Chargepoint Holdings, Inc. · NYSE:CHPT
Chargepoint — SPAC Merger (September 2020)
49 slides from Chargepoint's SPAC merger presentation, Sep 24, 2020
Slide 1: Driving the Electrification of Mobility
© 2020 ChargePoint, Inc. Driving the Electrification of Mobility
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer FORWARD - LOOKING STATEMENTS All statements other than statements of historical facts contained in this presentation (this “Presentation”) are forward - looking statements. Forward - looking statements may generally be identified by the use of words such as “believe,” “may,” “will,” “esti
Slide 3: Important Information for Investors and Shareholders
3 compiled or performed any procedures with respect to the projections for the purpose of their inclusion in this Presentation, and accordingly, neither of them expressed an opinion or provided any other form of assurance with respect thereto for the purpose of this Presentation. IMPORTANT INFORMATI
Slide 4: Transaction Summary
© 2020 ChargePoint, Inc. Transaction Summary 4 Summary of Proposed Transaction + Founded in 2007, ChargePoint has built one of the world’s leading electric vehicle (EV) charging networks – Delivers a fully integrated EV charging solution, with a comprehensive portfolio of hardware, software and serv
Slide 5: Meet the New Fueling Network
© 2020 ChargePoint, Inc. Meet the New Fueling Network Site Host: Fortune 10 Workplace
Slide 6: Vision and Investment Opportunity
© 2020 ChargePoint, Inc. 6 Passenger Fleet …and more. Move All People and Goods on Electric Power The Index for the Electrification of Mobility VISION INVESTMENT OPPORTUNITY
Slide 7: Executive Summary
© 2020 ChargePoint, Inc. The Trend The electrification of mobility is undisputed, with consumers and fleets adopting at record rates The Market Our addressable market is massive… every place vehicles park, in North America and Europe The Product We sell charging software, stations and services. S of
Slide 8: Investment Highlights
© 2020 ChargePoint, Inc. Investment Highlights 8 Winning Business Model + As EV penetration grows, we grow. Monetization not tied to energy or utilization. + Vertically integrated, complete portfolio of networked solutions + Platform technologies provide major advantages in fleet applications Strong
Slide 9: Fueling Fundamentals: At Home, At Work and Around Town
© 2020 ChargePoint, Inc. At Home, At Work and Around Town 9 PREFERENCE Large Battery EVs LOCATION Where Drivers Live, Work and Play PARADIGM Mostly Top Up While Parked MONETIZATION Businesses ( Site Hosts) in Control (set price/free) Market Model Moats Growth CHARGEPOINT REVENUE POTENTIAL OF ELECTRI
Slide 10: Major Markets Committed to Electrification
© 2020 ChargePoint, Inc. Major Markets Committed to Electrification 10 Automotive Energy Oil & Gas Technology TNCs Essential Charging Platform Partner Fleet Systems Market Model Moats Growth
Slide 11: ChargePoint Growth Directly Proportional to EV Penetration
© 2020 ChargePoint, Inc. ChargePoint Growth Directly Proportional to EV Penetration 11 Source: Historical EV sales from InsideEVs and Baum. Future EV sales projections from BNEF. Additional Tailwinds + Fossil fuel bans + Transit electrification dates + Incentive programs + All major auto OEM brands
Slide 12: Positioned to Continue to Scale
© 2020 ChargePoint, Inc. Positioned to Continue to Scale 12 2007 – 2012 1.9K Ports (116K EVs) Commercial - Workplace - Retail & Hospitality 36K Ports (1.2M EVs) Commercial - Workplace - Retail & Hospitality - Commercial Properties - Education - Fueling & Convenience Fleet - Sales Service & Motorpool
Slide 13: Charging Is Essential
© 2020 ChargePoint, Inc. Charging Is Essential Businesses and fleets are investing in charging solutions ChargePoint Capital Is Focused on Winning Free of monetizing energy or drivers, our capital is focused on + Research & Development: Complete solutions, all use cases; investment keeps us steps ah
