Gores Guggenheim — SPAC Merger (September 2021)
52 slides from Gores Guggenheim's SPAC merger presentation, Sep 27, 2021
Slide 1: Polestar Investor presentation September 2021
Polestar Investor presentation September 2021 Exhibit 99.2
Slide 2: Disclaimer 1 / 2
Investor presentation — Disclaimer 1 / 2 This investor presentation (this “Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to the proposed business combination (the “Business Combination”) between Gores Guggenheim, Inc. (“GGI
Slide 3: Disclaimer 2 / 2
Investor presentation — Disclaimer 2 / 2 Industry and Market Data In this Presentation, GGI and the Company rely on and refer to certain information and statistics obtained from third-party sources which they believe to be reliable. Neither GGI nor the Company has independently verified the accuracy
Slide 4: High tech minimalism redefining luxury for the sustainable age
Investor presentation — High tech minimalism redefining luxury for the sustainable age Note: Please click on "Introduction Video" in order to access the video Introduction Video
Slide 5: Today's speakers and senior leadership
Investor presentation — Today’s speakers and senior leadership Thomas Ingenlath CEO Previously SVP of Design at Volvo Cars Behind Volvo Cars’ recent award winning design renaissance Awarded “Design Hero” at the 2017 Autocar Awards Nils Mösko Strategy & Business Development 15+ years automotive exper
Slide 6: The Gores SPAC franchise has a stellar track record
Investor presentation — The Gores SPAC franchise has a stellar track record Proven SPAC track record Alignment with key stakeholders An attractive opportunity for prospective targets Note: An investment in Gores Guggenheim or Polestar is not an investment in any other current or previous special pur
Slide 7: Business overview
Business overview Investor presentation
Slide 8: Business overview: history and heritage
Business overview — Strong heritage Continuous innovation Growth 2019 Completion and opening Chengdu Polestar Production 2020 First customer handovers and retail stores in operation 2017 Polestar 1 announced 2015 Acquisition by Volvo Car Group 2011 Official Performance partner of Volvo Cars History
Slide 9: Combining the best of both worlds
Global from day 1 Asset-Light = Growth / Scalable Already operational with global products and sales 2020 10k vehicles sold with 2025E 290k targeted1 10 markets across 3 continents Sales operations currently in 45 cities Leveraging Volvo Cars' and Geely Holding's industrial infrastructure Business o
Slide 10: Business overview: Core
Business overview — Core A Enabling consumer sustainable choices High-performance oriented Deeply rooted safety heritage through backing from Volvo Cars and rapid adoption of new technology (e.g., lidar) Professionalized marketing approach and real time brand valuation Differentiation through avant-
Slide 11: Diversified premium product portfolio
Business overview — Diversified premium product portfolio ~$155k Polestar 1 Polestar 2 Polestar 3 Luxury Aero SUV Polestar 4 Premium Sport SUV Polestar 5 Luxury Sport GT 4 Door Price Start of Production (SoP) Range ~120km range1 2019 ~$50-60k 2020 ~540km range1 Porsche Cayenne 2022E +600km target ra
Slide 12: Precept began as a manifesto of Polestar's future
Business overview — Precept began as a manifesto of Polestar’s future and is now becoming reality with Polestar 5 Split “Thor’s Hammer” headlights Long-range performance lidar SmartZone sensor suite replaces legacy ICE grille and enables enhanced ADAS features Air wing on hood for aerodynamics and l
Slide 13: Investment highlights
Investment highlights Investor presentation
Slide 14: A guiding star in a rapidly growing global electric vehicle industry
Investment highlights — A guiding star in a rapidly growing global electric vehicle industry 1 Capitalizing on fastest-growing segments of massive and secular-driven global market opportunity 2 One of two global premium EV players already in mass production setting new standards for sustainability,
Slide 15: A huge market opportunity
