Arbe Robotics Ltd.

Good morning and good day and welcome to ARBE's fourth quarter and full year 2021 conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your touchtone phone. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on a touch-tone phone. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Miri Sehgal, CEO of MSIR. Please go ahead.

Thank you, Andrew, and everyone for joining us today. Welcome to RBAE's fourth quarter and full year 2021 conference call. Before we begin, I would like to remind our listeners that certain information provided on this call may contain forward-looking statements, and the safe harbor statement outlined in today's earnings release also pertains to this call. If you have not received a copy of the release, please view it in the investor relations section of the company's website. Today we are joined by Kobi Marenko, Arbe's co-founder and CEO, who will begin the call with the business update. Then we will turn the call over to Karine Pinto-Flomenboim, CFO, who will review the financials. We will then open the call for the question and answer session. With that, I'd like to turn it over to Koby Marenko. Koby, please go ahead.

Thank you, Marie. Good morning, everyone, and thank you for joining us today for our first earning call as a publicly traded company. It's an important time for us at Arbe, and I want to begin by expressing our deep appreciation to our investors, our customers, and our partners who have collaborated with us till now. I'm also incredibly proud of the Arbe team who drove our 2021 achievements by their commitment and hard work. The recent completion of our SPAC merger and becoming a public company was a major milestone. In fact, Arbe is the first automotive imaging radar company to go public in the US. Since this is our first earning call, I'd like to take a few moments to share our story, explain the core value proposition, and why we believe that we will lead the automotive sensors market. Arbe is the leading 4D imaging radar company in the market and the only pure-play radar public company traded on Nasdaq. We are driving the radar revolution, paving the way towards fully autonomous driving. We are a semiconductor company and our imaging radar chipset offers the best performance in the industry, enabling free space mapping for safe level 2 plus and level 3 autonomy that relies solely on radar. are there maintain significant product leadership and we believe that our technology today is superior to the performance competitors projected that they will have even in three years from now. Our mission starts with safety. The first goal of our radar is to improve the safety of the entire vehicle system, to allow automatic braking in any condition to enable safe adaptive cruise control, lane change assist, and many other advanced features, scaling up with the industry's evolution towards full autonomous driving. Radars in cars need a change, and the entire industry understands that performance needs to improve dramatically. In 2025, the total market of radar will be 11 billion, and a major part of it will belong to imaging radar. When we founded Aave in 2015, the general industry consensus was that radar had already achieved as much as it could. It was widely believed that LiDAR was more promising for advanced applications. However, as time went by, it became clear that achieving high-performance LiDAR at reasonable price was really unrealistic. Also, LiDAR is unable to reach performance targets at necessary ranges and does not function well in bad weather or when the sun shines directly on the sensor. In the past few years, the market has shifted back to radar. The majority of OEMs, car companies are beginning to understand that imaging radar is the key for any kind of level 2 plus and level 3 applications and is mandatory for higher autonomy. We believe that in the next few quarters we will start to see announcements from the largest companies choosing to base majority of their stock on imaging radars. This is where we specialize in imaging radar, which is a completely new sensor that drives all the advantages of traditional radar while enhancing them with real physical high resolution in 4D. on the azimuth, on the elevation, on the Doppler, and on the range. This allows our technology to support the development of perception algorithms and to deliver much higher value to the industry. Currently, and for some time now, we have the only ultra-high resolution solution in the market. In fact, we believe that our radar has the best performance in terms of resolution, dynamic range, and sensitivity even when it comes to future radials that are still in an early development stage announced by competitors. Our assumption is based on the specification of those radials which were released by the competitors. Today, we can proudly say that we added 30 customers from companies that have purchased a low volume of units to pre-production projects and full designing. Based on a subset of those clients, we expect more than $300 million in revenues in 2025. As we look back at 2021, I'd like to summarize our main achievements. Auto-X selected imaging radar to enable their fully autonomous robot taxi fleet. Our pre-production project with the top five global OEM is on schedule, progressing third selection in 2022. We