Slide 14: We Sell Hardware, Recurring Software and Services
© 2020 ChargePoint, Inc. We Sell Hardware, Recurring Software and Services 14 Commercial Products Assure ™ Annual Subscription (Parts & Labor Warranty) Charging Stations Software as a Service (SaaS) Annual Subscriptions ChargePoint as a Service ™ (Bundles SaaS, Charging Stations and Assure Subscript
Slide 15: Site Hosts Buy to Reach Business Goals
© 2020 ChargePoint, Inc. Site Hosts Buy to Reach Business Goals 15 Commercial Fleet Residential Workplace & Commercial Properties | Education | Fueling & Convenience Healthcare | Hospitality & Retail | Parking Single Family | Multi Family Delivery & Logistics | Sales Service & Motorpool Shared Mobil
Slide 16: One Portfolio Serves Many Geos and Segments
© 2020 ChargePoint, Inc. Commercial Business Fleet Business Residential Business One Portfolio Serves Many Geos and Segments North America + Proven model, de facto leader + Expected gross margin in the 40s North America and Europe + Largest contributor to growth + Stabilization of new products expec
Slide 17: Our Winning Formula
© 2020 ChargePoint, Inc. Our Winning Formula = 17 + Recurring SaaS model, 100% attach to hardware + Revenue recognized ratably during contract periods + Minimums with annual renewal + Upfront payment for initial purchase + High land - and - expand pattern consistent with electric vehicle penetration
Slide 18: Complete Hardware Portfolio Powered by Software
© 2020 ChargePoint, Inc. Complete Hardware Portfolio Powered by Software 18 Market Model Moats Growth Software Enables + Control of who can use stations and when + All vehicles to get charged on time + Multiple vehicles to share power + Drivers to get in line when ports are occupied + Proactive and
Slide 19: Already Integrated to the Ecosystem
© 2020 ChargePoint, Inc. Already Integrated to the Ecosystem 19 Market Model Moats Growth Automotive Platforms Consumer Platforms Fleet Platforms “Alexa, ask ChargePoint if my car is plugged in.” Roaming Integrations with Other Charging Networks
Slide 20: Select Customers Participating in the New Fueling Network
© 2020 ChargePoint, Inc. Select Customers Participating in the New Fueling Network 20 Workplace & Commercial Properties Commercial Thousands of Brands Choose ChargePoint Fleet Residential Education Fueling & Convenience Healthcare Hospitality & Retail Parking Delivery & Logistics Multi Family Sales
Slide 21: One Network, Many Branding Opportunities
© 2020 ChargePoint, Inc. One Network , Many Branding Opportunities 21
Slide 22: Proven Account Expansion
© 2020 ChargePoint, Inc. Source: Management Data. Cumulative spend expansion rates calculated by dividing cumulative billings (FY2017 – FY2020) by FY2017 billings. 5.7X Cumulative Spend $1,548 $1,779 $2,276 $3,149 FY2017 FY2018 FY2019 FY2020 $234 $1,252 $1,579 $3,429 FY2017 FY2018 FY2019 FY2020 $33
Slide 23: Revenue Ratio: Illustrative Unit Economics
© 2020 ChargePoint, Inc. Revenue Ratio 23 Market Model Moats Growth ~1:1 Upfront and Recurring Revenue Illustrative Unit Economics: CT4000 Dual - Port Station with Software and Assure Recurring Upfront Source: Management data. Actual station lifetime can vary. 13% 36% 51%
Slide 24: Winning North America, Expanding in Europe
© 2020 ChargePoint, Inc. Winning North America, Expanding in Europe 24 #1 Brand in North America, A Blueprint for Growth + De facto North America leadership in all - purpose AC charging – Operating across all verticals – Integrated into where people live, work, play + Operating in 16 European market
Slide 25: Unparalleled Leadership Team
