Slide 1: Build the Impossible: Disruptive 3D Metal Printing for Mass Adoption
Build the Impossible Disruptive 3D Metal Printing for Mass Adoption June 23, 2021
Slide 2: Disclaimer
Disclaimer This presentation is for informational purposes only and is being provided to interested parties to assist in making their own evaluation with respect to the proposed business combination by JAWS Spitfire Acquisition Corporation (“JAWS Spitfire”) and Velo3D, Inc. (“Velo3D”) (the “Business
Slide 3: Disclaimer: Industry and Market Data
Disclaimer Industry and Market Data In this presentation, JAWS Spitfire and Velo3D rely on and refer to publicly available information and statistics regarding market participants in the sectors in which Velo3D competes and other industry data. Any comparison of Velo3D to the industry or to any of i
Slide 4: Disclaimer: Participation in Solicitation
Disclaimer Participation in Solicitation JAWS Spitfire and Velo3D and their respective directors and executive officers, under SEC rules, may be deemed to be participants in the solicitation of proxies of JAWS Spitfire’s shareholders in connection with the proposed Business Combination. Investors an
Slide 5: Agenda
Agenda Introduction: Benny Buller, CEO Technology & Product: Dr. Greg Brown, VP of Technology Market Dynamics: Benny Buller, CEO Sales Growth Strategy: Dr. Zach Murphree, VP of Sales Financials: Bill McCombe, CFO Q&A: All
Slide 6: JAWS Spitfire Overview
JAWS Spitfire Overview 6 JAWS Spitfire team brings an exceptional track record of investing and growing multi-billion dollar platforms in the public markets across a wide industry spectrum JAWS SPITFIRE WORLD- CLASS CAPABILITIES Proven stewards of investor capital with deep public market expertise D
Slide 7: JAWS Spitfire VELO3D Investment Thesis
JAWS Spitfire VELO3D Investment Thesis 7 Differentiated additive manufacturing technology platform Leading full-stack AM solution producing high value-add, mission critical components for customers with a high cost of failure 2 Poised to disrupt and take even greater share in the $100bn+ high value
Slide 8: Presenters Today
Presenters Today 8 CEO Benny Buller Technology unit of Israeli Intelligence National Security Award at age 29 VP SALES Dr. Zach Murphree Product, Engineering, Sales Sapphire® Head of Product VP TECHNOLOGY Dr. Greg Brown Led development of VELO3D technology from inception CFO Bill McCombe Chief Finan
Slide 9: Introduction
Introduction Benny Buller, CEO June 23 2021
Slide 10: Slide 10
Slide 11: Metal Additive Manufacturing: High Interest but Low Adoption
Metal Additive Manufacturing (AM): High Interest but Low Adoption 11 PROMISE Consolidate complex assemblies containing dozens of parts into one Higher performance products, 10x shorter lead time, 2x lower cost REALITY of 1st GENERATION AM Can’t produce required designs Performance degradation Too ha
Slide 12: VELO3D Cracked the Code of Metal AM
VELO3D Cracked the Code of Metal AM 12 Highly differentiated technology enabling production of holy-grail parts behind pursuit of AM Selling full-stack >$1M and ARR production solution Unleashing AM adoption in $100B high value production market Deep technology moat: 6 years, $150M of development, p
Slide 13: Building the Impossible: Raptor engine
Building the Impossible: Raptor engine a breakthrough in rocket engine technology VELO3D technology critical for SpaceX’s most efficient and challenging engine Powering breakthrough of Super- Heavy and Starship launch costs 13 1 System 22 Systems in 3 Years SpaceX VELO3D Investor
Slide 14: Technology and Product
Technology and Product Dr. Greg Brown VP of Technology June 23 2021
Slide 15: Game-changing SupportFree Technology
VELO3D Game-changing SupportFree Technology VELO3D technology can produce any design, even those with most complex internal geometries 15 This generally prevents the production of parts with complex internal geometries Incumbent commodity AM requires supports that can be internal and inaccessible
Slide 16: What Is Powder Bed Fusion (PBF)?
What Is Powder Bed Fusion (PBF)? 16 85% OF METAL AM MARKET Piston steps down Recoating of powder Laser melting of powder leaves small solid Significant powder remains
Slide 17: What are Supports?
