Askoll EVA S.p.A. Update on H1 2019 – Forecast 2019 – Plan 2020-2021 27th September 2019 Disclaimer
• This report (“the Report") is strictly confidential. Therefore neither the Report nor any part of it may be disclosed to third parties or used for purposes other than those indicated in the Report. The Report may not be copied or reproduced in any way, in whole or in part, without the written consent of ASKOLL EVA S.P.A. ("ASKOLL EVA" or “ the Company"). The acceptance of this Report implies consent to be bound by the Confidentiality prohibitions and obligations contained therein. • If the addressee at any time should disagree with such prohibitions or obligations, he or she is requested to return the Report, including any attachments, to the Company.
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2 Index
1. Group Overview 3
2. Trends in H1 2019 – Forecast Year-End 2019 19
3. Industrial plan 2020 – 2021 – Key strategic elements 25
3 1. Group Overview
4 Askoll EVA S.p.A. Top Management
Responsibility and Background
BEAUPAIN ALESSANDRO – Vice Presidente of Board of Directors Graduated in Economics, he has a strong background in management and strategic consulting, gained as Manager in leading consulting companies. He joined the Askoll Group in 2007 as Corporate Service Director and later was appointed Group CFO. Starting from 2015 he is the CEO of Askoll Group. Since 2018 he has also been Vice-President of Askoll EVA.
NANNI GIAN FRANCO – CEO Graduated in Management Engineering, he improved his knowledge of Marketing and Communication in the best business schools in northern Italy. He has over 15 years of experience in the entire product development process, placement optimization, communication and promotion, and strategic marketing planning activities in both the B2B and B2C sectors, in various industrial sectors. Since 2014 he held the role of Marketing Director of the Askoll Group In May 2019 he was appointed CEO of Askoll EVA
5 Askoll Group Structure
Key indicators
2018 H.P.E. SPA Askoll Group: Turnover: €212,3M Elettronics Division Ebitda €10,7M 100% (Ask E) Automation Division ASKOLL HOLDING S.R.L. (Ask 4) New Project Development (Ask 5) Home Appliance Components 2018 Pond & Aquarium: Aquarium & Pond Turnover: €20,4M Askoll Tre srl Askoll P&C Srl Ebitda €1M Askoll Due srl 100% Askoll México SA de CV Askoll Romania Srl
Retailing
Askoll Brasil Ltda Askoll Slovakia Sro Askoll Uno Srl 100%
AMT (China) 2018
EVA: Services Electric Vehicles Turnover: €14,1M Ebitda (€4,2M)
Askoll S&J Srl Askoll EVA SpA
Askoll Engineering SA de CV Askoll Store Srl
Askoll USA Inc 2018 Appliance: Askoll France sarl Turnover: €172,6M Ebitda €12,9M
6 Askoll EVA business lines, key products and sales channels Askoll EVA is a Group engaged in the production and sale of two wheels electric vehicles and kits and parts at global scale
Key Product Business Lines Product Categories Channels Geography Categories CONSUMER Key current e-bike for Private Mono-brand geographies users e-bicycles Dealers e-bike for Multi-brand Professional Users Dealers 6% European Electric 2 wheels PROFESSIONAL Countries vehicles e-scooter for Private CUSTOMER users Direct Askoll Sales e-scooter for 97% e-scooters Professional users New target Long term rental geographies e-scooter for companies 91% Sharing programs • USA KITs PROFESSIONAL CUSTOMER • Canada KITs & Parts Electric motors • Latin KITs & Parts for OEM FOR KITS for OEM applications applications America (ebikes – escooter – Batteries Direct Askoll Sales • Middle GoKarts – eBoats – East Lawn mowers – Power 3% Electronics: BMS – storage units – Other Battery B2B applications) Management Systems, Motor 3% Control Units – Inverters, ECU, Battery chargers % % of sales 2018
