Xos, Inc. · NASDAQ:XOS
Xos — NextGen Acquisition — SPAC Merger (June 2021)
49 slides from Xos's SPAC merger presentation, Jun 24, 2021
Slide 1: Analyst Day Presentation June 23, 2021
Analyst Day Presentation June 23,2021 Confide n tial and Privileged, P r operty of X os, Inc. 1 Deli v ering I n t ellige n t Mobility
Slide 2: Information pack disclaimer
This information pack (the "Pack") is provided for informational purposes only and has been prepared on a confidential basis by Xos, Inc . (the “Company”) and NextGen Acquisition Corporation ("NextGen") and is being provided solely for use in evaluating or pursuing a business relationship between the
Slide 3: Use of Projections and Description of Key Partnerships
Use of Projections and Description of Key Partnerships The Pack contains projected financial information with respect to the Company, namely revenue, gross profit, operating capital expenditures, Adjusted EBIT, Adjusted EBITDA, EBITDA margin and Net Working Capital for 2020 – 2025 . Such projected fina
Slide 4: Xos and NextGen Leadership Team
Kingsley A f emikhe – CFO ● Bac k g r ound in i nv estme n t banking at UBS and Deutsche Bank. ● Former Group Head of Strategy and M&A at MET Group. ● L eads X os’ finance departme n t . Giordano Sordoni – COO, Co - Founder ● Prior experience managing and operating commercial v ehicle flee t . ● Leads
Slide 5: Delivering Intelligent Mobility: Mission
Delivering I n t ellige n t Mobility M I S S I O N Decarbonize comme r cial t r anspor t ation th r ough purpose - built t echnology at the intersection of energy and software Confide n tial and Privileged, P r operty of X os, Inc. 5 5 Confide n tial and Privileged, P r operty of X os, Inc.
Slide 6: Xos at a Glance
● Leading battery - electric mobility provider of medium - and heavy - duty vehicles ● V ehicles cur r e n tly in p r oduction deli v e r ed t o customers ● Proprietary, purpose - built and proven sustainable technology ● St r ong backlog of 6,000+ o r ders f r om contracted customers 1 ● Highly e x
Slide 7: Investment highlights and NextGen value add
$100B T A M 1 f or Comme r cial V ehicles E - commerce growth and regulations driving a new mobility ecosystem. Compelling ESG Opportunity with Strong Revenue Growth Predicted to save 49 megatons of CO 2 through projected vehicle deliveries made by 2025. P r o v en V ehicles on the R oad Commercial
Slide 8: Transaction Overview
TIMELINE ● Xos and NextGen entered into a business combination agreement in February 2021. ● Transaction is anticipated to close in Q3 2021. ● Post - closing company will be a Delaware corporation and retain the Xos name. TRANSACTION FUNDING ● $515mm cash to balance sheet, subject to shareholder red
Slide 9: Company Overview
Company Overview 01 9 Confide n tial and Privileged, P r operty of X os, Inc.
Slide 10: Experienced Leadership Team
Experienced Leadership Team Da k o t a Semler Co - Founder, CEO Xos has built a world - class team dedicated to decarbonizing transportation. R ob F erber CTO Giordano Sordoni Co - Founder, COO Kingsley A f emikhe CFO BUSINESS DEVELOPMENT & OPERATIONS Jose Cas t añeda VP Business Development Adam Ru
Slide 11: Focus on last-mile and return-to-base segments
CLASS 8 REGIONAL CLASS 3 CLASS 4 CLASS 5 CLASS 6 CLASS 7 CLASS 2 ● T r a v el < 200 miles per shift ● R eturn t o base at nig h t ● P r edic t able r ou t es X os Is F ocused On The F as t - G r o wing L as t - Mile and R eturn - t o - Base Segments. CLASS 8 LONGHAUL Confide n tial and Privileged, P
Slide 12: A New Mobility Ecosystem Is Emerging
