Fourth Quarter 2020 VLDR Earnings Presentation

V E L O D Y N E L I D A R . C O M | 1Y O U R S A F E T Y D R I V E S U S

FOURTH QUARTER 2020

INVESTOR PRESENTATIONFebruary 25, 2021

V E L O D Y N E L I D A R . C O M | 2

S A F E H A R B O R

This presentation contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to,statements regarding our financial outlook and market positioning, business strategy and plans, potential contract opportunities, planned products and services, growth opportunities, market demandand technological developments. These forward-looking statements are based on information available to us as of the date of this presentation and are based on our management’s current viewsand assumptions. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”,“estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “may”, “will”, “should”, “can have”, “likely” and other words and terms of similar meaning in connection with any discussion of the timing ornature of future operating or financial performance or other events.

All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including: the impact on our operations andfinancial condition from the effects of the current COVID-19 pandemic; the impact of the COVID-19 pandemic on our customers and suppliers; our ability to execute our business plan; the timing ofrevenue from existing customers, including uncertainties related to the ability of our customers to commercialize their products and the ultimate market acceptance of these products; uncertaintiesrelated to our estimates of the size of the markets for our products and future revenue opportunities; the rate and degree of market acceptance of our products; the success of other competing lidarand sensor-related products and services that exist or may become available; our ability to identify and integrate acquisitions; rising costs adversely affecting our profitability; uncertainties related toour current litigation and potential litigation involving us or our predecessors or the validity or enforceability of our intellectual property; our ability to partner with and rely on third party manufacturers;general economic and market conditions impacting demand for our products and services; and changes in applicable laws or regulations. We operate in a very competitive and rapidly changingenvironment and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, orcombination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements. Additional information concerning risks, uncertainties andother factors that could cause results to differ materially from the expectations described in this presentation can be found in our filings with the U.S. Securities and Exchange Commission, includingquarterly reports on Form 10-Q and current reports on Form 8-K. The forward-looking statements included in this presentation relate only to events as of the date hereof. We undertake no obligationto update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

This presentation includes information concerning economic conditions, our industry, our markets and our competitive position that is based on a variety of sources, including information fromindependent industry analysts and publications, as well as our own estimates and research. Our estimates are derived from publicly available information released by third party sources, as well asdata from its internal research, and are based on such data and our knowledge of our industry, which we believe to be reasonable. The independent industry publications used in this presentationwere not prepared on our behalf. While we are not aware of any misstatements regarding any information in this presentation, forecasts, assumptions, expectations, beliefs, estimates andprojections involve risk and uncertainties and are subject to change based on various factors.

In addition to our results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), this presentation includes certain non-GAAP financial measures,including non-GAAP gross profit and non-GAAP operating loss, that we believe are useful in evaluating our operating performance. Certain of these non-GAAP measures exclude stock-basedcompensation, gain from asset sales, one-time IPO-related costs, amortization of acquisition-related intangibles assets, and discrete tax items. The effect of these excluded items may be significant.We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance and assistsin comparisons with other companies, some of which use similar non-GAAP information to supplement their GAAP results. The non-GAAP financial information is presented for supplementalinformational purposes only. There are limitations related to the use of non-GAAP financial information and such information should not be considered a substitute for financial information presentedin accordance with GAAP. For example, our non-GAAP financial information may be different from similarly-titled non-GAAP measures used by other companies. Reconciliation tables of the mostcomparable GAAP financial measures to the non-GAAP financial measures can be found at the end of this presentation.

The audit of the financial results contained herein as of December 31, 2020 and for the year ended December 31, 2020 is not yet complete and as a result these amounts may change as result ofthe completion of the audit of the 2020 financial statements.


