Microvast Holdings, Inc. · NASDAQ:MVST
Microvast — Investor Day (May 2023)
58 slides from Microvast's investor day presentation, May 25, 2023
Slide 1: Microvast: Forward Thinking. Powering Now.
Z ea e @,0 microvast” Forward Thinking. Powering Now."
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, expectati
Slide 3: Today's Agenda
3 Today’s Agenda2 0 2 3 I N V E S T O R D A Y 01 Company Overview BREAK YANG WU Founder, CEO, President SASCHA KELTERBORN Chief Revenue Officer 02 Commercial Vehicle ZACH WARD President, Energy Division 03 Energy Storage WENJUAN MATTIS, Ph.D. Chief Technology Officer 04 Technology 05 Manufacturing S
Slide 4: Yang Wu: Strategic Overview
4 Yang Wu F O U N D E R , C H I E F E X E C U T I V E O F F I C E R , P R E S I D E N T 2 0 2 3 I N V E S T O R D A Y Strategic Overview
Slide 5: Today's Objectives
5 Today’s Objectives 2 0 2 3 I N V E S T O R D A Y Show that Microvast is in a multi-year high-growth phase Demonstrate the technological innovation and leadership of the new HpCO 53.5Ah cell Provide a clearly defined expansion plan & route to profitability
Slide 6: How It Started
6 6 How It Started 2 0 2 3 I N V E S T O R D A Y Microvast began with an idea. We invested heavily in research to identify customer needs, as well as the R&D to create the battery the industry really needed. We can create a better battery for EVs. Ultra-fast charging capability Sync battery life wit
Slide 7: Our Innovation Requires Vertical Integration
7 Our Innovation Requires Vertical Integration We’re vertically integrated and maintain control of every aspect of our development process from research to manufacturing, including BMS and controls. We can create custom battery solutions quickly, with industry-leading energy density, superior safety
Slide 8: Microvast By The Numbers
8 Microvast By The Numbers 2,500+ Employees Globally 30,000+ Installed Battery Systems 17+ Years Experience Developing & Manufacturing Lithium-Ion Batteries 626+ Patents / Patent Applications ~$205M 2022A Revenue 4GWh 53.5Ah capacity expansions $486.7M Q1 Backlog Global Footprint With Presence In 34
Slide 9: Our 2021 Merger Raising >$700M Net Proceeds
9 Our 2021 Merger Raising >$700M Net Proceeds 2 0 2 3 I N V E S T O R D A Y • Clarksville, TN is in full construction mode and 2GWh expected to be in production in Q4 this year • Huzhou phase 3.1 is in ramp-up on its initial 2GWh cell, module and pack production • 53.5Ah cell deliveries will be made
Slide 10: Seizing The Market Opportunity With Our Industry-Leading Technologies
10 Seizing The Market Opportunity With Our Industry-Leading Technologies 2 0 2 3 I N V E S T O R D A Y Global Growth for Our Core Business Segments 2030 510GWh 2023 54GWh KEY TAKEAWAY We have an ongoing commitment to innovation, and we expect to be able to launch new products in 2025-2026. 2030 430G
Slide 11: Sascha Kelterborn: Strategic Overview – Commercial Vehicles
11 SASCHA KELTERBORN C H I E F R E V E N U E O F F I C E R 2 0 2 3 I N V E S T O R D A Y Strategic Overview – Commercial Vehicles
Slide 12: Commercial Vehicle Numbers
12 Commercial Vehicle Numbers I N V E S T O R D A Y 2 0 2 3 10+ Market applications being served 34 Countries with CV in operation 12+ Years vehicle operating history 30,000+ Installed battery systems deployed since 2011 24M Est. e-CV TAM in vehicle unit accumulated over 2022-2030 510 GWh Est. CV TA
Slide 13: Well-Positioned To Capture Surging Commercial Vehicle Demand
13 2 0 2 3 I N V E S T O R D A Y Microvast Is Well-Positioned To Capture The Surging Demand In The Global Commercial Vehicle Sector Image pictures from existing customers LCV E-Bus MD/HD TRUCK SPECIALTY CV Commercial Vehicle TAM
Slide 14: EV Adoption Rate In The Commercial Vehicle Market
14Source: BNEF, June 2022 GLOBAL CV SALES IN UNIT PER YEAR GLOBAL VOLUME GROWTH IN GWh Commercial Vehicle TAM 2 0 2 3 I N V E S T O R D A Y EV Adoption Rate In The Commercial Vehicle Market Is Projected To Increase From 2% In 2022 To 30% In 2030 e-CV Conventional CV m ill io n un it s 14.9 15.6 0.4
Slide 15: Microvast's High Energy Cell HpCO-53.5Ah
15 2 0 2 3 I N V E S T O R D A Y Microvast’s High Energy Cell HpCO-53.5Ah High Energy Density and Long Range Key Accounts Long Cycle Life Outstanding Safety and Thermal Management Superior safety features with high tolerance for abuse. Excellent low temperature performance (@-20°C with around 80% us
Slide 16: HpCO 53.5Ah Competitive Advantages
16 2 0 2 3 I N V E S T O R D A Y HpCO 53.5Ah Competitive Advantages Microvast’s Industry-Leading Technology KEY TAKEAWAY We’re delivering a battery cell for buses superior cycle life, operating range, charge time, and energy density. 1 Our total system performance gives significant TCO savings to ou
Slide 17: 52Ah Pack Competitive Advantages
17 2 0 2 3 I N V E S T O R D A Y 52Ah Pack Competitive Advantages KEY TAKEAWAY We’re delivering a battery cell for light duty CV with superior cycle life, charge time, and energy density. >145 Wh/kg MICROVAST HnCO 52Ah pack Our total system performance gives significant TCO savings to our customers.
