Arbe Robotics Ltd. · NASDAQ:ARBE
Arbe Robotics — SPAC Merger (March 2021)
41 slides from Arbe Robotics's SPAC merger presentation, Mar 19, 2021
Slide 1: Radar Revolution. Delivered. Investor Presentation
Private & Confidential Radar Revolution. Delivered. Investor Presentation March 2021
Slide 2: Disclaimer
D isc l aimer 2 This presentation (the “Presentation”) is for information purposes only and has been prepared by Arbe Robotics Ltd. (“Arbe”) and Industrial Tech Acquisitions, Inc. (“ITAC”) to assist interested parties in making their own evaluation with respect to the proposed business combination b
Slide 3: Disclaimer (cont'd)
Disclaimer (cont ’ d) 3 U s e o f P r o j ec t i o n s This Presentation contains financial forecasts with respect to, among other things, Arbe’s unit sales, revenue, gross profit, free cash flow, as well as the price for its products and the number of units sold and certain ratios and other metrics
Slide 4: Industrial Tech Acquisitions Overview
Industrial Tech Acquisitions Overview ▪ ITAC is a Nasdaq - listed SPAC (NASDAQ: ITAC) which comple t e d i t s $ 7 5 million IPO in S e pt e mb e r 2 0 2 0 ▪ Th e IT A C t e am is compri s e d o f e xperi e n c e d v e n t u re capital and technology industry professionals with significant experienc
Slide 5: Transaction Overview
Overview ▪ Business combination between Arbe and ITAC, a publicly - traded special purpose acquisition company T r a nsac t ion Summary ▪ Equity value of $525 million pre - money and $723 million post - money; existing Arbe shareholders to rollover equity holdings in the combination with ITAC, resul
Slide 6: Arbe Leadership
D r . N o a m A r k i n d Co - Founder, CTO 10 + years o f e xperi e n ce le adin g R & D t e ams. P h .D . in Applied Ma t h e ma t ics fr o m t h e Robotics Lab at Weizmann In s t it u t e o f S ci e n ce Danny Klein CFO 2 5 + years o f e xperi e n ce in leading financial roles at Taptica, Biodata
Slide 7: Company Overview
Ar b e is d riving a Ra d a r Revo l u tion, p a ving the w a y f o r an a utonom o us f u ture, utilizing an out stan d ing, tr uly safe, commercially viable, 4D Imaging technology Company Overview
Slide 8: Arbe at a Glance
Arbe at a Glance 26 Pa r tne r shi p s with Glob a l Tier 1 s an d Auto / I n d ustr i al OEMs 1 $312M i n 202 5 E Proje c ted Revenue $2.8B i n 202 5 E Projected O r d e r Book 2 $11B i n 202 5 E Projected Automotive Rad a r TAM 3 Product The world’s first ultra high - resolution radar solution on
Slide 9: History of Arbe
Launch of ra d a r f r o n t - e n d sy st em (RF c h ip se t ) a u t o m oti v e radar antenna Init i a l A ut o m oti v e prototype prototype Syst ems w it h Arbe chipset complete production Laun ch of Laun ch of h ig h - d e n sit y 4 D Imag ing Radar p r o c e ssor chip Founded N ov. 2 0 1 5 V e
Slide 10: The Automotive Sensor Gap
The Automot i ve Sensor Gap Current Radars are a Hazard ▪ Unable to me e t L e vel 2 + s afe t y requirements ▪ No elevation ▪ No detection of stationary objects ▪ Low - resolution – can’t separate objects near each other ▪ No pi ctu r e – on l y < 50 t a rg e ts Sensors on the market today are not
