Nu Ride Inc · OTC:NRDE
Nu Ride — DiamondPeak Holdings — SPAC Merger (August 2020)
39 slides from Nu Ride's SPAC merger presentation, Aug 3, 2020
Slide 1: Investor Materials August 2020
1 Investor Materials August 2020
Slide 2: Disclaimer
2 Disclaimer This presentation is being furnished solely for the purpose of considering a potential transaction involving DiamondPeak Holdings Corp . (“DiamondPeak”) and Lordstown Motors Corporation (the “Company”) . By accepting this presentation, the recipient acknowledges and agrees that all of t
Slide 3: Disclaimer
3 Disclaimer Neither DiamondPeak nor the Company makes any representation or warranty, express or implied, as to the accuracy or completeness of this document or any other information (whether written or oral) that has been or will be provided to you . Nothing contained herein or in any other oral o
Slide 4: Transaction Summary
4 Transaction Summary Steve Burns CEO Rich Schmidt Chief Production Officer DiamondPeak views Lordstown as a unique opportunity to invest in a revolutionary vehicle manufacturing platform with a proven management team David Hamamoto Chairman and CEO Lordstown Team DiamondPeak Offering Size ● Diamond
Slide 5: Revolutionary Vehicle for an Underserved Market
5 Revolutionary Vehicle for an Underserved Market Value Proposition to Fleet Operators ● Revolutionary – Proprietary hub motor technology is unique in the market and provides a robust, safe and stable ride ● Simple – Four drivetrain parts, one on each wheel, vs. thousands for a comparable combustion
Slide 6: Startup Culture with the Assets of an Established Manufacturer
6 Startup Culture with the Assets of an Established Manufacturer Leveraging proven components and innovative technology to offer the first full - size electric pickup truck Unique and Efficient Design World - Class Executive Team Proven track record of successfully developing and launching automobil
Slide 7: Lordstown
QLORDSTOWN.
Slide 8: Key Investment Highlights
8 Key Investment Highlights Strategic Relationships with Key Industry Leaders Clear Path to be First to Market Unique, Efficient, Purpose - Built Design ● ~60% of vehicles sold estimated to be fully electric by 2040 vs. ~2% today ● Light trucks have enjoyed secular growth and make up ~75% of US ligh
Slide 9: Secular Tailwinds for both EVs and Trucks
9 Secular Tailwinds for both EVs and Trucks ● Continued trend of light truck dominance within the auto industry supports Lordstown’s mission ● Light trucks provide the ideal platform for Lordstown’s EV and hub motor technology Source: Public sources, third - party analysis, and management estimates.
Slide 10: Profitable Target Segment in an Attractive Market
10 Profitable Target Segment in an Attractive Market ● Pickup trucks currently stand as the most profitable segment of the auto industry ● Highly attractive fleet market: ● Avoids complex retail sales network ● Large order volumes with sticky contracts ● Highly underserved market with no EV focused
Slide 11: 5Y TCO Comparison
11 5Y TCO Comparison 2 LMC Endurance Ford F - 150 Initial Cost $ 52,500 $ 51,775 Price Per Unit $ 0.13 Per kWh $ 2.57 Per Gallon Fuel Cost $ 5,200 $ 14,280 Maintenance Cost $ 1,800 $ 5,125 Fed. Tax Credit ($ 7,500) N/A Total $ 52,000 $ 71,180 Difference $19,180 20% Traditional ICE 80% Endurance Prof
Slide 12: Unique, Efficient, Purpose-Built Design
12 Unique, Efficient, Purpose - Built Design Battery Pack Hub Motor Crash - Optimized Frame & Body Suspension for Hub Motors Inverters LMC Hub Motors • No drivetrain components • Regenerative braking in every wheel • Differentiated traction and performance • High maneuverability for cities & constru
Slide 13: Unique, Efficient, Purpose-Built Design: Engineering Highlights
13 Battery Cells Hub Motors Metal Stampings Chassis Non - Customer Facing Components 1 General Assembly Paint Line Stamping & Body Shop Vehicle Component Suppliers Plant Integrators Unique, Efficient, Purpose - Built Design Engineering Design Highlights — Skateboard chassis design — GM components¹:
Slide 14: Clear Lane for Endurance to Launch in an Underserved Market
