Electriq Power Holdings Inc. · OTC:ELIQQ
Electriq Power — TLG Acquisition One — SPAC Merger (March 2023)
46 slides from Electriq Power's SPAC merger presentation, Mar 27, 2023
Slide 1: Investor Presentation March 24, 2023
Exhibit 99.1 Investor Presentation March 24, 2023 Questions? Contact us at ir@electriqpower.com 1
Slide 2: Confidentiality and Disclaimer
Confidentiality and Disclaimer This presentation (together with oral statements made in connection herewith, the Presentation ) is intended to provide confidential summary information about the business of Electriq Power, Inc. (“we,” “us,” “our,” “Electriq” or the “Company”) with respect to the prop
Slide 3: Confidentiality and Disclaimer (Cont'd)
Confidentiality and Disclaimer (Cont’d) Use of Projections This Presentation contains projected financial information with respect to the Company. Such projected financial information constitutes forward-looking information, is for illustrative purposes only and should not be relied upon as being pr
Slide 4: Confidentiality and Disclaimer (Cont'd)
Confidentiality and Disclaimer (Cont’d) This Presentation is not a substitute for the registration statement or for any other document that the SPAC may file with the SEC in connection with the Potential Business Combination. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE DOCUMENTS FILED WITH
Slide 5: TLG Acquisition One Corp. Overview
TLG Acquisition One Corp. Overview Publicly listed SPAC led by a team of public company operators and domain experts committed to an active partnership with merger partner to drive long-term value Company Overview TLG’s Differentiated Value Proposition • Ticker: NYSE: TLGA • Officers / Directors hav
Slide 6: Table of Contents
Table of Contents 1. Introduction 2. Addressable Market & Strategy 3. Differentiated Solution 4. Financial Overview 5. Summary Strictly Confidential / Not for Redistribution 6
Slide 7: Presenters
Presenters Frank Magnotti Petrina Thomson Michael Lawrie CEO, Electriq CFO, Electriq Founder and CEO, The Lawrie Group • Over 30 years of experience • Business & technology leader, • Founded Comverge, a pioneer leading global finance teams strategist and change agent of virtual power plant and virtu
Slide 8: 1. Introduction
1. Introduction Strictly Confidential / Not for Redistribution 8
Slide 9: Electriq Company Overview
Electriq Company Overview Electriq Power (“Electriq”, or the “Company”) is a provider of intelligent energy storage and management solutions for the residential and small business markets. The Company combines hardware and software integrated energy storage into one offering that provides reliabilit
Slide 10: Financial and Transaction Summary
Financial and Transaction Summary (1) • $122MM of projected revenue for next twelve months (“NTM”) • Positive projected Adjusted EBITDA in NTM • $300MM+ in project financing secured from a major U.S. clean-energy company to support revenue growth • Targeting capital raise of $50MM ✓ Secured $8.5MM i
Slide 11: Where Electriq Fits in the Energy Ecosystem
Where Electriq Fits in the Energy Ecosystem CLOUD Electriq Fleet Management Software Network Operating Center (NOC) CLOUD Cloud technology transmits data between the end user and NOC for data monitoring and user management • Designed to enable optimized fleet CLOUD management and remove strain on th
Slide 12: Significant Momentum Building in the Business
Significant Momentum Building in the Business (1) $300MM+ in Project Financing Differentiated Go to Market Strategy Sustainable Community Sustainable Solutions “Electriq Power announced today it has entered 2022 - into a multi-year agreement with a major U.S. 2023 clean-energy company. The provider
Slide 13: 2. Addressable Market & Strategy
2. Addressable Market & Strategy Strictly Confidential / Not for Redistribution 13
Slide 14: Giant Addressable Market
Giant Addressable Market Residential solar installs are growing rapidly in the U.S., with annual installed capacity forecasted to grow at ~15% (1) which implies a more than 40% CAGR from 2023-2025 for Electriq’s market share U.S. Residential Solar Installed Capacity (GW) Electriq Implied Battery Uni
Slide 15: Regulatory Support of Energy Storage
Regulatory Support of Energy Storage Strong and growing federal and state support for solar and storage industry, buoyed by recent Inflation Reduction Act legislation (1) (2) Federal Support EnergyStorage Targetsby State Maine At the federal level, President Biden signed into law the 400 MW by 2030
Slide 16: Net Energy Metering Regulations Represent a Net Positive for Electriq
Net Energy Metering Regulations Represent a Net Positive for Electriq • Residential Solar Installations • Could have a marginal impact on size of residential solar installations due to lower compensation for excess solar production How Net Metering Works • However, this will be offset by requirement
Slide 17: Go-to-Market Strategy
