Weaver smith fleet presentation

1 Confidential, 11/7/2012

FLEET ADOPTION TRENDS


1930- Today NOW

SMITH ELECTRIC VEHICLES

World’s largest

provider of

commercial

electric vehicles

today with

thousands of

vehicles on the

road and a 90

year history of

zero-emission.


SMITH MANUFACTURING FACILITIES

Smith US

Kansas City, Missouri

Smith Europe

Newcastle, England

Smith East Coast

Bronx, New York


Two Platforms with Multiple Configurations

CLASS

Class 2-3

• Payload up to 5,100 lbs

• Up to 110 miles per charge

PLATFORM CONFIGURATIONS

Edison™

Newton™ Class 4-6*

• Payload up to 16,200 lbs

• Up to 150 miles per charge

* Class 7 in development


APPLICATIONS


FLEET PARTNERS


• Prevents use of 3rd party parts

• Seamless integration with BMS

• Scalable across platforms

Drive Train Control System

PROPRIETARY SMITH TECHNOLOGIES

• 1,500-2,200 data points per sec

• >1,000,000 mile database

• Predictive maintenance

• ROI reporting/marketing

• Continuous product improvement

Telematics

• Accommodate cells from multiple suppliers

• Maximize price competition

• Reduce dependence

• Fast integration of new tech

• Control IP so can use EMS

Cell Agnostic BMS and Mechanical Packaging

• Multiple battery size options

• Match capacity to duty cycle

• Easy to add or subtract capacity

• Move batteries between trucks

Modular Battery System


FAVORABLE TOTAL LIFE COST VS. DIESEL

Economic Impact Savings vs. Diesel Equivalent

Maintenance & Fuel Savings +$87,417 over five years

Five Year Total Cost of Ownership +$42,418

Ten Year Total Cost of Ownership +$159,963

Note: Based on 70 miles per day, $4.12/gallon diesel fuel, $0.107 cost of electricity, $0.22/mile cost for diesel maintenance and $0.07/mile cost for EV maintenance. Assumes $20K state incentive per vehicle.


SUSTAINABILITY IMPACT:

1/10TH CARBON FOOTPRINT VS. DIESEL

Sustainability Impact Savings Vs. Diesel Equivalent

Total Greenhouse Gas Offsets 321.10 tons Yr. 5

Gallons of Fuel Eliminated 6,423 gallons Yr. 5

Hours of Driver Diesel Fume Inhalation Spared

>36K hours Yr. 5


Aging Medium Duty

Truck Fleet

Government Incentives/Regulation

TRENDS FAVOR FLEET ADOPTION

Corporate Support for Electrification

Higher Prices for Diesel Trucks

Diesel Fuel Price Volatility

ACCELERATING ADOPTION OF

COMMERCIAL EVs


$30,750

$65,000

$19,000

$55,000

$21,500

$169,000

$24,250

$192,000

Passenger Cars Medium-Duty Trucks Passenger Cars Medium-Duty Trucks

Vehicle Cost Lifetime Fuel Cost

(4)

(1)

(2)

(5)

(1)

(3)

Notes: (1) Smith estimate based on dealer MSRPs (2) Assumes 80 miles per day, 6 days a week, 52 weeks a year; 7 MPG; diesel price of $3.96/gal which represents the average price in the U.S. 2012YTD as reported by the EIA; and average life of 12 years (3) Assumes 80 miles per day, 6 days a week, 52 weeks a year; 11 MPG; diesel price of $7.05/gal which represents the average price across 29 European countries 2012YTD as reported by the Automobile Association; and average

life of 12 years (4) Average new car price from TrueCar. Lifetime fuel cost assumes 13,476 miles driven as reported by the Federal Highway Administration; 22.8 MPG as reported by the EPA; gasoline price of $3.75/gal which represents the

average price in the U.S. 2012YTD as reported by the EIA; and average life of 10.2 years as reported by the Bureau of Transportation Statistics (5) Average car price from EurActiv. Lifetime fuel cost assumes 13,500 miles driven; 40 MPG; average fuel price (gasoline and diesel) of $7.04/gal; and average life of 10.2 years Note: Amounts are rounded

TCO DIFFERENT FOR FLEETS

Acquisition Cost and Lifetime Fuel Cost – Passenger Cars versus Medium Duty Trucks

Lifetime fuel costs for commercial vehicles can be 2.5x–3.5x the cost of the vehicle making electrification compelling relative to passenger cars

