THE THINKEQUITY CONFERENCE 2026 - INNOVIZ TECHNOLOGIES LTD

Explicit Guidance:

• Revenue Mix: Management targets the security and defense market to contribute at least 20% of total revenue by next year (FY2025), with a strategic goal of 50% by 2029–2030.
• Financial Metrics: Anticipates significantly higher average selling prices (ASPs) in the security/defense sector compared to automotive, projecting ASPs in the thousands of dollars (specifically $6,000–$7,000 per vehicle for automotive programs) versus hundreds of dollars in auto.
• CapEx/OpEx: Expects no additional CapEx or R&D development investment required for serving the security and defense market, as it utilizes the same mature production line and technology as the automotive division; efforts will be redirected to sales and marketing.
• Volume/Unit Outlook: Volkswagen's ID. Buzz shuttle program plans for 9 LiDAR units per vehicle; additional Mobileye/Holon programs mention potential aggregate volumes of tens of thousands to 100,000 units across fleet deployments.

Business-Segment Outlook:

• Automotive: BMW programs are active (2024); Volkswagen level 4 autonomous shuttle launch scheduled for beginning of next year (2025); Daimler Truck autonomous launch expected several years from now. Future volume growth anticipated as programs launch sequentially year-over-year.
• Security & Defense (Primary Focus): Less than one year since entry; focus areas are Counter-UAS (drone detection), Perimeter Security (government/utility/border protection), and future expansion into Unmanned Ground Vehicles (UGVs).
• Product Strategy: Leveraging the second-generation Innoviz2 platform (short-range and long-range LiDARs) for both sectors. The security/defense segment is branded as "Precise" to distinguish from automotive use, though the underlying product and maturity level remain identical.
• Customer Cohorts: Automotive serves Tier 1 OEMs (BMW, VW, Daimler, Mobileye). Security/Defense operates as Tier 2/3, supplying prime system integrators rather than end-users.

Market and Competitive Outlook:

• Market Size: Projects the aggregate opportunity for security and defense applications to reach $7–$8 billion by 2030.
• Pricing & Margins: Anticipates higher ASPs and gross margins in security/defense due to lower volumes but higher unit prices and mission-critical requirements.
• Competitive Dynamics:
  • China vs. West: Chinese competitors (e.g., Hesai, RoboSense) face U.S. Department of Defense (DoD) bans on LiDAR technology outside China, accelerating a pivot by Western OEMs (like VW) away from Chinese suppliers to non-Chinese alternatives (e.g., Innoviz, Hesai's exclusion from VW due to bans).
  • Industry Consolidation: Automotive LiDAR supplier base in the Western Hemisphere has consolidated from ~10 companies to roughly 2.5 remaining players.
  • Differentiation: Competitors like Auster are excluded from direct competition in this space due to a focus on industrial/indoor applications with different specs.

Macro / Industry Outlook:

• Demand Trends: Describes a "great sense of urgency" in the security/defense market driven by global conflicts (Ukraine, Middle East) and threats from drones; governments (NATO, US) are funneling billions into R&D and deployment rather than just research.
• Cycle Times: Contrasts the 3–4 year cycle time typical in automotive (from pilot to SOP) with a <1 year cycle time in security/defense (pilot to deployment), enabling faster revenue realization and "step function" growth upon full deployment.
• Regulatory Environment: U.S. DoD bans on Chinese LiDAR technology are a structural catalyst for adoption of Western suppliers.

Strategic Initiatives:

• Market Expansion: Aggressive expansion into security and defense markets using existing automotive-grade technology and production capacity without new R&D spend.
• Product Deployment: Deployment of LiDAR solutions for perimeter security and counter-UAS systems, leveraging the ability to see through foliage and perform in noisy environments where radar/cameras fail.
• Operational Resilience: Highlighting LiDAR functionality in harsh environments (rain, mud, dust) and with occlusions (25–30% screen smear), ensuring 24/7 availability for convoy protection and autonomous operations.

Risks and Headwinds to Outlook:

• Program Disclosure: Cannot disclose specific volume numbers or contract values due to confidentiality agreements with OEMs.
• Warranty/Liability: Warranty covers only the LiDAR hardware, not the integrated system; liability for vehicle operation lies with the operator or system integrator, though Innoviz may face claims if failure is attributed to the sensor.
• Technology Adoption Risks: Reliance on OEM launch timelines (e.g., VW shuttle, Daimler Truck) and the speed of defense program deployments.
• Geopolitical Constraints: Heavy dependence on the regulatory stance of the U.S. DoD and NATO regarding foreign technology bans.

Management Tone on the Future:

• Confidence Level: High confidence in the near-term revenue inflection, citing immediate deployment capabilities and the "step function" potential of security programs.
• Strategic Shift: Clear pivot from a pure-volume automotive play to a hybrid model balancing automotive scale with higher-margin, faster-cycle defense revenue.
• Hedges: Qualifies specific volume estimates (e.g., Mobileye numbers) as unverified by the company, acknowledging reliance on OEM announcements for precise data.

Miscellaneous:

• Geography: Operations span Israel (HQ), US, Germany, and Asia.
• LiDAR Specs: Capabilities include high resolution, long range, and high frame rates, specifically solving detection issues in "noisy" environments (moving trees, metal objects) where radars struggle.