Slide 1: Canoo Investor Presentation August 2020
CANOO 1 INVESTOR PRESENTATION AUGUST 2020
Slide 2: Disclaimer and Forward Looking Statements
CANOO 2 Thispresentationisprovidedforinformationalpurposesonlyandhasbeenpreparedtoassistinterestedpartiesinmakingtheirownevaluationwithrespecttoapotentialbusinesscombination(the“proposedbusinesscombination”)betweenCanooHoldingsLtd. (“Canoo”)andHennessyCapitalAcquisitionCorp.IV(“HennessyCapital”or“HC
Slide 3: Financial Information; Non-GAAP Financial Measures
CANOO 3 FinancialInformation;Non-GAAPFinancialMeasures ThefinancialinformationanddatacontainedinthispresentationisunauditedanddoesnotconformtoRegulationS-X.Accordingly,suchinformationanddatamaynotbeincludedin,maybeadjustedinormaybepresenteddifferentlyin,anyproxystatement, registrationstatement,orpro
Slide 4: CANOO 4
CANOO 4
Slide 5: CANOO 5
CANOO 5
Slide 6: Canoo
CANOO 6 CANOO
Slide 7: Canoo
CANOO 7 CANOO Note: Directional Image
Slide 8: Proposed Transaction Summary
CANOO 1 PROPOSED TRANSACTION SUMMARY 1. Prior to planned participation in the PIPE. See slide 52 for key assumptions and information. Hennessy Capital Acquisition Corp. IV announced a business combination with Canoo Holdings Ltd., a technology - driven company developing unique electric mobility s
Slide 9: Hennessy Capital – A Catalyst for Growth
CANOO 9 HENNESSY CAPITAL –A CATALYST FOR GROWTH Strong alignment with Hennessy Capital’s objectives for value creation and growth 190 High Potential Targets Identified 29 Meaningful Reviews Completed 17 Initial Offers $1,430 $4,127 2024E Revenue 2026E Revenue $188 $964 2024E EBITDA 2026E EBITDA (Can
Slide 10: What Canoo Has Achieved in Two Years
CANOO 10 WHAT CANOO HAS ACHIEVED IN TWO YEARS EFFICIENT CAPITAL DEPLOYMENT $250 million investment to reach Beta vs. market standard typically measured in billions of dollars PROPRIETARY TECHNOLOGY PLATFORM Develops and owns proprietary technology, and therefore not dependent on external licensing I
Slide 11: Summary Highlights
CANOO 11 SUMMARY HIGHLIGHTS 1 PROPRIETARY, MODULAR SKATEBOARD 2 MULTI-FACETED GROWTH STRATEGY 3 UNIQUE SUBSCRIPTION MODEL 4 DE-RISKED MANUFACTURING STRATEGY 5 ATTRACTIVE ENTRY VALUATION
Slide 12: Canoo's World-Class Management Team
CANOO 12 CANOO’S WORLD -CLASS MANAGEMENT TEAM UlrichKranz / In Charge ▪ Former BMW executive ▪ 30+ years in BMW and MINI ▪ Creator and Head of BMW i Division Richard Kim / In Charge of Design& Brand ▪ Lead Exterior Designer of i3 production vehicle, i3 and i8 concepts, and i8 Spyder concept at BMW ▪
Slide 13: Canoo Company Overview
CANOO 13 CANOO COMPANY OVERVIEW
Slide 14: Canoo at a Glance – Disruptive EV Company
CANOO 14 CANOO AT A GLANCE –DISRUPTIVE EV COMPANY ▪ Offers modular, purpose-built EVs to solve the future of mobility ▪ Developed the flattest and lowest profile skateboard in the industry that enables a variety of vehicle configurations ▪ Dual-pronged B2C / B2B strategytargets large markets that ar
Slide 15: 19 Months to Beta, 13 Driving Prototypes, 50+ Crash Tests
CANOO 15 19MONTHSTOBETA 13DRIVINGPROTOTYPES 32BETAPROPERTIES 50+CRASHTESTSCOMPLETED
Slide 16: Canoo's Competitive Moats
CANOO 16 CANOO’S COMPETITIVE MOATS DEMONSTRATED VIABILITY Already designed, manufactured and tested a fleet of Beta vehicles, conducted over 50 crash tests and attracted blue chip customers DESIGNED FOR LOWEST COST IN INDUSTRY Proprietary, robust skateboard architecture simplifies the BOM and manufa
