Zapp Electric Vehicles Group Limited · OTC:ZAPPF
Zapp Electric Vehicles — Investor Presentation (July 2023)
39 slides from Zapp Electric Vehicles's investor presentation, Jul 6, 2023
Slide 1: Investor Presentation July 2023
Investor Presentation July 2023
Slide 2: About this Presentation
THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, REPRODUCTION, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON OR IN OR INTO OR FROM THE UNITED STATES OF AMERICA (EXCEPT TO QUALIFIED INSTITUTIONAL INVESTORS AS DEFINED BELOW),
Slide 3: Cautionary Note re Forward-Looking Statements
This presentation does not purport to contain all of the information that may be required to evaluate an investment in Zapp securities and should not be relied upon to form the basis of, nor be relied on in connection with, any commitment or investment decision whatsoever. This presentation is inten
Slide 4: Unique Investment Opportunity
Unique Investment Opportunity 1| Design-Led, High-Performance and Sustainable Electric Personal Urban Mobility Solutions Created a new “Urban Motorcycle” P2W category following a ground-up redesign for an original and all-new vehicle architecture to maximize the benefits of EV technology 2| Large an
Slide 5: Company Highlights
COMPANY HIGHLIGHTS
Slide 6: Board of Directors
Board of Directors Independent Board with Proven PLC and Global Business Track Record Swin Chatsuwan Director CEO of Zapp Jeremy North Director President of Zapp Tony Posawatz Independent Chair Former GM Executive, Current Director of Lucid Maj. Gen. Patchara Rattakul Independent Director CEO of Haa
Slide 7: Team Zapp
Team Zapp Experienced Entrepreneurs and Professionals with a Strong Track Record Kitti Khongkhatthanyakorn Head of Production Warin Thanathawee Co-founder & Chief Design Officer David McIntyre Chief Commercial Officer Belinda Vinke Chief Brand Officer Kiattipong Arttachariya Co-Founder & Chief Strat
Slide 8: Zapp at a Glance: Key Achievements to Date
Zapp at a Glance: Key Achievements to Date Highly Experienced Team Delivered Results In-Time and On-Budget 2019 2020 2021 2022 Point-of-Sales rollout mobilized (Approx. 200 reseller applications received worldwide) Receivables financing obtained Contract Manufacturing Agreement signed i300 proof-of-
Slide 9: Taking Advantage of Significant Trends
Taking Advantage of Significant Trends P2W Market ~$130bn and Expected to Grow with Accelerating Adoption of EVs EV Market $130 $224 ICE2 Market EV Penetration 21% 29% 13% CAGR 8% CAGR Market value 1 ($bn) Source: Fortune Business Insights, Zapp estimates Internal Combustion Engine. 60m units 76m un
Slide 10: Product Differentiation
| (Fa PRODUCT DIFFERENTIATION
Slide 11: Largely Untapped $130bn Electrification Opportunity
EVP2W Companies within Pure-Play EV Landscape Largely Untapped $130bn Electrification Opportunity High Utility 3 Moderate Utility 3 High-Performance 2 Two-Wheel EV Market Highly Fragmented Four-Wheel EV Markets Passenger Vehicles Commercial Vehicles Global TAM (2022): $130bn 1 Moderate-Performance 2
Slide 12: New Design and Unique Product Positioning
New Design and Unique Product Positioning High-Design, Lifestyle/Quality Proposition, creating a new category for Advanced Urban Mobility Riders Delivery/Utilitarian Proposition Lifestyle/Quality Proposition High-priced Leisure Proposition Typical Pricing Characteristic Obsolete performance and dyna
Slide 13: Zapp is in the Sweet Spot for Transitioning European Bikers
Zapp is in the Sweet Spot for Transitioning European Bikers Zapp’s positioning appeals to both upsizing ICE step-through buyers and downsizing ICE step-over buyers Top 10 Best-selling ICE Motorcycles in Largest European Market1 WAP3 €7,515 TCO2 €13,225 Step-Through/Scooter Adventure Class i300 2021
Slide 14: Fit for Purpose, Great Value for Performance
Brand Model 0-30 mph (0-48 km/h) Acceleration Vehicle Weight Power (Peak) Price 1 EU Presence Removable Battery Removable Battery Weight 2.3sec 264 lbs (120 kg) 14kW $7,107 13 lbs (6 kg) n/a 431 lbs (195 kg) 60kW $15,499 - - 2.6 sec 510lbs (231 kg) 31kW $14,180 - - n/a 287lbs (130 kg) 4kW $7,999 - -
