Valens Semiconductor Ltd. · NYSE:VLN
Valens Semiconductor — Investor Presentation (August 2022)
23 slides from Valens Semiconductor's investor presentation, August 2022
Slide 1: Valens Semiconductor
Valens Semiconductor (NYSE: VLN) August 2022
Slide 2: Disclaimer
Disclaimer 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
Slide 3: Pushing the Boundaries of Connectivity. Everywhere.
Pushing the Boundaries of Connectivity. Everywhere. Leading Provider of Semiconductor Products in the Large and Growing Automotive and Audio-Video Markets Enabling Resilient, Ultra High-speed Wired Connectivity Over Simple, Low-Cost Infrastructure 3
Slide 4: Valens Semiconductor At a Glance
Valens Semiconductor At a Glance Significant Standard-Setting Automotive Audio-Video first mover < and First-mover Critical Technology for Superior Connectivity, advantage Adopted by Industry Leaders ADAS 1 and Autonomous Deployed Across Driving Cars Multiple Verticals Notable track record in the au
Slide 5: Investment Highlights
Investment Highlights Large, fast-growing addressable markets Automotive – one-stop-shop for wired high-speed connectivity › Rising number of sensors for ADAS requires smart high-speed connectivity › Automotive SAM expected to reach at least $8B by 2026 Audio-Video – market leader, deployed in milli
Slide 6: Go-to Market Strategy: Gain First-Mover Advantage by Setting Standards in Fast-Growing Industries
Go-to Market Strategy: Gain First-Mover Advantage by Setting Standards in Fast-Growing Industries Audio-Video Automotive The incumbent for high-speed audio-video connectivity. In mass production with since 09/2020, with VA6000, 1st-generation The de-facto industry standard, supported by the HDBaseT
Slide 7: Powering Millions of Audio-Video Products Globally
Powering Millions of Audio-Video Products Globally Samsung’s “The Wall” Logitech Rally PLUS Samsung “Terrace” Digital Signage Ultra-HD System Outdoor TV Dräger Evita® V800 Crestron FLEX Video Siemens Healthineers Epson BrightLink Interactive Ventilator Conferencing 3D Imaging Mobile C-Arm Ultra Shor
Slide 8: Growing Diversity of Business Opportunities in Audio-Video Connectivity
Growing Diversity of Business Opportunities in Audio-Video Connectivity The Next Normal – In-person and hybrid Set to conquer corporate and education environments a broad range of verticals • Video Conferencing – • Industrial in Corporates and Education Significant growth as Industry 4.0 increasingl
Slide 9: Automotive Connectivity Market – Key Drivers
Automotive Connectivity Market – Key Drivers Valens Semiconductor Will Play an Essential Role in Reliable ADAS & Autonomous Driving Today’s Car Architecture has Been Pushed to its Limits • Space, weight and complexity • Driving a growing need for increased bandwidth, zero latency, and long-reach con
Slide 10: Valens Provides a Future Proof Technology, and is Well-Positioned with a Holistic Offering
Valens Provides a Future Proof Technology, and is Well-Positioned with a Holistic Offering Unique and Comprehensive Set of High-Speed Connectivity Solutions for Today and Tomorrow’s Cars Symmetric Non-Symmetric Data Connectivity Video Connectivity (ECU to ECU) (Sensor to ECU, ECU to Display) Infotai
Slide 11: Validated By Automotive Leaders
“One of Daimler’s strategic focuses is to be a technological Validated By Automotive Leaders 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 experience
Slide 12: Validated By Automotive Leaders
Validated By Automotive Leaders Valens Partnered with Stoneridge, a Leading Truck Technology Manufacturer, to Solving a Critical Safety Hazard and Solve a Tractor Trailer Connectivity Challenge Reducing Fleet Operating Costs Tackle Visibility Limitations (VA6000) • Provide video connectivity between
Slide 13: The Next Generation, The VA7000, is Gaining Traction
The Next Generation, The VA7000, is Gaining Traction First-Mover Advantage Expanding Ecosystem Continue to make progress with Standard-Setter – A-PHY Connectivity VA7000 the VA7000 evaluation kits shipped to more than 30 prospective customers and partners, including Was first-in-industry to ship • 8
Slide 14: Valens Semiconductor is Leading the Growing MIPI A-PHY Ecosystem
Valens Semiconductor is “We at Mobileye are working closely with Valens to make sure our next- generation platforms will comply with the MIPI A-PHY architecture.“ Leading the Growing Amnon Shashua, Founder & CEO MIPI A-PHY Ecosystem “We’re happy to be early adopters of this automotive connectivity s
Slide 15: Valens' Current Addressable Market Will be Further Fueled by the Growing Adoption of ADAS and Autonomous Driving
Valens’ Current Addressable Market Will be Further Fueled by the Growing Adoption of ADAS and Autonomous Driving High-Speed Video Connectivity Today Future ADAS1 and AD1 Automotive TAM (2025-2026) Level 2/2+ Level 3 Level 4 Level 5 • ~ 100 million cars2 are expected to be Feet Off Hands Off Eyes Off
Slide 16: Q2 2022 Highlights
Q2 2022 Highlights Automotive Audio-video Record Quarterly Revenues Strong Continue to Advance with Evaluation announced a full suite of demand in both business segments of the MIPI A-PHY New VA7000 24+ Professional Video products Chipsets 30+ OEMs, Tier 1s and Tier 2s powered by VS3000 for enterpri
Slide 17: Second Quarter 2022 Financial Highlights
Second Quarter 2022 Financial Highlights Second Quarter 2022 vs. Second Quarter 2021 › Revenue: $22.5 million › Revenue: $17.5 million › Gross profit1: $15.8 million › Gross profit1: $12.5 million › Gross margin: 70.2% (non-GAAP2: 71.0%) › Gross margin: 71.2% (non-GAAP2: 71.1%) › Adjusted EBITDA3: $
Slide 18: First Half 2022 Financial Highlights
First Half 2022 Financial Highlights First Half 2022 vs. First Half 2021 › Revenue: $44.1 million › Revenue: $30.9 million › Gross profit1: $31.2 million › Gross profit1: $22.0 million › Gross margin: 70.8% (non-GAAP2: 71.5%) › Gross margin: 71.3% (non-GAAP2: 71.4%) › Adjusted EBITDA3: $(8.6) millio
Slide 19: 2022 Trajectory, and Expected Adjusted EBITDA Breakeven Towards End of 2023
2022 Trajectory, and Expected Adjusted EBITDA Breakeven Towards End of 2023 Remain focused on • Optimizing margins • Targeting Adjusted • Ultimate goal is to • Increasing revenues achieve and then delivering value to year after year • Diligently managing EBITDA breakeven continue to amplify our stak
Slide 20: Summary
Summary First-mover advantage – Setting standards in fast growing industries Large addressable markets - Automotive and Audio-Video Track record of leadership driving increased revenues Compelling financial model with clear path to profitability 20
Slide 21: Thank you
Thank you www.valens.com investors@valens.com
Slide 22: Appendix
Walens Appendix
Slide 23: Reconciliation of GAAP to non-GAAP Financial Measures
Reconciliation of GAAP to non-GAAP Financial Measures Three Months Ended Six Months Ended June 30 June 30 2022 2021 2022 2021 Net Loss (9,995) (3,698) (15,045) (10,074) Adjusted to exclude the following: Change in fair value of (1,538) - (4,142) - Forfeiture Shares Financial expense, net 3,560 (503)
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