Mobileye Global Inc. Class A Common Stock Canaccord Genuity's 46th Annual Growth Conference

George, appreciate it. Let's start from the top.

Yeah. I think our inventories are held generally at our tier 1 customers, and we're around five weeks. It's typically you're in between four and five weeks. I think it's been an industry-wide phenomenon this year that the automakers are looking to have a little bit more safety stock in the system. We did about 1 million units in Q1, resulted in safety stock increase, but still within normal levels. Where that goes from here, we don't really know. I think that with supply chain tightness that's out there, we think that it stays at this level.

There's always the chance that the tier 1s want to manage inventory down at the end of the year and then replenish it in Q1, and we've incorporated some of that potential in our second half guidance, which is one of the reasons why it's a little bit below the first half. I think normal, what the customers wanted, and we'll manage it as it comes.

Yeah, exactly. I think you've heard, I was following earnings last week, and several auto suppliers had negative working capital related to this, where they're holding more inventory. So there is always a chance that they wanted to manage that down by the end of the year.

Yeah. All three of the design wins that we have for Mobileye Surround ADAS, which is a one EyeQ6 high supported system that manages five or six cameras and a few radars. We have three design wins that all launch in 2028. You're talking between 2.5 and 3 times the average transaction price that we have today in our base ADAS business, which is around $46. Very good profitability, similar margin profile to the base ADAS business, just at a higher price. It's representing on average about 30%-40% of each of those automakers' volumes. That doesn't happen all in 2028, but as new vehicles launch, and they get the system. I think the trend in the industry is that this type of functionality, which is basically hands-free on highways, incremental safety features to meet upcoming regulations, is considered a have-to-have.

There's multiple ways to do it. Stellantis decided to do more of a single front camera plus REM mapping instead of doing the full surround camera. That enabled them to get it up and running in 2027. There's different flavors, but even that program is very roughly equivalent profitability per unit to Mobileye Surround ADAS. Yeah, I think we see a scenario where 30%-40% of our volume converts to this type of product over the next four or five years.

Which could drive ASPs into the $80-$90 range.

Is similar percentage margin to the core business, which is in the mid to high 60s now. So, in that range. Hmm.