Kandi Technologies Group, Inc. · NASDAQ:KNDI
Kandi Technologies — Investor Presentation (May 2016)
36 slides from Kandi Technologies's investor presentation, May 20, 2016
Slide 1: Kandi Technologies Group Investor Presentation May 2016
7 KANDI TECHNOLOGIES GROUP, INC QD i KANDI Investor Presentation May 2016
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT il KANDI Except for historical information contained herein, the statements made in the presentation of Kandi Technologies Group, Inc. (the “Company’) are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1
Slide 3: Table of Contents
nticwen TABLE OF CONTENTS i KANDI Kandi Introduction Olnnovative MPT Program ONEV Market Condition O Financial Overview OAppendix NASDAQ.GS: KNDI_ | WWW.KANDITECHNOLOGIESGROURCOM | TWITTER : @KANDI_GROUP
Slide 4: Kandi at a Glance
KANDI AT A GLANCE 2 i_ KANDI * Founded in 2002 * NASDAQ GS: KNDI (listed since March 2008) * Stock Price: $6.73* * Market Cap: $321.0M (47,689,638* outstanding shares) * Three-month Average Daily Volume: 511,019 Shares* * Headquarters: Jinhua, Zhejiang Province, China * Three full-scale production f
Slide 5: Business Overview
-Leading pure EV products provider in China. -Committed to alleviating pollution, traffic congestion, parking scarcity and energy crisis. -Innovative MPT (Micro Public Transportation) Program promotes rapid EV adoption. -Launched direct sales program for rapid growth market in China. *Source: China'
Slide 6: Evolving into Pure EV Business
Initiated R&D for pure EV in 2007 Started Quick Battery Exchange (QBEX) in 2009 EVOLVING INTO PURE EV BUSINESS —» Dd» Accelerated Formed Started Announced to Expanded design, 50/50 Joint direct sales _jointly MPT program production & Venture with to individual promote to 16 cities till distribution
Slide 7: EV Models
Overall Size Max. Speed 3971"1745"1496 | Wheel Base 2100 kmin Driving Range NASDAQ.GS: KNDI 2461 mm 490 km Overall Size 3598"1620"1595 Max. Speed Total Weight 400 km/h 1500 kg Wheel Base Driving Range Batiery 2340 mm 460 km a Overall size | 29001845"1590 | Wheel Base | 2080 mm Max. Speed | 100mm Dri
Slide 8: EV Models (Continued)
EV MODELS (CONTINUED) il KANDI Kandi K12 (City Beauty) Sales expected to start in 3Q16 Kandi K13 (City Cowboy) Kandi K30 Model #SMA7002BEV05 NASDAQ.GS: KNDI_ | WWW.KANDITECHNOLOGIESGROURCOM | TWITTER : @KANDI_GROUP
Slide 9: Multiple Production Facilities
LTIPLE PRODUCTIO LITE Changxing Facility* L, y —— PS roneione Jiangsu Rugao” facility, ready for Haikou facility, under construction product sales in 3Q 2016 "Facility of Kandi Electric Vel oup (JV Company) NASDAQGS: KNDI_ | WWW.KANDITECHNOLOGIESGROUP.COM | TWITTER : @KANDI_GROUP
Slide 10: New Production Facility in Hainan
Peel PRODUCTION FACILITY IN HAINAN i KANDI + Designated as an official tourism island by the Chinese government + Momentum towards legislation to ban all non-electric vehicles within the province « Kandi secured an agreement with the Haikou government to build its Hainan facility in Haikou Hi-Tech Z
Slide 11: Joint Venture with Geely Auto
Pel JOINT VENTURE WITH GEELY AUTO —i_ KANDI WD GEELY fi. KANDI Kandi Electric Vehicles Group Co., Ltd. (The JV Company) Established in March 2013 - 50/50 ownership interest Increases production capacity to satisfy market demand Develops, manufactures and sells EVs & related auto parts 24,220 EVs sol
Slide 12: Table of Contents
ninja TABLE OF CONTENTS i KANDI OKandi Introduction WInnovative MPT Program -promoting rapid EV adoption ONEV Market Condition OFinancial Overview OAppendix NASDAQ.GS: KNDI_ | WWW.KANDITECHNOLOGIESGROUPRCOM | TWITTER : @KANDI_GROUP
Slide 13: Market Overview: Four Major Issues
MARKET OVERVIEW: FOUR MAJOR ISSUES iat KANDI * Growing demand for motor vehicles due to rapid economic development and fast-paced urbanization ° Adoption of pure EVs and MPT Program helps alleviate major issues 1. Environmental Contamination 2. Energy Shortage 13 NASDAQ.GS: KNDI | WWW.KANDITECHNOLOG
