Electriq Power Holdings Inc. · OTC:ELIQQ
Electriq Power — SPAC Merger (November 2022)
42 slides from Electriq Power's SPAC merger presentation, Nov 14, 2022
Slide 1: Electriq Power Investor Presentation
ELECTRIQ POWER Investor Presentation November 14, 2022 T | L | G TLG Acquisition One Corp
Slide 2: Confidentiality and Disclaimer
Confidentiality and Disclaimer This presentation (together with oral statements made in connection herewith, the “Presentation”) is intended to provide confidential summary information about the business of Electriq Power, Inc. (“we,” “us,” “our,” “Electriq” or the “Company”) with respect to the pro
Slide 3: Confidentiality and Disclaimer (Cont'd)
Confidentiality and Disclaimer (Cont’d) Use of Projections This Presentation contains projected financial information with respect to the Company. Such projected financial information constitutes forward-looking information, is for illustrative purposes only and should not be relied upon as being pr
Slide 4: Confidentiality and Disclaimer (Cont'd)
Confidentiality and Disclaimer (Cont’d) This Presentation is not a substitute for the registration statement or for any other document that the SPAC may file with the SEC in connection with the Potential Business Combination. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE DOCUMENTS FILED WITH
Slide 5: TLG Acquisition One Corp. Overview
TLG Acquisition One Corp. Overview $400mm publicly listed SPAC led by a team of public company operators and domain experts committed to an active partnership with merger partner to drive long-term value Company Overview Ticker: NYSE: TLGA $400mm IPO: 40 million units issued in IPO; 40 million share
Slide 6: Table of Contents
Table of Contents 1. Introduction: Michael Lawrie and Frank Magnotti 2. Addressable Market & Strategy: Frank Magnotti 3. Differentiated Solution: Jim Van Hoof 4. Financials and Valuation: Jim Van Hoof 5. Summary: Michael Lawrie 6
Slide 7: Presenters
Presenters Frank Magnotti CEO, Electriq Founded Comverge, a pioneer of virtual power plant and virtual peaking capacity contracts with utilities and ISO’s 6 GW of demand response to ~5mm homes General manager of utility solutions at AT&T and program manager at Bell Labs Jim Van Hoof COO, Electriq Jo
Slide 8: 1. Introduction
ELECTRIQ POWER 1. Introduction
Slide 9: Electriq Company Overview
Electriq Company Overview Electriq Power (“Electriq”, or the “Company”) is a provider of intelligent energy storage and management solutions for the residential and small business markets. The company combines hardware and software integrated energy storage into one offering that provides reliabilit
Slide 10: Where Electriq Fits in the Energy Ecosystem
Where Electriq Fits in the Energy Ecosystem CLOUD Data CLOUD ELECTRIQ POWER Data CLOUD CLOUD CLOUD Power Generating Assets / Grid Data is shared with utilities to offload power and remove stress from the grid Utilizes OpenADR solutions to communicate with installed products Electriq Grid Services (V
Slide 11: Company Track Record and Impact
Company Track Record and Impact Select Customers City of Parlier CUC You’ve got the power 2015 - 2019 Beta EP system is deployed IQ ESS launches Accepted into Powerhouse Accelerator Frank Magnotti steps in as CEO PowerPod 1 launches Greensoil Investment infuses series seed capital 2020 Electriq anno
Slide 12: 2. Addressable Market & Strategy
ELECTRIQ POWER 2. Addressable Market & Strategy
Slide 13: U.S. Residential Solar / Battery Storage Market & Electriq Market Share
U.S. Residential Solar / Battery Storage Market & Electriq Market Share Residential solar installs are growing rapidly in the U.S., with annual installed capacity forecasted to grow at ~15% which implies a more than 40%(1) CAGR from 2023-2025 for Electriq’s market share U.S. Residential Solar Instal
Slide 14: Regulatory Support of Energy Storage
Regulatory Support of Energy Storage Strong and growing federal and state support for solar and storage industry, buoyed by recent Inflation Reduction Act legislation Federal Support(1) At the federal level, President Biden signed into law the Inflation Reduction Act on August 16, 2022, which includ
Slide 15: Go-to-Market Strategy
