INNOVATIONS IN SUSTAINABILITY: ZERO-EMISSION MASS TRANSPORTATION July 25, 2016 INNOVATIONS IN SUSTAINABILITY: ZERO-EMISSION MASS TRANSPORTATION Ryan Popple, President and CEO, Proterra, Inc.

ABOUT PROTERRA Proterra is revolutionizing transit by making clean, quiet transportation for all Founded in 2004 with offices and manufacturing in CA and SC Longest range, fastest charging EV transit vehicles 200 employees $1.4bn+ sales pipeline 28 customers and 252 firm orders >73 vehicles delivered; >2,400,000 service miles >9,400,000 pounds of CO2 emissions avoided Strong Executive Team Solid Financial Backing

TRANSIT IS BECOMING INCREASINGLY MISSION CRITICAL… By 2050, 75% of the world’s population will live in cities 1M new people move to urban areas every week Americans took 10.7B trips on mass transit last year – the most in 6 decades Young people drove 23% fewer miles in 2009 than in 2001 The future is transportation as a service

…BUT FACES A MASSIVE PROBLEM High cost Inefficient Zero innovation Pollution Stock photo ID:12666293 Record carbon emissions Not scalable or flexible Unreliable Transportation gap Ultra heavy THE STATUS QUO IS FAILING

RAPIDLY EVOLVING URBAN TRANSPORTATION ENVIRONMENT LEGACY MODEL IN DECLINE MULTI-MODAL FUTURE BIKE SHARING CAR SHARING TRANSPORTATION GAP URBAN RAIL 1000+ Single Car Single Occupant CAPACITY (per hour) 1 <10 100 Transit Bus VARIABLE ADAPTIVE FIXED FLEXIBILITY TRANSIT VEHICLES ARE THE KEY CONNECTOR IN FUTURE URBAN TRANSPORTATION Source: Frost & Sullivan Research

EV TRANSIT BUS: COST OF OWNERSHIP ADVANTAGES Total Cost of Ownership   EV Diesel CNG Diesel Hybrid Vehicle $749 $490 $551 $712 Energy/Fuel $81 $392 $291 $302 Maintenance $150 $384 $432 $475 TCO $980 $1,267 $1,274 $1,489 TCO ($/mile) $2.27 $2.93 $2.95 $3.45 Maintenance Fuel Vehicle --- est. over 12 year lifetime / $ in thousands, except TCO ($/mile) --- Assumptions (+source): 36,000 annual miles driven Proterra Bus pricing based on a Catalyst XR 8-pack configuration 12-year lifetime 3.86 MPG Diesel (Source: DOT Transit bus Lifecycle analysis) 3.27 MPG CNG (Source: DOT Transit bus Lifecycle analysis) 5 MPG Hybrid (Source: DOT Transit bus Lifecycle analysis) 1.7 kWh/mile (Altoona testing) Fuel $3.5 /DGE Diesel (US EIA Projections - Annual Energy Outlook 2015, 12-year average forecast) $2.2/ GGE CNG (US EIA Projections - Annual Energy Outlook 2015, 12-year average forecast. Does not include compression charges) $3.5/DGE Hybrid (US EIA Projections - Annual Energy Outlook 2015, 12 year average forecast.) $0.11/ kWh (Source: EIA TABLE 5.3 Average retail price of electricity to ultimate customer, 10 year future forecast) *Maintenance: $0.90/ mile Diesel $1.00/mile CNG $0.55/mile Proterra $1.1/mile Hybrid (*maintenance costs are all based on customers data) Battery-electric vehicles have the lowest operational lifecycle cost: High EV energy efficiency, low electricity rates, and high annual vehicle mileage combine to create significant fuel savings 30% fewer parts dramatically reduce maintenance and operating costs Electricity prices far more stable and predictable than volatile fossil fuel prices Savings represents an 18% IRR vs. Diesel Bus

ADVANTAGES OF EV TRANSIT BUSES Durability and maintainability Durability and customer convenience in mind One step access 1 Range Smart Range – the most efficient balance between on-board energy storage and available charging opportunities 2 Fuel economy Over 4.5x more efficient and 70% cheaper than closest architecture 3 Green 180,000lbs less emissions of CO2e vs. CNG Zero emissions More mileage than hybrid 4 Noise 5

HOW BIG IS THE TREND? $50 billion of transit buses on the road in the U.S. that will be replaced by EV technology By 2025, > 50% of transit purchases will be EV, annual market size of $3.6 billion EV Transit will replace Consumer Electronics as the 2nd largest battery market by 2020 The current FTA environment provides 5+ years of stable deployment funding, hundreds of units / year to enable the industry to scale faster California planning to eliminate demand for internal combustion transit by 2028 Multiple city and transit resolutions pending that call for 100% EV Transit

TRANSIT: THE EARLY ADOPTER OF EFFICIENCY TECHNOLOGY 2014 U.S. Bus Transit Fleet (30 – 45 ft.) 2014 New Deliveries (30 – 45 ft.) Energy efficiency is a core requirement Vehicle CAPX $5 Billion / year Fuel OPEX > $2 Billion / year Maintenance OPEX > $2 Billion / year Of vehicle sectors, transit has the highest % usage of advanced-technology drivetrains New purchases favoring Hybrid CNG, Regular Diesel declining Large segment still Diesel, unlikely to switch to CNG due to uncertainty around fuel prices and growing potential for EV Multiple CNG procurements cancelled recently (Florida, Minnesota, California)

INNOVATION DRIVING MARKET PENETRATION Number of Routes 2015 67% of Routes Today 91% of Routes 2014 15% of Routes 2018 100% of Routes 2012 4% of Routes Daily Distance Traveled per Bus (Miles)

CASE STUDIES King County Metro Foothill Transit “Each one of these buses will save Metro as much as half a million dollars in fuel costs over their lifetime… and of course there’s a massive air quality benefit as well. Even the cleanest diesel buses still dump about 4.5 pounds of carbon dioxide per mile into our atmosphere and they release pollutants that contribute to asthma and lung disease. These electric buses are a vision of something better.” – Vlad Gutman, WA State Director, Climate Solutions “Demand is high for zero-emissions technology that can handle the punishing demands of heavily traveled transit routes. We've been operating these vehicles for five years and are eager to see what the next generation of tech can do” – Doran Barnes, Executive Director, Foothill Transit  Test Parameter Description / Result Timeframe October 2015 to January 2016 Total Mileage 32,545 total miles @ average of 325 miles per day 572 maximum mileage in one day Nearly 2x the miles of standard industry testing at Altoona, PA Fuel Economy Achieved an average 15 MPGe fuel economy rate Projected 18MPGe at normal operating loads Results 98% uptime demonstrated vehicle performance and reliability Out of service for only 4 out of 106-days, including 3 holidays “Impressive performance and reliability”, “Quiet and easy to operate”, “..the future” No wear and tear out of the ordinary  Test Parameter Description / Result Timeframe April 2014 through July 2015 Total Mileage 401,244 total miles across 12 buses Represents an average of 2,333 monthly mileage per bus Fuel Economy Achieved an average 17 miles/DGE1 fuel economy rate, nearly 4x higher than that of CNG buses Results 90% availability >133,000 ESS-related MBRC2, demonstrating exceptional reliability Maintenance costs totaled $0.16/mile , 11% lower than CNG buses No wear and tear out of the ordinary Board resolution adopted to go 100% EV 1 Diesel gallon equivalent 2 Miles between road calls

With a vision to deliver clean, quiet transportation for all, Proterra makes zero-emission, battery-electric buses that help fleet operators decrease fossil fuel dependency and reduce costs.