Slide 17: Three Phases of Revenue Streams
CANOO 17 THREE PHASES OF REVENUE STREAMS Canoo has a multi -phased approach to generate revenue and grow operations 1. Skateboard licensing opportunity not currently reflected in the financial model or projections and represents an upside opportunity for these figures. Description Timing $120 $450 2
Slide 18: Canoo's Foundation: The Skateboard
CANOO 18 CANOO CANOO’S FOUNDATION: THE SKATEBOARD
Slide 19: Canoo Skateboard Technology
CANOO 19 ▪ The first true steer-by-wireplatform coming to market ▪ Composite leaf spring suspension ▪ Majority of crash test incorporated into skateboard design ▪ Battery modulesincorporateddirectly into skateboard structure ▪ In-house designed ECUs and battery management system (BMS) CANOO SKATEBOA
Slide 20: Faster, Smarter, Better
CANOO 20 FASTER, SMARTER, BETTER Enables new vehicle development in as little as 18 to 24 months at a lower cost vs. competitors by leveraging modular core skateboard technology
Slide 21: Collaboration with Global Leading OEM
CANOO 21 COLLABORATION WITH GLOBAL LEADING OEM Partnership with Hyundai represents compelling customer traction –illustrating Canoo's technological leadership and reinforcing commercial confidence in its offerings Hyundai Motor Group & Canoo to Co-Develop All-Electric Platform for Future Electric Ve
Slide 22: Canoo Vehicle Offerings
CANOO 22 CANOO VEHICLE OFFERINGS B2C LifestyleVehicle (LV) B2B Delivery Vehicle (DV) B2C Sport Vehicle (SV) Vehicle Estimated Specifications ▪ 250+ mile range ▪ Charge time of 20% to up to 80% in 28 minutes ▪ 125 mph top speed ▪ 7 passenger seat capacity ▪ 200+ mile range ▪ Totalcargo volume ranging
Slide 23: Significant Opportunity Exists
CANOO 23 SIGNIFICANT OPPORTUNITY EXISTS Canoo’s dual -pronged B2C / B2B strategy targets large markets that are primed for explosive growth 1. Source: EVAdoption. 2. Source: TechNavio. 3. Source: eMarketer. Canoo’s B2B Delivery Vehicle targets the last mile delivery market, which is supported by the
Slide 24: Canoo Lifestyle Vehicle
CANOO 24 CANOO LIFESTYLE VEHICLE
Slide 25: The Post-SUV Evolution
CANOO 25 THE POST-SUV EVOLUTION U S A B I L I T Y TIME STATION WAGON 1960s – ’70s MINIVAN 1980s – ’90s SUV 2000s – PRESENT CANOO FUTURE OF SPACE Consumers want space for passengers and cargo
Slide 26: Interior
CANOO 26 INTERIOR A loft on wheels with everything you need and nothing you don’t
Slide 27: The Option to Make It Your Own
CANOO 27 THE OPTION TO MAKE IT YOUR OWN Canoo members will get the chance to “wrap” their vehicle in custom skins to personalize the experience and keep every vehicle looking and feeling fresh Pegboards Customize the Canoo sidewall with various options Exterior Wraps 1 Numerous custom skins availabl
Slide 28: Lifestyle Vehicle Overview
CANOO 28 LIFESTYLE VEHICLE OVERVIEW Flat design of the Canoo skateboard enables the highest volume utilization across all classes of competitor vehicles Source: Publicly available specification sheets. 1. SAE J1100 PV1 + PV2 + PV3; ft 3 2. SAE J1100 L103; millimeters 3. SAE J1100 L101; millimeters H
Slide 29: Fully Autonomous Compatible
