Quantumscape Corporation · NASDAQ:QS

Quantumscape — SPAC Merger (September 2020)

37 slides from Quantumscape's SPAC merger presentation, Sep 3, 2020

  1. Slide 1: Investor Presentation September 2020

    Investor Presentation September 2020 EXHIBIT 99.3

  2. Slide 2: Disclaimer

    This presentation contains proprietary and confidential information of QuantumScape Corporation, and the entire content should be considered “Confidential Information.” This presentation is made solely for informational purposes, and no representation or warranty, express or implied, is made by Quan

  3. Slide 3: Transaction Overview

    Transaction Overview Founded in 2010, QuantumScape Corporation has developed the only lithium-metal solid-state battery with automotive OEM validation Kensington Capital Acquisition Corporation (NYSE: KCAC.U) is an automotive-related special purpose acquisition company with $230mm cash held in trust

  4. Slide 4: QuantumScape: Redefining Batteries

    QuantumScape has the only lithium-metal solid-state battery with automotive OEM validation QuantumScape: Redefining Batteries Once in a century shift to electrified vehicles Solid-state batteries are the key to making this shift

  5. Slide 5: Visionary Management Team

    Visionary Management Team Select Management Team Members Jay Underwood Vice President, Sales Mike McCarthy Chief Legal Officer / Head of Corp. Dev. Dr. Tim Holme Founder / Chief Technology Officer Dr. Mohit Singh Chief Development Officer Jagdeep Singh Founder / CEO (Chairman) Prof. Fritz Prinz Foun

  6. Slide 6: Board Members Backed by Leading Investors

    Jürgen Leohold Kensington Capital Acquisition Corp Management and board with extensive public company experience and operating capabilities in the automotive and automotive-related sector Relevant automotive experience to optimize program launches and capital deployment while facilitating commercial

  7. Slide 7: $802mm of Committed Capital; 10 Years of R&D Investment

    $802mm of Committed Capital¹ Over $300mm spent on development to date 10 Years of R&D Investment Founded in 2010 200+ Employees World Class Next-gen Battery Development Team 200+ Patents² Materials, Use and Process Extensive Trade Secrets Processes and Intellectual Property Pro forma for $388mm Seri

  8. Slide 8: Lithium-Metal: The Next Generation of Battery

    Lithium-Metal: The Next Generation of Battery Lead Acid 1970s 1980s 1990s-Today Nickel Metal Hydride Lithium-Ion Lithium-Metal QuantumScape Source: Cano et al (2018). Nature Energy, 3(4), 279–289; Ovshinsky Science 260 (1993) 176; Ding et al, Electrochem. Energ. Rev. 2, 1–28 (2019); Management analy

  9. Slide 9: Massive Untapped Demand If Batteries Meet Mass Market Requirements

    Source: International Organization of Motor Vehicle Manufacturers (OICA); IEA Based on 2019 global vehicle production; includes passenger vehicles, heavy trucks, buses and coaches (OICA). Battery opportunity assumes $100 / KWh and 50KWh+ battery pack. % of Global Car Stock in 2019 (IEA). 2% PHEV + B

  10. Slide 10: Conventional Lithium-Ion Cell Energy Density Has Hit a Ceiling

    Source: Placke et al. J. Solid State Electrochem., 21(7), 1939–1964; Quinn et al, Journal of The Electrochemical Society, 165 (14) A3284-A3291 (2018); Management analysis Highest energy density in mass market EVs today. Conventional Lithium-Ion Cell Energy Density Has Hit a Ceiling Need for Disrupti

  11. Slide 11: Conventional Lithium-Ion Batteries Have Reached Their Physical Limit

    Performance Limited by Graphite (Carbon) / Silicon Anode Chemistry Cathode current collector Anode current collector Graphite / Silicon Anode Liquid electrolyte Liquid electrolyte Porous separator Wound cylindrical cell (e.g. 21700) Cathode active material Conventional Lithium-Ion Batteries Have Rea

  12. Slide 12: Lithium-Metal Anode is Required

    Source: Andre et al, J Mater Chem A, (2015) 6709 Lithium-Metal Anode is Required for High Energy Density Cathode Material Lithium-Metal Anode Graphite / Silicon Anode Graphite Anode Energy density of conventional anode limited Lithium-metal anode necessary to achieve high energy density Lithium-meta

