Lightning Emotors, Inc. · OTC:ZEVY
Lightning Emotors — Investor Day (June 2021)
46 slides from Lightning Emotors's investor day presentation, Jun 17, 2021
Slide 1: Analyst Day June 2021
Exhibit 99.1 Analyst Day June 2021 1Exhibit 99.1 Analyst Day June 2021 1
Slide 2: Safe Harbor
Safe Harbor This presentation (this “Presentation”) contains “forward-looking statements” within the meaning of U.S. federal securities laws. Such forward-looking statements include, but are not limited to, statements regarding the expectations, hopes, beliefs, intentions, plans, prospects, financia
Slide 3: Safe Harbor (Cont'd)
Safe Harbor (Cont’d) The financial information and data contained in this Presentation are unaudited and do not conform to Regulation S-X. Accordingly, such information and data may not be included in, may be adjusted in or may be presented differently in, documents to filed by Lightning eMotors wit
Slide 4: Today's Presenters
Today’s Presenters Tim Reeser Bill Kelley Teresa Covington Kash Sethi Founder and Chief Executive Officer Chief Technology Officer Chief Financial Officer Chief Revenue Officer n 15 years of biz dev, technical sales, n 25 years of Technology CEO n 35 years of automotive n 25 years C-Level finance sa
Slide 5: Agenda
Agenda 1 Executive Summary 2 Go to Market 3 Technology Overview 4 Manufacturing Overview 5 Financial Summary 6 Q&A 5Agenda 1 Executive Summary 2 Go to Market 3 Technology Overview 4 Manufacturing Overview 5 Financial Summary 6 Q&A 5
Slide 6: Executive Overview
Executive Overview Tim Reeser, CEO and Co-Founder 6Executive Overview Tim Reeser, CEO and Co-Founder 6
Slide 7: Modular & Focus on Urban Commercial ZEV
Modular & Focus on Urban Blue Chip (1) $67B TAM Proprietary Customer Base Commercial ZEV Purpose-Built Electric Vehicles Architecture We are a B2B Company Scalable Software and Only Full-Range Manufacturer Across Multiple End Markets Hardware Architecture Class 3 – 7 BEV & FCEV Strategic 485k Addres
Slide 8: Large Untapped Market Opportunity with a Market Leading Market Share
2 Large Untapped Market Opportunity with a Market Leading Market Share “EVs excel at short-haul travel. (1) That means they’re great options for personal cars and even medium-duty vehicles.” – Bill Gates Light-Duty Medium-Duty Heavy-Duty Vans, pickups Vocational trucks, shuttle buses Tractor trailer
Slide 9: Competing Manufacturer Battery Electric Vehicle Plans
Competing Manufacturer Battery Electric Vehicle Plans (U.S. announced) US Annual Market Size (new units) Class 1-2 Cargo & Work 150K+ ✔✔✔✔ × × × × × × × × × Class 1-2 Shuttle 15k × × × × × × × × × × × × × Class 4 Class 4 Class 4 Class 3-5 Cargo & Work 50k ✔ × × × × × × × × × only only only Class 4 C
Slide 10: What We Do
What We Do We provide complete electrification solutions for urban commercial fleets Charging-as-a- Service (CaaS) COMMERCIAL ZEVs ANALYTICS CHARGING FINANCING n Complete charging solutions n Most fleet customers finance n Manufacture complete n Actionable fleet intelligence including permitting, in
Slide 11: Optimized Modular Design Addresses Diversified Opportunities
Optimized Modular Design Addresses Diversified Opportunities § Common Commercial Vehicle Electrification necessitates and benefits from high levels of customization § Software-enabled platform and integration capabilities translate to significant time-to- market advantage Note: Pictures represent se
Slide 12: We Primarily Build New, Purpose-Built Electric Vehicles
We Primarily Build New, Purpose-Built Electric Vehicles 2021E 2020 Repower OEM Powertrains Repower 4% 10% 10% New Purpose-Built New Purpose-Built Electric Commercial Electric Commercial Vehicles Vehicles 80% 96% New, Purpose-Built vehicles dominate our offerings, but OEM and Repower business is grow
Slide 13: Market Leading Position
Market Leading Position Lightning eMotors enjoys over 50% market share in electric vehicles across Classes 3 – 7, (1) based on trucks shipped in the US in 2020 and Q1 2021 (2) Class 3 – 7 Commercial Vehicles Shipped in 2020 Selected Current Fleet Customers Lightning eMotors shipped more than 3x the
Slide 14: Robust Contracts Provide Financial Visibility and External Validation
Robust Contracts Provide Financial Visibility and External Validation Total Addressable Fleet Strong Pipeline with Current Customers of 487,000 Vehicles Today 20,000 § These 11 customers are currently operating our vehicles State of California 100,000 § $130M+ REPEAT orders since Q3 2020 § And more
Slide 15: Highly Experienced Management Team
Highly Experienced Management Team Bill Kelley Tim Reeser Ken Craig Teresa Covington Brandon Kash Sethi Brian Barron Founder and CEO CTO and COO VP Finance & McNeil CFO Chief Revenue Officer VP, Global Controller VP, Lightning Manufacturing 35+ years 25+ years 25+ years Energy 15+ years 25+ years 25
