Slide 1: Pushing the boundaries of connectivity. Everywhere.
Pushing the boundaries of connectivity. Everywhere. May 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”) future financial or
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 may excl
Slide 4: Presenters
PRESENTERS Gideon Ben-Zvi, CEO ï® 30+ years of experience (16 as CEO, 14 as active chairman) ï® Co-founded 4 companies – 3 exits ï® Venture Partner, Aviv Venture Capital ï® Co-Founder, Active Chairman, BriefCam (acquired by Canon Japan) ï® Co-Founder and Chairman, Wizcom ï® Co-Founder and CEO, Human
Slide 5: Valens at a Glance
ALENS AT A GLANCE LEADER IN ULTRA HIGH-SPEED CONNECTIVITY SOLUTIONS AT CHIP, CIRCUIT, SYSTEM AND SOFTWARE LEVELS CRITICAL TECHNOLOGY FOR ADAS(1) AND AUTONOMOUS CARS • Superior in-vehicle connectivity widely deployed in Daimler cars • Validated as baseline for the MIPI A-PHY standard due to superior
Slide 6: Valens Executive Leadership
VALENS EXECUTIVE LEADERSHIP Dr. Peter Mertens Chairman of the Board Over 35 years of experience in the automotive industry, including companies such as Volvo Cars (CTO), General Motors Global, Mercedes Benz, and member of the Board of Management of Audi AG. Gideon Ben-Zvi Dror Heldenberg Eyran Lida
Slide 7: Established Foundation for Rapid Growth
$1B+ (2030) $482M 48% Projected Revenue CAGR (2021-26) $3M $67M 33% Revenue CAGR (2010-21) ESTABLISHED FOUNDATION FOR RAPID GROWTH 2010 2012 2016 2019 2020 2021 2026 2030 Valens chipsets Selected as the On the road in Release of 1st Audio-Video integrated into a Mercedes cars, 1st Mercedes industry-
Slide 8: The Next Generation of High-Speed Connectivity
THE NEXT GENERATION OF HIGH-SPEED CONNECTIVITY Automotive Audio-Video Medical Industrial Simple Infrastructure Multi-Gig Bandwidth Error-Free Links Zero Latency(1) Lowest Total System Cost Audio Audio Simple Long-Distance Wiring Video Video Data Data Control Control Power Power Audio Video Data Cont
Slide 9: Investment Thesis
INVESTMENT THESIS 1 2 3 Redefining high-speed, zero latency connectivity in Automotive • Enabling fewer cables, lower weight and lower cost • Rising number of sensors for ADAS requires high-speed connections to enable safety in ADAS & autonomous driving • Valens’ technology selected as basis for ind
Slide 10: Automotive Business
AUTOMOTIVE BUSINESS YWalens
Slide 11: The Car Architecture Evolution: A New Approach Is Needed
THE CAR ARCHITECTURE EVOLUTION: A NEW APPROACH IS NEEDED 1990s Today Tomorrow Sensor: 1-3 sensors, 0-1 displays, 2G Sensor: ~10 sensors, 3-5 cameras, Sensor: >20 – cameras, radars, lidars, 1-5 displays, 4G/LTE >8 displays, 5G/connected cars Speed: 25Mbps Speed: Up to 1Gbps Speed: Up to 16Gbps Valens
Slide 12: Key Market Drivers
KEY MARKET DRIVERS 1 3 High-speed ADAS & autonomous data processing driving 2 4 Simplified car Enhanced architecture passenger safety Confidential | 12
Slide 13: Highest Bandwidth Capabilities Enabling the Data Center on Wheels
1 High-speed data processing VALENS OFFERS THE HIGHEST BANDWIDTH CAPABILITIES IN THE MARKET, ENABLING THE DATA CENTER ON WHEELS Cloud Data Center on Wheels CPU: CPU: Accelerator: Image Accelerator: LiDAR: Memory: Memory: Networking: Networking: Valens is doing for automotive what Nvidia/Mellanox did
Slide 14: Valens Simplifies In-Vehicle Architecture
2 VALENS SIMPLIFIES IN-VEHICLE ARCHITECTURE Simplified car architecture THE PROBLEM Car architecture has been pushed to its limits THE VALENS SOLUTION >2x Bandwidth Fewer Cables/ Lower Weight Lower Cost Less Complexity Less Power Consumption Increased Resilience Embedded Link Diagnostic and Analytic
Slide 15: Valens Is a Key Enabler for ADAS & Autonomous Driving
