Lightning Emotors, Inc. · OTC:ZEVY
Lightning Emotors — SPAC Merger (December 2020)
45 slides from Lightning Emotors's SPAC merger presentation, Dec 11, 2020
Slide 1: Investor Presentation December 2020
Investor Presentation December 2020 Exhibit 99.2
Slide 2: Safe Harbor
Safe Harbor Investor Presentation 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 the proposed business combination between Lightning Systems, Inc. (“Lightning eMotor
Slide 3: Safe Harbor (Cont'd)
Safe Harbor (Cont’d) Certain market data information in this Presentation is based on the estimates of Lightning eMotors and Gig3 management. Lightning eMotors and Gig3 obtained the industry, market and competitive position data used throughout this Presentation from internal estimates and research
Slide 4: Safe Harbor (Cont'd) Financial Information; Non-GAAP Financial Measures
Safe Harbor (Cont’d) Financial Information; Non-GAAP Financial Measures The financial information and data contained in this Presentation are unaudited and do not conform to Regulation S-X. Accordingly, such information and data may not be included in, may be adjusted in or may be presented differen
Slide 5: Detailed Transaction Overview
Detailed Transaction Overview Timeline Valuation Transaction Funding Transaction is expected to close in the 1st Half of 2021 It is anticipated that the post-closing company will be a Delaware corporation, retain the Lightning eMotors name, and be listed on the New York Stock Exchange Valuation impl
Slide 6: Overview of GigCapital3
Overview of GigCapital3 GigCapital3, Inc. (NYSE: GIK) is a $200mm publicly traded Special Purpose Acquisition Company (“SPAC”) / Private-to-Public-Equity (“PPE”) GigCapital3’s IPO was completed in May 2020 Led by a proven management team of experienced entrepreneurs and executives Public company ext
Slide 7: Today's Presenters
25 years of Technology CEO experience Founded and led multiple IT and Cleantech companies with successful funding and exits Tim Reeser Founder and Chief Executive Officer “We are already the leader and are now primed to scale. We help urban fleets make the transition to zero local emissions.” Today’
Slide 8: Agenda
Agenda Company Overview 2 Transaction Summary Financial Summary 3 Key Takeaways 1 Appendix 4
Slide 9: Key Takeaways
Key Takeaways
Slide 10: Lightning at a Glance
Lightning at a Glance 2 Years $2.0bn $67bn TAM (1) 10 Years R&D Blue Chip Customer Base U.S. Department of Energy, Ward’s and LMC Automotive. The customer validation cycle typically takes 3 to 24 months. By the end of 2020. As of September 30, 2020. Modular Architecture Strategic Partnerships 120 Ve
Slide 11: Strong Secular Trends Driving Massive TAM
Strong Secular Trends Driving Massive TAM $67bn TAM of Class 3 – 7 commercial vehicles electrification Large tailwinds of regulations, corporate mandates and grants 1 Dominant Market Positioning The only company that has delivered Class 3, 4, 5, 6 and 7 EVs First mover advantage – 50%+ market share
Slide 12: Company Overview
Company Overview
Slide 13: What We Do
Manufacture complete vehicles: Class 3 – 7 trucks & buses Offering both Battery (BEV) and Fuel Cell (FCEV) Highest up-time backed by supplier parts and service We sell powertrains to strategic partners Actionable fleet intelligence Unique Big Data on drive cycles Artificial intelligence optimization
Slide 14: Optimized Modular Design Addresses Diversified Opportunities
Optimized Modular Design Addresses Diversified Opportunities Class 3 Class 4 Class 6 Class 5 Class 7 We provide complete commercial electric vehicles and infrastructure Note: Pictures represent selected vehicles as examples in each class and our products are not limited to vehicles shown in the abov
Slide 15: Broadest Product Line Addresses Massive TAM
Additional market opportunity from charging business and sales to OEM Broadest Product Line Addresses Massive TAM Class 3 Class 4 Class 5 Class 6 Class 7 Unit Sales (2018) Sales Market Position (2020) 301K Total U.S. RoW Total 21K 81K 72K 64K 539K 993K Source: US Department of Energy, Ward's, LMC Au
Slide 16: Bespoke Sales Process to Sell Directly to Large Fleet Customers
Bespoke Sales Process to Sell Directly to Large Fleet Customers Compounding revenues as customers are expected to expand proportion of EV in their fleets Education-Focused Highly technical sales force Comprehensive national demo vehicle pool Data-Driven Customer Needs Analysis Best-in class telemati
Slide 17: We Have Real B2B Customers in Place