Slide 18: Microvast Global Presence: Customer Projects
18 Microvast Global Presence 2 0 2 3 I N V E S T O R D A Y High-performance HD truck & trailer 20+ units ordered and in delivery in U.S. Airport terminal tractor 100+ units ordered and in delivery to U.S. & EMEA Transport vehicle for logistics centers 300+ units ordered and in delivery to U.S. & EME
Slide 19: Operational Proof Points
19 Microvast Global Presence 2 0 2 3 I N V E S T O R D A Y India* 700+ units Subsidiary of Indian Hinduja Group Various kinds of e-buses since 2019 33M estimated miles over project lifetime so far India* 800+ units Various e-buses since 2019 38M estimated miles over project lifetime so far The Nethe
Slide 20: Backlog – Latest Position
20 Backlog – Latest Position 2 0 2 3 I N V E S T O R D A Y EMEA Continues Exponential Growth And U.S. Commercial Vehicle Business Receives First P.O. For Clarksville Deliveries E-Bus MD/HD Truck Class 3-8 Specia lty Vehicles , Off-Road LCV Class 1-2 Ap pl ic at io ns Key Accounts Exp e c t m ult i
Slide 21: Zach Ward: Strategic Overview – Energy Storage
21 ZACH WARD P R E S I D E N T , E N E R G Y D I V I S I O N 2 0 2 3 I N V E S T O R D A Y Strategic Overview – Energy Storage
Slide 22: The Energy Numbers
22 The Energy Numbers 2 0 2 3 I N V E S T O R D A Y remains primary use for energy storage #1Energy Shifting 21% Americas' are forecasted to represent of annual storage capacity by 2030 35GWh+ Global Energy Storage Capacity added in 2022 IRA ENERGY STORAGE ITC 4 0% 68% YoY Growth global energy Annua
Slide 23: Microvast Energy Storage System
23 Microvast Energy I N V E S T O R D A Y 2 0 2 3 Energy Storage System (ESS) for Utility- Scale Energy Shifting Applications Launched in 2022 to provide a battery energy storage system Incorporates the proven, high-energy, lithium-ion 53.5Ah NMC cell technology Battery cells and modules are manufac
Slide 24: Energy Density
24 Energy Density I N V E S T O R D A Y 2 0 2 3 0.25CP/4HR Duration, 1 cycle per day, 100% DOD Industry-Leading Energy Density Fewer Containers Lower Construction Cost Lower Operations & Maintenance 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 Microvast NMC NMC LFP 1 LFP 2 4.30 3.95 3.65 2.60 U
Slide 25: Global Energy Storage TAM
25 2 0 2 3 I N V E S T O R D A Y Phase 1 Global Energy Storage TAM KEY TAKEAWAYS We believe U.S. and China are leading markets globally 2023 will be an inflection year for the U.S. Microvast will be expected to add 1.2GWh with its first project Global Annual Storage Installations By Region Based On
Slide 26: Energy Storage Total Available Market: Americas
26 AMERICAS ANNUAL ENERGY CAPACITY BY MARKET THE AMERICAS’ ANNUAL ENERGY CAPACITY BY MARKET (EXPECTED) Energy Storage Total Available Market I N V E S T O R D A Y 2 0 2 3 Source: BNEF: 1H 2023 Energy Storage Market Outlook, March 2023 KEY TAKEAWAYS U.S. market in rapid growth phase on its way to add
Slide 27: Energy Storage Growth Strategy
27 2 0 2 3 I N V E S T O R D A Y Phase 1 Energy Storage Growth Strategy
Slide 28: ESS Deployments
28 I N V E S T O R D A Y 2 0 2 3 Location United States United States DescriptionSize 2023 2024 2024 Delivery PROJECT #1 PROJECT #2 U nd er C on tr ac t Aw ar de d 300MW/1.2GWh Energy Storage ML-4300 Energy Storage ESS Deployments 100MW/400MWh
Slide 29: Why ESS Is A Huge Growth Opportunity
29 Why ESS Is A Huge Growth Opportunity… I N V E S T O R D A Y 2 0 2 3 Technology Our ESS solution provides a high density rate, energy retention rate, and round-trip efficiency Execution We already have a full project pipeline through 2025 U.S. Presence Manufactured battery cells and modules, a cle
Slide 30: Wenjuan Mattis: Strategic Overview – Technology
30 WENJUAN MATTIS, Ph.D. C H I E F T E C H N O L O G Y O F F I C E R 2 0 2 3 I N V E S T O R D A Y Strategic Overview – Technology
Slide 31: Technology Highlights: What Sets Us Apart
