Slide 1: Investor Presentation March 2021: The Human Security Company
Investor Presentation March 2021 The Human Security Company
Slide 2: About this Presentation
About this Presentation This presentation is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination (the “proposed business combination”) between Evolv Technologies, Inc. (the “Compan
Slide 3: Forward Looking Statements
Forward Looking Statements This document contains certain forward - looking statements within the meaning of the federal securities laws with respect to the proposed transaction between NewHold Investment Corp. (“NewHold”) and Evolv Technologies, Inc. (“Evolv”). These forward - looking statements ge
Slide 4: Executive Summary
EXECUTIVE SUMMARY
Slide 5: The Leader in Touchless Security Screening
The Leader in Touchless Security Screening Security as a Service Disruptive AI based Security Company BREAKTHROUGH TECHNOLOGY CREATES BARRIERS TO ENTRY ICONIC CUSTOMER BASE SUBSCRIPTION BASED SAAS BUSINESS MODEL STRONG ROI FOR CUSTOMERS STRATEGIC PARTNERS ACCELERATE GROWTH 5 1 Current products. 2 In
Slide 6: Transaction Summary
Transaction Summary Peter George CEO Peter Faubert CFO Anil Chitkara Founder & Head of Corporat e Devel op ment CEO Kevin Charlton Charlie Baynes - R eid COO Adam Deutsch CFO Mike Ellenbogen Founder & Chief I n nov a tion Off i c er Offering Capital Str u c t u r e Se l e c t e d E v o l v Investors
Slide 7: Evolv – Unique Investment Opportunity
Evolv – Unique Investment Opportunity World Class Management Te 7 am Industry veterans with decades of experience in cyber and physical security 7 Diverse & Growing Customer Base 3 Blue - chip customer relationships across multiple markets including sports, tourism & entertainment 6 Land & Expand Ci
Slide 8: Transforming the Threat Detection & Security Markets
Any Given Sunday … Transforming the Threat Detection & Security Markets Evolv’s market leading, disruptive technology can screen 10X more people than legacy providers without sacrificing safety … Evolv Solution 8
Slide 9: Key Differentiators: Touchless Security Screening
x 10X faster than metal detectors x Screens 3,600 visitors per hour x Automatically differentiates weapons from personal items x Detects concealed items on people and in bags x AI / Machine Learning algorithm x Highly effective security system = technology + people + process x Touchless screening de
Slide 10: Evolv Customers — Iconic Global Brands
Evolv Customers — Iconic Global Brands American Museum of Natural History 10
Slide 11: Significant Global Market Opportunity — $20B TAM
11 Significant Global Market Opportunity — $20B TAM WAREHOUSE, DISTRIBUTION & MANUFACTURING 116K sites OFFICE BUILDINGS 35K sites 137K sites EDUCATION 10K sites HOSPITALS TOURIST & CULTURAL INSTITUTIONS 5K sites 12K sites HOUSES OF WORSHIP 40K sites HOSPITALITY & CASINOS 26K sites GOVERNMENT 10K sit
Slide 12: Highly Accomplished Management Team
12 Highly Accomplished Management Team x Proven leaders in disrupting both cyber and physical security sectors x Experienced technology development team x Entrepreneurial background throughout executive management team x Deep bench supporting the executive team Mike Ellenbogen Founder & Chief Innova
Slide 13: Why Evolv?
WHY EVOLV?
Slide 14: Why Evolv?