INVESTMENT HIGHLIGHTS

1 Based on management estimate2 From Inception, as of December 31, 20203 From Inception, as of December 31, 20204 Full year GAAP gross margin, including around $7.4M of stock-based comp, is 26%5 Velodyne is traded under the symbol VLDR (common stock) and VLDRW (warrants) as of September 30, 2020

Market

Leader

Trends

Upside

Potential

Competitive

Moats

Visible

Profitable

Growth

• First mover with highest market share1

• 300+ customers across auto and non-auto markets

• ~51,800 units shipped to date2

• $670M+ cumulative revenue3

• First publicly traded pure-play lidar company on NASDAQ under the symbol VLDR and VLDRW5

• Our auto and trucking customers are adopting lidar in commercial ADAS systems to improve safety

• Rollout of contactless last-mile delivery solutions accelerating due to COVID-19 pandemic

• Multiple non-automotive industries starting to use lidar, driven by lower ASPs

• Entrenched customer relationships with high switching costs

• Multiple production agreements across many automotive, delivery and security customers

• Extensive patent portfolio with demonstrated defensibility

• Broad product portfolio in rotational and solid state lidar, not relying on just one product or technology

• Proven low-cost manufacturing at scale, including automotive grade

• Tracking 194 potential projects across 25+ industries, representing a 46% increase over 131 projects at the end of 2019

• Increased number of multi-year agreements to a total of 26

• Velodyne 2020 revenue $95.4M

• Full year non-GAAP gross margin 34%

• Steepened customer demand across different applications across multiple industries

• Continuing to build the broadest product portfolio to meet the needs of a diverse range of industries

• Significantly expanding customer pipeline demonstrates inflection point in market


BUSINESS UPDATES

1 Velodyne is traded under the symbol VLDR (common stock) and VLDRW (warrants) as of September 30, 2020

• Total sensors shipped in 2020 exceeded 11,700 with 4,237 units shipped in the 4 th quarter

• Momentum in solid state sensors shipped increased to more than 700 in 4th quarter

• As of 2/19/21, the total number of multi-year agreements and projects in pipeline increased to 26 and 194, respectively

• Announced sales agreements with the following:

o Baidu

o Motional (Hyundai Motor Group – Aptiv combination)

o May Mobility

o Local Motors

o Ford Otosan

• Announced Velarray H800, a breakthrough solid state sensor for advanced driver assistance and autonomy

• Announced Velarray M1600, an innovative solid state sensor for autonomous mobile robotics and last-mile delivery

Successfully defended patents with Hesai and RoboSense by entering into recurring global licensing payment agreements

• Joined Qualcomm’s Smart Cities Accelerator Program

• Velodyne’s Velabit lidar sensor was named a winner in the Best of What’s New awards by Popular Science and in the 2020

Innovation Award by Silicon Valley Robotics

• Won TU Automotive Awards 2020 Hardware Supplier of the Year

• Published Pedestrian Automated Emergency Braking and Smart Cities white papers


STRONG & EXPERIENCED LEADERSHIP TEAM

Drew

Hamer

Chief

Financial

Officer

Mike

Jellen

Chief

Commercial

Officer

Sally

Frykman

Chief

Marketing

Officer

Anand

Gopalan

Chief

Executive

Officer

Matt

Rekow

Chief

Technology

Officer

Rick

Tewell

Chief

Operations

Officer

Kathy

McBeath

Chief

People

Officer

Michael

Vella

General

Counsel


BROAD PORTFOLIO ADRESSES SAFETY NEEDS FOR DIVERSE APPLICATIONS

DELIVERY | MOVING GOODS AUTOMOTIVE | MOVING PEOPLE SMART CITY & SECURITY

Includes touchless delivery,

B2B transport, railways, and

robotic delivery

Includes ADAS, levels 1-5 AV,

and robotaxis

Includes intelligent intersections, advanced

people monitoring, parking & traffic

management, and drones


WE ARE THE FIRST MOVER AND TRUSTED MARKET LEADER

2005Invented Real-Time 3D Lidar

2007Began World’s First Commercial Production of Real-Time 3D Lidar

Leading Lidar Technology

TODAY

• Market leader for 13 years

• Broad product portfolio

• Cumulative sales of over $670

million1

• 300+ customers, including major

OEMs and leading Tech companies

• Global sales and mass scale

manufacturing

• 25+ market segments outside

automotive

HIGHLIGHTS

1 As of December 31, 2020.


VELODYNE IS THE LEADING LIDAR PROVIDER

1Contracts represent agreed upon terms and conditions but do not include firm commitment purchase orders. Actual sales may differ materially from projected volume.2Represents the number of unique customers including distributors that purchased smart vision solutions from us in 2018, 2019 and 2020.3As of December 31, 2020.

