Nasdaq: EVGO - investors.evgo.com
Investor
Presentation
June 2024
1
Important Cautionary Statements and Notices
Forward-Looking Statements
This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target," "assume" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are based on current expectations or beliefs of the management of EVgo Inc. ("EVgo" or the "Company") and are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. You are cautioned, therefore, against relying on any of these forward-looking statements. These forward-looking statements include, but are not limited to, express or implied statements regarding EVgo's future financial and operating performance, revenues, market size and opportunity, capital expenditures and offsets, stalls in operation or under construction, network throughput, business strategies and utilization growth; statements regarding EVgo's future profitability, including its "path to profitability" and "clear path to breakeven adjusted EBITDA;" the future mix of EVgo's various revenue streams; investments by OEMs and rideshare companies in EVs and EV charging; future returns on EVgo's charging sites and EVgo's network in 3-5 years; EVgo's expectation of market position and progress on its priorities to improve network performance; increases in charge rate on the Company's network and the reasons for the increase; opportunities to obtain financing and the impacts of that financing on the Company's network size; growth in the Company's throughput versus the growth in EVs in operation; and anticipated awards of funding in connection with the NEVI program and associated state programs. These statements are based on various assumptions, whether or not identified in this presentation, and on the current expectations of EVgo's management and are not predictions of actual performance. There are a significant number of factors that could cause actual results to differ materially from the statements made in this presentation, including changes or developments in the broader general market; EVgo's dependence on the widespread adoption of electric vehicles ("EVs") and growth of the EV and EV charging markets; competition from existing and new competitors; EVgo's ability to expand into new service markets, grow its customer base and manage its operations; the risks associated with cyclical demand for EVgo's services and vulnerability to industry downturns and regional or national downturns; fluctuations in EVgo's revenue and operating results; unfavorable conditions or disruptions in the capital and credit markets and EVgo's ability to obtain additional financing on commercially reasonable terms; EVgo's ability to generate cash, service indebtedness and incur additional indebtedness; any current, pending or future legislation, regulations or policies that could impact EVgo's business, results of operations and financial condition, including regulations impacting the EV charging market and government programs designed to drive broader adoption of EVs and any reduction, modification or elimination of such programs; EVgo's ability to adapt its assets and infrastructure to changes in industry and regulatory standards and market demands related to EV charging; impediments to EVgo's expansion plans, including permitting and utility-related delays; EVgo's ability to integrate any businesses it acquires; EVgo's ability to recruit and retain experienced personnel; risks related to legal proceedings or claims, including liability claims; EVgo's dependence on third parties, including hardware and software vendors and service providers, utilities and permit-granting entities; supply chain disruptions, inflation and other increases in expenses; safety and environmental requirements or regulations that may subject EVgo to unanticipated liabilities or costs; EVgo's ability to enter into and maintain valuable partnerships with commercial or public-entity property owners, landlords and/or tenants (collectively "Site Hosts"), original equipment manufacturers ("OEMs"), fleet operators and suppliers; EVgo's ability to maintain, protect and enhance EVgo's intellectual property; and general economic or political conditions, including the conflicts in Ukraine, Israel and the broader Middle East region, and elevated rates of inflation and associated changes in monetary policy. Additional risks and uncertainties that could affect the Company's financial results are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations of EVgo" in EVgo's most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC"), as well as its other SEC filings, copies of which are available on EVgo's website at investors.evgo.com, and on the SEC's website at www.sec.gov. All forward-looking statements in this presentation are based on information available to EVgo as of the date hereof, and EVgo does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by applicable law.
Use of Non-GAAP Financial Measures
To supplement EVgo's financial information, which is prepared and presented in accordance with generally accepted accounting principles in the United States of America ("GAAP"), EVgo uses certain non-GAAP financial measures. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EVgo uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. EVgo believes that these non-GAAP financial measures provide meaningful supplemental information regarding the Company's performance by excluding certain items that may not be indicative of EVgo's recurring core business operating results. EVgo believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing EVgo's performance. These non-GAAP financial measures also facilitate management's internal comparisons to the Company's historical performance. EVgo believes these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by EVgo's institutional investors and the analyst community to help them analyze the health of EVgo's business.
Reconciliations of these non-GAAP financial measures to the most comparable GAAP measures can be found in the tables included at the end of this presentation.
Trademarks
This presentation contains trademarks, trade names, and service marks of other parties, which, to EVgo's knowledge, are the intellectual property of such other parties. Solely for convenience, such trademarks, trade names and service marks are referred to in this presentation without the ®, or SM symbols, but the absence of such symbols does not effect a waiver of, or other otherwise impair, such intellectual properties rights. EVgo does not use such other parties' trademarks, trade names, or service marks to imply, and such use or display should not be construed to imply, an association with, a licensure to, or an endorsement or sponsorship of, EVgo by such other parties.
