Tempo Automation Hldgs Inc · OTC:TMPOQ
Tempo Automation Hldgs — Tempo Automation — SPAC Merger (September 2022)
40 slides from Tempo Automation Hldgs's SPAC merger presentation, Sep 14, 2022
Slide 1: Software-Accelerated Electronics Manufacturing
Software-Accelerated Electronics Manufacturing TRANSFORMING PRODUCT DEVELOPMENT WITH SOFTWARE AND AI 1
Slide 2: Disclaimer
Disclaimer This presentation (this “Presentation”) is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination between Tempo Automation, Inc. (collectively with its subsidiaries “Tempo”
Slide 3: Disclaimer (continued)
Disclaimer (continued) Additional Information and Where to Find It Additional information about the Proposed Business Combination, including a copy of the merger agreement and investor presentation, was provided in a Current Report on Form 8-K filed by ACE with the SEC on October 14, 2021, and is av
Slide 4: Disclaimer (continued)
Disclaimer (continued) Use of Projections This Presentation contains projected financial information with respect to Tempo and ACE. The projected financial information constitutes forward-looking information, and is for illustrative purposes only and should not be relied upon as necessarily being in
Slide 5: Agenda
Agenda OVERVIEW MARKET FOR PROTOTYPE & ON-DEMAND ELECTRONICS MANUFACTURING TEMPO PLATFORM FINANCIALS Q&A SEPTEMBER 2022 5 5
Slide 6: The Tempo Thesis Remains the Same – Significant Opportunity
The Tempo Thesis Remains the Same – Significant Opportunity Thesis: Led by an established team of industry veterans, Tempo Automation has developed a proprietary software- accelerated electronics manufacturing model. It redefines the customer journey, accelerates their time-to-market, and transforms
Slide 7: Tempo Automation Overview
Tempo Automation Overview Software-accelerated electronics manufacturing, transforming product development 1 for the world’s innovators in a $290B market1 Proprietary software platform, with AI that learns from every order, enhances the 2 customer’s electronic product development journey and acceler
Slide 8: Leadership: Strong Record of Value Creation
Leadership: Strong Record of Value Creation MANAGEMENT JOY WEISS RYAN BENTON RALPH RICHART KEITH TAINSKY PRESIDENT & CEO CHIEF FINANCIAL OFFICER CHIEF TECHNOLOGY & VP FINANCE AND BUSINESS VP DATA CENTER, ANALOG CFO/CEO, EXAR MANUFACTURING OFFICER OPERATIONS DEVICES CEO, DUST NETWORKS (ACQ BY MAXLINE
Slide 9: The Product Development Journey is Iterative
The Product Development Journey is Iterative, Whether the End Goal is 100 units/year or 1M units/year The average electronics product goes through 14 iterations before it gets to market.1 ON-DEMAND PRODUCTION < 1000 UNITS TEMPO ON-RAMP TO PRODUCTION TEMPO 1st Order 2nd Order Order Order Order Nth Or
Slide 10: High-Growth Verticals Require More and More Complex Electronics
High-Growth Verticals Require More and More Complex Electronics SPACE SEMICONDUCTOR AVIATION & DEFENSE MEDICAL DEVICE INDUSTRIAL & ECOMMERCE INDUSTRY SIZE AND GROWTH RATE Expected to reach Estimated to reach Medical Device industry to be Industrial IoT market to reach Set to grow from $362B by 2025
Slide 11: Secular Tailwinds for Onshoring Electronics
Secular Tailwinds for Onshoring Electronics SEPTEMBER 2022 11
Slide 12: A Highly Manual Status Quo Slows the Development Process
A Highly Manual Status Quo Slows the Development Process CAD Software + Design Files Sent through Various Methods Reviewed by Humans Produced Labor-Intensively DISCONNECTED PROCESS SLOW IN AN INDUSTRY UNPREDICTABLE QUALITY UNDERSERVED BY TECHNOLOGY OPAQUE UNRELIABLE SEPTEMBER 2022 12
Slide 13: The Competition is Primarily Small, Owner-Operated Businesses
The Competition is Primarily Small, Owner-Operated Businesses Volume manufacturers often refer INTERNATIONAL DOMESTIC out prototyping and on-demand MARKET SIZE 1 MARKET SIZE 1 production business COMPANIES WITH 1,000+ UNITS VOLUME PRODUCTION $1.3T $60B 16% $500M+ REVENUE <1,000 UNITS 7% COMPANIES WI
Slide 14: Tempo’s Software Platform Helps Companies Iterate Faster
Tempo’s Software Platform Helps Companies Iterate Faster STATUS QUO APPROACH 1 TEMPO APPROACH 1 : AUTOMATED, LIGHT-TOUCH, QUICK-TURN, HIGH-QUALITY, SOFTWARE-POWERED MANUFACTURER AUTOMATED QUOTING AUTOMATED MANUFACTURABILITY REVIEW AUTOMATED PROCUREMENT AUTOMATED SETUP & MANUFACTURING SEPTEMBER 2022
Slide 15: Case Studies: Speed and Quality
Case Studies: Speed and Quality EXAMPLE ITERATION TIME: EXAMPLE TIME TO MARKET: GE HEALTHCARE TOP 5 SPACE, AVIATION, AND DEFENSE COMPANY 1 STATUS QUO UP TO 5 WEEKS 2 STATUS QUO 22-24 MONTHS 2 USING TEMPO 5 DAYS 2 USING TEMPO 11 MONTHS 2 “Being able to fail faster had a direct impact on our timeline.
