Lightning Emotors, Inc. · OTC:ZEVY
Lightning Emotors — SPAC Merger (December 2020)
45 slides from Lightning Emotors's SPAC merger presentation, December 2020
Slide 1: Investor Presentation
Investor Presentation December 2020 1
Slide 2: Safe Harbor
Safe Harbor Investor Presentation This presentation (this “Presentation”) is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to the proposed business combination between Lightning Systems, Inc. (“Lightning eMotor
Slide 3: Safe Harbor (Cont'd)
Safe Harbor (Cont’d) Certain market data information in this Presentation is based on the estimates of Lightning eMotors and Gig3 management. Lightning eMotors and Gig3 obtained the industry, market and competitive position data used throughout this Presentation from internal estimates and research
Slide 4: Safe Harbor (Cont'd)
Safe Harbor (Cont’d) Financial Information; Non-GAAP Financial Measures The financial information and data contained in this Presentation are unaudited and do not conform to Regulation S-X. Accordingly, such information and data may not be included in, may be adjusted in or may be presented differen
Slide 5: Detailed Transaction Overview
Detailed Transaction Overview Timeline Transaction is expected to close in the 1st Half of 2021 It is anticipated that the post-closing company will be a Delaware corporation, retain the Lightning eMotors name, and be listed on the New York Stock Exchange Valuation Valuation implies a pro form
Slide 6: Overview of GigCapital3
Overview of GigCapital3 GigCapital3, Inc. Overview GigCapital3 Leadership Team GigCapital3, Inc. (NYSE: GIK) is a $200mm publicly traded Special Purpose Acquisition Company (“SPAC”) / Private-to-Public-Equity (“PPE”) Executive Chairman and Founding Managing Partner of GigCapital Global and all i
Slide 7: Today's Presenters
Today’s Presenters Tim Reeser Bill Kelley Robert Fenwick-Smith Founder and Chief Executive Officer Chief Technology Officer and Chief Operating Officer Executive Chairman and Interim CFO 25 years of Technology CEO experience 35 years of automotive engineering 35 years building companies Foun
Slide 8: Agenda
Agenda 1 Key Takeaways 2 Company Overview 3 Financial Summary 4 Transaction Summary Appendix 8
Slide 9: Key Takeaways
Key Takeaways 9
Slide 10: Lightning at a Glance
Lightning at a Glance Focus on Urban Modular Blue Chip Commercial ZEV Architecture $67bn TAM (1) Customer Base Only Full-Range Manufacturer We are a B2B Company Scalable and IP Protected Across Multiple End Markets Class 3 – 7 BEV & FCEV Strategic 2 Years 10 Years R&D $2.0bn Partnerships Head Start
Slide 11: Investment Highlights
Investment Highlights 1 Strong Secular Trends Driving Massive TAM $67bn TAM of Class 3 – 7 commercial vehicles electrification Large tailwinds of regulations, corporate mandates and grants 2 Dominant Market Positioning The only company that has delivered Class 3, 4, 5, 6 and 7 EVs First move
Slide 12: Company Overview
Company Overview 12
Slide 13: What We Do
What We Do We provide complete electrification solutions for urban commercial fleets (Direct Sales) (Energy-as-a-Service) (EV-as-a-Service) COMMERCIAL ZEVs ANALYTICS CHARGING FINANCING Manufacture complete vehicles: Actionable fleet intelligence Complete charging solutions Support financing
Slide 14: Optimized Modular Design Addresses Diversified Opportunities
Optimized Modular Design Addresses Diversified Opportunities Vehicle class and application agnostic design Each class has numerous specialty vehicles High level of cost-effective customization enabled by modular software and hardware Serving all segments of urban commercial fleets with prove
Slide 15: Broadest Product Line Addresses Massive TAM
Broadest Product Line Addresses Massive TAM Class 3 Class 4 Class 5 Class 6 Class 7 Total Additional market opportunity from charging business and sales to OEM Note: Pictures represent selected vehicles as examples in each class and our products are not limited to vehicles shown in the above. Sales
Slide 16: Bespoke Sales Process to Sell Directly to Large Fleet Customers
Bespoke Sales Process to Sell Directly to Large Fleet Customers Over 10 years of regular engagement with over 250 fleets nationally High-Touch Direct to fleet engagement + Channel support Education-Focused Highly technical sales force Comprehensive national demo vehicle pool Data-Driven Custom
Slide 17: We Have Real B2B Customers in Place
We Have Real B2B Customers in Place We are at the tipping point with accelerating sales cycles for Lightning eMotors Significant progress made in customer validation Sales cycle between 3 and 24 months Field Trial B2B Outreach Technical TCO Initial Contract Repeat Orders to Fleets Validation Validat
