Energy Vault Holdings, Inc. · NYSE:NRGV
Energy Vault — SPAC Merger (October 2021)
51 slides from Energy Vault's SPAC merger presentation, Oct 13, 2021
Slide 1: Investor Presentation October 2021 Update
Investor Presentation October 2021 Update Filed by Novus Capital Corporation II pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14 a - 12 under the Securities Exchange Act of 1934 Subject Company: Novus Capital Corporation II Commission File No.: 001 - 39982 E
Slide 2: Disclaimer
Disclaimer Enabling a Renewable World ENERGY VAULT, INC. ALL RIGHTS RESERVED 2 This presentation (together with oral statements made in connection herewith, this “Presentation”) is for informational purposes only . This Presentation shall not constitute an offer to sell, or the solicitation of an of
Slide 3: Disclaimer (cont.)
Disclaimer (cont.) Enabling a Renewable World ENERGY VAULT, INC. ALL RIGHTS RESERVED 3 If any of these risks materialize or Novus’s or Energy Vault’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward - looking statements . There may be addi
Slide 4: Risk Factors
Risk Factors Enabling a Renewable World ENERGY VAULT, INC. ALL RIGHTS RESERVED 4 Unless the context requires otherwise, all references to the “Company,” "we” “us” or “our" refer to the business of Energy Vault, Inc . and its consolidated subsidiaries . The risks presented below are certain of the ge
Slide 5: Risk Factors (cont.)
Risk Factors (cont.) Enabling a Renewable World ENERGY VAULT, INC. ALL RIGHTS RESERVED 5 Business and Operating Risks; Projections (cont.) – The performance of our systems may be affected by factors outside of our control, which could result in harm to our business and financial results. – If we are
Slide 6: Risk Factors (cont.)
Risk Factors (cont.) Enabling a Renewable World ENERGY VAULT, INC. ALL RIGHTS RESERVED 6 Other Risks (cont.) – We do not intend to pay dividends for the foreseeable future. – We will have broad discretion in the use of the net proceeds to us from this offering and may not use them effectively. – Pro
Slide 7: Transaction Summary
Transaction Summary Energy storage momentum is one of the largest and most compelling new market opportunities Significant TAM with ~$640bn global investment in energy storage through 2040¹ Proven technology / local supply chain One of the most efficient, commercially viable and safe energy storage
Slide 8: The Global Energy Transition Has Significant Momentum
The Global Energy Transition Has Significant Momentum from Society, Investors, Corporations and Governments Corporate Demand Regulation / Spending E c o n o m i cs ($ per MWh) x U.S. has rejoined Paris Climate Accord and pledged to cut greenhouse emissions 50% by 2030 x European Commission strives t
Slide 9: Energy Vault: Energy generation on demand
~10 0 m ( 35 0 f t) Solar Project: Energy generation from sunrise to sunset Energy Vault: Energy generation on demand 9 9 Mohammed Bin Rashid Al Maktoum Solar Park 1.05 GW expanding to 5 GW by 2030 (Dubai) ¹ Total production capacity today of 1GW going to 5GW by 2030, Dubai Electricity and Water Aut
Slide 10: Our Vision and Mission
Enabling a Renewable World ENERGY VAULT, INC. ALL RIGHTS RESERVED Our Vision To be the preeminent energy storage company of the 21st century Our Mission To accelerate the decarbonization of our planet by introducing the most advanced, environmentally sound and economical energy storage technologies
Slide 11: Executive Leadership Team
Robert Piconi Co - F ou n d e r & CEO Andrea Pedretti Co - F ou n d e r & CTO Andrea Wuttke Chief Financial Officer Marco Terruzzin Chief Product Officer Laurence Alexander Chief Marketing Officer Gonca Icoren Chief People Officer Prior Executive leadership roles in Fortune 100 public companies acro
Slide 12: Contents
C o nt e n t s Enabling a Renewable World ENERGY VAULT, INC. ALL RIGHTS RESERVED 1. Market Opportunity 2. Company and Technology 3. Customers and Growth Visibility 4. Financial Profile 5. Transaction Overview 6. Appendix 12
Slide 13: 1. Clear Market Need for Energy Vault
1. Clear Market Need for Energy Vault Enabling a Renewable World ENERGY VAULT, INC. ALL RIGHTS RESERVED