2017 2018 20192005 - 2016 2020

David Hall invented smart

vision technology

First

real-time,

3D-lidar

Launched

less than

1kg lidar

Manufacturing

agreement with Nikon

Production partnership

with Veoneer

Opened advanced

manufacturing facility in San Jose

Launched

300 meter, high

resolution lidar

Launched

lidar for price-sensitive

applications

~$95M2020

Revenue

55+3

Granted / PendingPatents

300+2

Customers

HDL-64E Puck Alpha Prime Velabit

Launched

lidar for

consumer

ADAS

Velarray

Launched

near-object

detection lidar

Veladome

Strategic investment

from Ford and Baidu


from Hyundai Mobis

261

Signed / Awarded Multi-Year Agreements

Acquired

Mapper.ai


from Nikon

51,800+3

Units Shipped

HDL-32E

Launched

compact, multi-

channel array

Ultra Puck

Launched

first 200m

lidar


VELODYNE LIDAR PRODUCT ROADMAP

Tireless Innovation to Bring New Technologies and Products

Architectures

BroadProductPortfolio

HDL-64E HDL-32E VLP-16

PuckTM

Series

VLP-32

Ultra PuckTM

Series

VLS-64

Alpha-64TM

VelarrayTM H800

VelabitTM VelaDomeTM VellaTM

Announced Future Products

Surround View Hybrid Solid State Solid State Directional Hemispherical Software

FULL RANGE OF FORM FACTORS | SUPERIOR PERCEPTION | LOW POWER CONSUMPTION | DURABILITY

KeyTechnologies

Embedded Signal Processing

Software

Proprietary Calibration and Manufacturing

Micro-Lidar Array Technology

Custom ASICs IP Portfolio

Sensors Are Ruggedized and Leverage Tightly Integrated Hardware and Software Solutions

VLS-128

Alpha

PrimeTM

VelarrayTM M1600

V E L O D Y N E L I D A R . C O M | 1 0

VELLA SYSTEM ON A CHIP (SoC)

Vella is Our Core Perception Technology That Enables Many Use Cases


PAST INVESTMENTS DRIVE GROSS MARGIN EXPANSION AT SCALE

OVERSEAS PRODUCTION

PROPRIETARY MANUFACTURING IP

MANUFACTURING PARTNERSHIPS

Fully automated wafer-scale lidar

manufacturing processes

Micro-lidar arrays and custom ASICs enable mass

production at lower unit cost

Partnerships add capacity and opportunity

for higher marginsEstablished low cost production in Thailand

Transitioning

Q4’20

Completed

Transition

(NYSE: FN)(TSE: 7731) (NYSE: VNE)

VelarrayVLP-16

TECHNOLOGY MINIATURIZATION


HIGHLY DIVERSIFIED PROJECTS ACROSS INDUSTRIES

(Chart represents sensor units )

ADAS

AV

Delivery

Robotics &

Industrial

Mapping

Smart City

2025

Stages of projects shown in the above table vary

from signed / awarded phase to pre-RFI phase

NUMBER OF PROJECTS

Advanced Driver Assistance Systems (ADAS) 61

Autonomous Vehicles (AV) 32

Delivery 18

Mapping 21

Robotics & Industrial 52

Smart City 10

TOTAL 194

____________________

Note: The chart above reflects a visual representation of how Velodyne believes the market is developing based on multi-year commercial demands that Velodyne currently sees from

customers and is not indicative of projected revenue or unit shipment. Signed and awarded contracts represent agreed terms and conditions of supply, but do not reflect firm orders

unless and until purchase orders are received. To date, shipments under and revenue from these signed contracts have not been material. Based on data as of February 19, 2021.

