Ecarx Holdings Inc. · NASDAQ:ECX
Ecarx — Investor Day (May 2023)
51 slides from Ecarx's investor day presentation, May 9, 2023
Slide 1: Investor Day
ECARX Investor Day May 9, 2023
Slide 2: Investor Day agenda
Investor Day agenda 01 Welcome Karolis Stravinskas, Investor Relations 02 Business overview Ziyu Shen, Chairman and Chief Executive Officer 03 Strategy Peter Cirino, Chief Operating Officer 04 Product roadmap John Marcus, President, International Break 05 Strategic partnerships & customer testimonia
Slide 3: Disclaimers
Disclaimers Forward-looking statements income, interest expense, income tax expenses, depreciation of property and equipment, amortization of intangible assets, and share-based compensation expenses. This release contains statements that are forward-looking statements within the meaning of the U.S.
Slide 4: Business overview
Business overview Ziyu Shen, Chairman and Chief Executive Officer
Slide 5: The vehicle of the future will become a computer on wheels
In the same way the telephone has evolved into a handheld computer, the vehicle of the future will become a computer on wheels. 6
Slide 6: Our history
Our history We founded ECARX in 2017 with a vision and ambition to create a technology portfolio that will transform vehicles into seamlessly integrated information, communications, and transportation devices. Ziyu Shen Eric Li All copyright shall belong to ECARX. No person shall copy or distribute
Slide 7: Highly experienced leadership team
Highly experienced leadership team Senior management Ziyu Peter Ramesh Andrew Shen Cirino Narasimhan Winterton Chairman and Chief Operating Chief Financial General Counsel Chief Executive Officer Officer Officer APTIV, A123 Systems, Al-Futtaim, Nissan, Clyde & Co, GM, T-Mobile TE Connectivity Ford E
Slide 8: We've made significant progress since our founding
We’ve made significant progress since our founding ~1,500 1,200 10 Global employees Global engineers Global operation centers +5.0M 12 $516M Vehicles equipped with OEM customers FY 2022 revenue our technology Note: Data points correct as of April 30, 2023 All copyright shall belong to ECARX. No pers
Slide 9: Evolution of our core technologies
Evolution of our core technologies Core technologies Central computing platform System on a Chip (SoC) ECU Hardware + SoC Base Software Operating Operating System System + Software Stack Application and UX Software Cloud Services Stack *For illustrative purposes only – can be customized per OEM All
Slide 10: Three industry trends are powering new auto mobility solutions
Three industry trends are powering new auto mobility solutions 01 02 03 Industry shift towards The rise of the All new platforms required electric, connected, software-defined for product development automated vehicles vehicle All copyright shall belong to ECARX. No person shall copy or distribute a
Slide 11: Industry shift towards electric, connected, automated vehicles
01 Industry shift towards electric, connected, automated vehicles Software 2030 TAM: contributors • ADAS and AD 2022 TAM: • Infotainment, connectivity, security • Operating system and middleware • A.I. & Machine Learning ~$270B ~$470B Hardware contributors • Electronic hardware • Sensors • Infotainm
Slide 12: Rise of the software-defined vehicle
02 Rise of the software-defined vehicle Cars are no longer simple analog devices – with digital cockpits bringing more in-vehicle technology, greater connectivity and advanced functionality The landscape of automotive software and E/E markets is highly correlated to the level of vehicle autonomy Dem
Slide 13: Evolution of E/E architecture creates demand
03 All new platforms required for product development: Evolution of E/E architecture creates demand Legacy Future Distributed More centralized All copyright shall belong to ECARX. No person shall copy or distribute any or all part of the content in any way. ECARX shall reserve the right to take lega
Slide 14: ECARX is ideally positioned in the rapidly evolving EV market
ECARX is ideally positioned in the rapidly evolving EV market Large and growing TAM of $470B by 2030 Differentiated full-stack technology to simplify and expedite OEM product development timelines Clear path for acceleration – diversified customer base of 12 OEMs and 21 vehicle brands and deployed i