CANOO 29 FULLY AUTONOMOUS COMPATIBLE Level 2.5 autonomyfor SOP in 2022 ▪ Steer-by-wire ▪ Brake-by-wire ▪ Software integration module ▪ LiDARready ▪ Upgradable AI control module ▪ Uniquely integrateable with 3 rd party next-gen autonomy 7 Cameras 5 Radars 12 Ultrasonic sensors
Slide 30: Lifestyle Development Program Timing
CANOO 30 LIFESTYLE DEVELOPMENT PROGRAM TIMING Canoo’s rapid commercialization progress speaks to the quality and experience of its leadership team AUGUST 2020 Manufacturing Facility Retrofit Commences Gamma Kick-Off First Gamma Prototype Ready Gamma Program Sign-Off First Vehicle Available for Consu
Slide 31: Canoo B2B Delivery Vehicle
CANOO 31 CANOO CANOO B2B DELIVERY VEHICLE Large cargo utility space –with a very small footprint Note: Directional Image
Slide 32: Delivery Vehicle Overview
CANOO 32 DELIVERY VEHICLE OVERVIEW Attractive configurations built on base skateboard targeted to address growing last-mile delivery market Note: Directional images. Source: Publicly available specification sheets. 1. SAE J1100 PV1 + PV2 + PV3; M 3 2. SAE J1100 L103; millimeters 3. SAE J1100 L101; m
Slide 33: Delivery Vehicle Development Strategy
CANOO 33 DELIVERY VEHICLE DEVELOPMENT STRATEGY ▪ Direct carryover content from coreskateboard technology ? Includes powertrain, battery, electrical architecture, thermal system ? Onlyminor modification and repackaging required ▪ Chassis, crash structure strategy and body design will be modified to f
Slide 34: Canoo Sport Vehicle
CANOO 34 CANOO CANOO SPORT VEHICLE Note: Directional Image
Slide 35: Sport Vehicle Overview
CANOO 35 SPORT VEHICLE OVERVIEW ▪ Expectedto be available to customers in 2025 ▪ Utilizessame core skateboard platform as the Lifestyle and Delivery Vehicles, reducing cost to develop and launch ▪ Applies proprietary technology to a traditional, sedan-like vehicle, enabling Canoo to penetrate a new,
Slide 36: Canoo Contract Engineering
CANOO 36 CANOO CONTRACT ENGINEERING
Slide 37: Contract Engineering & Licensing Opportunities
CANOO 37 CONTRACT ENGINEERING & LICENSING OPPORTUNITIES Contract engineering partnerships validate Canoo’s technology and generate revenue that reduces the Company’s overall execution risk Technology Companies Passenger Vehicle OEMs Autonomous Vehicle Technology Suppliers Delivery Vehicle OEMs ▪ $12
Slide 38: Canoo Subscription
CANOO 38 CANOO SUBSCRIPTION
Slide 39: Not a Car Swapping Model or a Ridesharing Company
CANOO 39 NOT A CAR SWAPPING MODEL …Which requires high penetration rates and complex logistics OR A RIDESHARING COMPANY …Which have challenging unit economics Lease Time commitment Down payment Customer pays maintenance No insurance - Time commitment No down payment Routine maintenance at no extra c
Slide 40: Growing Demand for Subscription Models
CANOO 40 GROWING DEMAND FOR SUBSCRIPTION MODELS Macro trends driving accelerated auto subscription demand 1. Rethink, WSJ. Representative sample of largest developed global metropolitan areas. 2017 2018 2019 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E 0 1 2 3 4 5 6 7 Individual
Slide 41: Subscription Model
CANOO 41 SUBSCRIPTION MODEL We believe subscription -based models are essential for success today and into the future Pay Month to Month No Dealerships Access to Insurance Within Canoo App Maintenance Included Public Charging Included Registration Included 1.No upfront payment or breakage fees upon
