Energica Motor Company S.p.A. Presentation
May 2017 Company overview
Heritage
Energica Milestones
Factory
Global Marketing Events
Models
Market
Value Plan
Marketing Plan
Financial highlights
Energica Motor Company S.p.A. 2 Energica Motor Company
Energica Motor Company was officially founded in 2014 with the aim of creating the first high-powered electric motorcycles, but the electric motorcycle project started in 2010. CRP Group acted as a technology incubator and as financial investor until EMC decided to spin off and become an independent factory. The Energica concept comes from the eCRP 1.4, the runner-up World Champion and European Champion electric racing motorcycle (TTXGP Championship). . The eCRP team realized in just 6 months a high-performed electric racing motorcycle. After two years of racing, the eCRP team started working on the road version: Energica. EMC in the last six years has been able to design and develop internally high performing electric motorcycles, thanks to CRP Group know-how. Today, after test and homologations, Energica motorcycles are on sales worldwide. In January 2016 Energica raised capital at AIM Milan Market, to scale the market and start global production.
Products ENERGICA EGO is the first model of EMC, it is the first Italian high-performing electric sportbike. ENERGICA EVA the new streetfighter model.
Current status Energica has contracted with the majority of its key suppliers and has set up the production facility in Modena. Additionally, Energica has unveiled the product design process of its third vehicle, an “old-school” style motorcycle named Esse Esse 9.
Energica Motor Company S.p.A. 3 Energica Motor Company
Energica Values Statement It is not the bricks and mortar nor the machines and processes, but the human elements that enable our company to be truly valuable. They will allow us to lead the industry by providing the technological superiority and focused discipline needed to lead the market.
Energica Strategy Energica Ego Objective To become the best designer and manufacturer of performance-driven electric motorcycles with the most covered brand in the world within five years. Aim To launch a focused product line of state-of-the-art electric motorcycles that are unique to the PTW industry. Advantages Energica benefits in countless and incalculable ways from the close relationship Energica Eva and consultation with parent company CRP Group who is a leading partner in the F1 industry. Working in a problem solving culture, whose fast customer response approach, top quality production, cross sector capabilities with the ability to rapidly analyze problems and provide solutions has been critical to CRP’s success. The overall culture that distinguishes CRP group is fully integrated into Energica Motor Company. Immersion in the world of F1, aerospace industries and CRP market environment keeps Energica at the state of the art today and poised for future technology Energica Esse Esse 9 innovation.
Energica Motor Company S.p.A. 4 Company overview
Heritage
Energica Milestones
Factory
Global Marketing Events
Models
Market
Value Plan
Marketing Plan
Financial highlights
Energica Motor Company S.p.A. 5 Heritage - The CRP Group
CRP Group has 45 years of experience in motorsports alongside the major international teams and it consists of five companies.
CRP Engineering, CRP Meccanica, CRP Service, CRP Technology, CRP USA and Energica Motor Company. Each reality is an example of excellence in its target sector:
Yacht & Sail Motorsport Automotive
Space Design UAV
Energica Motor Company S.p.A. 6 Company overview
Heritage
Energica Milestones
Factory
Global Marketing Events
Models
Market
Value Plan
Marketing Plan
Financial highlights
Energica Motor Company S.p.A. 7 Energica Milestones
Start of the Electric motorcycle project (within CRP Group) • Energica EGO launch • Energica new headquarters
2009 2010 2011 2013 2014 2015 2016
eCRP – the electric racebike First participation at • Establishment of wins European Electric EICMA* Energica Motor Championship Company Srl Location • Worldwide Demo Tour (USA+ EU+ MC) Parma
Modena
ENERGICA • Stock Market • Opening Galleria Bologna Energica (San Francisco)
* The most important motorcycles fair in the world
Energica Motor Company S.p.A. 8 Energica Milestones 2016
• Launch of Energica Eva • Preparation of product Industrialization • US and European Homologation • Energica Eva Ride Experience • Energica New Headquarters • Opening of branded display halls • News sales strategy • Unveiling Esse Esse 9 prototype • Sales Network Growth Feb/March April May June July August Sept/Oct. Nov/Dec
Sales Ego pre- Moving in the new Start production Deliveries Eva Opening Galleria New dealers New sales Eicma 2016 – series headquarters Energica in San (Spain) strategies (Value The International Bay Area Grand opening – Francisco Plan) Motorcycling Fair USA market Energica Eva One-day trip LA- new factory strategy Ride Experience SF Energica Sales Network Europe Growth Goodwood Festival California Sales License
Energica Motor Company S.p.A. 9 Energica Milestones 2016
Stock market entry USA Operations
EU Sales Network
• Orders to suppliers for the first batch (100 motorcycles)
• Orders of tooling and tools for serial production
• USA Operations organization
• Hiring new technical profiles
• Sales Network growth (Sweden, Israel)
• California sales license
• Inauguration new operation in San Francisco with The Honorable Ambassador Armando Varricchio and The Consul Mauro Battocchi.