Slide 16: Medium Volume/High Customization
Medium Volume/High Customization § Commercial EVs benefit from customizations that aren't possible with ICE vehicles § Commercial EVs require higher level of customization than their ICE counterparts § Lightning's segments – large total TAM, but segments are too small for major OEMs and most startup
Slide 17: Technology Overview
Technology Overview Bill Kelley, Chief Technology Officer 17Technology Overview Bill Kelley, Chief Technology Officer 17
Slide 18: Our Technology Competitive Strengths – Software
Our Technology Competitive Strengths – Software Best-in-class efficiency, range, charging, reliability and analytics Chassis Integration Software Analytics / Telematics Powertrain Control Software and Hardware Software and Hardware § Highly optimized, robust, § Specific software for every § Propriet
Slide 19: Our Technology Competitive Strengths
Our Technology Competitive Strengths Best-in-class efficiency, range, charging, reliability and analytics IP + Trade Secrets Analytics + Algorithms Service Network Operations + Supply Chain § Proprietary HD transmission§ Continuously collecting § Established infrastructure § Low-capital assembly mea
Slide 20: Growing Intellectual Property Portfolio
Growing Intellectual Property Portfolio Lightning eMotors Mobile Charger Invention Patent Status 2 6 1 Smart Electronic Power Steering System Pending 7 Mobile Charging Station with Battery Storage Pending 2 8 Electric Vehicle Torque-Limiting Method and Provisional on File 3 Lightning eMotors Commerc
Slide 21: Supply Chain and Technology Partners
Supply Chain and Technology Partners Battery Drivetrain Repower Fuel Cell EV 21Supply Chain and Technology Partners Battery Drivetrain Repower Fuel Cell EV 21
Slide 22: California Air Resource Board (CARB) Certified
California Air Resource Board (CARB) Certified Model year 2021 CARB Executive Orders (EO) § Lightning Electric T-350 Transit Cargo Van § Lightning Electric T-350 Passenger Van § Lightning Electric E-450 Shuttle § Lightning Electric F-550 Shuttle Aftermarket Exemption EOs § Gillig Transit Bus § Van H
Slide 23: Highly Scalable Analytics Solution Drives Customer Retention
Highly Scalable Analytics Solution Drives Customer Retention Our proprietary analytics drive 25% greater efficiency Class 3 Vehicles on CARB Dyno Metrics and real-time fleet performance compared to competitors Competitors st 1 Year Pricing $995 1.4 mi / kWh 1.8 mi / kWh nd 2 Year+ Pricing $445 Machi
Slide 24: Manufacturing/Production Overview
Manufacturing/Production Overview Bill Kelley and Tim Reeser 24Manufacturing/Production Overview Bill Kelley and Tim Reeser 24
Slide 25: Already In Production with Projected Scaling of Capacity to 3,000 Units
Already In Production with Projected Scaling of Capacity to 3,000 Units Manufacture • Vertical integration Powertrains & • Highly specialized Powertrain • Modular design Components Assemble • Standard high demand vehicles Vehicles • Specialty vocation/applications • Quality control throughout Test •
Slide 26: Lightning eMotors Vertical Integration – Class 3
Lightning eMotors Vertical Integration – Class 3 Power Sled Power DC Fast Charge Distribution Module (88 kW) (located on chassis) Powersled Framework Wiring Harnesses + Software Thermal Management Hoses & Brackets Class 3 BEV Power Sled Assembly Lightning eMotors Built Content (Ford T350 DRW Chassis
Slide 27: Lightning eMotors Vertical Integration – Class 4
Lightning eMotors Vertical Integration – Class 4 Power Sled DC Fast Charge Power Module (88 kW) Distribution Powersled Framework Wiring Harnesses + Software Thermal Management Hoses & Brackets Class 4 BEV Power Sled Assembly (Ford E450 Chassis) (GM G-Van Chassis) Lightning eMotors Built Content 27Li
Slide 28: Specialized Automation to support medium-volume, high customization
Specialized Automation to support medium-volume, high customization § Medium-duty vehicle manufacturing has historically been non-automated § Lightning already has some automation in place § Asset-light automation being added in 2021/2022 to reduce costs and increase scalability − Robotic welding −
Slide 29: What We Buy Rather than Manufacture Today Results in Light-CAPx Model
What We Buy Rather than Manufacture Today Results in Light-CAPx Model § Chassis – Ford, GM, Hino, Isuzu – To be announced § Bodies – Made to customer specs by over 10 specialized partners – Paint – Interiors § Custom upfit equipment – Lifts – Shelving – Wheelchair lifts – RV equipment 29What We Buy
Slide 30: Leveraging established network of US commercial vehicle manufacturing partners
Leveraging established network of US commercial vehicle manufacturing partners – making it easier to scale! Lightning eMotors HQ: R&D center, component manufacturing, vehicle assembly ✔Chassis Partners ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔Battery Partners ✔ ✔ ✔ ✔ ✔ ✔ ✔Vehicle Body Partners 30Leveraging established netw
