Workhorse Group, Inc. · NASDAQ:WKHS
Workhorse — Investor Presentation (January 2017)
19 slides from Workhorse's investor presentation, January 2017
Slide 1: Workhorse Group Inc. January 2017
WORKHORSE GROUP INC. JANUARY 2017 © 2017 Workhorse Group Inc. All Rights Reserved.
Slide 2: Industry Data and Forward Looking Statements
INDUSTRY DATA AND FORWARD LOOKING STATEMENTS Statements made in this presentation regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Because such statements are subject to risks and uncertaintie
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS • Leading manufacturer of medium-duty electric step vans in the U.S. targeting commercial fleets Only OEM building electrified medium-duty vehicles in the U.S. • Billion dollar annual market opportunity as fleets turn over 20,000 step vans per year • Blue-chip customer base a
Slide 4: Workhorse at a Glance
WORKHORSE AT A GLANCE Workhorse (“WKHS” or “the Company”) is a leading manufacturer of last-mile, cost effective delivery systems FOUNDED: 2007 // HEADQUARTERS: CINCINNATI, OHIO // EMPLOYEES AND CONTRACTORS: 100 EXCHANGE: NASDAQ // TICKER SYMBOL: WKHS • Automotive electrification company with strong
Slide 5: Recent Developments
RECENT DEVELOPMENTS Workhorse continues to deliver on its business plan and is poised for success going forward Recent Business Highlights • January 2016: Workhorse completes the first test delivery with its HorseFly Drone • September 2016: UPS orders an additional 200 Workhorse electric vehicles as
Slide 6: What We Do
WHAT WE DO Workhorse is a technology company offering integrated products, enabling greater efficiency and profitability Workhorse Step Vans Workhorse Metron Telematics Workhorse W88 Chassis Layout – E-GEN Illustration Cloud-based, database-driven Panasonic 18650 Li-ion Battery Pack with integrated
Slide 7: Workhorse Works with Tier-1 Suppliers
WORKHORSE WORKS WITH TIER-1 SUPPLIERS Workhorse has successfully locked up best-in-class suppliers to ensure superior products • Panasonic provides Workhorse • The BMW REx engine • Prefix provides premier design with their lithium-ion battery integration helps make the and engineering solutions tech
Slide 8: Significant Market Opportunity
SIGNIFICANT MARKET OPPORTUNITY Core Focus Target Fleet Customers • Largest 50 commercial fleets of class 3-6 (medium-duty) vehicles represent more than 203,000 medium-duty vehicles • Workhorse focuses on penetrating large, last-mile delivery fleets • Management estimates 20,000 step van units ordere
Slide 9: The Workhorse Value Proposition
THE WORKHORSE VALUE PROPOSITION Why Customers Choose Workhorse Total Cost of Ownership Includes purchase price, infrastructure allowance, fuel and maintenance • Low total cost of ownership can save fleets more than $350 $165,000 per vehicle over 20 years E-GEN GAS $303.6 • No vouchers required – thr
Slide 10: Competitive Landscape
COMPETITIVE LANDSCAPE Workhorse manufactures the only step van that addresses all four key features that fleets are seeking Other Electric Vehicles (Non-OEM) Medium-Duty Step Van P P P P EV Drive Train P P Conventional Fueled Conventional Fueled Lighter Design and Heavy duty, long Vehicles create Ve
Slide 11: Current and Target Workhorse Customers
CURRENT AND TARGET WORKHORSE CUSTOMERS Known for its reliability, Workhorse has established a blue-chip client base Current Customers Near-term Customer Opportunities © 2017 Workhorse Group Inc. All Rights Reserved. 10
Slide 12: Established Relationship with UPS
ESTABLISHED RELATIONSHIP WITH UPS • April 2012: Workhorse signs agreement with Navistar to electrify UPS delivery trucks • April 2015: UPS deploys 2 Workhorse E-GEN range-extended vehicles purchased directly from Workhorse in 2014 • Headquarters: Atlanta, GA • July 2015: Workhorse begins delivery of
Slide 13: Additional Current Customer Relationships
ADDITIONAL CURRENT CUSTOMER RELATIONSHIPS Workhorse has achieved commercial success with multiple leading customers Relationship Overview • October 2016: Workhorse range-extended vehicle integrated a hydrogen fuel cell for the FedEx Express/DOE Hydrogen Fuel Cell Extended-Range Battery Electric Vehi
Slide 14: Units Shipped
UNITS SHIPPED Workhorse has seen significant shipment growth since the beginning of 2016 Workhorse Historical and Projected Unit Shipments 60 57 50 40 36 Units Shipped 30 20 18 10 3 0 Q1 2016A Q2 2016A Q3 2016A Q4 2016E 1 Source: The Company. 1) Q4 2016 figure is preliminary. © 2017 Workhorse Group
Slide 15: Near-Term Products in Development
NEAR-TERM PRODUCTS IN DEVELOPMENT Workhorse plans to capitalize on two large upcoming market opportunities U.S. Postal Service Award Workhorse W-15 Work Truck • The USPS intends to retire its fleet of 180,000 vehicles and replace them with Next Generation Delivery Vehicles (NGDV) • In September 2016
Slide 16: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM The Workhorse team brings years of experience in technology and engineering Stephen Burns, Founder, CEO & Director Mr. Burns has founded several companies, most recently iTookThisOnMyPhone.com, a leading mobile photo and video-sharing technology company, MobileVoiceContro
Slide 17: Recent Developments
RECENT DEVELOPMENTS Workhorse continues to deliver on its business plan and is poised for success going forward Recent Business Highlights • January 2016: Workhorse completes the first test delivery with its HorseFly Drone • September 2016: UPS orders an additional 200 Workhorse electric vehicles as
Slide 18: Appendix
APPENDIX © 2017 Workhorse Group Inc. All Rights Reserved. 17
Slide 19: Intellectual Property
INTELLECTUAL PROPERTY Workhorse Technologies current and pending patents, service marks and trademarks The asset purchase of Workhorse Custom Chassis in March 2013 included several patents, schematics, CAD files, design documents, bill of materials, and rights to all vehicles including the W22, W42,
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