7 Milestones of Askoll EVA S.p.A.
Since the foundation, the Askoll EVA strategy has been focused on expanding into new markets by enlarging the product portfolio Askoll France start Start Askoll EVA IPO at and Launch of partnership AIM - Italian Stock opening of Paris Start Askoll ES3 with Exchange Flagship store distribution of engine MIMOTO Start eB2 and eS2 partnership with Askoll EVA eCooltra foundation 6.000 vehicles Start th are produced 1.000 Askoll Start Distribution of e-bike European EB Fold and 3.000 vehicles sold in Italy expansion ebolt are produced
2014 2015 2016 2017 2018
Start eS1 is the eS2 is 2.000 vehicles Start 1st order from Start OEM business distribution of best sold the best sold are produced distribution Austrian Post partnership is defined eB1 and eS1 e-scooter e-scooter of eS Pro with ALD In Italy in Italy automotive More than 2.000 (50%market scooters active in Share) sharing programs
8 Askoll EVA Organization Structure
Evolution following the listing
Board of Directors E. Marioni (President) A. A. Beaupain (Vice-President) B. G. Nanni (CEO) C. S. Ciscato (Board member) D. D. Cremasco (Independent Board member)
CEO
Engineering Quality Operation AFC Marketing Sales
Back Office Bike & OEM Program Manager
Scooter Program Manager
Project Test Certification International After Sales Purchading Logistic Manufactoring Direct Sales Italy Sales Engineering engineering & Normative Sales Service
Organization evolution 9 Key success factors Askoll EVA
Askoll EVA is the leader of the italian e-scooters market from 2015 to 2018, and is one of the top 10 players in French e-scooter market. Askoll EVA is part of Askoll Group, that consists of 11 companies operating in diversified businesses (appliances, aquarium and electric vehicles) in strategic locations around the world. In the start up phase investments and the financial sustainability of Askoll EVA have been guaranteed by the parent company Askoll Holding. The electric motor is one of the alternative propulsion systems that ensures the achievement of the goals of the European Union contributing to the implementation of integrated mobility policies that provide a sustainable environmental framework. In this scenario, Askoll owns exclusive strengths represented by: • a technological know-how and infrastructure for the mass production of high efficiency electric motors suitable for urban mobility vehicles; • knowledge and skills about the industrial assembly which grant the development of manufacturing systems "tailor-made" for each of the vehicles within the project.
Full control of the design and production process, especially in relation to the most critical components (and more expensive), allows the company to keep costs low and to be very aggressive with respect to the price of the vehicle. Design, development and production of the MADE IN ITALY power train represent the state of the art both in terms of design and in terms of quality
Design - Italian design, clean and ergonomic lines for a sober and elegant style Technology - Snappy performance with very low power consumption Easy to recharge - i) Removable battery for bikes and scooters, ii) Batteries can be charged from an house socket Flexibility - Ability to overcome the usual urban limits and enter the LTZ enabled to electric vehicles.
10 NEW COUNTRIES 2019 Askoll EVA EU Distribution Network Germania (01/2019) Romania (03/2019) Montenegro (03/2019) Macedonia – (03/2019) Askoll EVA distributes its solutions in Lituania (06/2019) 21 Countries through
More than 250 dealers and service network and 11 independent Distributors / Importers
3 Askoll Store in Vicenza, Milan and Paris
2 main branch: Askoll Italy & Askoll France
11 1.1 Business model, resources and distinctive skills
12 Distinctive skills and Key success factors Askoll EVA
Production & Sales and Marketing and R&D Supplying Logistics CLIENT assembling Aftersales communication
• High level of vertical • Purchase orders • Production and • Single warehouse • Distribution channels • Events and trade integration, from the management assembling activities management management: dealers fairs organization design of the are all developed in and stores for private • Suppliers’ scouting • Complete • Digital, media and machinery to the house thanks to a clients and direct sales traceability of the advertisement entire production • Main strategic high level of know for professional clients main parts present production process supplier is Askoll how and vertical in each electric • Identification and Holding for integration • Realization of • Applicability of the vehicles acquisition of new electronic special projects (e.g. kit used in Askoll • Organization in four professional clients components • Execution of the ebolt launch) electric vehicles in main production shipping of finished • Partnership with new other new projects divisions: battery, • Preparation of products (Ex Works dealers (e.g. go kart) motor, e-scooter advertisement approach) and e-bike • Support to post sales, material • Utilization of customer care and patented • Local marketing technical assistance technology activities • Ability to forecast in • High quality spare • High production • Short delivery • Capillarity of the • Ability to forecast in advance future parts and efficiency times distribution network on advance future technological components key geographies market trends • Production costs • Specialized spare trends supplying capacity control capability parts warehouse • Focusing on high value • Discovering new • Continuous • Multiple top player customers and growing target • Production process • Optimisation of monitoring of the sources for all maximize customer segments with high continuous transport KSFs competitors’ strategic retention potential improvement management products offer components • Speedy of interventions • Brand awarenss • Part of the • Investments in • A constant with dealers and clients machinery used for • Customer technical cooperation with the assembly of the • Continuous training satisfaction analysis innovation and R&D R&D and Quality components is teams • High quality level of the • Speed TTM (Time To made by companies services provided Market) for new • Continuous of the Askoll Group product scouting activity