© 2020 ChargePoint, Inc. Unparalleled Leadership Team + Seasoned leadership team with years of tech and category skills + 750+ employees including 40% technical staff + Diversified talent base with operations in US, NL, UK, DE, MX, CN 25 Pasquale Romano Christopher Burghardt Europe Lawrence Lee Oper
Slide 26: Financial Models
© 2020 ChargePoint, Inc. Financial Models Site Host: Port of Stockton, With Yard Tractor Shown
Slide 27: Scaling With EV Penetration
© 2020 ChargePoint, Inc. Scaling With EV Penetration 27 COVID - 19 Impact ChargePoint Revenue ChargePoint Ports Shipped (Annual) COVID - 19 Impact Notes + Port counts include Multi Family home charging (part of Commercial business) ports but exclude single family home charging po rts + ChargePoint F
Slide 28: Revenue Diversity
© 2020 ChargePoint, Inc. 28 Revenue Diversity By Vertical By Type By Geography NA Commercial EU Commercial Global Fleet & Other Networked Charging Stations Subscriptions & Support Other Services North America Europe Note: ChargePoint FY runs 2/1 - 1/31. CY reflected for simplicity; financials do not
Slide 29: Gross Margin Improves as Product Releases Stabilize
© 2020 ChargePoint, Inc. Gross Margin Improves as Product Releases Stabilize and Software Revenue Grows 29 Notes + Historical numbers are based on GAAP. Forecast does not include stock - based compensation. + ChargePoint FY runs 2/1 - 1/31. CY reflected for simplicity; financials do not reflect CY a
Slide 30: Substantial OpEx Leverage
© 2020 ChargePoint, Inc. 30 Substantial OpEx Leverage Acceleration Operating Expenses $140 Notes + *Temporary COVID cost reductions include salary cuts and bonus elimination. + Historical numbers are based on GAAP. Forecast does not include stock - based compensation. + ChargePoint FY runs 2/1 - 1/3
Slide 31: Long-term Financial Summary
© 2020 ChargePoint, Inc. Fiscal Year FY21 FY22 FY23 FY24 FY25 FY26 FY27 Approximate Calendar Year 2020 2021 2022 2023 2024 2025 2026 Revenue $135 $198 $346 $602 $984 $1,427 $2,069 YoY Growth 46% 75% 74% 63% 45% 45% Gross Profit $33 $62 $124 $225 $400 $591 $878 Gross Margin % 24% 31% 36% 37% 41% 41%
Slide 32: Transaction Summary
© 2020 ChargePoint, Inc. 32 Transaction Summary Site Host: Dealership, Fast Charging in Europe
Slide 33: Detailed Transaction Overview
© 2020 ChargePoint, Inc. Detailed Transaction Overview 33 $2.4B Enterprise Value | $225M PIPE Transaction Highlights (1) Equity value to ChargePoint’s existing shareholders is calculated as 245 . 0 million Switchback shares, using a $ 10 . 00 pro forma share price, on a fully diluted basis (excludin
Slide 34: Public Comparable Universe
© 2020 ChargePoint, Inc. 34 Public Comparable Universe Software Powered Solutions Energy Technology EV Ecosystem + Pure - play EV exposure + CapEx heavy business model + ESG - friendly category + Attracts premium valuation + Ecosystem player with defensible moats + Recurring revenue streams provide
Slide 35: Discounted Future Enterprise Value
© 2020 ChargePoint, Inc. $ 8,276 $ 4,115 $ 2,400 $ 18,622 $ 9,258 4.0x - 9.0x 2026E Revenue Discounted 5 Periods at 15% Enterprise Value ~460 % Midpoint Premium ~180 % Midpoint Premium 35 Discounted Future Enterprise Value Transaction Expected to Fully Fund to EBITDA Positive Post - Money Discounted
Slide 36: Operational Benchmarking
© 2020 ChargePoint, Inc. 41 % 42 % 21 % 43 % 66 % 38 % 33 % 2025E 2026E Tesla Peloton Alarm.com Enphase SolarEdge Median: 38 % 12 % 16 % 17 % 8 % 20 % 26 % 21 % 2025E 2026E Tesla Peloton Alarm.com Enphase SolarEdge Median: 20 % 45 % 45 % 39 % 54 % 8 % 51 % 23 % 2025E 2026E Tesla Peloton Alarm.com En
Slide 37: Valuation Benchmarking
© 2020 ChargePoint, Inc. 1.7 x 1.2 x 11.8 x 6.1 x 4.5 x 8.1 x 5.3 x 2025E 2026E Tesla Peloton Alarm.com Enphase SolarEdge Median: 6.1 x 0.05 x 0.04 x 0.42 x 0.17 x 0.60 x 0.24 x 0.28 x 2024-25E 2025-26E Tesla Peloton Alarm.com Enphase SolarEdge Median: 0.28 x 13.5 x 7.1 x 69.6 x NM 23.0 x 31.3 x 24.