Energica Motor Company S.p.A. 10 Energica Milestones 2017
• Exhibition at the International Consumer Electronics Show, CES 2017 – Las Vegas, with CRP Group and CRP USA
• Partnership with Apache Customs Motorcycles for a new electric café racer based on Energica Eva. The bike is called Midnight Runner and was unveiled at Bike Expo, Verona, Italy.
• Energica joins CharIN e.v., a registered association founded by mayor manufacturers and suppliers for the electric automotive industry, to promote the CCS standard worldwide. Energica is the only manufacturer of electric motorcycles to join the Association.
11 Energica Motor Company S.p.A. Energica Milestones 2017
• Homologation Euro 4 achieved
• Stefano Benatti joined Energica team as General Manager USA
• New commercial agreements in France (Paris) and Italy (Milan)
• New commercial agreements in US: in California (Orange County), Florida (West Palm Beach) and New Hampshire (Nashua)
Energica Motor Company S.p.A. 12 Energica Milestones 2017 First Energica Fast Charge
• Unveiling the first “Fast Charge Infrastructure Program” charging station.
• Following Nissan and Tesla, Energica unveiled the first Energica fast charging station at Selva di Val Gardena, Dolomiti - Italy.
• The 50 kW Fast Charging Station has been installed in Str. Meisules, 144, 39048 Selva di Val Gardena (BZ) thanks to the partnership with Alperia.
• This station is the first fast charge in Dolomites Area and is part of the "Energica Fast Charge Infrastructure Program".
• With this new installation, motorcyclists and other EV customers will finally be able to discover the amazing Dolomites area with full electric vehicles and without any range anxiety
13 Energica Motor Company S.p.A. Company overview
Heritage
Energica Milestones
Factory
Global Marketing Events
Models
Market
Value Plan
Marketing Plan
Financial highlights
Energica Motor Company S.p.A. 14 Energica Headquarter
Production Dept. End-of-Line Testing
Production Dept. Technical Dept.
Showroom Energica Lounge Energica Factory
Energica Motor Company S.p.A. 15 Energica Sales Network
Energica Dealers
Swiss Dealer Dutch Dealer Spanish Dealer
Energica Motor Company S.p.A. 16 Company overview
Heritage
Energica Milestones
Factory
Global Marketing Events
Models
Market
Value Plan
Marketing Plan
Financial highlights
Energica Motor Company S.p.A. 17 Energica Motor Company – The Ultimate Drag Race
Drag Race 2015 – Energica Team & Customers 18 Energica Eva Cal 1 Tour LA to SF Bill Levasseur on Energica Eva
19 The Insane Drag Race: Energica street-legal production motorcycle vs WSBK Pedercini racebike
Energica Motor Company S.p.A. 20 Energica Brand Ambassador Norway Riding Experience
Terje Håkonsen and Thomas Sigvartsen on Energica motorcycles 21 Company overview
Heritage
Energica Milestones
Factory
Global Marketing Events
Models
Market
Value Plan
Marketing Plan
Financial highlights
Energica Motor Company S.p.A. 22 The electric sportbike: 100 kW (ca 136 hp) motor power, 195 Nm torque, top speed 240km/h Fast charge on board: 0-85% < 30 min)
Energica Motor Company S.p.A. 23 The electric streetfighter: 70 kW (ca 95 hp) motor power, 170 Nm torque, top speed 200km/h Fast charge on board: 0-85% < 30 min)
Energica Motor Company S.p.A. 24 EsseEsse9, il concept
At EICMA 2016, the company unveiled a new concept, an evolution of design and technologies.
The new prototype has been called EsseEsse9, as the real name of Via Emilia, the major road that crosses the Italian Motor Valley. EsseEsse9 approaches the old- school branch of motorcycles as it’s an essential prototype: a concept that encloses the genuine engines passion typical of our region.