Slide 16: Tempo’s Platform Streamlines Electronics Product Realization
Tempo’s Platform Streamlines Electronics Product Realization 1 2 Front-end Portal Engages Engineers and Supply Chain FRONT-END CUSTOMER BACK-END 1 Professionals Frictionless quoting, ordering, and patent-pending1 complex data ingestion via secure cloud- PORTAL SOFTWARE MANUFACTURING based interface
Slide 17: Tempo Weaves a Digital Thread, From First Touch to Delivery
Tempo Weaves a Digital Thread, From First Touch to Delivery Customer journey connected by Patents underpin algorithms that analyze design, continuous digital thread, initiated determine component availability, and deliver quote as soon as design is uploaded TEMPO Capture & Preserve Design File Uploa
Slide 18: Tempo Platform Underpins Logistics
Tempo Platform Underpins Logistics Automated analysis confirms Components ordered via integrated Factory programmed for assembly manufacturability of design interface with vendors Manufacturability Check & Network of Pre-qualified / Parts Check-In, Issue Resolution Audited Raw Material Vendors Machi
Slide 19: Tempo Visualizer: Print Preview + Spellcheck for Electronics
Tempo Visualizer: Print Preview + Spellcheck for Electronics Limited Stock Tombstone Issue MPN 06031A100FA12A On this placement for: 2 Required Rev A: 10% of boards 1 Available Rev B: 5% of boards REFDES C22, C33 Rev C: 1% of boards AVAILABLE LIMITED STOCK END OF LIFE OUT OF STOCK Image is illustrat
Slide 20: Tempo Platform Streamlines Assembly
Tempo Platform Streamlines Assembly Automated monitoring of manufacturing Automated process Tracked, on-time shipment execution data drives higher yields confirms quality product Assembly Quality Assurance Delivery SEPTEMBER 2022 20
Slide 21: Tempo Roadmap Redefines the Manufacturing Process
Tempo Roadmap Redefines the Manufacturing Process STATUS QUO TEMPO TEMPO AI MANUAL PROCESS AUTOMATED PROCESS INTELLIGENT PROCESS DATA Inconsistent, Incomplete Data Connected Information PROCESSES Disconnected Processes Digital Thread • Continuous DATA-DRIVEN • Bi-Directional AI-DIRECTED PROCESSORS H
Slide 22: Many Struggle to Navigate Today’s Electronics Supply Chain
Many Struggle to Navigate Today’s Electronics Supply Chain INVENTORY VISIBILITY SHRINKING DELAYS IN RESOLUTION DUE TO SIGNIFICANT PRICE INCREASES NON-TRADITIONAL DISTRIBUTORS FROM YEARS TO DAYS MANUAL SOURCING AND POOR AND VOLATILITY MAY HAVE AVAILABILITY BUT BRING COMMUNICATION TOOLS QUALITY RISK S
Slide 23: Tempo’s Proprietary Inventory Management System
Tempo’s Proprietary Inventory Management System Management of parts inventory is integral to the Tempo platform. We have combined state of the art smart racks with internally developed software tools. Provides instant views to stock levels, allows for patent-pending1 dynamic BOM allocation and stock
Slide 24: Tempo’s Platform for Future Potential Acquisition Integration
Tempo’s Platform for Future Potential Acquisition Integration TOP LINE BENEFITS TOP LINE BENEFITS POST-ACQUISITION POST-ACQUISITION Customer Portal helps increase Increased speed and consistent account growth and share of wallet quality retains customers FRONT-END CUSTOMER BACK-END MANUFACTURING TEM
Slide 25: Financials
Financials ‘[Tremeo
Slide 26: Detailed Transaction Overview
Detailed Transaction Overview SUMMARY ILLUSTRATIVE PRO FORMA CAPITALIZATION5,6 • In connection with the Proposed Business Combination with ACE Convergence Acquisition Corp. and Tempo Min. Cash Scenario1 No Redemptions Scenario2 Automation, Inc. (“Tempo”). Share Price $10.00 $10.00 • Transaction valu
Slide 27: Financial Projections