Slide 18: We are Miles Ahead of XL Fleet, Hyliion and Nikola
We are Miles Ahead of XL Fleet, Hyliion and Nikola (1) Lightning eMotors has Zero Emission Vehicle (ZEV) revenue NOW and is expected to grow profitably XL Fleet, Hyliion and Nikola only start validating their ZEV business models in 2023 URBAN Short and Target Market URBAN Short and Medium Haul Mediu
Slide 19: Huge Untapped Market Opportunity with a Dominant Market Share
Huge Untapped Market Opportunity with a Dominant Market Share “EVs excel at short-haul travel. That means they’re great options for personal cars and even medium-duty vehicles.” – Bill Gates (1) Light-Duty Medium-Duty Heavy-Duty Vans, pickups Vocational trucks, shuttle buses Tractor trailers, transi
Slide 20: Dominant Market Positioning
Dominant Market Positioning Lightning eMotors enjoys over 50% market share in electric vehicles across Classes 3 – 7, based on trucks expected to be shipped in 2020 Class 3 – 7 Commercial Vehicles Shipped in 2020 (1) Selected Current Fleet Customers Lightning eMotors has shipped more than 3x the veh
Slide 21: Strong Global Secular Trends Driving Massive TAM
Strong Global Secular Trends Driving Massive TAM Zero Emission Zones: 30+ cities worldwide led by London and Global Commercial EV Sales (1) Regulation Santa Monica (Units in thousands) Commercial vehicles in California: By 2023: 100% zero emissions for new airport shuttle buses 473k By 2029
Slide 22: Offering Immediate Operational Savings
Offering Immediate Operational Savings TCO is already currently lower than ICE (Internal Combustion Engine) Monthly Fuel + Maintenance Cost (2020E) Cost Comparison E-450 Shuttle Bus (4,500 miles / month) $2,925 Gasoline Lightning eMotors Illustrative LEASE Example With Grants No Grants $675 2020E 20
Slide 23: Our Technology Competitive Moats
Our Technology Competitive Moats Best-in-class efficiency, range, charging, reliability and analytics IP + Trade Secrets Analytics + Algorithms Service Network Operations + Supply Chain Proprietary HD transmission Continuously collecting Established infrastructure Low-capex assembly Modula
Slide 24: Growing Intellectual Property Portfolio
Growing Intellectual Property Portfolio Invention Patent Status Lightning eMotors Mobile Charger 2 1 Smart Electronic Power Steering System Pending 6 7 2 Mobile Charging Station with Battery Storage Pending 8 Electric Vehicle Torque-Limiting Method and 3 System Provisional on File Lightning eMotors
Slide 25: Highly Scalable Analytics Solution Drives Customer Retention
Highly Scalable Analytics Solution Drives Customer Retention Our proprietary analytics drive 25% greater efficiency Class 3 Vehicles on CARB Dyno Metrics and real-time fleet performance compared to competitors Competitors $1,495 1st Year Pricing 1.8 mi / kWh 1.4 mi / kWh $495 2nd Year+ Pricing Machi
Slide 26: Established Strategic Partnerships
Established Strategic Partnerships Key Supply-Chain Partners Specialty Vehicle Partners / OEMs Foundation of our quality and ability to scale Enable us to address all our target markets Components Chassis Recreational Bodies Specialty Motors Transmissions Batteries Ambulances Sch
Slide 27: Case Study: Multidimensional Partnership with Plug Power
Case Study: Multidimensional Partnership with Plug Power The World’s First Electric, Fuel Cell-Powered Class 6 Truck Infrastructure and About Plug Power Vehicle Partnership Channel Partnership Leading vertically integrated Hydrogen player: Lightning eMotors is the sole Plug Power Hydrogen prod
Slide 28: Case Study: Strategic Partnership with ABC Company
Case Study: Strategic Partnership with ABC Company Exclusive Relationship for Motorcoaches About ABC Company Partnership Overview One of the leading Motorcoach companies We supply electric powertrains for RePower in the U.S. (replacing ICE with EV in older buses) Exclusive distributor of VanHo
Slide 29: Robust Contracts Provide Financial Visibility and External Validation
Robust Contracts Provide Financial Visibility and External Validation Total Addressable Fleet Clear path to $1bn contracted revenue by 2025E based on current contract pipeline of 450,000 Vehicles 20,000 9 out of 11 customers are currently operating our vehicles State of California 100,000 $120mm
Slide 30: Highly Experienced Management Team
Highly Experienced Management Team Lightning eMotors GigCapital3 Tim Reeser Robert Fenwick-Smith Bill Kelley Dr. Avi Katz Executive Chairman, Founder and CEO CTO and COO Executive Chairman, Interim CFO CEO, President and Secretary 25+ years 35+ years 35+ years 30+ years Aravaipa Ventures Aravaipa Ve