development Insourcing Level
Full outsourcing* Full insourcing Partial insourcing*
* Services from Askoll Holding Corporate Dept. 13 Askoll EVA Business partner
All core components are made by Askoll, in Italy
• Battery packs
• BMS
• Electronics
• Power train
• Highest quality
• Internal components development
• Taylor made solutions based on customer specification
14 Askoll EVA Business partner
• Production capacity e-scooters: 30.000 / year
• Production capacity e-bikes: 20.000 / year
• Reliable lead time
• More than 30% of production is related to specific customizations
15 Askoll EVA Business partner
• Qualify supplier and certificate
• Stock and storage of raw materials and product integrated in the production plant
• Direct connection with the professional customers for deliveries, assistance and quality control
• Time to deliver spare parts with highest service level
16 Askoll EVA Product portfolio
Electrical Vehicles OEM Solutions
Bike (Pedelec) Scooter Off Field 2 Wheels
• Unisex, Man, Trekking, City, • Vehicles type L1 / L3 • Battery • Battery Folding, Kids, Kargo • Private & professional range • Synchronous electric motor • Hub motor • Private & professional • Sharing solutions • Gateway • Bottom bracket motor range • Fleet solutions • BMS • Electronic board • Sharing solutions • Accessories • ECU • Display • Accessories • Power unit • Electronic board • Display
17 Full electric solutions for urban sustainable mobility:
Individual Professional Sharing
18 2. Trends in H1 2019 – Forecast Year-End 2019
19 Mopeds market in Italy
Best sold models in H1 2019
MOPEDS market in Italy (traditional + electric) Data @ 30 June 2019 BRAND MODEL UNITS • Askoll eS2 is the fifth best-selling moped in Italy in the first half of Piaggio LIBERTY 50 4T 3V 1.562 2019 in the overall ranking Aprilia SCARABEO 50 2T 1.106 (traditional + electric)
Piaggio VESPA PRIMAVERA 50 4T 485 • Sales in Italy in H1 are almost 80% Beta RR 50 MOTARD 443 related to the retail segment
Askoll eS 433 2 • Sales linked to scooter sharing Fantic Motor 50 CC ENDURO/MOTARD 384 where limited. In the overall ranking only one other electric Beta RR 50 ENDURO 368 model appears, with the E-MAX SOCO TS1200R 241 characteristics of a small motorcycle (SOCO TS1200R) SYM Symphony 50 241 Peugeot Tweet 50 226
Source: Ministero delle Infrastrutture e dei Trasporti, elaborato da UNRAE per Confindustria ANCMA
20 e-mopeds and e-motorcycles market in Italy
Market share in H1 2019
Italian Market of e-mopeds and e-motorcycle Data @ 30 June 2019 BRAND UNITS SHARE% • Askoll confirms its position as the market leader in Italy in the first Askoll 875 41% half of 2019 of the electric NIU 376 18% motorcycle market
E-MAX 241 11% • Only 14% of sales in Italy in H1 Piaggio 147 7% were linked to the sharing segment 119 6% Lifan ME GROUP 105 5% • An important increase in sales of Askoll eS3 is reported. With 82 4% Govecs approx. 440 units registered, Macev 28 1% Askoll eS3 is the most sold electric vehicle in Italy BMW 20 1% Zero Motorcycle 19 1%
Source: Ministero delle Infrastrutture e dei Trasporti, elaborato da UNRAE per Confindustria ANCMA
21 e-scooter registration in main European Countries
Strong contraction of sharing sales in the whole continent
e-scooter registration in main 10 European Countries 9.000 (H1 2019, units) • France, Belgium and the Netherlands are the main 8.000 markets for electric scooters with registrations of over 6,000 units in Total Sharing** 7.000 the first half of 2019
6.000 • Italy and Spain, Askoll EVA's main markets, are growing slowly. 5.000 • At continental level, it’s 4.000 registered a strong slowdown in scooter sharing,segment which 3.000 develops less than 15% of the overall market 2.000
1.000
- France Belgium Netherlands Spain Germany* Italy Poland Austria
*Management estimate Source: Acem 22 BU Electric mobility H1 2019 Vs H1 2018 – Profit & Loss
H1 2019 H1 2018 • Revenue increase of 12% amounts in thousands of Euros compared to the same period of the previous year
Net sales 5.870 5.242 • Decrease of other economic indicators following to the rise in costs of structure (strengthening EBITDA (3.321) (2.604) of technical development and R&D structures to cope with numerous projects) and the EBIT (5.566) (4.668) reduction of the gross margin (retail sales higher than sharing) Profit (loss) for the year (5.459) 313
23 BU Electric mobility Evolution 2017-2019 Vs IPO Plan – Profit & Loss
Documento IPO Plan H1 FY20172019 H1 2018FY2018 FRC 2019 di ammontariamounts in thousands in migliaia of di Euros Euro Ammissione
RicaviNet sales netti 5.8703.691 5.24214.175 19.733 36.594
EBITDA (3.321)(6.845) (2.604)(4.294) (4.259) 1.362
EBIT (5.566)(19.454) (4.668)(8.532) (9.061) (3.124)
Profit (loss) for the year (5.459) 313
24 3. Industrial plan 2020 – 2021 – Key strategic elements
25 BU Electric mobility Plan 2020 – 2021 – Key strategic elements
The 2020-2021 industrial plan moves on four fundamental lines, which will allow the company to continue its significant growth in terms of volumes and turnover, as has happened since the launch of Askoll EVA and to reach break-even at EBITDA level in the year 2020
1. Extension of the range of vehicles currently offered by the company, both in the professional and retail segments;
2. Expansion of the customer base, in the various segments;
3. Extension of the geographic reference markets, with particular focus on the interesting North American and Latin American markets;
