Gores Guggenheim — SPAC Merger (March 2022)
51 slides from Gores Guggenheim's SPAC merger presentation, Mar 7, 2022
Slide 1: Polestar Investor presentation
Exhibit 99.1 March 2022 Polestar Investor presentation
Slide 2: Disclaimer 1 / 2
2 Investor presentation — Disclaimer 1 / 2 This investor presentation (this “Presentation”) is for informational purposes only to assist interested parties in making GGI, the combined company or others following the announcement of the Business Combination and any definitive the Company’s presentati
Slide 3: Disclaimer 2 / 2
3 Investor presentation — Disclaimer 2 / 2 IndustryandMarketData It is acknowledged and understood that Guggenheim Securities, LLC, (“Guggenheim Securities”) which is acting as a information document required by Regulation (EU) No 1286/2014 as it forms part of the domestic law of the UK by virtue In
Slide 4: High tech minimalism redefining luxury for the sustainable age
4 Investor presentation — High tech minimalism redefining luxury for the sustainable age Introduction Video Note: Please click on Introduction Video in order to access the video
Slide 5: Today's speakers and senior leadership
5 Investor presentation — Today’s speakers and senior leadership Polestar Gores Guggenheim Mark Stone Thomas Ingenlath Johan Malmqvist Alec Gores CEO CEO CFO Chairman – Currently CEO of GH VII, GH VIII, GH IX – Previously SVP of Design at Volvo Cars – Previously CFO of Dole Food – 40+ years of exper
Slide 6: The Gores SPAC franchise has a stellar track record
6 Investor presentation — The Gores SPAC franchise has a stellar track record – $39bn of transaction value across nine completed / Proceeds Transaction Transaction Proceeds Proven SPAC delivered announced transactions closed value delivered track record – $6.8bn of new cash delivered across nine com
Slide 7: Business overview
Investor presentation Business overview
Slide 8: Strong heritage, continuous innovation, growth
8 Business overview — Strong heritage Continuous innovation Growth History in performance Go to market Growth and delivery 1996–2015 2015–2020 2020– – Founded as a racing company – Launch of first two models, PS1 and PS2 – Leader in sustainability – Developed and sold performance software to Volvo –
Slide 9: Combining the best of both worlds
9 Business overview — Combining the best of both worlds Credibility & scalability Agility & disruption Established OEM Start-up – Product development – Innovation – Production – Unconventional – Distribution – Less bureaucracy – Technology – Brand personality – Financial strength – Team chemistry Gl
Slide 10: Core competencies
10 Business overview — Core competencies A Design B Sustainability C Innovation – Best-in-class sustainability ambition – Breakthrough technology developments already – Differentiation through avant-garde design, demonstrated by P10 motor, Precept aluminum driving experience and sustainable choices
Slide 11: Diversified premium product portfolio
11 Business overview — Diversified premium product portfolio Polestar 5 Polestar 1 Polestar 2 Polestar 3 Polestar 4 Luxury Sport GT 4 Door Luxury Aero SUV Premium Sport SUV Price ~$155k ~$50-60k Porsche Cayenne Porsche Macan Porsche Panamera Start of Production 2019 2020 2022E 2023E 2024E (SoP) 1 1
Slide 12: Precept manifesto now becoming reality with Polestar 5
12 Business overview — Precept began as a manifesto of Polestar’s future and is now becoming reality with Polestar 5 – Split “Thor’s Hammer” headlights – Rearview window replaced by live camera system, – Proving that sustainable, upcycled materials allowing for increased trunk space and extended can
Slide 13: Investment highlights
Investor presentation Investment highlights
Slide 14: A guiding star in a rapidly growing global electric vehicle industry
14 Investment highlights — A guiding star in a rapidly growing global electric vehicle industry Capitalizing on fastest-growing segments of massive and secular-driven global market opportunity 1 One of two global premium EV players already in mass production setting new standards with our core compe
Slide 15: Premium / luxury EVs are the fastest growing segment of the global car market
15 Investment highlights — 1 Premium / luxury EVs are the fastest growing segment of the global car market Rapidly expanding A huge market opportunity Average global price per model $ 55,000-65,000 Market size in million CAGR 2020-2025E +29% 1 cars × 4.9 Number of cars sold (2025E) ~5 million Global
Slide 16: Polestar addresses the fastest growing segments of the premium / luxury market
