Kandi Technologies Group, Inc. · NASDAQ:KNDI
Kandi Technologies — Needham & Company 18th Annual Growth Conference (January 2016)
31 slides from Kandi Technologies's conference presentation, Jan 14, 2016
Slide 1: Needham & Company 18th Annual Growth Conference
fi. KANDI Needham & Company 18th Annual Growth Conference
Slide 2: Safe Harbor Statement
_i#, KANDI SAFE HARBOR STATEMENT Except for historical information contained herein, the statements made in the presentation of Kandi Technologies Group, Inc. (the “Company”) are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of
Slide 3: i, KANDI
i, KANDI
Slide 4: Kandi at a Glance
fi. KANDI Kandi at a Glance Founded in 2002 NASDAQ GS: KNDI (listed since March 2008) Stock Price: $8.86* Market Cap: $416.1M (46,964,855* outstanding shares) Three-month Average Daily Volume: 649,313 Shares* Headquarters: Jinhua, Zhejiang Province, China Three full-scale production facilities in Sh
Slide 5: Business Overview
i KANDI Business Overview Leading pure EV products provider in China. Committed to alleviating pollution, tra‘fic congestion, parking scarcity and energy crisis Innovative MPT (Micro Public Transportation) Program promotes rapid EV adoption. Launched direct sales program and introduced latest Model
Slide 6: Evolving into Pure EV Business
Evolving into Pure EV Business Started Quick Battery Exchange (QBEX) in 2009 Accelerated design, production & distribution of EVs in mid- 2012 Formed 50/50 Joint Venture with Geely Auto in March 2013; (st to launch MPT program in 2013 Started direct sales to individual customers beginning in April 2
Slide 7: EV Models
if, KANDI |) Overall Size 3598"1630°1595 | Wheel Base —_| 2340 mm Max. Speed 100 kmh Driving Range 160 km ‘hirmion fers Total Weight 1500 kg Battery Overall Size 3971°1745"1496 | Wheel Base | 2461 mm Max. Speed 2100 km/h Driving Range 190 km Overall Size 2900°1545°1590 | Wheel Base —_| 2080 mm Max.
Slide 8: EV Models (continued)
| _688iet CANDI EV Models (continued) Kandi K13 (City Cowboy) Kandi K12 (City Beauty) Production expected to start in 2016 Kandi K30 Model #SMA7002BEV05
Slide 9: Multiple Production Facilities
i, KANDI Multiple Production Facilities Changxing Facility* Shanghai Facility* Jiangsu Rugao” facility, under Hainan Province facility, relocated to production line testing in 4Q15 Haikou Hi-Tech Zone
Slide 10: Production Facility in Hainan
i, KANDI Production Facility in Hainan Designated as an official tourism island by the Chinese government Momentum towards legislation to ban all non-EV vehicles within the province Kandi secured an agreement with the Haikou government to relocate its Hainan facility to Haikou Hi-Tech Zone Annual ca
Slide 11: Joint Venture with Geely Auto
i KANDI Joint Venture with Geely Auto fi: KANDI GEELY Kandi Electric Vehicles Group Co., Ltd. Established in March 2013 - 50/50 ownership interest Increases production capacity to satisfy market demand Develops, manufactures and sells EVs & related auto parts 2015 EV sales estimate: exceed previous
Slide 12: i. KANDI
i. KANDI
Slide 13: Market Overview: Four Major Issues
KANDI | Market Overview: Four Major Issues © Growing demand for motor vehicles due to rapid economic development and fast-paced urbanization © Adoption of pure EVs and MPT Program helps alleviate major issues 1. Environmental Contamination 3. Traffic Congestion 4. Scarce Parking
Slide 14: Three Drivers of Resource Waste
fi. KANDI Three Drivers of Resource Waste Wasted Parking Resources Parking Time ‘Driving Time Wasted parking resources a ‘N } 90% / Wasted Road Resources 2Wasted road resources Wasted Vehicle Resources @Wasted vehicle resources y )\sonty person in 70% } 12-3 persons in car 154-5 persons in car 14
Slide 15: EV Development Barriers
i KANDI EV Development Barriers ~ Short Driving \ Range j Long Charging \ Time ' Lack of Charging \ Facilities y Battery ' Maintenance \ & Pollution
Slide 16: Overcoming Barriers: MPT Program
