CENTER FOR AUTOMOTIVE RESEARCH 2019 MANAGEMENT BRIEFING SEMINARS KARMA AUTOMOTIVE AUGUST 7, 2019 BOB KRUSE, CHIEF TECHNOLOGY OFFICER KARMA BRAND ELEMENTS | OUR FOUNDATION LUXURY EXCLUSIVE DESIGN AND CRAFTSMANSHIP L INTUITIVE, INTEGRATED HIGH-TECH ADVANCED TECH H CUSTOMIZATION EVERY KARMA TO BE UNIQUE C OWNER EXPERIENCE, TREATMENT PERSONAL AND SPECIAL T 3 OPEN PLATFORM STRATEGY INVERTER BLACKBERRY QNX INTERNAL CAPABILITIES AND PARTNER COLLABORATIONS BENEFIT: JOYSON DYNO TEST FACILITY ACCELERATES PRODUCT AND TECHNOLOGY DEVELOPMENT GROWTH OPPORTUNITIES REAR DRIVE MODULE PININFARINA 4+1 BUSINESS MODEL NOT JUST AUTOMOTIVE, NOT JUST TECHNOLOGY EVOLVE ADAPT SUSTAIN DIVERSIFY REVENUE STREAMS AND CAPABILITIES MAXIMIZE PARTNER OPPORTUNITIES OPTIMIZE ORGANIZATIONAL EFFICIENCY THE KARMA GROUP KARMA AUTOMOTIVE KARMA TECHNOLOGY • Luxury segment/niche volume • Develop Technology for Karma vehicles • Grow Karma brand and value • Licensing and market Karma IP • Introduce all-electric platform – Multiple vehicle variants • Engineering services for other OEMs/start-ups • Develop premium brand for China. KARMA INNOVATION AND KARMA DESIGN CUSTOMIZATION CENTER • Production and Craftsmanship Hub to drive Karma sales • Complete in-house design to support unique Karma identify • Contract manufacturing for other OEMs • Design services to other OEMs. • Consulting and Design Services KARMA CAPITAL • Strategic investments in automotive technology companies • Lead fundraising and secure strategic and/or financial investor • Drive partnerships to sell/license Karma Technology and IP WE THINK AND WORK GLOBALLY FROM OUR CALIFORNIA HOME KARMA INNOVATION AND GLOBAL HEADQUARTERS D E T R O I T TECHNICAL CENTER CUSTOMIZATION CENTER IRVINE, CALIFORNIA DETROIT, MICHIGAN MORENO VALLEY, CALIFORNIA KARMA DEALER NETWORK • Growing list of 21 retail partners in the U.S., Canada, and select export markets • China in 2021 WANXIANG KARMA DESIGN AND ENGINEERING CENTER GROUP HANGZHOU, CHINA HANGZHOU, CHINA Engineering and Supply Chain Operations Primary Karma Group shareholder 7 KARMA INNOVATION AND CUSTOMIZATION CENTER MORENO VALLEY, CALIFORNIA Unique space-frame aluminum build capable, and water-based, environmentally sensitive paint process Home to new Customer Experience Center in late 2019 $100M+ Investment 550,000 Sq. feet Exclusive design and craftsmanship Vehicles handcrafted and customized 8 ACHIEVEMENTS TANGILBLE PROGRESS M O R E IMPORTANT THAN WORDS Created and delivered the world’s first luxury EV Established a global retail footprint Dedicated innovation and customization center Full battery electric vehicle (BEV) platform for 2021 Partner alliances that accelerate growth Strong private equity backing 9 KARMA’S NEW DAWN T O D A Y T O M O R R O W FUTURE THE NEW 2020 KARMA GT DESIGNED BY KARMA SC1 VISION KARMA REVERO GT PININFARINA CONCEPT Faster, smarter, and even The result of Karma’s partnership with the iconic A signpost to Karma’s future more stunning Italian luxury design and engineering house 10 K A R M A TODAY 2020 KARMA REVERO GT Our Core Pure Karma Beautiful Design Advanced Technology Faster, Smarter Best of both worlds – a luxury EV with no range anxiety 11 THE PERFORMANCE DIGITAL TWIN TRANSFORMING THE WAY IDEAS COME TO LIFE REQUIREMENTS IMPLEMENTATION Set Targets VEHICLE SYSTEM Suspension Loads – Road Noise COMPONENT Genset Mount Tuning BIW/TB Modeling Drive Motor Mount Tuning Improve “Requirements and Targets” 14 THE LUXURY CONTEXT WHY LUXURY OWNERS APPRECIATE ON -BOARD ELECTRIC GENERATORS: • WON’T WAIT TO CHARGE • DESIRE BEST OF BOTH WORLDS REVERO GT = ELECTRIC VEHICLE WITH AN ON- BOARD GENERATOR ADVANTAGES OF EV WITH ON-BOARD GENERATOR VS FULL BEV • 80 MILES OF PURE ELECTRIC DRIVING • PLUS 280 MILES FROM AN ON-BOARD GENERATOR • WORRY FREE DRIVING EXPERIENCE BECAUSE REVERO CREATES ITS OWN ELECTRICITY • NO NEED TO PULL OVER AND WAIT FOR A NEW CHARGE • THE RIGHT TECHNOLOGY FOR TODAY’S LUXURY OWNER THERE’S MORE KARMA COMING… P R O J E C T E - KLIPSE MULTI -VEHICLE GLOBAL 24 MONTHS PLATFORM -- FULL BEV • ONE PLATFORM, SEVERAL PRODUCTS • UNITED BY KARMA’S CALIFORNIA D E S I G N D N A • FULLY CUSTOMIZABLE • LEVERAGES THE EVOLVING NATURE OF HOW PEOPLE USE THEIR CARS LONG-TERM FOUNDATION SUSTAINABLE FUTURE TECHNOLOGY, PERFORMANCE CALIFORNIA DESIGN HERITAGE AND CUSTOMIZATION SUMMARY WELL - FUNDED FUTURE SOLID PRODUCT PLAN INTERSECTION OF TECHNOLOGY AND LUXURY STATE - OF- THE - ART INNOVATION & CUSTOMIZATION PARTNERS TO ACCELERATE TECHNOLOGY & PRODUCT OPEN PLATFORM KARMA’S NEW DAWN H A S A R R I V E D. T H A N K Y O U CONNECT WITH KARMA KARMAAUTOMOTIVE.COM KARMANEWSROOM.COM 19.