Arbe Robotics Ltd. · NASDAQ:ARBE
Arbe Robotics — SPAC Merger (March 2021)
41 slides from Arbe Robotics's SPAC merger presentation, March 2021
Slide 1: Investor Presentation
v Radar Revolution. Delivered. v v Investor Presentation March 2021 Private & Confidential
Slide 2: Disclaimer
Disclaimer v This presentation (the “Presentation”) is for information purposes only and has been prepared by Arbe Robotics Ltd. (“Arbe”) and Industrial Tech Acquisitions, Inc. (“ITAC”) to assist interested parties in making their own evaluation with respect to the proposed business combination betw
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) v Use of Projections This Presentation contains financial forecasts with respect to, among other things, Arbe’s unit sales, revenue, gross profit, free cash flow, as well as the price for its products and the number of units sold and certain ratios and other metrics derived there
Slide 4: Industrial Tech Acquisitions Overview
Industrial Tech Acquisitions Overview v Highly Experienced Leadership Industrial Tech Acquisitions, Inc. CEO of Osperity, a leader in AI for industrial computer vision ITAC is a Nasdaq-listed SPAC (NASDAQ: ITAC) which Scott Crist 30+ years of experience across various technology verticals comp
Slide 5: Transaction Overview
Transaction Overview v Overview Business combination between Arbe and ITAC, a publicly-traded special purpose acquisition company Leader and first mover in 4D Imaging Radar technology with superior resolution and significant cost advantage over the competition Attractive Transaction Investing
Slide 6: Arbe Leadership
Arbe Leadership v Management Team Senior Executives Asaf Even Chen Kobi Marenko Dr. Noam Arkind VP R&D Systems Co-Founder, CEO Co-Founder, CTO Leading tech and media startups from 10+ years of experience Avi Bauer seed to acquisition for over 20 years. leading R&D teams. Ph.D. in VP IC Founder of Ta
Slide 7: Company Overview
Company Overview v Arbe is driving a Radar Revolution, paving the way for an autonomous future, v v utilizing an outstanding, truly safe, commercially viable, 4D Imaging technology
Slide 8: Arbe at a Glance
Arbe at a Glance v Product The world’s first ultra high-resolution radar solution on a proprietary chipset 26 $312M Partnerships with in 2025E Founded Global Tier 1s and Auto / Industrial Projected November 2015 OEMs 1 Revenue Team 80 members, 65 R&D, 6 Ph.D.s v v Management An elite team of semicon
Slide 9: History of Arbe
History of Arbe v BUSINESS KEY PARTNERSHIPS Partnership with RFQ win and PO from Vehicles with Arbe leading global Tier 1 leading global OEM based systems go into production Partnership with POs from Investment Founded from and a leading autonomous Nov. 2015 ground vehicles supplier Partnership with
Slide 10: The Automotive Sensor Gap
The Automotive v Sensor Gap Current Radars are a Hazard Unable to meet Level 2+ safety requirements No elevation v v No detection of stationary objects Low-resolution – can’t separate objects near each other No picture – only <50 targets Sensors on the market today are not safe enough to s
Slide 11: The Automotive Sensor Gap - Resolved
The Automotive v Sensor Gap - Resolved Arbe’s 4D Imaging Radar Provides Ultra-High, Camera-Like Resolution, and All-Weather, High- Reliability Performance Execution in the most challenging corner cases Reliable detection of stationary objects v v Dependable in various environmental conditions Trustw
Slide 12: Hype vs. Reality
Hype vs. Reality v Radar and camera are the two types of mainstream automotive sensors utilized today When used together, 4D Imaging Radar and cameras provide uncompromised safety and comfort for Level 1 – Level 3 vehicles, as well as full autonomy v v Some OEMs might choose to add a LIDAR sen
Slide 13: Radar Opportunity in Automotive is "Here & Now"
Radar Opportunity in Automotive is “Here & Now” v Autonomy Level Level 1 Level 2 Level 3 Level 4-5 # of Sensors Radar 3 3-5 +5 6-10 v v per Vehicle1 Camera 2 ≤4 6-8 6-8 LIDAR 0 0 0-1 1-3 % of Cars in 2025E1 25% 65% 10% <1% Automotive Radar TAM 2025E1 $3B $7B $1B $0.1B 1 Industry and Wall Street rese