Go-to-Market Strategy Electriq is focused on three primary go-to-market strategies to capture its large addressable market White Label / (1) Sustainable Community Networks (“SCN”) Sustainable Solutions Distributors • Strategic partners with • Residential customers in municipalities and townships • M
Slide 18: Sustainable Community Networks Case Study: Santa Barbara County
Sustainable Community Networks Case Study: Santa Barbara County Electriq signed an agreement with Santa Barbara County in Fall 2022 to partner with the municipality to provide sustainable and resilient solar microgrids to the historically underserved community For every $1 of battery revenue Electri
Slide 19: Sustainable Community Networks: Major Opportunity in California
Sustainable Community Networks: Major Opportunity in California (1) Addressable Market of over $5.6 billion Totals • Addressable Market: 3,036k • Anticipated Home Signup: 5.0% • Anticipated Home Signup #: 151,803 • Resulting Revenue: $5,617MM Sierra Foothills (PGE) • Addressable Market: 142k • Antic
Slide 20: Sustainable Solutions: Case Studies
Sustainable Solutions: Case Studies (1) ~$38MM of Sustainable Solutions revenue expected through NTM Customer Overview Agreement Engagement Model and Volumes For every $1 of battery revenue Electriq receives in Sustainable • Electriq and Access will collaborate to establish the ecosystem Solutions,
Slide 21: 3. Differentiated Solution
3. Differentiated Solution Strictly Confidential / Not for Redistribution 21
Slide 22: Differentiated and Integrated Solution
Differentiated and Integrated Solution PowerPod 2 Grid Services Fleet Management (Virtual Power Plant) Software Analytics and insights on energy Automated demand response Rechargeable home battery and production, consumption and solutions to reduce implementation home energy management solution stor
Slide 23: Electriq's Differentiated Technology Solution
Electriq’s Differentiated Technology Solution • Embracing industry standards like Open Automated Demand Response (Open ADR) is designed to ensure seamless, secure and reliable integration with a variety of grid services partners • Allows Electriq the ability to monetize and broker storage assets for
Slide 24: Installation Differentiation
Installation Differentiation Electriq is UL certified for factory in the field and recommended by installers for its safety and user friendly interface UL 9540 Certification Quick Installation • UL 9540A Test Method was developed to address safety concerns • PowerPod 2 is believed to be the first re
Slide 25: Electriq's Near-Term Technology Enhancements
1,360 mm 1,270 mm Electriq’s Near-Term Technology Enhancements Hub-of-the-Home System • Acts as a Hub-of-the-Home – standing between utility and homeowner and helping both manage power costs and consumption • Integrates with existing smart appliances and home management solutions (e.g. Google Hub-of
Slide 26: Product Manufacturing Overview
Product Manufacturing Overview Purchase & Shipping • Electriq specifies product requirements and LFP Batteries purchases components; a freight forwarder is utilized to ship (via boat) from China to the U.S. 1 • Over 7,000 units of battery capacity secured • Additional component suppliers being evalu
Slide 27: Supply Chain Sourcing Strategy
Supply Chain Sourcing Strategy Status of Securing Expected Timing Key Components Principal Supplier Second Source Strategy Second Source for Second Source • Contract signed (1) • Ensure availability Battery Packs • UL certification • Deliveries have begun • Reduce cost achieved • For AC coupled: • Q
Slide 28: 4. Financial Overview
4. Financial Overview Strictly Confidential / Not for Redistribution 28
Slide 29: Financial Snapshot
(1)(2)(3) Financial Snapshot Units Sold Revenue (# of Units) ($ in millions) NTM: 5,171 units $122.0 NTM: $122.0 5,171 2,405 $54.0 $52.9 2,149 $38.4 1,637 1,641 1,033 $22.0 $16.0 $7.6 320 348 $3.4 2021 2022 2023 NTM 1st 3M 2nd 3M 3rd 3M 4th 3M 2021 2022 2023 NTM 1st 3M 2nd 3M 3rd 3M 4th 3M Gross Pro
Slide 30: Projected Revenue Mix
Projected Revenue Mix Through upfront hardware sales, Electriq is creating a platform that is designed to generate substantial, recurring high margin software and services revenue Potential Revenue Mix from Sustainable Solutions Projected Shift in Revenue Mix Upfront Installation & Sustainable Susta
Slide 31: Business Models Proven, Market Demand Strong, Scaling in Process
Business Models Proven, Market Demand Strong, Scaling in Process Segment Item Timeframe Status and Next Steps Progress Risk Mitigation Pilot Projects with: Marin Clean Energy (CA), Lessons learned, process mapping, Pilot Phase 2021-2022 Barrio Electrico (Puerto Rico), Access TAB baselines and metric
Slide 32: 5. Transaction Overview
5. Transaction Overview Strictly Confidential / Not for Redistribution 32
Slide 33: Transaction Overview
Transaction Overview Transaction Structure Pro Forma Capitalization and Ownership ($MM) (1) • TLG Acquisition Corp. to merge with Electriq at a pro-forma Enterprise Value of Existing Electriq Shareholders $511 $617MM (5.1x NTM Revenue) Plus: Existing SPAC Shareholders 40 (2) Plus: New Equity (incl.
