Slide 1: Pushing the Boundaries of Connectivity. Everywhere.
PUSHING THE BOUNDARIES OF CONNECTIVITY. EVERYWHERE. September 2021
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER Forward - Looking Statements Certain statements in this Presentation, including the projections, are forward - looking statements . Forward - looking statements generally relate to future events or PTK Acquisition Corp . ( “ PTK ” ) and Valens Semiconductor Ltd . ’ s (the “ Company ” ) fu
Slide 3: Disclaimer (cont'd): Non-GAAP Financial Measures
DISCLAIMER (CONT ’ D) Non - GAAP Financial Measures This Presentation includes certain financial measures not presented in accordance with GAAP including, but not limited to, Adjusted EBITDA . These non - GAAP financial measures are not measures of financial performance in accordance with GAAP and m
Slide 4: Valens at a Glance
$ 57 $ 69 $ 83 $ 120 $ 197 $ 320 $ 482 $- $100 $200 $300 $400 $500 $600 2020 2021 2022 2023 2024 2025 2026 Confidential | 4 VALENS AT A GLANCE LEADER IN ULTRA HIGH - SPEED CONNECTIVITY SOLUTIONS AT CHIP, CIRCUIT, SYSTEM AND SOFTWARE LEVELS MARKET LEADER • Founder of the HDBaseT ( 2 ) Alliance • Over
Slide 5: Established Foundation for Rapid Growth
ESTABLISHED FOUNDATION FOR RAPID GROWTH $ 69 M $ 3 M $ 482 M 33 % Revenue CAGR ( 2010 - 21 ) 48 % Projected Revenue CAGR ( 2021 - 26 ) Valens tech becomes the de facto industry standard, leading to A/V profitability 2012 ADAS advancements and widespread adoption of MIPI A - PHY, leading to massive r
Slide 6: | Dr. Peter Mertens Chairman of the Board Gideon Ben - Zvi CEO Dror
Confidential | 6 Dr. Peter Mertens Chairman of the Board Gideon Ben - Zvi CEO Dror Heldenberg CFO Eyran Lida Co - founder and CTO Gideon Kedem SVP Automotive Business Gabi Shriki SVP Audio - Video Business Over 20 years of experience in global business management roles in leading semiconductor globa
Slide 7: Investment highlights
Disruptive connectivity technology › Unmatched connectivity speed, performance, latency, and distance › Strong patent portfolio with extensive Digital Signal Processing (DSP) domain expertise Track record of market leadership › Shipped more than 28 million chips to some of the most demanding custome
Slide 8: The Best High-Speed, Long-Reach Digital Connectivity Solution
Confidential | 8 THE BEST HIGH - SPEED, LONG - REACH DIGITAL CONNECTIVITY SOLUTION Audio Data Control Powe r Video Audio Video Data Control Power Audio Video Data Control Power Audio Data Control Powe r Video Simple infrastructure with Lowest Total System Cost Cars are running out of space – there i
Slide 9: Valens Chipsets Empower Millions of Audio-Video Products
Samsung’s “The Wall” Digital Signage VALENS CHIPSETS EMPOWER MILLIONS OF PRODUCTS FOR AUDIO - VIDEO MARKET LEADERS Samsung “ Terrace” Outdoor TV Logitech Rally PLUS Ultra - HD System Dräger Evita® V800 Ventilator Crestron Mercury X Video Conferencing Tabletop Siemens Healthineers 3D Imaging Mobile C
Slide 10: Validated by Automotive Leaders
Confidential | 10 VALIDATED BY AUTOMOTIVE LEADERS “ One of Daimler’s strategic focuses is to be a technological leader in ‘green’ technologies, safety, autonomous driving and connectivity. Valens Automotive is a perfect fit as its architectural benefits, reliability and robustness lead to a superior
Slide 11: Partnered with Leading Truck Technology Manufacturer
VALENS PARTNER ED WITH LEADING TRUCK TECHNOLOGY MANUFACTURER TO SOLVE TRUCK AND TRAILER CONNECTIVITY CHALLENGE Confidential | 11 PROJECT SCOPE • Connectivity of the trailer rear camera to the vehicle cabin display • Valens support s high - speed data links of up to 40m in a very rough and noisy envi
Slide 12: Setting the Standard in Every Industry We Operate
Valens’ technology was selected as the baseline for MIPI A - PHY thanks to its superior performance SETTING THE STANDARD IN EVERY INDUSTRY WE OPERATE Confidential | 12 Superior technology enables Valens to set industry standards as a go - to - market strategy, driving market leadership and maximizin
Slide 13: Valens Is Leading the Growing MIPI A-PHY Ecosystem
VALENS IS LEADING THE GROWING MIPI A - PHY ECOSYSTEM • EyeQ 5 platform will support the MIPI A - PHY standard • Working in partnership with Valens to implement A - PHY architecture “ We ’ re happy to be early adopters of this automotive connectivity standard. Valens is in a leading position with A -
Slide 14: Key Automotive Market Drivers
KEY AUTOMOTIVE MARKET DRIVERS High - speed data processing 1 2 Simplified car architecture 3 ADAS & autonomous driving Confidential | 14 Disruptive connectivity technology Track record of market leadership Setting industry standards Large, fast - growing Automotive SAM Powerful Audio - Video growth
Slide 15: Cloud Data Center on Wheels
Cloud Data Center on Wheels VALENS OFFERS THE HIGHEST BANDWIDTH CAPABILITIES IN THE MARKET, ENABLING THE DATA CENTER ON WHEELS High - speed data processing 1 Valens is doing for automotive what Nvidia/Mellanox did for data centers CPU: Accelerator: Memory: Networking: CPU: Image Accelerator: LiDAR:
Slide 16: Valens Simplifies In-Vehicle Architecture
2 Simplified car architecture THE PROBLEM THE VALENS SOLUTION > 2 x Bandwidth Fewer Cables/ Lower Weight Lower Cost Less Complexity Less Power Consumption Increased Resilience Embedded Link Diagnostic and Analytics Reduced Risk of Recall VALENS SIMPLIFIES IN - VEHICLE ARCHITECTURE Car architecture h
Slide 17: Valens Is a Key Enabler for ADAS & Autonomous Driving
VALENS IS A KEY ENABLER FOR ADAS & AUTONOMOUS DRIVING Park Assistance Surround View Rear Collision Warning Blind Spot Warning Speed Limited Autonomy Lane Departure Warning Lane Keep Assistance Sign Recognition Emergency Braking Collision Fully Autonomous System Pedestrian Cross Traffic Alert Zero La
Slide 18: Advances in ADAS Drive Valens' Growth
ADVANCES IN ADAS DRIVE VALENS ’ GROWTH ( 1 ) Strategy Analytics Automotive Ethernet Market Projections, December 2019 , Yole Automotive Interior Market and Technology Report 2020 and Strategy Analytics ADAS Demand Forecast, May 2020 , and uses Management estimates. Level 2 Level 3 Level 4 Level 5 Ad
Slide 19: New Normal = New Opportunities in Audio-Video
NEW NORMAL = NEW OPPORTUNITIES IN AUDIO - VIDEO High - resolution cameras Multiple displays Huddle room Audio - Video accessories Accelerated demand for audio - video equipment Video conferencing is becoming part of everything we do. Any business meeting. Any classroom. Any entertainment event. Any
Slide 20: Leveraging Valens Technology to Conquer New Markets
LEVERAGING VALENS TECHNOLOGY TO CONQUER NEW MARKETS › Key supplier for 5 of the leading manufacturers Industry Trend: Significant growth as Industry 4.0 increasingly relies on camera sensors and computer vision systems Valens is quickly becoming a key supplier for major manufacturers in previously u
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS Overall revenue growing at 48 % CAGR in 2021 - 2026 to about $ 482 M › 64 % gross margin and 42 % Adjusted EBITDA margin in 2026 Already sustainable business, with $ 69 M revenue and 70 % gross margin in 2021 › Break - even in 2024 Automotive: Significant growth at 109 % CAGR in
Slide 22: Q2 2021 Highlights: Financial
Q 2 - 2021 HIGHLIGHTS Financial › Revenue : $ 17.5 million › Gross profit : $ 12.5 million › Gross margin : 71.2 % › Bookings : $ 35.3 million • Book - to - bill ratio : 2.02 › Total orders backlog : $ 56.5 million • 100 % of 2021 full year revenue fully covered by orders backlog › Automotive revenu
Slide 23: Q2 2021 Highlights: Operational
› Stello chipset released to market and embraced by leading industry players › First - generation VA 6000 automotive chipsets now in mass production and on the road in several car models › The IEEE officially adopted the MIPI A - PHY standard, which is based on Valens technology › Successful bring u
Slide 24: Business Plan
Revenue ($M) Audio - Video Auto BUSINESS PLAN $ 57 $ 69 $ 83 $ 120 $ 123 $ 198 $ 2 $ 7 $ 15 $ 38 $ 55 $ 62 $ 68 $ 82 $ 174 2021 2022 2024 ( 1 ) 2025 2026 2023 2020 $ 146 $ 320 $ 74 $ 197 $ 284 $ 482 Forecasts based on existing customers & products Vast majority of automotive revenues are from 1 st -
Slide 25: Business Plan (cont'd)
Note: “ Adj EBITDA ” means EBITDA before depreciation, amortization and expenses related to equity grants. Gross Profit ($M) and Margin Adj. EBITDA ($M) and Margin Valens breakeven in 2024 Confidential | 25 Disruptive connectivity technology Track record of market leadership Setting industry standar
Slide 26: Long-Term Operating Model
LONG - TERM OPERATING MODEL Note: “ Adj EBITDA ” means EBITDA before depreciation, amortization and expenses related to equity grants ($M) 2020 A 2021 E 2022 E 2023 E 2024 E 2025 E 2026 E 2021 E - 2026 E CAGR Revenue $ 57 $ 69 $ 83 $ 120 $ 197 $ 320 $ 482 48 % Gross Profit $ 43 $ 48 $ 55 $ 74 $ 130
Slide 27: Transaction Structure, Valuation & Financing
Transaction Structure Valuation & Financing › Valens Semiconductor to become publicly listed (NYSE:VLN) through business combination with PTK (NYSE:PTK) › PTK is a publicly listed special purpose acquisition company with $ 115 M cash held in trust , inclusive of PrimeRose Forward Purchase Agreement
Slide 28: Operational Benchmarking
OPERATIONAL BENCHMARKING 66.8% 67.1% 74.4% 66.1% 77.2% 56.5% 64.8% 65.2% 61.3% 61.7% 67.6% NA 65.8% NA 56.9% 64.6% 66.8% 62.0% 20.8% 33.5% 9.1% 13.6% 14.1% 16.5% 31.1% 14.0% 24.8% 28.4% 26.1% NA 10.5% NA 13.0% 25.2% 10.5% 24.2% Source: Company projections and FactSet as of 8 / 30 / 2021 . Note: 2023
Slide 29: De-SPAC Process Timeline
DE - SPAC PROCESS TIMELINE May 25 th 2021 Business combination agreement with PTK signed and announced June 17 th 2021 Filed the first draft of our F - 4 registration statement Aug 27 th 2021 F 4 was approved effective Sep 7 th 2021 Record date for PTK ’ s shareholders Sep 28 th 2021 PTK shareholder
Slide 30: Thank You
Walens Thank You < <<