Workhorse Group Inc. Investor Presentation

Transcription

Workhorse Group Inc.
Investor Presentation
August 2016
© 201 Workhorse Group Inc. All Rights Reserved.
© 2016 Workhorse Group Inc. All Rights Reserved
INDUSTRY DATA AND FORWARD LOOKING STATEMENTS
Workhorse obtained the industry and market data used throughout this presentation from our own research, internal surveys and studies
conducted by third parties, independent industry associations or general publications and other publicly available information. Independent
industry publications and surveys generally state that they have obtained information from sources believed to be reliable, but do not
guarantee the accuracy and completeness of such information. Forecasts are particularly likely to be inaccurate, especially over long periods
of time. We are not aware of any misstatements in the industry and market data we have presented herein, but estimates involve risks and
uncertainties and are subject to change based on various factors beyond our control.
This report may contain forward-looking statements that reflect current views with respect to future events. Any such statements are subject to
risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. For more
Information on the risk factors related to these forward-looking statements, please refer to Workhorse’s Annual Report, Quarterly Report, and
other periodic regulatory filings as filed with the SEC.
1
WORKHORSE AT A GLANCE
Workhorse (“WKHS” or “the Company”) is a leading manufacturer of last-mile, cost effective delivery systems
FOUNDED: 2007
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HEADQUARTERS: CINCINNATI, OHIO
EXCHANGE: NASDAQ
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EMPLOYEES
AND
CONTRACTORS: 80
TICKER SYMBOL: WKHS
• Diverse product offering with strong value proposition for its customers
o Workhorse Medium-Duty Step Chassis: E-Gen – Range-Extended Electric Vehicle and
E-100 – Full Electric
o Metron Telematics: cloud-based, database-driven telematics platform
o HorseFly Delivery Drone: proprietary unmanned aerial system designed for the
package delivery market and other applications
• Current capacity to produce 60,000 units per year
o [325,000] square feet of manufacturing capabilities in Cincinnati, Ohio and Union
City, Indiana
• Proven deployment with premier delivery providers
o WKHS provides range-extended electric vehicles for UPS, FedEx and Alpha Baking
Company, and is a pre-qualified supplier for USPS
• Proprietary technology protected by a significant patent portfolio
o Six granted patents, with two additional patents pending
• Seasoned management team with expertise in technology companies and the automotive
industries
2
ATTRACTIVE ECONOMICS
Cost Comparison - Gas vs. Workhorse E-Gen Total Cost-of-Ownership:
$0.11 per kWh
$53K Maintenance
$2.50 Go-Forward Price
$120K Maintenance
E-GEN Saves Fleets > $140,000 vs. Gas Over 20 Year Life Cycle
$141,190 Savings
3
OVERVIEW OF WORKHORSE’S PRIMARY PRODUCT LINE
Medium-Duty Step Chassis
Innovative design and attractive price point positions Workhorse as a top competitor in this market segment.
The Workhorse strip chassis is offered in two battery-powered electric models.
E-GEN – Range-Extended Electric Vehicle
• EPA-approved battery-electric vehicle with on-board generator
• Revolutionary patent-pending system incorporates a BMW i3 REx solution to add
charge to the battery pack when the pack falls below the optimal level of charge
• Workhorse E-GEN will deliver the equivalent of 26 mpg and beyond compared to the
6 mpg of conventional fleet operators, significantly reducing operating costs
• Utilizes a smaller, less expensive battery pack reducing purchase price when
compared to competitors
• Eliminates customer concerns over range anxiety
• Achieves an industry first positive return on investment in three years without
government incentives
• Optional: Cloud-based, database-driven telematics monitoring tool that provides fleet
operators real-time diagnostics and ultimate route efficiency
Underlying both the E-GEN
and the E-100 electric trucks
is Workhorse’s innovative battery pack.