14 Unique, Efficient, Purpose - Built Design Clear Lane for Endurance to Launch in an Underserved Market Lordstown Endurance vs. Key Competitors Launch Timing 2021 2021 2021 N/A 2022 2022 Commercial Fleet Focus? x ? Full - Size Pickup? x x x Expected Price $45,000¹ ~$67,500¹ ~$69,900 ~
Slide 15: Strategic Relationships with Key Industry Leaders
15 “Lordstown Motors’ proposal to convert the former GM assembly plant into a state - of - the - art electric vehicle manufacturing facility is an excellent example of why Congress created this particular loan program (ATVM). Not only will this funding jumpstart our local economy now, but it will po
Slide 16: Critical Start-up Support from GM
16 Strategic Relationships with Key Industry Leaders Critical Start - up Support from GM P The Lordstown Complex transferred in a near production - ready state and capable of large annual production volume with only modest incremental investment A Relationship Structured to Enable Success P Transiti
Slide 17: State of the Art Manufacturing Plant
17 Clear Path to be First to Market State of the Art Manufacturing Plant Unprecedented Opportunity to Leverage an Existing Fully Equipped Plant Est. Annual Vehicle Capacity 6 0 0,000 + Vehicles Plant Size 6.2M Square Feet Lordstown, OH Solar Energy Supported Costs to Reconfigure Plant ~$120 Million
Slide 18: Modest Engineering and Retooling Needed to Begin Production
18 Clear Path to be First to Market Modest Engineering and Retooling Needed to Begin Production Source: Management estimates Based on the Excellent Condition of the Plant and Equipment at the Lordstown Complex, LMC Projects ~$ 120 Million of Investment to Retool the Equipment for Full Production Rea
Slide 19: Clear Path to be First to Market
19 Lordstown has already received ~27k orders ( average order size of ~300 trucks) before the first vehicle has been produced, representing potential revenue sufficient to cover 2021 production and into 2022 Clear Path to be First to Market Working Prototype Substantially Complete with Virtual C
Slide 20: Battery Approach Supports Speed to Market
20 Clear Path to be First to Market Battery Approach Supports Speed to Market • Designed to last 1000 charge cycles, with each charge offering ~250 miles • Offers total battery capacity of 109kWh for the base version • Offers strong modularity based on a double deck skateboard • Protected by reinfor
Slide 21: World-Class Proven Automotive Executive Team
21 World - Class Proven Automotive Executive Team Lordstown’s Story Begins in 2007 W ith t he F ounding of Workhorse by Visionary Steve Burns Julio Rodriguez Chief Financial Officer 30+ Years of Experience C oordinator of multiple successful capital raises financing the development and production of
Slide 22: Financial Information
QLORDSTOWN. Financial Information
Slide 23: Capital Raise Proceeds Expected to be Sufficient to Achieve Cash Flow Positive
23 Capital Raise Proceeds Expected to be Sufficient to Achieve Cash Flow Positive $ 675 mm Cash Proceeds Cash proceeds will be largely directed towards CapEx, R&D, and G&A expenses ~$135mm Capital Expenditures Plant Retooling of ~$120mm, BoM Retooling of ~$15mm to Gear up for Production ~$90mm R&D P
Slide 24: Financial Overview
24 Financial Overview 1 Assumes pickup truck market of ~3mm units Summary Financials Commentary ● No additional capital requirements expected between PIPE and going to market, achieving positive cash - flow ● Reflects market share of ~3.5% by 2024E 1 ● Lordstown’s first - mover advantage and innovat
Slide 25: Lordstown Endurance BoM Unit Cost Breakdown
25 Battery $15k Chassis $9k Body $9k Hub Motors $5k Battery $17k Chassis $10k Body $10k Hub Motors $5k Unit Cost Breakdown Roughly 2k components Top 10 components represent ~90% of anticipated costs Secured deal with GM for access to supplier network of non - customer facing parts such as airbags, s
Slide 26: Pro Forma Equity Ownership, Sources and Uses
26 Pro Forma Equity Ownership US$ in Millions, Unless Otherwise Stated Cash Sources and Uses ● Proceeds for the transaction will be used for development and commercialization of Lordstown’s Endurance vehicle ● GM receives $50mm equity position in exchange for in - kind contributions ● Plant assets ●
Slide 27: Enterprise Value Benchmarking
