Proterra Investor Presentation Deck

Multiple Levers Targeting Further Improvement in Gross Margin Following the Supply Chain and Inflation Disruptions of 2021-22 2017 to 2020 Significant Cost Reductions GROSS PROFIT (LOSS) AS % OF REVENUE 86% in battery cost / kWh (22%) 2017 54% In unit labor & overhead costs (9%) 2018 © 2022 Proterra. All Rights Reserved. (1%) +26 gross margin points in 3 years 2019 48% in unit freight costs 4% 2020 2021-22: Supply chain disruptions Cost inflation Elevated freight costs and delays Manufacturing inefficiencies/ higher labor hours 1% 2021 Proven Ability to Reduce Costs Margin Improvement Drivers SUPPLY CHAIN/ FREIGHT Freight cost normalization Re-Sourcing / volume discounts Price increases/ surcharges MANUFACTURING EFFICIENCIES Economies of scale on higher volumes Labor hour normalization then optimization Supplier tooling investment PROTERRA Greater automation STRUCTURAL IMPROVEMENTS Battery energy density improvement Vertical integration of components & sub-assemblies Redesign for manufacturing and alternative materials Warranty cost improvement 23

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