3 ADAS & autonomous driving VALENS IS A KEY ENABLER FOR ADAS & AUTONOMOUS DRIVING Zero Latency Long Reach High Speed • Sensor fusion (radar, lidar, camera) requires long-reach, high-speed connectivity • ADAS/AD require zero latency to detect and act on safety events within milliseconds Lane Departur
Slide 16: Valens' Superior Performance Protects Lives
4 VALENS’ SUPERIOR PERFORMANCE PROTECTS LIVES Enhanced passenger safety New requirements demand new solutions Data rate rising Legacy automotive exponentially technologies inadequate Cable length increasing Link quality decreasing Number of cables and electronics growing, EMI (electromagnetic with h
Slide 17: Superior Connectivity Across Automotive Applications
VALENS PROVIDES SUPERIOR CONNECTIVITY ACROSS AUTOMOTIVE APPLICATIONS ADAS AND • Sensor fusion and connectivity INFOTAINMENT/ • Display and multimedia box AUTONOMOUS DRIVING • Display connectivity TELEMATICS • Smart antenna/TCU connectivity BODY CHASSIS • Door connectivity HIGH PERFORMANCE COMPUTING
Slide 18: Landmark Automotive Achievements: Mercedes
LANDMARK AUTOMOTIVE ACHIEVEMENTS: “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 driving experien
Slide 19: Landmark Automotive Achievements: Truck and Trailer Connectivity
LANDMARK AUTOMOTIVE ACHIEVEMENTS: VALENS PARTNERED WITH LEADING TRUCK TECHNOLOGY MANUFACTURER TO SOLVE TRUCK AND TRAILER CONNECTIVITY CHALLENGE PROJECT SCOPE • Connectivity of the trailer rear camera to the vehicle cabin display • Valens supports high-speed data links of up to 40m in a very rough an
Slide 20: Valens Sets the Industry Standard for Automotive Connectivity
VALENS SETS THE INDUSTRY STANDARD FOR HIGH-SPEED AUTOMOTIVE CONNECTIVITY Valens technology was selected as the baseline for the MIPI A-PHY standard thanks to its superior performance This puts Valens far ahead of the curve with the first MIPI A-PHY compliant chipsets on the market Confidential | 20
Slide 21: Momentum as Leading Players Adopt the A-PHY Solution
INCREDIBLE MOMENTUM IS BUILDING IN THE INDUSTRY AS LEADING PLAYERS ADOPT THE A-PHY SOLUTION COMPANIES CONTRIBUTING TO MIPI A-PHY DEVELOPMENT(1) Leader in A-PHY “We at Mobileye are working closely with Valens to make sure our next-generation platforms will comply with the MIPI A-PHY architecture.“ -A
Slide 22: Automotive Semiconductor Market at an Inflection Point
AUTOMOTIVE SEMICONDUCTOR MARKET AT AN INFLECTION POINT, PARTICULARLY IN AUTO CONNECTIVITY Global Automotive Semiconductor TAM(1) ($ B) 8% CAGR $68 $45 $60 $43 $2 $8 2021 2026 Valens SAM Rest of TAM Valens High Speed Connectivity Automotive SAM(2) ($ B) 35% CAGR $7.6 $0.9 $2.5 $1.6 $4.3 $0.6 $0.4 $0.
Slide 23: The Valens Edge and Competitive Advantage
THE VALENS EDGE AND COMPETITIVE ADVANTAGE Criteria Competitor #1 Competitor #2 Competitors #3 Speed 8Gbps with roadmap for 3Gbps – 5Gbps 3Gbps – 6Gbps 1Gbps 16Gbps & 32Gbps Supported Format Video & data links Video only Video only Data only DSP Technology YES NO NO YES Performance & Noise Best in in
Slide 24: Audio-Video Business
AUDIO-VIDEO BUSINESS AUDIO-VIDEO BUSINESS
Slide 25: HDBaseT Is the Standard for Audio-Video Connectivity
VALENS’ HDBaseT TECHNOLOGY IS THE STANDARD FOR AUDIO-VIDEO CONNECTIVITY Inventor of HDBaseT 1 technology – an industry standard AUDIO-VIDEO DIGITAL SIGNAGE MEDICAL EDUCATION DISTRIBUTION AND PROJECTORS Co-Founder of the HDBaseT Alliance, with Samsung, LG 2 and Sony Pictures. Over 200 members develop
Slide 26: Valens Chipsets Empower Millions of Audio-Video Products
VALENS CHIPSETS EMPOWER MILLIONS OF PRODUCTS FOR AUDIO-VIDEO MARKET LEADERS RECENTLY LAUNCHED PRODUCTS Samsung QLED experience Logitech Rally PLUS Ultra-HD System LED Tiles Dräger Evita® V800 Ventilator Crestron Mercury X Tabletop Mobile C-arms BrightLink Interactive Ultra Short-Throw Confidential |
Slide 27: COVID-19: New Normal = New Opportunities