A New Mobility Ecosystem Is Emerging ● Trucks in the U . S . emit as much Greenhouse Gas (“GHG”) as cars, with less than 45 % as many miles driven, producing over 750 million tons of GHG in the U . S . annually . Regulation is intensifying as a result . ● Approximately 20 countries have committed to
Slide 13: Large and Growing Last-Mile Market for Electric Vehicles
$100B 1 GLOBAL LAST - MILE MD & HD TRUCK SALES INTERNATIONAL M ARK E T 66% Confide n tial and Privileged, P r operty of X os, Inc. 13 Large and Growing Last - Mile Market for Electric Vehicles Xos focuses on the medium - and heavy - duty last - mile commercial segments where the electrification opport
Slide 14: Zero-Emission Vehicles on the Road and Full Suite in 2021/22
4/5 5/6 6/7 Regional 7/8 Regional 5 - 8 Regional 6 - 8 2023 Available Now 2021 2022 Available Now Available Now Not Published 100 miles 100 - 200 miles 100 - 275 miles 250 - 380 miles 100 - 200 miles Battery Electric Battery Electric Hydrogen Fuel Cell Battery Electric Outsourced from (Panasonic) X
Slide 15: Industry-Leading Unsubsidized Total Cost of Ownership
RELATIVE TO DIESEL RELATIVE TO ALTERNATIVE FUEL TOTAL COST OF OWNERSHIP LIFETIME MILES MEDIUM - DUTY (CLASS 5 - 6) Payback Period T o tal Savings $116K < 3 years Payback Period T o tal Savings HEAVY - DUTY (CLASS 7 - 8) $36K - $41K NA Payback Period T o tal Savings $262K ~1 year Payback Period T o t
Slide 16: TCO Advantage Driven by Core Proprietary Technologies
TCO Advantage Driven by Core Proprietary Technologies Confide n tial and Privileged, P r operty of X os, Inc. 16 XOS BATTERY SYSTEM (“X - PACK”) ● Proprietary “cut - to - length” battery architecture reduces acquisition cost by eliminating unnecessary battery capacity ● Forced air - cooling technolog
Slide 17: Strong Customer Traction
St r ong Cus t omer T r action KEY CUSTOMERS Xos is working with the world’s largest fleet partners and has deployed vehicles with customers ADDITIONAL PIPELINE BUSINESS SERVICES DRAYAGE, LTL, FTL Confide n tial and Privileged, P r operty of X os, Inc. LAST MILE & VOCATIONAL & DSD WORK TRUCK ADDITIONA
Slide 18: Cornerstone Go-to-Market Agreements in 2021
Confide n tial and Privileged, P r operty of X os, Inc. ● Purchase and distribution agreement for 1,000 vehicles ● Lonestar to provide distribution, service, and manufacturing support for Xos vehicles in Texas ● Lonestar is key partner for large corporate parcel delivery fleets such ● Multi - year pur
Slide 19: Xosphere Fleet-as-a-Service Business Model
Xosphere Fleet - as - a - Service Business Model X os o ff ers a bundled all - in - one pac k age that all o ws fleets t o access all the tools and service they need to go electric with a single poi n t of co n t act at a fi x ed mo n thly e xpense. XOSPHERE BUNDLED OFFERING Confide n tial and Privilege
Slide 20: Fleet-as-a-Service Expected to More-Than-Double Lifetime Revenue per Vehicle
Li f etime R e v enue $123,000 Es t . Gr oss Ma r gin 27.0% Li f etime R e v enue $179,000 Es t . Gr oss Ma r gin 34.0% 59% of the total revenue generated per vehicle delivery is projected to be generated by products and services other than the vehicle sale. Fleet - as - a - Service Revenue (59%) V
Slide 21: Xos Financial Services with DLL
L eading global v endor finance compa n y o ff ering financing solutions t o equipme n t manufacturers, dealers, distributors and end users . X os has partne r ed with DLL t o initia t e the X os Financial Services p r og r am X OS FINANCIAL SERVICES (“XFS”) € 35 Billion Global managed port f olio serv
Slide 22: Technology Overview
Technology Overview 02 22 Confide n tial and Privileged, P r operty of X os, Inc.