Slide 42: How It Works
CANOO 42 HOW IT WORKS Subscription is a direct-to-consumer, no commitment and transparent alternative to leasing / buying a vehicle 01 Apply For Subscription 02 Receive Your Canoo 03 Drive As If It’s Yours 04 Enjoy The Subscription 05 Return When Ready Download the Canoo app and apply to be a member
Slide 43: Canoo Delivers Outsized Value at Cost Equivalence
CANOO 43 CANOO DELIVERS OUTSIZED VALUE AT COST EQUIVALENCE Note: Bar charts represent illustrative costs. 1. All-in costs include lease down payments, registration / renewal fees, maintenance / repair costs, charging and title / delivery fees. $ ? ? ? $$ Lease Payment Down Payment Maintenance Regis
Slide 44: Subscription Go-to-Market Partnerships
CANOO 44 SUBSCRIPTION GO -TO-MARKET PARTNERSHIPS Fleet Operations Payment Processing Maintenance And Repair Platform Support Charging Insurance Government Financing Utilizing partnerships to focus on core competencies and reduce execution risk: ▪ Facilitates the city-by-city launch and operations of
Slide 45: Subscription vs. Sale
CANOO 45 SUBSCRIPTION VS . SALE A subscription model can generate an estimated ~4x margin on each vehicle compared to a direct sale Note: All figures indexed to 100. 1. Analysis is representative and does not necessarily reflect Canoo’s specific subscription economics. 100 ONE-TIME SALE REVENUE 80 V
Slide 46: Illustrative Subscription Unit Economics
CANOO 46 ILLUSTRATIVE SUBSCRIPTION UNIT ECONOMICS Subscription generates consistent cash flow and strong ROE over vehicle life –model is less dependent on new vehicle sales, creating a considerably more profitable & resilient model when compared with other OEMs ($9) $2 $2 $2 $2 $2 $6 $6 $6 $6 $6 $6
Slide 47: Canoo Manufacturing
CANOO 47 CANOO MANUFACTURING
Slide 48: Manufacturing Relationship
CANOO 48 MANUFACTURING RELATIONSHIP Canoo has an asset-light model through a strategic relationship with aworld-class contract manufacturer, which has allowed Canoo to reach Beta faster and with less capital deployed vs. EV competitors STRATEGIC RELATIONSHIP: CANOO VEHICLES DESIGNED FOR MANUFACTURAB
Slide 49: Manufacturing Plan
CANOO 49 MANUFACTURING PLAN Vehicle production will be outsourced, reducing complexity and required CapEx and allowing Canoo to focus on core competencies and benefit from a leading contract manufacturer’s expertise Attributes ▪ Body shop and full assembly ▪ No paint shop needed ▪ Flexible productio
Slide 50: Canoo Financials & Transaction Overview
CANOO 50 CANOO FINANCIALS & TRANSACTION OVERVIEW
Slide 51: Summary Financial Projections
CANOO 51 SUMMARY FINANCIAL PROJECTIONS Model conservatively assumes rollout in 13 cities –significant upside in expansion both domestically and internationally Note: Canooestimates NOLs to fully offset taxable income through 2026E. 1. Includes Lifestyle and Sport Consumer vehicles. 2. Includes vehic
Slide 52: Transaction Overview
CANOO 2 TRANSACTION OVERVIEW The transaction is expected to fully fund the equity financing requirements of the Canoo LV and the PIPE will be anchored by existing Canoo shareholders 1. Assumes no redemptions from HCAC’s existing public shareholders and includes HCAC founders. 2. Includes participati
Slide 53: Attractive Transaction Pricing
