Weebit Nano Limited

Good afternoon and welcome to the WeBit First Quarter 2026 Investor Update. My name is Danny Younis and I handle investor relations for WeBit. With me today, we have the CEO of WeBit, Kobi Hanock, and for the first time, the VIP of marketing and business development, Eran Rieman. Before I hand over to Kobi, just a reminder, we will be having a Q&A session today. If you have any questions, if you're in the room, just put your hand up, or if you're online, just type them into the Q&A box that you see at the bottom of your screen. We're expecting a lot of questions, but we've provided enough time, I think, to go through most of those questions. We've got roughly an hour, but we can run a little bit over if we need to. I would now like to hand the webinar over to Kobi.

Hi, everyone. So good to be here as always. I guess we came here because of the Semiconductor Australia conference that was yesterday. I think it was a very good conference. It was well attended. I don't know if anyone here, was anyone at the conference? It was really, I think there were roughly 300 people or so. This time, we had a booth there. So you see the sign from Semiconductor Australia up here. We're reusing it kind of. And show the demo. I guess we'll be bringing the demo to the AGM. And we'll be showing it there as well. So we'll be back. I'll be back in a month. And yeah, I guess let me share the screen again with this. So just a few slides, not really much. I think everyone knows a wee bit and knows what's going on. So yeah. We'll just go through the slides like this. So I just thought I'd show you an update. I found this very interesting how just a year ago, the prediction of the size of the semiconductor market was the blue line here. And people were saying, yeah, it's going to hit a trillion US dollars by 2030 or a little bit later and stuff. And now with AI just going wild in just one year, we see analysts already updating their predictions and the size of semiconductor crossing the trillion dollar mark already in 2028 and so on. Again, every time I come to Australia, I have this challenge of trying to explain to people how big this market is, how important it is. You guys know, but like yesterday at the conference, even though a lot of people knew what semiconductors are, we still had to emphasize it. And of course, we've with other institutions and other people that we meet here. So I think this really shows you what's going on. It's crazy the level of investments in this market. I always repeat it because the numbers are just mind-boggling. Every time you see it, more investments and more strategic deals. Intel now, on the one hand, Intel is struggling. On the other hand, they have a new CEO who's really a magician. He's amazing. I know the guy and he's just capable of doing amazing things. And now he's managing to get investments from the US government, from Nvidia and stuff. And India now is starting to invest a lot. They're setting up foundries in India. In terms... Oh, I'm sorry. So I need to do this. In terms of the rear-end market itself, every once in a while I refer to the old slides and it's interesting to see how year after year the numbers evolve. I think that the interesting thing here is to see they're talking about rear-end being today about 27% of the market. And I think this is already what we've been talking about for a long time. ReRAM is being accepted now as the new standard. And you can see how the ReRAM market share is growing quite a bit, actually more than doubling or just about doubling in just a few years. But also look at the size of the market. It's like... So not only is the market share growing double, but it's 20x the market. So it's actually rear end section is 40x in just four years. And that's a huge growth. That's a huge growth right now. The companies who are addressing this are basically TSMC and WePit. You know, the companies that are commercializing the reram, that actually have customers, that people are buying it, it's TSMC and WePit. UMC has... It has a re-rem that's been qualified, but it's been qualified for years and it's only at 105 degrees, which is really not accepted in the industry as high enough. And to the best of our knowledge, they don't have any customers. Even the owner of the re-rem actually, Nuvoton, is using TSMC. And, you know, there's a new entrant. We all knew that GF is looking for reram. We were trying to be the ones who get in there. You know, their internal R&D has been pushing strongly that they make it happen. And the management gave them a chance. So they announced that they have a reram. I think the good news is you can see that people see reRAM is really needed. They haven't qualified it yet in their announcement, mentioned automotive. I think they still have some way to go. I personally think they made a big mistake because they just don't have the resources to maintain this. At a certain point, it'll have to collapse. That's my personal belief. And so I think both UMC and Global Foundries are definitely high on my potential customer list still. I still believe, you know, TSMC is going to be a challenge even though they are on my customer list. And I believe eventually we can get there. But this is kind of showing you the market. Notice, you know, you can see, by the way, the split between different markets, Analog, MCU, and ASIC. And you can see that the initial users are the analog guys. I think you guys already know, we started talking more and more about analog on Semi. It's basically