Slide 15: Clear growth strategy in place…
Clear growth strategy in place… Our objectives How we will achieve them Expanding revenue streams by Double digit 1 partnering with global OEMs to meet their evolving needs revenue growth Adjusted EBITDA Increasing average revenue per car profitability 2 through our innovative product portfolio Stro
Slide 16: … Powered by a clear product roadmap to capture $470B TAM
… Powered by a clear product roadmap to capture $470B TAM Antora 1000 & Fulfilling unmet SoC need in 01 the EV market Antora 1000 Pro Intelligent cockpit computing platform Pushing the boundaries of Makalu Cloudpeak 02 driver experience The most powerful intelligent cockpit platform today Cross-doma
Slide 17: Antora 1000 & Antora 1000 Pro
01 Fulfilling unmet SoC need in the EV market Bringing efficiency & OUR SOLUTIONS computing power – with automotive DNA built in Antora 1000 & Antora 1000 Pro Intelligent cockpit computing platform Providing certified Antora 1000 functional safety and information security OUR PARTNERS Helping OEMs e
Slide 18: Makalu
02 Pushing the boundaries of driver experience Enabling real-time OUR SOLUTIONS immersive 3D renderings and effects Makalu The most powerful intelligent cockpit platform today enabling real-time 3D Supporting large scale environment rendering with desktop level processing performance AAA games and e
Slide 19: Super Brain
03 Powering the evolution of ADAS and software-defined vehicles OUR SOLUTIONS Improving performance and efficiency of ADAS Super Brain Central computing platform that combines digital cockpit system and Integrating ADAS with ADAS controller into one product digital cockpit for seamless experience OU
Slide 20: Where we are today
Where we are today 12 8 5 Automotive OEM Tier 1 automotive New product customers suppliers announcements 21 +5.0M 9 Vehicles equipped Strategic Vehicle brands with our technology partnerships Note: Data points correct as of April 30, 2023 All copyright shall belong to ECARX. No person shall copy or
Slide 21: We are the architect of a partner ecosystem for innovation
We are the architect of a partner ecosystem for innovation We work with category-leaders… …to customize products for top OEMs JICA Intelligent … and sell to international customers All copyright shall belong to ECARX. No person shall copy or distribute any or all part of the content in any way. ECAR
Slide 22: Our blueprint to success
Our blueprint to success Vertical tech Proven Accelerated stack products product roadmap Presence in Asia, Broad technology Leader in the North America eco-system leading market and Europe All copyright shall belong to ECARX. No person shall copy or distribute any or all part of the content in any w
Slide 23: Flagship Offering
01 Flagship Offering Fulfilling unmet SoC demand Antora 1000 & Antora 1000 Pro All copyright shall belong to ECARX. No person shall copy or distribute any or all part of the content in any way. ECARX shall reserve the right to take legal action against such violations. | www.ecarxgroup.com 27
Slide 24: Antora Series
01 Fulfilling unmet SoC demand in EV Antora Series Intelligent cockpit computing platform, increasing the overall computing power of the car All copyright shall belong to ECARX. No person shall copy or distribute any or all part of the content in any way. ECARX shall reserve the right to take legal
Slide 25: Antora 1000 key product features
01 Antora 1000 Key product features Increases overall • Powerful 7nm, auto-focused SoC computing power • Reduced production difficulty, with pins decreased by 40% • Enables longer cycles between OEM Lower power consumption hardware updates Groundbreaking LPDDR5 Reduce development cycle by 20% +50% +
Slide 26: Antora 1000 Pro key product features
01 Antora 1000 Pro Key product features Increases overall • Flagship SoC SE1000 – industry-leading computing power 7nm processor • Powerful 200K DMIPS computing power • 1.8 TFLOPS graphics rendering capability Lower power consumption • Inter-module video stream latency lowered by 51% than other mass
