW Turbines Utility applications with voltages between EV On-board Chargers 80V – 1,000V to use Application Power & DC/DC Converters Solar smaller, more efficient 10kW String Traction chips, reducing cost
Slide 19: GaN is Positioned To Be The Future Of Mobile Charging
GaN is Positioned To Be The Future Of Mobile Charging Larger Mobile Screens And Batteries Need More Power Fast Mobile Universal Up to 3x more power Half the size and weight One charger for ALL your devices Up to 3x faster charging of traditional chargers One and Done!! Screen Size and Battery Size C
Slide 20: Leading Customers Adopting Navitas GaN
Leading Customers Adopting Navitas GaN Tier 1 OEMs Aftermarket Examples 75+ 150+ 90%+ GaN Chargers In GaN Chargers Mobile OEMs Designing 18M+ Zero In Development GaN ICs Shipped GaN Field Failures(1) Mass Production With Navitas GaN ICs (MP 2021, H1’22) © Navitas Semiconductor 2021 Note: Metrics as
Slide 21: Broad Adoption Of GaN In Consumer Electronics
Broad Adoption Of GaN In Consumer Electronics Devices need higher power in smaller, slimmer sizes • Ultra-thin LED TVs • Gaming systems • All-in-one PCs • Smart home GaN ICs make it possible • Up to 3x higher power density in the same form factor • 3x smaller and lighter • Up to 40% energy savings S
Slide 22: GaN ICs Could Save Data Centers $1.9B/Yr In Electricity
GaN ICs Could Save Data Centers $1.9B/Yr In Electricity(1) 44% of Data Center costs related to power (electricity, power & cooling) Typical TCO Structure of a Data Center(3) • We estimate GaN ICs can reduce electricity use by up to 10%(2) • Across all data centers, we estimate this could save >15 TW
Slide 23: GaN Is Positioned For The Future Of Solar
GaN Is Positioned For The Future Of Solar Solar energy adoption is driven by $ per watt Micro-inverters • Solar adoption driven by reducing hardware costs, increasing energy savings Opportunity • GaN ICs reduce solar inverter costs while increasing energy savings • Typical solar payback is in range
Slide 24: GaN Is Positioned For The Future Of Electric Vehicles
GaN Is Positioned For The Future Of Electric Vehicles EV demands faster charging and extended range DC/DC On-Board • Existing silicon on-board chargers are SLOW (up to ten hours for full charge) LV Battery Opportunity HV Battery Charger • Range anxiety is #1 limitation for EV adoption(1) Opportunity
Slide 25: GaN Addresses 10% of Net Zero CO2 Challenge
GaN Addresses 10% of Net Zero CO2 Challenge GaN Efficiency Reduces Emissions ...and Accelerates Adoption of Clean Technology (5) 4.6% ▪ Electricity demand is projected to double from 21 PWh to 42 PWh ▪ GaN is more efficient than Si at converting energy Renewable (3) electricity 40.4% 1.2 Gt ▪ Increa
Slide 26: GaN Collaborations Expected to Accelerate CO2 Reduction
GaN Collaborations Expected to Accelerate CO2 Reduction “The world is reaching the tipping point Public Sector beyond which climate change may become irreversible. If this happens, we risk denying present and future generations the right to a Global coordination healthy and sustainable planet – the
Slide 27: World-Class GaN Experts Leading The Revolution
World-Class GaN Experts Leading The Revolution Tenured Leadership With Over $4 Billion Power Semiconductor Revenue Generated and 300 Years Combined Experience(1) 3 of 4 Navitas Founders Have Worked Closely Together For Over 30 Years >20 Generations of Power Semiconductors $4B+ New Revenue Created(2)
Slide 28: Proven Board of Directors And Advisors
Proven Board of Directors And Advisors Gene Sheridan Dan Kinzer David Moxam Co-Founder Co-Founder & Founder & Managing & CEO CTO / COO Partner, Malibu IQ Brian Long Dipender Saluja Lip-Bu Managing Partner, Managing Director & Tan Atlantic Bridge Capital Partner, Capricorn Advisor Investment Group ©
Slide 29: Positioned For Rapid Multi-Market Expansion
Positioned For Rapid Multi-Market Expansion 18 Million Units First In-Box Shipped(1) with Mobile No Failures(2) First Charger High First Tier High Reliability Aftermarket (2021) Manufacturability 1 OEM (2020) E X P A N S I O N Demonstrated Mobile Demonstrated Customer Charger (2018) (2018) (2019) (2
Slide 30: Growth Strategy
Growth Strategy Market Technology Acquisition Expansion Innovation Opportunities EV / eMobility Multiple New Generations of Invest in Complimentary Technologies GaN Technology That Increase Power Semi Content In Solar / Energy Storage Targeted Applications Advanced Packaging of GaN ICs Acquire Syner
Slide 31: Diversified End Markets Drive Projected 94% Revenue CAGR
