Quantumscape Corporation · NASDAQ:QS
Quantumscape — SPAC Merger (September 2020)
37 slides from Quantumscape's SPAC merger presentation, September 2020
Slide 1: Investor Presentation September 2020
Investor Presentation September 2020 1
Slide 2: Confidentiality, Proprietary Information, and Forward Looking Statements
Confidentiality, Proprietary Information, and Forward Looking Statements This presentation contains proprietary and confidential information of QuantumScape Corporation, and the entire content should be considered “Confidential Information.” This presentation is made solely for informational purpose
Slide 3: Transaction Overview
Transaction Overview Overview • Founded in 2010, QuantumScape Corporation has developed the only lithium-metal solid-state battery with automotive OEM validation • Kensington Capital Acquisition Corporation (NYSE: KCAC.U) is an automotive-related special purpose acquisition company with $230mm cash
Slide 4: QuantumScape: Redefining Batteries
QuantumScape: Redefining Batteries QuantumScape has the Once in a Solid-state batteries are only lithium-metal solid- century shift to the key to making this state battery with electrified vehicles shift automotive OEM validation 4
Slide 5: Visionary Management Team
Visionary Management Team Select Management Team Members Jagdeep Singh Prof. Fritz Prinz Dr. Tim Holme Dr. Mohit Singh Founder / CEO Founder / Chief Scientific Advisor Founder / Chief Technology Officer Chief Development Officer (Chairman) (Board Member) ● Founder / CEO Infinera (NASDAQ: INFN); ● Ch
Slide 6: Backed by Leading Investors
Backed by Leading Investors Select Board Members and Investors Current Board Members Existing Investors $802 Million of Total Funding Commitments¹ John Doerr JB Straubel Bill Gates Vinod Khosla Frank Blome Kensington Capital Acquisition Corp Dipender Saluja Jürgen Leohold • Management and board with
Slide 7: $802mm of Committed Capital, 10 Years of R&D, 200+ Employees
$802mm of Committed Capital¹ Over $300mm spent on development to date 10 Years of R&D Investment Founded in 2010 200+ Employees World Class Next-gen Battery Development Team 200+ Patents² Materials, Use and Process Extensive Trade Secrets Processes and Intellectual Property (1) Pro forma for $388mm
Slide 8: Lithium-Metal: The Next Generation of Battery
Lithium-Metal: The Next Generation of Battery Lithium-Metal Lithium-Ion Nickel Metal Hydride Lead Acid 1970s 1980s 1990s-Today QuantumScape Source: Cano et al (2018). Nature Energy, 3(4), 279–289; Ovshinsky Science 260 (1993) 176; Ding et al, Electrochem. Energ. Rev. 2, 1–28 (2019); Management analy
Slide 9: Massive Untapped Demand If Batteries Meet Mass Market Requirements
Massive Untapped Demand If Batteries Meet Mass Market Requirements 90M+ vehicles produced annually represents in excess of $450B of potential battery sales annually¹ Customer Requirements For Mass Market Adoption Energy / Capacity > 300 mile range Fast Charging Charge in < 15 minutes Cost < $30K, 30
Slide 10: Conventional Lithium-Ion Cell Energy Density Has Hit a Ceiling
Conventional Lithium-Ion Cell Energy Density Has Hit a Ceiling Need for Disruptive Innovation to Dramatically Advance Energy Density Density Requirement: Mass: 400-500 Wh/kg (Volume: 1000 Wh/L) Gap NCA NCA 18650¹ 21700¹ Source: Placke et al. J. Solid State Electrochem., 21(7), 1939–1964; Quinn et al
Slide 11: Conventional Lithium-Ion Batteries Have Reached Their Physical Limit
Conventional Lithium-Ion Batteries Have Reached Their Physical Limit Performance Limited by Graphite (Carbon) / Silicon Anode Chemistry Anode current collector Graphite / Silicon Anode Liquid electrolyte Porous separator Cathode active material Liquid electrolyte Cathode current collector Wound cyli
Slide 12: Lithium-Metal Anode is Required for High Energy Density
Lithium-Metal Anode is Required for High Energy Density The Industry Needs a Fundamental Redesign of Battery Technology 600 Lithium-Metal Anode Required Lithium-Metal Theoretical Cell Energy Density (Wh/kg) Anode 500 Lithium-Metal Batteries • Energy density of 400 conventional anode limited Graphite