Featuring world-class Panasonic
18650 cells, the same type of cells
used in the Tesla Model S
E-100 - Full Electric
• Patent-pending designs developed by Workhorse
• Leverages the electric drivetrain with a mass-produced chassis to deliver a highwaycapable, 100% electric, zero-emission vehicle that delivers approximately 100 miles
meeting the range and performance requirements of large commercial fleets
• Approved for incentive funding in New York, California, and Chicago
• Optional: Cloud-based, database-driven telematics monitoring tool that provides fleet
operators real-time diagnostics and ultimate route efficiency
Coupled with Workhorse’s proprietary battery
management system, the battery pack can be sized to
meet the varying range requirements of fleet customers
4
WORKHORSE W88 CHASSIS LAYOUT – E-GEN ILLUSTRATION
Workhorse E- GEN patent-pending powertrain is unmatched by any other powertrain supplier.
BMW REx - 647cc; 2-cyl. Internal
combustion engine configured as
on-board Generator
2100nm Electro Magnet Motor
Direct-Drive = No Transmission
Workhorse W88
Straight-rail Chassis
Rear axle
with integrated
parking brake
Panasonic 18650 Li-ion Battery
Pack with integrated
BMS and HVIL protection
and standard J1772 Charger
5
WORKHORSE W88 CHASSIS LAYOUT – E-100 ILLUSTRATION
Workhorse E- 100 patent-pending powertrain is unmatched by any other powertrain supplier.
Workhorse W88 Chassis
19,500lb. GVWR
Battery Heat
Exchanger
Park Pawl Housing
200 kW / 2100 N-m
Electric Motor
120 kWh
Li-Ion Battery Packs
with Integral BMS and HVIL Protection
6
WORKHORSE METRON TELEMATICS PERFORMANCE MONITOR
Workhorse Developed Metron Telematics
The telematics system and associated hardware
installed the Workhorse vehicles are designed to
monitor the CAN network traffic for specific signals.
These signals are uploaded along with GPS data to
a Workhorse server facility where the data signals
are tracked at ten (10) second intervals while driving
and during the E-GEN electricity generating process
and at sixty (60) seconds during a plug-in charge.
The real-time data is stored in a database as it
arrives and delivers updates to clients connected
through the web interface.
Clients are given login credentials (username and
password) to the telematics website can monitor the
performance and location of the vehicles. Group
privileges can be configured to limit access to clientspecific vehicles securing the vehicle data so clients
can only view their vehicle data. Administrator
privileges allow all data for all clients to be
monitored and viewed.
7
OVERVIEW OF WORKHORSE’S UNMANNED AERIAL SYSTEMS
HorseFly Delivery Drone
Engineering the future of parcel delivery aviation
HorseFly™ Unmanned Aerial System (UAS) is designed for the package delivery
market and other commercial applications
• Designed to meet the existing and anticipated future FAA guidelines
• Differentiated from other UAS’s as it works in tandem with a Workhorse electric truck
• Delivers packages, loaded en-route by the driver, to remote locations while the driver
continues on the main delivery route, saving the fleet operator much of the fuel cost of
the most expensive miles
• HorseFly rejoins the truck at its new location once its delivery is completed
• HorseFly recharges from atop the Workhorse truck
• Superior to other delivery UAV’s operating plans, where the package is loaded at the
warehouse and must return to the warehouse once the delivery is completed
• Partnered with the University of Cincinnati’s Department of Aerospace Engineering and
Engineering Mechanics to develop HorseFly
8
OVERVIEW OF WORKHORSE’S UNMANNED AERIAL SYSTEMS (UAS)
Workhorse UAS Drone Delivery Process
Select the link below to view the HorseFly Delivery Process in Action
9
ELECTRIC VEHICLE INCENTIVES
Workhorse’s Full Electric Vehicles are approved for State Government incentive funding
The NYT-VIP is an important partnership between the New York State Energy Research and Development Authority (NYSERDA),
New York State Department of Transportation (NYSDOT), New York City Department of Transportation (NYCDOT), and CALSTART.
The program offers incentives for truck purchasers operating in 30 counties in the state. The Workhorse E-100 qualifies for a
$60,000 voucher that reduces the purchase price to $73,000. Vehicles destined for New York operations are equipped with a cold
weather package for maintaining battery performance.
The HVIP is designed to offset much of the cost of eligible hybrid and battery-electric medium and heavy-duty vehicles using a
simplified purchase voucher. The Workhorse E-100 qualifies for a base incentive of $90,000 under the HVIP in California.
