Velo3d, Inc. · NASDAQ:VELO
Velo3d — SPAC Merger (March 2021)
58 slides from Velo3d's SPAC merger presentation, March 2021
Slide 1: Build the Impossible
Build the Impossible Disruptive 3D Metal Printing for Mass Adoption MARCH 2021
Slide 2: Disclaimer
Disclaimer This confidential presentation (the “presentation”) is being delivered to you by Jaws Spitfire Acquisition Corporation (“Jaws Spitfire”) and Velo3D, Inc. (“Velo3D”) for use by Velo3D and Jaws Spitfire in connection with their proposed business combination and the offering of the securitie
Slide 3: Disclaimer
Disclaimer Private Placement The securities to which this presentation relates have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction. This presentation relates to securities that Jaws Spitfire intends to offer i
Slide 4: JAWS Spitfire Overview
JAWS Spitfire Overview JAWS Spitfire team brings an exceptional track JAWS S PITFIRE L EA D ERS HIP record of investing and growing multi-billion dollar Barry Sternlicht platforms in the public markets across a wide CHAIRMAN industry spectrum • Created several multi-billion dollar public companies •
Slide 5: JAWS Spitfire VELO3D Investment Thesis
JAWS Spitfire VELO3D Investment Thesis 1 Exceptional management team Highly-experienced team led by CEO Benny Buller and prior public company CFO Bill McCombe 2 Differentiated additive manufacturing technology platform Leading full-stack AM solution producing high value-add, mission critical compone
Slide 6: Transaction Summary
Transaction Summary TRANSACTION STRUCTURE C A P I TA L S T R U C T U R E JAWS Spitfire Acquisition Corporation (NYSE:SPFR) is a Post-transaction, ~$470M on balance sheet (1) publicly listed special purpose acquisition company with to accelerate growth and strategic opportunities $345M cash in trust
Slide 7: Track Record Delivering on Impossible Missions
Track Record Delivering on Impossible Missions Benny Buller Bill McCombe FOUNDER, CEO CFO Technology unit of Israeli Intelligence Chief Financial Officer, Maxar National Security Award at age 29 Chief Financial Officer, HZO 7 | Confidential & Proprietary
Slide 8: VELO3D at a Glance
VELO3D at a Glance CO M PA NY OVERVI EW K E Y S TAT I S T I C S Founded in 2014 $150M raised to date from high-profile investors $35B+ 92% 48 SAM REVENUE CAGR PATENTS Revolutionary additive manufacturing (AM) technology to deliver complex, in 2030 2020-2026 Today high-value metal parts SupportFree P
Slide 9: Metal Additive Manufacturing (AM): High Interest but Low Adoption
Metal Additive Manufacturing (AM): High Interest but Low Adoption PROMISE R E A L I T Y o f 1 st G E N E R AT I O N A M Consolidate complex assemblies containing Can’t produce required designs dozens of parts into one Performance degradation Higher performance products, Too hard to implement 10x sho
Slide 10: VELO3D Cracked the Code of Metal AM
VELO3D Cracked the Code of Metal AM Highly differentiated technology Unleashing AM adoption in $100B enabling production of holy-grail high value production market parts behind pursuit of AM Selling full-stack >$1M and ARR Deep technology: 6 years, production solution $150M of development, protected
Slide 11: Building the Impossible: Systems in Years
Building the Impossible: 22 Systems in 3 Years Raptor engine a breakthrough in SpaceX rocket engine technology VELO3D Investor VELO3D technology critical for SpaceX’s most efficient and challenging engine Powering breakthrough of Super- Heavy and Starship launch costs 1 System 11 | Confidential & Pr
Slide 12: Big and Growing Market
VELO” Big and Growing Market
Slide 13: Dramatically Accelerating Growth of High Value Metal AM Market
Dramatically Accelerating Growth of High Value Metal AM Market 2019 2030 Our disruptive technology $180B High value grows High Value Metal AM TAM metal parts $101B market High value 5% C AGR We believe VELO3D will enable and metal parts High value market $35B alone serve $20B of 2030 market 3 0% CAG
Slide 14: High Value Parts Are Ideal for AM Disruption
High Value Parts Are Ideal for AM Disruption AM enables Differentiation for which manufacturers will pay a premium Enables shorter lead time Complex products with many internal parts that Cost competitive with incumbent are hard to machine: technologies Jet engines Fuel delivery systems Heat exchang
