ANALYST DAY

October 2020

1
Confidentiality, Proprietary Information, and Forward Looking Statements
• This presentation contains proprietary and confidential information of QuantumScape Corporation, and the entire content should be considered
“Confidential Information.” This presentation is made solely for informational purposes, and no representation or warranty, express or implied, is
made by QuantumScape or any of its representatives as to the information contained in these materials or disclosed during any related
presentations or discussions. Any securities shall be offered only to accredited investors in a private placement pursuant to Regulation D under the
Securities Act of 1933 or another available exemption, and this presentation is intended solely for the purposes of familiarizing such investors with
the company. This presentation is not an offer to sell nor does it seek an offer to buy securities in any jurisdiction where the offer or sale is not
permitted. To the extent the terms of any potential transaction are included in this presentation, those terms are included for discussion purposes
only.
• This presentation contains forward-looking statements and information based on management’s current expectations as of the date of this
presentation. All statements other than statements of historical fact contained in this presentation, including statements regarding
QuantumScape’s future operating results, financial position, business strategy, addressable market, anticipated benefits of its technologies,
projected factory economics, pro forma information, and plans and objectives for future operations and products are forward-looking statements.
The words “may,” “will,” “estimate,” “pro forma,” “expect,” “plan,” “believe,” “potential,” “predict,” “target,” “should,” “would,” “could,” “continue,”
“believe,” “project,” “intend” or similar terminology are intended to identify forward-looking statements, although not all forward-looking statements
contain these identifying words. QuantumScape may not actually achieve the plans, intentions, or expectations disclosed in these forward-looking
statements, and you should not place undue reliance on these forward-looking statements. Actual results may differ materially from those
contemplated in these statements due to a variety of risks and uncertainties, including risks and uncertainties related to the company’s ability to
execute on its business strategy, attract and retain customers, ramp commercial production, develop new products, enhance existing products,
compete effectively, and manage growth and costs; and the duration and global impact of COVID-19.
• QuantumScape is not under any obligation, and expressly disclaims any duty, to update any statement made in this presentation, whether as a
result of new information, new developments or otherwise, except to the extent that disclosure may be required by law. The company has not
independently verified the statistical and other industry data generated by independent parties and contained in this presentation and accordingly
cannot guarantee their accuracy or completeness.
• This presentation contains non-GAAP financial measures and key metrics relating to the company's projected future performance. A reconciliation
of these non-GAAP financial measures to the corresponding GAAP measures on a forward-looking basis is not available because the various
reconciling items are difficult to predict and subject to constant change.

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 Transaction Overview
Overview

• Founded in 2010, QuantumScape Corporation has developed the only lithium-metal solid-state battery with automotive OEM validation

• Kensington Capital Acquisition Corporation (NYSE: KCAC.U) is an automotive-related special purpose acquisition company with $230mm cash held in trust

• QuantumScape and Kensington are combining to advance and accelerate the commercialization of QuantumScape’s battery technology

Capital Structure
• QuantumScape shareholders are rolling 100% of their equity
• Transaction proceeds are being retained in the business
• Pro forma for the transaction (assuming no redemptions)
o QuantumScape will have ~$1.15bn of cash to fund commercialization plans ($230mm KCAC cash held in trust, $500mm in PIPE proceeds, and $471mm
QuantumScape cash¹)
o No additional equity capital need expected prior to production launch

Valuation
• EV of $3.3bn which is ~1.0x of 2027E sales

• Represents attractive entry multiples relative to peer group metrics

Kensington has identified QuantumScape as a unique and compelling investment opportunity

that is developing leading solid-state battery technology to accelerate the shift to electric vehicles

(1) QuantumScape cash and cash equivalents as of June 30, 2020 pro forma for $388mm Series F financing; $188mm anticipated to fund concurrent with PIPE; $100mm of Volkswagen's investment anticipated to fund on
December 1, 2020 and $100mm is subject to technical milestones, net of fees.
3
 QuantumScape: Redefining Batteries

QuantumScape has
Once in a Solid-state batteries the only lithium-metal
century shift to are the key to solid-state battery
electrified vehicles making this shift with automotive
OEM validation