Slide 15: Innovative True Load-Bearing Exoskeleton
Innovative True Load-Bearing Exoskeleton Basis of Zapp’s Design DNA Patent-Pending Innovative Exoskeleton Benefits Reduces overall components Simplifies manufacturing assembly Lowers weight and center-of-gravity Integrates brand’s design DNA Higher margins due to fewer parts Readily scalable Company
Slide 16: Eliminate Range Anxiety, Charge Anywhere
Eliminate Range Anxiety, Charge Anywhere Unique Independent, Ultra-Lightweight Portable Dual Battery Packs that Operate Independently Charge Anywhere Uses any standard 220V/110V wall socket No swapping at kiosks No designated charging network needed No at-home wall charging equipment necessary Perfo
Slide 17: Zapp's Unique Positioning in Battery Pack Solutions
Zapp’s Unique Positioning in Battery Pack Solutions High Performance Independent Battery Pack Solution Designed for Urban Use Swapping-Dependent EVP2W Brands Non-Removable Battery EVP2W Brands SBMC 3 Zapp’s charging time when using Zapp’s fast charger. Muvi’s charging time is based on 54.6v 10A dual
Slide 18: Gen-2 Sustainability
Gen-2 Sustainability Strong Emphasis on Full-Cycle Sustainability Design Sourcing Manufacturing End of life Battery Second Use Designed for fewer components and simplified assembly process Batteries can be refurbished for second use at end of life Low number of components and assembly steps NONA-car
Slide 19: Sustainable High-Performance Urban Mobility
Sustainable High-Performance Urban Mobility Step-Over (motorcycle) Performance in Step-Through (scooter) Form Factor Superbike Performance and Specifications High-tech materials, high-torque motor, upside-down forks, pushrod coil-over mono-swingarm rear suspension, 4-piston caliper, full floating di
Slide 20: Longer-Term Product Roadmap
Longer-Term Product Roadmap Future Product Platforms Aim to Fill All Key Targeted Segments with Differentiated Attributes Current Mid-Term Long-Term i300 i125 2 i100 2 Key Selling Features Gen-2 green, high design, very high performance Smaller version of i300 but with all key attributes Gen-2 green
Slide 21: Manufacturing / Supply Chain
MANUFACTURING / SUPPLY CHAIN
Slide 22: Balance Sheet-Light, Export Credit, Multiplier Model
Customer orders i300 online via Zapp website Zapp generates purchase order (PO) to Summit EXIM issues Letter of Credit to Summit to start production Summit procures components and assembles bikes and exports them to destination ports Zapper picks up and delivers i300 to customer in locale Through th
Slide 23: Design For Manufacturing (DFM)
Zapp’s Design For Manufacturing (DFM) Competitive ICE22W 3 Components Assembly Only 166 Components De-Risk Manufacturing and Procurement Complexity Only 82 Steps Optimize Manufacturing Process 2,000 Components Up to 150 Steps Assembly Time <30 Minutes 1 200+ Minutes Designed-In Maximization of EV Dr
Slide 24: Flex Manufacturing Through Simplified Assembly
Flex Manufacturing Through Simplified Assembly 4-Station, Non-Belt Production Line Capability to Achieve High Efficiency and Yield Flexibility to Increase or Decrease Volumes with no Minimum Commitments Station 3 Electrical Station 4 Bodywork Station 1 Chassis Station 2 Mechanical Capacity Summit’s
Slide 25: Blue Chip Suppliers
Blue Chip Suppliers Strategic Partners Provide Ease of Scalability Components from Blue Chip Suppliers Through Summit Composite Bodywork Exo- skeleton General Assembly Sea Freight Inland Premium-Quality Proprietary and Custom Components Battery Packs Swing-Arm Alloy Wheels Logistics Assembly
Slide 26: Manufacturing Outsourced to Global Tier-1 Firm
Manufacturing Outsourced to Global Tier-1 Firm Summit Group is a Large, Established Automotive Manufacturer in SE Asia Over 50 years of manufacturing know-how in automotive space Ability to produce its own tooling and R&D combined with periodic production enhancements All factories have passed IATF