194 Projects Could Potentially Yield a Total of ~9M Units Shipped by 2025

2025 2021 2022 2023 2024


BARRIERS TO ENTRY: ROBUST DURABIL ITY OF INSTALLED CUSTOMER BASE

A. Technology

differentiation

B. Lengthy and

rigorous validation

process

C. Long-term

contracted volume

arrangements

D. High switching

costs

Why We Have a Sticky

Customer Base

Request for Information

(RFI)

Request for Quotation

(RFQ)

Production

Contract

Our Commitment in Platform Development Drives Customer Loyalty


DEMAND CURVE REFLECTS A GROWING MARKET OPPORTUNITY

RFQ

RFI

Pre-RFI

Signed / Awarded

194 PROJECTS IN FUNNEL

NUMBER OF

CURRENT CONTRACTS / PIPELINE

Signed / Awarded 26

Additional Pipeline 168

TOTAL 194

Chart represents

sensor units

1

SIGNED & AWARDED PROGRESSION

JANUARY2019 3JANUARY

2020 26FEBRUARY2021

Note: The chart above reflects a visual representation of how we believe the market is developing based on multi -year commercial demands that we currently see from customers and is not indicative of projected revenue or unit shipment.

Signed and awarded contracts represent agreed terms and conditions of supply, but do not reflect firm orders unless and until purchase orders are received. To date, shipments under and revenue from these signed contracts have not been material. Based on data as of February 19, 2021.

Additional Pipeline includes RFQ, RFI, and Pre-RFI projects. Pre-RFI projects are defined as i) a particular sensor and/or sensor set for a project has been identified, ii) the goal for a particular project has been identified, iii) pricing and the future ASP have been discussed, iv) an approximate volume growth over the

next 2-5 years has been discussed and identified and v) multiple meetings have taken place regarding the project with several technical discussion. There can be no assurance that any pre-RFI projects will result in significant future unit sales within any specific time frame, if at all.

Velodyne is currently in the process of negotiating RFIs, RFQs, and long-term contracts with many customers. The below pipeline only reflects identified projects as of February 19, 2021.


VELODYNE’S COMPETITIVE MOATS

High switching cost as customers spend years and

millions of dollars developing and validating

solutions around Velodyne’s technology, including

system design and software development

Automated manufacturing techniques, deployed at

high-quality manufacturing partners, drive down

costs and expand our TAM at high margins and

scale

Technology, products and manufacturing methods

protected by comprehensive global patent portfolio

One-stop source for all machine vision needs

across broad end-market applications

Public currency and well-capitalized balance sheet

enable us to drive selective industry consolidation

and further differentiate us from competitors

1

2

3

4

5

1Entrenched

Customer

Relationships

2Driving ASP

Reductions

Defendable

IP Portfolio

Diverse

Product

Portfolio

Access to

Capital

34

5


HOW OUR AGREEMENTS TYPICALLY WORK

• Customers typically buy products on a spot basis for several years during pre-contract process

• Customers forecast purchase volume for each contract year, with contracted ASPs for indicated volume

• Contracted ASPs drop as volumes increase

• Binding purchase order for Year 1 confirmed upon signing contract

• Non-recurring engineering (NRE) revenues may be generated in Year 1 of contracts

• Purchase orders for subsequent years typically to be confirmed by September, providing solid visibility on production volume and revenues

more than a year forward

• Velodyne can typically renegotiate pricing upward, at its discretion, if projected volume for any year drops more than 20% below forecast

Year 1 Year 2 Year 3 Year 4 Year 5Purchase Order

for Year 1Contract

Awarded / Signed

3-6 months1-6 months

Discovery

Up to 12 months

Initial Testing

Up to 12 months

Production (Recurring)

P R E - R F I R F I R F Q

System

Specification

C O N T R A C T

Software Development

and Validation

Hardware System

Validation


SUMMARY OF MARKET POSITION

Our Low-Cost Production Drives ASP Reduction and TAM Expansion

Across Industries and Product Portfolio

Sample

Text

Scale1 2 3 4

5 6 7

SCALE COMMERCIALIZATIONPIPELINE / MODEL BUILD

PORTFOLIO

PERFORMANCE / READINESS

SCALABILITY SOFTWARE

~11.7K UnitsShipped in 2020

~51.8K UnitsShipped Since Inception

26Agreements

~$95M2020 Revenue

• Bottom-up approach

• 194 active opportunities across end markets

Unmatched Breadth of

Portfolio for All Applications

• Multi-sourced supply chain and outsourced production

• Design-for-manufacturing process and know-how developed over a decade of manufacturing experience

• Very low cost silicon receivers and 905nm laser

• Velarray product line is automotive grade

• Mature and proven technologies in production today

• Optimal combination of price and performance

• Range of products applicable to diversified end-markets and performance requirements