  13. Slide 13: QuantumScape Has The Solution

    Conventional Liquid Battery QuantumScape Solid-State Battery QuantumScape Has The Solution Rethinking the Battery Graphite / Silicon Anode Charged Lithium Metal Anode Solid-State Separator Catholyte Cathode Current Collector Anode Current Collector Discharged Lithium-Metal (as manufactured) Cathode

  14. Slide 14: QuantumScape's Value Proposition

    Energy / Capacity: Significantly increases volumetric and gravimetric energy density Eliminates graphite/silicon anode host material ü Fast Charging: Enables <15 minute fast charge (0 à 80%) Eliminates lithium diffusion bottleneck in anode host material ü Cost: Lower cost Eliminates anode host mater

  15. Slide 15: QuantumScape Technology is Lower Cost

    Elimination of anode material Reduction in manufacturing costs No anode manufacturing Formation / aging substantially reduced Excludes system level benefits from lower weight / volume QuantumScape benefits from industry wide cost declines on standard components (e.g. Cathode) Anode material cost Ano

  16. Slide 16: Ceramic Solid-State Separator Significant Technology Advantage

    Ceramic Solid-State Separator Significant Technology Advantage Single Layer Pouch Cell Protected by ~200 Patents¹ and ~100 Trade Secrets Includes patents and patent applications.

  17. Slide 17: Revolutionary Technology Removes the Tradeoffs

    Today’s Lithium-Ion % Improvement System Volume 350 L (260 Wh/L) 350 L (470 Wh/L) 81% (Energy Density) System Energy 90 kWh 164 kWh 82% Range 400 km (250 Miles) 730 km (450 Miles) 82% Charge 22.5-min Fast Charge (5% à 80%) 15-min Fast Charge (0% à 80%) 33%+ Power 420kW 650kW 55% Safety Organic Elect

  18. Slide 18: Volkswagen Testing of QuantumScape Cells

    “Volkswagen has already tested QuantumScape early-stage solid-state battery sample cells in Germany running at automotive rates of power.” –Volkswagen Group Press Release

  19. Slide 19: Volkswagen Committed to QuantumScape Technology

    Volkswagen Group Overview ~11 million vehicles produced in FY2019 ~$38 billion investment in electric mobility by 2024 Plans to launch ~70 electric vehicle models and produce 22 million electric vehicles by 2029 Volkswagen Partners with QuantumScape Corporate funding commitment of $300+ million Stro

  20. Slide 20: QuantumScape is a Step-Function Ahead of Conventional Cells

    NMC2 NCA3 LFP1 Commercialized Chemistries NCA or Ni-rich NMC + Silicon / Carbon Anode Energy-optimized Cell Designs QuantumScape is a Step-Function Ahead of Conventional Cells Source: Argonne National Laboratory; Management estimates 1 Lithium, iron, and phosphate 2 Nickel, manganese, and cobalt 3 N

  21. Slide 21: Established Manufacturing Processes and Supply Chains

    Established Manufacturing Processes and Supply Chains Unique processes use equipment that is already used at scale in battery or ceramics industries Equipment designed and manufactured by world’s leading vendors Materials have robust and well-established supply chains served by diversified chemical,

  22. Slide 22: QuantumScape Company Timeline and Key Milestones

    QuantumScape Company Timeline and Key Milestones In 10 years, QuantumScape Executed on Key Technological and Operational Breakthroughs 2010/2011 QuantumScape founded and spun out of Stanford by Jagdeep Singh, Professor Fritz Prinz and Dr. Tim Holme 2013 Separator materials exploration in rapid 12 ho

  23. Slide 23: Validated Technology: Next Steps

    Increasing Separator Yield Multi-Layer Cell High-Volume Battery Manufacturing Validated Technology: Next Steps Scaling The Product

  24. Slide 24: QuantumScape: Driving Environmental Sustainability

    QuantumScape: Driving Environmental Sustainability Climate Change Responsible Production Energy Efficiency Reducing global CO2 emissions Designed around abundant resources Enables clean energy sources Key ESG Themes

