ECD Automotive Design CEO & Co-Founder Publishes Open Letter Outlining Company’s Strategy - Seite 2

Our vision is to consolidate the large and fragmented restomod industry by establishing a leading brand in the luxury auto space. There are hundreds of small, private, restomod companies across the country and the world, but many are unable to source, produce, and deliver to keep up with high demand because of their size and organization structure. We have successfully solved this challenge by creating a durable competitive advantage and a meaningful opportunity to bring efficiency and scale to this industry. We intend to leverage our public company status and our manufacturing expertise to succeed in our vision.

We believe that the real opportunity comes with consolidating the classic autos ecosystem. Broadly speaking, there is a $15 billion market spread across manufacturing, supply chain, route-to-market and finance. Similar to an LVMH business model, we envision “ECD Auto Design” to be the luxury brand at the top, and underneath it are all various business operations that service the luxury auto client. The opportunity that started with restoring a vehicle is much broader – it’s about the larger ecosystem that surrounds the luxury classic auto market.

ECD is pursuing this strategy from a position of strength. We are growing, profitable and well capitalized. Through the first nine months of 2023, our operating subsidiary Humble Imports, Inc. (“Humble”) reported, prior to the business combination that created ECD, that its revenue had increased 41% year over year, as Humble benefited from a combination of higher volume and higher prices, and its gross margins have expanded over 1,000 basis points, driven by the continued trend towards increased customization and from the introduction of the Jaguar E-Type. Humble’s net income is positive $1.1 million for the nine-month period ended September 30, 2023. ECD’s goal is to become a much larger company over the next few years, growing both organically and strategically, while expanding margins and generating cash. We intend to execute our business plan with the same unfaltering focus on capital allocation that allowed Humble to scale during its first decade of existence with minimal outside capital. Having a culture where return on invested capital is deeply rooted from the shop floor to the C-Suite is a competitive advantage and will serve as a North Star for how ECD will ultimately drive long term shareholder value.