Xos, Inc. · NASDAQ:XOS
Xos — SPAC Merger (February 2021)
51 slides from Xos's SPAC merger presentation, Feb 22, 2021
Slide 1: Investor Presentation February 2021: Delivering Intelligent Mobility
2.71 Investor Presentation February 2021 Confidential and Privileged, Property of Xos, Inc. 1 Delivering Intelligent 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 fi
Slide 4: Xos management team
Kingsley Afemikhe - CFO ● Worked in investment banking at UBS and Deutsche Bank, and was subsequently Group Head of Strategy and M&A at MET Group. ● Leads Xos’ financial functions including financial controls, strategy, financing planning and risk management. Rob Ferber - CTO ● A leading EV expert,
Slide 5: The Xos Opportunity
$100B TAM 1 for Commercial Vehicles 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. Proven Vehicles on the Road Commercial vehicle in u
Slide 6: Transaction Overview
● Xos and NextGen expect to enter into a business combination agreement in February 2021. ● Transaction is anticipated to close in the 1 st half of 2021. ● Post - closing company will be a Delaware corporation and retain the Xos name. ● $515mm cash to balance sheet, subject to shareholder redemption
Slide 7: Company Overview
7 Company Overview 01 Confidential and Privileged, Property of Xos, Inc.
Slide 8: Delivering Intelligent Mobility: Mission
Confidential and Privileged, Property of Xos, Inc. 8 Delivering Intelligent Mobility M I S S I O N Decarbonize commercial transportation through purpose - built technology at the intersection of energy and software Confidential and Privileged, Property of Xos, Inc. 8
Slide 9: Xos at a Glance
● Battery - electric mobility provider of purpose - designed and built vehicles and solutions specifically for commercial fleets. ● Focus on medium - and heavy - duty last mile and return - to - base segments. ● Vehicles currently in production and in regular on - road operations with key fleet cust
Slide 10: Experienced Leadership Team
Experienced Leadership Team Dakota Semler Co - Founder, CEO Xos has built a world - class team dedicated to decarbonizing transportation. BUSINESS DEVELOPMENT & OPERATIONS Jose Castañeda VP Business Development Adam Ruddle VP of Chassis Systems Saleh Mirheidari VP of Software Engineering Dag Reckhor
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 ● Travel < 200 miles per shift ● Return to base at night ● Predictable routes Xos Is Focused On The Fast - Growing Last - Mile and Return - to - Base Segments. CLASS 8 LONGHAUL Confidential and Privileged, Property of Xos, Inc. 11 >90%
Slide 12: A New Mobility Ecosystem Is Emerging
A New Mobility Ecosystem Is Emerging ● Trucks in the US 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 US annually . Regulation is intensifying as a result . ● Almost twenty countries have made commitments to phase
Slide 13: Large and Growing Last Mile Market for Electric Vehicles
$100B 1 GLOBAL LAST - MILE MD & HD TRUCK SALES INTERNATIONAL MARKET 66% Large and Growing Last Mile Market for Electric Vehicles Confidential and Privileged, Property of Xos, Inc. 13 Xos focuses on the medium - and heavy - duty last mile commercial segments where the electrification opportunity is s
Slide 14: Xos Already Has Zero-Emission Commercial Vehicles on the Road
Xos Already Has Zero - Emission Commercial Vehicles on the Road OEM CLASS 2 4/5 5/6 6/7 Regional 7/8 Regional 6/7/8 Long Haul 8 2022 2023 Available Now 2021 2021 2021 2023 100 miles Not Published 100 miles 100 - 200 miles 100 - 275 miles 100 - 200 miles 500 - 750 miles LG Chem Panasonic Xos CV Batte
Slide 15: Industry-Leading Unsubsidized Total Cost of Ownership
DIESEL ALT FUEL TOTAL COST OF OWNERSHIP LIFETIME MILES MEDIUM - DUTY (CLASS 5 - 6) Payback Period < 3 years Total Savings $88K Payback Period Total Savings HEAVY - DUTY (CLASS 7 - 8) $28K - $40K NA Payback Period ~1 year Total Savings $230K Payback Period Total Savings $51K - $179K ~1 year $258K $23
Slide 16: Investment in Fleet Validation
VALIDATION DEMONSTRATION FLEET TESTING DURABILITY SCALE PRODUCTION Investment in Fleet Validation Confidential and Privileged, Property of Xos, Inc. 16 Year 1 Year 2 Year 3 Year 4 Engineering DVP&R (6 Months) Field Demo (1 - 2 Months) Fleet Testing (1 - 18 Months) Scale Production Durability (1 - 6
Slide 17: Strong Customer Traction
Strong Customer Traction Xos is working with the world’s largest fleet partners and has deployed vehicles with customers ADDITIONAL TARGET CUSTOMERS CONTRACTED CUSTOMERS 17 6,000+ Unit Backlog and Optional Orders of Xos Vehicles 1 LAST MILE & DSD VOCATIONAL & WORK TRUCK DRAYAGE, LTL, FTL BUSINESS SE