Why Evolv? Unique disruptive technology that transforms the security experience • Screens 3,600 visitors per hour as they pass through without stopping • Touchless security screening reduces wait times and provides superior visitor experience • Greater efficiency generating up to 70% reduction in co
Slide 15: Agile AI-Based Screening System
Agile AI - Based Screening System Expands to Screen Multiple Threats Including Elevated Body Temperature Delivers Analytics & Intelligence to the Venue Automatically Differentiates Weapons from Personal Items Learns Over Time 15
Slide 16: IP Portfolio and Proprietary Know-How
IP Portfolio: x Multi - frequency transmission and analysis x Proprietary sensor design x Metamaterial arrays x Active and passive beam forming and steering x Compressive reconstruction x Automated threat detection algorithms x Real time data flow and processing x Multiple cameras for alert resoluti
Slide 17: Cortex AI Software is Revolutionizing Physical Security
Cortex AI Software is Revolutionizing Physical Security Evolv Cortex AI Ρ SENSOR N E T W O R K 1,000s of sensor - based inputs from Evolv Express ® DATA ENGINE Data instantly aggregated, processed and served up to the algorithm AI THREAT CLAS S IFIER ML - based algorithm trained to differentiate per
Slide 18: Compelling Value Proposition for the Customer
18 Compelling Value Proposition for the Customer Note: Graphic, total cost reduction, and cost per scan methodology displayed above is representative of a professional sports scenario, per management estimates. W e e s tima t e u p t o 70 % l o w e r co s t to run the security operation than existin
Slide 19: Growth Strategy
GROWTH STRATEGY
Slide 20: Rapid Customer Growth in City and Across Verticals
Rapid Customer Growth in City and Across Verticals Establish NYC presence, then expand into vertical segments in additional cities E n tertainm en t Tourist Additional Verticals NEW YORK CUSTOMERS Strong Geographic Footprint Expanded Across Verticals Throughout U.S. x Started in NYC with Lincoln Cen
Slide 21: Expanding the Market
Expanding the Market Large Market Population > 1M Medium Market Population <1M, >500K Small Market Population <500K CHANNEL ACTIVATION Use Direct “Touch” Sales Motion to Enable & Activate Channel STRATEGIC BEACHHEAD Land First Mover In Each Professional Sport & Global Entertainment Organization 50+
Slide 22: Global Opportunity Accelerated Through Partnerships
Evolv’s Global Opportunity is Accelerated Through Partnerships T a r ge t Ma r k e t Regional Channel Partners: Se c u r e f lig h t LT D Global Strategic Partners: 22
Slide 23: Global Strategic OEM Partnership
23 Global Strategic OEM Partnership “Evolv Technology was selected from a broad range of potential partners based on its demonstration of reliable results in diverse real - world environments and its digital - native platform . We are excited about the benefits that an integrated Motorola Solutions
Slide 24: Initial Land & Expand: ~$175M ARR with a $7B+ TAM
Initial Land & Expand: ~$175M ARR with a $7B+ TAM Growth driven by additions & expansions from marquee customer accounts REPRESENTATIVE & TARGET CUSTOMERS END MARKET Tourist Sites Performing Arts & Entertainment Municipal Government Industrial Workplaces Theme Parks REPRESENTATIVE & TARGET CUSTOMERS
Slide 25: Line of Sight on $1B in ARR
Line o f Sig h t o n $1B i n AR R with Exi s ting E v ol v E x p r es s ® P r oduct Mi d - T e r m Near - Term Expand in Existing High Opportunity Vertical Markets in the U.S. Expand into Adjacent Vertical Markets and Land in International Cities Long - Term Expand Existing Vertical Market and Geogr
Slide 26: Future Direction: The Digital Threshold Vision
Future Direction: The Digital Threshold Vision INTERIOR Retail Optimization Exit Routing & Promotion Staff Planning Crowd Intelligence Threat Intelligence Weapons Screen Health Screen People Flow Analytics Ticketing / Credential Check Biometrics IDs Demographic Analytics Crowd Intelligence Entry Rou
Slide 27: Acquisitions to Drive Expansion and Growth
Acquisitions to Drive Expansion and Growth STRATEGIC GROWTH DRIVERS: Significant opportunities to extend digital threshold through acquisitions and partnerships C r ow d Flow Analytics P a rki n g & Li c ense Plate Analytics Bi o metri c s & Demogra ph i c s Threat I n tell ig en c e Smart Ticketing
