Aspen Aerogels, Inc. · NYSE:ASPN
Aspen Aerogels — Q1 2023 Earnings Presentation
25 slides from Aspen Aerogels's earnings presentation, May 4, 2023
Slide 1: Aspen Aerogels Q1 2023 Financial Results Call
May 4, 2023 ASPEN AEROGELS Q 1 2 0 2 3 F I N A N C I A L R E S U LT S C A L L
Slide 2: Disclaimer on Forward Looking Statements
Disclaimer on Forward Looking Statements This presentation and any related discussion contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to be materially different from
Slide 3: Disclaimer on Forward Looking Statements
Disclaimer on Forward Looking Statements The presentation contains information regarding certain financial targets with respect to the Company. Such financial targets constitute forward looking information and is for illustrative purposes only and should not be relied upon as necessarily being indic
Slide 4: Q1 2023 Developments
Q1 2023 Developments Strong revenue growth, accelerating commercial traction and contract manufacturing capacity present a bright outlook Q1 2023 Highlights Commercial Highlights • Grew quarterly revenue by 19% YoY • Awarded PyroThin® contract for European EV commercial truck • Delivered 11% gross p
Slide 5: Right-timing Plant II Capacity to Match Demand
Right-timing Plant II Capacity to Match Demand Contract manufacturing supply for Energy Industrial enables total revenue capacity of $550M to meet near-term demand Plant II construction was on track … and as near-term customer volume …2024 start-up is no longer needed for H1 2024 commissioning… dema
Slide 6: Liquidity Outlook and Financing Approach
Liquidity Outlook and Financing Approach With enough liquidity to manage the company into generating positive cash flow, we can remain restrained on ATM sales Near-term Liquidity Outlook without Plant II LTM At the market Offering Share Sale Proceeds Summary $ in millions ASPN Net Funds Raised / Sto
Slide 7: Q1 2023 Financial Highlights
Q1 2023 Financial Highlights 19% YoY revenue growth driven by strong demand across both EV Thermal Barriers and Energy Industrial products $ in millions except EPS Q1 2022 Q1 20231 2023 Outlook1 Commentary 15 Month Quarterly Trajectory Strong demand drove 10% Revenues - $M REVENUES $38.4 $45.6 $200.
Slide 8: PyroThin Thermal Barrier Opportunity Drivers
PyroThin® Thermal Barrier Opportunity Drivers Eight different macro parameters drive our content per vehicle (CPV) opportunity, and long-term revenue potential Commentary Vehicle sales by • China expected to lead global EV penetration 1 North America Europe China Rest of World region • Higher price
Slide 9: EV Battery Form Factor Outlook
EV Battery Form Factor Outlook PyroThin® is best suited for Prismatic and Pouch cells, which are projected to represent over 70% of the market Global BEV + PHEV volumes are 2023 2030 projected to increase ~3.5X by 2030 Global light vehicle 1 BEV+PHEV sales by form factor Total light vehicle1 BEV & P
Slide 10: EV Battery Chemistry Outlook
EV Battery Chemistry Outlook Nickel-based batteries, which have higher energy densities and thermal propagation risk make up >60% of the market 2023 2030 OEM Expert Commentary on Aerogel Compatibility Total light vehicle1 BEV + PHEVs sold annually by cell chemistry, by region (# of vehicles) LFP2 Lo
Slide 11: OEM Battery Changes Require Time and Investment
OEM Battery Changes Require Time and Investment Battery pack, cell chemistry or form factor changes are complex decisions with large capital and timing implications Typical lead times Change Discretion / Description (years to SOP) Typical cost1 Significantly affected processes • Loading • Isolation
Slide 12: Recent Thermal Propagation Recalls
Recent Thermal Propagation Recalls Over the past couple of years, higher EV volumes have revealed the risks of thermal runaway and propagation in EVs Timeline of recent thermal propagation recalls Two recent examples Kona (90K vehicles) 2020 Fires–folded anode tab All PHEVs (26.9K vehicles) Chevy Bo