What are Supports? 17 The desired outcome Outcome when produced without supports Supports added as anchors to prevent part destruction in build Outcome, as desired INCUMBENT COMMODITY AM VELO3D
Slide 18: Breakthrough is Enabled by Full-Stack Solution
Breakthrough is Enabled by Full-Stack Solution 18 UNDERLYING MANUFACTURING PROCESS Sapphire® Metal AM Family of Printers Flow™ Print Preparation SW Assure™ Quality Validation
Slide 19: SupportFree is Powered by Unique Software and Process
19 | Confidential & Proprietary Flow™ identifies different features Each feature is assigned a pre-developed recipe Recipes overcome feature specific failure mechanisms Library of dozens of recipes, continuously growing Software built with flexibility to define and identify new features SupportFree
Slide 20: Unique Hardware Architecture Enabling SupportFree Process
20 | Confidential & Proprietary Unique Hardware Architecture Enabling SupportFree Process Novel sub-systems enabling library of unique recipes Non-contact recoater Laser controller Process metrologies Dispensed Powder forming thick powder overcoat Powder is shaved > 500 microns above build plane Pow
Slide 21: Live Demo of Flow/Assure
Live Demo of Flow/Assure
Slide 22: Why VELO3D Will Unleash Explosive Market Growth
Why VELO3D Will Unleash Explosive Market Growth 22 Commodity Incumbents* Recent Metal AM SPACs Technology SupportFree Powder Bed Fusion Powder Bed Fusion Binder Jetting or Metal filled FDM Reproduce legacy parts without redesign ✓ ✗ ✗ Produce optimal designs without performance degradation ✓ ✗ ✗ Pri
Slide 23: Customer quote on competitive lead
23 “VELO3D is at least 5 years ahead of any competition” – HEAD OF AM,
Slide 24: Technology Protected by Deep IP Moat
Technology Protected by Deep IP Moat 24 48 granted patents covering systems, methods and composition of matter Multi-layer IP protection approach makes infringement extremely risky 1. Direct injunction against system sellers 2. Injunction against system users using method patents 3. Injunction again
Slide 25: VELO3D Product Portfolio
VELO3D Product Portfolio 25 Flow™: Print Preparation SW Nickel: • Inconel ® 718 • Inconel ® 625 • Hastelloy ® | C22 • Hastelloy® | X • 2 Proprietary alloys ONE SOFTWARE AND PROCESS PLATFORM… Assure™: Quality Validation Software DRIVING ALL PRINTERS… Sapphire® Shipping Now Base Printer ⌀315mm x 400mm
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Slide 27: Market Dynamics
Market Dynamics Benny Buller, CEO June 23 2021
Slide 28: Dramatically Accelerating Growth of High Value Metal AM Market
Dramatically Accelerating Growth of High Value Metal AM Market 28 Our disruptive technology grows High Value Metal AM TAM We believe VELO3D will enable and alone serve $20B of 2030 market 2030 2019 $180B High value metal parts market $101B High value metal parts market 5% CAGR High value metal AM ma
Slide 29: $100B High Value Metal Parts Direct Market with 5% CAGR
$85B $88B $92B $96B 2015 2016 2017 2018 2019 $100B High Value Metal Parts Direct Market with 5% CAGR 29 $101B Medical Transport Energy Industrial Power Aerospace Fragmented market Largest players: PCC < 10% and Howmet < 5% global market share Metal Machining Market, Technavio 2020 Global Investment
Slide 30: High Value Parts Are Ideal for AM Disruption
High Value Parts Are Ideal for AM Disruption 30 Complex products with many internal parts that are hard to machine: Jet engines Fuel delivery systems Heat exchangers … and many more AM enables Differentiation for which manufacturers will pay a premium Enables shorter lead time Cost competitive with
Slide 31: Solving Big Challenges for a Diverse Customer Base
SPACE AVIATION / DEFENSE ENERGY OTHER Solving Big Challenges for a Diverse Customer Base: Space, Aviation, Energy + 31 LEADING JET ENGINE MANUFACTURER EACH SEGMENT CONTRIBUTES BETWEEN 15- 35% OF 2020 REVENUE1
Slide 32: Honeywell's $400M Supply Chain Problem
Honeywell’s $400M Supply Chain Problem Challenging sourcing of legacy parts (low volume, high mix/value) After a decade <5% producible by commodity AM 32 PROBLEM SOLUTION Parts printable with VELO3D VELO3D qualification completion: Q2’21 $150M+ annual business opportunity for VELO3D
Slide 33: Energy Supplier $50M Lead Time Problem
Energy Supplier $50M Lead Time Problem $6B flow control company – thousands of low volume, high value parts – 1 yr lead time Production disruptions to its Energy customers 33 PROBLEM SOLUTION AM enables spares on demand – only VELO3D can produce geometry Digital inventory is a $500M+ Annual VELO3D o
Slide 34: Jet Engine Manufacturer Development Problem
Jet Engine Manufacturer Development Problem Consolidating >100 engine parts to one with AM 3 years with commodity AM development, >25% power loss to baseline 34 PROBLEM SOLUTION VELO3D eliminates power loss while reducing cost by 50% and lead time by 90% Annual VELO3D Opportunity with this customer
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Slide 36: Sales Growth Strategy
Sales Growth Strategy Dr. Zach Murphree, VP of Sales June 23 2021
Slide 37: Commercial Goals Through 2023 - Revenue
Commercial Goals Through 2023 - Revenue 37 Revenue plan from Management Presentation. Majority Booked or Preordered
Slide 38: Plan Coverage for 2021
Plan Coverage for 2021 Need to ship 24 units to meet plan 38 There is no guarantee that any opportunities in contracting, validation, or Qualification will lead to shipped units.