an analog company. Even with DB Hightech, it's a BCD process, which is mostly for analog companies. And you can see the adoption, it's... No surprise that Webit's first fab customers are analog, but then after that the MCU market starts going up and then after that you have the ASIC and SOC markets going up. This really shows you, by the way, that it's reflecting also what Weebit is doing. The fact that we signed up with analog companies, I think that's part of the thing that Joel has been looking at and saying, okay, we can see the money coming in. I mean, you... You already saw the revenue number for the fiscal year, the $4.4 million. And I guess now we're very happy with the recent announcement of the quarterly that this quarter we got $7.3 million from customers. Now, I think it's important for me because I know some people were really getting excited and, oh, my God, it's already cash positive and look at these numbers and everything. know it's important for me and you know i like to be you know honest with with with things um we're getting paid based on achieving milestones and sometimes you know some quarters have more milestones some quarters have less or or whatever and and the some of the milestones are bigger and bigger payments and some milestones are smaller so i i i want people to understand it's great and we're obviously very proud and very happy of the money that came in Now that's how it's going to keep growing. And, you know, we're going to see record quarters every quarter and, you know, whatever, and extrapolate stuff. We need to keep it in proportion. It's good. I mean, you can obviously see from these numbers that the revenue numbers, I guess, for this year are going to also grow somewhat, you know, and we're not giving any guidance, of course. But that's, I think this is a good map of what is happening. And, you know, you can see how the YOL numbers are changing and growing. And YOL is finally accepting. YOL is close to STMicro, which is the only PCM provider, actually. And they always, at least in our minds, they kind of tend to grow the PCM market just because of that influence from STMicro. It's the only supplier of PCM. But anyway, that's kind of... Oh, again, I need to click on this thing. So... Recent highlights, you guys know everything here. You know, the ACQ 100, that's already old news for you guys. Record revenue for the fiscal year, then taped out at OnSemi. That was a, you know, you can see OnSemi has a team of, I estimate at least 30 people almost full-time working with us. It's a big team. It's a big effort. They are really focused on pushing this forward as fast as possible. It is strategic for them, and it's great. It's just a great cooperation. You can see with IDMs, it's really great because they really want to get this out, and they want to get their products already moving. So it's really been... a great partnership and this tape out and you know we now have to sit and wait for the wafers and you know we'll see how long that goes um we uh you know obviously we just talked about the record uh quarterly customer payments and and you know obviously that's nice to see there um And by the way, I want to point out, I mean, people are looking also at, oh, this was a positive quarter and stuff. You need to note that there was also the yearly refund payment from the French government that they gave us, though. I just like to be as transparent and as clear as possible on things. And then, you know, you know that we have a target of three fabs and three product companies to sign up this year. I'm very glad that we actually achieved the three product companies already. And that was really nice. You know, we started announcing the first one and then we have two more now that are So there are three products that are already being designed with our re-ram in them, embedded in them. Obviously, again, the design takes time and they'll need to manufacture the prototype wafers and test and see and qualify their products. But the clock starts ticking towards revenues eventually. So, you know, that's kind of the update. I always like to point to why Webit is actually managing to make this progress. What is the difference between Webit and all these other companies that are trying to build re-RAM or work in this non-volatile domain? And I really think it's this combination of, you know, we have... the the company that is uh you know i think we're strong by the way you know the cash position is obviously something that is very important we have 91 million in the bank and that really enables totally focused on let's improve the technology let's get the business let's close these deals i'm not worrying or spending time on how am i going to raise money now and that's very important for us we have money again you start doing the extrapolation in fiscal year 25 uh the spend was about 25 million roughly so you can see we're feeling good about it for several years now and that we can totally be focused on getting the business closing deals and in parallel growing uh improving the technology the people you guys know our board which i'm extremely one of them. But beyond that, the company now is about 50 people already. We've grown. Obviously, we need to start supporting more projects and these things. We do have roughly one third of the R&D is PhDs in physics and chemistry. I mean, we really have a very strong team. You look at the VPs, I think the average experiences over 30 years in this industry, very experienced, very well-known people in the industry