Slide 23: Modular EV Platforms Tailored for Last-Mile Market
PLATFORM VEHICLE CLASSES X - PLATFORM CHASSIS VEHICLES MD X - PLATFORM Class 5 - 6 Adap t able chassis f or on - high w a y , pickup and deli v er y . HD X - PLATFORM Class 7 - 8 Adap t able chassis f or on - highway, v ocational, and se v e r e w ork condition. POWERTRAIN Various P ow ert r ain sol
Slide 24: Battery Specifically Designed for Commercial Truck Applications
Battery Specifically Designed for Commercial Truck Applications 2170 Cell Xos CMU Xos Module 4 - 10kwh Module size 30 - 60kwh Bat t ery bloc k s +170wh/kg Gr avimetric ene r gy density ● “Cu t - t o - length” modular a r chi t ectu re based on final vehicle build requirements ● E ach pack co n t ains
Slide 25: Proprietary Software Powers our Sustainable Energy Solutions
Proprietary Software Powers our Sustainable Energy Solutions Confide n tial and Privileged, P r operty of X os, Inc. 25 XOSPHERE INTELLIGENCE PLATFORM 1 The Xosphere Intelligence Platform is the centralized control hub for fleets to manage their X os v ehicles. F eatu r es include: ● Ad v anced v ehic
Slide 26: Continuous Innovation in Drivetrain Efficiency and ADAS
Continuous Innovation in Drivetrain Efficiency and Advanced Drive - Assistance Systems (ADAS) L aunching first ET - One Prototype 2022 2021 2020 Bat tery V1 Es t ablishing the X - Plat f orm MD L oomis V an on XPlatform V ehicle Co n t r ols Architecture Pa r acel V an on XPlatform Es t ablish X - BMS
Slide 27: Xos Flex Manufacturing
Xos Flex Manufacturing 03 27 Confide n tial and Privileged, P r operty of X os, Inc.
Slide 28: Flex Manufacturing Allows for Rapid Scale and Flexibility
Flex Manufacturing Allows for Rapid Scale and Flexibility BATTERY ASSEMBLY VEHICLE ASSEMBLY Flex Facility 1 located in Byrdstown, TN 28 Confide n tial and Privileged, P r operty of X os, Inc. $45MM CAPEX PER FACILITY 80% CapEx r eduction vs. t r aditional automotive manufacturing facilities. 1 YEAR T
Slide 29: Battery Assembly and Truck Manufacturing
Bat t ery Assembly KEY STATISTICS KEY STATISTICS 6 S t ations X os module lines comprise six (6) disc r e te p rocess s t eps be f o r e p r oceeding t o i n t ernal QC. E ach module line incorpo r a t es multiple automation stations for each step increasing machine OEE and improving overall resilie
Slide 30: Manufacturing Partners
M ANU F A C TURING PARTNERS Manu f acturing Partners STAFFING SUPPLY CHAIN MANUFACTURING ENGINEERING FACILITY AUTOMATION ENGINEERING QUALITY MANAGEMENT ● L eading global manu f actu r er of f r ame and chassis systems for commercial vehicles gene r ating $2B in annual r e v enue ● Contract manufactu
Slide 31: Strategic Growth and Positioning of Flex Facilities
St r a tegic G r o wth and Positioning of Fl e x F acilities Flex2 (Mo n t er r ey) Flex1 (Byrdstown) Pa r cel Body Upfit (Danville) Pa r cel Body Upfit (Loudon) X os HQ ( L os Angele s ) Flex manufacturing facilities are strategically located in proximity to vehicle body upfitters and end - customers.
Slide 32: Financials & Transaction Overview
Financials & Transaction Overview 04 32 Confide n tial and Privileged, P r operty of X os, Inc.