A huge market opportunity Driven by consumer behavior evolution, technological improvement, increased regulation and choice, as well as better charging solutions Average global price per model Number of cars sold (2025E) Global premium / luxury EV market $ 55,000-65,000 ~5 million $ 280-320bn × = In
Slide 16: Polestar addresses the fastest growing segments of the premium / luxury market
Investment highlights — Polestar addresses the fastest growing segments of the premium / luxury market 1 Addressing ~80% of the market 2025E Total Market Size per segment and car type in million units (incl. ICE vehicles) In the fastest growing categories 2020-2025E EV CAGR per car type In the faste
Slide 17: Portfolio targets profitable, high-growth segments
Investment highlights — Portfolio targets profitable, high-growth segments 1 Polestar 5 Chongqing SoP: 2024E F coupe premium Polestar 1 Chengdu SoP: 2019 Sports premium Polestar 2 Luqiao SoP: 2020 C/D premium Polestar 3 Chengdu / Charleston SoP: 2022E SUV E premium Polestar 4 Hangzhou Bay SoP: 2023E
Slide 18: The only global EV pure play alongside Tesla
Investment highlights — The only global EV pure play alongside Tesla 2 With the exception of Volvo and Porsche, incumbent OEMs exhibit a relative low speed of transition despite recent acceleration plan announcements Nio and Xpeng are still regional companies Lucid is yet to start production and wil
Slide 19: Cutting edge design coupled with an unrivaled focus on sustainability
Investment highlights — Cutting edge design coupled with an unrivaled focus on sustainability 2 Design Differentiation through avant-garde design, experience and sustainable choices High performance innovation driven by sports-oriented R&D team Deeply rooted safety heritage through backing from Volv
Slide 20: State-of-the-art EV powertrain development
Investment highlights — State-of-the-art EV powertrain development 2 Developing one of the most powerful motors in the world P10 rear motor with 450kW (~603 horsepower) Highest power variant combined with front motor will deliver 650kW 2-speed gearbox with dual clutch and disconnect feature = energy
Slide 21: Industry leading performance and technology
Smart partnerships propel time to market Polestar 3, with SoP in 2022E, will include unsupervised highway pilot offering during its lifecycle Best in class long range sensors via Luminar partnership First full Google Android vehicle with full OTA Capability Investment highlights — Industry leading p
Slide 22: Best of both worlds: stability of established players and agility of a start-up
Investment highlights — Best of both worlds: stability of established players and agility of a start-up 3 Product design & validation Vehicle attributes1 Digital offer Distribution D2C business model Engineering design & release Testing & verification Service centers Manufacturing capabilities Logis
Slide 23: Asset light and scalable set-up with state-of-the-art manufacturing facilities
Factory owned by Polestar Factory owned by Geely Holding and operated by Volvo Car Factory operated and operated by Volvo Cars Factory owned and operated by Geely 1 2 3 4 Investment highlights — Asset light and scalable set–up with state-of-the-art manufacturing facilities 4 Chengdu1 Luqiao2 Chengdu
Slide 24: Polestar aims to be the most capital efficient EV premium / luxury brand globally
1. 2025E capital intensity % used for Polestar. Please refer to slide 42 for additional information on financials. 2. For group 3. Excluding potential capacity of Ghent production site Source: Company information, Management estimates Polestar1 Investment highlights — Polestar aims to be the most ca
Slide 25: Digital first go-to-market model focused on customer experience
Investment highlights — Digital first go–to–market model focused on customer experience 5 Explore and Schedule an Experience Configure and Finance Manage your Polestar Experience starts fully digital and online Easy to scale without large investments Less reliance on third parties, increased control
Slide 26: Globally supported by four different permanent location formats
Volvo Retail Experience Space defined as Permanent and Temporary Space Destinations does not include Temporary Destinations (containers) Handover Centers are Polestar branded handover facilities Source: Company information, Management estimates Investment highlights — Globally supported by four diff