27 11.8 x 11.5 x 8.3 x 8.2 x 44.5 x 2023E 2024E NM 49.4 x Enterprise Value Benchmarking 2021E Established OEMs Enterprise Value / EBITDA Enterprise Value / Sales 2021E Established OEMs Source: Market data as of 31 - Jul - 2020 . Lordstown , Fisker , Hyliion, and Nikola EBITDA and sales per managemen
Slide 28: Valuation Sensitivity Analysis
28 Pro-Forma EV 8.0x-10.0x 2024E EBITDA +/- 25.0 % 2024E EBITDA Sensitivity Transaction Value Priced at a Discount Enterprise Value Sensitivity Transaction Value Valuation Sensitivity Analysis $965mm 1.6x 2024E EBITDA $3.8bn $3.0bn Pro Forma Enterprise Value 8.0 - 10.0x 2024E EBITDA 9.0x +/ - 25% 20
Slide 29: Endurance Key Specifications
29 7,500 lbs. Towing Capacity 5.5 Sec. 0 – 60 MPH Time 4,200 lbs. Curb Weight ~250 mi. Range Per Charge 500% Improved Fuel Economy, Equivalent to 75 mpg ~65% Est. Reduction in Annual Maintenance Costs vs. Similar ICE Pickup Trucks 2021 Expected Start of Production $45,000 Purchase Price 1 1 Inclusiv
Slide 30: Additional Detail
Eo QLORDSTOWN. Additional Detail
Slide 31: Key Features: Purposefully Designed for Fleets
31 Key Features: Purposefully Designed for Fleets Leveraging LMC’s Fleet Market Experience to Offer the Most Capable Fleet Vehicle Ever Produced On - Board Plug - In Power Outlets Allows users to plug in tools, charge the batteries of other tools, etc . Durable Interior Trim Package Durable interior
Slide 32: Alignment with Key Service Providers
32 Strategic Relationships with Key Industry Leaders Alignment with Key Service Providers Will Enable LMC to Efficiently and Effectively Serve Fleet Operators and Other Customers Charging Infrastructure Fleet operators typically bring their vehicles back to a central location each day, optimal for c
Slide 33: Vote of Confidence from Holman Enterprises
33 ● Indicative interest for 12,500 Endurance trucks spread over 3 years ● Co - market the Endurance to prospects and clients of ARI ● Provide fleet management services for Endurance trucks, including the vehicle supply chain ● Provide technical assistance and advice to Lordstown; specialized design
Slide 34: Vehicle Design, Validation, and Production Plan
34 Beta Prototype Unveiled Jun 25, 2020 Projecting to Begin Full Production by 2021 2020 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Includes first vehicles to be manufactured at Lordstown with the Endurance body and componentry Beta Vehicles Vehicles used to test, validate, and finalize enginee
Slide 35: Production Strategy and Plans
35 Key Work Streams Q1‘20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 & Beyond Analyze Scope & Request Proposals Place Initial Equipment Orders Equipment Installation Equipment Testing on Betas Pre - Production Runs Full Production Confirmation of Targets Production Strategy and Plans The Lordstown Complex
Slide 36: Summary Investment Thesis
36 Summary Investment Thesis Unique, Efficient, Purpose - Built Design Clear Path to be First to Market Secular Tailwinds for both EVs and Trucks Strategic Relationships with Key Industry Leaders Profitable Target Segment in an Attractive Market World - Class Proven Automotive Executive Team Lordsto
Slide 37: Audited Financials: Income Statement
37 Audited Financials Income Statement | 8 Months Ended 31 December 2019 ($ in ‘000) Source: Lordstown financials Income Statement 31-Dec-19 Revenue - Selling & administrative expenses $1,638 Research & development 5,851 Operating profit / (loss) $(7,489) Income tax expense - Net profit / (loss) $(7
Slide 38: Audited Financials: Balance Sheet
38 Audited Financials Balance Sheet | 31 December 2019 ($ in ‘000) Source: Lordstown financials Balance Sheet 31-Dec-19 Current assets: Cash and cash equivalents $2,159 Property & equipment: Land, buildings & equipment 20,276 Other assets: Intangible assets 11,111 Total assets $33,546 Current liabil
Slide 39: Audited Financials: Cash Flow Statement
39 Audited Financials Cash Flow Statement | 8 Months Ended 31 December 2019 ($ in ‘000) Source: Lordstown financials Cash Flow Statement 31-Dec-19 Net income / (loss) $(7,489) Adjustments to reconcile net loss to net cash: Stock compensation 71 Accounts payable and accrued expenses 2,216 Cash flows