Slide 18: Cornerstone Go-to-Market Agreements in 2021
Accelerating Growth Through Cornerstone Go - to - Market Agreements in 2021 Confidential and Privileged, Property of Xos, 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 p
Slide 19: Innovative Fleet-as-a-Service Business Model
Innovative Fleet - as - a - Service Business Model Traditionally, fleet service offerings are fragmented and challenging for fleet operators with no benefit for EV’s. X - Platform Vehicle Body XoGen Charging Infrastructure Charging Hardware X - Lease Xos Service Tool OTA & Telematics Service & Suppo
Slide 20: Lifetime Revenue per Vehicle
Lifetime Revenue $123,000 Est. Gross Margin 27.0% Lifetime Revenue $179,000 Est. Gross Margin 34.0% 59% of the total revenue generated per vehicle delivery is projected to be driven by products and services outside the vehicle itself. Fleet - as - a - ServiceRevenue (59%) Vehicle Sale Revenue (41%)
Slide 21: Significant International Expansion Opportunity
Significant International Expansion Opportunity 1. FLEX MANUFACTURING STRATEGY Leverages existing local facilities and labor pool for vehicle assembly 2. MODULAR X - PLATFORM Supports customization based on local preference, application and demand 3. GLOBAL PARTNERSHIP NETWORK Existing network of gl
Slide 22: Technology Overview
Confidential and Privileged, Property of Xos, Inc. 22 Technology Overview 02
Slide 23: Modular Medium- and Heavy-Duty EV Platforms
Laser - Focus on Modular Medium - and Heavy - Duty EV Platforms PLATFORM VEHICLE CLASSES X - PLATFORM CHASSIS VEHICLES MD X - PLATFORM Class 5 - 6 Adaptable chassis for on - highway, pickup and delivery. HD X - PLATFORM Class 7 - 8 Adaptable chassis for on - highway, vocational, and severe work cond
Slide 24: Battery Technology Purpose-Built for the Commercial Market
Xos Battery Technology is Purpose - Built for the Commercial Market PURPOSE - BUILT MEDIUM - AND HEAVY - DUTY TRUCKS Significantly larger frame and smaller pack allows for reduced volumetric density Highly predictable routes allow for battery designed for more limited range Reduced weight is key as
Slide 25: Battery Specifically Designed for Commercial Truck Applications
Battery Specifically Designed for Commercial Truck Applications 2170 Cell Xos CMU Xos BCU Xos Module 4 - 10kwh Module size 30 - 60kwh Battery blocks +170wh/kg Gravimetric energy density ● “Cut - to - length” modular architecture based on final vehicle build requirements ● Each pack contains local (i
Slide 26: Continuous Innovation in Drivetrain Efficiency and ADAS
Confidential and Privileged, Property of Xos, Inc. 26 Continuous Innovation in Drivetrain Efficiency and ADAS Launching first ET - One Prototype 2022 2021 2020 Battery V1 Establishing the X - Platform MD Paracel Van on XPlatform Loomis Van on XPlatform Vehicle Controls Architecture Establish X - BMS
Slide 27: Xos Flex Manufacturing
Confidential and Privileged, Property of Xos, Inc. 27 Xos Flex Manufacturing 03
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 $45MM CAPEX PER FACILITY 80% CapEx reduction vs. traditional automotive manufacturing facilities. 1 YEAR TIME TO DEVELOP 2 - 3 years faster to develop Xos Flex Facilit
Slide 29: Flex facilities: battery assembly and truck manufacturing
Xos Flex facilities can be dedicated to key customers to mitigate supply chain risk and ensure on - time deliveries. Battery Assembly KEY STATISTICS KEY STATISTICS 6 Stations Xos module lines comprise six discrete process steps before proceeding to internal QC. Each module line incorporates multiple
Slide 30: Manufacturing Partners
Confidential and Privileged, Property of Xos, Inc. MANUFACTURING PARTNERS Manufacturing Partners STAFFING SUPPLY CHAIN MANUFACTURING ENGINEERING FACILITY AUTOMATION ENGINEERING QUALITY MANAGEMENT ● Leading global manufacturer of frame and chassis systems for commercial vehicles ● $2B in annual reven
Slide 31: Financials & Transaction Overview
Confidential and Privileged, Property of Xos, Inc. 31 Financials & Transaction Overview 04
Slide 32: Volume/Revenue Forecast
International 11.7% ● Projected to exceed $1B of annualized revenue by Q4 2023 ● International Vehicle sales projected to increase to 11.7% of revenue by 2025 ● Fleet - as - a - Service increases to 14.8% of revenue by 2025; recurring and fee based revenue streams at strong margins PRODUCTION VOLUME