31 I N V E S T O R D A Y 2 0 2 3 Technology Highlights What Sets Us Apart 17+ Years of experience in the research and development of key materials, cells, module, pack, BMS, etc. 3 Continents to maximize the talent pool 780+ Researchers and engineers 626/463 Patent Applications/ Granted Patents $10M
Slide 32: Innovating Superior Lithium-ion Battery Solutions
32 FORWARD THINKING. POWERING NOW. Long Life Fast Charging Safety Energy Density ™ Innovating Superior Lithium-ion Battery Solutions To Power A More Sustainable Future I N V E S T O R D A Y 2 0 2 3 Delivering advanced battery technology for high performance Delivering distinct competitive advantages
Slide 33: Technology Portfolio
33 Technology Portfolio I N V E S T O R D A Y 2 0 2 3 Proprietary Technology Across All Battery Components Broad Portfolio of Cell Chemistries Suited to Specific Applications Unique Capabilities Down to the Cell Level Enables Tailored Solutions Gradient Cathode Non-Flammable Electrolyte Aramid Separ
Slide 34: Industry-Leading Technology
34 Industry-Leading Technology I N V E S T O R D A Y 2 0 2 3 Energy Density 95 Wh/kg 210 Wh/kg 265 Wh/kg Life Cycles 20,000 4,000 3,300 Representative Applications 10 min 15 min 30 min 30 min Charging Time (full charge) Ultra Fast Charge (LTO) Introduced in 2011 High Power (NMC-1) Introduced in 2016
Slide 35: Technical Analysis of HP, HPHE and HE NMC Cell Products
35 Cell Energy Denstiy (Wh/kg) Continuous cycling charge rate Cycle life at defined continuous charging rate Safety Calendar Life (years) High-Power (48Ah) High-Power/Energy (53.5Ah) High-Energy (52Ah) Technical Analysis of HP, HPHE and HE NMC Cell Products I N V E S T O R D A Y 2 0 2 3 1. Measured
Slide 36: Innovate With Focus On Energy Density & Safety: Gradient Cathode
36 Innovate With Focus On Energy Density & Safety Gradient Cathode I N V E S T O R D A Y 2 0 2 3 Our gradient cathode helps achieve best in class energy density while maintaining safety (ANL – NMC FCG). KEY TAKEAWAY Our gradient cathode helps achieve "best in class" energy density while maintainin
Slide 37: Aramid Separator Enables Superior Safety Performance
37 Our aramid separator enables superior safety performance compared to other separators. 16 Source: Expert interviews, academic research, press search The separator prevents short circuits during batterycharge-discharging. Improving battery performance, as it enables lower inner resistance, higher
Slide 38: Shane Smith: Strategic Overview – Manufacturing
38 SHANE SMITH C H I E F O P E R A T I N G O F F I C E R 2 0 2 3 I N V E S T O R D A Y Strategic Overview – Manufacturing
Slide 39: Operation Numbers
39 Operation Numbers I N V E S T O R D A Y 2 0 2 3 17+ Years of experience in the development & manufacturing of lithium-ion batteries 3 Continents to be close to our customers 3 Manufacturing plants >70% New production line expected utilization 2,500+ Employees globally 7GWh Anticipated total avail
Slide 40: Our Locations
40 Our Locations I N V E S T O R D A Y 2 0 2 3 Something here
Slide 41: Production Capacity Expansions
41 Completed Huzhou plant expansion Production Capacity Expansions Added 2.0 GWh per annum of battery cells, modules, and pack manufacturing capacity – ramping up now! New building supports up to 12 GWh per annum (additional utility infrastructure required) New capacity is being filled by growing ba
Slide 42: Huzhou Battery Manufacturing Plant Expansion
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Slide 43: Clarksville Video
43 Clarksville Video I N V E S T O R D A Y 2 0 2 3
Slide 44: Craig Webster: Strategic Overview – Financials
44 CRAIG WEBSTER C H I E F F I N A N C I A L O F F I C E R 2 0 2 3 I N V E S T O R D A Y Strategic Overview – Financials
Slide 45: Financial Highlights
45 Financial Highlights 2 0 2 3 I N V E S T O R D A Y 50+% 2022A to 2027E $486.7M Q1 Backlog 2027 Target >70% Clarksville Phase 1A 2024 anticipated Utilization $0 on U.S. asset base Leverage 13-15% 2027 Target Adj. OPEX (% of revenue)Revenue CAGR IRA credit potential $80M on each 2GWh capacity in U.
