Workhorse Group, Inc. · NASDAQ:WKHS
Workhorse — Q4 2021 Earnings Presentation
19 slides from Workhorse's earnings presentation, Mar 1, 2022
Slide 1: Q4 and Full Year 2021 Earnings Call
Q4 and Full Year 2021 Earnings Call MARCH 1, 2022 1
Slide 2: Today's Presenters
Today’s Presenters Rick Dauch Bob Ginnan Stan March CEO CFO Vice President, Corporate Development 26 years automotive industry 21 plus years of senior finance and 25 years executive experience experience leadership experience across multiple industrial sectors 14 years serving in CEO roles Refined c
Slide 3: Agenda
Agenda Introduction CEO Update 4th Quarter Financials 2022 Guidance Q&A 3
Slide 4: Disclaimer
Disclaimer Cautionary Note Regarding Forward Looking Statements This presentation includes forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "belie
Slide 5: CEO Update
CEO Update Q4 2021 Priorities Filling the Open Seats “Stabilize & Grow” Process Product Roadmap • C-1000 • W56 • W34 • W750 Aero 5
Slide 6: First 90-Day Recap and Q4 2021 Priorities
First 90-Day Recap (from Q3 2021 Results Call) Q4 2021 Priorities Hire experienced CFO Strengthen technical & Complete C-1000 & select executives commercial capabilities vehicle testing Finalize product Finalize 2022 Develop 2022-24 development roadmaps budget business plans at BUs • Vans • Chassis
Slide 7: Process of Stabilization and Growth
Process of Stabilization and Growth 6 P’s: People, Products, Processes, Partners, Politics, Profits Developing & executing 3-year business plan Value Creation For Profitably Grow ALL Stakeholders Organically, M&A • Associates Competitive Cost Structure, Common LEAN Systems • Investors • Communities
Slide 8: Continuing to Build and Strengthen our Leadership Team
Continuing to Build and Strengthen our Leadership Team All Joined Workhorse in the Last 7 Months POSITION NAME YEARS OF RELEVANT EXPERIENCE CEO Rick Dauch 25 CFO Bob Ginnan 25 CAO/GC Jim Harrington 25 CTO Josh Anderson 15 CHRO Kerry Roraff 11 VP, Supply Chain Jim Peters 25 VP, Product Development Da
Slide 9: Workhorse's Facilities
Workhorse’s Facilities Opened new engineering and technical design center in Wixom, MI on February 21, 2022 Wixom, MI • Hired a number of experienced automotive design engineers with chassis, suspension, drivetrain, energy storage and supply chain management expertise • More than 270 years cumulativ
Slide 10: Commercial Vehicles
Commercial Vehicles We have redefined our electric vehicle product platform strategy in the last 6 months to rapidly address the broadest TAM via a multifaceted approach: • C1000 • W56 • W34 • W750 10
Slide 11: C-1000 Testing Results and Plans
C-1000 Testing Results and Plans FMVSS Compliance E-Powertrain Reliability/Structural Actions Required • Validation testing completed Durability • Address supplier quality issues • Repurchased 41 vehicles • Design improvements required • Front suspension replacement • Implementing corrective actions
Slide 12: Revised Product Roadmap
Revised Product Roadmap Start of Model Weight Class Description Variant Target Market Production W56 Q3 2023 Class 5/6 BEV Steel Rail Strip Chassis Local Delivery/Step Van Ladder Frame Chassis Cab Chassis Box Truck/Reefer W34 2024 Class 3/4 BEV Low Floor Strip Chassis Bus/RV/Custom Body Skateboard C
Slide 13: W750
W750 Sourced EV Chassis with Workhorse Custom Package Body Step Van Design Designed Cab Modifications & Branding • Workhorse custom body • Curbside step and slider • Class 4 rated, 150-mile range • 784 cubic foot capacity • Interior partition wall with slider door • Sold by Workhorse as cab chassis
Slide 14: Aerospace
Aerospace • Expanded technical capabilities and team • Approved by the federal government to pursue commercial FAA Type Certification (Part 21.17) in ‘22-23 • Market segment leading payload and range capabilities in final development and test • Secured contracts with USDA to provide monitoring, data
Slide 15: Financial Summary Highlights: Fourth Quarter
Financial Summary Highlights Fourth Quarter • $2.7 million sales decrease due to customer refunds related to the recall For the Three Months Ended December 31, of our C-1000 vehicles 2021 2020 • Cost of sales includes non-cash Sales, net of returns and allowances $ (1,999,256) $ 651,570 charges of:
Slide 16: Financial Summary Highlights: 2021
Financial Summary Highlights 2021 • $2.2 million decrease in sales due to customer refunds related to the recall For the Years Ended December 31, of our C-1000 vehicles 2021 2020 • Cost of sales includes non-cash Sales, net of returns and allowances $ (851,922) $ 1,392,519 charges of: Cost of sales
Slide 17: Financial Summary: Cash
Financial Summary Cash • $201.6 million in cash and equivalents on hand at December 31, 2021 • Debt (face amount) remains unchanged at $27.5 million • 2022 Capex plans are between $25 and $35 million for facility upgrades in Indiana, Ohio and Michigan • Plan to establish an At-the-Market (“ATM”) equ
Slide 18: Financial Summary: 2022 Guidance
Financial Summary 2022 Guidance Assuming current supply chain stability/visibility: • Our outlook for 2022 reflects our planned progressive ramp in manufacturing, which is backloaded, as we are not expecting to produce any vehicles in the first half of the year • Under the newly developed business p
Slide 19: Summary and Q&A
Summary and Q&A Further strengthened Redefined strategic Expanded engineering Questions the leadership team product roadmap talent/open Wixom office C-1000 FMVSS testing Signed strategic Capital investment completed supplier partnership with plans developed for GreenPower 2022 Redesign/repair plans