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ELECTRIC LAST MILE
SOLUTIONSINVESTOR PRESENTATION
OCTOBER 2021
Disclaimer
Forward-Looking Statements
This presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. ELMS’s actual results may differ from their expectations, estimates and projectionsand consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, ELMS’s expectations with respect to future performance of the business, the size, demands and growth potential of the markets for ELMS’s products and ELMS’s ability to serve those markets, ELMS’s ability to develop innovative products and compete with other companies engaged in the commercial delivery vehicle industry and/or the electric vehicle industry, ELMS’s ability to attract and retain customers, the estimated go to market timing and cost for ELMS’s products, and the implied valuation of ELMS. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside ELMS’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to (1) the inability to recognize the anticipated benefits of the business combination with Forum Merger III Corporation, which may be affected by, among other things, competition and the ability of ELMS to grow and manage growth profitably and retain its key employees; (2) changes in applicable laws or regulations; (3) the possibility that ELMS may be adversely affected by other economic, business, and/or competitive factors; (4) the impact of COVID-19 on ELMS’s business; (5) any delays ELMS may experience in realizing its projected timelines and cost and volume targets for the production, launch and ramp up of production of ELMS’s vehicles and the modification of its manufacturing facility; (6) the ability of ELMS to obtain customers, obtain product orders, and convert its non-binding pre-orders into binding orders or sales; (7) ELMS’s ability to implement its business plans and strategies; and (8) other risks and uncertainties described in the“Risk Factors” section of ELMS’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 and in ELMS’s future filings with the Securities and Exchange Commission. Some of these risks and uncertainties may in the future be amplified by the COVID-19 outbreak and there may be additional risks that ELMS considers immaterial or which are unknown. ELMS cautions that the foregoing list of factors is not exclusive. ELMS cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. ELMS does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in their its expectations or any change in events, conditions or circumstances on which any such statement is based.
Industry and Market Data
In this presentation, we rely on and refer to information and statistics regarding market participants in the sectors in which ELMS expects to compete and other industry data. We obtained this information and these statistics from a variety of publicly available sources, including reports by market research firms and other public company filings. No representation ismade as to the reasonableness of the assumptions made within or the accuracy or completeness of any projections or modeling or any other information contained herein. Any data on past performance or modeling contained herein is not an indication as to future performance.
Trademarks
This presentation may contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners. Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this presentation may be listed without the TM, SM, © or ® symbols, but ELMS will assert, to the fullest extent under applicable law, the rights of the applicable owners, if any, to these trademarks, service marks, trade names and copyrights..
Use of Projections
This presentation also contains certain financial forecasts of ELMS. ELMS’s independent auditors have not studied, reviewed, compiled or performed any procedures with respect to the projections for the purpose of their inclusion in this presentation,and accordingly, neither of them has expressed an opinion or provided any other form of assurance with respect thereto for the purpose of this presentation. These projections are for illustrative purposes only and should not be relied upon as beingnecessarily indicative of future results. [In this presentation, certain of the [below]-mentioned projected information has beenprovided for purposes of providing comparisons with historical data.] The assumptions and estimates underlying the prospective financial information are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the prospective financial information. Projections are inherently uncertain due to a number of factors outside of ELMS’s control.Accordingly, there can be no assurance that the prospective results are indicative of future performance of ELMS or that actual results will not differ materially from those presented in the prospective financial information. Inclusion of the prospective financial information in this presentation should not be regarded as a representation by any person that the results contained in the prospective financial information will be achieved.