Slide 15: Why VELO3D Will Unleash Explosive Market Growth
Why VELO3D Will Unleash Explosive Market Growth Commodity Incumbents* SupportFree Technology Powder Bed Fusion Powder Bed Fusion Reproduce legacy Yes No Key to parts without redesign unleashing adoption Produce optimal designs without Yes No performance degradation * Current high value AM marketshar
Slide 16: We Unlock Large Scale Opportunities
We Unlock Large Scale Opportunities
Slide 17: Solving Big Problems for a Diverse Customer Base
Solving Big Problems for a Diverse Customer Base: Space, Aviation, Energy + S PAC E A V I AT I O N / DEFENSE LEADING JET ENGINE MANUFACTURER ENERGY OTHER EACH SEGMENT CONTRIBUTES BETWEEN 15-35% OF 2020 REVENUE1 17 | Confidential & Proprietary [1] Historical financial results have not been audited or
Slide 18: Honeywell's $400M Supply Chain Problem
Honeywell’s $400M Supply Chain Problem PROBLEM SOLUTION Challenging sourcing of Parts printable with VELO3D legacy parts (low volume, high mix/value) After a decade <5% VELO3D qualification producible by commodity AM completion: Q2’21 18 | Confidential & Proprietary
Slide 19: Energy Supplier $50M Lead Time Problem
Energy Supplier $50M Lead Time Problem PROBLEM SOLUTION $6B flow control company – AM enables spares on thousands of low volume, high demand – only VELO3D can value parts – 1 yr lead time produce geometry Production disruptions Digital inventory is a to its Energy customers >$500M/year VELO3D opport
Slide 20: Jet Engine Manufacturer Development Problem
Jet Engine Manufacturer Development Problem PROBLEM SOLUTION Consolidating >100 engine VELO3D eliminates power parts to one with AM loss while reducing cost by 50% and lead time by 90% 3 years with commodity AM development, >25% power $100M+ opportunity loss to baseline 20 | Confidential & Proprieta
Slide 21: Disruptive and Defensible Technology
Disruptive and Defensible Technology
Slide 22: Game-changing SupportFree Technology
VELO3D Incumbent commodity AM Game-changing requires supports that can be internal and inaccessible SupportFree Technology This generally prevents the VELO3D technology can production of parts with produce any design, even those with complex internal geometries most complex internal geometries 22 |
Slide 23: Breakthrough is Enabled by Full-Stack Solution
Breakthrough is Enabled by Full-Stack Solution Flow™ Assure™ Print Preparation SW Quality Validation Sapphire® Metal AM Family of Printers U N D E R LY I N G M A N U F A C T U R I N G P R O C E S S 23 | Confidential & Proprietary
Slide 24: VELO3D is at least 5 years ahead of any competition
“VELO3D is at least 5 years ahead of any competition” – HEAD OF AM, 24 | Confidential & Proprietary
Slide 25: Technology Protected by Deep IP Moat
Technology Protected by Deep IP Moat 48 systems, methods and composition of matter granted patents 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 against produced
Slide 26: Proven Traction and Growth
VELO” Proven Traction and Growth
Slide 27: Commercial Evolution
Commercial Evolution Broad Commercialization $M $937 $546 Majority Booked or $296 preordered Market Seeding $162 Launch $89 $15 $19 $26 $2 2018A 2019A 2020A 2021 2022 2023 2024 2025 2026 ARR Historical financial results have not been audited or reviewed 27 | Confidential & Proprietary
Slide 28: Growth Drivers
Growth 1 “Blue ocean” market Drivers 2 Land and expand strategy 3 Expand competitive advantage with new products 4 Accelerate new customer acquisition 28 | Confidential & Proprietary
Slide 29: Creating a $20B Blue Ocean
For many customers seeking: Differentiated performance Reduced production lead times Creating a $20B “Blue Ocean” Cost savings VELO3D is the only option to transition to AM 29 | Confidential & Proprietary
Slide 30: Growth by Proven Land & Expand Strategy
Growth by Proven Land & Expand Strategy Customer base is 100% focused on production Driven by growth in part numbers and parts quantities Systems ordered by customer 22 Space X Taiyo *+ 12 LEADING JET ENGINE *+ Leading MANUFACTURER 6 DMP + 4 3 1 *+ 2 Knust First order 2 years 3 years * Including Sap
