Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 45

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 5
Chunk 45
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 value-added features to drive growth. In particular, we emphasize engineering for tomorrow and believe that anticipating
customer needs and preferences is an integral part of customer adoption. As a result, our business and engineering personnel become closely
acquainted, and develop deep relationships, with our customers. These close customer relationships enable us to identify and forecast
the needs of our customers and draw upon our intellectual property portfolio and expertise in technology research and development to
create new products and successfully position our portfolio within the ever-changing business environment.

Leveraging our manufacturing
and operational capabilitiesIn recent years, we have made strategic investments to expand our manufacturing capabilities.
We operate as a one-stop shop and are deeply involved across our products’ value chain, spanning across product development and
nanoparticle synthesis through lamination and processing, enabling us to more effectively realize opportunities to reduce production
costs and react faster to fluctuations in market demand. We believe there is an opportunity for significant margin expansion as we continue
to scale our business and benefit from increased capacity utilization and fixed operating leverage. We also expect to benefit from improved
purchasing power for our raw materials and components and continued manufacturing efficiencies and productivity initiatives driven by
our research and development efforts both on the material science and engineering sides. As an example, we have successfully reduced
LC film thickness from 25 microns to 20 microns enabling an approximately 20% reduction in material cost for select products and have
also successfully doubled our LC line running speed. We have identified and have begun to implement additional projects that we expect
will provide incremental net manufacturing productivity and improved margins in the coming years.

AcquisitionsWe
believe we are well-positioned as an acquirer of choice due to our global presence, industry-recognized leadership in innovation, diverse
manufacturing network and highly entrepreneurial, multi-cultural team with significant engineering and material science expertise. As
a public company, we expect to have the added flexibility of financing future acquisitions through our public currency in addition to
other funding sources. We have a proven track record with our successful acquisition and integration of Vision Lite in January 2022
and intend to target opportunities that strengthen our market position, expand our product portfolio, enhance our technologies and extend
our manufacturing capabilities, including through vertical integration. In September 2023, we completed an acquisition of Resonac’s
full SPD intellectual property portfolio and business, which included obtaining and learning the know-how with respect to Resonac’s
technical and business information related to such acquired patents, another