Slide 1: Valens Semiconductor
Valens Semiconductor (NYSE: VLN) March 2023
Slide 2: Pushing the Boundaries of Connectivity. Everywhere.
Pushing the Boundaries of Connectivity. Everywhere. Leading Provider of Semiconductor Products in the Large and Growing Automotive and Audio-Video Markets Enabling Resilient, Ultra High-speed Wired Connectivity Over Simple, Low-Cost Infrastructure 2
Slide 3: Disclaimer
Disclaimer Forward-Looking Statements Certain statements in this presentation (this "Presentation") are “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified
Slide 4: Valens Semiconductor At a Glance
Valens Semiconductor At a Glance Notable Track Record in the Audio-Video and Automotive Markets Audio-Video Automotive Leveraging Our Superior Connectivity, Deployed Across Multiple Critical Technology for ADAS 1 and Autonomous Connectivity Verticals Driving Cars Technology Across Both Businesses Mu
Slide 5: Leveraging Disruptive Connectivity Offerings Across Both Business Segments
Leveraging Disruptive Connectivity Offerings Across Both Business Segments Audio-Video Automotive The incumbent solution for high-speed long reach audio-video connectivity. Unique technology – the only high-speed connectivity solution supporting multi-gigabit The de-facto industry standard, supporte
Slide 6: Powering Millions of Audio-Video Products Globally
Powering Millions of Audio-Video Products Globally Samsung’s “The Wall” Logitech Rally PLUS Samsung “Terrace” Digital Signage Ultra-HD System Outdoor TV Dräger Evita® V800 Crestron FLEX Video Siemens Healthineers Epson BrightLink Interactive Ventilator Conferencing 3D Imaging Mobile C-Arm Ultra Shor
Slide 7: Growing Diversity of Business Opportunities in Audio-Video Connectivity
Growing Diversity of Business Opportunities in Audio-Video Connectivity Video Conferencing in Command and Control Corporations and Education Industrial Medical Imaging Signage Providing seamless video conferencing Industry 4.0 increasingly relies on Integrated in diagnostic equipment, Commercial adv
Slide 8: Florida Modernizes Classrooms with Valens Semiconductor Audio-Video Connectivity Products
Florida Modernizes Classrooms with "Florida's largest public school district's schools and teachers can now provide learning experience to a much broader audience. Logitech's Valens Semiconductor Audio-Video superb camera technology, coupled with Valens Semiconductor's extension solution are empower
Slide 9: Automotive Connectivity Market – Key Drivers
Automotive Connectivity Market – Key Drivers Valens Semiconductor Will Play an Essential Role in Reliable ADAS & Autonomous Driving Today’s Car Architecture has Been Pushed to its Limits • Space, weight and complexity • Driving a growing need for increased bandwidth, zero latency, and long- reach co
Slide 10: Valens Provides a Future Proof Connectivity Technology
Valens Provides a Future Proof Connectivity Technology, and is Well-Positioned with a Holistic Offering The Only High-speed Connectivity Solution Supporting Multi-gigabit Connectivity Over Unshielded Harness Infotainment & Telematic Units (2Gbps VA6xxx chipset family) Symmetric Data Connectivity (EC
Slide 11: Valens’ First Generation VA6000 Validated By Automotive Leaders
“One of Daimler’s strategic focuses is to be a technological Valens’ First Generation VA6000 leader in ‘green’ technologies, safety, autonomous driving Validated By Automotive Leaders and connectivity. Valens Automotive is a perfect fit as its architectural benefits, reliability and robustness lead
Slide 12: Valens’ First Generation VA6000 Validated By Automotive Leaders
Valens’ First Generation VA6000 Validated By Automotive Leaders Valens Partnered with Stoneridge, a Leading Truck Technology Manufacturer, to Solving a Critical Safety Hazard and Solve a Tractor Trailer Connectivity Challenge Reducing Fleet Operating Costs Tackle Visibility Limitations (VA6000) • Pr
