Third Quarter 2025 Results © 2025 Aeva, Inc. Legal Disclaimer Forward-looking Statements This presentation contains certain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking s ...

Summary of Conference Call Notes Industry Overview - **Industry**: Semiconductors, specifically focusing on North America - **Key Companies**: NVIDIA (NVDA), Micron Technology (MU), AEVA Technologies (AEVA) Key Points on NVIDIA (NVDA) - NVDA's roadmap is well understood, and the upcoming GTC event is viewed positively, maintaining its status as a top pick [1] - Business indicators are positive after concerns about transitional issues, with risks primarily from US government export controls affecting "tier 2" countries [2][5] - Anticipated strong demand for Blackwell and Hopper products, with gross margins expected to return to a sustainable 75% in the second half of 2025 [5] - The company is expected to outgrow competitors, including ASICs, particularly in the second half of 2025 [5] - The GB300 product launch at GTC is anticipated, featuring enhancements and a larger memory footprint [5] - Overall, NVDA is expected to maintain strong performance, with a potential return to new highs in the second half of 2025 [9] Key Points on Micron Technology (MU) - Micron's near-term fundamentals are tracking positively, with expectations for a stock price increase despite trimming estimates based on mid-quarter commentary [12][45] - The company is expected to generate $8-9 billion in AI revenue over the next 12 months, significantly up from $1 billion in the trailing 12 months [16][48] - Recent commentary indicates gross margins may decrease by a few hundred basis points sequentially due to NAND headwinds, leading to slight adjustments in revenue and EPS estimates [17][49] - The stock is considered overvalued by historical standards, trading at more than 2x book value and nearly 50x the 7-year average free cash flow [46] - Micron's position in AI is strong, and it is seen as a rebound candidate as confidence in AI themes resumes [18] Key Points on AEVA Technologies (AEVA) - AEVA is focusing on industrial applications while still prioritizing automotive traction, with confidence in their position as a finalist for an award with a top global OEM [10][23] - The company expects significant interest in its CES launches and anticipates revenue contributions from indoor labs and security customers starting in 2025 [10][23] - The stock is viewed as an attractive entry point despite broader market sell-offs, with potential automotive revenue opportunities expected to materialize by 2027 [11][24] - AEVA's revenue projections for the upcoming quarters show a decline, with expectations of -20% quarter-over-quarter for the March quarter [26] Additional Insights - The semiconductor industry is experiencing hardware constraints in cloud services, indicating pent-up demand [5] - The upcoming GTC event is expected to showcase innovation breakthroughs in AI, with strong attendance anticipated from the investment community [8] - The risk of US government export controls remains a significant concern for the semiconductor sector, particularly for companies like NVDA and MU [2][6] - The overall sentiment in the semiconductor market is cautiously optimistic, with expectations of continued strength in AI-related sectors [18][48]

Financial Data and Key Metrics Changes - Revenue for the year 2024 was $9.1 million, driven by increased sensor shipments to automotive and industrial customers, including the Daimler Truck program [36] - Full year non-GAAP operating loss was $123.2 million, consistent with the plan to keep it flat from the prior year [36] - Aeva ended the year with total available liquidity of $237 million, which includes $112 million in cash and cash equivalents and $125 million in undrawn facilities [37][38] - For 2025, the company targets revenue growth to be in the range of $15 million to $18 million, representing an increase of approximately 70% to 100% year-over-year [39] Business Line Data and Key Metrics Changes - Aeva has achieved significant milestones with its products, including the launch of the Atlas Ultra product, which offers three times the resolution and a wider field of view compared to previous models [22] - The company is seeing increased momentum in industrial robotics and factory automation, with a target to increase industrial sensor shipments by nearly 1,000% in 2025 [26][55] Market Data and Key Metrics Changes - Aeva is positioned in a $10 billion-plus market opportunity in industrial robotics and factory automation, with partnerships with industry leaders like Nikon and SICK AG [26][51] - The company has secured a development program with a global top 10 passenger OEM, which is expected to lead to a large-scale production program later this year [15][17] Company Strategy and Development Direction - Aeva aims to drive the adoption and commercialization of FMCW technology while maintaining strong financial discipline [31] - The company plans to complete its automated and automotive-qualified production line with a capacity for over 100,000 units annually [34] - Aeva is focused on expanding its presence in both automotive and industrial sectors, leveraging its unique FMCW technology [33][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute on its objectives and capitalize on the growing momentum around FMCW technology [35] - The company anticipates record revenues for 2025, with a focus on reducing operating expenses by approximately 10% to 20% year-over-year [34][41] Other Important Information - Aeva's Atlas Ultra product is designed to meet OEM requirements for Level 3 and higher speed applications, showcasing the company's commitment to innovation in the LiDAR space [22][23] - The company has made significant progress in its partnership with Daimler Truck, with plans for production to start in 2026 [20][21] Q&A Session Summary Question: Can you talk about initial targets outside of metrology and the cycle time for design wins? - Management highlighted the excitement around opportunities in robotics and factory automation, indicating a significant market potential [50][55] Question: Can you provide an update on manufacturing progress? - Management confirmed that they are focused on increasing manufacturing capacity to meet growing demand, with a target of 100,000 units per year [58][59] Question: How does the operating expense reduction apply to large programs like the Daimler Truck program? - Management indicated that significant development work has been completed, and they are now focused on scaling production while reducing costs [66][69] Question: What is the expected contribution timeline for the OEM program? - Management stated that the target for the Atlas Ultra start of production is 2027, with expectations for production ramp to follow [78] Question: How does the company feel about its current cash position? - Management expressed confidence in their liquidity, stating that they have a multiyear runway to support production and growth [81][82] Question: What is the general area of the top 10 OEM's headquarters and their operational geographies? - Management confirmed that the OEM is a well-known global brand with significant vehicle production, indicating a large opportunity for collaboration [88][90]