INVESTOR PRESENTATION SEPTEMBER 2020 - ElectraMeccanica Vehicles Corp. NASDAQ: SOLO
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
INVESTOR PRESENTATION SEPTEMBER 2020 ElectraMeccanica Vehicles Corp. NASDAQ: SOLO
D I S C L A I M E R
Forward-Looking Statements
This presentation (the “Presentation”) by ElectraMeccanica Vehicles Corp. (the “Company”) provides a general overview of corporate and financial information regarding the Company. The information has been presented in
summary form and does not purport to be complete. It is not intended for the following information to be construed as legal, financial, tax or investment advice. Some of the statements contained in this Presentation are
“forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) which are based upon the Company’s current expectations, estimates, projections, assumptions and beliefs made by
management. Such statements can be identified by the use of forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, or “anticipate”, “potential”, “proposed”, “estimate” and other similar
words, including negative and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussions of strategy. Forward-looking information include estimates, plans,
expectations, opinions, forecasts, projections, targets, guidance, or other statements that are not statements of fact. Such forward-looking information is made as of the date of this Presentation, or in the case of documents
incorporated by reference herein, as of the date of each such document. These statements and information are only predictions based on current information, knowledge and reasonable assumptions, some of which may be
attributed to third party industry sources. Such forward-looking information should not be in any way construed as guarantees of future performance and actual results or developments may differ materially from those in the
forward-looking information. Accordingly, readers should not place undue reliance on such forward-looking information, as there can be no assurance that the plans, intentions or expectations upon which they are based will
occur. By its nature, forward-looking information involves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections
and other forward-looking information will not be realized. Forward-looking statements are based on certain assumptions and analyses made by the Company in light of the experience and perception of historical trends,
current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. In making the forward-looking information included in this Presentation, the
Company has made various material assumptions, including, but not limited to: (i) obtaining the necessary regulatory approvals or permits; (ii) that regulatory requirements will be maintained; (iii) general business and economic
conditions; (iv) the Company’s ability to successfully execute its plans and intentions; (v) the availability of financing on reasonable terms; (vi) the Company’s ability to attract and retain skilled staff; (vii) market competition;
(viii) the products and technology offered by the Company’s competitors; and (ix) that the Company’s current good relationships with its service providers and other third parties will be maintained. While management
considers these assumptions to be reasonable, based on information available, they may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. These risks, uncertainties
and other factors include, but are not limited to risks associated with general economic conditions; adverse automotive industry events; marketing costs; loss of markets; future legislative and regulatory developments involving
electric vehicles; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; the electric vehicle industry in North America generally; tariffs and other
international trade matters; the ability of the Company to implement its business strategies including expansion plans; competition; currency and interest rate fluctuations, and the other risks discussed under the heading “Risk
Factors” in the Company’s most recent annual report on Form 20-F and subsequent quarterly reports included in Form 6-K filed with the United States Securities and Exchange Commission (the “SEC”) and available on EDGAR
at www.sec.gov. The foregoing factors are not intended to be exhaustive. The Company does not intend, and does not assume any obligation, to update the forward-looking information, except as required under applicable
securities legislation. For more information on the Company, readers should refer to www.sedar.com for the Company’s filings with the Canadian securities regulatory authorities and to www.sec.gov for the Company’s filings
with the SEC. This Presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company.
© ElectraMeccanica Vehicles Corporation – 2020
2
NASDAQ: SOLO
C O M P A N Y O V E R V I E W
ElectraMeccanica Vehicles Corp.
• ElectraMeccanica is a Canadian designer & manufacturer of electric
vehicles (EVs) designed to revolutionize commuting, delivery and shared
mobility
• The Company’s flagship vehicle is the innovative, purpose-built, single-
seat electric vehicle called the SOLO
• The SOLO provides an exciting driving experience that is unique, trendy,
fun, affordable & environmentally friendly
• Asset-light contract manufacturing model with strategic partner Zongshen
Industrial Group – now in production
• Highly experienced management team with significant beneficial insider
ownership (>27%)
• Key geographic locations:
▪ Vancouver, B.C.: Company HQ and R&D facility
▪ Los Angeles, CA: Initial retail locations and service / distribution
center
▪ Chongqing, China: Contract manufacturing with strategic partner
and wholly-owned subsidiary (EMV Automotive Technology, Inc.)