Slide 14: Renewables as Percent of Total Production to Substantially Increase after 2020
0 1 0 ,000 2 0 ,000 3 0 ,000 4 0 ,000 5 0 ,000 6 0 ,000 7 0 ,000 8 0 ,000 1 9 50 1 9 60 1 9 70 1 9 80 1 9 90 2 0 00 2 0 10 2 0 20 2 0 30 2 0 40 2 0 50 Renewables as Percent of Total Production to Substantially Increase after 2020 As renewable energy production increases, renewable energy storage mus
Slide 15: The Increase in Renewables is Driving Demand for Energy Storage
The Increase in Renewables is Driving Demand for Energy Storage Global grid - scale energy storage projects are projected to increase more than 6x in capacity over the next 10 years Global Projected Grid - Related Annual Storage Deployments Source: US Department of Energy: Energy Storage Grand Chall
Slide 16: Existing Energy Storage Technologies and Drawbacks
90% 5 % 5 % % of Global Storage Capacity Today Tech Examples O t h er Advantages Lithium - ion batteries Lead - acid batteries Zinc hybrid batteries Open Loop (Linked to natural water source) Closed Loop (Isolated reservoir) Thermal / Flow Batteries Hot / cold storage Cryogenic Other Mechanical Comp
Slide 17: Energy Vault's Technology Meets Customer Needs and Outperforms Alternatives
Energy Vault’s Technology Meets Customer Needs and Outperforms Other Alternatives 17 Energy Vault Solves Utilities’ Needs Source: Bloomberg NEF, DOE global storage database ¹ Per S&P Global, Tesla owns ~83% of the US lithium - ion battery capacity. P u m p ed Hydro Lithium¹ Other Mech. / Thermal Cos
Slide 18: Technology Aligns with Demand for 2-12+ Hour Discharge Duration
5 25% Duration (hours) Round - trip Efficiency (RTE) (%) 50% 75% 10 100 100% Energy Vault’s Technology Aligns with the Primary Market Demand for 2 - 12+ Hour Discharge Duration Source: World Energy Council, US Energy Information Administration, Journal of Energy Storage, BNEF, Lazard 90% of grid - s
Slide 19: 2. Energy Vault Overview
2. Energy Vault Overview Enabling a Renewable World ENERGY VAULT, INC. ALL RIGHTS RESERVED
Slide 20: Company Evolution: 5 Years of Testing and Validation
G ri d - C o n n e c t ed July 2020 201 7 201 8 201 9 202 0 Technology Principles Validation Concept Design and ¼ Scale Prototype Commercial Demonstration Unit (CDU) Design & Mobile Masses EVx Product Launch CDU Construction & Testing 202 1 35 MWh CDU Co mm i s s i on i n g Company Evolution: 5 Year
Slide 21: Energy Vault: Unmatched Energy Storage Breakthrough
Energy Vault: Unmatched Energy Storage Breakthrough Combining conventional physics with 21st century software and material science Shipping Industry Crane Industry Industry Innovations for a Competitive Advantage Energy Vault synthesized four established industries and added advanced computer contro
Slide 22: EVx: Core Proven Technology In a Box
EV x : Core Proven Technology “In a Box” Simplified “Building Design” (compliant with all international building codes) Modular and Flexible (duration and size) Fully Recyclable (waste material) s o i l bottom ash glass fibers Enabling a Renewable World ENERGY VAULT, INC. ALL RIGHTS RESERVED 22
Slide 23: Patent Portfolio and Key Intellectual Property Overview
Patent Portfolio and Key Intellectual Property Overview Energy Vault has taken a deliberate and thoughtful approach to protecting its IP and trade secrets 4 Issued patents in the US 20 Pending¹ patents, 18 of which are international ¹ Includes 1 allowed patent. Using blocks to store energy Generatin
Slide 24: First Commercial Scale System in Switzerland Validated the Technology
Enabling a Renewable World 24 The first Commercial Scale system in Switzerland validated the Foundational Technology Connected to the Swiss National Grid in July 2020 Enabling a Renewable World ENERGY VAULT, INC. ALL RIGHTS RESERVED
Slide 25: EV Performance Results Above Expectations
EV 1 Performance Results Above Expectations Round - trip Efficiency (RTE): Extensive test campaign, with results presented to major US and Italian Utilities during their Due Diligence processes EV 1 expected RTE achieved; EV x RTE expected to increase to 80 - 85% Round - Trip Efficiency Above Initia
Slide 26: Physically Smaller Solution than Existing Energy Infrastructure
