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Cipia Vision Ltd.
Investor Presentation • Jul 21, 2024
6727_rns_2024-07-21_ebc6304e-220c-416a-b6d4-23442e4abd73.pdf
Investor Presentation
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COMPUTER VISION AI FOR IN-CABIN SENSING
Company presentation | July 17, 2024
DISCLAIMER
- This presentation was prepared by Cipia Vision Ltd. (the "Company") as a general presentation regarding the Company. This presentation is not intended as a substitute for inspection of the Company's formal reports as required under the provisions of the law, including, among others, the Company s annual report for the year 2023, as published on March 31, 2024, and the Company's semi-annual report for the period ended June 30, 2023, and any subsequent immediate reports (the "Company Reports"). To the extent that there are any contradictions between this presentation the Company Reports as required pursuant to any law, the Company Reports shall prevail.
- The information included in the presentation does not constitute advice, nor does it form a recommendation or opinion about any investment and does not constitute an offering or an invitation to purchase securities of the Company, and does not substitute the need for independent review and personal advice in accordance with the specific circumstances of each investor.
- This presentation does not constitute or embody part of any offer or invitation to purchase securities of the Company and does not constitute or embody part of the invitation to receive such offers, and, in particular, does not constitute an "offer to the public" or "sale to the public" of any kind. Such an offer shall be made only in accordance with the provisions of the law, after obtaining the necessary permits from the Israeli Securities Authority and the Tel-Aviv Stock Exchange.
- This presentation may include Forward-Looking Information, as defined in the Securities Law, 5728-1968, including forecasts, estimates, assessments and other information pertaining to future events. In certain circumstances, one may identify Forward-Looking Information where use of certain words or phrases is made, including "expected", "believe", "may" "appreciate that (something may happen)", "expect", "intend" "continue" "can" "may" "plan", or other similar phrases or words. The Forward-Looking Information in this presentation is based on subjective assessments by the Company's management as of the date of this presentation, which although the Company believes to be reasonable, are inherently uncertain. Forward-Looking Information involves risks or uncertainties, including factors beyond the Company's control, each of which, or a combination of which, as well as the realization of any of the risk factors characterized by the Company's operations, may materially impair the Company's results and cause actual results to differ materially from the Forward-Looking Information. All Forward-Looking Information is solely aimed at the date to which it relates. Except for the obligation to disclose information as required by applicable securities laws, the Company does not undertake to update or change any information contained in this presentation, whether as a result of new information, future events or other reasons. It is also clarified that the Company's business plans and strategy included in this presentation are accurate as of the date of this presentation and may change in accordance with resolutions of the board of directors of the Company, as may be resolved from time to time.
- Other than trademarks that are owned by the Company or which the Company has the right to use, the trademarks included in this presentation are the property of their owners and are used in this presentation for the purpose of understanding the context only. The use of such trademarks may not be construed as approval or verification in relation to the Company's software, services, or securities.
- For the avoidance of doubt, the Company does not undertake to update the information contained in this presentation.
- This presentation includes only partial information, which the Company saw fit to share with its shareholders and the general public investing in the Company's securities. It is possible that the manner in which the information contained in the presentation is presented is different from the manner in which this information is included in publications in the Company's reports. This presentation includes a summary of the topics described in it, in the context in which they are discussed, and not the full information available to the Company in relation to these topics. This presentation does not include the full results and financial information of the company and the explanations to them, and/or the Company's business plans or the description of all the Company's activities and/or risk factors that apply to the Company and is not intended to replace the need to review Company Reports.