Slide 27: Unique service offer providing strong competitive advantage
Customer financing approach Full fledge financing and insurance portfolio Digital integrated, real time experience Pricing competitive and set by Polestar Investment highlights — Unique service offer providing strong competitive advantage 5 Differentiated service model Streamlined product offering L
Slide 28: Strong and defined market expansion
2022-2023E Investment highlights — Strong and defined market expansion 5 Markets targeted Locations Service points Selected new markets 2021E Current markets: Expansion to Europe Expansion to Asia Pacific1 30+ 150+ 800+ Selected new markets Source: Company information, Management estimates Further e
Slide 29: High growth model with leading margins
Investment highlights — High growth model with leading margins 6 Volume1, Thousands Revenue2, $bn 2025E EBIT2, $bn Strong volume growth expected over the coming years driven by new models and entering new markets New model line up in premium / luxury segment and new markets expected to contribute to
Slide 30: Revenue drivers
+29% CAGR 20A-25E of premium / luxury EV market Rapid growth of premium / luxury TAM 2 78% Of incremental sales between 21E-25E driven by existing markets Well-established existing geographical presence 1 77% Of incremental sales between 21E-25E driven by new car models Strong car pipeline: 3 models
Slide 31: Distinctive corporate culture
Investment highlights — Distinctive corporate culture 7 Thomas Ingenlath CEO Previously SVP of Design at Volvo Cars Behind Volvo Cars’s recent award winning design renaissance Awarded “Design Hero” at the 2017 Autocar Awards Johan Malmqvist CFO Previously CFO of Dole Foods in the US, Perstorp Chemic
Slide 32: Financial overview
Financial overview Investor presentation
Slide 33: Diverse new model pipeline driving top-line growth
Financial overview — Diverse new model pipeline driving top-line growth 3 new models in development and targeted to launch by 2024E Polestar 2, Polestar 3 and Polestar 4 expected key drivers of volume, from 2023E onwards mainly from launch of latter two models resulting in significant sales increase
Slide 34: Financial summary: breakeven by 2023E and 9% EBIT margin by 2025E
(1.6) (0.4) (1.2) 0.0 1.3 9% 16% 20% 22% 22% Gross margin (0.6) (1.0) 3.2 1.6 Financial overview — Financial summary: breakeven by 2023E and 9% EBIT margin by 2025E Note: Non GAAP metrics. Management estimates based on assumptions regarding Polestar’s performance in the geographic regions where it c
Slide 35: Capex spend to fund investments required for future model launches
0.7 0.7 0.6 Financial overview — Capex spend to fund investments required for future model launches Polestar 3 and SPA 2 platform expected to drive Capex 2021-2022E Capex need from main carlines of the business plan expected to tail off towards 2025E Next generation expected Capex in 2024E-2025E dri
Slide 36: Transaction overview and valuation
Transaction overview and valuation Investor presentation
Slide 37: Transaction overview
Transaction overview and valuation — Transaction overview Pro forma fully-diluted enterprise value of $20.0bn, or 3.0x 2023E Revenue and 1.5x 2024E Revenue Current Polestar equity holders will retain approximately 94% ownership in Polestar and roll 100% of their equity interests into the pro forma c
Slide 38: Focus on the premium / luxury segment
Focus on the premium / luxury segment ü ü ü ü û Already in production ü ü û ü ü Global geographic reach ü ü û û û 2+ SUV models by 2023E ü ü û û û Asset light1 ü û û û û Global service network ü ü û û û Public sustainability targets Climate neutral car by 2030E Climate neutral OEM by 2040E ? ? ? ? H
Slide 39: Attractive entry valuation with significant discount to peers
Transaction overview and valuation — Attractive entry valuation with significant discount to peers TEV / 2023E Revenue TEV / 2024E Revenue Note: Market date as of Sep 23, 2021 Source: FactSet, Company information, Management estimates Global Players Regional Players Core Peers Chinese EV Peers