16 Investment highlights — 1 Polestar addresses the fastest growing segments of the premium / luxury market Addressing ~80% of the market In the fastest growing categories In the fastest growing geographies 2020-2025E EV CAGR per car type 2020-2025E EV CAGR per region 2025E Total Market Size per seg
Slide 17: Portfolio targets profitable, high-growth segments
17 Investment highlights — 1 Portfolio targets profitable, high-growth segments Launch Product expansion Growth 1 2019 2020 2021E 2022E 2023E 2024E 2025E Model Segment Manufacturing site and SoP 290 Chongqing F coupe Polestar 5 SoP: 2024E premium 225 Hangzhou Bay SUV D Polestar 4 premium SoP: 2023E
Slide 18: The only global EV pure play alongside Tesla
18 Investment highlights — 2 The only global EV pure play alongside Tesla Broader EV and luxury landscape EV share of 35%+ 1 by 2025E EV pure plays Global EV pure plays – With the exception of Volvo and Porsche, incumbent OEMs exhibit a relative low speed of transition despite recent acceleration pl
Slide 19: Cutting edge design coupled with an unrivaled focus on sustainability
19 Investment highlights — 2 Cutting edge design coupled with an unrivaled focus on sustainability Design Sustainability at the core: concrete targets and measures – Differentiation through avant-garde design, experience and sustainable choices – Climate neutral car by 2030E and climate neutral EV m
Slide 20: State-of-the-art EV powertrain development
20 Investment highlights — 2 State-of-the-art EV powertrain development Developing one of the most powerful motors in the world Combined with state-of-the-art battery technology – P10 rear motor with 450kW (~603 horsepower) – Developed 800V battery pack (based on Volvo Cars and Lotus technology) – H
Slide 21: Industry leading performance and technology
21 Investment highlights — 2 Industry leading performance and technology Core in-house competence well defined Smart partnerships propel time to market – R&D facility in Coventry, UK attracting industry-leading sports- – Polestar 3, with SoP in 2022E, will include unsupervised highway pilot performa
Slide 22: Best of both worlds: stability of established players and agility of a start-up
22 Investment highlights — 3 Best of both worlds: stability of established players and agility of a start-up Light and scalable set-up built upon the experience, technology and scale of Volvo Cars and Geely – Product design & validation – Vehicle attributes – Digital offer – Distribution Agility of
Slide 23: Asset light and scalable set-up with state-of-the-art manufacturing facilities
23 Investment highlights — 4 Asset light and scalable set–up with state-of-the-art manufacturing facilities 7 1 2 3 3 4 5 Europe Chengdu Taizhou Chengdu Charleston Hangzhou Bay Chongqing Potential production site Total factory 30,000 (estimated) Low volume production: 180,000 cars Annual car capacit
Slide 24: Polestar aims to be the most capital efficient EV premium / luxury brand globally
24 Investment highlights — 4 Polestar aims to be the most capital efficient EV premium / luxury brand globally Scalable, flexible and operational Independent Board and arm’s length contracts – Flexibility to scale production rapidly with demand, using – Adherence to OECD guidelines for intra-company
Slide 25: Digital first go-to-market model focused on customer experience
25 Investment highlights — 5 Digital first go–to–market model focused on customer experience Explore and schedule Configure and Manage your – Experience starts fully digital and online an experience finance Polestar – Easy to scale without large investments – Less reliance on third parties, increase
Slide 26: Global expansion supported by different retail location formats
26 Investment highlights — 5 Global expansion supported by different permanent and temporary retail location formats Locations Service points Spaces Destinations Automotive area – leveraging the Volvo Permanent or pop up/temporary Polestar Permanent or pop up/temporary Polestar Cars service center n
Slide 27: Unique service offer providing strong competitive advantage
27 Investment highlights — 5 Unique service offer providing strong competitive advantage Customer financing approach Differentiated service model Extensive service network – Fully fledged financing and insurance portfolio – Streamlined product offering – Wide service location network is offered in c
Slide 28: Strong and defined expansion into current and new markets
28 Investment highlights — 5 Strong and defined expansion into current and new markets 2021 2023E Current markets: Expansion to new markets: Markets targeted 30+ Locations 150+ Service points 1,100+ Selected new markets Source: Company information, Management estimates.