3
NASDAQ: SOLO
R E D E F I N I N G T R A N S P O R T A T I O N
SOLO Drive
Micro Mobility SOLO Drive Passenger Vehicles
Lack of safety or protection features Purpose-built solution for Expensive and higher cost of ownership
Users are exposed to the elements the modern urban Oversized powertrain and vehicle for
majority of uses
Minimal technology integration environment-The SOLO
Very limited range ECO System Requires dedicated Level II or Level III
charging infrastructure
4
NASDAQ: SOLO
C O N T I N U O U S I M P R O V E M E N T
Evolution of the SOLO
Prototype Pre-Production Production
• 64 prototype vehicles produced • 50 pre-production SOLO’s produced • Capable of producing up to 20,000 SOLOs
annually
• Hand-built in ElectraMeccanica’s Vancouver • Manufactured by our strategic partner,
facility Zongshen Industrial Group, in China • Manufactured out of dedicated SOLO
facility by Zongshen
• Delivered to “early adopters” and been in • Deployed throughout the U.S., Canada &
circulation for 3+ years without incident China for final on-road validation testing • Production began August 26, 2020
2015 – 2017 2019 – 2020 2020+
5
NASDAQ: SOLO
I N T R O D U C I N G
The SOLO
• The SOLO is a purpose-built, single-seat electric vehicle, providing a driving experience
that is unique, trendy, fun, affordable & environmentally friendly
• The SOLO’s unique features include:
▪ 100 mile range per charge
▪ 80-mph top speed
▪ Fully charged in under 4 hours (using 220V)
▪ Ability to charge on common electrical outlets (110V) or utilize Level II charging
stations (220V)
▪ Technology enabled – Bluetooth stereo, heated seats, rear-view camera
▪ Minimal maintenance - 99% fewer parts than ICE vehicles
▪ Very attractive price point - $18,500
• The SOLO has undergone safety testing beyond what is required for its vehicle class
and features numerous safety and drivability upgrades, including:
▪ Electronic power steering (EPS)
▪ Torque-limiting stability control
▪ Robust impact and roll protection
▪ Wider front track for enhanced drivability
6
NASDAQ: SOLO
5 Y E A R
True Cost of Ownership Comparison
SOLO Mini Cooper SE Nissan Leaf EV Chevy Bolt EV Tesla Model 3
Base MSRP $18,500 $30,750 $31,600 $36,620 $38,990
Federal Tax Credit 0 (7,500) (7,500) 0 0
State Rebate (California) (750) (2,000) (2,000) (2,000) (2,000)
Insurance 4,080 4,177 5,025 5,520 4,006
Maintenance 1,459 1,300 2,754 1,300 1,100
Repairs 444 508 601 358 100
Taxes & Fees 1,240 1,967 2,173 2,810 2,635
Financing 2,886 5,258 5,605 5,803 5,905
Depreciation 9,068 15,067 26,297 21,081 19,405
Level 2 Charger 0 2,000 2,000 2,000 2,000
Fuel 1,856 2,440 2,547 2,440 2,549
®
True Cost to Own $20,283 $23,217 $37,502 $39,312 $35,700
TOTAL COST $38,783 $53,967 $69,102 $75,932 $74,600
Premium over SOLO 39.2% 78.2% 95.8% 92.4%
Source: Competitor information from Edmunds.com and manufacturer’s websites; SOLO figures based on management estimates using comparable methodology.