were selected by a top 10 global OEM for an imaging radar-based perception project. Bike Group announced that our best technology will be installed on its mass-produced level 2 plus level 3 model. We are shortlisted with 17 opportunities, 8 OEMs, 5 robotaxis and new mobility players, and 4 tracks manufacturers. Five tier ones, including a leading radar player that recently started working with us are building production radars based on our chipset. And we made low volume sales to more than 30 customers during the year. Our 2021 development and commercial objectives were fully achieved and we're ahead of schedule for full production of our chipset by the end of this year. At this year's CES conference, are then well selected as 2022 Innovation Award Ownery in a Vehicle Intelligence and Transportation Product category. Our Perception Imaging Radar was recognized for driving a revolution in autonomous vehicle sensing at an affordable cost of the mass market. The highlight of our innovation was the introduction of free space mapping. This is the first time an automotive radar can contribute to free space mapping A critical function of autonomous driving that requires great accuracy and redundancy. The imaging radar complements camera sensors at long range and wide field of view, sensing the environment in all weather, lighting, and visibility conditions. We believe that the ability to generate a free space map and enhance perception algorithms is truly game-changing for the future of autonomous driving and we are enabling greater safety than even before for drivers, pedestrians, bicycles and anyone sharing the road with autonomous vehicles. I'd like to highlight some of our recent announced collaborations with major car manufacturers who plan to adopt 4D radar. Recently, Bike, one of the largest players in China and one of our best investors, announced that our sensor will be brought to the market by Hi-Rank, a Chinese Tier 1, and will eventually be in every one of Bike's Level 2 Plus and Level 3 cars. Also, X, the leading robot taxi in China and one of the first movers in the United States, announced that all of their cars will use our base radar and anticipated 400,000 units in the next five years. A few months ago, one of the top five car manufacturers selected Arbe and Valeo as Tier 1 for a pre-production project that will lead to design selection next year. In November, Wifu High Technology Group, a major Tier 1 in the Chinese market, announced that it begins the road pilot phase of its Arbe-based radar system and is scheduled to be in full production by the end of 2022. We believe that it could become one of our flagship projects. Hyundai Mobis recently announced that it's conducting a large-scale pilot with Arbe's technology for Level 2 Plus and Level 3. Hyundai is also an investor in Arbe. This pilot was successfully completed and the final radar selection will take place in the coming months. Additionally, Camcom, Arvest T1 for the non-automotive vertical is making an impressive progress, holding pilots with robot taxis, autonomous trucks and delivery robots. As we look at 2022 and beyond, we are optimistic about the long-term future and market need to improve safety by using Arvest's superior solution. While experts assume that the chip shortage and supply chain challenges will continue to impact global markets in 2022, It's important to understand that one of our major advantages is our relationship with Global Foundries. As one of their strategic customers, we are the first company to go to production with chips that are automotive grade based on their 22nm process. Global Foundries has taken full responsibility for chip production and supply chain management. They are guaranteeing the supply we promise to our customers for the coming years. Despite the current silicon shortage, we will have the capacity necessary to meet our commitments. In terms of our goals for 2022, we aim to close eight design wins with OEMs, autonomous trucks, delivery robots, and non-automotive companies this year, and we are laser-focused to achieve this target. Based on current market trends, we estimate that steel ones will show increased demand for harvest chipsets. Our goal was to establish a relationship with two leading Tier 1s this year and one of them is already working with us and we are only in the beginning of 2022. A major strategic goal for 2022 is to go to production with our chips. This is an ambitious plan and is supported by global funders. We believe we can reach that milestone. Our Tier 1 partners are following closely and they are in the advanced stages of a plan that will take a full radar model to production in parallel. In China, we will be in production by the end of this year, as our Tier 1s have announced, and in Europe and US, we believe it will be in the second half of 2023. To summarize, we are confident in our vision for this market. Everything we see leads to the following conclusion. High Definition Imaging Radar is about to change the auto market and then it is going to walk its way into many other markets and change them as well. We believe that our current solution is miles ahead of competition. We intend to gain a significant market share as the leader and innovators of this space. I'd like now to turn the call over to our CFO, Karine.