Slide 29: High growth model with leading margins
29 Investment highlights — 6 High growth model with leading margins 3 1 3 2025E EBIT , $bn Volume , Thousands Revenue , $bn 17.6 CAGR: +78% 290 CAGR: +89% EBIT Margin: 8% 1.3 29 1.4 2 2021E 2025E 2021E 2025E 2025E – Strong volume growth expected through new model – New model line up in premium / lux
Slide 30: Experienced and visionary management team
30 Investment highlights — 7 Experienced and visionary management team Anna Rudensjö Thomas Ingenlath Dennis Nobelius Johan Malmqvist Nils Mösko Åsa Borg Max Missoni Jörg Brandscheid CEO COO CFO Legal Strategy & Business Brand & Marketing Design R&D Development – Previously Executive Vice President
Slide 31: Financial overview
Investor presentation Financial overview
Slide 32: Diverse new model pipeline driving top-line growth
32 Financial overview — Diverse new model pipeline driving top-line growth – 3 new models in development and targeted to Volume by model, Thousands launch by 2024E 290 – Polestar 2, Polestar 3 and Polestar 4 expected 30 key drivers of volume, from 2023E onwards mainly from launch of latter two model
Slide 33: Financial summary: profitable by 2024E and 8% EBIT margin by 2025E
33 Financial overview — Financial summary: profitable by 2024E and 8% EBIT margin by 2025E 17.6 Revenue, $bn Gross Profit, $bn Gross 0% 12% 20% 19% 21% 13.0 margin 3.7 2.4 6.6 1.3 3.1 1.4 0.4 0.0 1 1 2021E 2022E 2023E 2024E 2025E 2021E 2022E 2023E 2024E 2025E 3 EBIT, $bn Adjusted Unleveraged Free Ca
Slide 34: Capex spend to fund investments required for future model launches
34 Financial overview — Capex spend to fund investments required for future model launches Capex by type, $bn 0.9 – Polestar 3 and SPA 2 platform expected to 0.7 0.7 drive Capex 2021-2022E 0.5 0.5 – Capex need from main carlines of the 0.3 0.4 0.4 business plan expected to tail off towards 0.2 2025E
Slide 35: Transaction overview and valuation
Investor presentation Transaction overview and valuation
Slide 36: Transaction overview
36 Transaction overview and valuation — Transaction overview – Pro forma fully-diluted enterprise value of Sources, $mn Pro Forma Valuation, $mn $20.0bn, or 3.1x 2023E Revenue and 1.5x 2024E Revenue 1 SPAC Cash in Trust $800 Base Share Price at Merger $10.00 – Current Polestar equity holders will re
Slide 37: Differentiated asset-light operations with global coverage and sustainability focus
37 Transaction overview and valuation — Differentiated asset-light operations with global coverage, full product offering and sustainability focus Global EV Chinese EV Chinese EV US EV US EV Player Player 1 Player 2 Player 1 Player 2 Focus on the premium / luxury segment ✓✓✓✓✓û Already in production
Slide 38: Attractive entry valuation with significant discount to peers
38 Transaction overview and valuation — Attractive entry valuation with significant discount to peers Global Players Regional Players TEV / 2023E Revenue 10.0x 9.3x 8.1x 3.1x 2.8x 2.3x TEV / 2024E Revenue 7.7x 4.7x 3.9x 1.8x 1.7x 1.5x Note: Market date as of Feb 28, 2022. Core Peers Chinese EV Peers
Slide 39: Strong top and bottom line growth relative to peers
39 Transaction overview and valuation — Strong top and bottom line growth relative to peers Global Players Regional Players Global Players Regional Players Revenue growth CAGR projection (2023E-2025E) EBIT growth projection (2024E-2025E) 452% 86% 75% 64% 300% 47% 232% 30% 12% 27% NA NA 2024E / 2025E
Slide 40: Appendix
Investor presentation Appendix
Slide 41: Summary financial items
