Indie Semiconductor, Inc. · NASDAQ:INDI
Indie Semiconductor — SPAC Merger (December 2020)
48 slides from Indie Semiconductor's SPAC merger presentation, Dec 15, 2020
Slide 1: Investor Presentation | December 2020
1 Investor Presentation | December 2020
Slide 2: Disclaimer
DISCLAIMER 2 Confidentiality The information in this presentation is highly confidential. The distribution of this presentation by an authorized recipient to any other person is unauthorized. Any photocopying, disclosure, reproduction or alteration of the contents of this presentation and any forwar
Slide 3: Disclaimer
DISCLAIMER 3 A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward - looking statements. These factors include, but are not limited to: the inability to complete the transactions contemplated by the proposed business combination; the ina
Slide 4: Disclaimer: Industry and Market Data
DISCLAIMER Industry and Market Data In this presentation, Thunder Bridge and indie rely on and refer to information and statistics regarding the sectors in which indie competes and other industry data . Thunder Bridge and indie obtained this information and statistics from third - party sources, inc
Slide 5: Thunder Bridge II and indie Key Presenters
THUNDER BRIDGE II AND INDIE KEY PRESENTERS • Prior to co - founding indie, Executive roles at Axiom, Skyworks/Conexant; early career in engineering, sales and marketing • Developed Axiom into the worldwide leader in CMOS PAs – sold to Skyworks 2009; 500M+ units shipped, 100% earn - out achieved • Bo
Slide 6: Thunder Bridge Acquisition II Overview
THUNDER BRIDGE ACQUISITION II OVERVIEW Gary Simanson President, CEO, Director • Thunder Bridge Acquisition II, Ltd. (“THBR”) is a NASDAQ listed SPAC which completed its $345M IPO in August 2019 • Management team comprised of long - term oriented, results driven investors and advisors, with a breadth
Slide 7: Investment Thesis
INVESTMENT THESIS 7 T r an s a c t i on Accelerates Roadmap and Drives Substantial Growth & Profitability Next - Ge C o m p le x n Automotive Semiconductor and Software Platform - Solving the Most and Demanding Challenges Well Positioned in Massive Secular Growth Market with High - Growth, Margin -
Slide 8: Transaction Summary
TRANSACTION SUMMARY 8 • Highly attractive entry multiple relative to public peers and recent transactions based on the opportunity to invest at the inflection point of growth TRANSACTION PARAMETERS • Transaction underwrites a highly visible financial plan based on established customer contracts with
Slide 9: Empowering the Autotech Revolution
Empowering the Autotech Revolution
Slide 10: The Next Generation Automotive Platform
THE NEXT GENERATION AUTOMOTIVE PLATFORM 1 0 MASSIVE MARKET OPPORTUNITY x $33B and rapidly growing TAM supported by multiple automotive megatrends x Solution portfolio enabling the highest growth automotive semiconductor applications x Incumbent consolidation creating enormous opportunities in predic
Slide 11: Auto Semi Market Is at an Inflection Point
$9 $1 4 $4 $13 $ 2 $8 $ 1 $3 $ 1 0 $ 5 $ 0 $ 2 0 $ 1 5 $ 4 0 $ 3 5 $ 3 0 $ 2 5 2 0 2 0 2 0 2 5 AUTO SEMI MARKET IS AT AN INFLECTION POINT… $ 0 11 $ 1 0 $ 2 0 $ 3 0 $ 4 0 $ 5 0 $ 6 0 $ 7 0 2 0 2 0 2 0 2 5 $1 6 $3 8 CAGR 33% CAGR 24% CAGR 11% C A G R 19% User E x p e r i ence Safety S y ste m s Electr
Slide 12: Driven by Silicon Content Gains
