Quantumscape Corporation · NASDAQ:QS
Quantumscape — Kensington Capital Acquisition — SPAC Merger (October 2020)
37 slides from Quantumscape's SPAC merger presentation, Oct 15, 2020
Slide 1: Analyst Day October 2020
[logo] [logo] ANALYST DAY October 2020
Slide 2: Confidentiality, Proprietary Information, and Forward Looking Statements
Confidentiality, Proprietary Information, and Forward Looking Statements This presentation contains proprietary and confidential information of QuantumScape Corporation, and the entire content should be considered “Confidential Information.” This presentation is made solely for informational purpose
Slide 3: Transaction Overview
Transaction Overview Founded in 2010, QuantumScape Corporation has developed the only lithium-metal solid-state battery with automotive OEM validation Kensington Capital Acquisition Corporation (NYSE: KCAC.U) is an automotive-related special purpose acquisition company with $230mm cash held in trust
Slide 4: QuantumScape: Redefining Batteries
QuantumScape has the only lithium-metal solid-state battery with automotive OEM validation QuantumScape: Redefining Batteries Once in a century shift to electrified vehicles Solid-state batteries are the key to making this shift
Slide 5: Visionary Management Team
Visionary Management Team Select Management Team Members JAGDEEP SINGH Founder / CEO (Chairman) Founder / CEO Infinera (NASDAQ: INFN); Lightera, now Ciena (NASDAQ: CIEN); OnFiber, now Qwest; AirSoft MS Computer Science, Stanford PROF. FRITZ PRINZ Founder & Chief Scientific Advisor (Board Member) Cha
Slide 6: $802 Million of Total Funding Commitments Backed by Leading Investors
$802 Million of Total Funding Commitments¹ Backed by Leading Investors SELECT BOARD MEMBERS AND INVESTORS JOHN DOERR JB STRAUBEL VINOD KHOSLA JÜRGEN LEOHOLD DIPENDER SALUJA BRAD BUSS FRANK BLOME Bill Gates Management and board with extensive public company experience and operating capabilities in th
Slide 7: By the Numbers
By the Numbers $802mm of Committed Capital¹ Over $300mm spent on development to date 10 Years of R&D Investment Founded in 2010 200+ Employees World Class Next-gen Battery Development Team 200+ Patents² Materials, Use and Process Extensive Trade Secrets Processes and Intellectual Property Pro forma
Slide 8: Lithium-Metal: The Next Generation of Battery
Lead Acid 1970s 1980s 1990s-Today Nickel Metal Hydride Lithium-Ion Lithium-Metal QuantumScape Source: Cano et al (2018). Nature Energy, 3(4), 279–289; Ovshinsky Science 260 (1993) 176; Ding et al, Electrochem. Energ. Rev. 2, 1–28 (2019); Management analysis Lithium-Metal: The Next Generation of Batt
Slide 9: Massive Untapped Demand If Batteries Meet Mass Market Requirements
Source: International Organization of Motor Vehicle Manufacturers (OICA); IEA Based on 2019 global vehicle production; includes passenger vehicles, heavy trucks, buses and coaches (OICA). Battery opportunity assumes $100 / KWh and 50KWh+ battery pack. % of Global Car Stock in 2019 (IEA). 2% PHEV + B
Slide 10: Conventional Lithium-Ion Cell Energy Density Has Hit a Ceiling
Source: Placke et al. J. Solid State Electrochem., 21(7), 1939–1964; Quinn et al, Journal of The Electrochemical Society, 165 (14) A3284-A3291 (2018); Management analysis Highest energy density in mass market EVs today. NCA 18650¹ NCA 21700¹ Density Requirement: Mass: 400-500 Wh/kg (Volume: 1000 Wh/
Slide 11: Conventional Lithium-Ion Batteries Have Reached Their Physical Limit
Conventional Lithium-Ion Batteries Have Reached Their Physical Limit Performance Limited by Graphite (Carbon) / Silicon Anode Chemistry Cathode current collector Anode current collector Graphite / Silicon Anode Liquid electrolyte Liquid electrolyte Porous separator Wound cylindrical cell (e.g. 21700
Slide 12: Lithium-Metal Anode is Required for High Energy Density
Source: Andre et al, J Mater Chem A, (2015) 6709 Cathode Material Lithium-Metal Anode Graphite / Silicon Anode Graphite Anode Energy density of conventional anode limited Lithium-metal anode necessary to achieve high energy density Lithium-metal cannot be used without a solid-state separator Convent