Physically Smaller Solution than Existing Energy Infrastructure Illustrative Height Comparison to Existing Infrastructure 900 ft EV x (Fully Modular System) 600 ft 300 ft 4 MW 7 MW 9 MW 20 15 20 10 20 05 Proposed design optimizes the energy / height ratio 50MWh to multi - GWh+ Wind Turbine Generatio
Slide 27: Technology Significantly Outperforms New Entrants in Energy Storage
185 111 248 194 149 130 128 122 119 115 112 104 95 85 65 Source: Bloomberg NEF June 2020 Energy Storage Review. ¹ Levelized cost of energy assumes one cycle per day for project life. ² ESS LCOE is based off of 2023E values. 2021 2025 Projected LCOE ¹ ($ / MWh) Energy Vault’s Technology Significantly
Slide 28: Cost and Performance Advantage Over Lithium-ion
Cost and Performance Advantage Over Lithium - ion Third - Party Analysis From Top 3 US Utility Company¹: 10 MW / 40MWh (4 Hour System) Lithium - ion Lithium - ion Total Cost of Ownership (in $/kWh ac) 2021 Capex (initial outlay) 298.0 350.0² Capex (Repowering Cells)³ 0.0 76.9 O&M³ 45.8 77.5 Total Co
Slide 29: Circular Economies Create Economic Value While Eliminating Environmental Liabilities
Source: American Coal Ash Association, IEA, Global Wind Energy Council ¹ North Carolina Public Staff Utilities Commission, S&P Global, Earthjustice; calculated based on $140,000 clean - up cost per acre. Circular Economies Create Economic Value While Eliminating Environmental Liabilities Causing Glo
Slide 30: Illustrative Replacement of 3 GW Coal Power Plant
Source: Clean Air Task Force ~10 0 m ( 35 0 f t) ~27 5 m ( 90 0 f t) Illustrative Replacement of 3 GW Coal Power Plant with Energy Vault Storage + Solar Before : Coal - Fired Power Station After : Energy Vault Resiliency Center 30 Energy Vault Resiliency Center (EVRC) Storage capacity: 500 MWh In se
Slide 31: Energy Vault is Purpose-Built to Serve the Global Energy Transition at Scale
Energy Vault is Purpose - Built to Serve the Global Energy Transition at Scale Gravity - based energy storage system offers a lower expected levelized cost than any current technology available – capex, opex and EOL Low Cost Scalable No topographical / geologic dependencies, can be built anywhere yo
Slide 32: 3. Customers and Growth Visibility
3. Customers and Growth Visibility Enabling a Renewable World ENERGY VAULT, INC. ALL RIGHTS RESERVED
Slide 33: Customer Engagements Rapidly Expanding, Global Blue-Chip Engagements
Customer Engagements Rapidly Expanding, Global Blue - Chip Engagements $32+ billion sales funnel of customer engagements under discussion over the next 5 years¹ 33 ¹ Represents total potential contracted value of 361 potential engagements over the next 5 years. Oil & Energy 20% Ot h e r 30% R e n ew
Slide 34: Project Delivery Scope
Project Delivery Scope M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 Planning & Procurement Mobile Mass Manufacturing Installation O&M Services Foundation Prep Construction & Assembly Testing & Commissioning QA / QC M12 Post - COD Software Licensing & Support • Selection of pre - qualified engineering, procure
Slide 35: Early-Stage Opportunities Provide Robust Visibility
2 , 845 6 , 366 8 , 980 6 , 828 7 , 452 2 , 845 9 , 211 18 , 191 25 , 019 32 , 471 Stage 5 Stage 4 Stage 3 Stage 2 Stage 1 Early - Stage Opportunities Provide Robust Visibility | $ in millions 35 $9,211 $18,191 $8,980 $2 5 , 019 $6,828 $32,471 $7,452 ¹ Figures shown represent total monetary value of
Slide 36: Key Customer Deployments Under Discussion Q4 2021 to Q2 2022
Q4 2021 to Q2 2022 Key Customer Deployments Under Discussion 7 customer projects projected to reach NTP over the next 12 months underpinned by executed agreements or letters of intent with 8 customers representing 1,223 MWh and $368 million in potential sales, and advanced commercial proposals with
Slide 37: Bookings, Deliveries, and Revenues
$ 96 $ 67 $ 263 $ 962 $ 0 $ 148 $ 535 Q 4 2 0 20 2 0 21 2 0 22 2 0 23 Bookings, Deliveries, and Revenues 37 Bookings and Deliveries (MWh) Bookings and Revenues ($mm) Boo ki n g s D e l iv e rie s Boo ki n g s R e v e n u es 1, 223 MWh $368 8 Executed A g r eeme nt s and LOIs 320 Enabling a Renewable
Slide 38: 2024 Business Contribution