…DRIVEN BY SILICON CONTENT GAINS T O D A Y T O MOR R O W FU T U RE Sensing CPV (1) $160 $350 $1 , 7 5 0 Compute CPV (1) $150 $625 $2 , 4 5 0 Signal & Power CPV (1) – $310 per vehicle – $975 per vehicle $200 $4,000 per vehicle Source: Wall Street Research CPV = Content per Vehicle Creates Significant
Slide 13: The Autotech Partner to Everyone
THE AUTOTECH PARTNER TO EVERYONE …indie is Standard and Partner Agnostic 13 In Pursuit of the Uncrashable Car…
Slide 14: Demonstrated Scalability
DEMONSTRATED SCALABILITY 0 14 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 x Field proven x Already shipped >100M devices into Automotive Tier 1s x indie increasing OEM penetration and content per vehicle CUMU
Slide 15: Superior Solutions Validated by Leading Tier 1s
SUPERIOR SOLUTIONS VALIDATED BY LEADING TIER 1S $ 0.0 $ 0.5 $ 1.0 $ 1.5 $ 2.0 STRATEGIC BACKLOG* $B $2.5 2 0 0 9 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 1 5 * - Strategic backlog as defined on page 3 of the presentation “Disclaimer” pages
Slide 16: Competitive Differentiation Drives OEM Penetration
COMPETITIVE DIFFERENTIATION DRIVES OEM PENETRATION KEY COMPETITIVE DIFFERENTIATORS x Best - in - class mixed signal SoC solutions x Leveraging manufacturing technologies and proprietary packaging techniques to drive integration up and cost down x Innovative product roadmaps x Reliable / geographical
Slide 17: Auto Design Cycle Creates High Barriers to Entry
* - Production Part Approval Process ** - Strategic backlog as defined on page 3 of the presentation “Disclaimer” pages Long Courtship Followed by Development Cycle Followed by Locked in Production Horizon Tier 1 Approval Qual and Ramp - up Production (Recurring) Quality and Purchasing 1 - 1.5 years
Slide 18: Leading Tier 1 Case Study: Land and Expand
LEADING TIER 1 CASE STUDY: “LAND AND EXPAND” 1 8 REPEAT DESIGN WINS • First Product : Higher Performance Wireless Audio - Advanced signal path techniques • Second Product : Single Chip CarPlay Solution - Proprietary solution to eliminate down - to - up Hub • Third Product : Multi - coil Wireless Cha
Slide 19: Capitalizing on Disruptive Auto Megatrends
ADAS / AV 19 U X Connectivit y E V CAPITALIZING ON DISRUPTIVE AUTO MEGATRENDS
Slide 20: Exposure to Multiple Secular Growth Drivers
• Step - function increase in safety application requirements • AI acceleration is poorly serviced by incumbents • OEM desire to monetize data • Platform – “the next smart phone” • Consumers demand UX to mirror their mobile device • Replacement cycle now driven by UX not torque and horsepower • Gove
Slide 21: Enabling the Circle of Safety
1. ENABLING THE CIRCLE OF SAFETY 21 “It pahks itself” Shipping Ult r asound Solutions Won / Pipeline System Basis Chips FMCW LiDAR Edge Processors Hyundai Super Bowl LIV ad featuring “Park Assist” feature, aired February 2, 2020 indie supporting second generation park assist at Hyundai
Slide 22: indie FMCW LiDAR Integration
1. INDIE FMCW LIDAR INTEGRATION AI PROCESSOR O P TIC AL ENGINE Laser Driver + O p t o e lec tr o n ic Front - end SCENE S CAN N ER MIXED SIGNAL PROCESSOR SOC Software Defined Data Converters + DSP + High Speed IF POWER MANAGEMENT Direct car battery connect Low power / High efficiency 4 Devices < 5W
Slide 23: Facilitating Seamless Data Connectivity
2. FACILITATING SEAMLESS DATA CONNECTIVITY 23 Won / Pipeline Wireless Charging Telematics Driver Monitoring Cloud Access