Slide 27: Manufacturing Capacity Enabled by Contract Manufacturing and Receivables Financing
Manufacturing Capacity Enabled by Contract Manufacturing and Receivables Financing Basis Summit Capacity Expansion Roll-Out for Zapp 2023 2024 2025 2026 Factory Floor Space (ft2) 5,380 53,800 107,600 215,200 Assembly line 1 6 10 10 Manpower 14 42 65 80 Type of Process Fully Manual Process Partially
Slide 28: Go-to-Market Strategy
GO-TO-MARKET STRATEGY
Slide 29: Massive Global Powered Two-Wheeler Market
Massive Global Powered Two-Wheeler Market Targeted global rollout to capitalize first on brand positioning and then scale US: 0.6 million LATAM: 5.4 million ROW: 3.6 million EU: 1.2 million India: 15.9 million China: 21.4 million SE Asia: 12.4 million No EV winners established yet No EV winners esta
Slide 30: Favorable Regulatory Tailwinds for EV Adoption
Rome 2021 Bristol 2022 Oxford 2022 London 2023 Paris 2024 Amsterdam 2025 Athens 2025 Brussels 2025 Milan 2025 2021-2025 Favorable Regulatory Tailwinds for EV Adoption More and more cities, especially in Europe, are implementing fossil fuel prohibition and penalties for ICE P2W Low Emission Zone Affe
Slide 31: Initial Target Markets
Phase 1 Target Markets P2W Market Sizes in Target Markets in 2022 (# of Vehicles Sold Annually in Units) 1 Estimated motorcycle and scooter production volume in 2022. Source: ACEM Statistical Release.. Motorcycle on road population from the latest available various sources. Existing Population of P2
Slide 32: 2022 EV Sales Growth in Zapp's Initial Target Markets
2022 EV Sales Growth in Zapp’s Initial Target Markets Fast Growing Demand for Electric Two Wheelers EV motorcycle sales in EU almost doubled in 2022 EV motorcycle sales grew 88% from 2021, gaining higher portion in the total motorcycle sale in Europe +126% +83% +58% New Motorcycle Registrations in L
Slide 33: Phase 2 Target Markets
Phase 2 Target Markets Will look to scale after establishing our premium British branding in EU India Vietnam Thailand Indonesia P2W Market Sizes in 2022 (#of Vehicles Sold Annually in Units) ASEAN Source: Indiatimes (data ended in March 2023) Source: autospinn, autofun, dataindonesia 15,862,087 1 1
Slide 34: Carefully Targeted Budgeting
Carefully Targeted Budgeting Sustained digital push, lifestyle media, influencers and experiential marketing Illustrative Marketing and Rollout Spend Breakdown SEO is key to acquire first look Supported by owned media platforms and content Backed up earned media platforms and content Physical experi
Slide 35: Leveraging Brand Assets
Leveraging Brand Assets Design and product differentiation A’Design Winner 2020 Silver European Product Design Award Silver Prize Winner 2019 Muse Award Gold Winner 2020 Good Design Winner 2020 German Design Award Winner 2023 Australian Good Design Awards Winner 2022 Red Dot Design Award Winner 2023
Slide 36: Omni Sales Channels to Maximize Volume Growth
Omni Sales Channels to Maximize Volume Growth Retail Point of Sales (Agency Model) Authorized Resellers Online Resellers / Influencers Full-stack E-Commerce System Serve as a physical retail point-of-sales (POS) for some customers who want human contact Approx. 200 applications submitted by Authoriz
Slide 37: Drop-Ship-Direct-To-Customer
Drop-Ship-Direct-To-Customer Dealership Model Eliminated Eliminates the dealership model and allows Zapp to control a high-quality user experience, including fixed pricing Complements the personalization strategy, avoids inventory build-up, both at the POS and at Zapp, as part of our asset-light mod
Slide 38: After-Sales Care Through Our Zappers
After-Sales Care Through Our Zappers “We Come to You” Branded Zapper Vans Expected to Operate After-Sales Care as well as Initial Deliveries to Customers Zapp franchised and trained technicians Zapper vans expected to be owned and operated by individual franchisees Fully-equipped van designed by Zap
Slide 39: Thank you
Thank you Design-Led Electric Personal Urban Mobility Solutions
Zapp Electric Vehicles Group — Investor Presentation (July 2023) on 6ix