Slide 31: Go to Market
Go to Market Kash Sethi Chief Revenue Officer 31Go to Market Kash Sethi Chief Revenue Officer 31
Slide 32: Regulation, Corporate Targets and Grants driving EV adoption
Regulation, Corporate Targets and Grants driving EV adoption § California ACT Regulation: Minimum ZEV requirements starting in 2024 ramping to 100% by 2045 Regulation & § 15 state MoU representing 50% of US economy and 40% goods movement: 30% zero emission sales by 2030 ramping up to 100% by 2050 Ma
Slide 33: Total Cost of Ownership Example
Total Cost of Ownership Example Total Monthly Cost Monthly Fuel + Maintenance Cost E-450 Shuttle Bus (4,500 miles / month) $2,925 Lightning eMotors LEASE Example Gasoline $675 With Grants No Grants Fuel and Maintenance 2,925 563 563 Cost per Month Vehicle Lease (7 year) 1,056 1,811 2,384 80% Charger
Slide 34: Go to Market Strategy – Customized by market vertical
Go to Market Strategy – Customized by market vertical Market Strategy Delivery Trucks & Direct engagement with national and regional fleets – parcel delivery, regional goods movement, linen and uniform rental fleets, bakeries, grocery and meal-kit delivery etc. Vans Direct engagement with fleets – t
Slide 35: Competitive Landscape – we are uniquely positioned
Competitive Landscape – we are uniquely positioned US Annual Market Size (new units) Class 1-2 Cargo & Work 150K+ ✔✔✔✔ × × × × × × × × × Class 1-2 Shuttle 15k × × × × × × × × × × × × × Class 4 Class 4 Class 4 Class 3-5 Cargo & Work 50k ✔ × × × × × × × × × only only only Class 4 Class 4 Class 3-5 Shu
Slide 36: Proven Sales Model – Real Fleet Customers & Repeat Orders
Proven Sales Model – Real Fleet Customers & Repeat Orders Sales cycle between 3 and 24 months Field Trial B2B Engagement Technical TCO Initial Contract Repeat Orders with Fleets Validation Validation and Purchase Orders U.S Parking Service Global eCommerce U.S. Real Estate U.S. Cable U.S. Fleet Euro
Slide 37: Strong Pipeline Growth
Strong Pipeline Growth Sales Pipeline Growth in # of Deals/Projects Sales Pipeline Growth in $ $1,200,000,000 250 $1,000,000,000 200 $800,000,000 150 $600,000,000 100 $400,000,000 50 $200,000,000 0 $- Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 to date Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 to da
Slide 38: Charging Infrastructure Solutions
Charging Infrastructure Solutions One major hurdle to fleetwide electrification is determining what charging will be needed and how to get the needed infrastructure designed, procured and deployed – it can be a challenging and time-consuming process. Lightning Energy provides fleet customers with co
Slide 39: Customer Service & Field Support
Customer Service & Field Support National network of direct, 24/7 Network Operations Center and Training programs for fleets who independent, and OEM partner service advanced telematics want to do their own maintenance networks Commercial fleets demand (and reward) strong field support & customer se
Slide 40: Financial Summary
Financial Summary Teresa Covington Chief Financial Officer 40Financial Summary Teresa Covington Chief Financial Officer 40
Slide 41: FY21 Q1 Results and Full Year Guidance
FY21 Q1 Results (Pre-Merger Private Company) and Full Year Guidance Full Year 2021 ($’s in millions) Q1 Actuals Guidance Revenue $4.6 $50 to $60 • 140+ zero-emission Class 3 - 7 vehicles on the 1 Gross Margin % road -16% -2% to -4% • Quarter ending backlog $169 million -$5.3 GAAP Operating Loss -$45
Slide 42: Manufacturing at Scale and Focused Investments Driving Gross Margin Expansion
Manufacturing at Scale and Focused Investments Driving Gross Margin Expansion Direct Materials Overhead § Battery costs § Absorption per unit § Modular design § Focused capital § Supply chain investments maturation Direct Labor Other Costs § Automation § Product Maturation § Learning curve § Quality
Slide 43: Business Combination Cash Will be Used to Scale the Business
Business Combination Cash Will be Used to Scale the Business § $217M Net Proceeds post the business combination. § Projecting sufficient cash to fund operations through 2022. Manufacturing Capacity – Vehicles § Uses of Cash and Powertrains − Working capital 2020 Actual 2021 Estimate 2022 Estimate −
Slide 44: Appendix
C LIGHTNING MOTORS atransPORD, Appendix : = ea
Slide 45: GAAP Operating Loss to Adjusted Operating Loss Reconciliation
GAAP Operating Loss to Adjusted Operating Loss Reconciliation ($’s in millions) Q1 2020 Q1 2021 FY2021 Guidance GAAP Operating Loss -$2.6 -$5.3 -$45 to -$49 1 1 1 $0.0 $0.0 $1.0 to $2.0 Stock-Based Compensation $0.0 $0.0 $9.0 to $10.0 Merger Combination Deal Costs Adjusted Operating Loss -$2.6 -$5.3
Slide 46: Thank You
A 44 LIGHTNING eMOTORS “ WOLOB® Thank You