Slide 39: Commercial Goals Through 2023 - Customers
Commercial Goals Through 2023 - Customers 39 2020A 2021 2022 2023 NUMBER OF BOOKING CUSTOMERS EMEA APAC USA 13 28 52 88 Number of customers by bookings from Management Presentation.
Slide 40: Progress Toward 2021 New Customers Target in Plan
Progress Toward 2021 New Customers Target in Plan 40 There is no guarantee that opportunities in contracting, validation, or Qualification will lead to new customers.
Slide 41: Progress Toward 2022 New Customers Target in Plan
Progress Toward 2022 New Customers Target in Plan 41 There is no guarantee that pre-orders or opportunities in contracting, validation, or Qualification will lead to new customers.
Slide 42: Global Sales Plan for EOY 2021
Global Sales Plan for EOY 2021 | Confidential & Proprietary 42 7 Direct Sales Executives 4 Technical Sales Engineers 1 Reseller – GoEngineer Americas Direct+ 4 Direct Sales Executives 1 Technical Sales Engineer Rest – Regional Agents EMEA Direct+ 1 Channel Manager TNSC – Japan Avaco – Korea DKSH – S
Slide 43: Recent and Planned Growth of Commercial Team
Recent and Planned Growth of Commercial Team 43 EOY '20 Current EOY '21 COMMERCIAL TEAM GROWTH 2021 US EMEA APAC Marketing 20 12 39
Slide 44: Financial Overview
Financial Overview Bill McCombe CFO June 23 2021
Slide 45: Transaction Enables Quick Transition to Recurring Revenue Model
Transaction Enables Quick Transition from Pure Sale to Recurring Revenue Model $1,750K Sale $120K Annual service >50% GM 45 PURE SALE $810K Sale $350K* Estimated ARR >80% ARR GM RECURRING REVENUE MODEL * $60K annual service, $50/hour royalties, 5,800 hours per year
Slide 46: Demonstrated High Margin Unit Economics
Demonstrated High Margin Unit Economics 46 0% 10% 20% 30% 40% 50% 60% 70% 80% $0 $300 $600 $900 $1,200 $1,500 $1,800 $2,100 $2,400 Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 0% 10% 20% 30% 40% 50% 60% 70% 80% $- $300 $600 $900 $1,200 $1,500 $1,800 $2,100 $2,400 Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Recurring Revenue Model Pure Sale
Slide 47: Asset Light Business: Capex vs. Revenue
0 200 400 600 2019 2020 2021 2022 2023 2024 2025 2026 Capex vs. Revenue Capex Revenue Asset Light Business 47 80% of production is performed by contract manufacturers In-house operations limited to final assembly and test Easily scalable manufacturing Average capex 3% of revenue $M 1000 A A
Slide 48: Revenue Forecast with Commercial Evolution
Majority Booked or preordered 2018A 2019A 2020A 2021 2022 2023 2024 2025 2026 ARR Revenue Forecast with Commercial Evolution 48 $2 $15 $19 $26 $89 $162 $296 $546 $937 Launch Market Seeding Broad Commercialization $M
Slide 49: Revenue Drivers: Customers
Revenue Drivers: Customers 49 2018A 2019A 2020A 2021 2022 50% XC3 2022 27% XC4 New Customers1 1 2 5 15 24 24 Total Customers 1 1 3 8 23 47 47 Shipments to Existing Customers - 7 4 7 24 38 Shipments to New Customers 1 2 9 17 24 24 Total Shipments 1 9 13 24 48 62 Average Existing Customers’ Purchases2
Slide 50: Revenue Drivers: Customers
Revenue Drivers: Customers 50 2018A 2019A 2020A 2021 2022 50% XC3 2022 27% XC4 New Customers1 1 2 5 15 24 24 Total Customers 1 1 3 8 23 47 47 Shipments to Existing Customers - 7 4 7 24 38 Shipments to New Customers 1 2 9 17 24 24 Total Shipments 1 9 13 24 48 62 Average Existing Customers’ Purchases2
Slide 51: Revenue Build Up
Revenue Build Up | Confidential & Proprietary 51 2018A 2019A 2020A 2021 2022 50% XC 2022 27% XC Revenue at year of sale1 $2 $15 $17 $23 $78 $78 Recurring Revenue2 $0 $1 $2 $3 $11 $11 Total Revenue $2 $15 $19 $26 $89 $89 Total Units Shipments 1 9 13 24 48 62 Year End Units Operating 1 10 23 47 95 109