Slide 38: Switchback Investment Thesis Criteria
© 2020 ChargePoint, Inc. Switchback Investment Thesis Criteria 38 Objective as energy specialists with deep industry expertise to partner with a leading disruptive technology company, to fuel the company’s growth strategy and offer attractive risk - adjusted returns High Growth Dominant Market Share
Slide 39: Early Market, Large Market Leading Share
© 2020 ChargePoint, Inc. Early Market, Large Market Leading Share Attractive Model, Recurring Revenue, Margin Expansion Continued Capital - light Growth Ahead 39
Slide 40: Thank You
© 2020 ChargePoint, Inc. Thank You For further information, please contact 40 Rex Jackson CFO re x.jackson@chargepoint.com Scott McNeill Director CEO & CFO smcneill@switchback - energy.com
Slide 41: Appendix
© 2020 ChargePoint, Inc. Appendix 41
Slide 42: Unaudited GAAP Income Statement
© 2020 ChargePoint, Inc. Unaudited GAAP Income Statement ($ in thousands) 42 Year Ended January 31, 2020 Revenues 147,007$ Cost of Revenue 127,696 Gross Profit 19,311 Operating expenses Research and development 69,301 Sales and marketing 56,862 General and administrative 25,411 Total operating expen
Slide 43: Unaudited GAAP Balance Sheet
© 2020 ChargePoint, Inc. Unaudited GAAP Balance Sheet ($ in thousands) 43 As of January 31, 2020 Assets Current assets: Cash and cash equivalents 120,190$ Accounts receivable, net 40,443 Inventory 22,619 Prepaid expenses and other current assets 6,902 Total current assets 190,154 Property and equipm
Slide 44: Unaudited GAAP Cash Flow Statement
© 2020 ChargePoint, Inc. Unaudited GAAP Cash Flow Statement ($ in thousands) 44 Year Ended January 31, 2020 Cash flows from operating activities Net loss (133,309)$ Adjustments to reconcile net loss to net cash 14,571 Changes in operating assets and liabilities 30,828 Net cash used in operating acti
Slide 45: Valuation Benchmarking: Recent EV Ecosystem SPACs
© 2020 ChargePoint, Inc. 13.5 x 7.1 x 45.6 x 28.9 x 26.5 x 12.7 x 11.9 x 7.2 x 1.9 x 2025E 2026E Nikola Luminar Velodyne Hyliion Canoo Lordstown Fisker Median: 12.7 x 1.7 x 1.2 x 8.7 x 5.8 x 3.6 x 3.0 x 1.6 x 0.8 x 0.4 x 2025E 2026E Luminar Velodyne Hyliion Nikola Canoo Lordstown Fisker Median: 3.0
Slide 46: ESG: ChargePoint for Good
© 2020 ChargePoint, Inc. ESG: ChargePoint for Good + 2.4B Electric Miles Enabled to Date − 81M charges; drivers plug in every 2.0 seconds − Avoidance of 98M gallons of gas − Avoidance of 312M kgs of CO 2 emissions − Avoidance of 329M kgs of GHG emissions + Selected Awards − 2019: Acterra Award for E
Slide 47: Software Powers Scale
© 2020 ChargePoint, Inc. Software Powers Scale 47 How Do Site Hosts… + Control who can use stations and when? + Ensure all vehicles get charged on time? + Allow multiple vehicles to share power? + Let drivers get in line when all ports are taken? + Track how much energy they’ve dispensed? + Diagnose
Slide 48: Case Study: Workplace Charging Sustainability
© 2020 ChargePoint, Inc. + Need : Address company’s carbon emissions associated with employee commutes + Solution : 223 networked ports, automated sustainability reporting – Non - constrained parking powered by waitlist and idle time pricing features – Constrained parking powered by cord sharing, va
Slide 49: Case Study: County Fleet Electrification
© 2020 ChargePoint, Inc. + Need : Fuel and manage electric county fleet vehicles and measure progress toward published climate goals + Solution : 126 networked ports with Power Management and automated sustainability reporting – Software tools to manage charging needs across fleet drivers, county em