This presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding projected and preliminary and unaudited ﬁnancial and performance information for the fourth quarter of 2021, expectations and timing related to manufacturing and engineering, and Xos, Inc.'s ("Xos") long-term strategy and future growth. These forward-looking statements generally are identiﬁed by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to diﬀer materially from the forward-looking statements in this presentation, including but not limited to: (i) Xos' ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities, (ii) Xos' limited operating history, (iii) cost increases and delays in production due to supply chain shortages in the components needed for the production of Xos' vehicle chassis and battery system, (iv) Xos' ability to meet production milestones and fulﬁll backlog orders, (v) changes in the industries in which Xos operates, (vi) variations in operating performance across competitors, (vii) changes in laws and regulations aﬀecting Xos' business, (viii) Xos' ability to implement its business plan or meet or exceed its ﬁnancial projections (ix) Xos' ability to retain key personnel and hire additional personnel, particularly in light of current and potential labor shortages, (x) the risk of downturns and a changing regulatory landscape in the highly competitive electric vehicle industry and (xi) the outcome of any legal proceedings that may be instituted against Xos. You should carefully consider the foregoing factors and the other risks and uncertainties described under the heading "Risk Factors" included in Xos' Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 ﬁled with the Securities and Exchange Commission (the "SEC") on November 12, 2021 and Xos' other ﬁlings with the SEC, copies of which may be obtained by visiting Xos' Investors Relations website at https://investors.xostrucks.com/ or the SEC's website at www.sec.gov. These ﬁlings identify and address other important risks and uncertainties that could cause actual events and results to diﬀer materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Xos assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Xos does not give any assurance that it will achieve its expectations.
This presentation includes guidance presented in accordance with United States generally accepted accounting principles ("GAAP") as well as on a non-GAAP basis. Our non-GAAP guidance includes Non-GAAP Operating Loss, which is deﬁned as operating loss adjusted forstock-basedcompensation.
We believe that the use ofNon-GAAP Operating Loss reﬂects an additionalmethod of evaluating Xos' ongoing operating results and trends. Our presentation ofthis measureshould not be construed as an inference that our future results will be unaﬀected by unusual ornon-recurringitems. It is important to note ourcomputation ofNon-GAAP Operating Loss may not be comparable to other similarly titled measures computed by other companies, because not all companiesmay calculateNon-GAAP Operating Loss in the same fashion. Non-GAAP information is not prepared under a comprehensive set of accounting rules, and,therefore, should only be read in conjunction with ﬁnancial information reported under GAAP when understanding our operating performance.
This guidance is provided on a non-GAAP basis and cannot be reconciled to the closest GAAP measures without unreasonable eﬀort because of the unpredictability of the amounts and timing of events aﬀecting the items we exclude from non-GAAP measures. For example, stock-based compensation is unpredictable and can ﬂuctuate signiﬁcantly each quarter.
Our mission is to decarbonize transportation with reliable electric trucks and the tools to adopt them.
Of operation. Xos trucks on the road since 2018, testing and improving our technology
growing at a 35% CAGR
between two facilities
updates, and more
Centralized control hub
ﬂeets to manage their
Energy storage and
750+ mobile service
technicians in network
U.S. Last-Mile MD & HD Truck Sales. Based on data provided by ACT Research Commercial Vehicle Sales Forecasts, and reﬂects Xos assumed average selling price applied to medium-duty and 20% of heavy-duty commercial truck sales assumed to be used for last mile applications.
facilities are operating at full production capacity and Xos is able to mitigate current supply chain constraints.