CIPIA: FOCUS ON DRIVER AND CABIN MONITORING
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Cipia Vision Ltd 4
LEADING IN-CABIN SENSING PROVIDER
60 Employees 66 Patents & applications 11 Vehicle OEMs 67 Models (design wins) \$39M Lifecycle value of hardware & software \$20M Lifecycle value of software Lifecycle value of signed agreements Jan 2024 - Dec 2028* Vehicle OEM agreements only does not include additional aftermarket software and device revenue
* It is clarified that the Forecasted Life Cycle Value (LCV) From Signed Agreements is based on forecasts received by the Company from the manufacturer and Company assumptions. However, the Company estimates that the level of certainty of the Forecasted LCV from Signed Agreements from the sale of hardware (cameras) is lower than that from the sale of software, due to the availability of alternative hardware in the market. The agreements do not require minimum quantity. Cipia Vision Ltd 5
THE PROBLEM BEHIND THE STEERING WHEEL
1,350,000
Die in road accidents annually
World Health Organization 80%
Distraction in the 3 seconds prior to the collision
National Highway Traffic Safety Administration
21% Fatal collusions are caused by
drowsiness
American Automobile Association
GLOBAL REGULATORY & SAFETY STANDARDS TREND
requires direct (e.g., camera based) driver monitoring (DMS)
distraction warnings are required in new vehicles
GB/T 41797-2022
congress bill to prevent automation complacency and misuse
reward L2 vehicles with driver monitoring
2023 2026
2024 2026
2023 2022
*Regulation and safety standards do not require driver monitoring to be performed using video analysis (i.e., camera), with the exclusion of China.
INCREASING DEMAND AMONG OEMS FOR DRIVER MONITORING
Source: https://www.alliedmarketresearch.com/driver-monitoring-systems-market
IN-CABIN SENSING SOLUTIONS
Software for Automotive Manufacturers Device & Cloud Services for Fleets DRIVER SENSE CABIN SENSE CIPIA-FS10
Driver monitoring software (may be accompanied by a camera) for automotive OEMs
Safety
Cabin monitoring software (under development) for automotive OEMs for driver and cabin-wide occupancy monitoring
Driver monitoring device and cloud service for telematics service providers and fleets
Safety & convenience
Safety & fleet optimization
ADVANCED COMPUTER VISION AI TECHNOLOGY ADVANCED COMPUTER VISION AI TECHNOLOGY
| Yaw 13 |
-5.50 | Pitch | 0.6 | Roll | -1.90 | ||
|---|---|---|---|---|---|---|---|
| Pupil dilation | Blink rate | Blink duration | Glasses | ||||
| 32.0% | 74.0 | 0.00 sec | |||||
| Left Eye | Right Eye | ||||||
| Yaw | -23" | Pitch | -3.2" | Yaw | 5.8 | Pitch | -0.9" |
Cipia Vision Ltd
THE NEED FOR DMS RISES WITH THE AUTONOMY LEVEL
Cipia s Driver Sense addresses DMS regulatory requirements and safety standards at levels 0 - 3
CIPIA-FS10 DEVICE SMART FLEET MANAGEMENT
Targeting telematics service providers
DRIVER ALERTS
- Safety alerts (distraction, drowsiness, seatbelt, phone)
- Compliance (smoking, seatbelt, phone)
- Dispute resolution
SMARTER FLEET MANAGEMENT
10 20 30
10 20 30
- Real time alerts
- Driver ID
- Workforce management
- Compliance
- Driver scoring
- Accident investigation
- Tamper detection
Weekly report
John Smith Risk: 56
AUTONOMY IS A GROWTH ENGINE
Source: Automotive Data Monetisation Pricing and Business Models, Frost & Sullivan, October 2017
Cipia Vision Ltd 13
TOP 4 PLAYERS IN THE DMS MARKET
| OEMs | Models | Positioning | Market cap |
|---|---|---|---|
| 11 | 67 | Lean hardware & strategic partnerships |
TASE: CPIA ~\$21M |
| 21 | 320 | # of OEMs | Nasdaq Nordic: SEYE ~\$280 |
| 11 | +160 | # of miles accumulated through TSP business |
AIM: SEE ~\$272 |
| 7 | +100 | Eye tracking technology |
STO: TOBII ~\$64M |
Customer data source: Smart Eye source (March 13, 2024) and Seeing Machines source (December 20, 2023) and Tobii (December 13, 2023). Market cap source: respective stock exchange data as published on Google Finance of March 26, 2024
BUSINESS MODEL
*Based on safety standards and regulation, the market is adopting DMS at a faster pace (previously reported as 1 - 3 years). **Price reflects ADAS ready units and cellular connectivity units.