worldwide. I'm not talking about just in Israel and even the levels below. I mean, the average age in Weebit is much higher than you see in normal high-tech companies. And it reflects that you need that level of experience. You need that level of know-how of these things. So really, that's very important. And Leti, of course, is supporting us. So I think it's great to have that. Obviously, we have a very good technology. Part of it is all of this R&D that is going in with very smart people. We managed to make the technology work and work. I can tell you we've hit endless obstacles along the way, but what's important is that you have the team that knows how to overcome them and move forward and fix things. so really amazing technology acq 100 and all and and so on and we're providing the solutions now for for the customers uh and and there's actually you know you have on semi and the analog guys and we're working a lot with analog guys there's quite a bit of activity going on now with companies that want hai and want to see uh how we we bring in re-ram there and there's you know, activity around there and all these other things. And then it's really the customers. We have a very good relationship with the customers. Yes, some of them are just still hesitant. There still is that perceived risk. They still haven't seen this in mass production and so on. So, you know, each one at their own pace, but we are pushing forward. We are, you know, we still have to sign two more agreements. We're working hard on this, trying to get them in this year. And, you know, we don't have a lot of time. I remember last year at this time I was sitting and people were saying, you don't have time left. You said you're going to have a deal. You don't have time left. And pushing as hard as we can to get this done uh this year we we are engaged with a lot of companies with a lot of fabs okay i mean it's just fabs i think it's it's definitely more than 10 that we're engaged right now in in discussions in in in evaluations in in all of this uh stuff and and each one of them with their own story why and whatever and and but there is a very good you know we're in a On sending definitely helped, you know, having that deal. And I believe that when we sign another one or two, it's really going to start, I don't want to say opening the floodgates, but it's going to get us moving forward. And the customers, by the way, the product companies, they... a huge advantage we have a huge advantage in the design side people people don't realize you know we talk about the phds and physics and chemistry and stuff but we have an amazing design team which is recognized in the industry uh you know it took to the point where sometimes people who try to develop reram ask us can you guys take our reram bit and do a do the design around it because we don't know how to do that. And, and, you know, so we have an amazing design team, customers realize, and, and these, you know, product companies, obviously our goal is to eventually have enough standard modules that people will just come and use them. And we won't need to do manual work there. I mean, the goal is to have high margins and then not be doing services, but, The customers know that if they need that support, if they need that design service, we can give it to them. And that's a critical thing. And especially the first customers, they always need some more hand-holding and stuff. So we have that team. I strongly believe that when you build the brand name, that with WeBits, you're gonna be successful. That's what really gets the market going. If you look, if anyone checks my history and the different companies that I was in, almost all my life, I've been competing with companies that gave competing technology for free, literally for free. They were big players. Customers would buy these huge packages from them and then they would tag on on top of that for free, the competing product. And I had to go and compete with that. And the only way I could do it was just give good service. The customers knew and I would meet the CEO and I would look him in the eye and I would say with, you know, the companies that I was at, Vericity or whatever, we're going to, I'm telling you, no matter what happens, you have a problem. You call me up, I'm bringing in the cavalry. We're coming in. You will be successful with our product. And, you know, we were selling, Veracity was selling more than 100 million per year when Synopsys gave its competing technology, which was good for free. And we got more than 100 million a year because people value good service. And that's really what we're doing here. I go and I look at the CEOs in the eye and I tell them, with WeBit, our team will make you successful. We are there. We have a very experienced team, and they are there for you. And we will make sure that, you know, your product won't fail because of us. It might fail because of you, but it's not going to fail because of us. And that's a key thing. So that's really, you know, just to give you guys where we are, what the status is. If I'll stop sharing. And we can probably go to Q&A.

Thank you, Kobi. So we will now move to the Q&A part of the session. Once again, for all those online, and there's quite a few of you, if you have any questions, please type them into the Q&A box at the bottom of your screen. I can see they're starting to come through. But I think just to start off with, we might start in the room. Are there any questions from any of the attendees in the room? Hi, Kobi.