Slide 33: Volume/Revenue Forecast: Growing Product and Geographic Diversification
● Projected to exceed $1B of annualized revenue by Q4 2023 ● International vehicle sales projected to increase to 11.7% of revenue by 2025 ● Fleet - as - a - Service increases to 14.8% of revenue by 2025; recurring and fee - based revenue streams at strong margins ● Drives incremental recurring reve
Slide 34: Projected Path to Profitability
FREE CASH FLOW ($MM) 2 P r ojec t ed Path t o P r ofi t ability GROSS PROFIT ($MM) EBITDA ($MM) 1 ● P r ojec t ed t o achie ve positi v e mo n thly Adj. EBIT D A b y 2023 ● Operational efficiencies will be realized as X os accele r a t es g r o wth in v ehicle deli v eries ● P r ojec t ed t o mai n t a
Slide 35: Use of Transaction Proceeds
Use of Transaction Proceeds Confide n tial and Privileged, P r operty of X os, Inc. 35 $515 Million Net Cash Proceeds Expec t ed Timing $140MM Build out of automated flex battery assembly lines 2021 - 2024 GROWTH $140MM Build out of fl e x v ehicle assembly lines 2021 - 2024 $40MM Scaling business deve
Slide 36: Financial summary projections 2020-2025
Xos is projected to deliver on strong financial fundamentals with the Company generating over $5.2B of revenue in 2025 while turning a positive monthly Adjusted EBITDA by 2023 and Free Cash Flow by 2024. US$ Millions 2020 2021E 2022E 2023E 2024E 2025E T o t al V ehicles Deli v e r ed 17 116 2,007 8,7
Slide 37: Detailed Transaction Overview
PRO FORMA OWNERSHIP @ $10.00 / SHARE Shares % $ N e xtGen Public Sha r eholders 37.5 19.1% $375 N e xtGen F ounder Sha r es 9.4 4.8% 94 PIPE I n v es t or Sha r es 22.0 11.2% 220 Existing X os Sha r eholders 127.6 64.9% 1,276 Total 196.5 100.0% $1,965 Cash Conside r ation t o X os F ounders 20 Estim
Slide 38: Xos Opportunity
UPS / Mo r gan Olson V an Body on X - Plat f orm Confide n tial and Privileged, P r operty of X os, Inc. 38 XOS OPPORTUNITY $100 B 1 T AM f or Comme r cial V ehicles E - commerce growth and regulations driving a new mobility ecosystem. Compelling ESG Opportunity with Strong Revenue Growth Predicted t
Slide 39: Appendix
Appendix 39 Confide n tial and Privileged, P r operty of X os, Inc.
Slide 40: Reconciliation of Non-GAAP Financials
US$ Millions 2020E 2021E 2022E 2023E 2024E 2025E EBITDA GAAP Ope r ating P r ofit ($11.9) ($47.6) ($66.1) $84.3 $471.8 $995.7 S t oc k - based Compensation $0.0 $0.1 $0.3 $6.8 $30.0 $74.2 Depreciation & Amortization $0.3 $7.5 $32.8 $69.8 $115.5 $146.1 EBITDA ($11.6) ($40.1) ($32.9) $160.9 $617.4 $1,2
Slide 41: Illustrative Fully Diluted Share Count
Confide n tial and Privileged, P r operty of X os, Inc. 41 Illustrative Fully Diluted Share Count Sha r es in millions Illust r ati v e Sha r e Price $10.00 $12.50 $15.00 $17.50 $20.00 $22.50 $25.00 Existing X os Sha r es Existing X os E arnout Sha r e s 1 127.6 -- 127.6 -- 127.6 6.6 127.6 6.6 127.6
Slide 42: Risk factors introduction
The list below of risk factors has been prepared solely for purposes of the proposed private placement transaction (the “Private Placement”) as part of the proposed business combination of NextGen Acquisition Corporation (“NextGen”) and Xos, Inc. (the “Business Combination”), and solely for potentia
Slide 43: Risk Factors
RISK F A C T ORS Ris k s R ela t e d t o th e Busines s Combination ● Transaction Costs. Both NextGen and Xos will incur significant transaction costs in connection with the Business Combination. ● Contingencies of Business Combination. The consummation of the Business Combination is subject to a num
Slide 44: Confide n tial and
44 Confide n tial and Privileged, P r operty of X os, Inc.
Slide 45: Confide n tial and
45 Confide n tial and Privileged, P r operty of X os, Inc.
Slide 46: Note: Conceptual Images
Confide n tial and Privileged, P r operty of X os, Inc. 46 No t e: Conceptual Images
Slide 47: Note: Directional Image
47 No t e: Di r ectional Image Confide n tial and Privileged, P r operty of X os, Inc.
Slide 48: Note: Directional Image
48 No t e: Di r ectional Image Confide n tial and Privileged, P r operty of X os, Inc.
Slide 49: Important Legal Information
Confide n tial and Privileged, P r operty of X os, Inc. 49 IMPORTANT LEGAL INFORMATION Additional Information and Where to Find It This document relates to a proposed transaction between Xos, Inc. (“Xos”) and NextGen Acquisition Corporation (“NextGen”). This document is not a proxy statement or solic