The first three vehicles purchased by a fleet also receive an additional incentive of $10,000 per vehicle
Offers $11,000,000 in incentives to fleets interested in shifting from diesel to zero-emission vehicles. Vouchers are available for
fleets operating in the city of Chicago and six surrounding counties.
Workhorse E-100 All-Electric Walk In Vans qualify for an incentive of $60,00 and are equipped with a CARB-certified, onboard, fuel-fired heating system and a cold weather package for maintaining battery performance.
Incentives worth $32,800 are also available to customers that wish to purchase the Workhorse E-GEN electric vehicle.
10
COMPETITIVE LANDSCAPE
Workhorse Powertrain vs. Other Manufacturers
Workhorse’s ability to meet fleet performance specifications and reduce vehicle lifecycle costs affords it significant advantages over competitors offerings.
Key Features and Innovative Highlights
• Workhorse is currently the only (to the best of our knowledge)
battery-electric, medium-duty OEM in the United States and is also
the only medium-duty, battery-electric public company.
• The EPA-approved E-GEN Workhorse truck configured with an onboard generator provides a unique solution to the medium-duty
truck market. This on-board generator is a game-changer for fleet
operators interested in reducing the lifecycle costs of their vehicles
Workhorse Powertrain vs. Other Manufacturers
Characteristics
Workhorse
Other Manufacturers
Durability
Built with an array of heavier duty
components for longer lifecycles
Some offer lighter design and build
quality, with shorter lifecycle
Design
Flexible design with choice of two
powertrains; E-GEN Emergency
Range and E-100 All Electric
No competing product
Environmental
Impact
EPA-approved E-GEN emergency
range electric medium duty truck
No competing product
Cost Efficiency
Lower fuel and maintenance costs
Lower initial investment but more
expensive total cost of ownership,
with higher fuel and maintenance
costs
• Workhorse trucks are purpose-built for the
package and product delivery market.
• Workhorse had an outstanding reputation for being inventive and
flexible enough to meet the changing needs of its key customers.
• Low to zero environmental impact
• Workhorse qualifies for financial incentives, such as those offered
in New York, California, and Chicago, to lower the purchase price
of an EV truck
Positive return on investment in four
years or less without government
incentives
11
MARKET OPPORTUNITY
Growth Strategy
Workhorse employs a thoughtful, long-term growth strategy based on market demand and cooperative partnerships with suppliers and innovators.
Category
• Step Van and Cab-over Strip Chassis
Total Market Size
in Units
• Estimated 12,000-15,000 Step Van units per year
• Estimated 100,000 Cab-over units per year
Revenue Streams
•
•
•
•
Competitors
• Ford and Freightliner gasoline and diesel trucks
Markets
•
•
•
•
•
•
Distribution Channels
Workhorse strip chassis
Battery-powered options
Recurring revenue from cloud-based software solutions (Metron Telematics)
Intellectual property licensing
Package and product delivery companies
Bakeries
Uniform and laundry services
Food services
Utilities
Special use industries (newspapers, municipalities, grocery delivery, etc…)
• 440 dealerships nationwide
12
CUSTOMER ORDERS AND PRE-QUALIFIED SUPPLIERS LIST
Clients and Prequalified Supplier Lists
Clients
• One hundred twenty-five (125) Workhorse E-GEN’s ordered by UPS on August 7, 2105.
• Two (2) Workhorse E-GEN’s acquired under a pilot program have performed very well delivering packages on routes for
UPS since April 2015
• Eighteen (18) Workhorse E-100 All-Electric vehicles delivered and on-route to UPS for the Houston-Galveston Area
• FedEx Express – (20) Workhorse range-extended vehicles replacing BMW i3 REx with Plug Power Hydrogen Fuel Cell – this
is part of the FedEx Express/DOE Hydrogen Fuel Cell Extended-Range Battery Electric Vehicle project, Award Number: DEEE0006522.
• Alpha Baking Company
 (5) Workhorse E-GEN’s ordered in February 2015
Pre-Qualified Supplier List
• United States Postal Service (USPS)
 On April 10, 2015, Workhorse was notified by the USPS of their selection as a pre-qualified supplier for the USPS Next
Generation Delivery Vehicle (NGDV) Program
 On March 8, 2016, Workhorse presented to the USPS Technical Evaluation Committee and responded to questions
regarding the RFP response
 NGDV is a $6B vehicle replacement program consisting of more than 180,000 USPS delivery vehicles
13
INTELLECTUAL PROPERTY
In addition to several patents, Workhorse received schematics, CAD files, design documents, bill of materials, and rights to all vehicles including the W22, W42, W62, W88 and
LF72 chassis. Workhorse also received documents and descriptions related to plant operations personnel, staffing and procedures.