We Have Real B2B Customers in Place Note: Fleet data as of September 30, 2020. Technical Validation TCO Validation B2B Outreach to Fleets Initial Contract and Purchase Orders Repeat Orders 130 fleets in this stage Significant progress made in customer validation We are at the tipping point with acce
Slide 18: Target Market
Target Market URBAN Short and Medium Haul URBAN Short and Medium Haul Medium and Long Haul Medium and Long Haul Vehicle Types ZEV = BEV + FCEV Class 3 – 7 Today: Hybrid = NOT ZEV 2023: BEV = ZEV Class 2 to 5 Today: Hybrid = NOT ZEV 2023: CNG-EV = NOT ZEV Class 8 ZEV = BEV + FCEV Class 8 Total ZEVs O
Slide 19: Huge Untapped Market Opportunity with a Dominant Market Share
Huge Untapped Market Opportunity with a Dominant Market Share Light-Duty Vans, pickups Heavy-Duty Tractor trailers, transit buses Medium-Duty Vocational trucks, shuttle buses $67bn TAM E-Pick-Up War of 2021 E-Van War of 2021 E-Truck War of 2023 E-Transit Bus War of Today Class 4–5 Shuttles Class 5-7
Slide 20: Dominant Market Positioning
Dominant Market Positioning Lightning eMotors enjoys over 50% market share in electric vehicles across Classes 3 – 7, based on trucks expected to be shipped in 2020 Class 3 – 7 Commercial Vehicles Shipped in 2020 (1) “The Lightning Truck was the most reliable truck in our fleet over the last 3 month
Slide 21: Strong Global Secular Trends Driving Massive TAM
Zero Emission Zones: 30+ cities worldwide led by London and Santa Monica Commercial vehicles in California: By 2023: 100% zero emissions for new airport shuttle buses By 2029 (staged): 100% zero emission public transit authorities Advanced Clean Truck Law: 100% zero emission trucks by 2045 Strong Gl
Slide 22: Offering Immediate Operational Savings
Gasoline Lightning eMotors With Grants No Grants 2020E 2020E 2022E Fuel and Maintenance Cost per Month 2,925 563 563 Vehicle Lease 1,056 1,811 2,566 Charger Rental -- 300 300 LCFS (Low Carbon Fuel Standard) Credit -- (675) -- Total Monthly Cost $3,981 $1,999 $3,429 Monthly Cost Difference to Gasolin
Slide 23: Our Technology and Competitive Moats
Proprietary HD transmission Modular proprietary software Patent pending: Mobile charger High-power components Continuously collecting meaningful data from fleets Constantly optimizing: Range and drive cycles Accessory energy use Driver behavior Advanced regenerative braking Established infrastructur
Slide 24: Growing Intellectual Property Portfolio
Growing Intellectual Property Portfolio Invention Patent Status Smart Electronic Power Steering System Pending Mobile Charging Station with Battery Storage Pending Electric Vehicle Torque-Limiting Method and System Provisional on File Electric Power Train Conversion Kit Application In-Process Sensor
Slide 25: Highly Scalable Analytics Solution Drives Customer Retention
Fleet Management 1.8 mi / kWh Machine Learning Optimization: HVAC energy use Acceleration and route Regenerative braking Driver training (monetization opportunity) Class 3 Vehicles on CARB Dyno Highly Scalable Analytics Solution Drives Customer Retention Our proprietary analytics drive 25% greater e
Slide 26: Key Supply-Chain Partners
Key Supply-Chain Partners Foundation of our quality and ability to scale Specialty Vehicle Partners / OEMs Enable us to address all our target markets Established Strategic Partnerships Recreational Specialty Delivery Trucks RePower Ambulances School buses Shuttles Box Trucks Coaches RePower Compone
Slide 27: Case Study: Multidimensional Partnership with Plug Power
Case Study: Multidimensional Partnership with Plug Power The fuel cell-powered Class 6 truck allows customers to drive longer distances with larger payloads Vehicle Partnership Lightning eMotors is the sole EV partner of Plug Power 1st vehicle in service in November 2020 Available with 200 or 400-mi
Slide 28: Case Study: Strategic Partnership with ABC Company
Case Study: Strategic Partnership with ABC Company Partnership Overview We supply electric powertrains for RePower (replacing ICE with EV in older buses) ABC buys Lightning eMotors’ Class 3 – 5 electric shuttle buses Ongoing NRE contract in place $48mm PO in September 2020 About ABC Company One of t
Slide 29: Robust Contracts Provide Financial Visibility and External Validation
100,000 10,000 100,000 50,000 100,000 25,000 5,000 10,000 50,000 5,000 2,000 9 out of 11 customers are currently operating our vehicles $120mm+ REPEAT orders in Q3 2020 And more in surging pipeline # of ZEVs Robust Contracts Provide Financial Visibility and External Validation Total Addressable Flee
Slide 30: Highly Experienced Management Team