***Assuming 50% of vehicles will make use of Cipia s cloud.
DRIVER SENSE: CONTINUOUS GROWTH
5 OEMs already in serial production
2023 ACHIEVEMENTS
Financials compared to FY 2022
in gross profit compared to 2022
in gross margin compared to 2022
Units compared to end of 2022
in vehicle manufacturers (OEMs) choosing company products
in awarded vehicle models
FINANCIAL REPORTS
| Profit & Loss (thousands of USD) | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|
| Total Revenues | 5,351 | 5,329 | 4,779 | 1,741 |
| Gross Profit | 2,688 | 1,167 | 1,893 | 641 |
| Gross margin | 50% | 22% | 40% | 37% |
| R&D expenses | 5,848 | 5,292 | 5,002 | 3,801 |
| S&M expenses | 2,908 | 4,412 | 3,478 | 2,426 |
| G&A expenses | 2,670 | 3,112 | 2,725 | 1,012 |
| Total Operating expenses | 11,426 | 12,816 | 11,205 | 7,239 |
| Financial expenses (income) | 372 | 1,256 | (9,399) | *9,516 |
| Profit (loss) before taxes | (9,110) | (12,905) | 87 | (16,114) |
| Balance Sheets | ||||
| Cash and equivalents | 5,854 | 16,155 | 19,767 | 3,858 |
| Inventory | 1,294 | 1,839 | 1,755 | - |
| Loans from Bank | 487 | 1,220 | 1,965 | 633 |
| Derivative Financial Instruments | - | - | - | 19,670 |
| Preferred equity (Liability) | - | - | - | 51,371 |
* Based mainly on financial instruments and converting them to equity in 2021
OVER \$100M RAISED IN TOTAL
| Years | Round | Main investors | Amount |
|---|---|---|---|
| 2024 | PIPE | Strategic Investor | ~\$5M |
| 2023 | PIPE | Private investors | \$2.3M |
| 2022 | PIPE | Institutional & private investors (existing & new) |
\$11.7M |
| 2021 | IPO (Inc. Pre-IPO) | Institutional investors | \$26M |
| 2020 | Convertible Loan | Jebsen Group, Grupo Antolin | \$8.5M |
| 2016-2018 | Series D | Jebsen Group, Arie Capital, Smart Gesture, private investors |
\$30M |
| 2014-2015 | Series C | Mitsui & others | \$12M |
| 2011-2013 | Series B | Mitsui & others | \$7M |
| 2007-2010 | Series A | Private investors | \$3M |
MANAGEMENT
| Yehuda Holtzman CEO |
35+ years experience of executive management & entrepreneurship in the tech industry |
|
|---|---|---|
| Tal Krzypow VP Product & Strategy |
15+ years experience of global scale software products managing multiple disciplines |
|
| Shelly Mesilati CFO |
15+ years experience of financial management including capital raising for tech companies |
|
| Erez Steinberg CTO |
20+ years experience of development activities including hardware and software |
|
| Guy Tsafrir VP R&D |
25+ years experience of software development and management |
|
| David Markus VP Telemetry & Fleets |
20+ years experience of executive management in the automotive industry |
|
| Liat Rostock VP Marketing |
of marketing experience |
BOARD OF DIRECTORS
Prof. Eli Talmor
25+ years in Private Equity and Venture Capital
Senior Professor at London Business School
Colonel and technology leader in elite intelligence military units
Gal Shmueli
Founder of several startups with \$1.6B exits
Erez Lorber
30+ years of technology executive management
Chairperson of Orient and Isralaser Orit Lerer
40+ years of executive management in Bank Hapoalim
Rich financial and managerial experience in global corporations
Henry Weinstein
10+ years of technology and health venture capital
Led over 20 venture capital deals and served as board member in health and technology companies
Prof. Eli Amir
30+ years in financial accounting
Senior Professor at Coller School of Management and Accounting Chair and visiting prof. at London Business School
JOIN THE GROWTH
* The contracts do not require minimum quantity. Please see slide 5 for additional information regarding schedule and assumptions.
www.cipia.com