Go-to-Market Strategy Electriq has developed three go-to-market strategies to capture its large addressable market Customer Overview White Label / Distributors Strategic partners with established B2C distribution channels for residential energy solutions Energy storage complementary to existing offe
Slide 16: White Label Case Study
White Label Case Study Overview Major white label partner is a leading provider of residential energy solutions including backup generators, with a global presence Electriq executed a long-term white label agreement with white label third party in March 2021 to deliver residential battery units Unde
Slide 17: Microgrid Case Studies
Microgrid Case Studies ~$30mm of revenue expected through 2023(1) Customer Overview Agreement Engagement Model and Volumes Access tab Minority-owned business developing real estate and solar projects across the Washington, DC area Memorandum of Understanding signed in Apr. 2022 for solar and battery
Slide 18: Sustainable Communities Network Case Study: City of Parlier
Sustainable Communities Network Case Study: City of Parlier City of Parlier Electriq’s goal is to create partnerships with municipalities to provide sustainable and resilient solar microgrids to historically under-resourced communities Designed for Success Across the Program Municipality Wins Offers
Slide 19: Sustainable Communities Network: Major Opportunity in California
Sustainable Communities Network: Major Opportunity in California Addressable Market of over $6.0 billion(1) Totals Addressable Market: 3,036k Anticipated Home Signup: 5.0% Anticipated Home Signup #: 151,803 Resulting Revenue: $6,072mm Greater San Joaquin (PGE) Addressable Market: 695k Anticipated Ho
Slide 20: 3. Differentiated Solution
Electriq power 3. Differentiated Solution 20
Slide 21: Electriq's Solutions / Product Offerings
Electriq’s Solutions / Product Offerings PowerPod2 Rechargeable home battery and home energy management solution Stores energy from solar or the grid Uses stored energy to lower energy costs and provide backup power Modular design to fit any size home Fleet Management Software Analytics and insights
Slide 22: Electriq's Differentiated Technology Solution
Electriq’s Differentiated Technology Solution Cloud Enabled Software Platform Embracing industry standards like Open Automated Demand Response (Open ADR) is designed to ensure seamless, secure and reliable integration with a variety of grid services partners Allows Electriq the ability to monetize a
Slide 23: Installation Differentiation
Installation Differentiation Electriq is UL certified for factory in the field and recommended by installers for its safety and user friendly interface UL 9540 Certification UL 9540A Test Method was developed to address safety concerns identified by the building codes and the fire service in the Uni
Slide 24: Electriq's Near-Term Technology Enhancements
Electriq’s Near-Term Technology Enhancements Hub-of-the-Home Acts as a Hub-of-the-Home – standing between utility and homeowner and helping both manage power costs and consumption Integrates with existing smart appliances and home management solutions (e.g. Google Home, Alexa), including EVs Allows
Slide 25: Product Manufacturing Overview
Product Manufacturing Overview LFP Batteries Inverter Enclosure Enclosures PowerHub PowerHub PoweHubs Purchase & Shipping Electriq specifies product requirements and purchases components; a freight forwarder is utilized to ship (via boat) from China to the U.S. Forwardly reserved 20,000 units(1) of
Slide 26: Key Components
Key Components Battery Packs Inverters Enclosures PowerHub Module Principal Supplier catl(1) Goodwe your solar engine shang Sierra Wireless Second Source Topband SMA Actno (Taiwan) Redstone (Mexico) Hybrid = cell module + BYD Strategy Ensure availability Reduce cost Ensure availability Geographic di
Slide 27: 4. Financials and Valuation
ELECTRIQ POWER 4. Financials and Valuation
Slide 28: Financial Snapshot
Financial Snapshot(1) Units Sold (# of Units) 320 2021 1,165 2022 6,111 2023 2023 = 6,111 units 786 Q1 2023 1,281 Q2 2023 1,772 Q3 2023 2,272 Q4 2023 Gross Profit and Margin % ($ in millions) $0.5 2021 $2.4 2022 $35.8 2023 2023 = $35.8 Margin = 26.8% $3.4 Q1 2023 $7.0 Q2 2023 $10.7 Q3 2023 $14.6 Q4