Slide 52: Reiterating 2021 Full Year Guidance
Reiterating 2021 Full Year Guidance | Confidential & Proprietary 52 2020A Q1A Q2 Est 1H Est 2021 Est Bookings1 20 6 43 10 24 New Customers2 6 3 54 8 15 Total Shipments 14 4 65 10 24 Total Revenue $19 $1 $7 $8 $26 1 Included 10 SpaceX Sapphire XC orders 2 By shipments 3 Booked 4 units in Q2’21 to dat
Slide 53: Even Stronger Confidence in 2022 Revenue
Even Stronger Confidence in 2022 Revenue 53 Sapphire XC Highlights • Sapphire XC Bookings and pre-orders increased from $47.5M at 1/31 to $81M at 3/31 • Development milestones on track • Expect to print first parts in July • Leasing new 80,000 sq ft facility to expand production
Slide 54: Fast Revenue Growth and Strong Margins
Fast Revenue Growth and Strong Margins 54 2018A 2019A 2020A 2021 2022 2023 2024 2025 2026 Total Reven ue 2 15 19 26 89 162 296 546 937 % Growth 702% 21% 41% 237% 82% 83% 85% 72% Cost of Goods sold 2 10 12 14 59 86 152 264 447 Gross Profit 0 5 6 12 30 76 144 282 490 % Gross Margin 9% 33% 34% 46% 34%
Slide 55: Closing Remarks
Closing Remarks
Slide 56: Complete Team Ready to Scale to Next Level
Complete Team Ready to Scale to Next Level 56 CEO Benny Buller CFO Bill McCombe VP SALES Dr. Zach Murphree CMO Renette Youssef VP ENGINEERING Alex Varlahanov VP SERVICES Chris Trout VP OPERATIONS Chris Brozek VP TECHNOLOGY Dr. Greg Brown VP, GLOBAL BD John Murray
Slide 57: World Class Board and Investors
World Class Board and Investors 57 Stefan Krause CFO BMW Chairman Rolls Royce Executive Board Deutsche Bank CEO Canoo Carl Bass VELO3D Chairman CEO Autodesk TOP TIER FINANCIAL INVESTORS INDEPENDENT BOARD MEMBERS STRATEGIC INVESTORS
Slide 58: VELO3D
VELO”
Slide 59: Appendix
Appendix VELO”
Slide 60: Transaction Overview
Transaction Overview | Confidential & Proprietary 60 • VELO3D to merge with JAWS Spitfire at a pro forma enterprise value of $1.6B (3x ’25E revenue) • 100% primary proceeds; with existing owners maintaining 72% pro forma ownership (3) • 20.9M earnout shares to sellers with 50% earned at $12.50 and 5
Slide 61: Selected Peers
Selected Peers 61 ADVANCED MANUFACTURING TECH- ENABLED COMPANIES LEGACY AM Peers in the additive manufacturing space Accelerated growth profile High gross margins High value add manufacturers Overlapping end markets More traditional / established players with lower growth expectation Primarily focus
Slide 62: Comparison to Key AM Peers
Comparison to Key AM Peers 62 TECHNOLOGY SupportFree Powder Bed Fusion Binder jetting OTHERS WITH SIMILAR TECHNOLOGY Unique ExOne, HP Digital Metal/Hoganas TAM CREATED BY TECHNOLOGY $20B ?? APPLICATIONS Production of High value parts for Aerospace, Energy and Industrial Mass production of low-cost p
Slide 63: Selected Peers Operational Benchmarking
Selected Peers Operational Benchmarking 63 28% 28% 22% 24% 11% 21% 30% 34% 26% 25% 12% 6% 113% 87% 10% 68% 14% 7% 6% 16% 9% 99% 5% 8% 52% 54% 49% 62% 57% 41% 36% 76% 46% 48% 43% 50% Source: VELO3D projections based on company’s estimates, company filings and FactSet as of 03/15/21. Note: Peers are s
Slide 64: Risk Factors
Risk Factors | Confidential & Proprietary 64 Risks Related to Velo3D’s Business and the Company following the Business Combination Risks Related to Velo3D’s Financial Position and Need for Additional Capital • Velo3D is an early-stage company with a history of losses. Velo3D has not been profitable
Slide 65: Risk Factors
Risk Factors Risks Related to Operations • Velo3D operates primarily at a facility in a single location, and any disruption at this facility could adversely affect its business and operating results. • Construction of Velo3D’s planned production facilities may not be completed in the expected timefr