4
 Visionary Management Team
Select Management Team Members

JAGDEEP SINGH PROF. FRITZ PRINZ DR. TIM HOLME DR. MOHIT SINGH
Founder / CEO Founder & Chief Scientific Founder & Chief Chief Development
(Chairman) Advisor (Board Member) Technology Officer Officer

● Founder / CEO Infinera (NASDAQ: ● Chair, Mechanical Engineering, ● Research Associate, Stanford ● CTO and co-founder, SEEO
INFN); Lightera, now Ciena Stanford ● Ph.D. & MS Mechanical Engineering, ● Solid-state energy storage world expert
(NASDAQ: CIEN); OnFiber, now ● Professor, Materials Science, Stanford Stanford ● Ph.D. Chem & Biomol Eng, Tulane
Qwest; AirSoft ● PhD, Physics, University of Vienna ● BS Physics, Stanford ● Postdoc, Polymers, Berkeley
● MS Computer Science, Stanford

KEVIN HETTRICH HOWARD LUKENS JAY UNDERWOOD MIKE MCCARTHY

Chief Financial Officer Chief Sales Officer Vice President, Sales Chief Legal Officer &
Head of Corp. Dev.

● Bain Capital ● VP WW Sales, Infinera (NASDAQ: ● Sales Director, Northern Europe, ● CLO & CAO, Infinera (NASDAQ:
● McKinsey & Company INFN) Infinera INFN)
● US Department of Energy ● VP Strategic Sales, Ciena, (NASDAQ: ● Product Planning, Infinera ● SVP & General Counsel, Ciena
● MBA & MS, Stanford CIEN) ● MS Technology (NASDAQ: CIEN)
● VP WW Sales, Lightera ● J.D. Vanderbilt

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 KENSINGTON CAPITAL ACQUISITION CORP

JOHN DOERR JB STRAUBEL VINOD

KHOSLA
• Management and board with
extensive public company
experience and operating
capabilities in the automotive and
automotive-related sector
• Relevant automotive experience
to optimize program launches and
capital deployment while

Backed by facilitating commercial

relationships

Leading
DIPENDER JÜRGEN BRAD BUSS • Track record of creating significant
SALUJA LEOHOLD shareholder value in automotive
businesses

Investors
EXISTING INVESTORS
SELECT BOARD
MEMBERS AND
INVESTORS
FRANK $802 Million of Bill Gates
BLOME Total Funding
Commitments¹

(1) Pro forma for $388mm Series F financing; $188mm anticipated to fund concurrent with PIPE; $100mm of Volkswagen's investment anticipated to fund on
December 1, 2020 and $100mm is subject to technical milestones. Note: Volkswagen will receive an additional board seat when the first tranche of its Series F 6
investment closes. Kensington board member will be added after the transaction closes.
 $802mm of Committed Capital¹
Over $300mm spent on development to date

10 Years of R&D Investment

Founded in 2010

By the 200+ Employees

Numbers World Class Next-gen Battery Development Team

200+ Patents²
Materials, Use and Process

Extensive Trade Secrets

Processes and Intellectual Property

1) Pro forma for $388mm Series F financing; $188mm anticipated to fund concurrent with PIPE; $100mm of Volkswagen's
investment anticipated to fund on December 1, 2020 and $100mm is subject to technical milestones.
2) Includes patents and patent applications. 7
 Lithium-Metal: The Next Generation of Battery

Lithium-Metal

Lithium-Ion

Nickel Metal
Hydride

Lead Acid

1970s 1980s 1990s-Today QuantumScape

Source: Cano et al (2018). Nature Energy, 3(4), 279–289; Ovshinsky Science 260 (1993) 176; Ding et al, Electrochem. Energ. Rev. 2, 1–28 (2019); Management analysis 8
Massive Untapped Demand If Batteries Meet Mass Market Requirements
90M+ vehicles produced annually represents in excess of $450B of potential battery sales annually¹

Customer Requirements For Mass

Market Adoption

Energy / Capacity
> 300 mile range

Fast Charging
Charge in < 15 minutes

Cost
< $30K, 300 mile EVs

Battery Lifetime
> 12 years, > 150,000
miles
Safety
Solid, non-oxidizable
2% PHEV + BEV Penetration² separator
Source: International Organization of Motor Vehicle Manufacturers (OICA); IEA
(1) Based on 2019 global vehicle production; includes passenger vehicles, heavy trucks, buses and coaches (OICA). Battery opportunity assumes $100 / KWh and 50KWh+ battery pack. 9
(2) % of Global Car Stock in 2019 (IEA).
Conventional Lithium-Ion Cell Energy Density Has Hit a Ceiling
Need for Disruptive Innovation to Dramatically Advance Energy Density