• <20% of 2024E revenue forecast from software

• Forecasted software revenue based on direct feedback from OEMs using Velarrayhardware


REPRESENTATIVE CUSTOMERS

Automotive OEMs and

Tier 1 SuppliersAUTOMOTIVE | MOVING PEOPLEAuto System Integrator Last Mile Delivery

Non-Automotive

Markets

V E L O D Y N E L I D A R . C O M | 1 9FINANCIAL SUMMARY


FINANCIAL HIGHLIGHTS:FOURTH QUARTER 2020

Revenue Profile

Expanding Profitability

and Strong

Liquidity

Q 4 2 0 2 0 F I N AN C I A L S N AP S H O T

1 Comparison of growth is to Q4 20192 Represents calculations based on Non-GAAP metrics. See appendix for reconciliation of GAAP to Non-GAAP measures

Shipped 51.8K sensors

from inception

Enabling new applications

25 active multi-year

agreements at end of 2020

vs. 3 at the end of 2019

Improving margins with

transition to new overseas

manufacturing in 2020

(5.9%)Revenue

Growth1

4,237Sensors

Shipped

+1Contracts

11.6%Gross

Margin

($20.1M)Non-GAAP

Operating

Loss2

$350MCash on

Balance

Sheet


FINANCIAL HIGHLIGHTS:FOURTH QUARTER 2020

Revenue Profile

Expanding Profitability

and Strong

Liquidity

F Y 2 0 2 0 F I N AN C I A L S N AP S H O T

1 Comparison of growth is to Q4 20192 Represents calculations based on Non-GAAP metrics. See appendix for reconciliation of GAAP to Non-GAAP measures

Shipped 51.8K sensors

from inception

Enabling new applications

25 active multi-year

agreements at end of 2020

vs. 3 at the end of 2019

Improving margins with

transition to new overseas

manufacturing in 2020

(6.0%)Revenue

Growth1

11,710Sensors

Shipped

+22Contracts

34.1%Gross

Margin2

($62.4M)Non-GAAP

Operating

Loss2

$350MCash on

Balance

Sheet


STRONG CONTRACT AND REVENUE MOMENTUM

R E V E N U E

($ in millions)

FY19 Q4'20

$18.1

$14.4

$0.8

$3.4

0

2

4

6

8

10

12

14

16

18

20

4Q'19 4Q'20

Product Revenue

License and Services

P R O J E C T S I N O U R P I P E L I N E

~7M

Units

~9M

Units

131 Projects

183 Projects


STRONG CONTRACT AND REVENUE MOMENTUM

R E V E N U E

($ in millions)

FY 2019 Q4'20

$81.4$68.4

$20.0

$27.0

0

20

40

60

80

100

120

FY 2019 FY 2020

Product Revenue

License and Services

P R O J E C T S I N O U R P I P E L I N E

~7M

Units

~9M

Units

131 Projects

183 Projects


GROSS PROFIT AND OPERATING INCOME

N O N - G A A P G R O S S P R O F I T 1

($ in millions)

N O N - G A A P O P E R AT I N G L O S S 1

1 Gross Profit and Operating Loss are presented on a Non-GAAP basis (excludes stock-based compensation and amortization). See appendix for reconciliation of GAAP to Non-GAAP measures.

1.2% 11.6% % of Total

Revenue

($ in millions)

($20.1)

($27.2)

-30

-25

-20

-15

-10

-5

0

NM NM% of Total

Revenue

0

0.5

1

1.5

2

2.5

$2.1

$0.2

Q4’19 Q4’20 Q4’20Q4’19


GROSS PROFIT AND OPERATING INCOME

N O N - G A A P G R O S S P R O F I T 1

($ in millions)

N O N - G A A P O P E R AT I N G L O S S 1

1 Gross Profit and Operating Loss are presented on a Non-GAAP basis (excludes stock-based compensation and amortization). See appendix for reconciliation of GAAP to Non-GAAP measures.

