Microvast Holdings, Inc. · NASDAQ:MVST

Microvast — Q2 2023 Earnings Presentation

19 slides from Microvast's earnings presentation, Aug 7, 2023

  1. Slide 1: Microvast Q2 2023

    4 a microvast © Q2 2023

  2. Slide 2: Disclaimer

    Disclaimer Forward-Looking Statements Non-GAAP Financial Measures This communication contains “forward-looking statements” within the meaning of This presentation contains adjusted gross profit, adjusted operating loss and adjusted net loss, the Private Securities Litigation Reform Act of 1995. Such

  3. Slide 3: Q2 Highlights

    4 a microvast © Q2 HIGHLIGHTS

  4. Slide 4: Overview

    Q2 2023 Overview $75.0M Q2 revenue >6x increase in = $675.9M driven by energy storage 16% increase year over year backlog position business in the U.S. and year over year strong demand in Europe 17.3% adjusted gross margin >80% +7 percentage points 53.5Ah share of backlog year over year with U.S. an

  5. Slide 5: Huzhou 3.1 – It's Ramping!

    Q2 2023 Huzhou 3.1 – Its Ramping! Capacity expansion in ramp-up mode Qualified products now being shipped to customers Volumes increasing in line with customer build plans Contracted Capacity 2GWh Expansion Additional cell, module, and pack capacity began qualified $500M annual revenue potential 75%

  6. Slide 6: Microvast Energy: Our Golden Opportunity

    Q2 2023 Microvast Energy Our Golden Opportunity Cells, modules, and packs All engineering, design, battery produced from our new management software, and Energy Hub manufacturing facility in assembly in Colorado. New Windsor, CO Tennessee = facility has capacity of assembling  Engineering IRA s45X

  7. Slide 7: Continued Upward Trend – Q2 Revenue

    Q2 2023 Continued Upward Trend – Q2 Revenue CHALLENGES Q2 KEY STATS  Unexpected DoE decision to cancel award of grant for separator business $75.0M $675.9M  Huzhou phase 3.1 production ramp up to Revenue Sales Backlog fulfill the significant market demand 16% $271.3M  ESS Assembly shift due to ne

  8. Slide 8: Major Product Developments

    Q2 2023 Major Product Developments Global Commercial Vehicle Market OEM Iveco Bus Crossway E-bus Hybrid Truck 4.5T Hydrogen Truck Vehicle Battery HpCO-53.5Ah MpCO-21Ah MV-B/C Gen 3 pack MpCO-48Ah MpCO-17.5Ah Type MV-I Gen1 pack HpCO-53.5Ah MV-B/C Gen 4 pack MV-B/C Gen 4 pack MV-F0 Gen 3 pack Highlig

  9. Slide 9: Q2 Financials

    4 a microvast © Q2 FINANCIALS

  10. Slide 10: Q2 2023 P&L GAAP Income Statement

    Q2 2023 P&L ($ in thousands) Three-Months Ended June 30 Six-Months Ended June 30 GAAP Income Statement 2022 2023 YoY (%) 2022 2023 YoY (%) Revenue 64,414 74,953 16% 101,082 121,926 21% Cost of revenues (59,573) (63,492) 7% (96,228) (105,607) 10% Gross Profit 4,841 11,461 137% 4,854 16,319 236% Gross

  11. Slide 11: Q2 2023 Adjusted Financials – Non-GAAP

    Q2 2023 Adjusted Financials – Non-GAAP ($ in thousands) Three-Months Ended June 30 Six-Months Ended June 30 Cost of Sales Adjustments 2022 2023 2022 2023 Three-Months Ended June 30 Six-Months Ended June 30 Revenue 64,414 74,953 101,082 121,926 2022 2023 2022 2023 Adjusted Cost of sales (non-GAAP) (5

  12. Slide 12: Q2 2023 Revenue by Region

    Q2 2023 Revenue by Region ($ in thousands) Q2 1H APAC APAC 2022 (Excluding 2023 APAC 2022 APAC 2023 (Excluding (Excluding (Excluding EMEA, 8% USA, 1% China), 38% EMEA, 13% USA, 1% USA, 2% China), 17% China), 24% EMEA, 7% USA, 2% China), 38% EMEA, 16% China, 53% China, 62% China, 53% China, 65% Three

  13. Slide 13: Q2 2023 Financial Highlights

    Q2 2023 Financial Highlights $195.8M $675.9M $57.7M Cash position Backlog Total Capex Solid cash position – $195.8M Record backlog of $675.9M Expansion CAPEX of $52.5M U.S. footprint is cash (includes short-term – underpins high growth for 4GWh capacity additions expanding; growing asset base invest

  14. Slide 14: Financial Resilience

    Financial Resilience  Debt maturity schedule requires minimal Debt Maturation Profile cash flow – $6.5M to be repaid in 2H23 and total to be retired before by YE25 is $33.6M. $50,000 $45,000  All current debt relates to our China $40,000 operations and is non-recourse to our U.S. holding structure

  15. Slide 15: Revenue Visibility

    Revenue Visibility Backlog Turns Potential Into Reality 15

  16. Slide 16: Funding More Capacity

    Funding More Capacity Golden Rule: We only Clarksville Expansions Potential to be Self-Funding add more capacity when we have customer orders $75M ($175M) in place Expected Capacity: $160M $220M Phase 1A = 2 GWh Phase 1B Customer Based on backlog, we Phase 1B = 2 GWh Phase 2 = 4 GWh Pre- expect 2024

  17. Slide 17: The Steps to Profitability

    The Steps to Profitability We Have Levers – Industrialization, Automation, Utilization & Innovation 20%+ (adj. GM) 8.2% (adj. GM) 2022A 2023E 2024E 2025E+ Does not need equity capital 4GWh expansions fully funded from cash + debt + prepayments 17

  18. Slide 18: Outlook

    4 a microvast © OUTLOOK

  19. Slide 19: 2023 Outlook

    2023 Outlook Strong Backlog & Technology Supports Multi-Year High Growth Phase HpCO-53.5Ah cell accounts for 70%-80% $675.9M backlog >80% revenue growth supported by energy storage business in the backlog due to superior from 2022 U.S. and strong demand in Europe technical performance Clarksville, T

Microvast Holdings — Q2 2023 Earnings Presentation on 6ix