Microvast Holdings, Inc. · NASDAQ:MVST

Microvast — Q3 2023 Earnings Presentation

19 slides from Microvast's earnings presentation, Nov 9, 2023

  1. Slide 1: Microvast Q3 2023

    @ @,® microvast © Q3 2023

  2. Slide 2: Disclaimer

    Disclaimer Forward-Looking Statements Non-GAAP Financial Measures This communication contains “forward-looking statements” within the meaning of This presentation contains adjusted gross profit, adjusted operating loss and adjusted net loss, the Private Securities Litigation Reform Act of 1995. Such

  3. Slide 3: Q3 Highlights

    @ @,® microvast © Q3 HIGHLIGHTS

  4. Slide 4: Overview: Steady Growth, Strong Positioning

    Q3 2023 Overview Steady Growth, Strong Positioning Q3 Revenue Q3 Backlog driven by ESS business in the U.S. and 107% increase YoY strong CV demand in EMEA & APAC Adj. GM 53.5Ah Backlog Share +14 percentage points YoY With U.S. and Europe leading markets Exceeding yield targets Construction phase nea

  5. Slide 5: Huzhou Phase 3.1 – Commercialization

    Q3 2023 Huzhou Phase 3.1 – Commercialization Exceeding Targets 2GWh Production Capacity:  Huzhou 3.1 producing at ~70% utilization.  Targeting >90% utilization by YE2023. 53.5Ah Yield:  Currently surpassing ramped production yield targets. Continuing efforts and improvements to push above target.

  6. Slide 6: Huzhou Capacity – Phase 3.2

    Q3 2023 Huzhou Capacity – Phase 3.2 Incremental Investment & Substantial Capacity Increase  Funding in Place:  2024 High Growth Year:  Gross Margin Expansion: ~$35M CAPEX Availability period on Supports expected high growth Immediately accretive as we Investment existing $111M facility in both co

  7. Slide 7: Clarksville Phase 1A

    Q3 2023 Clarksville Phase 1A Status Update Summary SOP: Construction Update: • SOP target of Q1 2024 to allow for an accelerated • Nearing completion of construction phase post-installation ramp-up schedule. • Majority of the building is under joint occupancy • Factory acceptance tests on parts of t

  8. Slide 8: Continued Upward Trajectory – Q3 Revenue

    Q3 2023 Continued Upward Trajectory – Q3 Revenue CHALLENGES Q3 KEY STATS  Customer project delays $80.1M $678.7M Revenue Sales Backlog  High interest rate environment  Visa entry into U.S. for personnel to support our installation and commissioning 107% $67.5M YoY Revenue Growth in Q3 Order Intak

  9. Slide 9: Major Project Developments

    Q3 2023 Major Project Developments Global Commercial Vehicle Market OEM Vehicle Otokar Bus e-Kent LCV platform E-bus E-bus Battery HpCO-53.5Ah HpCO-53.5Ah HpCO-53.5Ah MpCO-21Ah Type Gen 4 pack Gen 4 pack Gen 4 pack Gen 3 pack 100 MWh delivered in Q3 Highlights Prototype order in progress Order for 3

  10. Slide 10: Q4 Major Projects Expected

    Q4 2023 OUTLOOK Q4 Major Projects Expected Growing EMEA Business Across Vehicle Segments Leading EMEA Bus OEM Leading EMEA Truck OEM  Nomination letter signed  Nomination letter received for medium-duty truck  MV-C Gen 4 with HpCO-53.5Ah  MV-I Gen 2 pack with HpCO-53.5Ah  Expected revenue: Up t

  11. Slide 11: Q3 Financials

    @ @,® microvast © Q3 FINANCIALS

  12. Slide 12: Q3 2023 P&L GAAP Income Statement

    Q3 2023 P&L ($ in thousands) Three-Months Ended Sept. 30 Nine-Months Ended Sept. 30 GAAP Income Statement 2022 2023 YoY (%) 2022 2023 YoY (%) Revenue 38,616 80,116 107% 139,698 202,042 45% Cost of revenues (36,623) (62,232) 70% (132,851) (167,839) 26% Gross Profit 1,993 17,884 797% 6,847 34,203 400%

  13. Slide 13: Adjusted Financials – Non-GAAP

    Q3 2023 Adjusted Financials – Non-GAAP ($ in thousands) Three-Months Ended Sept. 30 Nine-Months Ended Sept. 30 Cost of Sales Adjustments 2022 2023 2022 2023 Three-Months Ended Sept. 30 Nine-Months Ended Sept. 30 Revenue 38,616 80,116 139,698 202,042 2022 2023 2022 2023 Adjusted Cost of sales (non-GA

  14. Slide 14: Revenue by Region

    Q3 2023 Revenue by Region ($ in thousands) Q3 9-Months Three-Months Ended Sept. 30 Nine-Months Ended Sept. 30 Revenue by region Revenue by region 2022 2023 YoY % 2022 2023 YoY % APAC (Excluding China) 7,394 24,611 233% APAC (Excluding China) 45,420 46,280 2% China 26,542 36,289 37% China 80,326 115,

  15. Slide 15: Financial Highlights

    Q3 2023 Financial Highlights 24.2% $678.7M $59.9M Adj. Gross Margin Backlog Position Total Capex +14 percentage >84% 53.5Ah >70% to capacity points YoY share expansions Expanded gross margins from Record backlog of $678.7M Expansion CAPEX of $42.5M U.S. manufacturing footprint is increased utilizati

  16. Slide 16: Financial Resilience

    Financial Resilience Debt Maturation Profile  Debt maturity schedule requires minimal cash flow – $5.0M to be repaid in 4Q23 and total to be $50 retired by YE25 is $40.2M. $45  All current debt relates to our Huzhou operations $40 and is non-recourse to our U.S. holding $35 structure and operation

  17. Slide 17: Outlook

    @ @,® microvast © OUTLOOK

  18. Slide 18: Q4 2023 Guidance

    Q4 2023 Guidance 20-25% $90-100M >90% Adj. Gross Margin 47% revenue growth Huzhou 3.1 up >3x YoY YoY at midpoint Utilization Anticipate gross margin Solid revenue growth YoY Backlog going into 2024 Expected initial deliveries of expansion as Huzhou Phase 3.1 although impacted by slight situates us f

  19. Slide 19: 2023 Outlook: Strong Backlog & Technology Supports Multi-Year High Growth

    2023 Outlook Strong Backlog & Technology Supports Multi-Year High Growth Phase 43-48% $292-302M >84% 53.5Ah Backlog Share backlog due to superior FY23 revenue growth YoY FY23 revenue guidance technical performance Clarksville, TN location benefits from IRA at $678.7M Q3 $45/kWh for domestic battery

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