The intention was therefore to create a passionate, but above all a heartful motorcycle. Even the choice of materials was audacious: the structural aluminum machined plates and folded, riveted and anodized aluminum sheets, are completely unveiled. The design and function are combined
Energica Motor Company S.p.A. 25 FAST CHARGE CONNECTIVITY ITALIAN DESIGN DASHBOARD The only moto with integrated The vehicle can be equipped with EGO has an Italian-style, A 4,3" Color Display allows great Fast Charge “short-range” and “long range” tubular, craftsman-like trellis flexibility, supporting the flow of connectivity services BATTERY high strength steel frame information and interactivity with the PACK vehicle system Lithium-polymer battery with internal VEHICLE CONTROL designed cooling UNIT system. Dozens of sensors and EGO’s battery, inverter, charger electromechanical and ABS are constantly devices ensure monitored and managed by the maximum vehicle VCU, completely designed and performance and developed by Energica driver safety PARK ASSISTANT In order to facilitate SUSPENSION parking and EGO is equipped with maneuvers on adjustable Bitubo slopes or into rush (rear) traffic
KEY FEATURES RIDE BY WIRE ENGINEERING TIRES ABS Top speed: 150 mph / 240 kmh The ride-by-wire system ensure the perfect EGO is equipped Ego has the latest From 0 to 60 mph / 100 kmh: < 3" driving experience with 4 different engine BRAKES with road-gripping generation ABS mappings and 3 different mappings of Pirelli Diablo Rosso Torque: 195 Nm (0 to 4700 rpm) Front / rear braking BOSCH with rear-wheel regenerative braking II tires lift-up mitigation system Fast charge: 30 minutes (80%) systems provided by Zero emissions Brembo
Core technology / IP Selected supplier
Energica Motor Company S.p.A. 26 Company overview
Heritage
Energica Milestones
Factory
Global Marketing Events
Models
Market
Value Plan
Marketing Plan
Financial highlights
Energica Motor Company S.p.A. 27 Global Electric Motorcycles Market
• Electric Motorcycles & Scooters Market size was valued at over USD 25 billion in 2015 and will grow at more than 10% CAGR estimation from 2016 to 2024. Global shipments are projected to surpass 60 million units by 2024. * • According to ACEM E-motorcycles registration report we can see more than positive signals from the European Market: + 50% compared to 2015. • Joel Couse, chief economist for Total, predicted that sales of electric cars will surge from about 1% globally in today’s new car market to up to 30% of the market by 2030. • According to Tracxn Electric vehicles Report electric vehicle space in 2016 saw investments increase by 500% from previous year. Energica Motor Company was the only one to go public in this sector in the last three years.
* Source: “Electric Motorcycles & Scooters Market Size By Product (Motorcycles, Scooters), By Battery (SLA, Li-ion, NiMH), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, France, China, India, Japan, Brazil, Mexico), Growth Potential, Price Trends, Competitive Market Share & Forecast, 2016 – 2024” by Global Market Insights, Inc.
Energica Motor Company S.p.A. 28 Competitive Scenario
• The competitive environment is mainly composed by a few of small Electric Motorcycles focused players. Below on the left is a table showing the companies operating in the production and sale of electric motorcycles and the companies which intend to launch electric motorcycles. • On the right is a graph illustrating the competitive positioning of the Company compared to the current competitors within the high-powered electric motorcycles segment. As far as Energica’s competitive positioning is concerned, we view it as a premium brand in the High Powered Two Wheels Market, i.e. potentially competing with KTM and Harley Davidson (or with the Italian Ducati if we want to remain in the Italian motor valley), but avoiding direct competition as it is specialised in innovative electric motorbikes. On the other hand, Polaris, with the acquisition of the motorcycles division of Brammo, represents the first mass market player that enters the electric market, suggesting that there is a growing interest towards the sector of electric vehicles.
Main Electric Motorcycles competitors - availability Competitive Scenario high-powered
• BMW C evolution (maxi-scooter) ✓
• Producer of electric motorcycles only • Current product range made up by 6 models ✓
• Sales started in July 2009 • Polaris acquired Brammo’s electric motorcycles ✓ products Premium division
• Battery-powered Freeride E launched in September 2014 ✓
• 1 electric motorcycle prototype unveiled to press in June 2014 (LiveWire) X products Mass
• Electric motorcycle cocnepts under development and Electric motorcycles manufacturer in pipeline for production (PES/PED) X Traditional motorcycles manufacturer
Energica Motor Company S.p.A. 29 Company overview
Heritage
Energica Milestones
Factory
Global Marketing Events
Models
Market
Value Plan
Marketing Plan
Financial highlights
30 Energica Motor Company S.p.A. Value Plan
Energica is working on a plan to warrantee the value of 2 years used Energica motorcycles. The plan is based on a package of measures including that the manufacturer will guarantee the value of the vehicles sold minimum 50% of the initial price after 24 months, VAT included.