Slide 34: Identifying Electriq's Comparable Universe
Identifying Electriq’s Comparable Universe Key Criteria for Determining Best Comps Comparable Universe • Leaders in residential battery storage Distributed Solar / Storage & Ancillary Equipment • Large addressable markets • High-growth financial profiles • Disruptive, renewable technologies • Focus
Slide 35: Valuation and Operational Benchmarking
Valuation and Operational Benchmarking EV / NTM Revenue Enterprise Value ($MM) $617 $654,022 $29,024 $16,315 $13,460 $8,395 $7,238 $3,735 $2,416 $1,454 $74 Mean: 5.2x Median: 5.8x 8.7x 8.7x 7.0x 6.7x 6.0x 5.6x 5.1x 3.8x 2.3x 2.0x 1.2x NTM / NTM – 1 Revenue Growth Mean: 42% Median: 29% 938% 156% 63%
Slide 36: Illustrative Common Equity Term Sheet
TLGA / Electriq Power Illustrative Common Equity Term Sheet Issuer • Electriq Power Holding, Inc. (post-transaction parent company) Security • Class A Common Stock Target Investors • New capital commitment / non-redemption for existing investors Price Per Share • $10.00 per share, pre-incentive for
Slide 37: 6. Summary
6. Summary Strictly Confidential / Not for Redistribution 37
Slide 38: Summary Highlights
Summary Highlights (1) • Residential solar install annual capacity forecasted to grow at ~15% in G Gian iant t A add ddress ressable able the U.S. m Market arket (2) • New battery attachment rate of 20% , increasing 2% - 4% each year • Integrated solution seamlessly combines hardware, installation a
Slide 39: Electriq's Leading Management Team
Electriq’s Leading Management Team Supported by a Board of Directors with deep industry and leadership experience • Founded Comverge, a pioneer of virtual power plant and virtual peaking Frank Magnotti capacity contracts with utilities and ISO’s 6 GW of demand response to ~5MM CEO homes; Believed to
Slide 40: 7. Appendix
7. Appendix Strictly Confidential / Not for Redistribution 40
Slide 41: California Net Energy Metering Regulations Update
California Net Energy Metering Regulations Update What is Net Energy Metering? The Push for Reform • Net Energy Metering (“NEM”) is a billing mechanism for California’s investor-owned electric • Some argued that the NEM 2.0 regime was misaligned with California’s grid reliability and utilities where
Slide 42: Income Statement
(1)(2) Income Statement ($ in millions) (4) Revenue FY21(A) FY22(A) NTM System Revenues 3.0 16.0 121.3 Virtual Peaking Capacity Revenues – – 0.4 O&M Revenues – – 0.1 Other Revenues (Tier 3 Support, PPA, Warranty) 0.4 – 0.1 Total Revenues $3.4 $16.0 $122.0 COGS System COGS (2.8) (15.6) (88.0) Virtual
Slide 43: Net Working Capital Estimates
(1) Net Working Capital Estimates Total Inventory Balance ($MM) Receivables Balance ($MM) $41.0 $37.5 $35.6 $5.3 $32.8 $5.7 $3.1 $28.6 $6.8 $4.3 $4.8 $7.4 $22.3 $2.5 $19.3 $6.3 $18.7 $17.9 $0.7 $12.5 $18.8 $18.8 $4.5 $14.1 $17.7 $11.9 $14.9 $7.3 $7.2 $2.3 $0.3 $0.0 $8.0 $8.0 $8.0 $7.9 $5.8 $5.8 $5.2
Slide 44: Multiple Levers for Potential Margin Expansion
Multiple Levers for Potential Margin Expansion Near Term Adjusted EBITDA Margin Expansion Potential Longer Term Adjusted EBITDA Margin Expansion • Scale through operating leverage expected as the company delivers • Potential continued scale expansion through operating leverage as growing unit volume
Slide 45: Risk Factors
Risk Factors • Electriq is a relatively new company with a history of losses, and we expect to incur significant expenses for the foreseeable future. We cannot be certain that we will achieve or sustain profitability. • Electriq’s limited operating history and its rapidly evolving industry make it d
Slide 46: Risk Factors (Cont'd)
Risk Factors (Cont’d) • A significant portion of our purchased components are sourced in a small number of foreign countries, exposing us to additional risks that might not exist if our suppliers were more geographically diversified or were located in the United States. • Increases in costs, disrupt