Density Requirement: Mass: 400-500 Wh/kg (Volume: 1000 Wh/L)

Gap

NCA NCA
18650¹ 21700¹

Source: Placke et al. J. Solid State Electrochem., 21(7), 1939–1964; Quinn et al, Journal of The Electrochemical Society, 165 (14) A3284-A3291 (2018); Management analysis 10
(1) Highest energy density in mass market EVs today.
Conventional Lithium-Ion Batteries Have Reached Their Physical Limit
Performance Limited by Graphite (Carbon) / Silicon Anode Chemistry

Anode current collector

Graphite / Silicon Anode

Liquid electrolyte

Porous separator

Cathode active material

Liquid electrolyte

Cathode current collector

Wound cylindrical
cell (e.g. 21700)

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 Lithium-Metal Anode is Required for High Energy Density
The Industry Needs a Fundamental Redesign of Battery Technology
600
Lithium-Metal
Lithium-Metal Anode Required Anode
Theoretical Cell Energy Density (Wh/kg)

500
Lithium-Metal
Batteries
• Energy density of
400 conventional anode limited

Graphite / Silicon
300 Conventional
Anode
Lithium-Ion Batteries • Lithium-metal anode
Graphite Anode necessary to achieve high
200 energy density

100
• Lithium-metal cannot be
used without a solid-state
0 separator

NiF2
CoF2
LiFeBO3

NMC811
LiNi0.5Mn1.5O4

NCA
LiMnPO4

Li2MnSiO4(2Li)
HE-NMC
LiVPO4F

FeF2

FeF3
Cathode Material

Source: Andre et al, J Mater Chem A, (2015) 6709 12

 QuantumScape Has The Solution
Rethinking the Battery

Conventional Liquid Battery QuantumScape Solid-State Battery

Anode Current
Collector

Graphite / Silicon
Anode Discharged Charged
(as manufactured) Anode Current Collector
Liquid Electrolyte
3
1 Lithium-Metal Lithium Metal Anode

2 Solid-State Separator

Porous Separator
Cathode Active Cathode Active
Catholyte
Liquid Electrolyte

Cathode Current
Cathode Current Collector
Collector
1 2 3
Anode-less Manufacturing Solid-State Separator Lithium-Metal Anode
Anode-less cell design with Ceramic electrolyte with high Only stable implementation of
lithium plated during charge dendritic resistance a lithium-metal anode
cycles
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The Only Battery That Enables Mass Market Transformation
QuantumScape’s Value Proposition

Energy / Capacity: Significantly increases volumetric and gravimetric energy density

• Eliminates graphite/silicon anode host material ü

Fast Charging: Enables <15 minute fast charge (0 à 80%)

• Eliminates lithium diffusion bottleneck in anode host material ü

Cost: Lower cost

• Eliminates anode host material and manufacturing costs ü

Battery Lifetime: Increased life

• No capacity loss at anode interface ü

Intrinsically Safer: Eliminates organic separator

• Solid-state separator is nonflammable and noncombustible ü

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 QuantumScape Technology is Lower Cost

• Elimination of anode
17%
material • Anode material cost
• Anode manufacturing
• Reduction in cost
• Formation & aging
manufacturing costs related manufacturing
costs
– No anode
manufacturing
– Formation / aging
substantially reduced
• Excludes system level
benefits from lower
weight / volume
• QuantumScape benefits
from industry wide cost
declines on standard
components (e.g.
Cathode)

Source: P3 Consulting and Management analysis 15

 Significant Technology Advantage
Protected by ~200 Patents¹ and ~100 Trade Secrets

CERAMIC SOLID-STATE SEPARATOR SINGLE LAYER POUCH CELL

(1) Includes patents and patent applications. 16

 Revolutionary Technology Removes the Tradeoffs

Luxury Performance Vehicle: Constant Mass Comparison Mass Market Sedan: Constant Volume Comparison