The plan works as follow:
1.Trade-in of the motorcycle for the purchase of a new Energica model: The official Energica Dealer undertakes to evaluate the motorcycle given in trade-in at 50% of the retail price + € 6.000,00 VAT Included. This part is paid as over- valuation by Energica. 2.Super-warranty of the battery for 100.000km or 5 years [1] After 24 months from the motorcycle registration (minus 1 as notice), the Customer, based on its own feeling experience, has to choose between the two options. The trade-in of the motorcycle will be up to the local dealer that originally sold the bike. The extra bonus will be paid directly to final customers by Energica Motor Company. The plan is covered under the “sales support costs” approved in the official business plan.
[1] Whichever occurs sooner
Energica Motor Company S.p.A. 31 Fast Charge Infrastructure Program
Energica is the unique EV Motorcycle with DC fast-charge technology based on CCS Combo that allows the bike to charge 80% of battery in 20 minutes.
Energica intends to deploy an installation plan of fast charge points targeting the best roads motorcyclists love to ride through. In partnership with several companies (Utilities, Hardware provider, charging services) Energica will either co-finance the installations of dedicated chargers (DC technology 20kw, Combo CCS standard plugs) or facilitate the access to existing ones. This will allow Energica customers to enjoy the best roads without any range anxiety. Energica will fill the gap to guarantee EV motorcycle rides.
A detail plan on routes is in process according to Energica dealership network and a first round of installations has been identified in some locations in Italy (Energica Fast Charge already unveiled in Dolomiti area) and in California. In the areas where charging network are already available Energica facilitates customer to used them. In The Netherlands Energica has the option to use fast charge network for free thanks to an agreement with Fastned Company that provides 4 years fast charge through the growing network with 20-30 minutes average charging time.
The fast-charge installation project foresees multiyear plan with prospective investment up to 1.mln € according to market areas and needs, starting from for Italian region and California, to be deployed by spring 2017, covered under the marketing budget.
Energica Motor Company S.p.A. 32 Focus: partnership with Agos
• Thanks to the partnership with Agos in Italy it is possible to have a financing plan according to customer needs. Energica dealers and Energica salespeople are working on similar partnerships In EU and US:
• Leasedesk - The Netherlands example, Energica Eva:
✓ Price: € 32.730,50 ✓ Down payment: € 9.738,00 ✓ Final installment: € 5.000,00 ✓ 60x monthly payments of € 268,01
• Close Brothers Motor Finance – UK example, Energica Ego:
✓ Price: £ 24,999.00 ✓ Down payment : £ 6,950.01 ✓ Final Installment: £ 10,665.00 ✓ 36x monthly payments of £ 300.00
Energica Motor Company S.p.A. 33 Company overview
Heritage
Energica Milestones
Factory
Global Marketing Events
Models
Market
Value Plan
Marketing Plan
Financial highlights
Energica Motor Company S.p.A. 34 Future Strategies and Plans
Future Strategic milestones
• Launch of a New Model (4th) • New additional production line • Start Series Production • Launch of a New Model (3rd)
2016 2017 2018 2019 2020 2021 CONSOLIDATION PHASE CONSOLIDATION • New additional production • 2 New additional • Restyling of the line production lines first 3 models
Energica Motor Company S.p.A. 35 Marketing Plan Milestones
The marketing strategy aims to define company and products placements, according to our target:
a) To strengthen the credibility of the company and its products
b) To make the target aware of the value proposition of our product
c) To leverage the products in order to create community
Energica Motor Company S.p.A. 36 2017 Marketing Plan- activities
1) Fairs (International, National, local, EU/USA)
2) Show tester & Brand ambassador (8 tester in USA/EU and several testimonial in key markets)
3) Long test media (strengthen the collaboration with media with long test ride)
4) Product Communication (ADV plan between February and June on 8 EU media and 3 USA media in several fields – motorcycling, sport, lifestyle)
5) Digital Communication (website SEO, social media marketing and google ads)
6) Promotions (Value Plan, Kit promotion, fast-charge)
7) Sales Development (new markets and dealer network development)
Energica Motor Company S.p.A. 37 Company overview
Heritage
Energica Milestones
Factory
Global Marketing Events
Models
Market
Value Plan
Marketing Plan
Financial highlights
38 Energica Motor Company S.p.A. ANALYST COVERAGE
"Ready to scale up"
● "High performing electric motorcycles manufacturer founded back in 2014, Energica Motor Company has a clear mission in mind: to create high performance - high powered electric motorcycles with top quality components.”
ValueTrack Analyst Coverage available on Energica Investors Relations section
Energica Motor Company S.p.A. 39 ELECTRIC REVOLUTION