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2019 Nov MS NDR Frankfurt and Milan Dec 6 and 9 2019 11 30 2019 Without AB Back Up Slides
2019 Nov MS NDR Frankfurt and Milan Dec 6 and 9 2019 11 30 2019 Without AB Back Up Slides
Morgan Stanley
NDR
Frankfurt, Germany and Milan, Italy
1
Forward-Looking Statements
This presentation contains forward-looking statements that are subject to many risks and uncertainties. All statements made in this presentation other than statements
of historical facts are forward-looking statements, including, without limitation, statements regarding Ambarella’s strategy, future operations, financial targets, future
revenues, projected costs, prospects, plans and objectives for future operations, future product introductions, future rate of our revenue growth, the size of markets
addressed by the company's solutions and the growth rate of those markets, technology trends, our ability to address market and customer demands and to timely
develop new or enhanced solutions to meet those demands, our ability to achieve design wins, and our ability to retain and expand our customer and partner
relationships.
In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "could," "would," "expects," "plans," "anticipates," "believes,"
"estimates," "projects," "predicts," "potential," or the negative of those terms, and similar expressions and comparable terminology intended to identify forward-looking
statements. We have based forward-looking statements largely on our estimates of our financial results and our current expectations and projections about future
events, markets and financial trends that we believe may affect our financial condition, results of operations, business strategy, short term and long-term business
operations and objectives, and financial needs as of the date of this presentation. Although these forward-looking statements are based upon information available at the
time the statements are made and reflect management’s good faith beliefs, forward-looking statements inherently involve known and unknown risks, uncertainties and
other factors that may cause actual results, performance or achievements to differ materially from anticipated future results. Important factors that could cause actual
results to differ materially from expectations are disclosed in Ambarella's annual reports on Form 10-K and quarterly reports and Form 10-Q filed with the Securities and
Exchange Commission (the “SEC”), particularly in the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of
Operations.” You should not place undue reliance on forward-looking statements, which speak only as of the date on which they are made. We do not undertake to
update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, except as required by
applicable law. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for management to
predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and
circumstances discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-
looking statements.
Before you invest, you should read the annual and quarterly reports and other documents Ambarella has filed with the SEC for more complete information about the
company and its ordinary shares. Additional information will also be set forth in Ambarella's future quarterly and annual reports and other filings made with the SEC from
time to time. You may access these documents for free by visiting EDGAR on the SEC web site at www.sec.gov.
US ODMs
Jabil VisLab
HQ Flextronics
Parma, Italy
Santa acquired 2015 Taiwan ODMs
Clara, CA Founded and incorporated 51 employees Chicony
in Cayman Islands in 2004 30 PhDs Sercomm
Vivotek
LiteOn
WNC
China ODMs Ability
Skylight
Gongjin
Goertek
Kenxen
- Approach followed by Ambarella when designing the first encoding chip family
- Followed also for CV chip family:
- 3 ys of sw design, implementation, and on-field testing before selecting hw acceleratorss
- CV1 evaluated over a full life cycle (from design to full implementation on autonomous
cars); CV2 design then based on real feedback
- Careful choice of most used / heavy CV blocks, especially for ADAS/AV:
- includes key technologies for future cars, like Stereo and CNN and their enablers
- CVflow architecture:
- based on specific optimizations to make a very efficient use of space and resources,
leading to limited power consumption and high performance
- At the same time, CVflow is easy thanks to conversion tools to port from usual
environments into CV chips
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AMBARELLA.COM COPYRIGHT AMBARELLA 2019 7
Computer Vision: the game changers
• Game changers:
• New higher resolution 4k (8 Mpxl) and up image sensors
• Power efficient/cost effective deep learning
• Stereo to improve robustness over mono and reduce the number of lidar used today
• Moving from low to high resolution brings additional challenges Ambarella solved:
• Higher performance processing requirement with low power and cost
• Advanced image processing for low light performance
• Higher sensitivity to thermal cycles and vibrations handled by autocalibration
- The higher the automation level (L1,… L5), the denser and more accurate the required
perception
- High levels also require redundancy (i.e. sensor fusion with multiple sensing technologies)
- Vision (Ambarella’s key offer) is overcoming the major historical bottlenecks:
- Resolution (now 4k, 8Mpxl)
- Low light with high resolution and stereo (now working also at night)
- Power hungry (now 30 fps @ <4W)
- High resolution deep learning die size and power efficiency
- Stereo vision provides an additional sensing technique that fuses with monocular, and adds
redundancy and depth information to monocular
8 megapixel sensors at 15 frames per second** 8 mega pixel sensors at 30 frames per second**
CVflow Deep Neural Network AI Processor (software tools port from TensorFlow, Caffe, ONNX, etc.)