7
NASDAQ: SOLO
M A C R O - E C O N O M I C T A I L W I N D S
The Growing EV & Ride Share Market
• In 2018, global EV sales totaled 2.1 million (the U.S. increased sales of EVs
EV Market Growth & Share of Vehicle Sales
81% in 2018)1 70M 60%
EV % of Sales
60M 50%
• California continues to play an outsized role in growing the electric vehicle
EV Vehicle Sales
50M
market; generating ~50% of EV sales in the U.S in 20172 40%
40M
30%
• By 2040, over 500 million passenger EVs will be on the road globally, 30M
accounting for over 30% of all passenger vehicles3 20%
20M
• The market penetration and disruption of the ridesharing and micro- 10M 10%
mobility industries has caused a proliferation of service platforms vying to 0M 0%
meet the ever increasing demand of mobility solutions
• Today, EVs account for 1.8% of the shared mobility fleet (taxi’s, ride-hailing
US Europe China ROW EV % of Sales
& car-sharing), growing to 80% of the shared mobility fleet by 20403
Ride-Share Market Penetration
800M
684M
700M 648M
“Electric Vehicles are nearing an inflection point as changing consumer 605M
Millions of Users
553M
attitudes, improved battery economics, broader access to charging 600M
493M
infrastructure and stricter regulatory policies all present growth 500M 426M
354M
opportunities” – McKinsey & Co. 400M
300M
200M
1. Electric Vehicle Sales: Facts & Figures, Edison Electric Institute 100M
2. The International Council of Clean Transportation, May 2018
3. Electric Vehicle Outlook 2019, Bloomberg NEF 0M
4. U.S. EPA national electricity generation data, March 2018 2016 2017 2018 2019 2020 2021 2022
8
NASDAQ: SOLO
R E D E F I N I N G U R B A N M O B I L I T Y
Purpose-Built for Urban Driving Challenges
The SOLO naturally solves many challenges
that today’s drivers face:
76%
People who travel to work by
themselves in a personal vehicle1
3-5
Seats left open during
• Economical: Competitively priced (upfront costs are
significantly less than other luxury EV’s), lower operating
& maintenance cost than traditional ICE vehicles
commutes with standard
vehicles1 • Ease: Single driver benefits (e.g. HOV lane access),
navigating through traffic & parking benefits, among
others
• Safety: Enclosed, with most of the comforts of other
modern vehicles, yet safer than typical motorcycles
16Miles • Environmentally Friendly: SOLO drivers are supporting
Average commute each
way for work2 2x
The average cost to drive the same •
the environment
Fun & Trendy: SOLO drivers enjoy their daily commute
number of miles in an ICE vehicle while making a statement by driving something unique &
when compared to EVs3 cool
1. U.S. Census 2016
2. ABC News, Time Magazine, Washington Post Poll: Traffic, February 2005
3. U.S. Department of Energy, eGallon: Compare the costs of driving with electricity; October 2019
9
NASDAQ: SOLO
T A R G E T E D M A R K E T S
Ideal Solution for Multiple Applications – The SOLO ECO System
We’re targeting three primary market segments for our flagship SOLO EV
SOLO SOLO UTILITY- SOLO DRIVE- URBAN
SHARE FLEETS/DELIVERIES COMMUTERS
10T O P - T I E R P A R T N E R
Asset-Light Manufacturing
• The SOLO is being manufactured in Chongqing, China, by a
subsidiary of our industry-leading strategic partner, Zongshen
Industrial Group
• About Zongshen Industrial Group1:
▪ Multi-national company who is also China’s largest
manufacturer of motorcycle & three-wheeled vehicles
▪ Produces 2+ million units annually across 130 models of
two-and three-wheeled motorcycles
▪ Maintains 50+ joint ventures, including some of the most
prominent and recognized global brands
• Zongshen made an early strategic investment into
ElectraMeccanica (currently represents 2.0%2 of shares
outstanding)
• ElectraMeccanica owns all of the tooling for assembly of the
SOLO
• ElectraMeccanica’s strategic partnership with Zongshen
significantly mitigates production risk & lowers CapEx
1. Information provided by management of Zongshen.
2. As at August 11, 2020
11
NASDAQ: SOLOM E T H O D I C A L
Launch & Strategic Roll-Out
• Initial launch of the SOLO EV’s in the Los Angeles area in mid-2020
▪ Established service / distribution center with kiosk retail locations in key markets
utilizing flexible short-term leases
▪ There are 4.6 million commuters in Los Angeles with an average 30 minute
commute1 – an ideal market for the SOLO
▪ Statistics have shown that the Los Angeles area is a leading location for EV
adoption & a well-known commuter’s nightmare
▪ The SOLO is expected to resonate well with the residents in LA (single commuter
driving benefits, parking benefits, environmental benefits, fun/trendy/unique, etc.)
• After successful launch in Los Angeles, will continue to expand the retail footprint along the
West Coast
▪ Initial launches currently planned for Scottsdale, Portland, San Francisco and Seattle
▪ Mirror LA model of a service / distribution center in each city supporting multiple
kiosk retail locations
▪ Additional state tax credits in California ($750) and Oregon
• As a true global vehicle, the SOLO will ultimately be available throughout the world, with
key markets in Europe and Southeast Asia
1. Los Angeles Almanac, 2017
12
NASDAQ: SOLOF O R W A R D - T H I N K I N G
Marketing Strategy
• Establish and develop an exciting integrated brand identity that reflects
a forward-thinking, dynamic, growth-oriented electric vehicle company
• Campaign will include building awareness through digital marketing,
influencers, revamped website, billboard, print and traditional media
advertisements
• Working with R&C/PMK for Public Relations and Narrative Media
Group as our marketing and advertising agency to assist with our
initiatives
Significant Media Coverage
“One of the coolest cars of the “It’s all-electric like a Tesla. It’s “Here’s proof you don’t have to “I've literally never had so many
year” priced like a Ford Fiesta. It’s one of drive a boring car to save money people ask me about a vehicle
the oddest-looking vehicles you’ve on gas” before, and I've driven around
Forbes, July 2019
ever seen -- and it may just Manhattan in Ferraris,
Road & Track, July 2018
redefine the commuter car.” Lamborghinis, and Rolls Royces.”