Slide 31: Sapphire XC, Shipping 2021, Further Expands Addressable Market
Sapphire XC, Shipping 2021, Further Expands Addressable Market LARGER MARKET Producing parts of 400% larger volume B I G G E R I M PAC T Dropping parts cost by 65-80% serving wider range of applications C U R R E N T B A C K L O G O F S A P P H I R E X C S Y S T E M S : $ 4 7. 5 M 31 | Confidential
Slide 32: Accelerating Customer Base Growth by Geographical Expansion and Distribution Partnerships
Accelerating Customer Base Growth by Geographical Expansion and Distribution Partnerships Booking Customer Base Distribution Partners by Geography 376 232 136 88 52 13 28 1 7 2018A 2019A 2020A 2021 2022 2023 2024 2025 2026 USA Asia-Pacific EMEA 32 | Confidential & Proprietary
Slide 33: Strong Financials
VELO” Strong mlatclalelts| is
Slide 34: Transaction Enables Quick Transition from Pure Sale to Recurring Revenue Model
Transaction Enables Quick Transition from Pure Sale to Recurring Revenue Model PURE SALE RECURRING REVENUE MODEL $1,750K Sale $810K Sale $120K Annual service $350K* Estimated ARR >50% GM >80% ARR GM * $60K annual service, $50/hour royalties, 5,800 hours per year 34 | Confidential & Proprietary
Slide 35: Demonstrated High Margin Unit Economics
Demonstrated High Margin Unit Economics Pure Sale Recurring Revenue Model Revenue & Gross Profit ($000s) Cumulative Gross Margin (%) Revenue & Gross Profit ($000s) Cumulative Gross Margin (%) $2,400 80% $2,400 80% $2,100 70% $2,100 70% $1,800 60% $1,800 60% $1,500 50% $1,500 50% $1,200 40% $1,200 40
Slide 36: Asset Light Business
Asset Light Business $M 600 Capex vs. Revenue 1000 80% of production is performed by contract manufacturers 400 In-house operations limited to final assembly and test 200 Easily scalable manufacturing Average capex 3% of revenue 0 2019A 2020A 2021 2022 2023 2024 2025 2026 Capex Revenue Historical fi
Slide 37: Strong Visibility into 2022 Revenue
Strong Visibility into 2022 Revenue $M $14.3 $88.8 $42.2 $26.4 Preorders $15.8 $6.0 Bookings $1.8 $1.8 $26.3 $4.0 $18.7 2020A Recurring & Sapphire XC Bookings 2021 Recurring & Sapphire XC Bookings 2022 Service Backlog Growth Service Backlog Growth Historical financial results have not been audited o
Slide 38: Fast Revenue Growth and Strong Margins
Fast Revenue Growth and Strong Margins 2018A 2019A 2020A 2021 2022 2023 2024 2025 2026 Total Revenue 2 15 19 26 89 162 296 546 937 % Growth 702% 21% 41% 237% 82% 83% 85% 72% ARR 0 0.1 0.3 5 29 66 123 213 360 Cost of Goods sold 2 10 12 14 59 86 152 264 447 Gross Profit 0 5 6 12 30 76 144 282 490 % Gr
Slide 39: Team
VELO” Team
Slide 40: Complete Team Ready to Scale to Next Level
Complete Team Ready to Scale to Next Level CEO CMO VP SALES VP, GLOBAL BD CFO Benny Buller Renette Youssef Dr. Zach Murphree John Murray Bill McCombe VP ENGINEERING VP TECHNOLOGY VP OPERATIONS SR DIRECTOR SERVICES Alex Varlahanov Dr. Greg Brown Chris Brozek Chris Trout 40 | Confidential & Proprietar
Slide 41: World Class Board and Investors
World Class Board and Investors INDEPENDENT TOP TIER FINANCIAL S T R AT E G I C BOARD MEMBERS INVESTORS INVESTORS Carl Bass Stefan Krause VELO3D Chairman CFO BMW CEO Autodesk Chairman Rolls Royce Executive Board Deutsche Bank CEO Canoo 41 | Confidential & Proprietary
Slide 42: JAWS Spitfire VELO3D Investment Thesis
JAWS Spitfire VELO3D Investment Thesis 1 Exceptional management team Highly-experienced team led by CEO Benny Buller and prior public company CFO Bill McCombe 2 Differentiated additive manufacturing technology platform Leading full-stack AM solution producing high value-add, mission critical compone
Slide 43: Transaction Overview and Comparables
Transaction Overview and Comparables
Slide 44: Transaction Overview
Transaction Overview Transaction Summary Pro Forma Capitalization and Ownership • VELO3D to merge with JAWS Spitfire at a pro forma enterprise value of Pro Forma Valuation $1.6B (3x ’25E revenue) Pro forma shares outstanding (M) (1) 208.6 Illustrative share price $10 • 100% primary proceeds; with ex
Slide 45: Selected Peers