Slide 11: The Automotive Sensor Gap - Resolved
The Automotive Sensor Gap - Resolved Arb e ’ s 4 D I m a g ing Ra dar Provi d e s U lt r a - Hi g h, Camera - Like Resolution, and All - Weather, High - Reliability Performance Execution in the most challenging corner cases Reliable detection of stationary objects Dependable in various environmental
Slide 12: Hype vs. Reality
Hype vs. Reality ▪ Radar and camera are the two types of mainstream automotive sensors utilized today ▪ When used together, 4 D Imaging Radar and cameras provide uncompromised safety and comfort for Level 1 – Level 3 vehicles, as well as full autonomy ▪ So me OEMs might c h o ose to ad d a L I DAR s
Slide 13: Radar Opportunity in Automotive is Here & Now
Radar Opportunity in Automotive is “ Here & Now ” Level 4 - 5 L ev e l 3 L ev e l 2 # of S enso r s per Vehicle 1 Radar 3 3 - 5 +5 6 - 10 Camera 2 ≤4 6 - 8 6 - 8 LIDAR 0 0 0 - 1 1 - 3 % of C ars i n 2025 E 1 25% 65% 10% <1% Automot i ve Radar T AM 2025E 1 $3B $7B $1B $0.1B L ev e l 1 Autonomy Level
Slide 14: Radar's Superior Cost Performance Drives Scalability
$1,050 $2,100 $150 $100 $400 $345 $600 $900 $1,000 $6,000 Radar ’ s Superior Cost Performance Drives Scalability 1 Represents average sensor costs per level of autonomy S our c e : A r b e es t i m a t es $ 50 x 3 $ 50 x 2 -- $ 11 5 x 3 $ 10 0 x 4 -- $ 1 20 x 5 $ 1 50 x 7 $ 1 , 0 00 x 1 $ 1 50 x 6 $
Slide 15: 4D Imaging Radar – Fundamental & Complementary to Camera
4 D I ma ging Radar Conventional Radar C am e r a L I DA R Long - range, high - resolution, wide field of view A ll wea t her and lighting Affordable, power efficient Long - range, low - resolution, limited field of view, false alarms A ll wea t her and lighting A ff o rdabl e Medium - range, color,
Slide 16: First Mover & Market Leader in 4D Imaging Radar
First Mover & Market Leader in 4D Imaging Radar ▪ Functional in various weather and lighting conditions ▪ Long - range and wide field of view ▪ 4 D ultra high - re s olution – 1 2 x be t t e r t han t he compe t ition ▪ Mass production pricing of $100 - $150 ▪ Mutual interference avoidance patented
Slide 17: Arbe's 4D Imaging Radar in Action
Arbe ’ s 4D Imaging Radar in Action 17
Slide 18: Roadmap: Radar-on-Chip Solution
Roadmap: Radar - on - Chip Solution ▪ F u l l sol u t i on on a s i ng l e die ▪ Next generation corner radar and safety product ▪ Highest resolution low - cost radar on the market ▪ 8x8 RF + Arbe’s core processing algorithms ▪ The result: ▪ Best - in - class ADAS applications – cruise control, emer
Slide 19: Roadmap: A Single Chip to Rule Them All
Roadmap: A Single Chip to Rule Them All ▪ Enhancing Everest ▪ Camera object classification ▪ Real - time imaging radar fusion ▪ The result: ▪ Ut i li za t i on i n Le ve l 3 ve h i c l es w i th o n l y rada r and camera ▪ Much better performance and safety ▪ Significantly lower cost ▪ Arbe’s chipse
Slide 20: Commercial Overview
Commercial O verview
Slide 21: Significant Commercial Traction with Leading OEMs & Tier Partners