Bloomberg, February 2019 Business Insider, May 2018
13
NASDAQ: SOLOD E F I N E D
Path to Profitability-SOLO ECO
System
• Ramp Up Production Volumes
▪ As volumes ramp, ElectraMeccanica’s minimal overhead costs will quickly
be recovered
▪ Ability to leverage buying power from suppliers to gain more favorable
pricing
▪ Enhanced manufacturing efficiencies and increased automation
• Establish U.S. Assembly Facility
▪ Identified five finalist states with robust incentive packages
▪ Ability to avoid cumbersome tariffs through the local assembly of knock-
down kits supplied from Zongshen
▪ Capture benefit from logistical efficiencies and limit uncertainties in the
global supply chain
• Continued Product Development
▪ In addition to ongoing enhancements to performance, the Company is
focused on cost improvement initiatives
▪ Clear path to a reduced bill of materials in the future iterations of the
SOLO
14
NASDAQ: SOLOK E Y S T A T I S T I C S
Company, Stock & Financials
Trading Statistics
Financials2
Stock Price1 $3.07
$197M Cash C$51.3M
Market Cap1
Long Term Debt $0
Average Volume1 (3 month) 14,780,446
Shares O/S2 64.1M
Fully Diluted Shares O/S3 96.0M
Company Ownership2
Beneficial Insider Ownership 28.0%
Public Float 82%
Company Specifics2
Employees 75
HQ Vancouver, BC
Incorporated 2015
1. As of August 26, 2020
2. As of June 30, 2020
15
NASDAQ: SOLOW H Y S O L O ?
Key Takeaways
ElectraMeccanica is a Canadian designer & manufacturer – NOT a “Me Too” EV
SOLO Drive is a purpose-built, economic solution for urban driving challenges
SOLO ECO system is the ideal solution for ride sharing, fleet applications and urban drivers
Poised to capitalize on substantial macro-economic tailwinds
Asset-light manufacturing with recognized strategic partner, Zongshen
Strategic launch roll-out with a forward-thinking marketing strategy
Highly experienced management team focused on growth and execution
16
NASDAQ: SOLOAppendix
17S O L O
Vehicle Specifications
Cost Interior
• MSRP: $18,500 USD • LCD Digital Instrument Cluster
• Financing available through Freedom Financial • Remote Keyless Entry
• Power Windows
• Intermittent Wipers
Performance • AM / FM / Bluetooth / USB
• Air Conditioning
• Up to 100 Mile Range1 • Upgraded Vinyl Heated Seat
• 0-60 mph: 10 Seconds1 • Rear View Backup Camera
• Top Speed: 80 mph1 • Power Steering / Power Brakes
• Curb Weight: 1710 lbs1
• Lightweight Aerospace Chassis
Exterior
Powertrain • Heated External Mirrors
• 17.3 KWh NCA Battery Liquid Cooled • LED Headlamps
• Rear Wheel Drive • Daytime Running Lights
• 60 HP Liquid Cooled Motor
• 103 ft-lbs Torque Dimensions
• Length: 122 in
Charging Times • Width: 57.5 in
• 220 V (Level 2): 2.5 hours for 15% - 90% • Height : 53 in
• 110 V (Level 1): 8 hours for ~60% • Wheelbase: 80.5 in
• Front Tires: 135-70-R15
• Rear Tires: 215-40-R16
Colors • Cargo Space: 5 cubic ft
• Electric Red
• Raven Black
• Arctic White
1. Specifications are subject to change without notice.
Prices are in US dollars and do not include any applicable taxes. Financing available OAC.
18
NASDAQ: SOLOI N P I C T U R E S
The SOLO
Angled Front Side Interior
Dashboard Trunk Frunk Charging Port
19
NASDAQ: SOLOS O L O R E Q U I R E M E N T S
Current U.S. Market Access
State
Incentive
$750 State
Incentive SOLO License Requirement
Standard driver’s license
Pending legislation to allow
standard driver’s license
Motorcycle license required
Ineligible for registration
(IC engine required)
This information is provided for general reference only. Although the information is to ElectraMeccanica Vehicles’ best knowledge, vehicle operators should always consult their local authority to confirm licensing requirements.
