Northern Genesis Acquisition Corp. II
Northern Genesis Acquisition Corp. II — Embark Trucks — SPAC Merger (June 2021)
47 slides from Northern Genesis Acquisition Corp. II's SPAC merger presentation, Jun 23, 2021
Slide 1: Investor Presentation June 2021
INVESTOR PRESENTATION June 2021
Slide 2: Disclaimer
Disclaimer This confidential presentation (the “presentation”) is being delivered to you by Embark Trucks, Inc . (“Embark”) and Northern Genesis Acquisition Corp . II (“SPAC” or “Northern Genesis II”) in connection with its potential business combination of Embark and SPAC and the offering of the se
Slide 3: Founder and CEO With Extensive Robotics Experience
Founder and CEO With Extensive Robotics Experience… … And a Powerful Vision for the Future Robotics World C h am p i o n Built first self - driving vehicle in Canada YC o mb i n a tor W16 Thiel Fellow Built 11 Robotics Pl a t f orms To build a world where consumers pay less for the things they need,
Slide 4: Today's Presenters
Today’s Presenters Alex Rodrigues Co - Founder and CEO of Embark 4 Richard Hawwa CFO of Embark Ian Robertson Director and CEO of NG II
Slide 5: Northern Genesis Acquisition Corp. II
Northern Genesis Acquisition Corp. II • Northern Genesis Acquisition Corp. II (“NGII”) is an NYSE listed SPAC that priced its $414M IPO on 1/12/2021 • An “operator - backed” SPAC whose management team founded and built Algonquin Power & Utilities Corp to a $12B NYSE listed renewable energy and utili
Slide 6: Embark Overview
\ EMBARK Overview
Slide 7: Embark's Business Model Offers Meaningful Operational Savings
Embark’s Business Model Offers Meaningful Operational Savings and Collaborates Rather than Competes with Carriers is an AV SaaS Company Focused on Trucking Embark partners with carriers (and private fleets), who pay a per - mile subscription fee for Embark’s software Guardian - Embark’s cloud - base
Slide 8: Longest-Running Self Driving Truck Program
is the Longest - Running Self Driving Truck Program (1) 2016 Founded 2017 Coast - to - Coast Industry First Completed the first autonomous truck coast - to - coast drive Execution First to bring shipper and carrier together to execute transfer point operation 2018 100,000 Miles Industry First Crosse
Slide 9: Embark's Deep Team Has Industry Leading Experience
’s Deep Team Has Industry Leading Experience Elaine Chao Former Secretary of Transportation Former Secretary of Labor Ma tt hew Ocko Co - Managing Partner Patrick Grady Partner, Head of U.S. Growth Investing Alex Rodrigues Richard Hawwa Mike Reid Brandon Moak Somudro Gupta Ajith Dasari Gilbran Al v
Slide 10: Focused on Building the Best Self-Driving Software
is Focused on Building the Best Self - Driving Software Hig h - Level Arc h itectu r e Cameras Deep Le ar ning Segmentation Object Fusion Pr ediction and Planning Trajectory Gene r ation Throttle LiDARs Radars Deep Learning Bounding Boxes Map Localization Vision Map Fusion Trajectory Planning Contro
Slide 11: Proprietary Active Learning System Drives Rapid Improvements
Proprietary Active Learning System Drives Rapid Improvements Edge Cases Irre gula r Ob j ects Irregular Conditions • Finding and solving edge cases is critical to the deployment of safe self - driving • Our Active Learning pipeline is fed by uploading fleet data to our cloud - based selection engine
Slide 12: Vision Map Fusion & Scene Understanding Enable Robustness
Vision Map Fusion & Scene Understanding Enable Robustness • Using proprietary techniques, Vision Map Fusion uses a non - linear optimization approach to fuse local vehicle poses with global map geometry in real - time, enabling on - the - fly map corrections • Making map corrections in real - time a
Slide 13: Interactive Planning with Data Driven Predictions
Erik Ward • PhD Research on Interaction Aware Planning for Self - Driving • KTH Royal Institute of Technology • Scania Self - Driving Truck Research • • • Each scenario simulates the actions and interactions of the truck and other relevant vehicles in the environment Based on the observed and predic
Slide 14: Our Emphasis on Safety
Our Emphasis on Safety Embark Has Driven More Miles Without a DOT Reportable Incident Than Any Other Self - Driving Truck Player (1) Over 1 million real - world miles driven without a DOT reportable safety incident Hardware • Truck - centric hazard analysis • Exhaustive benchtop and integrated on -
Slide 15: Embark's Technology Expected to Drive Significant Value for Carriers