Use of Non-GAAP Financial Measures
This presentation includes non-GAAP financial measures, including EBITDA. ELMS believes that these non-GAAP measures are useful to investors for two principal reasons: 1) these measures may assist investors in comparing performance over various reporting periods on a consistent basis by removing from operating results the impact of items that do not reflect core operating performance[; and 2) these measures are used by ELMS’s management and board of directors to assess its performance and may (subject to the limitations described below) enable investors to compare the expected performance of ELMS to its competition]. ELMS believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. Other companies may calculate these non-GAAP measures differently, and therefore such measures may not be directly comparable to similarly titled measures of other companies. This presentation includes financial forecasts, including, but not limited to, with respect to ELMS’s future EBITDA. Reconciliations of these measures to the equivalent measures under GAAP are set forth in the attached tables
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Executive Summary: Electric Last Mile Solutions
Growth:
Low capex Funding for growth:• 500 Engineers Worldwide
• 1,000 Local Workers (Mishawaka, IN)
• Battery Pack Localization
• Customer Focus – Upfitting and Customization
• Data / Software Solutions
• Next Generation Vehicle Design / Upgrades
Sustainability:
Economic and Financial• Lower TCO for Customers
• 100K Production Capacity in the USA
• Engineered in the USA
• Delivering to Customer Contracts
• Comprehensive Service Solutions Nationwide
Environmental• All Electric Vehicles
• Zero Carbon Emissions
• Zero Noise Pollution
• Fleets Committed to Carbon Neutrality
Production / Distribution Expansion:• Canada
• Mexico
• China
• Japan
• Europe
GLOBAL TAM
$480 Billion
Drive Sustainability Future MobilityGreener, Smarter Solutions
Reliability
Sustainability
Growth
Connectivity
6,000 Vehicle
Firm Orders
Functional Product
First Revenue Q3 2021
Founded by Industry Veterans
Telematics
Data PredictiveMaintenance
DriverSafety
Expansion MarketsPhase I: Canada, MexicoPhase II: China, Japan, Europe
Class 3 Urban UtilityNext Gen Vehicle DesignsUpfitting – Interior UpgradesData Monetization
$480 Billion Global TAM
Cross-IndustryApplications
National, State, Corporates – 100% Zero Emissions Vehicle Sales
Pledge
Commitments by 2040: Canada, China, Japan,
Europe
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CHAPTER TAKEAWAYS1. Demand > Supply2. Government Aligned 3. Untapped Market
GROWTH DRIVERS +MARKET OPPORTUNITY
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By 2025, 50% of FedEx Express global PUD vehicle
purchases will be electric, rising to 100% of all
purchases by 2030.
Commercial EV Growth Drivers – A Perfect Storm
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Consumer Behavior Accelerating Last Mile Delivery
Compelling Government Support, Incentives & Mandates
Fleet Environmental Sustainability Goals
Business Need for Lower Total Cost of Ownership
E-Commerce grew >40% each of the past two years, yet still account for only 17% of Retail sales
EV Share of Commercial Segment Significantly Outpacing ICE in Global Commercial Fleet Forecast
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CHAPTER TAKEAWAYS1. The Real Deal2. Clear Differentiation3. Executing to Plan
INTRODUCING
ELECTRIC LAST MILE
SOLUTIONS
Who’s Driving Electric Last Mile Solutions?
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Core Executive Team
Board of Directors
JAMES TAYLOR
CEO & President
JASON LUO
Chairman
SHAUNA MCINTYRE BRIAN KRZANICH RICHARD PERETZ DAVID BORIS NEIL GOLDBERG
JONATHAN BALLON
CSO & CDO
ROB SONG
DEPUTY CFO
RON FELDEISEN
CRO
ELMS Company Milestones – 2021
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Urban Delivery Passes Body Design Verification Crash Tests
PRODUCT DEVELOPMENT
Intellectual Property Patent Class 1 EV Safety System
Acquired EV-Ready Production w/ Experienced Team
PRODUCTION
GO TO MARKET