Slide 27: Next-Generation Intelligence
02 Next- Generation Intelligence Pushing the boundaries of driver experience Makalu All copyright shall belong to ECARX. No person shall copy or distribute any or all part of the content in any way. ECARX shall reserve the right to take legal action against such violations. | www.ecarxgroup.com 31
Slide 28: Makalu
02 Pushing the boundaries of driver experience Makalu Our next-generation, immersive intelligent cockpit computing platform powering the future of 3D in vehicles All copyright shall belong to ECARX. No person shall copy or distribute any or all part of the content in any way. ECARX shall reserve the
Slide 29: Makalu key product features
02 Makalu Key product features One of the most powerful • Advanced 7nm process meeting smart cockpit platforms AEC – Q100 G2 • 394K DMIPS and graphic rendering capability at 10.1T FLOPS Supports multiple • GPU: 28 computing units, 1,792 stream processors 4K displays • Based on AMD Zen 2 APU • DDR me
Slide 30: Central Computing Platform
03 Central Computing Platform Powering the evolution of ADAS and software- defined vehicles Super Brain All copyright shall belong to ECARX. No person shall copy or distribute any or all part of the content in any way. ECARX shall reserve the right to take legal action against such violations. | www
Slide 31: Super Brain
03 Powering the evolution of ADAS and software-defined vehicles Super Brain Our “all-in-one” solution that integrates the cockpit, driving, and vehicle control with our full-stack hardware and software technologies to bring AI performance to its full potential All copyright shall belong to ECARX. No
Slide 32: Super Brain key product features
03 Super Brain Key product features (Antora + ADAS) Lowers vehicle cost • Total CPU power is 132K DIMPS significantly through • GPU is 900G FLOPS • NPU is 61 TOPS 20% cost vs. • Inter-core data sharing is facilitated by distributed controllers dual PCIe 3.0 channels, and enjoys a latency of less tha
Slide 33: Extreme Performance
Extreme Performance Supporting across all themes Cloudpeak All copyright shall belong to ECARX. No person shall copy or distribute any or all part of the content in any way. ECARX shall reserve the right to take legal action against such violations. | www.ecarxgroup.com 37
Slide 34: Cloudpeak
Supporting across all themes Cloudpeak Our cross-domain system built by our global R&D teams Function safety certified to 67% more efficient meet automotive standard virtualization performance Meets highest standards of Supports 3D sound field, nearly security around the globe 20 functions available
Slide 35: ECARX customer base expansion
ECARX customer base expansion We aim to become the world's top automotive-tech company We will achieve this by: 1. Serving non-Geely OEMs – supplying non-Geely OEMs for the China market (both domestic and global OEM EU EE CA brands), and SK NA 2. Serving top 5 global OEMs – CN JP SA building new rel
Slide 36: Strategic relationships create robust pathways to third party OEMs
Strategic relationships create robust pathways to third party OEMs and international growth Proven product portfolio Involvement with and scale with Geely OEMs from “day one” Ecosystem Capital efficient Expanding geographic technology partnerships and customer reach All copyright shall belong to ECA
Slide 37: Our recent track record sets us up for further growth acceleration
Our recent track record sets us up for further growth acceleration FY 2022: Strong demand for products helped accelerate revenue to $516 million FY 2022: Adjusted EBITDA came in $62 million better than our projection with a clear pathway to breakeven by end of 2024 FY 2023: Well-positioned to benefi
Slide 38: Multiple growth levers position us strongly for the future
Multiple growth levers position us strongly for the future Our objectives How we will achieve them Expanding revenue streams by Double digit 1 partnering with global OEMs to meet their evolving needs revenue growth Adjusted EBITDA Increasing average revenue per car profitability 2 through our innova
Slide 39: Accelerating revenue growth
