weaver smith fleet presentation
TRANSCRIPT
1 Confidential, 11/7/2012
FLEET ADOPTION TRENDS
2 Confidential, 11/7/2012
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.
3 Confidential, 11/7/2012
SMITH MANUFACTURING FACILITIES
Smith US
Kansas City, Missouri
Smith Europe
Newcastle, England
Smith East Coast
Bronx, New York
4 Confidential, 11/7/2012
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
5 Confidential, 11/7/2012
APPLICATIONS
6 Confidential, 11/7/2012
FLEET PARTNERS
7 Confidential, 11/7/2012
• 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
8 Confidential, 11/7/2012
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.
9 Confidential, 11/7/2012
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
10 Confidential, 11/7/2012
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
11 Confidential, 11/7/2012
$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
12 Confidential, 11/7/2012
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
13 Confidential, 11/7/2012
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)
14 Confidential, 11/7/2012
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
)
15 Confidential, 11/7/2012
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