Bill Kelley 35+ years CTO and COO Robert Fenwick-Smith 35+ years Executive Chairman, Interim CFO Aravaipa Ventures Highly Experienced Management Team Tyler Yadon 10+ years Director, Engineering Keith Lehmeier 10+ years Director, New Product Development Brandon McNeil 22+ years Executive Director, Op
Slide 31: Financial Summary
C LIGHTNING >MOTORS Financial Summary
Slide 32: Projected Revenue by Product Mix
Already received purchase orders to fulfill 100% of 2020E and 2021E revenue Projected Revenue by Product Mix ($ in mm) Commercial EVs EV as a Service Energy as a Service Systems for OEMs Rapidly Growing Pipeline and Contracted Purchase Order Backlog 195% ‘20-’25E CAGR Pipeline: Contracted PO Backlog
Slide 33: Drivers of Growth are Already in Place
2020E 2021E 2022E 2023E 2024E 2025E Main Driver Fleet Trials GRANTS SUPPLY CHAIN Maturity REGULATIONS Either for Sustainability or future regulations $140mm in CA HVIP $200mm rest of USA COGS down 50% due to volume. Already contracted. CA Advanced Clean truck rule kicks in. Santa Monica and other ZE
Slide 34: The Path to COGS Reduction
The Path to COGS Reduction Gross Margin Projections Gen 1 launched in early 2018A, Gen 2 launched in 2020E, Gen 3 in 2021E Design has been field-tested and validated by customers for 2 years Supply Chain partners vetted and long-term contracts under negotiation 3-Year Battery Contract with On Track
Slide 35: Continuing Operating Leverage Expected to Drive Profitability
R&D % of Revenue R&D Expenses S&M Expenses G&A Expenses S&M % of Revenue G&A % of Revenue ($ in mm) ($ in mm) ($ in mm) Continuing Operating Leverage Expected to Drive Profitability B2B business model drives lower S&M expenses Platform modularity ensures efficient use of spend Predominantly fixed co
Slide 36: Projected Path to Profitability
EBITDA (1) Free Cash Flow (2) ____________________ EBITDA defined as Operating Income plus Depreciation & Amortization. Free Cash Flow defined as Cash Flow from Operations minus Capital Expenditures. Assumes $273mm proceeds from SPAC transaction and no additional debt raised in the projected years s
Slide 37: Established Medium-Duty Leader Ready for Rapid Profitable Growth
Established Medium-Duty Leader Ready for Rapid Profitable Growth Internal company data. Highest Revenue Visibility Among Peers 2021 fully contracted under binding contracts $800mm pipeline provides predictability beyond Established Market Leader Unique proprietary modular software and hardware desig
Slide 38: Transaction Summary and Valuation Overview
Transaction Summary and Valuation Overview
Slide 39: Detailed Transaction Overview (Cont'd)
Detailed Transaction Overview (Cont’d) Key Transaction Terms Illustrative $100 million Convertible Note and $25mm PIPE Illustrative Pro Forma Valuation Pro Forma Ownership @ $10.00 / Share Illustrative Sources and Uses Minimum of at least $150 million across Convertible Note, PIPE and cash remaining
Slide 40: Lightning eMotors' Comparables
Pure-play EV competitors CapEx heavy business model Enabling next-gen technology in automotive sector Technology-driven differentiation High-growth AutoTech players Valuations driven by long-term projections Lightning eMotors’ Comparables AutoTech Selected Recent AutoTech SPAC Mergers Electric Vehic
Slide 41: Operating Benchmarking
Operating Benchmarking CY2021E EBITDA Margin Revenue Growth Gross Margin CY2024E Source: Company filings and Wall Street research as of December 9, 2020. Note: Statistics exclude stock-based compensation, amortization of intangibles, and one-time charges. Lightning eMotors is not included in median.
Slide 42: Valuation Benchmarking
Valuation Benchmarking EV / EBITDA (2) EV / Revenue EV / Rev / Growth Source: Company filings and Wall Street research as of December 9, 2020. Note: Statistics exclude stock-based compensation, amortization of intangibles, and one-time charges. Lightning eMotors is not included in median. Based on E
Slide 43: Operating Benchmarking of Select EV SPAC Mergers
Operating Benchmarking of Select EV SPAC Mergers Source: Company filings and Wall Street research as of December 8, 2020. Nikola estimates based on FactSet consensus. CANOO Revenue ($mm) EBITDA Margin NM 259% 273% 130% 113% Rev. Growth: NM NM 174% 155% 70% NM NM NM 196% 105% NM NM 309% 336% 121% NM
Slide 44: Transaction Priced At A Deep Discount to Peer Multiples
Transaction Priced At A Deep Discount to Peer Multiples Implied Future EV: apply a range of 6.00x – 8.00x multiples (discount from median of Lightning eMotors’ EV and AutoTech peer groups’ CY2021E multiples = 15.87x) to its CY24E Revenue of $1,165mm to arrive at an Implied Future Enterprise Value Im
Slide 45: Thank You
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