Customer Trials in All Target Segments
Partnerships Established: Parts & Service; ELMS Air
Urban Utility Reveal & Customer Trials
Start of Production –1,000 Binding Orders
SuppliersSourced and Integrated to Specification
Multiple Routes to Market Established –6,000 Vehicle Commitment
The Electric Last Mile Solutions Playbook
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Low factory and production capexUse-of-funds primarily for growth
Only EV Player in Class 1-3 + Urban Use Cases
12–24 Month time to market advantageEnables rapid expansion into new marketsEight-year installed base advantage / vehicle
COMPETITIVE DIFFERENTIATION
SOURCE: Harbor Research Smart Systems Forecast Model (2021), U.S. Census data, Alternative Fuels Data Center (2021), Atlas
Public Policy (2020), IHS Markit Automotive Industry Outlook (2019), Polk & FHWA data (2020), Oxford Institute for Energy Studies
(2020), Bureau of Transportation Statistics (2020), Statista, Various industry case studies
Phase I: Focused Launch
~$130 BillionNorth America: Class 1-3
Phase II: Direct Adjacencies
+$250 BillionROW, Software & Services, Upfitting
Phase III: Business Expansion
+$100 BillionCross-industry Applications &
Vertical Integration
TOTAL ADDRESSABLE MARKET
Limited competition / early shareOwned factory – EV ready, 100K vehicle capacityTarget segments motivated to purchase now
Rapid Product Development + Use of Proven, Reliable Components
Hyper-Efficient Business Model
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CHAPTER TAKEAWAYS1. Large Untapped Market2. Customers’ Unique Needs 3. All Segments Motivated
CUSTOMERSEGMENTS + ADDRESSABLE MARKET
Focused on the Intersection of Market Size + Product Fit
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SOURCE: Harbor Research Smart Systems Forecast Model (2021), U.S. Census data, Alternative Fuels Data Center (2021), Atlas
Public Policy (2020), IHS Markit Automotive Industry Outlook (2019), Polk & FHWA data (2020), Oxford Institute for Energy
Studies (2020), Bureau of Transportation Statistics (2020), Statista, Management Estimates
Core Opportunity
Expansion Opportunity
Future Opportunity
Class 1–3 Commercial “Last Mile” Segments
141. Example Accounts are potential users or targeted customers and not to imply they are existing customers
Target Segment
Sub-Segment
Delivery
Retail Delivery
Food DeliveryOther (Pharma/
Healthcare)
Municipal Services
Postal Services
Waste Mgmt.Emergency
Services
Utilities
Telecom & Electrical
Industrial & Resources
Other (Home Services)
Example
Accounts1
Moving
Moving & Hauling
Construction
Other (Agriculture,
Leasing)
Campus Transportation
Airports & Ports
Education Campuses
Hotel & Corporate Campuses
Multi-Channel GTM Offers Complete Customer Coverage
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Note: As of September 2021, companies on this page are either a) customers with whom ELMS or its distributing partners are
currently in discussions, and/or b) signed pre-order customers. Pre-Orders do not bind potential customers to purchase vehicles.
Actual purchase orders require a separate binding commitment by a customer, following ELMS’ demonstration that the vehicle
satisfies the customer’s requirements
DIRECT
FLEET MANAGEMENT
COMPANIES
DEALERS / DISTRIBUTORS
REPRESENTATIVE ACCOUNTS (in various stages)
UPFITTERS
SALES CHANNELS
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CHAPTER TAKEAWAYS1. Product + Market Fit2. Low Capital Requirements3. Turnkey Manufacturing
PRODUCT PLAN+ PRODUCTIONADVANTAGE
Our Product Portfolio is a Class of its Own
CLASS 1~125 Ft3
CLASS 2240 – 500 Ft3
CLASS 3500 – 1,000+ Ft3
MSRP: ~$25,000 - $30,000 ~$30,000 - $50,000 ~$40,000 – $70,000
Ford Transit Connect – 104–145
Ford Transit – 247–487
Isuzu NPR – 980Ram Promaster – 259–463
Ram Promaster City – 132
Mercedes Benz Sprinter – 319-532
Ram Promaster 3500 – 1,000
Nissan NV 200 – 123
(DISCONTINUED) Chevrolet Express – 240-284
Source: Public sources. Price of ELMS vehicles net of $7,500 Federal Tax Credit. Urban Delivery and Urban Utility specifications based on current designs.