Accelerating revenue growth ($M) $2,600 – $2,800 Revenue growth drivers Expanding EV adoption +40% Diversification of customer CAGR base translating to increased market share +38% New product development $700 – $720 leading to up-sell $516 opportunities to new and existing OEMs Increased recurring r
Slide 40: While diversifying across OEM partners and geographies
While diversifying across OEM partners and geographies Revenue split by OEM New markets* 11x FY22 levels 33% 47% 11% 24% 20% 13% 12% 56% 33% 2022A 2027E 2022A 2023E 2027E Third parties Other Geely ecosystem brands Geely auto brands New markets revenue % New markets revenue $ *New Markets consists of
Slide 41: Content per car expected to trend upwards with new product rollouts
Content per car expected to trend upwards with new product rollouts $630 – $650 1.7x Next-gen products to improve our content per $360 – $380 car more than mitigating industry pricing trends of legacy technology 2022A 2027E Growth rates at constant currency, based on a rate of RMB6.8571 to US$1.00 (
Slide 42: Pathway to adjusted EBITDA profitability in 2024
Pathway to adjusted EBITDA profitability in 2024 ($M) $340 – $360 Disciplined and strategic capital allocation +32pp Proactive management of operational costs Positive in 2024 ~13% EBITDA margin ($100) by 2027 2022A 2023E 2024E 2027E Growth rates at constant currency, based on a rate of RMB6.8571 to
Slide 43: Disciplined and strategic capital allocation strategy
Disciplined and strategic capital allocation strategy Maintain strong financial profile and maximize long-term growth of cash flow Invest to support new product development and create partnership ecosystem to drive above market revenue growth Focus on supporting organic and inorganic growth, where i
Slide 44: Longer-term outlook 2024 – 2027
Longer-term outlook 2024 – 2027 ~40% ~13% CAGR >30% Adjusted EBITDA margin Gross margin by 2027 Revenue by 2027 ~$640 +20M >$300M Content per car by 2027 Vehicles on road by 2027 Free cash flow by 2027 All copyright shall belong to ECARX. No person shall copy or distribute any or all part of the con
Slide 45: Summary
Summary Continued Diversification Continued Disciplined cost focus on across investment in management sustainable, geographies, R&D and capital profitable customers and allocation growth suppliers All copyright shall belong to ECARX. No person shall copy or distribute any or all part of the content
Slide 46: Appendix
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Slide 47: Condensed consolidated balance sheets
Condensed consolidated balance sheets LIABILITIES As of December 31 Current liabilities Millions, otherwise noted 2021 2022 2022 Short-term borrowings 932.0 870.0 126.1 RMB RMB US$ Accounts payable – third parties 650.0 1,024.2 148.5 ASSETS Accounts payable – related parties 111.5 239.9 34.8 Current
Slide 48: Condensed consolidated balance sheets
Condensed consolidated balance sheets As of December 31 Millions, otherwise noted 2021 2022 2022 RMB RMB US$ MEZZANINE EQUITY Series Angel Redeemable Convertible Preferred Shares 283.6 - - Series A Redeemable Convertible Preferred Shares 1,429.3 - - Series A+ Redeemable Convertible Preferred Shares
Slide 49: Consolidated statements of operations and comprehensive loss
Consolidated statements of operations and comprehensive loss Year Ended Three Months Ended Interest income 11.8 12.4 1.8 2.6 4.6 0.7 December 31 December 31 Interest expenses (131.7) (51.1) (7.4) (1.2) (17.5) (2.5) Millions, otherwise noted 2021 2022 2022 2021 2022 2022 Loss from equity method inves
Slide 50: Reconciliation of GAAP and non-GAAP results
Reconciliation of GAAP and non-GAAP results Year Ended Three Months Ended The Company uses adjusted EBITDA (non-GAAP) in evaluating its operating results and December 31 December 31 for financial and operational decision-making purposes. Adjusted EBITDA (non-GAAP) 2021 2022 2022 2021 2022 2022 is de
Slide 51: Thanks.
Thanks. ECARX www.ecarxgroup.com All copyright shall belong to ECARX. No person shall copy or distribute any or all part of the content in any way. ECARX shall reserve the right to take legal action against such violations.