Slide 14: Three Drivers of Resource Waste
THREE DRIVERS OF RESOURCE WASTE Wasted Parking Resources Wasted parking resources - Parking Time Driving Time Wasted Road Resources )Wasted road resources "Road for norma! ang ones 20% ‘Reed for commuters’ erving Wasted Vehicle Resources Only 1 person in ear 23 persons in car “845 persons in car 14
Slide 15: EV Development Barriers
a EV DEVELOPMENT BARRIERS im KANDI Short Driving Range Long Charging Time Lack of Charging Facilities Battery Maintenance & Pollution NASDAQ. GS: KNDI_ | WWW.KANDITECHNOLOGIESGROUP.COM | TWITTER: @KANDI_GROUP
Slide 16: Overcoming Barriers: MPT Program
mies OVERCOMING BARRIERS i KANDI MPT PROGRAM Micro Public Transportation (MPT) program with trial services initiated in 16 cities in China The key strategy in 2016 is to increase the EV deployment in the existing cities and enhance the business operating scale. The main targeting cities will be Hang
Slide 17: Convenience & Ease of Use
ma CONVENIENCE & EASE OF USE a ua_ KANDI Automated On-Street Parking/Hotel a Gharoinalparkind Lowel Stations Fully computerized * Charging, maintenance, control system battery recycling * Customers not required ° Located at airports, train to enter garage stations, hotels, business * Automatic parki
Slide 18: Table of Contents
mn TABLE OF CONTENTS 2 i_ KANDI OKandi Introduction Olnnovative MPT Program WNEV Market Condition O) Financial Overview OAppendix NASDAQGS: KNDI_ | WWW.KANDITECHNOLOGIESGROUPR.COM | TWITTER: @KANDI_GROUP
Slide 19: Sizeable Purchase Incentives
a SIZEABLE PURCHASE INCENTIVES i KANDI Corr EV manufacturers adi Government Subsidies benefit Subsidy compensated in advance eoncunere as prices paid reflect Local Applied by the deduction of both Government distributor/EV operator on subsidies Subsidy behalf of consumers NASDAQ.GS: KNDI_ | WWW.KAND
Slide 20: Central Government Subsidy
, CENTRAL GOVERNMENT SUBSIDY a ua_ KANDI Central Government Allowance Policy PR#hHEHE For New Energy Vehicle #rfEWn2 Year 2013-2020 cny Afii 000 2013-2015 (80=<R<150) 8 ends |e 2016-2020 Pure EV |(100=<R<150) gi we ao Le Le HSB co -cacaso 50] 47.8 45 45 36 36 27 27 >=250 60 87 54 55 44 44 33 33 ldyb
Slide 21: Local Government Subsidy
. LOCAL GOVERNMENT SUBSIDY i KANDI City Main Contents Beijing 4:4 based on central government subsidy at the total amount not exceeding 60% of the market price Shanghai Pure EV 30K/Unit; Hybrid EV 10K/unit Shenyang 0.7~0.9:1 based on central government subsidy but the total amount not exceeding 60%
Slide 22: Other Benefits for NEVs
OTHER BENEFITS FOR NEVS i KANDI 1. Exemption for the vehicles purchase taxes (about 10% of the vehicles selling price excluding Value-added tax). 1. Many cities, such as Beijing , Tianjin, Hangzhou, are exempting EVs from purchase quota, rush-hour restrictions keeping vehicles off the road for one d
Slide 23: Ten Thousand NEV Growth Till 2020
23 120 100 80 60 40 Ten Thousand NEV Growth Till 2020 2015 2020 According to the plan <China Manufacturing 2025>, China NEV will reach 5% above of the total annual automobiles sales in 2020 and around 20% in 2025 NASDAQ GS: KNDI WWW, KANDITECHNOLOGIESGROUPRCOM | TWITTER: @KANDI_GROUP
Slide 24: Important Policies in China
IMPORTANT POLICES IN CHINA i KANDI 1. Increase the charging facilities: New residential area needs to maintain 100% charging facilities and 10% for the existing public building and public parking places. 2. While government departments purchasing automobiles, NEVs purchase should reach 50%. 3. Tax e
Slide 25: Table of Contents
a TABLE OF CONTENTS _i_ KANDI OKandi Introduction Olnnovative MPT Program OINEV Market Condition Financial Overview OAppendix NASDAQ GS: KNDI_ | WWW,KANDITECHNOLOGIESGROUP.COM | TWITTER: @KANDI_GROUP.