41 Appendix — Summary financial items 1 $mn 2021E 2022E 2023E 2024E 2025E 2 Total volume (number vehicles sold) 29k 65k 124k 225k 290k % growth NA 124% 91% 81% 29% Total revenue 1,370 3,140 6,550 13,020 17,590 % growth NA 128% 109% 99% 35% COGS (1,370) (2,750) (5,240) (10,590) (13,880) Gross profit
Slide 42: Reconciliation of financials
42 Appendix — Reconciliation of financials 1 $mn 2021E 2022E 2023E 2024E 2025E Net income (1,020) (900) (250) 280 1,220 (+) Income Tax 0 0 0 0 0 EBIT (1,010) (850) (150) 400 1,340 (+) Depreciation & Amortization 240 180 310 480 570 EBITDA (770) (670) 160 880 1,910 Free Cash Flow, $mn 2021A 2022E 202
Slide 43: Several trends are underpinning acceleration of EV adoption
43 Appendix — Several trends are underpinning acceleration of EV adoption 1 New entrants represent an 2 EV charging infrastructure 3 Ease of use – Increasing EV charging points density across the globe underpinned by significant investment incentive for further EV charging is on the rise – Europe ta
Slide 44: Design meets sustainability
44 Appendix — Design meets sustainability Polestar 2 Polestar 5 – Production version of Polestar – Using blockchain technology, enabling Precept increased traceability of cobalt in batteries – Explore next steps for more sustainable and innovative – New approach to interior materials materials: – We
Slide 45: Precept design elements offer a preview of future Polestar models
45 Appendix — Precept design elements offer a preview to features on future polestar models Signature Headlights and Revolutionary uses of Rear visibility Long-range SmartZone with ADAS sensors sustainable materials with camera lidar Futuristic design visibly embedding Clean, luxurious interiors wit
Slide 46: At the digital forefront
46 Appendix — At the digital forefront Unique experience Autonomous Mobility Cutting edge. Bespoke. Seamless. Autonomous driving capabilities. Self-driving MaaS. In 3 ways. In Polestar 3 – Developing autonomous driving highway pilot – Privately owned cars capable of highway autonomous – State-of-the
Slide 47: First to launch an infotainment system powered by Google Android
47 Appendix — First to launch an infotainment system powered by Google Android Polestar 2 was the first car to be launched with an infotainment system powered by Google Android – Polestar features fully end-to-end integrated Google Automotive systems, such as Google Maps, Google Speech Assistant and
Slide 48: Robust R&D infrastructure driving innovation
48 Appendix — Robust R&D infrastructure driving innovation – Polestar independently decides what to develop in-house vs. “cherry-picking” from partners – the combination allows Polestar to focus on key differentiating technologies whilst leveraging R&D from the larger Geely Group (Volvo Cars, Geely
Slide 49: Leading base technology
49 Appendix — Leading base technology Advanced battery pack design High-performance motor – State-of-the-art design R&D within – State-of-the-art EV motor, balancing Geely performance and cost – Advanced modular battery pack design – Advanced features within EV motor (e.g., optimizing performance vs
Slide 50: Selected Risk Factors
50 Appendix — Selected Risk Factors all of the countries in which it operates. The Company may faceregulatory challenges to or limitations on its ability to agreements into which it has entered to extend the life of GGI, if GGI is unable to effect an initial business combination The risks presented
Slide 51: Contact info
Investor presentation — Contact info For questions, please contact: All ideas contained within this document are owned by Polestar. Bojana Flint Polestar Investor Relations © Polestar 2022 ir@polestar.com Polestar Assar Gabrielssons Väg 9 SE-418 78 Göteborg Sweden polestar.com