Aurora Innovation, Inc. · NASDAQ:AUR
Aurora Innovation — Reinvent Technology Partners Y — SPAC Merger (September 2021)
64 slides from Aurora Innovation's SPAC merger presentation, Sep 27, 2021
Slide 1: Aurora Investment Memo September 2021
Filed by Reinvent Technology Partners Y Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934 Subject Company: Aurora Innovation, Inc. Commission File No. 333-257912 Aurora Investment Memo September 2021Filed by Reinvent
Slide 2: Disclaimer
Disclaimer This presentation (this “Presentation”) was prepared by Reinvent Technology Partners Y (“RTPY”) and Aurora Innovation, Inc. (“Aurora”) in connection with their proposed accuracy or completeness of these data. business combination. By accepting this Presentation, you agree to use this Pres
Slide 3: Reinvent Team
Reinvent Team Reid Mark Michael David Daniel Matt Hoffman Pincus Thompson Cohen Urdaneta DeGraw • Non-voting observer on RTPY board of • Director of RTPY• CEO, CFO, and Director of RTPY• Secretary of RTPY• Investment Partner at Reinvent Capital• Principal at Reinvent Capital directors • Founder and
Slide 4: Reinventing Mobility: Aurora + Reinvent
Reinventing Mobility: Aurora + Reinvent goal: to partner with amazing founders with game Aurora offers opportunity for Venture Capital @Scale changing technologies who are inventing or reinventing industries Reinvent vision for Aurora: world class team and leading technology in pole position to be f
Slide 5: Table of Contents
Table of Contents The Time is Now 6 Executive Investment Summary 20 1. Team 22 Visionary team built to solve self-driving 2. Technology 27 Next generation technology built for scale 3. Partnerships 35 Partnerships with industry leaders 4. Go-to-Market & Business Model 40 Differentiated approach to m
Slide 6: The Time is Now
The Time is Now Reinvent
Slide 7: The Time is Now
The Time is Now Compounding Enabling Technology Massive Potential + = Problems Advancements Impact 7The Time is Now Compounding Enabling Technology Massive Potential + = Problems Advancements Impact 7
Slide 8: Compounding Problems
Compounding Problems Road Safety Traffic Driver Shortage (2) • Every hour 154 people lose their • Urbanization, rising infrastructure • There is currently a 60K truck (1) driver shortage in the U.S. that is lives on the world’s roads costs, and population growth are (2) expected to grow to 160K by 2
Slide 9: Despite Advancements, US Road Safety is Not Improving
Compounding Problems Despite Advancements, US Road Safety is Not Improving (2) Total U.S. Vehicle Related Fatalities (000) 38.7 (1) • Every hour 154 people lose their lives on the world’s roads 37.8 37.4 37.5 36.8 36.1 • While vehicle related fatalities decreased in the early 2010s, they 35.5 (2) ha
Slide 10: Compounding Problems: Time Lost in Traffic
Compounding Problems • Texas A&M estimates that time lost in traffic cost Americans ~$190 billion in 2019 and is Time Lost in Traffic forecasting that number to rise to ~$237 billion by 2025 • Traffic is not only inconvenient, but also drastically increases the carbon emissions released during a tri
Slide 11: America's Truck Driver Shortage is Large and Growing
Compounding Problems America’s Truck Driver Shortage is Large and Growing In 2018, the trucking industry was short roughly 60,800 drivers, which was up nearly 20% from (1) 2017’s figure of 50,700. If current trends hold, the shortage could swell to over 160,000 by 2028 • There are many reasons for t
Slide 12: Enabling Technology Advancements
Enabling Technology Advancements AI / Deep Sensing Learning / Technology – Compute Computer Lidar, Cameras, Power Vision Radar • Almost every part of self-driving wouldn’t • Deep learning breakthroughs in the early • Improvements in lidar, camera, and radar be a possibility today without the 2010s e
Slide 13: Continuous Improvements in Compute Power
Enabling Technology Advancements Continuous Improvements in Compute Power Moore’s Law: The Number of Transistors on (1) Microchips Doubles Every Two Years Transistor Count Moore’s law describes the empirical regularity that the 50,000,000,000 number of transistors on integrated circuits doubles 10,0
