Slide 1: Q2 2022 Earnings Call
Q2 2022 Earnings Call August 9,2022
Slide 2: Today's Presenters
Today’s Presenters Rick Dauch Bob Ginnan Stan March CEO CFO Vice President, Corporate Development 26 years automotive industry experience 21 plus years of senior finance and 25 years executive experience across leadership experience multiple industrial sectors 14 years serving in CEO roles Refined c
Slide 3: Agenda
Agenda Introduction Business Update 2nd Quarter Financials 2022 Guidance Q&A 3
Slide 4: Disclaimer
Disclaimer Cautionary Note Regarding Forward Looking Statements This press release contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Refo
Slide 5: Key Accomplishments Over the Past Year
Key Accomplishments Over the Past Year Reshaped & Enhanced Leadership Team Refurbished & Expanded HQ and • Corporate Staff: CFO; CIO; CHRO; General Counsel; VP, CD Manufacturing Complex • Operations Team: VP, MFG; VP, Supply Chain; Director, Quality; • New Corporate HQ (3x space & parking) Director-
Slide 6: Organizational Update
Organizational Update • Building out talented leadership team, highly qualified engineers and experienced operating professionals: – Principal Engineers (SMEs) – Operations & Supply Chain – Finance, IT, Legal staffs • 2H22 focus on staffing commercial and aftermarket teams - VP, Sales & Marketing, C
Slide 7: Product Portfolio Plan Update
Product Portfolio Plan Update C1000 W4 CC CL3, 3500-lb. payload, 100-mile range CL4, 5000-lb. payload, 150-mile range • Redesign complete & final testing by 8/15 • Trial chassis shipments delivered • Retrofit of vehicles underway • Assembly layout complete • Return to customers in Q3 • Production to
Slide 8: Manufacturing Complex Readiness
Manufacturing Complex Readiness $18-20M in Investments - Union City Site Readiness Plans (‘22-23) Assembly Ready Upgrade complete by Dynamometer install Q1 ‘23 10/1/22 Workhorse Upgrades Ranch complete by 10/1/22 Warehouse / Factory 163K ft2 Future Vehicle Storage Lot Workhorse Factory 212K ft2 Cust
Slide 9: Manufacturing Plant & Systems Readiness
Manufacturing Plant & Systems Readiness Union City MFG Complex is ‘assembly ready’ in Q3 2022 • Open, flexible manufacturing space with room to grow • “Customer Ready” housekeeping and EHS standards • Climate-controlled battery storage facility is separate from material storage and production for ad
Slide 10: Contract Manufacturing Awards & Opportunities
Contract Manufacturing Awards & Opportunities TROPOS Technologies partnership • Contract manufacturing agreement signed for final assembly in the US market • SORP 4Q22 at Union City, IN • Volume approx. 2000 units per year once ramp-up complete, ability to increase to meet needs Additional CM opport
Slide 11: Aerospace Update
Aerospace Update Moved to a New Facility in Q2 40,000 ft2 manufacturing/stores area 35,000 ft2 floor space 11
Slide 12: UAV Market Growth Forecasts
mercial drone markets are growing tered and 188,395 remote pilots cer- next 10 years the market will total rapidly as UAS proves its worth tified as of early August 2020. An- $108 billion. across several different fields. other 1.2 million recreational drones Although the consumer systems Involvemen
Slide 13: Commercial HORSEFLYs in Beta Test
Commercial HORSEFLYs in Beta Test Key Technical Attributes: • Autonomous controls • Improved industrial cowling • Parachute recovery system (PRS) • 30’ winch delivery system • 10-lb payload (industry leading) • 10-mile radius Customer demos in Q3 13
Slide 14: Financial Summary Highlights
Financial Summary Highlights Second Quarter 2022 Unaudited Results Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 • Sales essentially zero, as Sales, net of returns and allowances $ 12,555 $ 1,202,876 $ 26,854 $ 1,723,936 expected Cost of sales 3,020,204 14,796,130 6,943,5
Slide 15: Balance Sheet Highlights
Balance Sheet Highlights Second Quarter 2022 Unaudited Results • No Debt June 30, 2022 December 31, 2021 Assets Current assets: • $140 million cash balance Cash and cash equivalents $ 140,060,575 $ 201,647,394 Accounts and lease receivable, less allowance for credit losses of zero as of June 30, 202
Slide 16: Financial Summary
Financial Summary Cash $140.1M No Debt $15 – $25M million in cash and on the balance sheet due 2022 Capex plans revised equivalents on hand at to deleveraging exchange slightly downward for facility June 30, 2022 transaction upgrades, primarily at Union City, IN due to timing and more efficient use
Slide 17: 2022 Guidance
Financial Summary 2022 Guidance Assuming current supply chain lead times remain unchanged: Workhorse now expects to manufacture and sell between 150-250 vehicles and generate between $15-25 million in revenue in 2022. 17
Slide 18: Q3 Priorities
Q3 Priorities Complete the critical ‘next layer’ Continue to execute product Start production at ‘Workhorse Ranch’ organizational staffing of Workhorse, roadmaps on-time and on-budget focused on commercial and (CV and Aero) Prototype production at Aero aftermarket teams Transfer and install test & v
Slide 19: Summary
Summary 1) We are building a strong 2) Strategic product roadmap foundation here at Workhorse: focused on ‘last mile delivery’ • Experienced & capable executive is on-track and on-budget for leadership team with auto, CV, ‘22-24 introductions Aero industry backgrounds • C1000 build-out by year-end •
Slide 20: Questions?
Questions? 20