Today’s Today’s
Lithium-Ion % Improvement Lithium-Ion % Improvement

System 350 L 350 L 81% System 160 L 160 L 88%

Volume (260 Wh/L) (470 Wh/L) (Energy Density) Volume (220 Wh/L) (414 Wh/L) (Energy Density)

System System
90 kWh 164 kWh 82% 35 kWh 66 kWh 88%
Energy Energy

400 km 730 km 200 km 375 km

Range 82% Range 88%
(250 Miles) (450 Miles) (123 Miles) (233 Miles)

22.5-min Fast Charge 15-min Fast Charge 60-min Fast Charge 15-min Fast Charge
Charge 33%+ Charge 75%+
(5% à 80%) (0% à 80%) (10% à 80%) (0% à 80%)

Power 420kW 650kW 55% Power 100kW 150kW 50%

Solid, Non-oxidizable Solid, Non-oxidizable

Safety Organic Electrolyte Safety Organic Electrolyte
Electrolyte Electrolyte

Source: Automotive OEM disclosure and commentary; Management estimates and analysis. Figures in table rounded. 17
“Volkswagen has already tested
QuantumScape early-stage solid-state
battery sample cells in Germany running
at automotive rates of power.”
–Volkswagen Group Press Release

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 Volkswagen Committed to QuantumScape Technology

Volkswagen Group Overview “Volkswagen has become the largest shareholder of QuantumScape. Our US$100
million investment is a key building block in the Group’s battery strategy. One of the
• ~11 million vehicles produced in FY2019 long-term targets is to establish a production line for solid-state batteries by 2025.”

- Herbert Diess, Volkswagen AG CEO

• ~$38 billion investment in electric mobility by 2024

• Plans to launch ~70 electric vehicle models and

produce 22 million electric vehicles by 2029 “The Volkswagen Group has established a joint venture with QuantumScape, a
manufacturer of solid-state batteries. The shared goal of the companies is large-scale
production...”
Brands
Select

- Oliver Blume, Porsche CEO

“In June 2020, the Volkswagen Group also announced plans to increase its
Volkswagen Partners with QuantumScape shareholding in the US battery specialist QuantumScape. The objective is to promote
the joint development of solid-state battery technology. In the future, solid-state
1n Corporate funding commitment of $300+ million batteries should result in a significantly increased range and faster charge times. They
are regarded as the most promising approach to electric mobility for generations to
2n Strong relationship since 2012, including development come. Volkswagen has already been collaborating with QuantumScape since 2012
collaboration, testing of prototype cells and and is the largest automotive shareholder thus far. Both founded a joint venture in
representation on the QS board of directors 2018, the aim of which is to prepare the mass production of solid-state batteries for
Volkswagen.”
3n Founded a JV to prepare for the mass production of - Volkswagen Group Half-Yearly Financial Report, July 2020
solid-state batteries for Volkswagen

Source: Volkswagen AG Half-Yearly Financial Report published July-2020, 2019 Annual Report published Mar-2020, press releases published Mar-2019, Nov-2019 and Jun-2020, Half-year press conference published Aug-2018;
Porsche Annual Press Conference published Mar-2019). Page 18 based on Volkswagen AG press release published Sep-2018. 19
QuantumScape is a Step-Function Ahead of Conventional Cells
Energy-optimized Cell Designs

s
mi strie NCA or Ni-rich
Che
al iz e d NMC + Silicon /
m e rci Carbon Anode
C om
NCA3
NMC2

LFP1

Source: Argonne National Laboratory; Management estimates

1 Lithium, iron, and phosphate 2 Nickel, manganese, and cobalt 3 Nickel, cobalt, and aluminum
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 Established Manufacturing Processes and Supply Chains

Unique processes use equipment that is Materials have robust and well-established
already used at scale in battery or ceramics supply chains served by diversified chemical,
industries mining and materials firms

Equipment designed and manufactured by world’s leading vendors Separator materials are widely used in other industries

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 QuantumScape Company Timeline and Key Milestones
In 10 years, QuantumScape Executed on Key Technological and Operational Breakthroughs

2012 2014 2016 2018 2020

Volkswagen (VW) Establishes 80K ft2 facility World-first demonstration of JV forms with VW, confirms Series E VW announces Series F investment
partnership begins with state-of-the-art solid-state separator investment
analytical tools and capability to meet automotive Commercial size SLP1 demonstration
dryrooms in San Jose, requirements Develops Li-free anode design
California World-first validation of full cell cycling
reliably with lithium-metal at automotive
rates