Slide 13: QuantumScape Has The Solution: Rethinking the Battery
Conventional Liquid Battery QuantumScape Solid-State Battery Graphite / Silicon Anode Charged Lithium Metal Anode Solid-State Separator Catholyte Cathode Current Collector Anode Current Collector Discharged Lithium-Metal (as manufactured) Cathode Active Cathode Active Liquid Electrolyte Liquid Elect
Slide 14: QuantumScape's Value Proposition
Energy / Capacity: Significantly increases volumetric and gravimetric energy density Eliminates graphite/silicon anode host material ü Fast Charging: Enables <15 minute fast charge (0 à 80%) Eliminates lithium diffusion bottleneck in anode host material ü Cost: Lower cost Eliminates anode host mater
Slide 15: QuantumScape Technology is Lower Cost
QuantumScape Technology is Lower Cost Elimination of anode material Reduction in manufacturing costs No anode manufacturing Formation / aging substantially reduced Excludes system level benefits from lower weight / volume QuantumScape benefits from industry wide cost declines on standard components
Slide 16: Significant Technology Advantage Protected by ~200 Patents and ~100 Trade Secrets
Significant Technology Advantage Protected by ~200 Patents¹ and ~100 Trade Secrets CERAMIC SOLID-STATE SEPARATOR SINGLE LAYER POUCH CELL (1) Includes patents and patent applications.
Slide 17: Revolutionary Technology Removes the Tradeoffs
Revolutionary Technology Removes the Tradeoffs Today’s Lithium-Ion % Improvement System Volume 350 L (260 Wh/L) 350 L (470 Wh/L) 81% (Energy Density) System Energy 90 kWh 164 kWh 82% Range 400 km (250 Miles) 730 km (450 Miles) 82% Charge 22.5-min Fast Charge (5% à 80%) 15-min Fast Charge (0% à 80%)
Slide 18: Volkswagen Has Tested QuantumScape Sample Cells
“Volkswagen has already tested QuantumScape early-stage solid-state battery sample cells in Germany running at automotive rates of power.” –Volkswagen Group Press Release
Slide 19: Volkswagen Committed to QuantumScape Technology
Volkswagen Group Overview ~11 million vehicles produced in FY2019 ~$38 billion investment in electric mobility by 2024 Plans to launch ~70 electric vehicle models and produce 22 million electric vehicles by 2029 Volkswagen Partners with QuantumScape Corporate funding commitment of $300+ million Stro
Slide 20: QuantumScape is a Step-Function Ahead of Conventional Cells
QuantumScape is a Step-Function Ahead of Conventional Cells NMC2 NCA3 LFP1 Commercialized Chemistries NCA or Ni-rich NMC + Silicon / Carbon Anode Energy-optimized Cell Designs Source: Argonne National Laboratory; Management estimates 1 Lithium, iron, and phosphate 2 Nickel, manganese, and cobalt 3 N
Slide 21: Established Manufacturing Processes and Supply Chains
Established Manufacturing Processes and Supply Chains Unique processes use equipment that is already used at scale in battery or ceramics industries Equipment designed and manufactured by world’s leading vendors Materials have robust and well-established supply chains served by diversified chemical,
Slide 22: QuantumScape Company Timeline and Key Milestones
QuantumScape Company Timeline and Key Milestones In 10 years, QuantumScape Executed on Key Technological and Operational Breakthroughs 2010/2011 QuantumScape founded and spun out of Stanford by Jagdeep Singh, Professor Fritz Prinz and Dr. Tim Holme 2013 Separator materials exploration in rapid 12 ho
Slide 23: Validated Technology: Next Steps
Validated Technology: Next Steps Scaling The Product Increasing Separator Yield Multi-Layer Cell High-Volume Battery Manufacturing
Slide 24: QuantumScape: Driving Environmental Sustainability
QuantumScape: Driving Environmental Sustainability Climate Change Responsible Production Energy Efficiency Reducing global CO2 emissions Designed around abundant resources Enables clean energy sources Key ESG Themes
Slide 25: QuantumScape Unlocks Massive Global Opportunity
QuantumScape Unlocks Massive Global Opportunity Source: International Organization of Motor Vehicle Manufacturers (OICA); IEA Based on 2019 global vehicle production; includes passenger vehicles, heavy trucks, buses and coaches (OICA). Battery opportunity assumes $100 / KWh and 50KWh+ battery pack 9