Slide 29: Projected Revenue Mix
Projected Revenue Mix Through upfront hardware sales, Electriq is creating a platform that is designed to generate substantial, recurring high margin software and services revenue Projected Shift in Revenue Mix 2022-2023 Potential Revenue Mix from Microgrid Sales Sustainable Communities Network 10%
Slide 30: Business Models Proven, Market Demand Strong, Scaling in Process
Business Models Proven, Market Demand Strong, Scaling in Process Segment Item Timeframe Status and Next Steps Progress Risk Mitigation White Label Scale Phase ~$25mm revenue expected through 2023 2021-2023 $25mm firm purchase orders in hand from white label partner for delivery over the next 18 mont
Slide 31: Transaction Overview
Transaction Overview Transaction Structure TLG Acquisition Corp. to merge with Electriq at a pro-forma Enterprise Value of $620mm (4.6x 2023E Revenue) SPAC Sponsor Shares – Up to 5mm forfeited and 1mm subject to performance-based vesting Up to 7mm SPAC shares to be used as incentives for new equity
Slide 32: Identifying Electriq's Comparable Universe
Identifying Electriq’s Comparable Universe Key Criteria for Determining Best Comps Leaders in residential battery storage Large addressable markets High-growth financial profiles Disruptive, renewable technologies Focus will be on growth and margin profile and competitive moat / differentiators Comp
Slide 33: Valuation and Operational Benchmarking
Valuation and Operational Benchmarking EV / 2023E Revenue Enterprise Value ($mm) Discount to mean 14.0x Mean: 6.1x Median: 5.5x EV / 2023E Revenue of comparables 11.5x 5.5x 6.4x 5.8x 4.6x 4.0x 2.1x 4.0x 1.9x 2022-2023E Revenue Growth 524% Mean: 31% Median: 35% 59% 62% 41% 36% 35% 28% 17% 9% (5%) 202
Slide 34: 5. Summary
evectaig}rawer 5. Summary
Slide 35: Key Investment Highlights
Key Investment Highlights Giant addressable market Residential solar installs are growing rapidly in the U.S., with annual capacity forecasted to grow at ~15%(1) Energy storage growth supported by favorable public policies Differentiated “total solution” offering Single solution designed to seamless
Slide 36: Electriq's Leading Management Team
Electriq’s Leading Management Team Frank Magnotti CEO Years of Experience: 38 / 30 Industry Founded Comverge, a pioneer of virtual power plant and virtual peaking capacity contracts with utilities and ISO’s 6 GW of demand response to ~5mm homes; Believed to be the first pure play smart grid company
Slide 37: 6. Appendix
evectaig}rawer 6. Appendix
Slide 38: Income Statement
Income Statement(1)(2) 2021 to 2023 Revenue CAGR = 526% ($ in millions) Revenue 1Q23 2Q23 3Q23 4Q23 FY21(A) FY22 FY23 System Revenues 14.2 26.6 39.1 52.3 3.0 21.3 132.3 Virtual Peaking Capacity Revenues 0.0 0.0 0.1 0.2 – – 0.4 O&M Revenues 0.0 0.0 0.0 0.0 – 0.0 0.1 Other Revenues (Tier 3 Support, PP
Slide 39: Net Working Capital Estimates
Net Working Capital Estimates(1) Total Inventory Balance ($mm) $29.0 $22.9 $24.8 $4.0 $22.4 $22.0 $21.1 $3.8 $2.8 $1.8 $ 2.9 $2.7 $0.9 $2.4 $0.8 $2.4 $1.2 $3.8 $1.7 $5.2 $1.8 $5.4 $1.2 $3.8 $10.3 $10.6 $10.6 $7.1 $10.1 $9.8 $5.8 $7.5 $7.0 $5.5 $5.0 $4.3 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Prepaid Ex
Slide 40: Multiple Levers for Potential Margin Expansion
Multiple Levers for Potential Margin Expansion Near Term Adjusted EBITDA Margin Expansion Scale through operating leverage expected as the company delivers growing unit volumes Segment mix shift anticipated from lower margin White Label to higher margin Sustainable Communities Network revenue Potent
Slide 41: Risk Factors
Risk Factors Electriq is a relatively new company with a history of losses, and we expect to incur significant expenses for the foreseeable future. We cannot be certain that we will achieve or sustain profitability. Electriq’s limited operating history and its rapidly evolving industry make it diffi
Slide 42: Risk Factors (Cont'd)
Risk Factors (Cont’d) Our hardware and software integrated energy storage solution may not achieve broad market acceptance, which would prevent us from increasing our revenue and market share. If demand for energy storage solutions does not grow or grows at a slower rate than we anticipate, includin