Slide 13: QuantumScape Has The Solution
QuantumScape Has The Solution Rethinking the Battery Conventional Liquid Battery QuantumScape Solid-State Battery Anode Current Collector Graphite / Silicon Anode Discharged Charged (as manufactured) Liquid Electrolyte Anode Current Collector Lithium Metal Anode 3 1 Lithium-Metal Porous Separator 2
Slide 14: The Only Battery That Enables Mass Market Transformation
The Only Battery That Enables Mass Market Transformation QuantumScape’s Value Proposition Energy / Capacity: Significantly increases volumetric and gravimetric energy density • Eliminates graphite/silicon anode host material Fast Charging: Enables <15 minute fast charge (0 80%) • Eliminates lith
Slide 15: QuantumScape Technology is Lower Cost
QuantumScape Technology is Lower Cost 17% • Anode material cost • Elimination of anode • Anode manufacturing cost material • Formation & aging related manufacturing • Reduction in manufacturing costs costs – No anode manufacturing – Formation / aging substantially reduced • Excludes system level ben
Slide 16: Significant Technology Advantage
Significant Technology Advantage Protected by ~200 Patents¹ and ~100 Trade Secrets Ceramic Solid-State Separator Single Layer Pouch Cell (1) Includes patents and patent applications. 16
Slide 17: Revolutionary Technology Removes the Tradeoffs
Revolutionary Technology Removes the Tradeoffs Luxury Performance Vehicle: Constant Mass Comparison Mass Market Sedan: Constant Volume Comparison Today’s Today’s Lithium-Ion % Improvement Lithium-Ion % Improvement System 350 L 350 L 81% System 160 L 160 L 88% Volume (260 Wh/L) (470 Wh/L) (Energy Den
Slide 18: Volkswagen has already tested QuantumScape early-stage solid-state battery sample cells
“Volkswagen has already tested QuantumScape early-stage solid-state battery sample cells in Germany running at automotive rates of power.” –Volkswagen Group Press Release 18
Slide 19: Volkswagen Committed to QuantumScape Technology
Volkswagen Committed to QuantumScape Technology Volkswagen Group Overview “Volkswagen has become the largest shareholder of QuantumScape. Our US$100 million investment is a key building block in the Group’s battery • ~11 million vehicles produced in FY2019 strategy. One of the long-term targets is t
Slide 20: QuantumScape is a Step-Function Ahead of Conventional Cells
QuantumScape is a Step-Function Ahead of Conventional Cells Energy-optimized Cell Designs NCA or Ni-rich NMC + Silicon / Carbon Anode NCA3 NMC2 LFP1 Source: Argonne National Laboratory; Management estimates 20 1 Lithium, iron, and phosphate 2 Nickel, manganese, and cobalt 3 Nickel, cobalt, and alumi
Slide 21: Established Manufacturing Processes and Supply Chains
Established Manufacturing Processes and Supply Chains Unique processes use equipment that is Materials have robust and well-established already used at scale in battery or ceramics supply chains served by diversified industries chemical, mining and materials firms Equipment designed and manufactured
Slide 22: QuantumScape Company Timeline and Key Milestones
QuantumScape Company Timeline and Key Milestones In 10 years, QuantumScape Executed on Key Technological and Operational Breakthroughs 2012 2014 2016 2018 2020 Volkswagen (VW) Establishes 80K ft2 facility World-first demonstration of JV forms with VW, confirms Series E VW announces Series F partners
Slide 23: Validated Technology: Next Steps Scaling The Product
Validated Technology: Next Steps Scaling The Product Increasing High-Volume Battery Multi-Layer Cell Separator Yield Manufacturing 23
Slide 24: QuantumScape: Driving Environmental Sustainability
QuantumScape: Driving Environmental Sustainability Key ESG Themes Climate Change Reducing global CO2 emissions Responsible Production Designed around abundant resources Energy Efficiency Enables clean energy sources 24
Slide 25: QuantumScape Unlocks Massive Global Opportunity