4. Strengthening of technical development projects aimed at reinforce the Group's presence in the OEM field.
26 Extension of range
Bike range overview
City, Urban, Sport, Folding, Kids. A complete Bike range for any needs and customers type Private eB1 eB2 eB Folding eB4 eB5 eBolt
series series series
Professional Kargo bike for small/medium delivery and last mile
Professional eB1 Kargo
NEW
Sharing solutions for private and public programs Sharing eB1 Sharing eB Sharing
27 Extension of range Scooter range overview
NEW NEW
A complete scooter range for cities and private users eS Individual eS1 eS2 eS3 NGS*
EVOlution
Professional delivery scooters: Food delivery, last mile, parcel and professional services
Professional eS pro 45 eS pro 70 eS pro K1 eS pro K2
NEW
Sharing solutions for public programs: standard & custom vehicles
Sharing eS2 Sharing eS Sharing NGS sharing* series Custom
* Presentation at the EICMA Show 2019 - On sale from spring 2020 28 Extension of range SHARING
Electric Vehicles
NEW
Electric kick-scooter* PEDELEC e-scooter
* Presentation at the EICMA Show 2019 - On sale from spring 2020 29 The phenomenon of the sharing of electric kick-scooters
A WORLDWIDE TREND
30 BU Electric mobility Expand customer base - Target in the sharing segment
31 BU Electric mobility Extension of the geographic reference markets
Top priority Askoll HEAD QUARTER Dueville - Italy
Increasing opportunities
Undeveloped markets
32 BU Electric mobility Reinforce the Group's presence in the OEM field
Askoll EVA is already active with different solutions based on our know-how, in different sectors and markets
Our solutions could be fitted on 2 wheels market and off field applications
2 Wheels Off Field Askoll EVA OEM Solutions
Bottom bracket HUB Wheels motor Motor up to 8.000W Electronic board
motor
CORE components for eBike and eScooter
manufactoring
Wheels 2 2
Batteries Power train Display Driver
CORE components for electric applications Electronic board and
Off Field Off Batteries Power unit Motor up to 8.000W gateway
34
The e-bike market in Western Europe: increasing opportunities for the components offered by Askoll EVA
Electric bicycle market in Western Europe 2016-2021 (million units)
Cagr 16-21 +11,2% COMPONENTS 9,8% 11,9% 13,6% 11,3% 9,7%
Bottom bracket HUB Wheels motor motor
2,5 2,3 2,0 1,8 1,6 1,5
Batteries Display
Western Europe 2016 2017 2018 2019 2020 2021
Western Europe
Source: Technavio 35 BU Electric mobility Industrial Plan 2020 – 2021 – Profit & Loss
FRCH1 2019 2019 H1BP 2018 2020 BP 2021 BP 2022 ammontariamounts in inthousands migliaia di of Euro Euros
Net sales 5.870 5.242 RicaviNet sales netti 19.7335.870 5.24233.274 43.292 55.411
EBITDA (3.321) (2.604) EBITDA (4.259) 259 2.790 4.997 EBIT (5.566) (4.668) EBIT (9.061) (5.127) (2.270) 0 Profit (loss) for the year (5.459) 313
36 BU Electric mobility Piano 2020 – 2021 – Key strategic elements
• Important extension of the range of vehicles, with the new family of NGS scooters and the new Askoll kick-scooter, which allows to intercept new customers, both on the EU market and on the American market. Aggression of the bike sharing segment with the eBsharing model.
• Significant expansion of the customer base in the EU and North America.
• Consolidation of professionals business at European level in the pizza delivery and mail delivery segments.
• Completion of the range of components for the e-bike sector, both for performance models (e-MTB) and for Cargo models, both for City and Trekking models, with the offer of electrification kits
• Next signing of development and supply agreements with leading companies in the automation sector for gates and push-hand trolley
37 100% MADE IN ITALY
All Askoll vehicles born 100% electric
All technical and core component (battery, control unit, power train and electrical engine) are made by Askoll
We are out first customers: all automation needed to produce and testing the vehicles is designed e produced by Askoll Group
We make solutions, in Italy Thank you for your attention