2010/2011 2013 2015 2017 2019

QuantumScape founded and Separator materials QuantumScape selects the Develops scalable separator World-first validation of Li-free full cell
spun out of Stanford by exploration in rapid 12 hour separator material production process cycling reliably with lithium-metal at
Jagdeep Singh, Professor Fritz design/build/test cycle automotive rates
Prinz and Dr. Tim Holme

Patents 35 54 95 139 200+

No. of
28 131 108 148 200+
Employees

Note: Patent and Employee metrics as of December 31 2012, 2014, 2016, 2018, and present. Patents metric includes granted and pending applications.
1 Single layer pouch 22
Validated Technology: Next Steps Scaling The Product

High-Volume
Increasing
Multi-Layer Cell Battery
Separator Yield
Manufacturing

23
 QuantumScape: Driving Environmental Sustainability

Key ESG Themes

Climate Change Reducing global CO2 emissions

Responsible Production Designed around abundant resources

Energy Efficiency Enables clean energy sources

24
 QuantumScape Unlocks Massive Global Opportunity
90M+ vehicles produced annually represents in excess of $450B of potential battery sales annually¹

Source: International Organization of Motor Vehicle Manufacturers (OICA); IEA 25

(1) Based on 2019 global vehicle production; includes passenger vehicles, heavy trucks, buses and coaches (OICA). Battery opportunity assumes $100 / KWh and 50KWh+ battery pack
 Manufacturing Scale-Up Timeline
2021 2022 2023 2024 2025 2026

Development / Validation
Product

OEM Sample Testing

Planning /
Engineering
1GWh Factory

Site Selection / Design / Construction

Equipment
Install

Production Validation & SOP

Planning / Engineering
20GWh Expansion

Site Selection / Design / Construction

Equipment
Install

Production Validation & SOP

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 QuantumScape Factory Economics (QS-1, 20GWh)
($ in Billions)

$ 1.6
$ 1.5 $ 1.5 $ 1.4 $ 1.4 $ 1.4 $ 1.3
$ 1.3 $ 1.3 n Capex + Start-up Costs¹: $1.6B

SOP
— ~70% Cell Factory

— ~30% Separator Factory

$ 0.4

n Equity Need²: ~$500M

$(0.1) $(0.1)
$(0.0) $(0.2) $(0.2)

$(0.2) $(0.2)

$(0.6)
$(0.6)

-4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9
Period

Revenue Capex + Startup costs (post debt financing) Debt financing

Note: Assumes 5% annual price and cost declines. Chart reflects 100% of factory financials.
(1) Includes costs for planning, FAT / SAT, and start-up; excludes maintenance capex and interest expense.
27
(2) Assumes debt financing for the remainder; debt financing net of amortization.
 Summary Financials
$ in millions 2022E 2023E 2024E 2025E 2026E 2027E 2028E

Manufacturing capacity Represents ~910k vehicles

Total Production Capacity (GWh) 0 0 0.25 0.75 6 46 91 annually (assumes 100KWh
pack)
QS-1 Pilot (1 GWh) 0 0 0.25 0.75 1 1 1

QS-1 Expansion (20 GWh) 0 0 0 0 5 15 20 Commentary

QS-2 0 0 0 0 0 30 70

• Fully funded business to

start of production
Income Statement

Revenue - - $ 14 $ 39 $ 275 $ 3,210 $ 6,439 • High margins reflect

QuantumScape’s unique
% Growth NM 181% 614% 1066% 101% technology and structural
cost advantage due to
anode-less manufacturing
Gross margin - - $ 0 $ 2 $ 73 $ 1,006 $ 1,914
• Assumes offtake
% Margin 1% 5% 26% 31% 30% agreements with IG
partners supporting
meaningful debt financing
EBITDA $ (102) $ (114) $ (130) $ (120) $ (59) $ 808 $ 1,622
• Assume no capacity
% Margin NM NM NM 25% 25%
growth past 2028

• Assumes 50% ownership

FCF (after project financing) $ (137) $ (169) $ (222) $ (691) $ (1,346) $ (533) $ 563 of cell factory and 100%
ownership of separator
factory for QS-1; 100%
No Capacity After QS-1 Expansion (20GWh):
ownership for QS-2
FCF (after project financing) $ (137) $ (169) $ (222) $ (312) $ (289) $ (17) $ 69