Slide 14: Radar's Superior Cost Performance Drives Scalability
Radar’s Superior Cost Performance Drives Scalability v $6,000 $2,100 $1,050 $400 $1,000 $150 v v $600 $900 $100 $345 Autonomy Level Level 1 Level 2 Level 3 Level 4-5 Cost per Sensor x # of Sensors ¹ Radar $50 x 3 $115 x 3 $120 x 5 $150 x 6 Camera $50 x 2 $100 x 4 $150 x 7 $300 x 7 LIDAR -- -- $1,000
Slide 15: 4D Imaging Radar – Fundamental & Complementary to Camera
4D Imaging Radar – Fundamental & Complementary v to Camera Long-range, Arbe’s 4D Imaging Radar All weather and Affordable, power high-resolution, lighting efficient offers leading performance 4D Imaging wide field of view Radar at cost-effective pricing. A true enabler of safe ADAS1 Long-range, low-
Slide 16: First Mover & Market Leader in 4D Imaging Radar
First Mover & Market Leader in 4D v Imaging Radar Top Benefits Arbe is the Only Automotive HD, 4D Imaging Radar Solution Functional in various weather and lighting conditions Transmitter 24-48 transmitters, Tx power control Long-range and wide field of view Everest Radar Processing Unit First Be
Slide 17: Arbe's 4D Imaging Radar in Action
Arbe’s 4D Imaging Radar in Action v v v 17
Slide 18: Roadmap: Radar-on-Chip Solution
Roadmap: Radar-on-Chip Solution v Full solution on a single die Next generation corner radar and safety product Highest resolution low-cost radar on the market 8x8 RF + Arbe’s core processing algorithms The result: v v Best-in-class ADAS applications – cruise control, emergency braking,
Slide 19: Roadmap: A Single Chip to Rule Them All
Roadmap: A Single Chip to Rule Them All v Enhancing Everest Camera object classification Real-time imaging radar fusion The result: Utilization in Level 3 vehicles with only radar v v and camera Much better performance and safety Significantly lower cost Arbe’s chipset is also poised
Slide 20: Commercial Overview
v v v Commercial Overview
Slide 21: Significant Commercial Traction with Leading OEMs & Tier 1 Partners
Significant Commercial v Traction with Leading OEMs & Tier 1 Partners 26 A Sample Orders Valeo, Hirain, Weifu, Qamcom and one other leading Tier 1 selected Arbe and are building systems with Arbe’s chipset A Sample purchase and advanced evaluation 3 v v from Denso and 3 other global Tier 1s Purchase
Slide 22: Key Partnership Win With a Leading Tier 1 For a Large, Global Automotive OEM
Key Partnership Win With a Leading Tier 1 v For a Large, Global Automotive OEM Pre-Production Contract for Next-Gen Radars Leading Leading Western, Global European Leading global Tier 1 and Arbe partnered to win a Next-Gen radar RFQ Auto OEM Tier 1 A global automotive OEM has chosen Arbe’s technolog
Slide 23: Landmark Partnership with Qamcom
Landmark Partnership v with Qamcom $150M+ 2020-2025E Projected Revenue Endless Potential in Numerous Johan Lassing, CEO Verticals On & Off the Road v v “Arbe’s 4D Imaging Radar Solution has the potential to be the primary Agriculture Mining & Construction Trucking & sensor candidate for the sensor s
Slide 24: Large & Growing Radar TAM Opportunity
Large & Growing Radar TAM Opportunity v Radar TAM Opportunity Largest, Fastest Growing Segment of the Automotive Sensor Market $11B Automotive Radar1 2025E TAM1 LIDAR1 Camera1 CAGR: $11B 21% $4B v v Industrial 2025E TAM 1 CAGR: $2B NM $4B $13B CAGR: $6B 8% $4B Aerospace & 2020E 2025E Defense 2025E T
Slide 25: High-End Radar Market is Dominated by a Handful of Technology Leaders
High-End Radar Market is Dominated by a Handful of Technology v Leaders 4D / Imaging Radar High Resolution LIDAR Vision Processing Next-Gen Technology Competitors v v 7+ Players 40+ Players 3+ Players Automotive 2020E TAM $4B NM $4B Automotive $11B $2B $6B 2025E TAM Source: Industry and Wall Street
Slide 26: Leading Performance vs. Chip Providers
Leading Performance vs. Chip Providers v Strong Technology & Portfolio Lead Over Competitors Channels 4D Processor Availability Compute Power Affordability v v Source: Arbe’s assessment of competitive landscape 26