Selected Peers A DVA NCED M A NU FACTU RING T E C H - E N A B L E D CO M PA N I E S LEGACY AM Peers in the additive manufacturing High value add manufacturers Primarily focused on polymers space Overlapping end markets Legacy technologies, mostly off-patent Accelerated growth profile by now More tra
Slide 46: Comparison to Key AM Peers
Comparison to Key AM Peers TECHNOLOGY SupportFree Powder Bed Fusion Binder jetting OTHERS WITH SIMILAR ExOne, HP TECHNOLOGY Unique Digital Metal/Hoganas TA M C R E AT E D B Y TECHNOLOGY $20B ?? Production of High value parts for Mass production of low-cost parts for A P P L I C AT I O N S Aerospace,
Slide 47: Selected Peers Operational Benchmarking
Selected Peers Operational Benchmarking Advanced Manufacturing Tech-Enabled Companies Legacy AM Mean: 45% Mean: 27% Mean: 7% Median: 41% Median: 9% Median: 7% CY’20A- 113% 87% 99% CY’22E 68% Overall Mean: 35%(1) Overall Median: 16%(1) REVENUE CAGR 10% 14% 16% 7% 6% 9% 8% 5% 21-25E 21-25E 21-25E 21-2
Slide 48: Selected Peers Valuation Benchmarking
Selected Peers Valuation Benchmarking Advanced Manufacturing Tech-Enabled Companies Legacy AM Mean: 6.6x Mean: 7.2x Mean: 5.0x Median: 6.4x 15.0x Median: 6.1x Median: 5.0x EV / CY’21E Overall Mean: 6.9x(1) REVENUE 2.0x at Overall Median: 6.1x(1) DeSPAC 10.5x 2.4x at 2.4x at DeSPAC DeSPAC 7.6x 7.3x 7
Slide 49: Valuation Framework
Valuation Framework Implied Future EV Implied Discounted EV Implied Post-Money EV $5,455 Midpoint represents 39% upside to transaction value $3,820 $2,630 Midpoint represents 187% upside to transaction value $1,614 $1,840 ($ in millions; implied future discounted EV rounded to nearest $5m) EV / 2025
Slide 50: Appendix
Appendix
Slide 51: $100B High Value Metal Parts Direct Market Growing $5B/Year
$100B High Value Metal Parts Direct Market Growing $5B/Year $101B $96B $92B Medical $85B $88B Transport Energy Fragmented market Industrial Largest players: Power PCC < 10% and Howmet < 5% Aerospace global market share 2015 2016 2017 2018 2019 Metal Machining Market, Technavio 2020 Global Investment
Slide 52: What Is Powder Bed Fusion (PBF)?
What Is Powder Bed Fusion (PBF)? 85% O F M E TA L A M M A R K E T Laser melting of powder leaves small solid Significant powder remains Piston steps down Recoating of powder 52 | Confidential & Proprietary
Slide 53: What are supports?
What are supports? INCUMBENT COMMODITY AM V E LO 3D Outcome when produced Supports added as without supports anchors to prevent The desired outcome part destruction in build Outcome, as desired 53 | Confidential & Proprietary
Slide 54: Risk Factors
Risk Factors Below is a summary of certain risks and uncertainties relating to the Business Combination and the business of Velo3D, Inc. (“Velo3D”). The risks and uncertainties described below are not the only ones Velo3D faces, and you should consider them together with all of the other information
Slide 55: Risk Factors
• Risk Factors The loss of one or more of Velo3D’s significant customers, a significant reduction in their orders, their non-exercise of options, their inability to perform under their contracts, their unwillingness to extend contractual deadlines if there is a delay in Velo3D’s ability to produce t
Slide 56: Risk Factors
• Risk Factors Velo3D’s products and services are or may be distributed in more than 25 countries around the world. Accordingly, Velo3D faces significant operational risks from doing business internationally. For current and potential international customers whose contracts are denominated in U.S. d
Slide 57: Risk Factors
Risk Factors Risks Related to Velo3D’s Financial Condition and Need for Additional Capital • Velo3D is an early stage company with a history of losses, and its future profitability is uncertain. It has experienced net losses and negative cash close in each year since inception. Velo3D expects that i
Slide 58: Risk Factors
Risk Factors General Risks • Economic downturns and political and market conditions beyond JAWS Spitfire’s control could adversely affect its business, financial condition and results of operations. • Velo3D is exposed to the risk of natural disasters, political events, health crises such as the glo