Slide 1: Valens Semiconductor (NYSE:VLN)
Valens Semiconductor (NYSE:VLN) February 2025 1
Slide 2: Forward-Looking Statements
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 by the use
Slide 3: GAAP and non-GAAP Measures
GAAP and non-GAAP Measures This presentation includes GAAP and non-GAAP measures. Non-GAAP Gross Margin is defined as GAAP Gross Profit excluding share-based compensation, depreciation and amortization expenses, divided by revenue. Non-GAAP Operating Expenses is defined as GAAP Operating Expenses ex
Slide 4: The High-Performance Connectivity Company
The Highest Bandwidth High-speed connectivity for a variety of applications, with no latency. The High-Performance Connectivity The Longest Reach Unprecedented flexibility for system Company Design over the simplest wiring infrastructure. The Lowest Error Rate Reliable, error-free connectivity for S
Slide 5: The Pain Points of Wired Connectivity
The Pain Points of Wired Connectivity Too many cables Distance limitations Video resolution At our homes, offices, Extended reach Handling high-throughput, plants & vehicles compromises signal time-sensitive content integrity transmission Rough environments High costs Installation complexity EMC, EM
Slide 6: Select Customers & Products Empowered by Valens
Select Customers & Products Empowered by Valens Digital Video Entertainment Education Industrial Medical Automotive Signage Conferencing
Slide 7: Sticking to our CORE
Sticking to our CORE The Valens Edge: A DSP-Based Approach to Error Handling Backed by 120+ Patents Valens delivers the most optimized connectivity solutions for long-reach, high-resolution video. We provide superior performance wherever others can’t.
Slide 8: The Valens Difference: Best-in-class EMC Performance
The Valens Difference: Best-in-class EMC Performance Legacy connectivity solutions are Valens’ unique approach to noise handling RESTRICTED by noise, forcing OEMs to: LIBERATES Customers, offering them: ▪ Scalable Bandwidth ▪ Reduce bandwidth ▪ Simple Wiring ▪ Deploy expensive wiring ▪ Long-reach ▪
Slide 9: Our Strategy for Growth
Our Strategy for Growth Leveraging our Core to Advance Existing Verticals and Transform New Ones 1 Established Leadership Pro-AV 2 Transforming New Markets 3 Mergers & Acquisitions Video Conferencing Video Conferencing $350M Changing the Way We Work, TAM by 2028/29 Learn and Live Automotive Automoti
Slide 10: Spotlight on Pro-AV Success
Spotlight on Pro-AV Success Valens Created the Leading Industry Standard and Largest Interoperable Ecosystem Founding Members ▪ Inventor of HDBaseT technology – an audio-video industry standard ▪ Co-Founder of the HDBaseT Alliance, with Samsung, LG and Sony Pictures. Over 200 members developing HDBa
Slide 11: Video Conferencing: Changing the Way We Work, Learn and Live
Opportunity Video Conferencing: Spotlight Changing the Way We Work, Learn and Live Total Addressable Market (TAM)1 Market Drivers $400 ▪ New AI era of intelligent meeting experiences, led by $350 Microsoft Teams and Zoom $300 ▪ Democratization of video conferencing for remote and in-room participant
Slide 12: Spotlight on Automotive Success
Spotlight on Automotive Success Enabling State-of-the-Art Infotainment Systems In Mercedes-Benz Vehicles ▪ On the road with Mercedes since 2020 ▪ The only multi-gig connectivity over unshielded cabling (UTP) Providing Unprecedented Visibility to Truck Drivers Around the World ▪ Exceptional combinati
Slide 13: Automotive OEMs have called for a global standard: MIPI A-PHY
Technological Superiority Automotive OEMs have called for Data Rate Sensor Integration a global standard for next- generation sensor connectivity. That standard is MIPI A-PHY.. Noise Product Immunity/ Maturity EMC ▪ Best-in-class EMC performance ▪ Clear roadmap to ultra-high bandwidth Security Ecosy
Slide 14: A-PHY Ecosystem
A-PHY Ecosystem Platform Vendors Camera & Radar Module Vendors thinCAM NCM25-AC A-PHY FSC300 train camera module e-mirror A-PHY camera SAC8539 & SAC8904 SoCs Huashan-2 ADAS platform head A1000 L ADAS Platform FSM:GO A-PHY 4D A-PHY A-PHY camera modular radar modules platform SoCs supported by EyeQ A-
Slide 15: Automotive: The Foundation for Next-Gen ADAS & Autonomous Systems
Opportunity Automotive: The Foundation for Next-Gen Spotlight ADAS & Autonomous Systems Total Addressable Market (TAM)1 Market Drivers $5,000 ▪ Race towards higher levels of ADAS and Software-Defined $4,500 Vehicles, leading to: $4,000 ▪ Increasing number of high-resolution sensors $3,500 ▪ Complex,
Slide 16: Spotlight on Industrial & Medical Success
Spotlight on Industrial & Medical Success Industrial PCs and Panels Valens New Market Enablers Medical Imaging Leveraging our Automotive and ProAV Chipsets The combination of Machine Vision trends and Valens’ new offering represents a unique opportunity for the company to expand its customer base in
Slide 17: Industrial Machine Vision: Advancing Vision-Driven Automation
Opportunity Industrial Machine Vision: Spotlight Advancing Vision-Driven Automation Total Addressable Market (TAM)1 Market Drivers $500 $450 ▪ Rise of machine vision due to: ▪ Increased factory automation addressing workforce $400 shortage and increased cost of labor $350 ▪ Tighter inspection regula
Slide 18: Single-use Medical: An Industry on the Verge of Transformation
Opportunity Single-use Medical: An Industry on Spotlight the Verge of Transformation Total Addressable Market (TAM)1 Market Drivers ▪ Disposable endoscopes eliminate risk of infection (#2 health hazard, 2024, ECRI) ▪ Sterilization is timely, expensive and generates toxic waste (ESG) 50% 125 million
Slide 19: One Technology. Infinite Possibilities.