’s Technology is Expected to Drive Significant Value for Carriers Thr e e Fa c tors D r i v ing Ca r rier Adoption • Expected to improve quality of life for drivers by being home every night Expected to Improve Competitiveness for Shippers • Improved Sustainability: Up to a 10% increase in fuel effi
Slide 16: Top Shippers and Carriers are Partnering with Embark
Top Shippers and Carriers are Partnering with Embark Partners are investing to prepare their businesses to scale Embark autonomous trucks Embark is working with shippers and carriers to analyze their nationwide freight networks at a lane level and develop detailed rollout plans for converting portio
Slide 17: Carrier and OEM Market Dynamics
• Aligned with the reality that most major carriers run mixed fleets — Nearly 90% of top 25 carriers run 2+ OEMs and ~50% run 3+ OEMs • Carriers are the ultimate decision makers on component selection Market Dynamics Supplier 1 Supplier 2 S uppli e r 3 S uppli e r 4 Component OEM 1 OEM 2 Carrier OEM
Slide 18: Embark Universal Interface (EUI)
Specs / Module Designs Component Package APIs Interf a c e Package Embark Universal Interface (EUI) • Standardized sensor and compute systems determined through thousands of hours of design, testing and analysis • Custom flexible physical, electrical and software interfaces enable platform - agnosti
Slide 19: Vv
19 Vv
Slide 20: Enhances the Freight Ecosystem and Benefits all Participants
Additional demand for autonomous - related components Improved economics, alleviate driver shortage Increased efficiency, improved reliability, sustainability and safety Enhances the Freight Ecosystem and Benefits all Participants Carriers Ship p ers Embark Universal Interface, new revenue streams O
Slide 21: Choosing the Right Strategy in AV Trucking
Recent Public Transactions Choosing the Right Strategy in AV Trucking 21 (1) Embark and TuSimple select investors represent investors with 5%+ ownership. Plus.ai includes Board Investors due to lack publicly available shareholder ownership information (2) Traton and Navistar are in the process of co
Slide 22: Financial
\ EMBARK Financial
Slide 23: Trucking Market Represents Significant Opportunity
Trucking Market Represents Significant Opportunity $700 billion truck freight market represents a significant opportunity (1) Delivers potential value to not only carriers, but the entire ecosystem Fragmentation of various constituents unique to the trucking industry Clear and present problem with d
Slide 24: How Embark Expects to Commercialize Its Business
How Expects to Commercialize Its Business Two Route Models ~90 Billion Semi - Truck Miles ~210 Billion Incremental Semi - Truck Miles Hu m a n Dr i ve r Autonomous Driving • Embark shares a percentage of the savings with a carrier as a result of utilizing Embark’s software solution • Implies a $ / m
Slide 25: Financial Model Framework
Embark / Northern Genesis II Financial Model Framework Autonomous Truck Miles Driven (1) Human Driver vs. Embark Driver Total Driver Cost Per Mile Total Vehicle Cost Per Mile $0.94 $0.96 $0.82 Human Driver Embark Driver Net Savings $0.80/Mile $1.76 (2) $0 . 9 6 Expected Embark Penetration as a % of
Slide 26: Compelling Unit Economics for Both the Carrier and Embark
Compelling Unit Economics for Both the Carrier and 500 Miles: Net Revenue $0.31/Mile 1000 Miles: Net Revenue $0.38/Mile Guardian System Cost of Goods Sold (1) $0.12/Mile Guardian Employee Includes: • Monitor Bandwidth Cost • Update Bandwidth Cost • Update Subscription Cost Includes: • Salaries • Ben
Slide 27: Financial Projections
Financial Proje c tions Autonomous Miles Driven (miles in millions) Revenue ($ in millions) 8 6 7 2, 7 71 2 0 2 4 E 2 0 2 5 E Gross Profit ($ in millions) 5 8 4 1, 9 15 2 0 2 4 E 2 0 2 5 E Margin 67% Source: Embark / Northern Genesis II Management 69% 1.1% 3.3% Phase 2 ~174 Billion+ Miles Phase 1 ~6
Slide 28: Valuation
\ EMBARK Valuation
Slide 29: Embark Leads the Industry in Key Milestones
Source: Company Presentations, Pitchbook, Bank of America, Piper Sandler, Cowen, RBC Capital Markets, Baird and Morgan Stanley Equity Research Reports (3) Represents post - money equity value (4) TuSimple market capitalization based on offer price at IPO of $40 per share and shares outstanding of 21
Slide 30: Slide 30
Slide 31: Appendix – Technology Roadmap
Appendix – Technology Roadmap
Slide 32: Our Technology Achievements and Roadmap to Driver Out
