The Lion Electric Company (LEV) Investor Presentation summary

Business overview

• Specializes in all-electric medium and heavy-duty urban vehicles, with 14+ years of R&D and manufacturing experience and over 2,200 vehicles on the road, accumulating 32M+ miles.

• Offers a full turnkey solution for fleet electrification, including vehicle selection, charging infrastructure, grants support, financing, training, maintenance, and telematics.

• Manufacturing capacity includes 2,500 vehicles/year in St-Jerome, 2,500 vehicles/year in Joliet, IL, and 1.7 GWh battery production at Mirabel, QC.

• Product lineup includes purpose-built electric school buses and medium/heavy-duty trucks, all designed and assembled in-house with proprietary technology.

• Operates 12 experience centers across the U.S. and Canada to support customer transition to electric fleets.

Market and customers

• Established leader in the all-electric school bus segment, with 1,900+ deliveries and an order book of 1,450+ school buses.

• School bus electrification is supported by strong regulatory tailwinds, including the $5B EPA Clean School Bus Program and other major U.S. and Canadian incentives.

• Order book as of November 6, 2024, includes 1,590 electric vehicles (~$420M), 1,455 all-electric buses, and 366 all-electric trucks, with a significant portion contingent on government subsidies.

• Key clients include major school districts, public transit agencies, and large commercial fleets such as Amazon, DHL, CN, and Canada Post.

• The company’s ability to convert its order book into sales is highly dependent on the timely granting of governmental subsidies and incentives.

Financial highlights

• Q3 2024 revenue was $30.6M, down from $80.3M in Q3 2023; gross loss of ($16.0M) compared to a gross profit of $5.4M in Q3 2023.

• Adjusted EBITDA for Q3 2024 was ($19.5M) and net loss was ($33.9M), both deteriorating from Q3 2023.

• Delivered 89 vehicles in Q3 2024 (71 buses, 18 trucks), split almost evenly between Canada and the U.S.

• Immediate liquidity stood at approximately $27M as of September 30, 2024, with inventory reduced by $35M year-to-date.

• There is material uncertainty regarding the company’s ability to continue as a going concern, with ongoing efforts to raise additional funds and manage liquidity.