NewHold Investment Corp IV · NASDAQ:NHIV
NewHold Investment Corp IV — Evolv Technologies — SPAC Merger (March 2021)
41 slides from NewHold Investment Corp IV's SPAC merger presentation, March 2021
Slide 1: Investor Presentation
Investor Presentation March 2021 The Human Security Company
Slide 2: Disclaimer
Disclaimer About this Presentation This presentation is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination (the “proposed business combination”) between Evolv Technologies, Inc. (
Slide 3: Disclaimer (Cont.)
Disclaimer (Cont.) Forward Looking Statements This document contains certain forward-looking statements within the meaning of the federal securities laws with respect to the proposed transaction between NewHold Investment Corp. (“NewHold”) and Evolv Technologies, Inc. (“Evolv”). These forward-lookin
Slide 4: Executive Summary
EXECUTIVE SUMMARY
Slide 5: The Leader in Touchless Security Screening
The Leader in Touchless Security Screening Security as a Service $20B TAM → $100B TAM 1 2 Disruptive AI based Security Company BREAKTHROUGH TECHNOLOGY CREATES BARRIERS TO ENTRY SUBSCRIPTION BASED SAAS BUSINESS MODEL STRATEGIC PARTNERS ACCELERATE GROWTH ICONIC CUSTOMER BASE STRONG ROI FOR CUSTOMERS 1
Slide 6: Transaction Summary
Transaction Summary • Disruptive AI-based security company The Business • 50M+ people screened by Evolv Systems • 400+ units deployed • NewHold Investment Corp. (NASDAQ:NHIC) is a special Offering purpose acquisition company with $172.5M of cash in trust • PIPE size of $300M • Pro Forma enterprise v
Slide 7: Evolv – Unique Investment Opportunity
Evolv – Unique Investment Opportunity Revolutionary AI software technology platform positions Evolv to 1 Disruptive AI Software Technology disrupt the current analog physical security industry Potential accelerated customer adoption and add-on capabilities of 2 Global $20B TAM software platform enab
Slide 8: Transforming the Threat Detection & Security Markets
Transforming the Threat Detection & Security Markets Evolv’s market leading, disruptive technology can screen 10X more people than legacy providers without sacrificing safety Any Given Sunday … … Evolv Solution 8
Slide 9: Touchless Security Screening
Touchless Security Screening Key Differentiators ✓ 10X faster than metal detectors ✓ Screens 3,600 visitors per hour ✓ Automatically differentiates weapons from personal items ✓ Detects concealed items on people and in bags ✓ AI / Machine Learning algorithm ✓ Highly effective security system = techn
Slide 10: Evolv Customers — Iconic Global Brands
Evolv Customers — Iconic Global Brands American Museum of Natural History 10
Slide 11: Significant Global Market Opportunity — $20B TAM
Significant Global Market Opportunity — $20B TAM WAREHOUSE, DISTRIBUTION PERFORMING ARTS & TOURIST & CULTURAL SPORTS GOVERNMENT & MANUFACTURING ENTERTAINMENT INSTITUTIONS 116K sites 10K sites 5K sites 1K sites 26K sites HOSPITALITY & CASINOS HOSPITALS HOUSES OF WORSHIP EDUCATION OFFICE BUILDINGS 40K
Slide 12: Highly Accomplished Management Team
Highly Accomplished Management Team Peter George Mike Ellenbogen Anil Chitkara Peter Faubert ✓ Proven leaders in Chief Executive Officer Founder & Chief Founder & Head of Chief Financial Officer Innovation Officer Corporate Development disrupting both 25+ years in Cybersecurity, 20+ years in High Te
Slide 13: Why Evolv?
WHY EVOLV?
Slide 14: Why Evolv?