One Technology. Infinite Possibilities. VS100 Series VS2000 Series VA6000 Series VS3000 Series VA7000 Series VS6320 Chip Breakthrough chipset for Addition of USB opens First automotive-grade The only uncompressed The first MIPI A-PHY The market’s only ProAV, offering the first new applications for c
Slide 20: Mergers and Acquisitions
Mergers and Acquisitions M&A Strategy Recent Acquisition Pioneer in advanced automation and control technologies Applications: Highly Flexibility to Synergistic selective move quickly opportunities Industrial Robotic Audio-Video control-systems conference rooms $131 million cash to execute on our M&
Slide 21: Revenues
Revenues $30 Annual Quarterly $25 $24.2 $23.5 $23.9 $23.1 $100 $22.5 $21.6 $21.9 $90.7 $20.7 $3.7 $3.5 $90 $4.1 $84.2 $20 $19.1 $2.2 $7.5 $8.7 $16.2 $4.9 $6.1 $80 $17.5 $2.0 $70.7 $16.7 $2.0 $16.0 $70 $26.8 $7.9 $15 $60.0 $14.2 $13.6 $60 $56.9 $13.4 $5.0 $1.0 Millions Millions $1.7 $11.6 $6.6 $50 $2
Slide 22: Key Financial Data
Key Financial Data Annual Annual US$ Millions Q1-2024 Q2-2024 Q3-2024 Q4-2024 2023 2024 Company $84.2 $11.6 $13.6 $16.0 $16.7 $57.9 Cross-Industry Revenue $57.4 $7.2 $8.1 $9.4 $11.7 $36.3 Business Automotive $26.8 $4.4 $5.5 $6.6 $5.0 $21.6 Company 62.5% 59.0% 61.4% 56.4% 60.4% 59.2% Cross-Industry G
Slide 23: Cash Balance, Inventory Level, Working Capital
Cash Balance1,3 Inventory Level Working Capital2 200 180 174.4 30.0 200.0 160 148.4 183.3 142.0 180.0 131.0 163.7 158.8 140 25.0 23.8 160.0 120 140.0 133.6 20.0 100 120.0 Millions Millions Millions 80 15.0 13.8 100.0 10.2 80.0 60 9.3 10.0 60.0 40 40.0 5.0 20 20.0 - - - 1 Cash Balance is defined as c
Slide 24: Long Term Growth Drivers
ADAS Deployment Long Term Growth Drivers & Single Use Endoscopy CAGR ~30% - ~40% Automotive Potential Non-Organic ▪ Commercializatio Upside n of ADAS based Growth models ▪ Adoption of the Industrial ▪ Potential A-PHY standard $220-$300 Machine synergetic Million1 acquisitions Vision ▪ Adoption of th
Slide 25: 2025 Guidance and Goals
2025 Guidance and Goals Revenue Guidance ProAv Industrial Machine $71-$76 Million Partial recovery from the Vision ~23%-31% YoY growth inventory digestion cycle Design Wins Adoption and announcements based commercialization of on the VS6320 and VS6320 based products VA7000 for the video conferencing
Slide 26: Summary
Summary Revenue Growth Diversification Design Wins Cycles Target of X 4-6 Among different Long sales and within 5 years verticals and products life cycle industries provides long term customer engagement and good visibility Profitable Business Strong Cash Balance Model Allows executing Goals: both t
Slide 27: investors@valens.com
wa investorsQ@valens.com
Slide 28: Appendix - GAAP to Non-GAAP Reconciliation
Appendix - GAAP to Non-GAAP Reconciliation ($ Thousands) Q4/24 Q3/24 Q2/24 Q1/24 Q4/23 Q3/23 Q2/23 Q1/23 GAAP gross margin 10,073 9,045 8,344 6,815 13,527 8,338 14,934 15,793 Depreciation and amortization 433 446 180 116 121 114 118 58 Share-based compensation 247 238 243 231 207 198 197 187 NON-GAA