Our Technology Achievements and Roadmap to Driver Out Bought First Truck Lane K ee p i n g Lane Ch a ng es Cut - Ins M er g es Ve h icle o n Shoulder Night Driving S u rface Streets Stop and Go Remote M on i t o r in g Inclement Weather (excl. s no w ) Construction Past Technology Milestones and Acc
Slide 33: Major Initiatives Expected To Be Announced Over the Next Months
Major Initiatives Expected To Be Announced Over the Next 12 Months Embark is in advanced discussions that will further support the technology advancement and commercial i zati on timeline Manufacturing Partners to enable Embark Universal Interface (EUI) as an Option Partner Development Program Reser
Slide 34: Appendix — Regulations
\ EMBARK Appendix — Regulations
Slide 35: Regulatory Tailwinds
Regulatory Tailwinds Legislation Permits: Autonomous Commercial Operations Autonomous Testing In Progress Current State Regulatory Environment • Current regulatory environment is favorable for autonomous trucking • Today, 43 states allow autonomous truck testing, and 24 states allow autonomous truck
Slide 36: Embark is Leading the Way on Policy
• Co - chair of US Chamber AV Working Group (along with Intel) • Co - chair of SVLG AV Working Group (along with General Motors) • Founding member of Trucking group @ Self - Driving Coalition (leading AV industry group) • Only truck - specific board member on the Self - Driving Coalition for Safer S
Slide 37: Appendix — Coverage Map
\ EMBARK Appendix — Coverage Map
Slide 38: Coverage Map Supercharges Scale-Up
Carriers operate self - driving trucks between highway - adjacent locations on Embark coverage map Coverage Map Supercharges Scale - Up Number of start/stop locations expands rapidly by adding ecosystem real - estate to the coverage map: • Current truck stops act as ideal transfer points that can be
Slide 39: Real Estate Partners Accelerate Expansion
Real Estate Partners Accelerate Expansion 39 Leveraging the Strengths of Potential Real Estate and Retail Players, including PFJ, will Dramatically Decrease Time to Market Example: PFJ’s Network • 800+ highway adjacent sites located near freight areas • Purpose built for class - 8 truck traffic • On
Slide 40: Appendix – Financial Model (Continued)
Appendix – Financial Model (Continued)
Slide 41: Mile Detail and Pricing Detail
41 Mile Detail (1) Pricing Detail (miles in millions) Total Cost Per Mile Human Driver Embark Driver Driver - Based Driver Wages $0.56 Driver Benefits 0.17 Driver Overhead Costs 0.09 Total Driver Costs 0.82 Vehicle - Based Total Vehicle Costs 0.94 0.96 Total Costs $1.76 (3) $0.96 Detail P&L ($ in mi
Slide 42: Supported By Existing Partners and Pipeline
~32,000 Trucks Purchases ~ 8k trucks annually ~3 Billion hu m a n - dr i v en freight miles annually Supported By Existing Partners and Pipeline 42 Existing Partners ~4,600 Average Fleet Size (4) ~30 Billion Human Driven Freight Miles (5) Top 100 (~10% of market) Embark is Currently Partnered With H
Slide 43: Embark's Business Model is Validated by Partners
’s Business Model is Validated by Partners 43 Mesilla Valley Transportation has a demonstrated history of identifying, testing and deploying new and innovative technology to maintain an edge in our competitive industry. With the Embark Partner Development Program, we see an opportunity to utilize th
Slide 44: SaaS Business Model Enables Embark to Scale Efficiently
SaaS Business Model Carrier/Shipper Partners Enable Embark to Scale Efficiently by Integrating Into the Current Freight Ecosystem • High margins • Recurring revenue • Economies of Scale Compelling software - as - a - service economics • Embark can focus on what we do best: making state - of - the ar
Slide 45: Proceeds Expected to Fund the Business Plan Through Commercialization
Proceeds From the Proposed Transaction Are Expected to Fund the Business Plan Through Commercialization in 2024 45 Expected Use of Proceeds Expanding Coverage Map 5% Headcount 70% On - Road Testing 13% OEM Co - Development 12% Source: Embark / Northern Genesis II Management
Slide 46: Pro Forma Valuation and Transaction Overview
8% 4% 2% 86% NGAB Shareholders PIPE Investors Founder Shares (4) Existing Embark SH (5)(6)(7) Pro Forma Valuation 46 • After giving effect to the transaction (1) , Combined Co. will have $613mm of cash (3) to pursue its go - to - market strategy and consolidate its market leadership position • $4.25
Slide 47: Slide 47