Slide 33: Projected Path to Profitability
FREE CASH FLOW ($MM) 2 Projected Path to Profitability GROSS PROFIT ($MM) EBITDA ($MM) 1 ● Projected to achieve positive monthly Adj. EBITDA by 2023 ● Operational efficiencies will be realized as Xos accelerates growth in vehicle deliveries ● Projected to maintain strong gross margins through the pr
Slide 34: Use of Transaction Proceeds
Use of Transaction Proceeds Confidential and Privileged, Property of Xos, Inc. 34 $515 Million Net Cash Proceeds GROWTH TECH & ENGINEERING $140MM $105MM $55MM Build out of automated flex battery assembly lines Build out of flex vehicle assembly lines Engineering and R&D for continued fleet - as - a
Slide 35: Detailed Transaction Overview
TRANSACTION FUNDING PRO FORMA OWNERSHIP @ $10.00 / SHARE ILLUSTRATIVE PRO FORMA VALUATION SOURCES & USES Shares % $ NextGen Public Shareholders 37.5 19.1% $375 NextGen Founder Shares 9.4 4.8% 94 PIPE Investor Shares 22.0 11.2% 220 Existing Xos Shareholders 127.6 64.9% 1,276 Total 196.5 100.0% $1,965
Slide 36: Forecasted Operating Metrics at Premium to Peers
CY24E REV. GROWTH FORECASTED OPERATING METRICS 177% 147% 119% 117% 73% 72% 117% Median 2 30% 26% 20% 18% 18% NA 19% Median 2 1 23% 21% 20% 13% 9% (0%) 13% Median 2 1 1 Confidential and Privileged, Property of Xos, Inc. 36 CY24E GROSS MARGIN CY24E EBITDA MARGIN Source: Company filings, Bloomberg, Cap
Slide 37: Valuation Multiple at Attractive Entry Point
VALUATION METRICS Current CY24E EV / Revenue Confidential and Privileged, Property of Xos, Inc. 37 Valuation Multiple At Attractive Entry Point Median: 3.2x 3 85% Discount to Median 0.5x 4.1x 3.4x 1.1x 1.1x 3.2x (1) 1 $4.1bn $5.0bn $8.5bn $4.0bn $15.3bn $1.45bn Current EV Source: Company filings, Bl
Slide 38: Absolute Enterprise Value at Attractive Entry Point
Confidential and Privileged, Property of Xos, Inc. 38 Absolute Enterprise Value at Attractive Entry Point Median: $ 2.5bn 1 Enterprise Value at Announcement (US$ in Billions) 41% Discount to Median $ 1.45 $ 5.4 $ 3.3 $ 1.5 NA $ 1.6 VALUATION METRICS Source: Investor Presentations. (1) Median exclude
Slide 39: Transaction Priced at a Deep Discount to Peer Multiples
Transaction Priced at a Deep Discount to Peer Multiples ● Implied EV: Apply a range of 1.1x – 4.1x multiples to CY24E Revenue of $2,970mm to arrive at an Implied Enterprise Value Confidential and Privileged, Property of Xos, Inc. 39 0.5x CY24E Revenue 1.1x – 4.1x CY24E Revenue ~745% Premium ~433% Pr
Slide 40: Xos Opportunity
UPS / Morgan Olson Van Body on X - Platform Confidential and Privileged, Property of Xos, Inc. 40 XOS OPPORTUNITY $100B 1 TAM for Commercial Vehicles E - commerce growth and regulations driving a new mobility ecosystem. Compelling ESG Opportunity with Strong Revenue Growth Predicted to save 49 megat
Slide 41: Appendix
Appendix Confidential and Privileged, Property of Xos, Inc. 41
Slide 42: Summary Financial Forecast
Summary Financial Forecast Xos is projected to deliver on strong financial fundamentals with the Company generating over $5.2B of revenue in 2025 while tur ning a positive monthly Adjusted EBITDA by 2023 and Free Cash Flow by 2024. US$ Millions 2020E 2021E 2022E 2023E 2024E 2025E Vehicles Delivered
Slide 43: Reconciliation of Non-GAAP Financials
Reconciliation of Non - GAAP Financials US$ Millions 2020E 2021E 2022E 2023E 2024E 2025E EBITDA GAAP Operating Profit ($11.9) ($47.6) ($66.1) $84.3 $471.8 $995.7 Stock - based Compensation $0.0 $0.1 $0.3 $6.8 $30.0 $74.2 Warrant Issued Expense ($1.0) $0.0 $0.0 $0.0 $0.0 $0.0 Depreciation & Amortizat
Slide 44: 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 45: Risk Factors
RISK FACTORS Risks Related to the Business 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 number of condi
Slide 46: Confidential and Privileged, Property of Xos, Inc. 46
Confidential and Privileged, Property of Xos, Inc. 46
Slide 47: Confidential and Privileged, Property of Xos, Inc. 47
Confidential and Privileged, Property of Xos, Inc. 47
Slide 48: Note: Conceptual Images
Confidential and Privileged, Property of Xos, Inc. 48 Note: Conceptual Images
Slide 49: Note: Directional Image
Confidential and Privileged, Property of Xos, Inc. 49 Note: Directional Image
Slide 50: Note: Directional Image
Confidential and Privileged, Property of Xos, Inc. 50 Note: Directional Image
Slide 51: Confidential and Privileged, Property of Xos, Inc. 51
Confidential and Privileged, Property of Xos, Inc. 51