Why Evolv? Unique disruptive technology that transforms the security experience Unmatched • Automatically differentiates weapons from personal items concealed on people and in their bags Security • Targeted threat location improves guard performance and overall security effectiveness Superior Visito
Slide 15: Agile AI-Based Screening System
Agile AI-Based Screening System Automatically Differentiates Weapons Expands to Screen Multiple Threats Including from Personal Items Elevated Body Temperature Learns Over Time Delivers Analytics & Intelligence to the Venue 15
Slide 16: Unparalleled Technology Advantage
Unparalleled Technology Advantage IP Portfolio: Proprietary Know-How: ✓ Multi-frequency transmission and ✓ Over 50 individual sensors in each Evolv Express® system ✓ Unique RF operating frequencies to analysis discriminate weapons from personal items ✓ Proprietary sensor design ✓ Creates active scan
Slide 17: Cortex AI Software is Revolutionizing Physical Security
Cortex AI Software is Revolutionizing Physical Security Evolv Cortex AI™ SENSOR DATA AI THREAT INTELLIGENCE APPLICATION NETWORK ENGINE CLASSIFIER CLOUD LAYER 1,000s of sensor-based Data instantly aggregated, ML-based algorithm trained to Remote storage, access and Web, Mobile, Reporting inputs from
Slide 18: Compelling Value Proposition for the Customer
Compelling Value Proposition for the Customer We estimate up to 70% lower cost Superior Customer ROI: to run the security operation than existing solutions, increasing security and improving customer experience $0.38 Cost per scan Evolv Solution Legacy Solution Legacy Solution 10 Machines 60 Guards
Slide 19: Growth Strategy
GROWTH STRATEGY
Slide 20: Rapid Customer Growth in City and Across Verticals
Rapid Customer Growth in City and Across Verticals Establish NYC presence, then expand into vertical segments in additional cities NEW YORK CUSTOMERS EXPANSION: VERTICAL CUSTOMERS Entertainment Strong Geographic Footprint Expanded Across Verticals Throughout U.S. ✓ Started in NYC with Lincoln Center
Slide 21: Expanding the Market
Expanding the Market LAND TARGET VERTICAL Acquire Anchor Customer CITY STRATEGY TEMPLATIZE CURRENT SUCCESSES IN MAJOREXPAND ACROSS CITIES – NYC, ATLANTA,CITIES AND DC Templatize Current Successes in Major Cities 50+ TARGETED– NYC, Atlanta & DC CITIES 50+ TARGETED CITIES CHANNEL ACTIVATION Use Direct
Slide 22: Global Opportunity Accelerated Through Partnerships
Evolv’s Global Opportunity is Accelerated Through Partnerships Regional Channel Partners: Secureflight LTD Target Market Global Strategic Partners: 22
Slide 23: Global Strategic OEM Partnership
Global Strategic OEM Partnership Motorola Solutions Branded Premium Products Powered by Evolv ✓ Integrated into Motorola Solutions product portfolio to provide an industry first comprehensive end to end security and communications solution ✓ Thousands of global customers ✓ Key sectors served by Moto
Slide 24: Initial Land & Expand: ~$175M ARR with a $7B+ TAM
Initial Land & Expand: ~$175M ARR with a $7B+ TAM Growth driven by additions & expansions from marquee customer accounts END MARKET REPRESENTATIVE & TARGET CUSTOMERS END MARKET REPRESENTATIVE & TARGET CUSTOMERS Tourist Sites Industrial Workplaces Performing Arts & Entertainment Municipal Government
Slide 25: Line of Sight on $1B in ARR with Existing Product
Line of Sight on $1B in ARR with Existing Evolv Express® Product Long-Term Expand Existing Vertical Market and Geographic >$500M Locations and Enter New Markets through incremental Direct Sales and Channel Partners potential ARR Mid-Term Expand into Adjacent Vertical ~$300M Markets and Land in incre
Slide 26: Future Direction: The Digital Threshold Vision
Future Direction: The Digital Threshold Vision APPROACH THRESHOLD INTERIOR Visitor approaches the venue … Visitor enters the venue … Visitor experiences the venue… License Plate Weapons Screen Recognition Retail Optimization Health Screen People Flow Exit Routing & Entry Routing Analytics Promotion
Slide 27: Acquisitions to Drive Expansion and Growth
Acquisitions to Drive Expansion and Growth Significant opportunities to extend digital Biometrics & Demographics Smart Ticketing / threshold through acquisitions and partnerships Credential Threat Verification Intelligence STRATEGIC GROWTH DRIVERS: ✓ Acquire high value components to extend the Digit