  25. Slide 25: QuantumScape Unlocks Massive Global Opportunity

    Source: International Organization of Motor Vehicle Manufacturers (OICA); IEA Based on 2019 global vehicle production; includes passenger vehicles, heavy trucks, buses and coaches (OICA). Battery opportunity assumes $100 / KWh and 50KWh+ battery pack 90M+ vehicles produced annually represents in exc

  26. Slide 26: Manufacturing Scale-Up Timeline

    2021 2022 2023 2024 2025 2026 Manufacturing Scale-Up Timeline 1GWh Factory 20GWh Expansion Product Site Selection / Design / Construction Planning / Engineering Site Selection / Design / Construction Development / Validation OEM Sample Testing Planning / Engineering Equipment Install Equipment Insta

  27. Slide 27: QuantumScape Factory Economics (QS-1, 20GWh)

    QuantumScape Factory Economics (QS-1, 20GWh) Capex + Start-up Costs¹: $1.6B ~70% Cell Factory ~30% Separator Factory Equity Need²: ~$500M Note: Assumes 5% annual price and cost declines. Chart reflects 100% of factory financials. Includes costs for planning, FAT / SAT, and start-up; excludes mainten

  28. Slide 28: Summary Financials

    $ in millions 2022E 2023E 2024E 2025E 2026E 2027E 2028E Manufacturing capacity Total Production Capacity (GWh) 0 0 0.25 0.75 6 46 91 QS-1 Pilot (1 GWh) 0 0 0.25 0.75 1 1 1 QS-1 Expansion (20 GWh) 0 0 0 0 5 15 20 QS-2 0 0 0 0 0 30 70 Income Statement Revenue - - $ 14 $ 39 $ 275 $ 3,210 $ 6,439 % Grow

  29. Slide 29: Transaction Overview

    Transaction Overview Sources Pro Forma Valuation Uses Illustrative Pro Forma Ownership2 (in millions, except per share data) Note: Assumes no redemptions from Kensington’s existing public shareholders. Assumes PIPE shares are issued at a price of $10.00. Excludes the impact of Kensington’s warrants

  30. Slide 30: Public Peers Benchmarking

    Public Peers Benchmarking Source: Company information and FactSet as of August 31, 2020 Note: Metrics reflect non-GAAP financial measures Revenue Growth (%) Enterprise Value ($bn) Gross Margin (%) EBITDA Margin (%) EV / EBITDA (x) Operational Benchmarking Valuation Benchmarking Median: 37% Median: 2

  31. Slide 31: QuantumScape

    =~ QuantumScape

  32. Slide 32: Overview of Kensington Capital Acquisition Corp.

    Overview of Kensington Capital Acquisition Corp. Kensington Overview NYSE-listed (KCAC.U) Special Purpose Acquisition Company (“SPAC”) with $230 million in trust for the purpose of combining with an automotive technology company Management and board with extensive public company experience and opera

  33. Slide 33: QuantumScape Fulfills Kensington's Investment Objectives

    QuantumScape Fulfills Kensington’s Investment Objectives Investment Criteria North America-based automotive business valued at greater than $1.0 billion ü Leverages high-growth mega-trends of emerging technology proliferation ü Validated technical, commercial and financial capabilities based upon gl

  34. Slide 34: Appendix

    Appendix — QuantumScape

  35. Slide 35: Consolidated Balance Sheet

    Note: Statements above are unaudited. Financials consistent with PCAOB audit standard. $3,409 and $3,368 as of 31-Dec-2019 and 2018, respectively, for joint venture. Par value of $0.0001 per Share; 49,073,189 and 49,073,189 shares authorized as of 31-Dec-2019 and 2018, respectively, 48,390,851 and 4

  36. Slide 36: Consolidated Statements of Operations and Comprehensive Loss

    Note: Statements above are unaudited. Financials consistent with PCAOB audit standard. Unrealized Gain on Marketable Securities. Consolidated Statements of Operations and Comprehensive Loss (In Thousands, Except Share and per Share Amounts)

  37. Slide 37: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows (In Thousands) Note: Statements above are unaudited. Financials consistent with PCAOB audit standard.

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