Slide 24: Supporting Emerging Autotech Applications
2. SUPPORTING EMERGING AUTOTECH APPLICATIONS Apple C ar K e y 24
Slide 25: Enhancing the User Experience
3. ENHANCING THE USER EXPERIENCE Shipping CarPlay Solutions In fota i nment LED Lighting 25
Slide 26: Accelerating Electrification
4. ACCELERATING ELECTRIFICATION 26 Pipeline Charging Controllers Diagnostics Solutions
Slide 27: A Diverse Product Portfolio and Pipeline
A DIVERSE PRODUCT PORTFOLIO AND PIPELINE • Ultrasound Solutions – Parking Assist • Vision Systems • Wireless Charging • Telematics • Cloud Access • CarPlay − >30M Units Shipped − 65% Market Share • Infotainment • Cabin Lighting PRODUCT O F F E R I NGS S H I PP I N G AND DESIGN WINS PRODUCTS IN DE V
Slide 28: indie's SoC Solutions Enable Diverse Applications
INDIE’S SOC SOLUTIONS ENABLE DIVERSE APPLICATIONS System Signal P roc e ssor PowerSoC Cyber Se c u r i ty T elemati c s Lighting Li D AR A D AS Wireless C h a rgi n g User I n t e r fac e C a r K ey C ar Pla y Bus Bridging iPM U S yst e m - o n - C hip Solutions 28
Slide 29: Our Strategic Growth Initiatives
OUR STRATEGIC GROWTH INITIATIVES PHASE I 2021 PHASE II 2023 PHASE III 2024 Grow Existing UX/ C o n n ec t ed Car Business Expand Sales of ADAS Product Lines Bring Imaging Radar and Vision Edge Solutions to Market Add AI/ML Processor A c celer a t i on Ship Revolutionary LiDAR Solution Acquire Enabli
Slide 30: Proven Management Team
PROVEN MANAGEMENT TEAM Ichiro Aoki, Ph.D President and Director Scott Kee, Ph.D CTO Joe Inzitari Director, Operations David Kang E n g i n ee r i ng Fellow Tom Schiller CFO & EVP of Strategy Lionel Federspiel VP, Engineering Darshan Gopal Director, Product & Test Vincent Wang VP, Asia Sales and Mark
Slide 31: indie Global Footprint
INDIE GLOBAL FOOTPRINT Wafer Foundry Wafer Level Test Asse m b l y Final Test M a nu f a c tu r i ng Partners: Employee F oo t p r i nt: Austin, TX design center Detroit, MI Portland, OR San Jose, CA Boston, MA Edinburgh design center Wuxi indie China Design in Wuxi and Shanghai Sales in Shenzhen, S
Slide 32: Financial Highlights
FINANCIAL HIGHLIGHTS Accelerating Growth Trajectory Projected 85% compounded annual growth 2020 – 2025 $2B+ of Strategic Backlog* Creates Strong Visibility 60% of aggregate revenues through 2025 already at shipping / won stages Operating Leverage Produces 30% Target EBIT Margin Driven by higher marg
Slide 33: Significant Growth Spanning Product Areas
$2 3 Note: FY19 represents unaudited financial results; FY20 – 25 are estimated financial projections * - Strategic backlog as defined on page 3 of the presentation “Disclaimer” pages 33 $2 3 $4 4 $9 1 $20 4 $34 9 $50 1 $ 7 5 $ 1 5 0 $ 2 2 5 $ 3 0 0 $ 3 7 5 $ 4 5 0 SIGNIFICANT GROWTH SPANNING PRODUC
Slide 34: Majority of Revenue at Shipping / Won Stages
$2 3 Note: FY19 represents unaudited financial results; FY20 – 25 are estimated financial projections * - Strategic backlog as defined on page 3 of the presentation “Disclaimer” pages 34 $2 3 $4 4 $9 1 $20 4 $34 9 $50 1 $ 7 5 $ 1 5 0 $ 2 2 5 $ 3 0 0 $ 3 7 5 $ 4 5 0 Projected 85% 5 - Year CAGR MAJORI
Slide 35: Improving Product Mix
13 % 14 % 8 % 5 % 75% 57% 62% 4 0 % 1 7 % 15% 8 % 6% 23% 23% 4 6 % 5 1 % 42% 33% 6% 6% 7% 9 % 2 9 % 41% 57% FY 1 9 A FY 2 5 E IMPROVING PRODUCT MIX Note: FY19 represents unaudited financial results; FY20 – 25 are estimated financial projections 35 FY20E FY21E FY22E FY23E FY24E GM Expansion Driven by