COVID-19: NEW NORMAL = NEW OPPORTUNITIES Video conferencing is becoming part of everything we do. Any business meeting. Any classroom. Any entertainment event. Any medical checkup. Accelerated demand for audio-video equipment High-resolution cameras Multiple displays Huddle room Audio-Video accessor
Slide 28: Leveraging Valens Technology to Conquer New Markets
LEVERAGING VALENS TECHNOLOGY TO CONQUER NEW MARKETS Valens is quickly becoming a key supplier for major manufacturers in previously untapped markets INDUSTRIAL • Key supplier for 5 of the leading manufacturers Industry Trend: Significant growth as Industry 4.0 increasingly relies on camera sensors a
Slide 29: Financials
FINANCIALS
Slide 30: Financial Highlights
FINANCIAL HIGHLIGHTS 1 Overall revenue growing at 48% CAGR in 2021-2026 to about $480M — 64% gross margin and 42% EBITDA margin in 2026 2 Already sustainable business, with $67M revenue and 70% gross margin in 2021 70% of 2021 revenues already booked — Break-even in 2024 3 Automotive: Explosive grow
Slide 31: Business Plan
BUSINESS PLAN • 70% of 2021 revenue already booked • 2021-2023 revenues are all based on existing product portfolio & customers • Already selling to various leading automotive tier-1s, including: • A strong pipeline of more than 10 automotive partners evaluating and integrating Valens A-PHY solution
Slide 32: Business Plan (cont'd)
BUSINESS PLAN (CONT’D) Gross Profit ($M) and Margin 76% 70% 67% 66% 64% 66% 62% $310 $210 $130 $74 $43 $47 $55 2020 2021 2022 2023 2024 2025 2026 Adj. EBITDA ($M) and Margin Valens breakeven in 2024 34% 42% $204 16% $110 (20%) (28%) (29%) $32 ($16) ($19) (46%) ($38) ($24) Audio-Video Auto Confidenti
Slide 33: Long-Term Operating Model
LONG-TERM OPERATING MODEL ($M) 2020A 2021E 2022E 2023E 2024E 2025E 2026E 2021E-2026E CAGR Revenue $57 $67 $83 $120 $197 $320 $482 Gross Profit $43 $47 $55 $74 $130 $210 $310 % margin 76% 70% 67% 62% 66% 66% 64% 48% 46% R&D $45 $48 $76 $79 $76 $76 $79 % of revenue 79% 72% 91% 66% 39% 24% 16% SG&A $22
Slide 34: Transaction Overview
TRANSACTION OVERVIEW • Valens Semiconductor to become publicly listed through business combination with PTK (NYSE:PTK) • PTK is a publicly listed special purpose acquisition company with $115M cash held in trust, inclusive of PrimeRose Forward Purchase Agreement Transaction • Following the closing o
Slide 35: Pro Forma Equity Ownership
PRO FORMA EQUITY OWNERSHIP Source ($M) Uses ($M) Pro Forma Valuation(3) Equity of Existing Valens Shareholders $898 Equity of Existing Valens Share Price $10.00 $898 Shareholders SPAC Cash in Trust(1) 105 x Pro Forma Shares Outstanding (M) 115.679 Cash to Balance Sheet 215 PrimeRose (FPA)(2) 10 Esti
Slide 36: Valuation Benchmarking
VALUATION BENCHMARKING EV / Revenue CY25E Recent AutoTech SPACs Median: 2.06x CY22E Analog / Mixed Signal Median: 8.02x 3.46x at DeSPAC 1.68x at 9.45x 8.99x 8.86x 8.57x 7.98x 7.43x 7.47x DeSPAC 7.38x 2.29x at 1.96x at DeSPAC 1.78x at DeSPAC 2.05x at 5.69x 5.17x 4.25x DeSPAC DeSPAC 1.85x 2.15x 1.98x
Slide 37: Operational Benchmarking
OPERATIONAL BENCHMARKING Revenue CAGR CY23E-CY25E Recent AutoTech SPACs Median: 112.7% CY20-CY22E Analog / Mixed Signal Median: 12.6% 242.5% 171.2% 159.8% 65.7% 56.5% 56.7% 54.0% 33.7% 20.5% 18.2% 15.8% 13.1% 12.1% 10.6% 10.2% 8.0% (1) CY21E-23E CY24E-26E Gross Margin CY25E Recent AutoTech SPACs Med
Slide 38: Valuation Framework
VALUATION FRAMEWORK FUNDAMENTAL VALUATION ANCHORED ON 2026 NUMBERS. SOLID EXISTING BOOK OF BUSINESS DE-RISKS INVESTORS WHEN CROSS-CHECKED ON 2023 NUMBERS 2026E 2023E Implied Current Pro Forma Future EV Discounted Enterprise Value Equity Value $4.6B Discounted back 4 79% Discount years at 15% discoun
Slide 39: Thank You
Watiens Thank You < <—S