Urban Delivery170
Urban Utility650-1,000
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STARTING MSRP$45,000 – $49,000
(AFTER TAX CREDITS)
STARTING MSRP$25,000 – $28,000
(AFTER TAX CREDITS)
Lower Price w/ Lower TCO
More Cargo Space @ Same Price w/ Lower TCO
+30% Cargo Space w/ Lower TCO
Lower Price w/ Lower TCO
CLASS 3
CLASS 2
CLASS I
2021 2022 2023 2024
1H 2H 1H 2H 1H 2H 1H 2H
Time to Market Advantage Secures Each Vehicle for Years
eSprinter
Coming to US
MSRP $75k
C650/C1000
MSRP $55k ++B2 Chass-E Cab
Class 3-5
MSRP $70k to $110k
UD 2.0
MPDV - 200
MSRP $TBD
SOP TBD
UD01 UD 1.0 UD 3.0 UD 4.0
eTransit
MSRP $47k
Amazon Only
MSRP $N/A
EV600
w/ GM, FedEx
MSRP $TBD
UU 1.0 UU 2.0
MPDV - 450
MSRP $TBD
SOP TBD
UPS Only @ Launch
H1, H2, H3
MSRP $TBD
1UD0 is for private campus low speed applications
Urban Delivery Has Long Lead in Class 1
Urban Utility Has Long Lead in Class 3
UU 3.0
Fast Focused Launch + Rapid Product Development
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WHAT WHY HOW
Functional Product Low R&D Cost Low-CAPEX Requirement
Meets Base Customer Specifications Accelerate Time to Market (TTM) Source Proven Components
Delivers Safety and Quality, Reliability & Durability (QRD)
Learn from Early CustomersInvest in Areas of Customer Perceived Value Over Time
Targets Early Adopters Base Product Platform to Iterate Upon
Inform Product Roadmap
Launch Vehicle
Target Vehicle
Estimated Capital RequirementUsing Proven Reliable Systems
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Consumer Commercial
Customer Value
Proposition
1. Brand2. Style3. Performance4. Technology
5. QRD
1. Function2. TCO3. QRD4. Safety
5. Technology (emerging)
Design Refresh
4-5 years 15+ years
Recurring Capex
Significant recurring capital
investment:
• Exteriors/Dies
• Interior refreshes
• Body Shop
Substantially less than
Consumer vehicles
Launch cost per vehicle is much lower than traditional OEMs – Allows investment in adjacent growth opportunities; better overall profitability
1. Investment figures based on management estimates
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
Cumulative Capex Over Time($ in millions)
Typical Factory Capex ELMS Factory Capex
Launch Year 5 Year 15Year 10
$1.5 billion less spend
Our Factory Was Designed for Flexibility @ Scale, Allowing Low-Cost Rapid Changes for New Models
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SERES SF5 EVMB R-CLASSHUMMER H2 VPG MV-1
Adjacent Opportunities - Vehicle Upfitting
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Upfitting is a near-term adjacent opportunity – Over time, we expect most of our production vehicles to require customization and upfitting services
Phase 1
• Maximize client coverage• Prioritize time-to-market• Build strategic relationships• Enhance service offerings
via customer feedback
• Design custom upfit packages tailored to customer specifications
• Enhance partnerships• Localize one or more upfitters
within Mishawaka plant• Reduce delivery time and
costs for customers
Customer Upfitting Needs and Trends:• Fulfill customization requirements based on specific industry / market segment• Consideration for safety through life of the vehicle• Ergonomically designed interiors – reducing fatigue and injury• Increase productivity; Boost driver satisfaction
Phase 2
Vehicle Control Unit
Cargo Monitoring
Rear & Side-Facing Camera
Wheel Sensors
Battery Sensor & Charge Management
Inside Camera
Driver Monitoring Camera
Front Camera
Telematics Gateway Unit(Location / Data / Video)
Condition Monitoring
Infotainment
V2X Communications
Battery Charging & Swapping
Parking Assist
Adjacent Opportunities - Vehicle-Generated DataWith the ability to collect and aggregate vehicle data, ELMS will unlock additional value for its customers through in-vehicle and external software-defined applications
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CHAPTER TAKEAWAYS1. Short-term Margin Headwinds2. Margin Opportunities3. Solid Financial Outlook
CURRENTFINANCIALS+ OPPORTUITIES
Industry Price Increases are being Driven by Low Inventory and Higher Raw Material Costs
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• Increase in vehicle prices since 2020 vary by manufacturer and model • Dealers selling over MSRP, taking advantage of short supply• Further increase in prices anticipated as suppliers look to pass on their higher raw material costs to