Slide 28: Data Driven Solution Provides Significant Market Opportunity
Data Driven Solution Provides Significant Market Opportunity PROLIFERATE GLOBALLY: ROI-Driven Touchless Screening 1 ✓ Accelerate adoption in verticals and globally $20B $12B $27B ✓ Secure high volume buying groups ✓ Build out cloud management platform Threat Video Smart Screening Analytics Ticketing
Slide 29: Financial and Transaction Overview
FINANCIAL AND TRANSACTION OVERVIEW
Slide 30: Compelling SaaS Business Model
Compelling SaaS Business Model Security-as-a-Service (SaaS) Pricing Innovating Security Industry Pricing options: straight monthly subscription or hardware purchase plus software subscription Business Model Unique Attributes: ✓ First Security-as-a-Service model in the industry $2k —$3k PER MONTH PER
Slide 31: Scalable Platform with Expanding Gross Margins
Scalable Platform with Expanding Gross Margins Bookings by Type $1,065.7 Revenue by Type $595.0 (US$ in Millions) (US$ in Millions) Products $1,051.3 Services Subscription $708.7 $337.9 Products Total Bookings $689.2 Subscription $399.0 $132.3 $194.6 $390.6 $53.1 $12.9 $21.7 $53.3 $20.2 $5.8 $4.3 $1
Slide 32: Transaction Summary
Transaction Summary Illustrative Sources & Uses Illustrative Pro Forma Valuation (US$ in millions) (US$ in millions, except per share data) Sources Uses At Close Equity Issued to Existing Evolv Shareholders $1,250.0 Equity Issued to Existing Evolv Shareholders $1,250.0 Illustrative NewHold Stock Pri
Slide 33: Comparable Public Company Universe
Comparable Public Company Universe SECURITY TECHNOLOGY & ANALYTICS DISRUPTIVE SPAC CATEGORY LEADERS Innovative public safety and security software SECURITY-AS-A-SERVICE Disruptive SPAC category leaders expected and data analytics companies to transform legacy industries Moderate growth going forward
Slide 34: Select Peers Operational Benchmarking
Select Peers Operational Benchmarking Security Traditional Technology Detection & Analytics Disruptive SPACs Equipment Revenue 700.0% CAGR 461.0% 155.9% (21E-23E) 137.5% 118.4% 105.9% 74.4% 64.7% 9.9% 5.7% 21-23E 21-23E 21-23E 21-23E 21-23E 21-23E 21-23E 21-23E 21-23E 21-23E 71.1% Gross 63.1% Margin
Slide 35: Select Peers Valuation Benchmarking
Select Peers Valuation Benchmarking Security Traditional Technology Detection Assumes an & Analytics Disruptive SPACs Equipment Enterprise Value 21.5x of $1.3B EV / Revenue 11.0x 10.7x 8.8x 7.2x 6.8x 7.3x 3.9x 4.6x 4.7x 4.5x 3.9x 2.2x 2.4x 2.2x 1.7x 1.3x NA 24E 25E 21E 24E 25E 24E 25E 24E 25E 24E 25
Slide 36: Illustrative Valuation Methodology
Illustrative Valuation Methodology FUTURE ENTERPRISE VALUE IMPLIED CURRENT IMPLIED CURRENT Security Technology & Analytics ENTERPRISE VALUE ENTERPRISE VALUE Security Technology & Analytics Disruptive SPACs $7.1B Initial pro forma valuation will be at a ~80% Evolv Discount to Midpoint substantial dis
Slide 37: Evolv Technology — The Human Security Company
Evolv Technology — “The Human Security Company” Disruptive AI Software Technology Global $20B TAM Diverse & Growing Customer Base High ROI for Customer Unique & Compelling Business Model Land & Expand City Strategy World Class Management Team 37
Slide 38: Appendix
APPENDIX
Slide 39: Financial Projections Summary
Financial Projections Summary (US$ in millions, except unit data) 2019A 2020A 2021E 2022E 2023E 2024E 2025E Units Subscription 66 206 429 1,547 3,098 5,266 7,636 Product 98 3 66 171 319 478 861 Bookings Subscription $6.1 $21.3 $47.3 $178.2 $367.0 $658.3 $970.5 Products 6.8 0.4 6.0 16.4 32.0 50.4 95.
Slide 40: Risk Factors
Risk Factors Risks Related to Evolv Technology’s Business and Industry • We are a rapidly growing company with a history of losses. We have not been profitable historically and may not achieve or maintain profitability in the future. • Our operating results may fluctuate for a variety of reasons, in
Slide 41: Risk Factors (Cont.)
Risk Factors (Cont.) Risks Related to Evolv Technology’s Business and Industry (Cont.) • If we do not effectively expand, train and retain qualified sales and marketing personnel, we may be unable to acquire new customers or sell additional products to successfully pursue our growth strategy. • If w