Slide 13: Thermal Propagation Regulatory Landscape
Thermal Propagation Regulatory Landscape Further regulations are expected globally through 2030, led by UN and China ~2019 2020~2023 2024~2028 2030~ (expected) (expected) T/P International Standard: Enactment of national T/P standards: Reinforcement of international/national T/P Reinforcement of Aft
Slide 14: EV Thermal Barrier Award and Quote Pipeline
EV Thermal Barrier Award and Quote Pipeline 2023 will be an important commercial year, as we expect ~$3B+ in program decisions over the next 3 quarters Estimated Potential Region Customer Sourcing Approach Form Factors First SOP Commercial Status Award and Quote Value1 In Production Battery Platform
Slide 15: Summary
Summary Earning our right to win by leveraging the Aerogel Technology PlatformTM, executing, and investing to grow profitably DEMONSTRATED OPERATING EXECUTION Strong Q1 revenue and gross profit showcase improving operating efficiencies, including maintaining OPEX flat quarter-over-quarter ADVANCED P
Slide 16: Appendix
Appendix a SPEN\crogels
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Q1 FY 2023 Outlook ($ in thousands) 2023 2022 Low High Net loss (16,796) (19,484) (101,900) (91,900) Depreciation and Amortization 2,704 2,129 22,300 22,300 Stock-based Compensation 2,267 1,828 11,000 11,000 Interest Expense, net (2,112) 860 8,600 8,600 Adjusted EBITD
Slide 18: Batteries 101: EV Battery Cell Overview
Batteries 101: EV Battery Cell Overview Four key elements of a battery cells: the cathode, the anode, the separator and the electrolyte. Chemistry Description Examples - - - - - The positive or oxidizing electrode acquires • LFP 3 Separator 1 Cathode electrons from the external circuit and is • NMC
Slide 19: Batteries 101: Cell Form Factor Overview
Batteries 101: Cell Form Factor Overview Current cell format options include cylindrical, pouch, and prismatic. Cylindrical Pouch Prismatic ~26% ~26% ~48% EV 2023 market share1 EV 2023 market share1 EV 2023 market share1 • Oldest and most standardized • Most flexible and customizable • Less standard
Slide 20: Batteries 101: Cell Chemistry Overview
Batteries 101: Cell Chemistry Overview Major EV battery chemistries are high-nickel, low/medium-nickel, and LFP/LMFP; solid-state batteries under development 2023 Est. Market Chemistry Composition Overview Share1 Cathode: • Nickel (>70%), cobalt • Manganese (NMC only) • Highest energy densities High
Slide 21: Global Vehicle Battery Size Outlook
Global Vehicle Battery Size Outlook Battery sizes projected to grow modestly by 10-20 kWh for BEVs, 5-15 kWh for PHEVs; North America with largest packs Battery pack size1 for light vehicle BEV & PHEVs, by region (kWh) Key takeaways BEV PHEV General increase in battery pack sizes from +2% p.a. +1% p
Slide 22: Tightening Global Light Vehicle Emissions Standards
Tightening Global Light Vehicle Emissions Standards Regulatory pressure accelerates with Europe targeting 100% ZEV1 in 2035 CO2 (g/km), NEDC Average 220 2000-2020: 200 -3% 180 Average Per 'Fit for 55' framework 160 2020-2030: (not yet signed). Existing law 140 is 59 g/km in 2030 -6% 120 100 80 2030:
Slide 23: Global Light Vehicle EV Market Adoption Forecast
Global Light Vehicle EV Market Adoption Forecast BEV+PHEV share surpasses 45% in 2030 Powertrain mix for light vehicle sales globally (M of vehicles) Electrification (%) 90 120 110 80 2% 100 1% 6% <1% 70 4% 3% 90 2% 1% 7% 60 80 5% 15% 19% 23% 27% 15% 11% 32% 36% 41% 70 10% 3% 4% 50 3% 4% 5% 62% 13%
Slide 24: EV Adoption by Key Markets
EV Adoption by Key Markets Europe leads EV adoption ahead of China and US, driven by strict regulation Powertrain mix for light vehicle sales by region (M of vehicles) US EU CN RoW 4% <1% <1% <1% <1% 3% 9% 2% 11% 1% 6% 1% 14% 1% 19% 22% 12% 8% 5% 29% 16% 3% 35% 7% 3% 46% 1% 13% 14% 9% 52% 4% 16% 54%
Slide 25: - ASPEN|acrogels
- ASPEN|acrogels