Slide 28: Data Driven Solution Provides Significant Market Opportunity
28 Data Driven Solution Provides Significant Market Opportunity x Build a consumer brand x Capture rich data set on venues, events and users x Monetize through analytics packages and data feeds 3 MONETIZE THE DATA: Enable Consumer Pass for Personalized, Frictionless Journey x Provide touchless ticke
Slide 29: Financial and Transaction Overview
FINANCIAL AND TRANSACTION OVERVIEW
Slide 30: Compelling SaaS Business Model
30 Compelling SaaS Business Model Security - as - a - Service (SaaS) Pricing Pricing options: straight monthly subscription or hardware purchase plus software subscription 48 Month CONTRACTS 12 Month SUBSCRIPTION PAID IN ADVANCE $2k — $3k PER MONTH PER SYSTEM Innovating Security Industry Business Mo
Slide 31: Scalable Platform with Expanding Gross Margins
Revenue by Type (US$ in Millions) $ 5.8 $4.3 $20.2 $53.1 $13 2.3 $33 7.9 $ 5 9 5.0 2 0 19 A 2 0 20 A 2 0 21 E 2 0 22 E 2 0 23 E 2 0 24 E 2 0 25 E Bookings by Type (US$ in Millions) 31 Scalable Platform with Expanding Gross Margins EBITDA & Margin (US$ in Millions) Gross Profit & Margin (US$ in Milli
Slide 32: Illustrative Pro Forma Capitalization & Ownership at Close
Illustrative Pro Forma Capitalization & Ownership at Close (in millions) 32 Transaction Summary Illustrative Sources & Uses (US$ in millions) Illustrative Pro Forma Valuation (US$ in millions, except per share data) Existing Evolv Shareholders PIPE Shareholders NewHold Shareholders $1.75B PF Equity
Slide 33: Comparable Public Company Universe
33 Comparable Public Company Universe x Revolutionary and disruptive AI software x Global TAM — ~$20B x Attractive high - margin, recurring, 4 - year subscription - based revenue model x Established blue - chip customer base Disruptive SPAC category leaders expected to transform legacy industries Si
Slide 34: Select Peers Operational Benchmarking
155.9% 9.9% 137.5% 700.0% 74.4% 105.9% 461.0% 118.4% 64.7% 5.7% 2 1 - 23 E 2 1 - 23 E 2 1 - 23 E 2 1 - 23 E 2 1 - 23 E 2 1 - 23 E 2 1 - 23 E 2 1 - 23 E 2 1 - 23 E 2 1 - 23 E 34 Select Peers Operational Benchmarking Revenue CAGR (21E - 2 3 E) Gross Ma r g ins (21E) Source: Capital IQ and Company fili
Slide 35: Select Peers Valuation Benchmarking
35 Select Peers Valuation Benchmarking EV / R e v e nue EV / EBIT D A Assumes an E nte rpri se Val ue of $1.3B Source: Capital IQ and Company filings as of March 1, 2021. AppHarvest, Astra, Chargepoint, Desktop Metal, Momentus, Luminar, and Velodyne Revenue and EBITDA per management estimates. Astra
Slide 36: Illustrative Valuation Methodology
SECURITY TECHNOLOGY & ANALYTICS IMPLIED ENTERPRISE VALUE 8.0 - 10.0X 2025E REVENUE SECURITY TECHNOLOGY & ANALYTICS IMPLIED CURRENT ENTERPRISE VALUE DISRUPTIVE SPACs IMPLIED CURRENT ENTERPRISE VALUE 6.0 - 7.0x 2025E REVENUE Illustrative Valuation Methodology FUTURE ENTERPRISE VALUE Security Technolog
Slide 37: Evolv Technology — The Human Security Company
E v ol v T echnol o gy — “ Th e Hum a n Security Co m pa n y ” Disruptive AI Software Technology Global $20B TAM Diverse & Growing Customer Base High ROI for Customer Unique & Compelling Business Model Land & Expand City Strategy World Class Management Team 37
Slide 38: Appendix
APPENDIX
Slide 39: Financial Projections Summary
Financial Projections Summary 39 (US$ in millions, except unit data) 2019A 2020A 2021E 2022E 2023E 2024E 2025E Units Subscription 66 206 429 1,547 3,098 5,266 7,636 Product 98 3 66 171 319 478 861 Bookings Subscription $6.1 $21.3 $47.3 $178.2 $367.0 $658.3 $970.5 Products 6.8 0.4 6.0 16.4 32.0 50.4
Slide 40: Risk Factors
Risk Factors 40 Risks Related to Evolv Technology’s Business and Industry • We are a rapidly growing company with a history of losses. We have not been profitable historically and may not achieve or maintain profitability in the future. • Our operating results may fluctuate for a variety of reasons,
Slide 41: Risk Factors (Cont.)
Risk Factors (Cont.) 41 Risks Related to Evolv Technology’s Business and Industry (Cont.) • If we do not effectively expand, train and retain qualified sales and marketing personnel, we may be unable to acquire new customers or sell additional products to successfully pursue our growth strategy. • I