Slide 27: Miles Apart from Competitors
Miles Apart from Competitors v Price & Performance vs. Competitors 2304 2000+ + Tier 1s ($150) Channels v v 288 ($100) <500 192 ($190) 192 ($220) 48 ($95) 48 ($160) $0 Price $250 Source: Arbe’s assessment of competitive landscape 27
Slide 28: Financial Overview
v v v Financial Overview
Slide 29: Robust Partner Funnel Supported by Long-Term Revenue Strategy
Robust Partner Funnel Supported by Long-Term v Revenue Strategy Long-Term Revenue Strategy Partner Funnel By Stage Global OEMs Full scale revenues from OEMs in the U.S., Europe, and Japan Asian OEMs 26 Engagements with OEMs / Tier 1s Faster to production than western and traditional OEMs v v 26 A Sa
Slide 30: Revenue Curve Reflects Growing Market Opportunity & Pipeline
Revenue Curve Reflects Growing Market Opportunity v & Pipeline Identified Projects with Deep Engagement Diverse End-Market Opportunity $578M of Cumulative Revenue 2021E-2025E, $600M with $2.8B 1 Expected Order Book by 2025E 6% 100% of 2025E Revenue Based on Existing & Identified Engagements $500M 31
Slide 31: Exceptional Growth from Current Customer Engagements
Exceptional Growth from v Current Customer Engagements Unit Sales Key Highlights (in Thousands) Unit forecasts in the projection period supported by in-process MOUs and anticipated volumes with 15 key customers 2,809 Design wins in key customer specifications 1,296 expected to drive production r
Slide 32: Attractive Margin Profile Underpinning Growth Profile
Attractive Margin Profile v Underpinning Growth Profile Gross Profit & Margin Key Highlights ($ in Millions) 68% 66% 67% Gross margin driven by business mix – scales $209 alongside unit production volumes $112 $6 $7 $52 2021E 2022E 2023E 2024E 2025E Fabless model drives low capital intensity and
Slide 33: Key Investment Highlights
Key Investment Highlights v Large & Growing Proprietary Technology Robust Partner Funnel TAM Opportunity The only available long-range 4D Over 26 partnerships with Leading $4B automotive radar TAM today, Imaging Radar with an unparalleled Automotive OEMs, Tier 1s and increasing to $11B in 2025E 1 co
Slide 34: Transaction Overview
v v v Transaction Overview
Slide 35: Benchmarking Arbe's Operating Metrics vs. Peers
Benchmarking Arbe’s Operating Metrics vs. Peers v Autotech SPACs Compute & Vision Platforms Disruptive Autotech Revenue Growth YoY (%) Median: 100.2% Median: 17.4% Median: 42.9% 207.7% 145.1% 100.2% 93.6% 103.6% 85.3% 66.0% 46.2% 56.3% 43.6% 10.7% 29.4% 17.4% 1 ’24E-’25E ’23E-’24E ’24E-’25E ’24E-’25
Slide 36: Benchmarking Valuations Across Peer Group
Benchmarking Valuations Across Peer Group v Autotech SPACs Compute & Vision Platforms Disruptive Autotech EV / Forward Revenue Median: 3.3x Median: 13.4x Median: 20.4x 24.5x 15.1x 16.3x 12.6x 13.4x 10.1x 1.8x 3.3x 3.3x 2.1x 2.2x 1.0x 3.3x 2 3 1 ’25E ’24E ’25E ’25E ’25E ’25E ’25E ’26E ’21E ’21E ’18E
Slide 37: Transaction Represents an Attractive Discount to Peers
Transaction Represents an Attractive v Discount to Peers ($ in Millions) Selected EBITDA multiple $4,570 range derived from Arbe’s public peers’ 2021E EBITDA multiples1 $3,917 86% Discount Implied future enterprise value calculated by applying the selected EBITDA multiple v v $2,204 range to Arbe’s
Slide 38: Overview of Business Combination
Overview of Business v Combination Sources and Uses 1,2 Pro Forma Valuation ($ in Millions, except per share values) ($ in Millions) Sources Share Price $10.00) Rollover Equity $525 Pro Forma Shares Outstanding 72.330) PIPE 100 Equity Value $723) Cash-in-Trust 1 76 Plus: Existing Arbe Debt 3 4) Tota
Slide 39: Appendix
v v v Appendix
Slide 40: Financial Projection Summary
Financial Projection Summary v ($ in Millions) 2020A¹ 2021E 2022E 2023E 2024E 2025E Summary Income Statement Revenue $0.4 $7.8 $13.0 $76.3 $168.4 $312.1 Growth (%) 1853.3% 67.9% 485.3% 120.9% 85.3% Cost of Goods Sold 0.4 1.8 6.5 24.7 56.6 103.6 Gross Profit $0.0 $6.0 $6.6 $51.5 $111.9 $208.5 Gross M
Slide 41: Thank You
v Radar Revolution. Delivered. Thank v v You Private & Confidential