Slide 1: Q2 2024 Earnings Call
Q2 2024 Earnings Call August 20, 2024 © Copyright 2024 Workhorse. Confidential & Proprietary | 1
Slide 2: Today’s Presenters
Today’s Presenters Rick Dauch Bob Ginnan Stan March CEO CFO Vice President, Corporate Development • 28 years automotive industry • 23+ years of senior finance and • 27 years executive experience across experience leadership experience multiple industrial sectors • 16 years serving in CEO roles • Ref
Slide 3: Agenda
Agenda Introduction Business Update Q2 2024 Financials Near-Term Priorities Q&A
Slide 4: Disclaimer
Disclaimer Cautionary Note Regarding Forward-Looking Statements The discussions in this presentation contain 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 Securitie
Slide 5: Key Recent Accomplishments
Key Recent Accomplishments Executing on Product Roadmap Expanding Commercial Presence • Received purchase order for 141 W4 CC cab chassis units from Kingsburg Truck • Secured Sourcewell contract; GSA application submitted Sales, shipped initial tranche of vehicles, HVIP voucher approval & audit proc
Slide 6: Zero-Emission EV Drivers and Market Opportunity
Zero-Emission EV Drivers and Market Opportunity ▪ Paris Greenhouse Gas Accord – The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 Parties at the UN Climate Change Conference (COP21) in Paris, France, on December 12, 2015. It entered into force on
Slide 7: Corporate ESG Endorsements & Commitments
Corporate ESG Endorsements & Commitments Public commitments to transition to zero emissions by largest last-mile fleets USPS: “By 2030, the Postal Service seeks to reduce emissions from fuel and electricity by 40 percent” UPS: “We’ve set a clear roadmap to reach carbon neutrality by 2050, and we’re
Slide 8: California’s ‘Carrot’ Needs a ‘Stick’
California’s ‘Carrot’ Needs a ‘Stick’ Enforcement of the Advanced Clean Fleet regulations is critical to conversion to EV Total New Class 4-6 Truck Registrations in California 2021-2023 vs. • Private fleet operators continue to HVIP Vouchers Redeemed take a “wait and see” approach in CA 12,000 2.5%
Slide 9: Stables by Workhorse Lessons
Insights from Electrifying Stables by Workhorse FedEx Ground Fleet in ‘23-24 WIN-WIN for all stakeholders – Corporate Sustainability and long-term financial advantages are not Takeaways: mutually exclusive – the right approach, plan, vehicles, and execution can deliver Up-front investment translates
Slide 10: Executing on Our Product Roadmap
Executing on Our Product Roadmap W4 CC W750 Step Van W56 Stripped Chassis W56 Step Van CL4, 7,000-lb. payload, CL4, 5000-lb. payload, CL5-6, 13,500-lb. payload CL5-6, 10,000-lb. payload, 150-mile range 150-mile range at 23,000 lbs. GVW 150- to 170-mile range at GVW ▪ Received KTS purchase order for
Slide 11: Expanding Our Product Offerings
Expanding Our Product Offerings W56 Extended Wheelbase SV ▪ Builds upon the success of the 178-inch wheelbase step van ▪ 208-inch wheelbase vehicle will be available in both strip chassis and step van variants ▪ 22-feet long with cargo volume of 1,200 cubic feet ▪ Added over 100 refinements to this
Slide 12: Expanding Commercial Network
Expanding Commercial Network ▪ To help sell its product, Workhorse has established a strong, nationwide certified dealer network with service, targeting dealer locations in key commercial EV markets ▪ Workhorse has experienced strong fleet and dealer interest in its W56 vehicles, most recently addin
Slide 13: Protecting Our Financial Runway
Protecting Our Financial Runway Continued Actions to Preserve Cash and Extend Financial Runway ▪ Reduced cash burn rate from approx. $10 million to less than $3.5 million per month in the last six months ▪ Cost savings through significant reduction in workforce, deferral of cash compensation for exe
Slide 14: Financial Summary Highlights
Revenue Sales, net of returns and allowances for the three months ended June 30, 2024 and 2023 were $0.8 million and $4.0 million, respectively. The decrease in sales was primarily due to lower W4 CC vehicle sales Financial Summary Highlights compared with the same period a year ago, which was parti
Slide 15: Balance Sheet Highlights
Balance Sheet Highlights Cash balance Second Quarter 2024 Unaudited Results $5.3 Million Capital Spending $3.8 million year to date Financing Transaction Financing agreement provides additional closings of up to $112.7 million in aggregate principal amount of notes and warrants to support the Compan
Slide 16: Near-Term Priorities
Near-Term Priorities Advance Product Roadmaps Strengthen Financial Position ▪ Continue product demos/discussions with key fleets ▪ Maintain lower operating cost environment until sales develop ▪ Support dealer efforts with private and gov’t fleets ▪ Maintain supplier relationships and capability ▪ S
Slide 17: Questions?
Questions?