2024 Business Contribution EV Owned T o t a l Total Cost of Ownership Comparison² ($/kWh) with Li - ion Batteries ¹ ROCE calculated over the life of the project while Adj. EBITDA reflects 2024E projections only. | ² Based on top US utility economic comparison. Assumes 35 year useful asset life. | ³
Slide 39: 4. Financial Profile
4. Financial Profile Enabling a Renewable World ENERGY VAULT, INC. ALL RIGHTS RESERVED
Slide 40: Two Complementary Revenue Models Based on Customer Preference
Two Complementary Revenue Models Based on Customer Preference Enabling a Renewable World ENERGY VAULT, INC. ALL RIGHTS RESERVED Customer Owned 40 Customer Owned Energy Vault Owned Payment Structure ▪ 20% at Contract Signing ▪ 10% at Site Groundbreaking ▪ 60% at Construction Milestones ▪ 10% at Custo
Slide 41: Projected Financial Profile
$25 $211 $193 $156 $122 Tech & Other Mobile Mass Machines (MMM) Equity Project Co - Investments $210 $540 $102 $366 $662 Revenue Adj. EBITDA¹ CapEx Adj. EBITDA - CapEx ($61) ($221) ($90) 2 0 21 2 0 22 2023 2024 2025 2021 2022 2023 2 0 24 2 0 25 MMM CapEx/ Revenue NM 10% 8% 7% 4% % of Adj. EBITDA NM
Slide 42: Commentary and Projected Cash Needs To Fund Growth
Commentary ▪ 2021 – 2022: Initial investments in company - owned projects help drive market adoption and future growth ▪ 2023 – 2024 : Impacts of product cost out, project mix enhanced by remediation and owned projects generate strong operating cash flow, while the company continues to fund growth ▪
Slide 43: 5. Transaction Overview
5. Transaction Overview Enabling a Renewable World ENERGY VAULT, INC. ALL RIGHTS RESERVED
Slide 44: Transaction Highlights: ~$1.1bn Enterprise Value, $100mm PIPE
~$1.1bn Enterprise Value | $100mm PIPE Transaction Highlights Pro Forma Ownership at $10.00 / Share² ¹ Represents $17.6mm of existing cash on balance sheet as of 30 - Jun - 2021 and $98.3mm of proceeds from Series C capital raise, which does not include up to an additional $8.7mm reserved for potent
Slide 45: Operational Benchmarking
0 % 5% 1 0% 1 5% 2 0% 2 5% 3 0% 3 5% 0 % 2 5% 5 0% 7 5% 1 0 0% 1 2 5% Operational Benchmarking 2023E – 2024E Revenue Growth | 2023E EBITDA Margin Energy Storage Technology Energy Transition T e c hno l o g y Disruptive Technology I nf r a s t ru ct u r e 1 High Revenue Growth and High EBITDA Margin
Slide 46: Valuation Benchmarking: EV / Revenue
0.7 x 4.3 x 1.0 x 1.3 x 7.7 x 8.9 x 1.8 x 4.4 x 0.6 x 8.0 x 7.3 x 7.2 x 9.7 x E n erg y V au lt S TEM E O SE GW H S h oa ls E N P H A R R Y S E D G A T H N CH PT E V G O F C E L T S L A Median: 5.8x 2.1 x 5.6 x 1.5 x 3.5 x 11.2 x 10.7 x 2.2 x 5.0 x 1.7 x 11.9 x 14.7 x 12.1 x 11.1 x E n erg y V au lt
Slide 47: Valuation Benchmarking: EV / EBITDA
11.1x 29.5x 40.6x NM 30.4x 41.0x 14.4x 26.0x NM NM NM NM 51.3x E n erg y V au lt S TEM E O SE GW H S h oa ls E N P H A R R Y S E D G A T H N CH PT E V G O F C E L T S L A Median: 30.4x 3.1x 15.6x 11.2x 8.1x 22.8x 28.2x 17.4x 23.0x NM NM E n erg y V au lt S TEM E O SE GW H S h oa ls E N P H A R R Y S
Slide 48: Fully Distributed Enterprise Value Sensitivities
$ 2,140 $ 3,038 $ 2,662 $ 4,394 $ 1,134 $ 6,420 $ 3,481 $ 10,252 Transaction Value EV / 2023E Revenue EV / 2024E Revenue EV / 2023E EBITDA EV / 2024E EBITDA Fully Distributed Enterprise Value Sensitivities ($ in millions) Implied Enterprise Value Source: Energy Vault projected figures per Energy Vau
Slide 49: Novus II Investment Thesis
Novus II Investment Thesis Innovate within an Existing Market Has a Committed and Capable Management Team Leadership Position in its Industry Has the Potential to Grow Through Further Acquisition Opportunities Operating Stability with Significant Growth Potential Consideration of ESG Factors Enablin
Slide 50: 6. Appendix
6. Appendix Enabling a Renewable World ENERGY VAULT, INC. ALL RIGHTS RESERVED
Slide 51: Illustrative Fully Diluted Share Count and Ownership
Illustrative Fully Diluted Share Count and Ownership (Share count in millions) Enabling a Renewable World ENERGY VAULT, INC. ALL RIGHTS RESERVED Source: Novus financials. Note: Assumes no redemption by Novus shareholders. ¹ SPAC shareholder warrant dilution assumes ~9.58mm public warrants outstandin