WORKHORSE GROUP. An American OEM of Battery Electric Vehicles and Aircraft INVESTOR PRESENTATION MAY 2018 NASDAQ: WKHS

Transcription

1 1 WORKHORSE GROUP INVESTOR PRESENTATION MAY 2018 An American OEM of Battery Electric Vehicles and Aircraft

2 2 Cautionary Note Regarding Forward Looking Statements This presentation includes forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of These statements may be identified by words such as "believes," "expects," "anticipates," "estimates," "projects," "intends," "should," "seeks," "future," "continue," or the negative of such terms, or other comparable terminology. Forwardlooking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from the forwardlooking statements contained herein. Factors that could cause actual results to differ materially include, but are not limited to: our limited operations and need to expand in the near future to fulfill product orders; risks associated with obtaining orders and executing upon such orders; the ability to protect our intellectual property; the potential lack of market acceptance of our products; potential competition; our inability to retain key members of our management team; our inability to raise additional capital to fund our operations and business plan; our inability to maintain our listing of our securities on the Nasdaq Capital Market; our ability to continue as a going concern; our liquidity and other risks and uncertainties and other factors discussed from time to time in our filings with the Securities and Exchange Commission ("SEC"), including our annual report on Form 10-K filed with the SEC. Workhorse expressly disclaims any obligation to publicly update any forward-looking statements contained herein, whether as a result of new information, future events or otherwise, except as required by law.

3 3 Company Overview

4 4 About Workhorse Workhorse is an American technology company and a leader in last-mile delivery focused on designing and manufacturing high performance battery-electric vehicles and aircraft that make movement of people and goods both more efficient and less harmful to the environment. Founded Employees NASDAQ WKHS

5 5 World Class Partners Tier-One Supply Chain, Channel, Service and Infrastructure Electric-Vehicle Proven Lithium Ion Battery Technology Commercial Supply Agreement Commercially Proven Range Extender (REx for i3 & i8) Exclusive Supply Agreement Premier Automotive Design and Engineering Design & Development Partner Service, Maintenance & Fleet Management Exclusive Channel & Service Partner Pioneer in Electric Propulsion Systems Commercial Supply Agreement Largest U.S. Electric Power Holding Company Charging Infrastructure Partner

6 Manufacturing Capacity 6 60,000 Vehicle/Year Manufacturing Capacity Today with Scalability to 100,000+/Year OHIO PRODUCTION FACILITY INDIANA PRODUCTION FACILITY Business Functions: Expected Growth in Key Areas: Business Functions: Expected Overall Growth: Research & Development Research & Development Assembly Operations Software Engineering Commercial Operations Background Current capacity for 60,000+ chassis per year Battery Pack Development Company : Project X Business Operations Battery Pack Assembly Operations Project : Branding Software : Photoshop Current Employee Count Sales and Marketing 100+ Finance and Accounting Expected Growth: Human Resources buildings on approx. 50 acres of land or ~250,000 square feet Historically produced up to 150 chassis per day on single shift Formerly Navistar International s Workhorse Custom Chassis Business HQ Projecting to employ as many as 1,500-2,000 employees

7 7 World Class Customers For Existing and Emerging Workhorse Vehicle Portfolio Letters of Intent to Purchase Vehicles Deployed On Route September 2017 VT Hackney and Workhorse delivered prototype vehicles in compliance with the United States Postal Service (USPS) Next-Generation Delivery Vehicle (NGDV) contract

8 8 Superior Customer Economics Workhorse E-GEN Saves Fleets >$165,000 vs. GASOLINE Alternative Over 20-Year Life Cycle $169,826 SAVINGS ($13,881) E-GEN: $0.07/kWh; $57K Maintenance; $6.1K EVSE Infrastructure GAS: $2.50/gallon (no increase); $120K Maintenance

9 9 Five-Year Growth Strategy Platform Technology Product Portfolio Disruptive Products & Services $ White Space SMART Truck & Connected Grid Autonomous Commercial Vehicles Adjacencies Existing Business E-GEN/E-100 (Class 6) WKHS Electric/ Range-Extended Electric Medium Duty Trucks (Class 4-5) USPS NGDV (Class 2) N-GEN Work/Delivery Van (Class 3-4) W-15 Electric Pickup Truck (Class 2) 2020 DASS (Delivery-As- A-Service) SureFly / VTOL Transport HorseFly Drone Package Delivery 2017 Core Technology Platform Commercial EV Portfolio Commercial Transportation Products & Services Value

10 10 Competitive Advantages Workhorse Vehicles Provide BREAKTHROUGHS in Fleet Economics, Driver Safety And Environmental Impact Proven Market Leader In manufacturing medium-duty trucks with battery-powered electric drivetrains Addressable Attractive Margin Markets Significant opportunity for recurring revenue of more than $1B per year Scalable Capacity Currently 60K units per year Differentiated Product Portfolio Leveraging battery, drive train, chassis, software platform technologies Strategic Partnerships With industry leaders and transportation technology pioneers

11 11 Product Portfolio

12 12 Metron Telematics Cloud-based Performance Monitoring Systems Installed in All Workhorse Vehicles Real-Time Support for Fleet Operators Maximize the performance and efficiency of each vehicle for each specific route Track every vehicle on-route and during the plug-in charging process Collect and display key data, e.g., battery temp., voltages, state-of-charge, re-gen braking energy, energy used-per-mile (see left) Better understand driver habits and route specific data, such as altitude Gather technical data about the vehicle to proactively inform preventative maintenance Enable over-the-wire updates for vehicle operating systems