Slide 26: Manufacturing Scale-Up Timeline
2021 2022 2023 2024 2025 2026 Manufacturing Scale-Up Timeline 1GWh Factory 20GWh Expansion Product Site Selection / Design / Construction Planning / Engineering Site Selection / Design / Construction Development / Validation OEM Sample Testing Planning / Engineering Equipment Install Equipment Insta
Slide 27: QuantumScape Factory Economics (QS-1, 20GWh)
QuantumScape Factory Economics (QS-1, 20GWh) Capex + Start-up Costs¹: $1.6B ~70% Cell Factory ~30% Separator Factory Equity Need²: ~$500M Note: Assumes 5% annual price and cost declines. Chart reflects 100% of factory financials. Includes costs for planning, FAT / SAT, and start-up; excludes mainten
Slide 28: Summary Financials
Summary Financials $ in millions 2022E 2023E 2024E 2025E 2026E 2027E 2028E Manufacturing capacity Total Production Capacity (GWh) 0 0 0.25 0.75 6 46 91 QS-1 Pilot (1 GWh) 0 0 0.25 0.75 1 1 1 QS-1 Expansion (20 GWh) 0 0 0 0 5 15 20 QS-2 0 0 0 0 0 30 70 Income Statement Revenue - - $ 14 $ 39 $ 275 $ 3
Slide 29: Transaction Overview
Transaction Overview Sources Pro Forma Valuation Uses Illustrative Pro Forma Ownership2 (in millions, except per share data) Note: Assumes no redemptions from Kensington’s existing public shareholders. Assumes PIPE shares are issued at a price of $10.00. Excludes the impact of Kensington’s warrants
Slide 30: Public Peers Benchmarking
Public Peers Benchmarking Source: Company information and FactSet as of August 31, 2020 Note: Metrics reflect non-GAAP financial measures Revenue Growth (%) Enterprise Value ($bn) Gross Margin (%) EBITDA Margin (%) EV / EBITDA (x) Operational Benchmarking Valuation Benchmarking Median: 37% Median: 2
Slide 31: QuantumScape Has Significant Upside Potential
QuantumScape Has Significant Upside Potential Applies a range of 5.0x – 9.0x EV / Revenue multiple to QuantumScape’s 2028E revenue to arrive at an Implied Future Enterprise Value range. Future Enterprise Value range is discounted 7 years to arrive at an Implied Discounted Enterprise Value range The
Slide 32: Overview of Kensington Capital Acquisition Corp.
Overview of Kensington Capital Acquisition Corp. Kensington Overview NYSE-listed (KCAC.U) Special Purpose Acquisition Company (“SPAC”) with $230 million in trust for the purpose of combining with an automotive technology company Management and board with extensive public company experience and opera
Slide 33: QuantumScape Fulfills Kensington's Investment Objectives
QuantumScape Fulfills Kensington’s Investment Objectives Investment Criteria North America-based automotive business valued at greater than $1.0 billion ü Leverages high-growth mega-trends of emerging technology proliferation ü Validated technical, commercial and financial capabilities based upon gl
Slide 34: Appendix
Appendix 34
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet (In Thousands, Except Share and per Share Amounts) Year Ended December 31 2019 2018 Assets Current Assets Cash and Cash Equivilants1 $22,822 $31.052 Marketable Securities 107,099 148,161 Prepaid Expenses and Other Current Assets 1,255 706 Total Current Asserts $131,176 $17
Slide 36: Consolidated Statements of Operations and Comprehensive Loss
Consolidated Statements of Operations and Comprehensive Loss (In Thousands, Except Share and per Share Amounts) Year Ended December 31 2019 2018 Operating Expenses Research and Development $45,944 $35,634 General and Administrative 9,874 9,768 Amortization of Intangible Assets – 51 Total Operating E
Slide 37: Consolidated Statements of Operations and Comprehensive Loss
Consolidated Statements of Operations and Comprehensive Loss (In Thousands, Except Share and per Share Amounts) Year Ended December 31 2019 2018 Operating Expenses Research and Development $45,944 $35,634 General and Administrative 9,874 9,768 Amortization of Intangible Assets – 51 Total Operating E
Kensington Capital Acquisition — SPAC Merger (October 2020) on 6ix