Slide 46: Our Capacity Expansions
46 Our Capacity Expansions 2 0 2 3 I N V E S T O R D A Y 2GWh Fully automated cell, module and pack production for 53.5Ah cell Huzhou 3.1 $1BN REVENUE POTENTIAL NO CAPEX until we need to add more capacity Huzhou ramping up production 2GWh Fully automated cell and module production for the 53.5Ah cel
Slide 47: 53.5Ah Expansions – Huzhou 3.1
47 53.5Ah Expansions – Huzhou 3.1 2 0 2 3 I N V E S T O R D A Y Note: Financials presented above reflect plant level only and assume (I) full 2GWh capacity is available, (ii) market ASP for CV and ESS battery solutions (iii) Opex from China operations. $ 500M New Revenue Potential Gross Margin & EBI
Slide 48: 53.5Ah Expansions – Clarksville 1A
48 53.5Ah Expansions – Clarksville 1A 2 0 2 3 I N V E S T O R D A Y Note: Financials presented above reflect plant level only and assume (I) full 2GWh is available, (ii) market ASP for CV and ESS battery solutions and (iii) Opex from Clarksville operations $ 500M New Revenue Potential Gross Margin &
Slide 49: Inflation Reduction Act Tax Credit Potential
49 Phase 1A=$80M Inflation Reduction Act = I N V E S T O R D A Y 2 0 2 3 $35KWh Battery production tax credit for cells and modules produced in Clarksville, TN $10KWh MODULES Clarksville, TN Phase 1A benefits from IRA at $45/KWh on its domestic battery cell and module production IRA POTENTIAL P.A. T
Slide 50: Geographic Diversification
50 Geographic Diversification 2 0 2 3 I N V E S T O R D A Y China 65% (132,469) EMEA 8% (15,809) U.S. 2% (3,651) APEC 25% (52,566) FY 2022A China 20% EMEA 30% U.S. 30% APAC 20% FY 2023E Huzhou, China Clarksville, TN $204.5M $358M 70-80% YoY Growth U.S. And Europe Becoming Dominant Markets (midpoint)
Slide 51: Revenue Visibility
51 Revenue Visibility 2 0 2 3 I N V E S T O R D A Y Backlog Makes Potential A Reality
Slide 52: Funding More Capacity
52 Funding More Capacity 2 0 2 3 I N V E S T O R D A Y Golden Rule: We only add more capacity when we have customer orders in place Based on backlog, we expect 2024 utilization for Phase 1A to be high Clarksville (up to 8GWh) is self-funding due to IRA credits We have the option to monetize the IRA
Slide 53: Operating Leverage & Margins
53 Operating Leverage & Margins 2 0 2 3 I N V E S T O R D A Y Scalable business model Backlog growth is underpinning fast growth phase Our R&D spend today is for our future product innovation PROOF POINT: We expect to add 4GWh capacity in 2023, revenue growth est. 70- 80%, and adj. OPEX est. to incr
Slide 54: The Steps To Profitability
54 The Steps To Profitability 2 0 2 3 I N V E S T O R D A Y 2022A 2023E 2024E 2025E+ Does not need equity capital 4GWh expansions fully funded We Have The Levers—Industrialization, Automation, Utilization & Innovation 8.2% (adj. GM) 20%+ (adj. GM)
Slide 55: Financials – Summing it Up
55 Financials – Summing it Up… I N V E S T O R D A Y 2 0 2 3 Growth The fast revenue growth is kicking in, and growing backlog tells you the 53.5Ah is a winner Capex We got Huzhou done, bringing 2GWh online and Clarksville is targeted for Q4 Funding We don’t need any equity to bring this capacity on
Slide 56: Yang Wu: Key Takeaways
56 Yang Wu F O U N D E R , C H I E F E X E C U T I V E O F F I C E R , P R E S I D E N T 2 0 2 3 I N V E S T O R D A Y Key Takeaways
Slide 57: Business Strategy Alignment
57 Business Strategy Alignment 2 0 2 3 I N V E S T O R D A Y We’re industrializing at scale, with improved automation and utilization to improve financial performance. We’re entering a multi-year, high growth phase supported by the sought-after HpCO 53.5Ah cell, new technology, increased capacity, a
Slide 58: Microvast: Forward Thinking. Powering Now.
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