Mobileye is an Israel-based company that develops vision-based advanced driver assistance systems using proprietary computer vision algorithms and integrated circuits. The company provides aftermarket driver assistance products and partners with automakers to incorporate its technologies into vehicles to enable features from lane departure warning to partial autonomous driving capabilities. Mobileye's strategy is to introduce autonomous features incrementally using camera-based systems and a cloud-based mapping service to support automakers in achieving full vehicle autonomy over time.

1. Overview
Founded in 1999, Mobileye is a 400+ person technology company based in Israel that
develops ADAS solutions. The company claims three competitive strengths:
1) Vision processing software algorithms based on deep learning which allow series of
camera only ADAS features
2) IC design competencies of low power / low cost vector accelerators that are an order of
magnitude more efficient than the competition
3) Millions of “road experience miles”, translating to a large validation dataset used to
train and optimize features
Products
EyeQ Vision Processing Platform
Family of automotive grade chips providing low power and
inexpensive computing platforms which support computationally
intensive vision applications. Each generation has improved
performance by 6X.
Series 5/6 Aftermarket Unit
A $1,000 product providing FWC, PCW, HMW, LDW, IHC, and
SLI features. Valuable for 1) customer acquisition, allowing
OEMs to easily evaluate on their own cars, 2) building datasets
to train models, and 3) dealings with governmental agencies.
Road Experience Management (REM)
A cloud based service, and an enabler in Mobileye’s approach to the Autonomous
driving market (see below). Delivers crowd sourced high def maps with 10cm accuracy.
Primary principle is “Sparse 3D, Dense 1D” which caps network bandwidth requirement
at 10 KB/Km.
Strategy
Mobileye is “fabless”, partnering with STMicroelectronics, but it has kept new hardware
launches to a minimum. The channel strategy involves selling thru Tier 1s for fulfillment
to cut channel costs.
Mobileye has established a firm position in the $4.5B Safety Rating Regulation Market
by introducing features identified by NCAPs to achieve 5 star safety rating. Relying only
on vision/camera has allowed the company to reduce total cost and enhance penetration.
Next, it has started to introduce Autonomous
Driving Level 2 features on the same hardware,
thus increasing addressable market by 3x.
Mobileye is focused on traditional OEMs who aim
to achieve full autonomous capabilities
incrementally (unlike Google). To support this,
Mobileye is placing bets on two things.
First, it is launching REM, which complements
deep learning capabilities by providing a
reasonable ‘prior’, and mitigates the need for 3D
HD maps. OEMs can leverage own assets to
supply a critical item needed to achieve full
autonomy at a reasonable cost. OEMs can share
mapping data, and Mobileye claims
commitments from 3 OEMs, constituting 30% of
market (GM,VW, and presumably Toyota), to
deploy. The camera also becomes a strategic
assets for OEMs rather than a commodity sensor.
Second, Mobileye is aiming to develop capabilities that implement driving policy and
planning capabilities, based on a “multi-agent” gaming model. This allows a safer
coexistence of full autonomous and regular cars.
