Arrival

Good morning, and thank you all for joining us today to discuss Arrival's second quarter 2021 financial results. My name is Mitesh Soni, VP of Investor Relations, and with me today is Dennis Verlof, Arrival CEO, Avinash Raghubur, President, Mike Abelson, CEO of Automotive, and Tim Holbrow, Interim CFO. Before we begin, I'd like to remind everyone that certain statements made on this call today are forward-looking statements. These statements are subject to various risks and uncertainties and reflect our current expectations based on our beliefs, assumptions, and the information currently available to us. Although we believe these expectations are reasonable, we undertake no obligation to revise any statements to reflect changes that occur after this call. Descriptions of these factors and other risks that could cause actual results to differ materially from these forward-looking statements are discussed in more detail in our filings with the SEC. During the call, we also refer to certain non-IFRS financial measures. These should be considered in addition to and not as a substitute for or in isolation from our IFRS results. For further information, please refer to our investor relations website at investors.arrival.com. With that in mind, I'll turn it over to Dennis.

Thank you, Mitesh, and thank everyone for joining our webcast this morning. The main message today, Q2, was great for us. We increased number of vehicles inside LAIs by four times during first half of this year. We received two more orders, and we have very strong interest for new microfactories all around the world. Our main activities, like sales, microfactories, procurement, are all on track. We have very strong evidence that our new method works and our customers require more variants of our products. Based on that, we have expanded our R&D and accelerated CapEx for our microfactories. Just an example, one of the biggest challenges we faced was to develop new materials in the production process of body parts. Our first production line of body parts started to work and has already produced more than 500 composite panels at Bisto Factory. I would like to use this opportunity to remind that Rival is a very unique company. We have invented a new method to design and produce vehicles using microfactories. And this is something which has never been done before. As President Biden recently tweeted, the future is electric. And this is something we have believed and been developing for since 2015. We are on a mission to have clean air by replacing all vehicles to electric produced by local microfactories. We are focused on commercial vehicles now, but our method does not limit us. only to commercial vehicles. So we have managed to create best-in-class electric vehicles. We call them devices on wheels. They will have competitive pricing with up to 50% low cost of operations. This radical new method to design and produce electric vehicles using microfactories allows us to avoid stamping, welding, and penships. Our microfactories are rapidly scalable and low complex. We are vertically integrated and have developed in-house tech with a very strong IP portfolio. We witnessed strong demand for our products and we continue to grow our team. Now we have over 2,200 full-time employees. All this will make us high margin business enabled by hardware, software, and next generation robotics, making us one of the largest and fastest growing EV companies globally. This was a brief overview of Q2 results. And now let me hand over to Avinash, President of Arrival.

Thanks, Dennis. In Q2, we've been pushing the accelerator as we get closer to our product launch dates. We continue to execute on our business plan and we are especially pleased with the progress we have made on sales. Since the close of the quarter, we've announced two new orders which demonstrate the momentum of our sales pipeline. The first order from LeasePlan is an initial order for 3,000 vans. LeasePlan is a leading car as a service company and will be the preferred leasing partner for our electric vans. The sales agreement is expected to be completed in Q3 of 2021. The second order is from California's Anaheim Transportation Network, a customer who recently secured a $2 million grant to replace five of their buses with a rival zero emission battery electric buses. This is our first bus order and marks a significant step forward for this vehicle program to add to the two orders that we already have for the van. We have a very strong sales pipeline with LOIs increasing approximately four times since the start of the year to 49,000. We have seen a dramatic increase in potential orders from emerging markets, including India, and we are pleased to announce we'll be opening an R&D center there to meet this demand. This shows the global interest in Arrival's local production method and best-in-class products at competitive prices. A big driver of this strong demand is the continued push in industry and public policy to transition to EVs. I want to highlight the historic US bipartisan infrastructure funding bill that earmarks tens of billions of dollars over the next five years for electrification. We're seeing this trend being replicated in all of our target markets. At Arrival, we are building vehicles and the ecosystem around them. Our strategy is to combine our in-house expertise with high quality partnerships that provide a comprehensive mobility solution. Since Q1, we have announced several partnerships with leaders in their respective fields, including Microsoft, with whom we are collaborating on a powerful open data platform, as well as Hitachi, STM Microelectronics, and Umbrella. Arrival's automated driving system also completed a live demonstration of the Arrival van, without a human driver inside, performing operations at a fully functioning parcel depot, This shows our progress towards our vehicles being depot autonomous ready in the future. Lastly, I want to discuss not only the strategic and financial impacts of our business, but also our community impact. This is a key pillar of our strategy that will uplift the communities in which we operate. This slide shows an independent study of the impact we expect to have in Rockhill alone. We have over 500 direct and indirect jobs created and $159 million added annually to the local economy. We've seen tremendous government interest in our micro factories. And as we scale micro factories across the globe, this becomes a unique advantage of Arrival's ability to positively impact local communities and attract incentives. Our CEO of Arrival Automotive, Mike Abelson, will now give us an update on our program development and microfactory status. Mike.