U.S. Europe


Short Payback Periods

No Need to Build Distributed Charging Infrastructure

Long Battery Life

Ideal for Regenerative Braking

Zero Emissions, No Vibration and Silent Operation

COMMERCIAL DIFFERS FROM PASSENGER

Commercial EVs do not face the same issues as passenger EVs

Fixed Routes Less Than 100 Miles

No “Range Anxiety”

Operate From Central Depots

Low Speeds

Lots of Stops and Starts

High Levels of Noise, Vibration and Air Pollution

Poor Fuel Economy


90

100

110

120

130

140

150

160

2004 2005 2006 2007 2008 2009 2010 2011 2012

Pro

du

cer

Pri

ce In

dex

HIGHER DIESEL TRUCK PRICES ARE MAKING EVS MORE ATTRACTIVE

Source: U.S. Bureau of Labor Statistics, U.S. Department of Labor, data re-based to January 2004. Medium Duty Trucks are Trucks, Truck Tractors, and Bus Chassis 14,001 to

33,000 lbs; Heavy Duty Trucks are Trucks, Truck Tractors, and Bus Chassis 33,001 lbs. or more; and car and Light Duty Trucks are Passenger Cars and Chassis 14,000 lbs or less

Car and

Light Truck

Prices Flat

Medium

Duty Truck

Prices Up

45%!

Heavy Duty

Truck Prices

Up Over

30%

Key Drivers

Stricter EPA emissions mandates

State clean air mandates

Higher CAFE standards

California ZEV mandate

Upcoming EPA‘13 / GHG‘14 regulations

U.S. Wholesale Commercial Truck and Passenger Car Prices (Indexed to 100; 2004 = 100)


DIESEL FUEL PRICE VOLATILITY MAKES ELECTRIFICATION ATTRACTIVE

Diesel Fuel Prices versus Commercial Electricity Prices in the U.S. (Indexed to 100; 2002 = 100)

Source: U.S. Energy Information Administration

0

50

100

150

200

250

300

350

400

450

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Diesel #2 Price

Commercial Electricity

PriceInd

exed

Pri

ce (

20

02

= 1

00

)


74% Energy Cost Savings • Dramatically lower cost • Very low price volatility

72% Preventative Maintenance Cost Savings

• No oil changes • No filter changes • No transmission fluid changes • No UREA

“There is virtually nothing that goes wrong with

these things” —Mike Payette, Dir. Fleet Equip., Staples

• Fewer moving parts • 20-year electric motor life • Regenerative braking increases brake

life

DIRECT COMPARISON VS DIESEL

Diesel Truck Smith Newton

Route Length 100 miles

Fuel Efficiency 10mpg 0.8 kwh/mile

Diesel Price $3.50/gallon $0.11 kwh

Daily Energy Cost $35 $9

Annual Energy Cost $8,900 $2,300

Annual Preventative Maintenance $900 $250

Repair Maintenance Brakes, Exhaust, Engine, Tires, Transmission

Brakes, Tires, Grease Fittings

Source: What Staples Expects from All-Electric Medium-Duty Work Trucks, Work Truck Magazine, March 2011 and Company estimates

We can deliver millions of dollars of savings annually across a large fleet

Significant Fleet Support for

Electrification

“ ”

…costs of operating and maintaining electric vehicles are significantly less than… traditional

internal-combustion-engine vehicles. In some cases we’ve achieved savings of 70% to 80%...

“

”

The first million miles with electric trucks have been a journey of understanding and refining both

how and where we use these vehicles…we are now in position to more quickly accelerate our

strategy and grow the electric vehicle fleet.

“ ”

UPS’ research and development of alternative technologies has determined it is time to explore

electric-drive systems within the short-range segment of our delivery fleet….

“

”

The addition of…all-electric delivery trucks is the latest example of our commitment to

continually improve our delivery fleet and its impact on the environment…Over time, we'll look to

increase the number of these trucks in the Staples fleet…

“

”

Coca-Cola is proud to partner with Smith Electric Vehicles in making our delivery fleet more

efficient. Smith...will help us to accelerate conversion in New York as we continue to build a more

efficient and environmentally-friendly Coke fleet.

– Fred Smith, CEO, FedEx, February 2011, Fortune Magazine

– Mike O’Connell, Senior Director of Fleet Capability North America, Frito-Lay, May 2012, PepsiCo press release

– Mike Britt, Director of Vehicle Engineering, UPS, August 2011, UPS press release

– Mike Payette, Manager of Fleet Equipment, Staples, October 2010, Staples press release

– Steven Saltzgiver, Director of Fleet Operations, Coca-Cola Refreshments, November 2011, Smith press release

Documents

Weaver smith fleet presentation