Slide 40: Strong top and bottom line growth relative to peers
Transaction overview and valuation — Strong top and bottom line growth relative to peers Revenue growth CAGR projection (2022E-2025E) EBIT growth projection (2024E-2025E) 2024E / 2025E gross margin 2024E / 2025E EBIT margin Note: Market date as of Sep 23, 2021 Source: FactSet, Company information, M
Slide 41: Appendix
Appendix Investor presentation
Slide 42: Summary P&L
Appendix — Summary P&L 2021E 2022E 2023E 2024E 2025E Total volume (number vehicles sold) 29k 65k 124k 225k 290k NA 124% 90% 82% 29% % growth Total revenue 1,590 3,170 6,690 13,250 17,780 NA (1,450) 99% (2,660) 111% (5,240) 98% (10,590) 34% (13,880) % growth COGS Gross profit 140 510 1,440 2,660 3,91
Slide 43: Reconciliation of financials
Appendix — Reconciliation of financials EBITDA, $mn 2021E 2022E 2023E 2024E 2025E Net income (1,020) (670) (40) 610 1,560 0 0 0 0 0 (+) Income Tax EBIT (960) (600) 30 690 1,590 270 180 310 460 550 (+) Depreciation & Amortization EBITDA (700) (430) 340 1,160 2,140 Free Cash Flow, $mn 2021E 2022E 2023
Slide 44: Several trends are underpinning acceleration of EV adoption
Appendix — Several trends are underpinning acceleration of EV adoption 1 New entrants represent an incentive for further EV charging infrastructure build-out 2 EV charging infrastructure is on the rise 3 Ease of use 4 Decreasing TCO and improving technology 5 Regulatory restrictions 6 Technology str
Slide 45: Design meets sustainability
Appendix — Design meets sustainability Climate Neutrality Circularity Transparency Inclusion Using blockchain technology, enabling increased traceability of cobalt in batteries New approach to interior materials WeaveTech: light but durable material, free from hazardous chemicals Reconstructed wood
Slide 46: Precept design elements offer a preview to features on future Polestar models
Appendix — Precept design elements offer a preview to features on future polestar models Signature Headlights and SmartZone with ADAS sensors Revolutionary uses of sustainable materials Futuristic design visibly embedding technology and aerodynamics Rear visibility with camera Clean, luxurious inter
Slide 47: At the digital forefront
Appendix — At the digital forefront Unique Experience Cutting edge. Bespoke. Seamless. State-of-the-art electric motors State-of-the-art batteries First ever Android infotainment integration Autonomous Autonomous driving capabilities. In Polestar 3 Fully developed autonomous driving for highway pilo
Slide 48: First to launch an infotainment system powered by Google Android
Appendix — First to launch an infotainment system powered by Google Android ”Android Automotive is, quite simply, the car infotainment revolution we have all been waiting for”1 9/10 Polestar 2 was the first car to be launched with an infotainment system powered by Google Android Polestar comes fully
Slide 49: Robust R&D infrastructure driving innovation
Appendix — Robust R&D infrastructure driving innovation Polestar independently decides what to develop inhouse vs. “cherry-picking” from partners – the combination allows Polestar to focus on key differentiating technologies whilst leveraging R&D from the larger Geely Group (Volvo Cars, Geely and ot
Slide 50: Leading base technology
Appendix — Leading base technology High-performance motor State-of-the-art EV motor, balancing performance and cost Advanced features within EV motor (e.g., disconnect) Increased efficiency due to motor disconnect when power not required Advanced battery pack design State-of-the-art design R&D withi
Slide 51: Selected Risk Factors
Appendix — Selected Risk Factors The risks presented below are some of the general risks related to the Company, GGI and the combined company following the consummation of the proposed Business Combination (the “Post-Combination Company”). The list below is not exhaustive and is qualified in its ent
Slide 52: For questions, please contact: Polestar
For questions, please contact: Polestar Assar Gabrielssons Väg 9 SE-418 78 Göteborg Sweden polestar.com Investor presentation — Contact info All ideas contained within this document are owned by Polestar. © Polestar 2021