AI
Ambarella
$40M-$50M New New New New New
F2019 Revenue
Baolong
OEM Eyesight
BAIC, Geely, Honda, Eyeris
Ofilm
Selected Nissan, SAIC, Toyota Korean T1 Mercedes-
Hella Tier 1 for Benz Longhorn US OEM
Japan T1 Roadefend
Engagements Aftermarket
Momenta BAIC Readsense Ofilm
Finedigital, Garmin, SmartEye
Nextbase, Thinkware (TBA)
OEM
Ambarella has historically served the networked security camera market Analog Networked Computer Vision
Ambarella is now also addressing the computer vision market at its inception Global Security Camera Unit
Millions of Units
200
major new product cycle
We expect to ~5 professional security camera customers in mass production by the end of
F2020. Motorola Solutions is the first mass production customer
100
We are in-design at 9 of the 10 leading professional security camera companies
In discussions with all the leading consumer security camera customers. Market development ~1
year behind professional 0
C2018 C2020
AMBARELLA.COM COPYRIGHT AMBARELLA 2019 Analog Networked Computer Vision 14
Ambarella’s Global Security Camera Footprint
Enabling Most Major Professional and Consumer Security Camera Companies
HiSilicon (Huawei)
China only Aftermarket
Movidius (Intel)
(Server based
Nvidia architectures) central AI processing
NXP
No DNN for AI processing
Qualcomm
Renesas
SigmaStar
Texas Instruments
DNN accelerator – samples pending
Xilinx
PLDs utilized early in a product life cycle
(IP Cores)
e.g. Cadence, CEVA, etc. Incomplete solution
~150% of Ambarella’s revenue decline between F2017 and C2016 C2017 C2018
F2019 was driven by “Other”
(F2017) (F2018) (F2019)
non
“Other” revenue expected to decline in dollars and as a percent of Other ~55% ~40% ~20%
focus
revenue over the next 2-3 years
Security focus
~35% ~45% ~60%
With some exceptions, computer vision is not critical to “Other” Cameras market
markets
focus
Some segments such as police body cameras and commercial drones are Auto ~10% ~15% ~20%
expected to adopt CV and remain attractive but relatively small market opportunities market
Total
Sports/action cameras, consumer drones, and AR/VR markets $310 $295 $228
Revenue
have not come close to achieving market growth expectations and
are relatively small opportunities
Images represent potential customers and their applications AMBARELLA.COMCOPYRIGHT AMBARELLA 2019 18
Q3 F2020 (October 2019) Earnings Call Recap
>14 customer and partner engagements announced
*During Q3 F2020 Ambarella generated pre-production CV revenue from more than 50 unique customers ordering engineering parts,
evaluation kits and/or development boards
8 Auto 9 Security
3 OEM (in 4 models), 4 aftermarket, 1 tier one 4 home monitoring, 5 professional
1 CV and 7 video processing 3 CV and 6 video processing
*During Q2 F2020 Ambarella generated pre-production CV revenue from more than 40 unique customers ordering engineering
parts, evaluation kits and/or development boards
22