Slide 14: Impact of Innovation in AI and Deep Learning
Enabling Technology Advancements Impact of Innovation in AI and Deep Learning (1) (1) Global GDP Impact from AI AI Impact Index by Industry 16 Aurora has been the beneficiary of advances in machine Automotive 3.7 learning and deep learning techniques for artificial 14 intelligence over the last deca
Slide 15: Recent Advancements in Sensing Technology
Pixel Pitch (microns) Enabling Technology Advancements Recent Advancements in (2) Progression of Pixel Resolution 550 Nokia Pureview (41 MP, 1.1 µ pp) 0.91 P&S Sensing Technology Cellphone 500 1.00 DSLR 41 MP 450 1.11 Optical Resolution Sony Cyber-shot DSC-RX100 (20.9 MP, 1.31 µ pp) 400 1.25 20.9 MP
Slide 16: Massive Potential Impact
Massive Potential Impact Increase Safety Transform Logistics Every hour 154 people lose In the U.S., trucking accounts (1) their lives on the world’s for 300B miles annually & (3) roads 65% of total goods movement Expand Access Improve Lives (2) 25.5 million people with a The average driver spends 5
Slide 17: A New Kind of TAM: Expanding the Pie
Massive Potential Impact Radical changes to transportation modality don’t so much “cannibalize” the current/prevailing form of transport as A New Kind of TAM: much as totally reinvent and re-scale the size of the market itself, frequently by orders of magnitude Expanding the Pie New Travel Capabilit
Slide 18: Automation of Transportation Potential to Drive Large Value Creation
Massive Potential Impact • Digitization of advertising drove market cap creation multiple times the size of the original market as the The Automation of Transportation industry evolved has the Potential to Drive Large • Transportation is one of the largest sectors of the economy globally and has the
Slide 19: Pushing AV Technology Toward the Ubiquity of Elevators
Massive Potential Impact Pushing AV Technology Toward the Ubiquity of Elevators “Another related technology, in a lot of ways, is the elevator,” said Chris Urmson. “It’s another technology that had a fairly profound impact on cities.” Urmson’s not the only one to make this comparison. Elon Musk, the
Slide 20: Executive Investment Summary
Executive Investment Summary 20
Slide 21: Reinvent Investment Thesis
Reinvent Investment Thesis Visionary team built to solve self-driving Massive market with significant growth potential and 1 5 • Founding team with deep technical and industry experience - Co Founder and CEO Chris Urmson favorable tailwinds led Google’s self-driving car team for 7 years, Co Founder
Slide 22: 1. Team
1. Team Visionary team built to solve self- driving 221. Team Visionary team built to solve self- driving 22
Slide 23: Aurora Has Proven Leadership and Expertise
Aurora Has Proven Leadership and Expertise Aurora Leadership Team The team that will deliver • Chris helped found Google’s self-driving car project and lead Waymo for 7 years • Drew is one of the top machine learning experts in the world and helped build Uber ATG Chris Urmson Drew Bagnell Sterling A
Slide 24: Aurora Has the Required Scale to Deliver Self-Driving
Aurora Has the Required Scale to Deliver Self-Driving • Significant talent throughout the organization across levels and divisions • Given the complexity of solving self driving, human capital scale and talent are a key differentiator • Aurora believes it has the scale required to solve self-driving
Slide 25: Excellence Across the Organization
Aurora has impressive talent in every division and was thoughtful in how the organization is Excellence Across the structured. Three examples of excellence in functions outside of the key product or technology groups are the corporate development, government relations, and cyber security teams. Orga
Slide 26: Safety is a Top Organizational Priority
Safety is a Top Organizational Priority Safety Case Safety Standards Organizational Safety • Aurora’s safety case is the standard by which Aurora will assert that Aurora believes the Aurora Driver is safe to Engineering, data science, and policy experts focused be on the roads. Building out the safe