29.4% 34.1% % of Total

Revenue

($ in millions)

($62.4)

($66.2)

-67

-66

-65

-64

-63

-62

-61

-60

NM NM% of Total

Revenue

28

28.5

29

29.5

30

30.5

31

31.5

32

32.5

33

$32.5

$29.8

FY’19 FY’20 Q4’20Q4’19


LEVERAGING EFFICIENT COST STRUCTURE

Note: Sales and Marketing, Research and Development and General and Administrative expenses are presented on a Non-GAAP basis. See appendix for reconciliation of GAAP to Non-GAAP measures.

36.7% 37.2%76.5% 63.5%

% of Total Revenue

31.2 % 23.4%

$5.9

$4.2

Q4'19 Q4'20

$7.0

$6.6

Q4'19 Q4'20

$14.5

$11.3

Q4'19 Q4'20

N O N - G A A P S AL E S & M AR K E T I N G

N O N - G A A P G E N E R AL & AD M I N I S T R AT I V E

N O N - G A A P R E S E AR C H & D E V E L O P M E N T

($ in millions) ($ in millions)($ in millions)

% of Total Revenue % of Total Revenue


LEVERAGING EFFICIENT COST STRUCTURE

Note: Sales and Marketing, Research and Development and General and Administrative expenses are presented on a Non-GAAP basis. See appendix for reconciliation of GAAP to Non-GAAP measures.

17.3% 28.6%55.8% 53.1%

% of Total Revenue

21.6 % 17.8%

$21.9

$17.0

FY2019 FY2020

$17.6

$27.3

FY2019 FY2020

$56.6

$50.7

FY2019 FY2020

N O N - G A A P S AL E S & M AR K E T I N G

N O N - G A A P G E N E R AL & AD M I N I S T R AT I V E

N O N - G A A P R E S E AR C H & D E V E L O P M E N T

($ in millions) ($ in millions)($ in millions)

% of Total Revenue % of Total Revenue


TARGET BUSINESS MODEL

Product (Sensor) Gross Margin Mid-to-High 40%s

Gross Margin Mid-to-High 50%s

R&D as Percentage of Revenue 20%

Sales as Percentage of Revenue 10%

G&A as a Percentage of Revenue 7%

EBITDA Margin 20+%

Free Cash Flow 15%


T H A N K Y O U

V E L O D Y N E L I D A R . C O M | 3 0APPENDIX


GAAP TO NON-GAAP GROSS PROFIT RECONCILIATION

NON-GAAP GROSS PROFIT

($ in millions) Q4 2019 Q4 2020 FY 2019 FY 2020

GAAP Gross Profit $0.2 ($5.3) $29.8 $25.1

Stock-Based Compensation – $7.4 – $7.4

Non-GAAP Gross Profit $0.2 $2.1 $29.8 $32.5

Margin % 1.2% 11.6% 29.4% 34.1%


GAAP TO NON-GAAP OPERATING LOSS RECONCILIATION

NON-GAAP OPERATING LOSS

($ in millions) Q4 2019 Q4 2020 FY2019 FY2020

GAAP Operating Loss ($29.8) ($111.5) ($69.0) ($153.9)

Stock-Based Compensation – $91.3 $0.1 $91.4

Gain on Sale of Assets Held-for-Sale – – – ($7.5)

Write-Off of IPO Costs – – – $3.5

Amortization of Acquisition-Related

Intangible Assets $0.1 $0.1 $0.2 $0.4

Restructuring – ($0.1) – $1.0

Legal Settlement $2.5 $0.1 $2.5 $2.6

Non-GAAP Operating Loss ($27.2) ($20.1) ($66.2) ($62.4)


GAAP TO NON-GAAP OPERATING EXPENSE RECONCILIATION

RESEARCH & DEVELOPMENT


GAAP R&D Operating Expense $14.6 $48.4 $56.9 $88.1

Stock-Based Compensation – ($37.0) ($0.1) ($37.0)

Amortization of Acquisition-Related

Intangible Assets ($0.1) ($0.1) ($0.2) ($0.4)

Non-GAAP R&D Operating Expense $14.5 $11.3 $56.6 $50.7



SALES & MARKETING


GAAP Sales and Marketing Operating

Expense$5.9 $19.0 $21.9 $31.8

Stock-Based Compensation – ($14.8) – ($14.8)