Slide 13: Valens Semiconductor VA7000 Chipsets Gaining Traction
Valens Semiconductor VA7000 Chipsets Gaining Traction Participating in Bids, Moving Towards Adoption by Automotive OEMs Progressing Towards Mass Industry Standard-Setter Valens VA7000 Strong Ecosystem Momentum Production Defining A-PHY Connectivity Industry-First Expanding Adoption Design Wins First
Slide 14: Valens’ Addressable Market Will Be Further Fueled by Growing Adoption of ADAS and Autonomous Driving
Valens’ Addressable Market Will be Further Fueled by the Growing Adoption of ADAS and Autonomous Driving High-Speed Video Connectivity Today Future ADAS1 Automotive TAM (2025-2026) Level 2/2+ Level 3 Level 4 Level 5 ~ 100 million cars2 are expected to be manufactured per year Eyes Off Mind Off Feet
Slide 15: Q4 and Full Year 2022 Highlights
Q4 and Full Year 2022 Highlights Automotive Audio-video Record Quarterly and Annual Revenues Strong Sales of the VA6000 Chipsets Integrated Florida’s Largest County Modernizes Greater than expected audio-video revenues. into most Mercedes Benz car models Classrooms Completed first phase of installat
Slide 16: Maximizing ESG Opportunities and Managing ESG risks
Maximizing Environmental, Social and Governance (ESG) Opportunities Key Accomplishments and Managing ESG risks Environmental Target carbon work plan neutrality by 2039 Mission Enhance and accelerate connectivity in “Our goal is to push the the dynamic and growing automotive and audio-video markets b
Slide 17: UN Sustainable Development Goals (SDGS)
UN Sustainable Development Goals (SDGS) Valens Semiconductor’s Core Business and ESG Strategies are Applicable to the Below SDGs: GOOD HEALTH AND WELL- INDUSTRY, INNOVATION & CLIMATE ACTION BEING INFRASTRUCTURE • Help reduce the emissions and overall • Key enabler of lifesaving ADAS • Contribute to
Slide 18: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights Fourth Quarter 2022 vs. Fourth Quarter 2021 › Revenue: $23.5 million › Revenue: $20.7 million › Gross profit1: $16.0 million › Gross profit1: $14.8 million › Gross margin: 68.3% (non-GAAP2: 69.2%) › Gross margin: 71.2% (non-GAAP2: 71.5%) › Adjusted EBITDA3: $(4.6)
Slide 19: Full Year Financial Highlights
Full Year Financial Highlights Year Ended Year Ended December 31, 2022 vs. December 31, 2021 › Revenue: $90.7 million › Revenue: $70.7 million › Gross profit1: $63.4 million › Gross profit1: $50.6 million › Gross margin: 69.9% (non-GAAP2: 70.7%) › Gross margin: 71.6% (non-GAAP2: 71.8%) › Adjusted EB
Slide 20: Expected Adjusted EBITDA Breakeven Towards End of 2023, and Cashflow Positive Starting 2024
Expected1 Adjusted EBITDA Breakeven Towards End of 2023, and Cashflow Positive Starting 2024 Remain focused on • Optimizing margins • Targeting Adjusted • Ultimate goal is to • Increasing revenues achieve and then delivering value to year after year • Diligently managing EBITDA breakeven continue to
Slide 21: Summary
Summary Large addressable markets - Automotive and Audio-Video Leveraging disruptive connectivity technology across both businesses Track record of leadership driving increased revenues Compelling financial model with clear path to profitability 21
Slide 22: Thank you
Thank you investors@valens.com www.valens.com
Slide 23: Appendix
\Wratens Appendix
Slide 24: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation of Net Loss to Adjusted EBITDA Three Months Ended Year Ended December 31, December 31, 2022 2021 2022 2021 Net Loss (7,317) (7,973) (27,667) (26,534) Adjusted to exclude the following: Change in fair value of Forfeiture Shares 865 173 (2,907) 173 Financial expense (income), net (1,684