Slide 27: 2. Technology
2. Technology Next generation technology built for scale 272. Technology Next generation technology built for scale 27
Slide 28: Self-Driving 2.0
Self-Driving 2.0 Aurora has been focused on building a commercially scalable product since the foundational decisions of the company and technology stack • Further, the leaders of Aurora were armed with the knowledge of the previous hurdles and technological roadblocks that Waymo, Tesla, and Uber AT
Slide 29: Aurora is Innovating Throughout the Self-Driving Stack
Aurora is Innovating Throughout the Self-Driving Stack • The Aurora Driver is powered by a combination of hardware Aurora Driver Technology Stack (sensors, compute), software (planning, simulation), and data services (mapping, teleassist). The Aurora Driver then operates by perceiving the world arou
Slide 30: Development Process Creates Tight Feedback Loop
Aurora’s Development Process Creates Tight Feedback Loop and Faster Cycles Aurora is building out its hardware and software solution in lock-step allowing for tight feedback loops and learnings across both systems throughout the development process Step 4: Step 1: Digest data, revise • There are sig
Slide 31: Benefits of Multi-Modal Sensing
Benefits of Multi-Modal Sensing By fusing multiple modalities, Aurora believes it will be able to The Aurora Driver take asynchronous, out-of-order sensor returns across sensor modalities, enhance safety and reduce time to market and turns them into robust long-term reasoning about individual actors
Slide 32: FirstLight Lidar is a Key Differentiator
FirstLight is Aurora’s proprietary, in-house FMCW (frequency modulated continuous wave) lidar that emits pulsed light waves Aurora’s FirstLight Lidar is into the surrounding environment and times when the light waves return to the sensor to perceive surrounding objects a Key Differentiator and Unloc
Slide 33: Virtual Testing Suite Creates a Paradigm Shift in Testing
Aurora's Virtual Testing Suite Creates a Paradigm Shift in Testing Safety, Efficiency, and Speed Aurora’s Virtual Testing Suite improves: A combination of virtual and on-road testing is the most viable path to a safe, scalable commercial solution • Safety: Dramatically reduces the number of on-road
Slide 34: Aurora Atlas: Commercially Scalable Mapping
Aurora Atlas: Aurora Atlas Map Shard Commercially Scalable Mapping Commercially relevant self-driving demands HD maps • The 1.0 approach to mapping – large, feature-heavy, globally consistent map – quickly out of date, slow, and expensive to fix • The Aurora 2.0 approach – sharded, lightweight, loca
Slide 35: 3. Partnerships
3. Partnerships Partnerships with industry leaders 353. Partnerships Partnerships with industry leaders 35
Slide 36: Committed Partnerships and Deep Integrations With the Right OEMs
• Long-term commitment to build co-branded, integrated vehicles where Aurora provides the self-driving hardware (sensors, compute, etc.), Aurora has Committed software, and data services and the OEM provides the integrated vehicle • Importance of building with a partner - allows both companies to fo
Slide 37: Partnership with Uber
Aurora’s Partnership with Access to Uber data is a unique competitive advantage Uber Drives Key Competitive Benefits Detailed marketplace data combined with regulatory Refined market selection understanding enables Aurora • Power the world’s #1 ride hailing platform with Aurora Driver to select the
Slide 38: Partnership Approach is a Strategic Advantage
Partnership Approach is a Strategic Advantage • Co-development with OEMs is a better path than attempting to be a universal plug-and-play • Given the complexity of the problems that self-driving vehicles need to solve, deep integration between hardware and software throughout the development process
Slide 39: Signal of Leading Partners Choosing Aurora
Signal of Leading Partners Choosing Aurora Aurora Ecosystem • Aurora’s partnerships with PACCAR and Volvo Group collectively represent ~50% of the Class 8 U.S. market, the largest global ride hailing network with Uber, and the #1 passenger vehicle manufacturer by volume globally with Toyota • Partne