Non-GAAP Sales and Marketing

Operating Expense$5.9 $4.2 $21.9 $17.0



GENERAL & ADMINISTRATIVE


GAAP G&A Operating Expense $9.4 $38.8 $20.1 $65.7

Stock-Based Compensation – ($32.1) – ($32.3)

Write-Off of IPO Costs – – – ($3.5)

Legal Settlement ($2.5) ($0.1) ($2.5) ($2.6)

Non-GAAP G&A Operating Expense $7.0 $6.6 $17.6 $27.3


TRADITIONAL VISION SOLUTIONS ALONE HAVE SEVERE LIMITATIONS

Lack of precision at range

Poor object detection and recognition at range,

dangerous optical illusions

Localization: lack of mapping

Field of view: multiple sensors required

Poor performance at night, dawn and dusk

Poor performance in direct sunlight

Camera

High-Resolution Radar

Shortcomings


VELODYNE OFFERS MULTIPLE LIDAR ARCHITECTURES

Each Of Our Products Is Built With Solid State Lidar

HDL-64E HDL-32E VLP-16

(Puck

Series)

VLS-128

(Alpha

Prime)

S U R R O U N D

Long-range directional vision

Subtle vehicle integration

Robust solution for mass

adoption

Announced Future Product

D I R E C T I O N AL

Velarray Velabit

Ultrawide field-of-view for near-

range perception

Excellent resolution and point

density

Tailored to blind spot monitoring

Announced Future Product

H E M I S P H E R I C AL

Veladome

Sees 360-degrees around the

vehicle simultaneously

Best-in-class distance perception

Broad portfolio offering


KEY TECHNOLOGIES FOR SMART VISION

EMBEDDED SOFTWARE & ALGORITHMS

CUSTOM ASICS

• Converts Unstructured Data to

Structured Data

• Maintains High Accuracy Across

Operating Conditions

• Enables Advanced Levels of

Functionality

MICRO-LIDAR ARRAYS

• Enables

Miniaturization of Lidar

• Automotive-Grade

Qualified

• Proprietary ASIC Designs

• Lidar-Specific Data

Converters

• Enhanced Range and

Power Efficiency

(1)

(1)

(1)

ADVANCED MANUFACTURING

• Design for Manufacturing

• Precision Alignment

Techniques

• Calibration

Methodologies

____________________

(1) U.S. patent portfolio as of June 30, 2020.

21 Issued Patents

4 Allowed Patents

55 Pending Patents


VELODYNE IS THE AT-SCALE MARKET LEADER

____________________

Source: Public company websites and product datasheets.

(1) Long-Range defined as 200m and above and Short-to-Mid Range defined as less than 200m. Chart reflects sensors for which

stats are disclosed on company websites and product datasheets.

Performance (Range x Resolution x Field of View)

We Have the Broadest Product Portfolio with Superior Software-Driven Performance (1)

Alpha PrimeUltra PuckVelabit Alpha 64

Pandar40P Pandar64Pandar40M

OS0 OS1 OS2

InnovizPro InnovizOne

Scala B3

Velarray

M1600Puck

Velarray

H1600

Long-Range

Surround View

Short-to-Mid Range

Surround ViewSolid State

Directional


WHY MAJORITY OF VELODYNE PRODUCTS ARE 905NM

905nm (pulsed) 1550nm (pulsed)

Absorption in

AtmosphereLow At least 2-4 times worse in rain

Detector TechnologyStandard silicon detectors

Very high sensitivity

Expensive InGaAs Detectors

Low sensitivity

Lasers Can use low cost, solid state lasers

Fiber laser needed to achieve high laser power to

overcome atmospheric absorption and worse

detectors

Eye SafetyLower eye safety margin but can be made eye

safe

Higher eye safety margin but use of higher power

laser poses a threat to eye safety

Supply Chain MaturityMature components available from multiple

suppliers

InGaAs detectors without multiple suppliers.

Fiber lasers expensive and not widely available in

automotive grade.

MiniaturizationDue to the use of only solid state components,

amenable to significant miniaturization

Fiber laser will always require a separate laser

source that is actively cooled and placed in a

different location such as vehicle trunk


SALES FOOTPRINT

Direct Sales / Service

Reselling Partner /

Integrator

Documents

Fourth Quarter 2020 VLDR Earnings Presentation