Workhorse Investor Presentation 5-22- .4 About Workhorse Workhorse is an American technology company

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  • 2017 Workhorse Group Inc. All Rights Reserved.

    WORKHORSE GROUP INC.JANUARY 2017

  • 2017 Workhorse Group Inc. All Rights Reserved.

    INDUSTRY DATA AND FORWARD LOOKING STATEMENTS

    1

    Statements made in this presentation regarding matters that are not historical facts are forward-looking statements within the meaning of

    the Private Securities Litigation Reform Act of 1995. Because such statements are subject to risks and uncertainties, actual results may differ

    materially from those expressed or implied by such forward-looking statements. In some cases, you can identify these forward-looking

    statements by terms such as anticipate, believe, continue, could, depends, estimate, expects, intend, may, ongoing, plan,

    potential, predict, project, should, will, would or the negative of those terms or other similar expressions, although not all forward-

    looking statements contain those words. We have based these forward looking statements largely on our current expectations and projections

    about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and

    financial needs. These forward looking statements are subject to a number of known and unknown risks, which include management and

    employee operations and execution risks; a failure to develop sales and the loss of any key customer that we may develop; loss of key

    personnel; competition in the markets we serve; intellectual property risks; our ability to fund our working capital requirements; risks

    associated with the uncertainty of future financial results; risks associated with this offering; risks associated with raising additional capital

    when needed and at reasonable terms; and risks associated with our reliance on third party suppliers of raw materials and other

    organizations that provide goods and services to us. For more information on the risk factors related to these forward-looking statements,

    please refer to Workhorse's Annual Report, Quarterly Report, and other periodic regulatory filings as filed with the SEC. New risk factors

    emerge from time to time, and it is not possible for our management to predict all risk factors nor can we assess the impact of all factors on

    our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in,

    or implied by, any forward looking statements.

    Workhorse obtained the industry and market data used throughout this presentation from our own research, internal surveys and studies

    conducted by third parties, independent industry associations or general publications and other publicly available information. Independent

    industry publications and surveys generally state that they have obtained information from sources believed to be reliable, but do not

    guarantee the accuracy and completeness of such information. Forecasts are particularly likely to be inaccurate, especially over long periods

    of time. We are not aware of any misstatements in the industry and market data we have presented herein, but estimates involve risks and

    uncertainties and are subject to change based on various factors beyond our control.

  • 2017 Workhorse Group Inc. All Rights Reserved.

    INVESTMENT HIGHLIGHTS

    Proprietary technology enabled by Tier-1 suppliers, including

    BMW and Panasonic

    Experienced and seasoned management team with decades

    of experience in technology and engineering

    2

    Leading manufacturer of medium-duty electric step vans in the U.S. targeting commercial fleets

    Only OEM building electrified medium-duty vehicles in the U.S.

    Billion dollar annual market opportunity as fleets turn over 20,000 step vans per year

    Blue-chip customer base at a critical inflection point of adoption

    UPS, FedEx, Cintas and Alpha Baking Company, among others

    Strong economic value proposition versus conventional step-vans

    400%+ fuel efficiency improvement 6 MPG to 30+ MPGe

    $165,000+ cost savings over the life of each vehicle

  • 2017 Workhorse Group Inc. All Rights Reserved.

    Automotive electrification company with strong value proposition

    for its customers

    Workhorse Medium-Duty Step Chassis: E-Gen Range-

    Extended Electric Vehicle and E-100 Full Electric

    Real-Time Telematics: cloud-based, database-driven proof-

    of-performance system

    HorseFly Delivery Drone: proprietary unmanned aerial

    system designed for the package delivery market

    Capacity to produce 60,000 chassis per year

    Partners with Morgan Olson for the body of its step vans, the

    same supplier for standard UPS trucks

    Proven deployment with premier delivery providers

    3

    WORKHORSE AT A GLANCE

    Workhorse (WKHS or the Company) is a leading manufacturer of last-mile, cost effective delivery systems

    Over 100 Workhorse vehicles on the road today, with another 245 orders in backlog

    Provides range-extended electric vehicles for UPS, FedEx, and Alpha Baking Company, among others

    Pre-qualified supplier for the U.S. Postal Service (USPS) Next Generation Delivery Program with its partner VT Hackney, a

    multinational specialized body and cab company

    Proprietary technology protected by a strong patent portfolio

    Six granted patents, with two additional patents pending

    FOUNDED: 2007 // HEADQUARTERS: CINCINNATI, OHIO // EMPLOYEES AND CONTRACTORS: 100

    EXCHANGE: NASDAQ // TICKER SYMBOL: WKHS

  • 2017 Workhorse Group Inc. All Rights Reserved.