Slide 40: 4. Go-to-Market & Business Model
4. Go-to-Market & Business Model Differentiated approach to market entry and sequencing 404. Go-to-Market & Business Model Differentiated approach to market entry and sequencing 40
Slide 41: Trucking is the Most Attractive First Market
Trucking is the Most FirstLight Lidar’s advanced range capabilities are the key unlock for safe high-speed driving and thereby a trucking product. Given the technological, market, and financial advantages of starting with trucking, we Attractive First Market believe starting with trucking is clearly
Slide 42: Driver-as-a-Service Business Model
Driver-as-a-Service (DaaS) Creates an Efficient GTM Sequence and Driver as a Service Business Model is Highly Capital Efficient Highly Attractive Financial Model The Aurora Driver is set up to be delivered as a service Aurora provides its technology to an external fleet owner and / or operator Descr
Slide 43: Aurora's Roll-out Plan is Strategic and Rapid
Development, launch, and scale of the Aurora Driver is expected to happen in five phases Aurora’s Roll-out Plan is Strategic and Rapid • Aurora expects to release its first commercial product in late 2023 • Aurora plans to initially start with a hub-to-hub highway service on high- volume lanes in re
Slide 44: Aurora Will Benefit From Strong Network Effects as it Scales
Aurora Will Benefit From Strong Network Effects as it Scales Business model and competitive advantage that improve with scale Increased scale • System improves over time creating a faster feedback loop as the platform scales Enhanced • More vehicles powered by the Aurora Driver on the road will crea
Slide 45: 5. Market
5. Market Massive market with significant growth potential and favorable tailwinds 455. Market Massive market with significant growth potential and favorable tailwinds 45
Slide 46: Aurora Expects to Address the Entirety of an Enormous Transportation Market
Aurora Expects to Address the Entirety of an Enormous Transportation Market, Starting in the U.S. $700bn $4tn (1) (4) Trucking market (U.S.) Trucking Market (Global) $35bn $1tn / $5tn (2) (5) Ride-hailing market (U.S.) Personal mobility TAM (U.S. / Global) $100bn $400bn (3) Local goods delivery mark
Slide 47: Aurora Driver Offers Strong Value Proposition in All Three Verticals
Aurora Driver Offers Strong Value Proposition in All Three Verticals Passenger Local Goods Trucking Mobility Delivery U.S. Market (1) (2) (3) $700bn $35bn ride-hail $100bn Revenue Today Increased vehicle operating Increased vehicle operating Value Proposition Increased driver access and safety hours
Slide 48: The Aurora Driver Can Create Immense Value for Trucking Partners
The Aurora Driver can Create Immense Value for Trucking Partners Speed up service and supply chains Inventory • The Aurora Driver can operate 24 hour / day vs a traditional 11 hour day for a truck driver Carrying costs, and • Moving a lead Los Angeles to Houston drops from 2+ days to a single day Ne
Slide 49: Self-Driving Take-Up Should Benefit From Trucking Market Structure
Self-Driving Take-Up Should Benefit From Labor is the largest cost component of trucking Trucking Market Structure As a 5% net profit business, trucking operators see a meaningful uplift to their bottom • The Aurora Driver will be a safer, cheaper, more productive replacement line when when replacin
Slide 50: The Existing Regulatory Environment is Favorable
The Existing Regulatory Environment is Favorable The U.S. Is Open for Business with Self Driving • All states today permit some mix of testing and deployment of self driving technology • Aurora's Government Relations team engages with government officials at all levels to position Aurora as a leader
Slide 51: Market Tailwinds and Virtuous Benefits of Self-Driving
Market Tailwinds and Virtuous Benefits of Self-Driving will Continue to Expand the Massive Transportation Market eCommerce Supply Investment chain Traffic EVs $835B U.S. trucking, Continued Population passenger mobility, technology growth and local delivery improvements (1) markets Ride hailing / Ur