Workhorse Technologies current and pending patents, service marks and trademarks:
D6069, 11/252220, US7717464
Abstract: A vehicle chassis assembly includes a frame assembly having a plurality of frame members connected together, a drivetrain, a suspension
system, and an exhaust system. The connection of the frame members provides a low-profile configuration for reduced step height and a kick-up
portion to allow ascent of steeper inclines. The frame further includes an exhaust pipe supported within a frame member and two castings bolted to
removable wheel arches. The exhaust pipe has a circular cross-section that changes to a rectangular cross-section near the back of the chassis
assembly.
D6053, 11/252219, US7559578
Abstract: A vehicle chassis assembly includes a frame assembly having a plurality of frame members connected together, a drivetrain, a suspension
system, and an exhaust system. The connection of the frame members provides a low-profile configuration for reduced step height and a kick-up
portion to allow ascent of steeper inclines. The frame further includes an exhaust pipe supported within a frame member and two castings bolted to
removable wheel arches. The exhaust pipe has a circular cross-section that changes to a rectangular cross-section near the back of the chassis
assembly.
D6070, 29/243129, D561079
Design patent for a vehicle header.
D6071, 29/243074, D561078
Design patent for a vehicle header.
2523653 (Canada)
Vehicle chassis assembly.
US 8541915 B2
A coolant fluid distributing manifold for a drive module in an electric motor drive assembly.
13/912289 (pending)
High-efficiency drive train utilizing two or more motors to derive unique torque profiles.
US 61/933350 (provisional)
Onboard generator drive system for electric vehicles that share an electric motor for both propulsion and generation.
14
SUMMARY
Competitive Advantages
• Proven market leader in manufacturing medium-duty trucks with battery-powered electric drivetrains
• Compelling Value Proposition
 Workhorse products provide breakthroughs in fuel and maintenance efficiency, and environmental impact
 Acquisition of the Workhorse plant and proprietary technological advancements allow Workhorse to enter the truck market for a fraction of the
estimated $500m investment to launch a new truck
 Electric vehicles are more cost effective than gas and diesel over the long term. Reduces fuel costs by achieving a 400% improvement in fuel
efficiency
• Scalable
 Capacity to produce 60,000 units per year
Sizable
Addressable
Market
• 6 issued and 2 pending or provisional patents
• New York Truck VIP
• California HVIP
• Drive Clean Chicago
Patents and Achievements
• Addressable attractive margin markets: Significant opportunity for recurring revenue in the $1 billion per year strip chassis market
• Game changing technology validated by state energy authorities and lead customers
• Strategic partnerships with industry leaders and transportation technology pioneers
15
LEADERSHIP
Management Team
Stephen Burns,
Founder, CEO &
Director
Julio Rodriguez,
CFO
Don Wires,
Director of
Engineering
Duane Hughes,
President
Marty Rucidlo,
Vice President of
Manufacturing
Board of Directors
Raymond Chess,
Chairman
Gerald Budde,
CFO, Assured
Neace Lukens
James Taylor,
Former CEO,
Hummer
H. Benjamin Samuels,
Co-President, Victory
Packaging
Advisors
Bill Richardson,
Former Governor
of New Mexico
16
CONTACT INFORMATION
For more information, please contact:
Steve Burns
Duane Hughes
Julio Rodriguez
Founder & CEO
President
Chief Financial Officer
100 Commerce Drive
Loveland, OH 45140 USA
100 Commerce Drive
100 Commerce Drive
Office: 513.360.4704
Office: 513.360.4704
Mobile: 513.322.0052
Office: 513.360.4704
Mobile: 678.428.6558
Email: steve.burns@Workhorse.com
Email: duane.hughes@Workhorse.com
Email: julio.rodriguez@Workhorse.com
Website: www.workhorse.com

Workhorse Group Inc. Investor Presentation

Transcription

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