fi. KANDI Overcoming Barriers: MPT Program Micro Public Transportation (MPT) program with trial services in 16 cities in China Shared pure EV transportation platform for urban residents e) © Supported by a network of charging/parking stations, which provides charging, maintenance and battery recycli
Slide 17: Automated Charging/Parking Towers
Automated Charging/Parking Towers Fully computerized control system Customers not required to enter garage Automatic parking Smart charging device assembled Centralized tracking system monitors the real- time status and precise location of each rented vehicle On-Street Parking/Hotel Stations Chargin
Slide 18: Government Subsidies and Incentives
ig. KANDI |) Central Government PY CT Ta ete Subsidies benefit Subsid compensated in advance ubsidy consumers as prices paid reflect Local deduction of both Paid to consumers who purchase EVs from dealers subsidies Government Subsidy Received US$59.6 million prepaid national subsidy for pure EV sale
Slide 19: Recent Market Expansion Developments
i KANDI Recent Market Expansion Developments December September August July Expanded MPT Program to 16 cities in 2015 Launched MPT Program in Haikou with delivery of 2,000 EVs by the end of 2015 Planned to jointly promote connected electric vehicles and “Car-Share 4.0” with Geely, Alibaba, ZTE, Uber
Slide 20: i. KANDI
i. KANDI
Slide 21: Revenue
_i#, KANDI Revenue (USD in millions) ee 138.6 we 78.5 2012 2013 2014 9M2014 =9M2015 9M2014 =9M2015 (EV parts sales) (EV parts sales)
Slide 22: Net Income
_i#, KANDI Net Income (USD in millions) ne ah es 9M2014 = 9M2015 = 9M2014* 9M 2015* (Non-GAAP) (Non-GAAP)
Slide 23: JV Business Growth
_i#, KANDI JV Business Growth Sales EV Products {USD in millions) {in Units) 360.0 25,000 318.3 cle ~ Ry 179.7 126.8 2014 2015E 9M2014EV 9M 2015EV 2015E 9M2014 9M 2015
Slide 24: Financial Summary
| fi KANDI iscal Year Ended Dec 31 USD in millions (excluding per share) 2010 2011 2012 2013 2014 Revenues 42.88 40.18 64.51 94.54 170.23 Gross Profit 9.62 9.21 12.89 21.74 23.40 Operating Income 3.22 3.04 5.31 1.56 5.24 Net Income 0.95 on 6.05 21.14 12.27 ‘Adj. Net Income 5.00 4.00 4.47 5.16 14.20
Slide 25: Direct Exposure to Rapidly Growing EV Market in China
i KANDI Direct Exposure to rapidly growing EV market in China JV Partnership with Geely Auto enhances development of high quality and large scale EV products Innovative MPT Program accelerates wide-spread adoption of Kandi’s EV products Expanding Municipal Infrastructure in EV parking/charging — fac
Slide 26: 2016 Milestones
_&i8_ KANDI 2016 Milestones ‘Ga¥ 2015 EV sales estimate: & exceed previous guidance range of 20,000-22,000 by 5% or more Announcing FY15 results & FY16 outlook in March Rugao facility starts production; Hainan facility under construction lad Expand MPT Program into additional cities aga | Production
Slide 27: Thank you / Investor Relations
Kewa Luo Head of Public Relations, VP 212-551-3610 IR@kandigroup.com bt mish SAPS Thank you | _s8 i. KANDI Investor Relations Follow us on Twitter: twitter The Piacente Group 212-481-2050 kandi@tpg-ir.com
Slide 28: i. KANDI
i. KANDI
Slide 29: Organizational Structure
_i#, KANDI Organizational Structure Kandi Technologies Group, Inc. (KNDI) 0% Continental Development Limited (BVI)
Slide 30: Management Team
_i#, KANDI Management Team Hu Xiaoming - Chairman, Chief Executive Officer & President Chief Executive Officer, President and Chairman of the Board since March 2002; Project Manager (Chief Scientist) in WX Pure Electric Vehicle Development, a state-level high-priority technology developmental plan f
Slide 31: Police Patrol Vehicles
ig. KANDI |) Launched in January 2015 with Hangzhou Uptown Public Security Bureau Utilized for community safety patrols, fire safety inspections, and other police duties Customized with standard police equipment, firefighting apparatus, emergency kits, and other related equipment Enables police to n
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