Slide 52: Aurora Driver is Key to Expansion in the Ride-Hailing Market
We Believe the Aurora Driver is The price elasticity of the ride-hailing market creates a compelling opportunity for the Aurora Driver to Key to a Significant Expansion in significantly expand the market. the Ride-Hailing Market Consumer considerations Driver vehicle Direct Direct, Safety ✓ ownershi
Slide 53: 6. Positioning
6. Positioning Prime positioning in self-driving race 536. Positioning Prime positioning in self-driving race 53
Slide 54: The Aurora Advantage
Aurora’s next-generation approach defines self-driving 2.0 The Aurora Advantage • Aurora is focused on building a safe, scalable self-driving system rather than putting out demo-ware or collecting stats that won’t translate to a commercial product • Led by a management team with deep technical and i
Slide 55: Our View of the Competitive Landscape
Our View of the Competitive Landscape Team, technology, GTM strategy, and partnerships to deliver a safe, scalable Teams are at scale but not solution prioritizing trucking or partnerships Starting with trucking but teams are not at scale GTM & Partnerships Source: Company websites, public filings,
Slide 56: 7. Financial Profile
7. Financial Profile Strong unit economics and attractive financial profile 567. Financial Profile Strong unit economics and attractive financial profile 56
Slide 57: Attractive, High Margin Financial Model
Aurora benefits from an attractive, high margin financial model and gigantic market where small penetration assumptions Aurora Intends to Fund its could lead to a massive business Development Operations Primarily with Proceeds From the Transaction Fiscal Year End December 31 ($ in millions) 2021E 20
Slide 58: TAM Drives Large Long-Term Outcome Potential
TAM Drives Large Long- Term Outcome Potential (1) 2030E Trucking Aurora market penetration revenues ($bn) 7.5% 10.0% 12.5% • Massive U.S. trucking and ride hailing markets enable significant revenue $0.45 $6.9 $9.1 $11.4 even at small % penetration • Driver-as-a-Service model creates $0.55 $8.4 $11.
Slide 59: 8. Transaction Structure
8. Transaction Structure Attractive fundamental & relative valuation and long-term oriented transaction structure 598. Transaction Structure Attractive fundamental & relative valuation and long-term oriented transaction structure 59
Slide 60: Transaction is Structured with a Long-Term Orientation
Transaction is structured with a long-term orientation Transaction Overview • Transaction Structure ‒ Aurora and Reinvent are partnering to transform $mm, except per share data the future of transportation Sources $ Pro-forma Valuation $ ‒ Founder shares are structured to create long-term Rollover E
Slide 61: De-SPAC Structure Aligns Interest for the Long-Term
De-SPAC Structure Aligns Interest for the Long-Term (1) One Board Seat Price-Based Vesting Lock-Up Arrangements At Least $1 billion PIPE Investment • Designated by Reinvent• 75% of Reinvent founder shares subject • Up to a 4-year lock-up on Reinvent • A Reinvent special purpose vehicle to price-base
Slide 62: Analogous Autonomous Precedents Validate Valuation Upside
Analogous Autonomous Precedents Validate Valuation Upside Valuation Across Last 5 Rounds Latest Valuation $31 $30 $19 $15 $12 $1 2016 2018 2018 2019 2021 2020 Lead Investor Employee 35 ~350 ~350+ 1,500 1,650+ Count Source: PitchBook 62 ($bn) ($bn)
Slide 63: Operational Benchmarking
Operational Benchmarking At Scale Peers Long-Term Bets (1) 2021E-2023E Revenue CAGR Outer Years Revenue CAGR 807% Median 34% 353% 305% 158% 61% 51% 33% 32% 31% 24% 11% 2025-2027E Revenue CAGR ( ) 2021E Gross Margin Outer Years Gross Margin ² Median 62% 77% 69% 67% 67% 62% 54% 54% 34% 31% 24% 23% 202
Slide 64: Valuation Benchmarking
Valuation Benchmarking At Scale Peers Long-Term Bets (2) EV / 2022E Revenue EV / Outer Years Revenue 62.6x Median: 33.9x 38.1x 29.7x 19.8x 17.0x 13.1x 7.2x 5.3x 3.5x 3.0x 2.1x (1) (3) EV / 2022E Gross Profit EV / Outer Years Gross Profit 90.0x Median: 52.5x 55.7x 53.6x 49.3x 29.6x 30.9x 11.5x 11.2x
Reinvent Technology Partners Y — SPAC Merger (September 2021) on 6ix