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Roadmap
Product Launches EyeQ1
Series 5 Aftermarket
EyeQ2 EyeQ3
Series 6 Aftermarket
REM
EyeQ4 (Engr. Sample)
EyeQ4 (Engr. Sample)
EyeQ4
Camera VGA (640 x 480) - 12bit
36 FPS
Up to 2048x2048
Monochrome, Bayer, RGB,
Y:Cb:Cr
50° Monocular Camera
1.3M imagery
-
150°, 50°, 25° trifocal
Front radar, 4x side
radar, front/back liar
Trifocal + 5 cameras
Software Feature
Launches
Two bundes
- LDW,TSR, IHC
- LDW, v-AEB
Aftermarket
- FWC
- PCW
- HMW
- LDW
Pedestrian Detection
System (Industrial)
LDW
VD 2nd generation
PD
PCW
IHC
TSR
LKA
FCW
HMW
ACC
TJA
p/v AEB Partial breaking
Road profile
reconstruction
Debris detection
Multiple focal camera
Aftermarket
Bluetooth
smartphone support
Blind spot detection
Traffic Light Detection
(US)
Night-time PD
FSPL
PPHC
REM Prior to resolve
ambiguity
Improved drivable
paths
Object Detection
Full Speed ACC
LKA in construction
zones
3D VD
Automated parking
Market
Notable OEM
Feature
Introductions
LDW
CWAB
DAC
LDW
AHC
TSR
p/v AEB
partial breaking
IFCW ACC
TJA
p/v AEB
vAEB Full Breaking
VW REM
announcement at CES
Animal Detection
First autonomous
vehicle launch
Additional
New Launches
LDW 5 new launches Two commercial
launches autonomous
3x EyeQ3 configuration
New Launch MSRP
$K(mean/min)
$53
$37
$80
$80
$34
$34
$30
$16
$33
$22
$38
$23
$23
$20
Models 5 10 13 19 34 54 109 160 215 247
Mobileye Brief
Autopilot
S80
V80
XC60
XC70
BMW7 S60 BMW1
BMW3
Volt
Equinox
Terrain
Cad XTS
Cad DTS
i3
BMW1
BMW3
BMW5
BMW7
Super Cruise
KEY
p-AEB: Pedestrian Automatic Emergency Braking
v-AEB: Vehicle Automatic Emergency Braking
ACC: Adaptive Cruise Control
AHC: Adaptive High Beam Control
CWAB: Collision Warning Auto Brake
DAC: Driver Alert Control
DNN: Deep Neural Network
FCW: Forward Collision Warning
FSPL: Free Space thru Pixel Labeling
HMW: Headway Monitoring and Warning
HPP: Holistic Path Prediction
IHC: Intelligent High Beam Control
LDW: Lane Departure Warning
LKA: Lane Keeping Assistant
LKS: Lane Keeping and Support
PCW: Pedestrian Collision Warning
PD: Pedestrian Detection
PPHC: Path Planning using Holistic Cues
SLI: Speed Limit Indicator
TJA: Traffic Jam Assist
TSR: Traffic Sign Recognition
VD: Vehicle Detection
Camera/Radar Fusion Multiple Cameras
Single Monocular Camera REM
Autonomous driving
$0
$60
$120
$180
$240
2011 2012 2013 2014 2015
22
18
13
117
57
25
563
Estimated NRE
EyeQ
Aftermarket
Total Revenue
$19
$40
$81
$144
$240
$45
Revenue(M) EBITDA(M) and Margin
Company
Guidance
AEB
Level 3
Autonomous
Driving
Level 4
Autonomous
Driving
Level 2
Autonomous
Driving
pro-forma
Company swung to profitability in 2013, after shipping
2.6M cumulative units. The loss in 2014 was due to a
$60M charge for options granted to founders, without
which the profitability would have grown by 200% to
$45M. Margins have been steady at 74%.
Financials
YOY growth (70%-100%) outpaces ADAS market
growth (~30%). Given 100% unit CAGR, aspirational
target ASP ($132), Mobileye may become the
dominant autonomous driving systems vendor.
Very few hardware releases, but frequent
software features on the same hardware have
solidified solution value proposition.
Incremental march towards autonomous driving.
Camera only features have cut costs (parts, with
no radar requirement, and integration), allowing
penetration in non-luxury segments. Has won
80% of all RFQs received in the past seven years.
Currently company claims 22 OEM customers.
-$3
$25
$53
$80
50%
58%
65%
73%
80%
2011 2012 2013 2014 2015
Margin
EBITA(M)
$76
-$15
$15
-$2
-$12
74%74%74%
70%
64%64%
70%
74% 74% 74%
0
4.5
9
13.5
18
Safety
Rating
Regulation
Autonomous
Driving
Trend
Autonomous
With
REM
Mobileye Addressable
Market ($B)
Level 2
Autonomous
Driving
Level 3
Autonomous
Driving
$4.5
$15
Present Future
Without
options
charge
0
1250
2500
3750
5000
$0
$35
$70
$105
$140
2011 2012 2013 2014 2015 2016 2017 2018
EyeQ ASP
Estimated ASP
2018 Low end
2018 High end
Units (K)
290
668
1,303
2,656
5,000
$132
$42$42
$35 $37
$44 $44
ASP flat in 2014 due to mix of app bundles in
pipeline. Company forecasts ASP to multiply by up to
3x (to $132) in 2018 by adoption of autonomous
driving features.
Average Selling Price (ASP) and Units
2/15/16
albertjordan@mac.com