13 13 E-GEN & E-100 Electric Step Vans 2M+ Miles of Proven Performance, Reliability and Cost-Savings Parcel delivery services Municipalities $1B Market Opportunity: Office supplies Snack and food delivery services Other specialty services Uniform rental, linen and laundry services Bakeries Utilities Beverage companies Low total cost-ofownership Greater than 50% maintenance savings ROI in 4 years or less Proven Benefits: Greater than 400% fuel efficiency improvement Zero and near zero vehicle emissions 6 MPG to more than 30 MPGe No vouchers required Collision mitigation features 8-year battery warranty

14 14 W-15 Electric Pickup Truck 5,500 Letter of Intent Pre-Orders Valued at $300 Million First Mover in the $26B (500K+ units) Commercial Pickup Truck Market: Exceptional Work Truck Performance Unlimited range with 80 miles all-electric 0-60 in 5 seconds Payload and towing comparable to F kW power export module Lowest Total Cost-of-Ownership $45,000 vs. $80,000 (12 years) 75 MPGe ~13T CO2 offset per year State-of-the-Art Safety & Experience Extra large front crumple zone Lane departure correction Rear crash avoidance Driver touch screen controls

15 15 USPS Next-Generation Delivery Vehicle 180,000 Vehicle, $2.5 Billion USPS Contract One of Five Finalists for NGDV Contract Award: Workhorse partnered exclusively with VT Hackney for the $6B+ United States Postal Service (USPS) Next-Generation Delivery Vehicle (NGDV) replacement program Successfully awarded a six-vehicle prototype contract to build electric, range extended low-floor chassis vehicles as part of the USPS NGDV program USPS Goal: To obtain vehicles that will help provide reliable and efficient delivery service for customers and honor the postal service s commitment to reducing the environmental impact of their 180,000 vehicle fleet

16 16 N-GEN Electric Van Transforming Last-Mile Delivery & Industrial Work Applications Transforming Last Mile Delivery: Real-world last mile delivery pilot program underway in San Francisco Bay Area Designed from the ground up to be the safest, most efficient last-mile delivery system available Featuring ultra-low 19-inch floor to maximize cargo space, reduce knee injuries and enhance ease of operation Built-in Metron advanced telematics and collision avoidance systems to optimize performance and efficiency HorseFly UAV Delivery System integrated for lowest-cost package delivery

17 17 Patented HorseFly UAV Delivery System Increases Delivery Efficiency, Lowers Per Package Cost by 95% The Future of Last-Mile Package Delivery Created for the package delivery market and other commercial applications Designed to meet existing as well as anticipated future FAA guidelines Works in tandem with Workhorse electric truck by delivering packages to remote locations Saves fleet operator fuel cost from most expensive miles Real-world package delivery pilot program underway in Cincinnati metro area HorseFly rejoins truck at its new location once its delivery is completed HorseFly then recharges from atop the Workhorse truck Increases daily driver efficiency, doesn t eliminate jobs

18 Click on the image to view a AVIATION LIVE HorseFly Delivery 18 18

19 19 SureFly Personal Octocopter After 78 years, the Helicopter has been Reinvented Transforming Personal Flight: Personal helicopter/vtol aircraft designed for safe and easy flight Leverages battery pack, management systems and controls used in Workhorse commercialized rangeextended battery electric road vehicles Gas combustion engine generating electricity and a parallel battery pack offering backup power source No need for long battery charging periods between flights Pilot-operated, expected to be capable of carrying pilot w/ passenger or cargo up to 70 mi. Announced intention to spin off SureFly in 2018 First successful flight May, 2018 Future models will be capable of autonomous flight, with payloads of up to 400 lbs. Anticipated markets: precision agriculture, emergency responders, city commuters, military

20 20 Financials

21 21 Financial Metrics & KPI s Financial Highlights Total 2017 revenue increased 69% year-over-year Current backlog of $9 million Projecting gross material margin positivity in 2018 Key Performance Indicators (KPI s) Delivered a record 121 vehicles in Q Battery pack assembly automation yielding positive results Manufacturing throughput increased from 1 to 4 vehicles/day Annual Revenue (in millions) Quarterly Units Shipped Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17

22 Milestones & Growth Drivers SureFly first flight Horsefly UAV Pilot Package Deliveries N-GEN First Pilot Production Vehicles Deployed with Customers USPS NGDV Prototype Testing Completed W-15 Pilot Production Vehicles Deployed with Fleet Customers N-GEN & W-15 Commercial Production

23 23 Investment Highlights and Opportunities Workhorse Emerging as the Leading U.S. Commercial EV OEM Superior Manufacturing Plant Workhorse can manufacture a truck for a fraction of the estimated $1B+ investment to launch a new truck Proprietary Technology Platform technology protected by a strong patent portfolio with 6 granted patents with 2 additional pending Blue Chip Customers UPS and FedEx, etc. Key Investment Highlights Tier-One Partners BMW, Panasonic, Ryder, etc. Greater Cost Efficiency Commercial EV s have proven to be more cost effective than gas and diesel, providing $165,000+ in cost savings over the 20-year life of each vehicle Greater Fuel Efficiency 400% improvement in fuel efficiency (going from 6MPG à 30+MPGe) Significant Market Opportunities $1 Billion Annual Market Opportunity On average, commercial fleet operators will turn over ~20,000 step vans per year, creating a massive annual, overall market $6 Billion and 180,000 Vehicle Opportunity with United States Postal Service One of five finalists still eligible to win the contract for the United States Postal Service Next-Generation Delivery Vehicle Replacement Program (USPS NGDV) W-15 Pickup Truck Initial Interest $300 Million and 5,500 vehicles already committed through letters of intent for the W-15 electric pickup truck

24 24 THANK YOU Investor Relations Contact: Matt Glover and Tom Colton Liolios Group, Inc

25 25 Appendix