2
Our Mission
Expediting mass adoption of electric vehicles for everyone
POWEREDMORETHAN
395 million
zero-emission miles in 2023
REDUCEDMORETHAN
150,000
metric tons of CO2 in 2023
Source: Company estimates, U.S. EPA, eGrid
EVGO IS A LEADER IN EV FAST CHARGING
EVgo is a First Mover and Industry Leader in the Rapidly Growing EV Charging Space
- EVgo builds, owns and operates fast charging infrastructure, selling energy to drivers of all types of EVs through its network of conveniently located high powered chargers
-
With Electric Vehicles in Operation ("VIO") expected to increase approximately
10x by 2030 and 35x by 2040, the marketEV for charging infrastructure is expanding rapidly across geographies and industry segments - EVgo is 'OEM-agnostic' meaning each additional EV VIO from any manufacturer accrues directly to the benefit of EVgo
- EVgo layers technology functionality on top of its network of charging assets further
strengthening its pole position as an essential infrastructure service provider
Source: VIO estimate from S&P Global
4
- W H Y E V G O
COMPELLINGINVESTOR HIGHLIGHTSVALUE
PROPOSITION
01 | 02 | 03 | 04 | |||||||
Focused on emissions | Exposure to EV market with | Business model dedicated | Annual recurring revenue | |||||||
reduction and sustainability | multi-decade growth | to fastest growing | opportunity for every EV | |||||||
trajectory and ability to serve | segment of the charging | sold, growing faster than EV | ||||||||
all EVs | market, DCFC | VIO |
05 | 06 | 07 | 08 | |||||
Scaled growth engine with | Deploying capital with | Clear path to breakeven | Significant financial leverage | |||||
financial discipline, | double-digit projected | Adjusted EBITDA1 in 2025 | - network in 3 to 5 years | |||||
proprietary processes & | returns and adding NPV | would result in nearly $200M | ||||||
strong partnerships and | annually at scale | in annual Adjusted EBITDA2 | ||||||
OEM relationships create | ||||||||
competitive moat |
1For a definition of Adjusted EBITDA (non-GAAP), please see "Definitions of Non-GAAP Financial Measures" included in the Appendix. A reconciliation of projected Adjusted EBITDA to net income (loss), the most directly comparable measure, is
not provided because certain measures, including share-based compensation expense, which is excluded from Adjusted EBITDA, cannot be reasonably calculated or predicted at this time without unreasonable efforts.5 2Illustrative scenario based on internal EVgo assumptions and modeling. See slide [29] for additional information
01
EVgo Overview
SNAPSHOT OF EVGO'S NATIONAL MARKET POSITION
1M+ | Customer Accounts |
35+ | States |
145M+ | Americans |
Within 10 miles of an | |
EVgo charger | |
50+ | National strategic |
site host partnerships | |
100K+ | Identified Potential Stalls |
With strategic site host partners | |
OEM/Brand Partners | |
11 | OEM and brand partnerships |
ranging from charging credit and | |
infrastructure buildout, to |
marketing and data integration
Source: Company estimates and data | |
All figures as of 03/31/24, except Customer Accounts, which are as of May 2024 | 7 |
Stall and location counts include EVgo eXtend sites |
WE CAN SERVE ALL EV MODELS
EVgo Innovation Lab works collaboratively with | |
automakers to ensure interoperability between | |
all EV models and our charging equipment. | |
v | v |
Committed to adding full NACS support to serve all vehicles.
OUR DCFC CHARGERS ARE CAPABLE OF SERVING
30+ EV models | 70+ EV models |
2021 | End of 2023 |
8 |
W H A T E V G O D O E S | ||||
FOCUSED | ||||
ON OWNED | Owned and Operated | EVgo | Tech Enabled | |
& OPERATED | Services and | |||
Charging Network | eXtend | |||
CHARGING | Other | |||
NETWORK | EVgo-owned and | EVgo eXtend | : | Value-added |
operated charging | Capital-light | service offerings | ||
network: leveraged to EV | footprint expansion, | provide revenue | ||
adoption, tapping into a | customer acquisition | upside potential | ||
recurring revenue | ||||
opportunity | ||||
9 |
BUILD, OWN AND OPERATE MODEL
PROVIDES MOST DIRECT LEVERAGE
TO EV ADOPTION
LEVERAGE TO EV ADOPTION | STRATEGIC BENEFITS | STEADY CASH FLOWS |
- Monetizes all EV types and models
- Flywheel effect from expanding customer base and usage
- Built-in"same store sales" growth; driver- based revenue model
- Gross margin leverage through increased utilization and yield management
- Ownership of network design, price, and location drives user experience, retention and brand loyalty
- Does not require site hosts to pay high upfront capex and ongoing O&M
- OEM-agnostic;benefits from expansion of entire market
- Compelling value proposition to all stakeholders (hosts, drivers, OEMs, fleets, utilities, and governments)
- High potential returns; critical infrastructure supported by defensible moats
- Equipment specifier, able to create competition among charger vendors
- Cash flow driven by installed base and VIO and VMT with tailwinds from BEV mix and increasing battery sizes
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EVgo Inc. published this content on 21 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 June 2024 21:40:06 UTC.