Diversified End Markets Drive Projected 94% Revenue CAGR ($ in mm) Diversified end markets Projected 94% 6-year CAGR $640 – Mobile includes phone, tablet and laptop, providing solid foundation and high growth base ✓ Significant near-term visibility from design Other(1) to validate technology and dri
Slide 32: Strong Revenue Visibility and Customer Pipeline Positions Navitas For Long-Term Growth
Strong Revenue Visibility and Customer Pipeline Positions Navitas For Long-Term Growth ($ in mm) Awarded(1) Qualified Opportunities(2) Notable Announced Customers Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 $12 $27 $69 ✓ Leading phone, tablet, notebook & aftermarket suppl
Slide 33: Summary Historical Financials and Projections
Summary Historical Financials and Projections Gross margin (%) EBITDA ($mm) (150%) (84%) (28%) 7% 16% 22% 25% Fast transition to new generation of products is driving 20%+ YoY cost reductions in 2021. $162 53% 55% 55% 50% 51% $102 44% 46% Q1’ 21 $50 33% $12 ($18) ($23) ($19) (1) FY2020 (1) FY2021 FY
Slide 34: Transaction Summary
Transaction Summary Transaction Overview Pro Forma Valuation ($mm, except per share data) – Total purchase price of $950mm – Implied purchase multiple of 5.2x 2023E revenue Total shares outstanding(2) 139.9 – Purchase multiple assumes 2023E revenue of ~$182.4mm – Transaction will be funded by $145mm
Slide 35: Comparable Company Selection
Comparable Company Selection Recent DeSPACs Recent Semiconductor IPOs Power Semiconductors Semiconductors LiDAR Next-Gen High Growth Mature Diversified ➢ Two most recent, regular- ➢ Emerging hardware technologies with significant growth inflection way semiconductor IPOs ➢ Direct product and applicat
Slide 36: Revenue Growth Benchmarking: Recent DeSPACs, Semiconductor IPOs and Power Semiconductors
Revenue Growth Benchmarking: Recent DeSPACs, Recent Semiconductor IPOs and Power Semiconductors CY2020E – CY2025E Projected Revenue CAGR CY2020E – CY2022E Projected Revenue CAGR Recent Semiconductor IPOs Power Semiconductors Next-Gen High Growth Mature Diversified Median: 20% Median: 22% Median: 11%
Slide 37: Trading Statistics: Recent DeSPACs, Recent Semiconductor IPOs and Power Semiconductors
Trading Statistics: Recent DeSPACs, Recent Semiconductor IPOs and Power Semiconductors EV / CY2023E and CY2025E Projected Revenue EV / CY2022E Projected Revenue Recent Semiconductor IPOs Power Semiconductors Next-Gen High Growth Mature Diversified Median 2022E: 7.3x Median 2022E: 13.4x Median 2022E:
Slide 38: Valuation Summary
Valuation Summary - Trading multiples based on power semiconductor comparable players(1) at 9.0x – 13.0x 2022E projected revenue. We apply the 2023 projected revenue metric and discount at a 20% rate - For reference, recent early stage / high growth semiconductor deSPACs(2) are trading at a median o
Slide 39: Thank You
Efficiency» Su: meepility T hank You. ’
Slide 40: Risk Factors Related to Navitas
Risk Factors Related to Navitas Important Disclosures The list below of risk factors has been prepared in connection with the proposed business combination of Live Oak Acquisition Corp. II (“LOKB”) and Navitas Semiconductor Limited (the “Business Combination”). All references to “Navitas,” “we,” “us
Slide 41: Risk Factors Related to Navitas (Cont'd)
Risk Factors Related to Navitas (Cont’d) Important Disclosures RISKS RELATED TO NAVITAS’ BUSINESS (CONT’D) ▪ The success of some of Navitas’ products are dependent on Navitas’ customers’ ability to develop products that achieve market acceptance, and Navitas’ customers’ failure to do so could negati
Slide 42: Risk Factors Related to Navitas (Cont'd)
Risk Factors Related to Navitas (Cont’d) Important Disclosures RISKS RELATED TO NAVITAS’ BUSINESS (CONT’D) ▪ Due to Navitas’ limited operating history, Navitas may have difficulty accurately predicting its future revenue and appropriately budgeting its expenses. ▪ While Navitas intends to continue t
Slide 43: Risk Factors Related to Navitas (Cont'd)
Risk Factors Related to Navitas (Cont’d) Important Disclosures RISKS RELATED TO NAVITAS’ BUSINESS (CONT’D) ▪ The failure of Navitas to comply with the large body of laws and regulations to which it is subject or to successfully develop and implement policies, procedures and practices intended to fac
Slide 44: Risk Factors Related to Navitas (Cont'd)
Risk Factors Related to Navitas (Cont’d) Important Disclosures RISKS RELATED TO THE BUSINESS COMBINATION ▪ Our ability to successfully effect the Business Combination and the combined company’s ability to successfully operate the business thereafter will be largely dependent upon the efforts of cert