2H2020E - 2021E FCF: $(184)mm

Note: Non-GAAP financial metrics. Figures represent 50% of revenue and 50% of costs for QS-1 cell factory; Revenue includes margin for sale of separator to QS-1 cell factory. Adjusted EBITDA is defined as earnings
before interest expense, interest income and other income, taxes, depreciation, amortization, and stock-based compensation. FCF is defined as cash provided by operating activities less purchases of property and 28
equipment net of asset / project financing.
 Transaction Overview
(in millions, except per share data)
Sources Pro Forma Valuation

KCAC Shares $3,688 Share Price $10.00

KCAC Cash Held in Trust 230 PF Shares Outstanding 447.6
QuantumScape Cash¹ 471 Equity Value $4,476
PIPE Investment 500 (+) Debt 0
Total Sources $4,889 (-) Pro Forma Cash¹ (1,155)
Enterprise Value $3,321

Uses Illustrative Pro Forma Ownership2

Pro Forma Cash¹ $1,155 KCAC Public

Shares, 23.0m, 5.1% KCAC Sponsor Shares,
Equity Consideration to QS Existing Investors 3,688 5.8m, 1.3%
PIPE Investor
Estimated Transaction Expenses 46 Shares, 50.0m,
11.2%
Total Uses $4,889
Existing QS
Rollover Equity,
368.8m, 82.4%

Note: Assumes no redemptions from Kensington’s existing public shareholders. Assumes PIPE shares are issued at a price of $10.00. Excludes the impact of Kensington’s warrants (public or private)
(1) QuantumScape cash and cash equivalents as of June 30, 2020 pro forma for $388mm Series F financing; $188mm anticipated to fund concurrent with PIPE; $100mm of Volkswagen's investment anticipated to fund on December
1, 2020 and $100mm is subject to technical milestones, net of fees.
(2) Chart reflects economic ownership. Pro forma company will retain QuantumScape’s dual-class share structure with class A shares (1 vote per share) and Class B shares (10 votes per share), which are owned by founders, early
29
investors, and employees. All other equity issued through the merger, as well as the PIPE, and Series F transactions will be Class A shares. Class B shares will represent more than 85% of the pro forma voting interest.
 Public Peers Benchmarking
Operational Benchmarking Valuation Benchmarking
Revenue Growth (%) Enterprise Value ($bn)
Median: 37% $565.1bn
101% $68.7bn
67%
37% 34% $23.5bn
$3.3bn

QS Nio Tesla CATL QuantumSpace Tesla CATL Nio

'27E-'28E '20E-'22E '20E-'22E '20E-'22E
Gross Margin (%) EV / Revenue (x)
Median: 22% Median: 6.9x
31% 30% 13.4x
27%
22% 6.9x
13% 6.5x
1.0x 0.5x

QS QS CATL Tesla Nio QS QS Tesla CATL Nio

'27E '28E '21E '21E '21E '27E '28E '21E '21E '21E
EBITDA Margin (%) EV / EBITDA (x)
Median: 18% Median: 58.3x
25% 25% 82.7x
20% 16%
33.9x
nm 4.1x 2.0x nm

QS QS CATL Tesla Nio QS QS Tesla CATL Nio

'27E '28E '21E '21E '21E '27E '28E '21E '21E '21E
Source: Company information and FactSet as of August 31, 2020
Note: Metrics reflect non-GAAP financial measures
30
 QuantumScape Has Significant Upside Potential
Future Discounted Post- Money
Summary of Approach Enterprise Value Enterprise Value Enterprise Value
($mm)
• Applies a range of 5.0x – 9.0x
EV / Revenue multiple to
QuantumScape’s 2028E revenue $57,950
to arrive at an Implied Future
Enterprise Value range. Future
Enterprise Value range is
discounted 7 years to arrive at an $45,072
Implied Discounted Enterprise
Value range

• The applied range of multiples is $32,195

centered around +/- 2x forward
EV / Revenue median of
QuantumScape’s peer group $16,173
$12,579

$8,985 $3,321

5.0x - 9.0x Discounted 7 years Post-Money

Post- MoneyEnterprise
2028E Revenue back at 20% Enterprise Value

Note: QuantumScape anticipates it will require additional debt, equity, or partner funding / prepayments through 2028; Company financials reflect non-GAAP financial measures 31
 Overview of Kensington Capital Acquisition Corp.