Slide 26: Revenue (USD in Millions)
REVENUE (USD IN MILLIONS iat KANDI 350.0 300.0 250.0 200.0 ; 150.0 100.0 50.0 00 300.0 201.1 170.2 94.5 64.5 2012 2013 2014 2015 2016E 102015 102016 102015 102016 {EV parts) (EV parts) NASDAQGS: KNDI | WWW,.KANDITECHNOLOGIESGROUP.COM | TWITTER: @KANDI_GROUP
Slide 27: Net Income
NET INCOME 27 16.0 140 120 10.0 a0 60 40 20 00 "Non-GAAP net income excludes stock option expense and the valuation change for warrants, there was $6.3 2015. wry 1 1 ' 123 ! ! 1 i) 1 1 1 1 ! ! as 1 1 Rom 1 ! Y 1 64 1 52 1 1 1 ' 1 1 ! ! 1 1 I i) I o1 | 2012 2013 2014 2018" 102018 102016. «1a2015 + 10
Slide 28: JV Business Growth
JV BUSINESS GROWTH Sales EV Products (in Units) 40,000 461 35,000 35,000 30,000 25,000 (250.0 20,000 215.5 200.0 15,000 150.0 10,935 10,000 100.0 50.0 ee 0.0 = 2014 2015 2016 F 2014 2015, 2016 F = NASDAQGS: KNDI | WWW,.KANDITECHNOLOGIESGROUP.COM | TWITTER: @KANDI_GROUP
Slide 29: EV Sales Breakdown
EV SALES BREAKDOWN —i_ KANDI 29 EV sales by segment mMPT ®Direct Sales EV sales by model K17 #K10 @K11 #K12&K30 1,945) 2015 MPT 1,670 je 3,803 643 3,000 3,004 6,474 5,626 14,947 9,273 NASDAQ.GS: KNDI 2015 ee | 1,670 4,446 2015 1945 = 11,801 10,472 2 6,004 2016E ~20,000 ~15,000 12,100 24,220 | WWW.KA
Slide 30: Five-Year Financial Highlights
30 FIVE-YEAR FINANCIAL HIGHLIGHTS Fiscal Year Ended Dec 31 USD in millions (excluding per share) 2011 2012 Revenues 40.18 6451 9454 17023 201.07 Gross Profit 9.21 1289 21.74 23.40 Ea Operating Income (Loss) 3.04 5.34 1.56 5.24 (3.95)" Net Income on 605 21.14 12.27 (er) Adj. Net Income 4.00 417 5.16
Slide 31: Kandi Value Proposition
KANDI VALUE PROPOSITION 34 Direct Exposure to rapidly growing EV mat JV Partnership with Geely Auto enhances 1 eve 2 quality and large scale EV products Innovative MPT Program accelerates wide-spre Kandi’s EV products Expanding Municipal Infrastructure in EV facilities increases ease-of-use of Kandi
Slide 32: 2016 Milestones
a 2016 MILESTONES 2 i_ KANDI 2016 Outlook: deliver 35,000 or more EVs 2016 net revenues between $270-$300 million Rugao facility starts production; Hainan facility | under construction Expand MPT Program into additional cities Sales and production of : new EV models a2 NASDAQ GS: KNDI | WWW,KANDITEC
Slide 33: Thank you
_—-41 ae Thank you Company Contact: Independent Accountant: Kewa Luo, Head of Public Relations, VP BDO China 212-551-3610 IR@kandigroup.com Legal Counsel: Pryor Cashman LLP Follow us on Twitter: ii New York, NY 33 NASDAQ.GS: KNDI_ | WWW.KANDITECHNOLOGIESGROURCOM | TWITTER: @KANDI_GROUP.
Slide 34: Table of Contents: Appendix
ma TABLE OF CONTENTS a ua_ KANDI OKandi Introduction Olnnovative MPT Program ONEV Market Condition O) Financial Overview WAppendix NASDAQ.GS: KNDI_ | WWW.KANDITECHNOLOGIESGROUPCOM | TWITTER: @KANDI_GROUP
Slide 35: Organizational Structure
_— ORGANIZATIONAL STRUCTURE —i_ KANDI Kandi Technologies Group, Inc. (KND!) | 10% Continental Development Limited (BV!) Zhejiang Kandi Vehicles Co,. Ltd. I Jinhua Kandi New Energy Kandi Electric Vehicles 0% Group (the “JV” Yongkang Scrou Electric Company) Zhetiang Zuschongyou - Kandi Electric ce "Be
Slide 36: Management Team
MANAGEMENT TEAM ig KANDI Hu Xiaoming - Chairman, Chief Executive Officer & President Chief Executive Officer, President and Chairman of the Board since March 2002; Project Manager (Chief Scientist) in WX Pure Electric Vehicle Development, a state-level high-priority technology developmental plan fro
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