Financial Projections Tempo Stand-Alone ($M) 2021A 2022E 2023E 2024E 2025E Total Revenue $17.4 $12.0 $17.3 $26.0 $36.4 1, 3 Non-GAAP Gross Profit 3.1 3.1 8.4 13.7 19.7 2, 3 Adjusted EBITDA (25.0) (20.1) (5.4) 0.7 6.6 • Highly diverse customer base spanning numerous end-markets. Significant amount of
Slide 28: Q&A
Q&A
Slide 29: Appendix
Appendix
Slide 30: Reconciliation to Non-GAAP Gross Profit & Adjusted EBITDA
Reconciliation to Non-GAAP Gross Profit & Adjusted EBITDA 1 ($ IN MILLIONS) ($ IN MILLIONS) FY2021A FY2021A Gross Profit $2.8 Income (loss) from operations ($33.3) Adjustments to GAAP amounts Adjustments to GAAP amounts Depreciation and amortization - Depreciation and amortization 2.3 Stock-based co
Slide 31: Risk Factors
Risk Factors Risks Relating to Tempo’s Business and Industry • We are an early-stage company with a history of losses. We have not been profitable historically and may not achieve or maintain profitability in the future. • Our limited operating history and rapid growth makes evaluating our current b
Slide 32: Risk Factors (continued)
Risk Factors (continued) Risks Relating to Tempo’s Business and Industry (continued) • Many of our customers and potential customers operate in industries that experience rapid technological change resulting in short product life cycles and as a result, if the product life cycles of our customers sl
Slide 33: Risk Factors (continued)
Risk Factors (continued) Risks Relating to Tempo’s Business and Industry (continued) • Our industry routinely experiences cyclical market patterns and our services are used across different end markets. A significant downturn in the industry or in any of these end markets could cause a meaningful re
Slide 34: Risk Factors (continued)
Risk Factors (continued) Risks Related to the Business Combination and ACE (continued) • The proposed Business Combination could disrupt Tempo’s relationships with its customers, suppliers, business partners and others, as well as its operating results and business generally. • Compliance obligation
Slide 35: Risk Factors (continued)
Risk Factors (continued) Risks Related to the Business Combination and ACE (continued) • The public stockholders of ACE will experience immediate dilution as a consequence of the issuance of common stock as consideration in the Business Combination and the PIPE Investment and due to future issuances
Slide 36: Risk Factors (continued)
Risk Factors (continued) Risks Related to the Business Combination and ACE (continued) • If, after ACE distributes the proceeds in the trust account to its public shareholders, ACE files a winding-up or bankruptcy petition or an involuntary winding-up or bankruptcy petition is filed against it that
Slide 37: Risk Factors (continued)
Risk Factors (continued) Risks Related to the Combined Company • Concentration of ownership among the combined company’s executive officers, directors and their affiliates may prevent new investors from influencing significant corporate decisions. • If the Business Combination’s benefits do not meet
Slide 38: Risk Factors (continued)
Risk Factors (continued) Additional Risks Related to Ownership of the Combined Company Stock Following the Business Combination and the Combined Company operating as a Public Company (continued) • ACE is currently an emerging growth company and a smaller reporting company within the meaning of the S
Slide 39: Risk Factors (continued)
Risk Factors (continued) Risks if the Domestication and the Business Combination are not Consummated • If we are not able to complete the Business Combination by October 13, 2022, and if ACE is not able to complete another business combination by then, in each case as may be further extended pursuan
Slide 40: WWW.TEMPOAUTOMATION.COM
WWW.TEMPOAUTOMATION.COM 42