OEMs
Source: Wards Intelligence
Gross Margin Objectives
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• Logistics cost is a near to medium term head wind for gross margin
• ELMS is evaluating all options to lower/offset shipping costs in the near term
• Potential levers available to ELMS that will increase gross margin over the medium term :
1EBITDA and EBITDA margin are non-GAAP metrics and based on current management estimates2Provided August 12, 2021 Earnings Call
Target 21%
Target Near-term Guidance2 Logistics Normalization Localization & Other Future Initiatives
Gross Margin Over Time1
80
90
100
110
120
130
140
150
160
170
180
Phase 1 Phase 2 Phase 3
Battery Localization Opportunity1
Cost Reduction over TIme
Internal Battery Localization Effort May Yield Up to 50% Cost Savings Over Time
Phase 1 (2021) : Partner with CATL• Purchase full battery pack with BMS
• Protect Supply
Phase 2 (2021–2023) : Build Pack in House w/ Additional Funding• Purchase cells
• Localize pack in our plant
Phase 3 (2023 +) : Innovate @ Scale• Purchase cells
• In house BMS for speed, cost, and reliability
• Design Pack for future products
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$ /
kW
h
1
2
3
1. Based on public sources and management estimates
100,000
75,000
25,000
50,000
0
Units Produced
Production and Financial Summary
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$ millions, unless otherwise stated
Share Price (1) $6.91
Shares Outstanding (2) 118.8
Market Capitalization $820.9
Cash (Inc. Restricted) as of June 30, 2021 $217.4
$ millions Q1 2021 Q2 2021 2021 Total
SG&A $2.8 $5.1
R&D 0.3 2.4
Total Opex $3.1 $7.5 $75.0 - 80.0
Capex $0.2 $0.2 $25.0 - 30.0
~1% Market Share of Class 1–3
1. Share price as of October 8, 2021
2. Excludes public and private warrants, RSUs and Earnout shares
3. Production estimates as of August 12, 2021
Pre-Revenue to Revenue: Checking Every Customer Box
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Urban Delivery
Tier 1 ICE Alternative
Available Today ✔ Backlog
Competitive Vehicle Price (inc. credit) ✔ $27K
Cargo Space ~170 Ft3 ~125 Ft3
TCO / mile (1) $0.18 $0.26
Feet3 / 100 miles $0.10 $0.21
Vehicle Warranty 4 years 3 years
Powertrain/ Battery Warranty 8 years 5 years
Charging Network ✔ ✔
Upfitters Available ✔ ✔
Service / Parts Network ✔ ✔
Dealers ✔ ✔
FMC 's / Lease ✔ ✔
QRD ✔ ✔
Urban Delivery TCO is two-thirds the cost of the Class 1 ICE Leader1
Source: US Department of Energy
Note: Analysis does not include cost of charging infrastructure or residual value of
vehicle
Eight-year Lifespan TCO: Vehicle, Energy & Maintenance
Cost: ELMS vs. Tier-1 ICE
$39,400
$62,520ICE
1. (1) vs. Class 1 and 2 gas vehicles in market. Management statements and assumptions on this page based on
data and vehicle specifications from public sources and/or management estimates. Figures subject to change
based on final design. *Price net of $7,500 Federal Tax Credit; 25,000 miles per year; $2.50 / gal. $0.13 /
kWatt; Differential Maintenance Costs of Brake Service, Engine and Transmission Oil Changes
The Electric Last Mile Solutions Playbook
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Low factory and production capexUse-of-funds primarily for growth
Only EV Player in Class 1-3 + Urban Use Cases
12–24 Month time to market advantageEnables rapid expansion into new marketsEight-year installed base advantage / vehicle
COMPETITIVE DIFFERENTIATION
SOURCE: Harbor Research Smart Systems Forecast Model (2021), U.S. Census data, Alternative Fuels Data Center (2021), Atlas
Public Policy (2020), IHS Markit Automotive Industry Outlook (2019), Polk & FHWA data (2020), Oxford Institute for Energy Studies
(2020), Bureau of Transportation Statistics (2020), Statista, Various industry case studies
Phase I: Focused Launch
~$130 BillionNorth America: Class 1-3
Phase II: Direct Adjacencies
+$250 BillionROW, Software & Services, Upfitting
Phase III: Business Expansion
+$100 BillionCross-industry Applications &
Vertical Integration
TOTAL ADDRESSABLE MARKET
Limited competition / early shareOwned factory – EV ready, 100K vehicle capacityTarget segments motivated to purchase now
Rapid Product Development + Use of Proven, Reliable Components
Hyper-Efficient Business Model
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