    RECENT DEVELOPMENTS

    4

    Workhorse continues to deliver on its business plan and is poised for success going forward

    Recent Business Highlights

    January 2016: Workhorse completes the first test delivery with its HorseFly Drone

    September 2016: UPS orders an additional 200 Workhorse electric vehicles as a follow-up order to its 125-unit order placed

    in 2015

    September 2016: Workhorse and its partner VT Hackney are awarded entry to the USPS Next Generation Delivery Vehicle

    Program

    October 2016: Workhorse signs a supply agreement with BMW for BMW i3 range extender units for the Workhorse E-Gen

    step vans

    December 2016: Workhorse completes the year with a record 114 vehicle deliveries

    Near-term Milestones

    Delivery of vehicles from Workhorses backlog

    Follow-up order from UPS and additional orders from new and existing customers, including the first commercial-scale order

    from FedEx

    Expecting first customer delivery utilizing Workhorses HorseFly Drone

    Delivery of prototype electric vehicles to USPS in September 2017

  • 2017 Workhorse Group Inc. All Rights Reserved.

    WHAT WE DO

    Workhorse chassis is offered in two battery-powered electric models:

    Workhorse E-GEN Range Extended Electric Vehicle delivers the

    equivalent of 30+ mpg compared to the 5.5 mpg of conventional

    fleet operators

    Workhorse E-100 Full Electric is a highway-capable, 100% electric,

    zero-emission vehicle that delivers approximately 100 miles of

    range

    Both models utilize Panasonic Li-Ion batteries

    E-GEN benefits from a BMW REx engine

    5

    Workhorse is a technology company offering integrated products, enabling greater efficiency and profitability

    1 23

    4

    Panasonic 18650 Li-ion Battery

    Pack with integrated and

    standard J1772 Charger

    Workhorse W88

    Straight-rail

    ChassisBMW REx Internal

    combustion engine

    configured as on-

    board Generator

    Electric Motor

    Direct-Drive =

    No Transmission

    Workhorse Step Vans

    Workhorse W88 Chassis Layout E-GEN Illustration

    Workhorse Metron Telematics

    HorseFly Delivery Drone

    Cloud-based, database-driven

    proof-of-performance monitoring

    system that provides clients access

    to real-time data to monitor,

    measure the performance and give

    fleet operators ultimate energy and

    route efficiency

    HorseFly is currently being developed

    for the package delivery market and

    other commercial applications

    Designed to comply with FAA guidelines

    Works in tandem with a Workhorse electric truck

    Delivers packages to remote locations while the driver continues on

    the main delivery route, saving the fleet operator fuel costs and

    increasing route efficiency

  • 2017 Workhorse Group Inc. All Rights Reserved.

    WORKHORSE WORKS WITH TIER-1 SUPPLIERS

    6

    Workhorse has successfully locked up best-in-class suppliers to ensure superior products

    Panasonic provides Workhorse

    with their lithium-ion battery

    technology

    In conjunction with Workhorses

    onboard management system,

    these products offer robust

    performance in any duty cycle

    or weather condition

    The BMW REx engine

    integration helps make the

    Workhorse E-GEN the most

    cost-effective delivery truck on

    the market

    The BMW REx engine

    eliminates range anxiety by

    providing the extended range

    required by delivery fleets

    Prefix provides premier design

    and engineering solutions

    Specializes in low volume

    custom vehicle projects, designs,

    prototyping, precision

    machining, and testing, amongst

    others

  • 2017 Workhorse Group Inc. All Rights Reserved.

    160,000

    244,200

    29,500

    22,700

    20,0007,000 5,000

    Parcel Delivery