CANOO 53 ATTRACTIVE TRANSACTION PRICING Note: Figures in bar charts represent enterprise value. Apply a range of 2.00x –4.00x 1-year forward multiples, a discount to public comparables, to Canoo’s 2025E revenue The resulting future enterprise value is discounted back by 4 years to arrive at an imp
Slide 54: Sum-of-the-Parts Valuation
CANOO 54 Incorporates Netflix as a proxy for high-growth subscription and Tesla as a proxy for high-growth EV to valuation framework Applies 5-year median 2-year forward multiples to Canoo’s 2025E Subscription 1 and Engineering / B2B vehicle revenue Discounted back by 3 years to arrive at indicat
Slide 55: Canoo Thank You
CANOO 55 CANOO THANK YOU Note: Directional Image
Slide 56: Canoo Supplemental Materials
CANOO 56 CANOO SUPPLEMENTAL MATERIALS
Slide 57: Strategic Investment Highlights
CANOO 57 STRATEGIC INVESTMENT HIGHLIGHTS 1. Skateboard licensing opportunity not currently reflected in the financial model or projections and represents an upside opportunity for these figures. 2. Projected CAGRs for Engineering Services, Consumer Subscription & B2B are 2021E-2025E, 2022E-2025E and
Slide 58: Canoo Skateboard Details
CANOO 58 CANOO SKATEBOARD DETAILS Proprietary, highly differentiated skateboard architecture is the core of all Canoo product offerings COMPETITORS CANOO Suspension Composite leaf spring suspension creates a completely flat skateboard maximizing interior passenger space and modularity Suspension Tra
Slide 59: A True Modular Platform Garnering Interest
CANOO 59 A TRUE MODULAR PLATFORM GARNERING INTEREST Versatility of Canoo's skateboard allows for a wide range of potential products and use cases at minimal additional expense O N E S K A T E B O A R D M U L T I P L E C A B I N S
Slide 60: Hyundai Press Release
CANOO 60 HYUNDAI PRESS RELEASE Source: Hyundai website. Los Angeles / Seoul, Feb 11/12, 2020 –Hyundai Motor Group and Canoo announced today that Hyundai has engaged Canoo to jointly develop an electric vehicle (EV) platform based on Canoo’s proprietary skateboard design for upcoming Hyundai and Kia
Slide 61: Canoo's Comparables
CANOO 61 CANOO’S COMPARABLES EV Players AutoTech Mobility Platform Consumer Subscription Recent AutoTech SPACs ▪ Pure-play EV competitors ▪ CapEx heavy business model vs. Canoo’s asset-light operation ▪ Enabling next-gen technology in automotive sector ▪ Technology-driven differentiation ▪ Alternati
Slide 62: Operating Benchmarking
CANOO 62 63.7% 64.4% 41.4% 14.0% 46.5% 32.3% 29.2% 18.1% 16.3% 14.7% 12.6% 7.6% 48.5% 41.1% 41.3% 33.3% 21.8% 17.7% 8.9% 8.0% 220.0% 128.1% 105.2% 66.2% 66.0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 22.3% (11.2%) 16.3% 11.0% 56.6% (14.4%) 14.0% 42.2% 27.1% 15
Slide 63: Valuation Benchmarking
CANOO 63 0.01x 0.21x 0.08x 0.11x 0.68x 0.57x 0.90x 0.32x 0.97x 0.49x 0.32x 0.39x 0.08x 0.04x 0.27x 0.45x 0.16x 0.59x 0.52x 0.19x 0.04x 0.06x 0.02x 0.00x 0.00x 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 0.79x 8.55x 4.87x 1.55x 21.90x 16.66x 16.24x 14.76x 7.45x 7.
Slide 64: Canoo vs. Recent EV Opportunities
CANOO 64 CANOO VS. RECENT EV OPPORTUNITIES Canoo’s strategic and commercial development achievements compare favorably across the board Employee Headcount ~300 ~49 ~70 Funding Prior to SPAC Transaction ~$480mm($130mm cash available) ~$15mm ~$15mm SPAC Transaction Value ~$1.8bn ~$1.9bn ~$1.0bn Curren