Nu Ride Inc · OTC:NRDE
Nu Ride — DiamondPeak Holdings — SPAC Merger (September 2020)
40 slides from Nu Ride's SPAC merger presentation, Sep 18, 2020
Slide 1: Virtual Analyst Event September 17, 2020
1 Virtual Analyst Event September 17, 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: Overview
Q@ LORDSTOWN. Overview
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: World-Class Proven Automotive Executive Team
7 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 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: Revolutionary Vehicle for an Underserved Market
9 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 10: Secular Tailwinds for both EVs and Trucks
10 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 11: Profitable Target Segment in an Attractive Market
11 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 12: 5Y TCO Comparison
12 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 13: Unique, Efficient, Purpose-Built Design
13 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 14: Unique, Efficient, Purpose-Built Design: Engineering Design Highlights
14 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 15: Lordstown Endurance vs. Key Competitors
15 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 ~$67,500¹ TBD ~
Slide 16: Strategic Relationships with Key Industry Leaders
16 “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 17: Critical Start-up Support from GM
17 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 18: Clear Path to be First to Market: State of the Art Manufacturing Plant
18 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 ~$120 Million
Slide 19: Modest Engineering and Retooling Needed to Begin Production
19 Clear Path to be First to Market Modest Engineering and Retooling Needed to Begin Production Source: Management estimates Based on the Excellent Condition of the Plant and Equipment at the Lordstown Complex, LMC Projects ~$ 120 Million of Investment to Retool the Equipment for Full Production Rea
Slide 20: Clear Path to be First to Market
20 Lordstown has received ~40k pre - orders for the Endurance despite the fact that production is not slated to begin until 2H21, representing potential revenue sufficient to cover production into 2023 Clear Path to be First to Market Working Prototype Substantially Complete with Virtual Crash Testi
Slide 21: Battery Approach Supports Speed to Market
21 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 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: Unit Cost Breakdown
25 Battery $15k Chassis $9k Body $9k Hub Motors $5k Battery $17k Chassis $10k Body $10k Hub Motors $5k Unit Cost Breakdown Roughly 2k components Top 10 components represent ~90% of anticipated costs Secured deal with GM for access to supplier network of non - customer facing parts such as airbags, s
Slide 26: Pro Forma Equity Ownership
26 Pro Forma Equity Ownership US$ 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: QLORDSTOWN.
QLORDSTOWN.
Slide 28: Additional Detail
Q@LORDSTOWN. Additional Detail
Slide 29: Enterprise Value Benchmarking
29 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 30: Valuation Sensitivity Analysis
30 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 31: 7,500 lbs. Towing Capacity 5.5 Sec. – MPH Time 4,200 lbs. Curb Weight ~250
31 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 32: Key Features: Purposefully Designed for Fleets
32 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 33: Alignment with Key Service Providers
33 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 34: Vote of Confidence from Holman Enterprises
34 ● 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 35: Vehicle Design, Validation, and Production Plan
35 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 36: Production Strategy and Plans
36 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 37: Summary Investment Thesis
37 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 38: Audited Financials: Income Statement
38 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) $(7
Slide 39: Audited Financials: Balance Sheet
39 Audited Financials Balance Sheet | 31 December 2019 ($ 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 $33,546 Current liabil
Slide 40: Audited Financials: Cash Flow Statement
40 Audited Financials Cash Flow Statement | 8 Months Ended 31 December 2019 ($ 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