Justin Mirro Kensington Overview

Chairman & Chief Executive Officer
• 25 years of operating, M&A and financing experience in the
automotive and automotive-related sector
• President of Kensington Capital Partners
• NYSE-listed (KCAC.U) Special Purpose Acquisition Company (“SPAC”) with $230
million in trust for the purpose of combining with an automotive technology
company
Bob Remenar
• Management and board with extensive public company experience and operating
Vice Chairman & President capabilities in the automotive and automotive-related sector
• 35 years of operational, manufacturing and management • Relevant automotive experience to optimize program launches and capital
experience within the automotive and automotive-related deployment while facilitating commercial relationships
sector • Track record of creating significant shareholder value in automotive businesses
• Former CEO of Nexteer Automotive and Chassix
Board Members
Simon Boag
Tom LaSorda Don Runkle
Chief Technology Officer Former Chief Executive Former Chairman and CEO of
• 30 years of leadership, manufacturing, operational and Officer of Chrysler Multiple Automotive Businesses
technological experience with automotive supply chains
• Former President of Mopar and EVP of Chrysler
Anders Pettersson Matt Simoncini
Purchasing
Former Chief Executive Former Chief Executive
Officer of Thule Group Officer of Lear
Dan Huber Corporation
Chief Financial Officer
• 20 years of experience in investment banking, Mitch Quain
Investor and Board Member
consulting, business development and operational of Multiple Public Companies
management
• Co-Founder of The Motor Weekly newsletter 32
 QuantumScape Fulfills Kensington’s Investment Objectives

Investment Criteria
North America-based automotive business
valued at greater than $1.0 billion ü
Leverages high-growth mega-trends
of emerging technology proliferation ü
Validated technical, commercial and financial capabilities
based upon global automotive standards ü
Valuation supported by fundamental analysis of
profitability and comparable companies ü
World-class management team and board
with expertise in leading and running public companies ü
Business enhanced by Kensington’s automotive experience
to de-risk and accelerate commercial success ü
33
Appendix

34
 Consolidated Balance Sheet
(In Thousands, Except Share and per Share Amounts)
Year Ended December 31
2019 2018
Assets
Current Assets
Cash and Cash Equivalents¹ $22,822 $31,052
Marketable Securities 107,099 148,161
Prepaid Expenses and Other Current Assets 1,255 706
Total Current Assets $131,176 $179,919
Property and Equipment, Net 25,492 28,702
Right-of-use Lease Asset 12,942 –
Other Assets 2,774 2,593
Total Assets $172,384 $211,214
Liabilities, redeemable convertible preferred stock and stockholders'deficit
Current Liabilities
Accounts Payable $2,851 $757
Accrued Liabilities 1,307 1,404
Accrued Compensation 1,112 802
Lease Financing Obligation, Short-Term 0 669
Operating Lease Liability, Short-Term 1,080 0
Deferred Cost, Short-Term 873 1,455
Total Current Liabilities $7,223 $5,087
Deferred Rent Expense, Long-Term 0 316
Lease Financing Obligation, Long-Term 0 10,361
Operating Lease Liability, Long-Term 12,463 0
Convertible Preferred Stock Warrant Liabilities 1,860 1,766
Deferred Cost, Long-Term and Other Liabilities 436 764
Total Liabilities $21,982 $18,294

Stockholders’ Equity
Redeemable Convertible Preferred Stock2 $405,575 $405,575
Common Stock3 1 1
Additional Paid-in Capital $43,077 $35,957
Treasury Stock Fair Market Value at Repurchase; 438,191 Shares at Dec. 31, 2019 and 2018 (4,189) (4,189)
Accumulated Other Comprehensive Income (Loss) 90 (31)
Accumulated Deficit (295,862) (246,083)
Total Quantumscape Stockholders’ Deficit $(256,883) $(214,345)
Non-Controlling Interest 1,710 1,690
Total Stockholders’ Deficit $(255,173) $(212,655)
Total Liabilities, Redeemable Convertible Preferred Stock and Stockholders' Deficit $172,384 $211,214