Significant Commercial Traction with Leading OEMs & Tier 1 Partne r s Pu r cha s e Orders 3 A Sample Orders 2 6 OEM s / Robot axi s in Advanced Discussions for POs in H 1 ’ 2 1 E 10 Of t h e 10 l ea di n g radar T i er 1 s, 5 0 % have se l e c ted Arbe and 25% are in advanced evaluations Valeo, Hira
Slide 22: Acceleration across multiple car models could be worth 10x more
Acceleration across multiple car models could be worth 10x more Pre - Production Contract for Next - Gen Radars Leading W e s t e r n , G l o b a l Auto OEM Key Partner s hip W i n W i th a Leading Tie r 1 For a Large, Global Automotive OEM $300M+ Proje c ted Revenue Leading E u r o p e a n T i e r
Slide 23: Landmark Partnership with Qamcom
Landmark Partnership with Qamcom $ 15 0 M+ 2020 - 2025E Proje c ted Revenue “ Arbe’s 4D Imaging Radar Solution has the potential to be the primary sensor candidate for the sensor suite of any autonomous and semi - autonomous applications and next generation perception platforms. ” - Joint Press Rele
Slide 24: Large & Growing Radar TAM Opportunity
$4B $6B $2B $4B $ 1 1B 2 0 20E 2 0 25E Large & Growing Radar TAM Opportunity Industrial 2 0 2 5 E T A M 1 $ 4 B Automo tive 202 5 E TA M 1 $ 11 B $13B Aerospace & D efe nse 202 5 E TAM 1 C AG R : 21% C AG R : NM C AG R : 8% 1 I nd us t r y a nd Wa l l S t r eet r esear c h es t i m a t es R ada r 1
Slide 25: High-End Radar Market is Dominated by a Handful of Technology Leaders
High - End Radar Market is Dominated by a Handful of Technology Leaders Automotive 2 0 2 5 E T A M Automot i v e 2 0 2 0 E T A M Next - Gen Technology C o m p e t ito r s $ 4 B NM $ 4 B $ 11 B $ 2 B $6 B 7 + Players 3 + Players 4 D / I m a gi ng R a d a r Hi g h Re s o l ut i on L I DAR Vi s i o n P
Slide 26: Leading Performance vs. Chip Providers
Leading Performance vs. Chip Providers Channels 4 D Processor Availability Compute Power A ff o rdabi l i t y Strong Technology & Portfolio Lead Over Competitors 26 S our c e: A r b e ’ s a s s es s m ent of c o m p e t i t i ve l a nd s c a p e
Slide 27: Price & Performance vs. Competitors
Price & Perfo r m a nce v s . Com p e t i t or s $ 2 50 200 0 + < 50 0 Miles Apart from Competitors 1 9 2 ( $ 220 ) 1 9 2 ( $ 1 9 0 ) 4 8 ($ 9 5 ) Channels 2304 + Tier 1s ($150) $ 0 Price 288 ( $ 100 ) 48 ($160) 27 S our c e: A r b e ’ s a s s es s m ent of c o m p e t i t i ve l a nd s c a p e
Slide 28: Financial Overview
—— arbe Financial Overview
Slide 29: Robust Partner Funnel Supported by Long-Term Revenue Strategy
10 L e a d ing OEM Evaluations 5 Tier 1 Design Ins 3 POs Robust Partner Funnel Supported by Long - Term Revenue Strategy 26 E n g a g e m e n t s w it h OE M s / Tier 1 s 26 A Sa mp le Ord e rs 2 0 2 1 E 2 0 22 E 2 0 2 3 E 2 0 2 4 E 2 0 2 5 E 2 0 2 6 E 2 0 2 7 E 2 0 2 8 E 2 0 2 0 Early Adopters Arbe
Slide 30: Revenue Curve Reflects Growing Market Opportunity & Pipeline
Automotive & Robotaxis Autonomous Ground Vehicles Industrial & Non - Automotive $0M $1 0 0 M $20 0 M $30 0 M $40 0 M $50 0 M $60 0 M 2021E 2022E 1 Based on Arbe’s estimates of projected contract pipeline at the end of 2025 202 3 E 202 4 E 202 5 E $312M 2025E Revenue 6 3 % 3 1 % Revenue Curve Reflect