Slide 31: Financial Summary
C LIGHTNING MOTORS Financial Summary
Slide 32: Projected Revenue by Product Mix
Projected Revenue by Product Mix Rapidly Growing Pipeline and Contracted Purchase Order Backlog ($ in mm) March 2020 September 2020 Pipeline: $130mm $800mm+ Contracted PO Backlog: $28mm $150mm+ $2,012 $18 $97 $440 $1,165 $11 $52 Already received purchase orders to fulfill $640 $264 100% of 2020E and
Slide 33: Drivers of Growth are Already in Place
Drivers of Growth are Already in Place Importantly, our major fleet partners share this understanding of the major growth drivers 2020E 2021E 2022E 2023E 2024E 2025E SUPPLY CHAIN Fleet Trials GRANTS REGULATIONS Maturity Main Driver $140mm in CA CA Advanced Clean truck rule kicks in. Either for COGS
Slide 34: On Track to Achieve 50% COGS Reduction in Next 18 Months
On Track to Achieve 50% COGS Reduction in Next 18 Months The Path to COGS Reduction Gross Margin Projections Gen 1 launched in early 2018A, Gen 2 ($ in mm) launched in 2020E, Gen 3 in 2021E Design has been field-tested and 3-Year Battery Contract validated by customers for 2 years with Supply
Slide 35: Continuing Operating Leverage Expected to Drive Profitability
Continuing Operating Leverage Expected to Drive Profitability R&D Expenses S&M Expenses G&A Expenses ($ in mm) ($ in mm) ($ in mm) Platform modularity ensures efficient use B2B business model drives lower S&M Predominantly fixed cost as scale achieved of spend expenses with minimal annual increase n
Slide 36: Projected Path to Profitability
Projected Path to Profitability EBITDA (1) Free Cash Flow (2) Cash Balance (3) ($ in mm) ($ in mm) ($ in mm) EBITDA neutral to positive Capex includes investments to develop in 2022E EV-as-a-Service and Energy-as-a-Service $50 15.6% 2.5% (1.6%) 13.3% (8.6%) $226 (20.1%) $315 ($16) ($18) 7.9% ($43) $
Slide 37: Established Medium-Duty Leader Ready for Rapid Profitable Growth
Established Medium-Duty Leader Ready for Rapid Profitable Growth Established Market Leader Unique proprietary modular software and hardware design 50%+ market share in Class 3 – 6 EVs in 2020 (1) Highest Revenue Visibility Among Peers 2021 fully contracted under binding contracts $800mm pipe
Slide 38: Transaction Summary and Valuation Overview
Transaction Summary and Valuation Overview 38
Slide 39: Detailed Transaction Overview (Cont'd)
Detailed Transaction Overview (Cont’d) (1) Illustrative $100 million Convertible Note and $25mm PIPE Key Transaction Terms Illustrative Pro Forma Valuation Minimum of at least $150 million across Convertible Note, (1) PIPE and cash remaining in Share Price at Closing $10.00 trust account after sat
Slide 40: Lightning eMotors' Comparables
Lightning eMotors’ Comparables Electric Vehicle Pure-play EV competitors CapEx heavy business model AutoTech Enabling next-gen technology in automotive sector Technology-driven differentiation Selected Recent AutoTech SPAC Mergers C A N O O High-growth AutoTech players Valuations driven
Slide 41: Operating Benchmarking: Revenue Growth
Operating Benchmarking CY2024E CY2025E CY2021E CY2024E Electric Vehicle AutoTech Selected Recent AutoTech SPAC Mergers (1) (2) C A N O O EV / AutoTech Median: 42% SPAC Median: 105% >500% 163% 220% 177% 121% Revenue Growth 117% 113% 103% 105% 82% 73% 70% 66% 63% 47% 51% 37% 22% 21% 8% EV / AutoTech M
Slide 42: Valuation Benchmarking: EV / Revenue
Valuation Benchmarking CY2024E CY2025E CY2021E CY2024E Electric Vehicle AutoTech Selected Recent AutoTech SPAC Mergers (1) (3) (4) C A N O O EV / AutoTech Median: 15.87x SPAC Median: 1.43x EV / Revenue 19.29x 15.32x 13.70x 12.46x 39.01x 30.03x 16.42x 12.67x 10.08x 3.00x 2.86x 1.89x 1.54x 1.32x 1.12x
Slide 43: Operating Benchmarking of Select EV SPAC Mergers
Operating Benchmarking of Select EV SPAC Mergers Revenue ($mm) (1) C A N O O Rev. Growth: NM 466% 82% NM NM 177% NM NM 220% NM NM 66% NM 227% 117% NM 309% 121% NM NM 105% NM 174% 70% NM 273% 113% NM 81% NM 405% NM 497% NM 106% NM 150% NM 336% NM 196% NM 155% 259% 130% $14,135 $10,604 $5,776 $5,099 $
Slide 44: Transaction Priced At A Deep Discount to Peer Multiples
Transaction Priced At A Deep Discount to Peer Multiples Discounted Future Value Based on Selected AutoTech (EV and AutoTech Peer Groups ) SPAC Trading Comparables $9,319 92% $6,990 Discount $5,320 86% $3,972 Discount $2,330 63% Discount $651 $1,165 $651 Implied Future EV Implied Discounted EV Transa
Slide 45: Thank You
Qe 3 ere eMOTORS “~~ WOLOK®? Thank You