•Note: Statements above are unaudited. Financials consistent with PCAOB audit standard.
(1) $3,409 and $3,368 as of 31-Dec-2019 and 2018, respectively, for joint venture.
(2) Par value of $0.0001 per Share; 49,073,189 and 49,073,189 shares authorized as of 31-Dec-2019 and 2018, respectively, 48,390,851 and 48,390,851 shares issued and outstanding with aggregate liquidation
preference of $414,335 and $414,335 as of 31-Dec-2019 and 2018, respectively.
35
(3) $0.0001 par value; 128,000,000 shares authorized (81,000,000 class A and 47,000,000 class B); 11,229,241 and 11,075,476 class A and class B shares issued and outstanding at 31-Dec-2019 and 2018, respectively.
 Consolidated Statements of Operations and Comprehensive Loss
(In Thousands, Except Share and per Share Amounts)
Year Ended December 31
2019 2018

Operating Expenses

Research and Development $45,944 $35,634

General and Administrative 9,874 9,768

Amortization of Intangible Assets – 51

Total Operating Expenses $55,818 $45,453

Loss from Operations $(55,818) $(45,453)

Other Income (Expense)

Interest Expense $(94) $(1,520)

Interest Income 3,608 2,127

Other Income 1,041 702

Total Other Income $4,555 $1,309

Net Loss $(51,263) $(44,144)

Net Income Attributable to Non-controlling Interest 20 5

Net Loss Attributable to Common Shareholders $(51,283) $(44,149)

Net Loss $(51,263) $(44,144)

1 121 89
Other Comprehensive Income (Loss):

Total Comprehensive Loss $(51,142) $(44,055)

Less: Comprehensive income attributable to Non-controlling Interest 20 5

Comprehensive Loss Attributable to Common Shareholders $(51,162) $(44,060)

Basic and Diluted Net Loss Per Share $(4.58) $(3.97)

Basic and Diluted Weighted-Average Common Shares Outstanding 11,194,183 11,108,638

•Note: Statements above are unaudited. Financials consistent with PCAOB audit standard. 36
(1) Unrealized Gain on Marketable Securities.
 Consolidated Statements of Cash Flows
(In Thousands)
Year Ended December 31

2019 2018
Operating Activities
Net Loss $(51,263) $(44,144)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities
Depreciation and Amortization $5,577 $5,681
Amortization of Right-Of-Uses-Assets 1,159 –
Gain on Property and Equipment Disposal (90) –
Amortization of Discount on Marketable Securities (1,964) (1,334)
Amortization of Deferred Cost (873) (1,455)
Stock-Based Compensation Expense 6,811 5,882
Changes in Fair Value of Convertible Preferred Stock Warrants 94 630
Changes in Operating Assets and Liabilities
Prepaid Expenses and Other Assets $(550) $(174)
Accounts Payable, Accrued Liabilities, and Accrued Compensation 319 (808)
Operating Lease Liability (951) –
Net Cash Used in Operating Activities $(41,731) $(35,722)
Investing Activities
Purchases of Property and Equipment $(9,846) $(7,402)
Maturities of Investments 239,500 122,750
Purchases of Investments (196,353) (190,042)
Net Cash Provided by (Used in) Investing Activities $33,301 $(74,694)
Financing Activities
Proceeds from Issuance of Common Stock, Net of Issuance Costs $394 $1,084
Proceeds from Issuance of Preferred Stock, Net of Issuance Costs – 122,755
Capital Contribution from Non-Controlling Interest in Joint Venture – 1,685
Repurchase of Common Stock – (4,189)
Repayment of Lease Financing Obligation – (578)
Net Cash (Used in) Provided by Financing Activities $394 $120,757
Net (Decrease) / Increase in Cash, Cash Equivalents and Restricted Cash (8,036) 10,341
Cash, Cash Equivalents and Restricted Cash at Beginning of Year at Beginning of Period 33,632 23,291
Cash, Cash Equivalents and Restricted Cash at Beginning of Year at End of Period $25,596 $33,632

Supplemental Disclosures of Cash Flow Information

Cash Paid for Interest $985 $878

Non-Cash Investing and Financing Activities

Purchase of Property and Equipment, Accrued but not Paid $2,547 $517

37
•Note: Statements above are unaudited. Financials consistent with PCAOB audit standard.