Slide 31: Exceptional Growth from Current Customer Engagements
$8 $13 $76 $168 $312 2021E 2022E 2023E 2024E 2025E 6 31 Note: Financial projection summary provided in the appendix S ou rc e: A rb e ’ s p r o j ec t i on s 50 396 1,296 2,8 09 2021E 2022E 2023E 2024E 2025E Exceptional Growth from Current Customer Engagements Key Highlights ▪ Unit forecasts in the
Slide 32: Attractive Margin Profile Underpinning Growth Profile
1 F re e c a sh f l ow = E B I T D A l es s c a p i t a l exp en d i t u res Attractive Margin Profile Underpinning Growth Profile $6 $7 $52 $112 $209 68% 66% 67% 2021E 2022E 2023E 2024E 2025E G r o s s Profit & Margin ( $ in M i l l i o n s ) $12 $55 $131 16% 33% 42% ($20) 2021E ($22) 2022E 2023E 2
Slide 33: Key Investment Highlights
Key Investment Highlights 1 I nd us t r y a nd Wa l l S t r eet r esear c h es t i m a t es 2 Partnerships include advanced evaluations, A Sample orders, and development discussions in various stages of RFI/RFQ 3 Based on Arbe’s estimates of projected contract pipeline at the end of 2025 33 Propriet
Slide 34: Transaction Overview
—— arbe Transaction Overview
Slide 35: Benchmarking Arbe's Operating Metrics vs. Peers
8 5 .3 % 66 . 0 % 1 0 0. 2 % 207.7% 145.1% 4 3 .6 % 9 3 .6 % 1 0 3.6 % 1 0 .7 % 1 7 .4% 4 6 . 2 % 5 6 .3 % 2 9 .4 % 1 3 . 6 % 5 8 .9 % 9 . 1 % 1 9 .2 % 5 7 .8 % 6 4 .0 % 6 3 .0 % 5 1 .6 % 5 9 .5 % 5 9 .2 % 8 4 . 4 % 66.1% 60.5% 7 5 .6 % 3 6 . 6 % 22 .2 % Benchmarking Arbe ’ s Operating Metrics vs. P
Slide 36: Benchmarking Valuations Across Peer Group
4 . 4 x 1 9 .6 x 2 3 .0 x 8 . 3 x 6 . 8 x 7 . 3 x 2 . 8 x 6 . 0 x M edi an: 33 . 7 x 44.8x N M 22 .7 x NM NM 1 . 8 x 3 . 3 x 1 0 .1 x 3 . 3 x 2 . 1 x 2 . 2x 1 . 0 x 3 . 3 x 1 5 .1 x 1 2.6 x 1 3 .4x Median: 20.4x 24.5x 1 6 . 3 x Benchmarking Valuations Across Peer Group 1 Assumes Arbe pre - money equ
Slide 37: Transaction Represents an Attractive Discount to Peers
$573 Post - Money Enterprise Value $1,889 $2,204 Implied Current Enterprise Value $3,917 ($ in Millions) $4,570 Implied Future Enterprise Value Transaction Represents an Attractive Discount to Peers 86% Discount 72% Discount 3 0 - 3 5 x 202 5 E E B ITD A 3 0 - 3 5 x 2025E E B ITD A Discount Rate: 20
Slide 38: Overview of Business Combination
Existing Arbe Shareholders 72 . 6 % / 52 . 500 PIPE Investors 13.8% / 10.000 Spo nsor S h ares 2.6% / 1.905 Existing IPO Shareholders ( e x cl. W arr ants) 10.7% / 7.775 Underwriter IPO Shares 0.2% / 0.150 Overview of Business Combination 1 Cash in trust value as of 9/30/2020 and assumes no redempti
Slide 39: Appendix
Appendix
Slide 40: Financial Projection Summary
Financial Projection Summary 40 1 Un a u d i t ed 2 Includes an estimated $151 million in cash to Arbe’s balance sheet from the combination with ITAC (cash - in - trust of $76 million and estimated PIPE proceeds of $100 million, less estimated fees and transaction expenses of $25 million) Source: Ar
Slide 41: Thank You
Private & Confidential Radar Revolution. Delivered. Tha n k You