Slide 36: A Clear Path to Long Term Operating Model
A ct u a l Operating expenses $25 $27 $61 $89 $109 $129 $147 41% % of revenue 112.2% 117.2% 137.7% 97.3% 53.3% 36.9% 29.4% EBIT ($19) ($18) ($41) ($46) ($0) $73 $151 NM % margin - 82.7% - 77.2% - 93.1% - 50.3% - 0.2% 21.0% 30.1% EBITDA ($17) ($17) ($40) ($45) $3 $77 $154 NM % margin - 75.1% - 72.1%
Slide 37: Investment Thesis
INVESTMENT THESIS T r an s a c t i on Accelerates Roadmap and Drives Substantial Growth & Profitability Next - Ge C o m p le x n Automotive Semiconductor and Software Platform - Solving the Most and Demanding Challenges Well Positioned in Massive Secular Growth Market with High - Growth, Margin - Ri
Slide 38: Transaction Summary
Indie TRANSACTION SUMMARY
Slide 39: Transaction Summary
TRANSACTION SUMMARY TRANSACTION OVERVIEW • Highly attractive opportunity to invest at the inflection point — Attractive entry multiple relative to public peers and recent transactions • $982M post - money enterprise value — 2025E Revenue and EBITDA multiples of 2.0x and 6.4x, respectively, implying
Slide 40: Transaction Offers Attractive Discount
$3,861 M $2,235 M $982 M $4,634 M $2,682 M Implied Future Enteprise Value Implied Current Enterprise Value Proposed Transaction Enterprise Value TRANSACTION OFFERS ATTRACTIVE DISCOUNT Key Inputs and Assumptions – The implied 25x to 30x EV/EBITDA multiple range is based on indie’s high growth / next
Slide 41: Favorable Operating Metrics vs. Peer Group
58% 59% 64% 63% 5 8 % 98% 85% 61% 2 2 % 35% 33% 31% 2 8 % 2 3% 2 1% 2 1% 1 6 % 4 7 % 6 2 % 6 1 % 60% 55% 52% 4 1 % 9 9% 22% 19% 13% 12% 1 1 % 1 1% 9% 7% 2 2 % 3 1 % 4 4 % 2 2 % FAVORABLE OPERATING METRICS VS. PEER GROUP 2020E – 2022E REVENUE CAGR ( % ) 2022E GROSS MARGIN (%) 2022E EBITDA MARGIN (%)
Slide 42: Transaction Implies Steep Discount to Peers
1 2 . 8x 6 .4 x 1 5 . 7x 6 .1 x 2 .8 x 2. 0x 8 .7 x 3. 4x 2 .4 x 12 . 8x 6.4x 5 6 . 4x 5 3. 4x 4 1. 6x 40.3x 24 . 5x 2 4 . 1x 2 1. 9x 1 8. 0x 10 . 8x 4 . 8x 2 .8 x 13.1x 12 . 0x 8. 8x 8 .8 x 7. 5x 6 .8 x 6 .2 x 5. 0x TRANSACTION IMPLIES STEEP DISCOUNT TO PEERS ( x ) Median: 8.1x EV/2022E REVENUE (x)
Slide 43: Valuation Multiple in Perspective
- 1 0 . 0 x 2 0 . 0 x 3 0 . 0 x 4 0 . 0 x 5 0 . 0 x 0 % 2 0 % 4 0% 6 0% 8 0 % 1 0 0 % 1 2 0 % 1 4 0 % 1 6 0 % 2022E EV/EBITDA (x) 60.0x VALUATION MULTIPLE IN PERSPECTIVE 2020E - 2024E (2) 2020E - 2025E (3) 2020E - 2025E (4) 2020E - 2025E (5) 2. Velodyne Lidar 2020E - 2024E Revenue CAGR of 61% and 20
Slide 44: Appendix
Indie APPENDIX
Slide 45: indie System Signal Processor (SSP)
INDIE SYSTEM SIGNAL PROCESSOR (SSP) Analog Front End High Speed ADC H a r d wa r e DSP S o f t w a r e DSP Point Clo ud S c e n e Optimizing LiDAR, Radar and Ultrasound Power / Cost Through Full System Processing 45
Slide 46: indie PowerSoC
INDIE POWERSOC Secured MCU Direct to car battery iPMU Connectivity x Replaces 4 to 6 discrete ICs Shrinks PCB footprint Reduces cost via integration iPMU LDO, DC/DC, SBC function AD C Control I/F Motor, Plant User I/F Co m ms I/F MCU, Flash & SRAM S en s or I/F Cyber Secured 46 Enables Highly Integr
Slide 47: Integration and Packaging Expertise
INTEGRATION AND PACKAGING EXPERTISE LOWEST COST HIGHEST PERFORMANCE MORE INTEGRATION Leveraging Packaging Experience from the Mobile Space to Fuel the AutoTech Revolution 47
Slide 48: SEMI © Nib Ui OR
SEMI © Nib Ui OR