Microvast : Q4 2023 Earnings Call Presentation

Q4 2023

Disclaimer

Forward-Looking Statements

This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "believe," "intend," "plan," "projection," "guidance," "outlook" or words of similar meaning. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control.

Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. All information set forth herein speaks only as of the date hereof and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication. Forecasts and estimates regarding Microvast's industry and end markets are based on sources we believe to be reliable, however there can be no assurance these forecasts and estimates will prove accurate in whole or in part.

Microvast's annual, quarterly and other filings with the U.S. Securities and Exchange Commission identify, address and discuss these and other factors in the sections entitled "Risk Factors."

Non-GAAP Financial Measures

This presentation contains adjusted gross profit, adjusted operating loss and adjusted net loss, which are non-GAAP financial measures. Adjusted gross profit is GAAP gross profit as adjusted for non-cash stock-based compensation expense included in cost of revenues. Adjusted operating loss is GAAP operating loss as adjusted for non-cash stock-based compensation expense included in cost of revenues and operating expense . Adjusted net loss is GAAP net loss as adjusted for non-cash stock-based compensation expense and change in on valuation of warrant liabilities and convertible notes. In addition to Microvast's results determined in accordance with GAAP, Microvast's management uses these non-GAAP financial metrics to evaluate the company's ongoing operations and for internal planning and forecasting purposes. We believe that this non-GAAP financial information, when taken collectively, may be helpful to investors in assessing Microvast's operating performance. We believe that the use of these non-GAAP metrics provides an additional tool for investors to use in evaluating ongoing operating results and trends because it eliminates the effect of financing, non-recurring items, capital expenditures, and non-cash expenses.

In addition, our presentation of adjusted gross profit, adjusted operating loss and adjusted net loss should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of non-GAAP financial metrics may not be comparable to other similarly titled measures computed by other companies because not all companies calculate these measures in the same fashion. Because of these limitations, these non-GAAP financial metrics should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using non-GAAP financial metrics on a supplemental basis. Investors should review the reconciliations in this presentation and not rely on any single financial measure to evaluate our business.

2GWh

Huzhou Phase 3.1

Automated line for 53.5Ah Successful industrialization Delivering qualified products

Construction phase nearly complete

2GWhRequires funding to cross finish line Clarksville Phase 1ADeliver cells to CV & ESS customers

Q4 2023 HIGHLIGHTS

Record Revenue Quarter

Expanding Commercial Vehicle Segment

Successes

•  Preparing to kick off serial delivery to major U.S. specialty vehicle OEM

•  Additional projects testing Microvast products for 2025

•  Expanding CV business in different vehicle segments

Challenges

•  Higher rate environment and demanding underwriting presented financing challenges for Clarksville project

•  Company reached a mutual resolution with customer for ESS business that reduced contract award and revenues

•  Short seller report and overall market sentiment for clean energy technology and growth companies

Q4 2023 Key Stats

$104.6M $276.4M

Revenue

Backlog

61%

Y/Y Revenue Growth

23.5%

Adj. Gross Margin

Commercial Vehicle Developments

Growing Our Footprint

APAC Update

Key Driver of Gross Margin Improvement

Production

• • Huzhou Phase 3.1 automated cell, module, and pack line completed and delivering 53.5Ah cells

• • No further significant CAPEX requirements on Phase 3.1 expected in 2024

Financials & Outlook

• • 2023 Revenues of $219M, up 18% Y/Y

• • 2023 Gross Margin expansion generated from Huzhou operations

• • 2024 Anticipated revenue growth Y/Y

• • 2024 Gross Margin target of 20-25%, operations now mature and self-funding

2024 APAC Catalysts:

•  China Market - Stable e-Bus revenues from established base of OEMs. Promising expansion in electrified mining truck and earth moving segments, where high power batteries like our 48Ah offer performance advantages.

•  India Market - e-Bus segment supported by local govt. incentives, with our main OEM partners expected to benefit.

EMEA Update

Electrifying Revenue Growth in 2023

Production

• • Localized production of VDA modules, with expected increase in volumes

Financials & Outlook

• • 2023 Revenues of $84M, >400% increase Y/Y

• • 2024 Expected revenue expansion Y/Y

• • Narrowed losses in 2023, breakeven possible in 2024 with higher sales volumes

• • New and exciting CV customers and vehicle segments

2024 EMEA Catalysts:

•  e-Bus & LCVs - Higher volumes expected on these platforms from continuing segment expansion.

•  Specialty CVs - Working with leading European OEM for refuse trucks, demo truck at IAA 2024.

U.S. Update

Clarksville Phase 1A Delay Challenging Financing EnvironmentOutlook

• • Clarksville Phase 1A has been funded to date from balance sheet, pending securing project financing.

  • • The pace of expanding our U.S. operations depends on timing to secure funds.

• • Due to challenges in the current U.S. financing environment, we have been delayed in securing the financing needed.

• • The impact of this on project progress started to be felt towards the end of Q4. Project completion is dependent on securing financing.

  • • On close of financing, we expect to need approx. 8 months to bring Clarksville Phase 1A to SOP. Majority of this time is allocated to installation of our production equipment.

  • • Slowed CAPEX and OPEX spend in the U.S. while we work on financing solutions.

• • Not expected to generate material production volumes or U.S. revenues in 2024.

2025 U.S. Catalysts:

• • Post SOP, IRA credits and delivering qualified cells to CV and ESS customers in the U.S.

• • Lack of funding in U.S. has contributed to substantial doubt as a going concern. Ongoing financing and customer activities to address this urgently.

•  Energy Storage - This continues to be a large opportunity for us due to IRA. Strong demand from customers due to their desire for domestic content. Potential to secure multi-year high volume contracts once operational/funding secured.

•  Commercial Vehicle - U.S. OEMs increasingly electrifying their vehicle line-ups and we have numerous projects underway this year that we anticipate will create demand for Clarksville Phase 1A in 2025.

Q4 2023 FINANCIALS