QuantumScape Unlocks Massive Global Opportunity 90M+ vehicles produced annually represents in excess of $450B of potential battery sales annually¹ Source: International Organization of Motor Vehicle Manufacturers (OICA); IEA 25 (1) Based on 2019 global vehicle production; includes passenger vehicles
Slide 26: Manufacturing Scale-Up Timeline
Manufacturing Scale-Up Timeline 2021 2022 2023 2024 2025 2026 Development / Validation Product OEM Sample Testing Planning / Engineering 1GWh Factory Site Selection / Design / Construction Equipment Install Production Validation & SOP Planning / Engineering 20GWh Expansion Site Selection / Design /
Slide 27: QuantumScape Factory Economics (QS-1, 20GWh)
QuantumScape Factory Economics (QS-1, 20GWh) ($ in Billions) $ 1.6 $ 1.5 $ 1.5 $ 1.4 $ 1.4 $ 1.4 $ 1.3 $ 1.3 $ 1.3 Capex + Start-up Costs¹: $1.6B SOP — ~70% Cell Factory — ~30% Separator Factory $ 0.4 Equity Need²: ~$500M $(0.1) $(0.1) $(0.0) $(0.2) $(0.2) $(0.2) $(0.2) $(0.6) $(0.6) -4 -3 -2 -1
Slide 28: Summary Financials
Summary Financials $ in millions 2022E 2023E 2024E 2025E 2026E 2027E 2028E Manufacturing capacity Represents ~910k vehicles Total Production Capacity (GWh) 0 0 0.25 0.75 6 46 91 annually (assumes 100KWh pack) QS-1 Pilot (1 GWh) 0 0 0.25 0.75 1 1 1 QS-1 Expansion (20 GWh) 0 0 0 0 5 15 20 Commentary Q
Slide 29: Transaction Overview
Transaction Overview (in millions, except per share data) Sources Pro Forma Valuation KCAC Shares $3,688 Share Price $10.00 KCAC Cash Held in Trust 230 PF Shares Outstanding 447.6 QuantumScape Cash¹ 471 Equity Value $4,476 PIPE Investment 500 (+) Debt 0 Total Sources $4,889 (-) Pro Forma Cash¹ (1,15
Slide 30: Public Peers Benchmarking
Public Peers Benchmarking Operational Benchmarking Valuation Benchmarking Revenue Growth (%) Enterprise Value ($bn) Median: 37% $565.1bn 101% $68.7bn 67% 37% 34% $23.5bn $3.3bn QS Nio Tesla CATL QuantumSpace Tesla CATL Nio '27E-'28E '20E-'22E '20E-'22E '20E-'22E Gross Margin (%) EV / Revenue (x) Med
Slide 31: QuantumScape Has Significant Upside Potential
QuantumScape Has Significant Upside Potential Future Discounted Post- Money Summary of Approach Enterprise Value Enterprise Value Enterprise Value ($mm) • Applies a range of 5.0x – 9.0x EV / Revenue multiple to QuantumScape’s 2028E revenue $57,950 to arrive at an Implied Future Enterprise Value rang
Slide 32: Overview of Kensington Capital Acquisition Corp.
Overview of Kensington Capital Acquisition Corp. Kensington Overview Justin Mirro Chairman & Chief Executive Officer • 25 years of operating, M&A and financing experience in the automotive and automotive-related sector • President of Kensington Capital Partners • NYSE-listed (KCAC.U) Special Purpose
Slide 33: QuantumScape Fulfills Kensington's Investment Objectives
QuantumScape Fulfills Kensington’s Investment Objectives Investment Criteria North America-based automotive business valued at greater than $1.0 billion Leverages high-growth mega-trends of emerging technology proliferation Validated technical, commercial and financial capabilities based upon gl
Slide 34: Appendix
o™ QyantumScape Appendix 34
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet (In Thousands, Except Share and per Share Amounts) Year Ended December 31 2019 2018 Assets Current Assets Cash and Cash Equivalents¹ $22,822 $31,052 Marketable Securities 107,099 148,161 Prepaid Expenses and Other Current Assets 1,255 706 Total Current Assets $131,176 $179
Slide 36: Consolidated Statements of Operations and Comprehensive Loss
Consolidated Statements of Operations and Comprehensive Loss (In Thousands) Year Ended December 31 2019 2018 Operating Expenses Research and Development $45,944 $35,634 General and Administrative 9,874 9,768 Amortization of Intangible Assets – 51 Total Operating Expenses $55,818 $45,453 Loss from Op
Slide 37: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (In Thousands) Year Ended December 31 2019 2018 Operating Activities Net Loss $(51,263) $(44,144) Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities Depreciation and Amortization $5,577 $5,681 Amortization of Right-Of-Uses-Assets 1,159 –