Workhorse Group, Inc. · NASDAQ:WKHS
Workhorse — Q1 2022 Earnings Presentation
17 slides from Workhorse's earnings presentation, May 10, 2022
Slide 1: Q1 2022 Earnings Call
Q1 2022 Earnings Call May 10, 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 1st Quarter Financials 2022 Guidance Q&A 3
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: Business Update
Business Update Q1 2022 Operational Highlights Stabilize / Fix / Grow Model Updates on Product Roadmap • C1000 • W56 • W34 • W750/W4CC Aero 5
Slide 6: Process of Stabilization and Growth
Process of Stabilization and Growth 6 P’s: People, Products, Processes, Partners, Politics, Profits Continue to make progress on 3-year business plan Progress to date: Value Creation For ALL Stakeholders Profitably Grow Organically, M&A 5% o Associates o Investors Competitive Cost Structure, Common
Slide 7: Building a Foundation for Growth
Building a Foundation for Growth Delivering on our Strategic Priorities Building out experienced & talented Strengthened engineering, Strengthened balance sheet and executive leadership team: manufacturing and operational increased financial flexibility • Hired a CIO with 35+ years of supply capabil
Slide 8: Workhorse's Facility Readiness
Workhorse’s Facility Readiness Wixom, MI Technical Center Wixom, MI • CV leadership team • Supply Chain team • Vehicle Development & Testing Union City, IN — “The Workhorse Ranch” • 212K ft2 factory renovated for 3Q SORP • 167K ft2 warehouse/factory acquired • 35K ft2 battery storage facility leased
Slide 9: Product Roadmap Update
Product Roadmap Update Significant progress made in Q1 to deliver a family of EV commercial vehicles and chassis across the Class 3-6 segments in ‘22-24 • C1000 (Class 3, limited production) • W750 van & W4CC (Class 4) • W56 (3 versions) • W34 (TBD) Entered into multiyear referral agreement with Cha
Slide 10: Electric Vehicles: Executing the Strategic Product Roadmap
Electric Vehicles: Executing the Strategic Product Roadmap Vehicle Product Details SORP Program Status C1000 Existing Class 3 vehicle Q3 2022 • FMVSS testing design changes finalized • Complete vehicle BOM updated & released • Supplier partners addressing the E-powertrain sub-system issues • On-trac
Slide 11: Aerospace: Furthering Investment & Securing Key Contracts
Aerospace: Furthering Investment & Securing Key Contracts • Final development and testing phase for vehicle launched drones with industry leading payload, range and safe delivery capabilities (7-10 lbs; 10 miles) • Market leading winch capabilities designed in- house with 99.1% testing success rate
Slide 12: Financial Summary Highlights
Financial Summary Highlights First Quarter Three Months Ended March 31, • Sales essentially zero, as 2022 2021 expected Sales, net of returns and allowances $ 14,299 $ 521,060 Cost of sales 3,923,351 6,225,299 • Cost of Sales: Gross loss (3,909,052) (5,704,239) − Decrease in cost of sales was Operat
Slide 13: Financial Summary
Financial Summary Cash $167.0M No Debt $25 – $35M million in cash and on the balance sheet due to 2022 Capex plans remain equivalents on hand at deleveraging exchange between $25 and $35 million March 31, 2022 transaction for facility upgrades across the company, primarily at Union City, IN 13
Slide 14: 2022 Guidance
Financial Summary 2022 Guidance Assuming current supply chain stability/visibility: Our outlook for 2022 reflects our planned progressive ramp in manufacturing, which is backloaded, as we are not expecting to produce any vehicles in the first half of the year Under the newly developed business plans
Slide 15: Q2 Priorities
Q2 Priorities Complete the critical ‘next layer’ Execute product Continue renovations of the organizational staffing of Workhorse, roadmap timelines ‘Workhorse Ranch’ for Q3/Q4 focused on commercial, engineering, product launches supply chain and IT systems following the executive significant hires
Slide 16: Summary
Summary 1) We are building a strong 2) Strategic product roadmap foundation here at Workhorse: focused on ‘last mile delivery’ • Experienced executive is on-track and on-budget leadership team with auto & CV • C1000 build-out by year-end industry backgrounds • W4CC/W750 in 2H22 • Technical expertise
Slide 17: Questions?
Questions? 17