20
NASDAQ: SOLOP O L I C Y D R I V I N G G R O W T H
EV Technology Future Milestones
California Scotland
5 million zero-emission Ban sale of new ICE vehicles
vehicles target by 2032 France
Ban sale of new
Netherlands Iceland
California ICE vehicles
50% of all new Replace oil with electricity in
1 million zero-emission vehicles car sales are all new vehicles
on the road by 2020 EVs
Paris UK
Ban ICE (petrol & diesel) Ban sale of new ICE
vehicles vehicles
2020 2025 2030 2035 2040
Japan
Next-gen vehicles to account for
50–70% of new vehicle sales
Germany Norway India China
1 million EVs on Sells EVs only All electric Target of 60%
the road manufacturing by electric sales by
30 2035
Source: L.E.K. Insights
21
NASDAQ: SOLOE X P E R I E N C E D L E A D E R S H I P
Management Team
Paul Rivera Henry Reisner
Chief Executive Officer & Founder, President &
Director Director
• +20 years of automotive industry • President of Intermeccanica since
management 2001, a subsidiary of EMV.
• Prior President of Ricardo, USA, a • Extensive experience in the
100-year old global engineering, automotive industry with a
OUR strategic & consultancy business
• Previous Executive VP of Hybrid
and Electric Systems at Ricardo
background in manufacturing.
• Oversees the design & production of
ElectraMeccanica’s electric cars.
MANAGEMENT
TEAM Bal Bhullar
Chief Financial Officer &
Isaac Moss
Chief Administrative Officer
Director
• +25 years of diversified business, • 27 years of international
financial & risk management business, investment banking &
experience as an Executive &/or corporate finance
Board Member, with both public & • Held senior executive positions
private companies (industries such with companies across several
as technology, automotive, industries including CEO, COO
manufacturing, resource, marine, & CFO
energy, transport, health
/wellness.)
• Carries designations as CPA, CGA 22
& CRM NASDAQ: SOLOE X P E R I E N C E D L E A D E R S H I P
Board of Directors
Steven Sanders Joanne Yan Jerry Kroll Paul Rivera
Chairman Director Director and Co-Founder Chief Executive Officer & Director
• 45+ years of experience practicing • 25+ years of experience in advising & • 20+ years of experience as an investor
international corporate law spanning managing both publicly traded & private and in leadership serving in executive
North America, Europe and Asia companies management roles at tech companies
• Founding partner of Sanders Ortoli • Current President of Joyco Consulting • Licensed race car driver and founder of
Vaughn-Flam Rosenstadt LLP Services Kleen Speed Technologies, developing Bal Bhullar
• BBA from City College of New York, a • Served on the Board of Directors of public advanced electric race cars at the NASA Chief Financial Officer & Director
Juris Doctorate from Cornell Law School & and private companies, including Zongshen Research Park in California
member of the American and New York Environtech Ltd. and Tianchen Aviation
bar associations (Canada) Ltd.
Henry Reisner
Peter Savagian Luisa Ingargiola Co-Founder/Chief Operating
Director Director Officer/ President & Director
• 30+ years experience & pioneer in • Diverse experience in capital markets with
automotive electrification. public companies as a CFO, Director and
• Broad spectrum of expertise in the Audit Chair for several public companies
technology, development, launch & in the technology, environmental and
production of EVs energy industries
• Former Director of Electrified Propulsion at • Currently the CFO of Avalon GloboCare,
General Motors, bringing 13 electrified Director and Audit Chair of FTE Networks
autos brought to production (i.e. the first
plug-in hybrid, Chevy Volt & Chevy Bolt,
among others)
23
NASDAQ: SOLOCOMPANY CONTACT
Bal Bhullar
Chief Financial Officer & Director
ElectraMeccanica Vehicles Corp.
(604) 428-7656 ext.107
Bal@electrameccanica.com
ElectraMeccanica
INVESTOR RELATIONS CONTACT
Vehicles Corp Matt Glover and Tom Colton
Gateway Investor Relations
102 East 1St Avenue
Vancouver, British Columbia, V5T 1A4
Gateway IR
Canada
(949) 574-3860
SOLO@GatewayIR.com
24
NASDAQ: SOLOYou can also read
