Arrival

Hello everyone and welcome to Arrival's first quarter 2022 earnings webinar. My name is Megan and I will be your operator today. Before I hand the call over to the Arrival team, I'd like to go over just a few housekeeping notes for the program. As a reminder, this webinar is being recorded. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, please use the raised hand function located at the bottom of your screen. If you plan to ask a question, please ensure you've set your Zoom name to display your full name and firm. Thank you for your attendance today. I will now turn the call over to Mitesh Soni, Investor Relations for Arrival.

Thank you for joining us today to discuss Arrival's first quarter 2022 financial results. My name is Mitesh Soni, VP of Investor Relations, and with me today is Denis Fedlov, Arrival CEO, Avinash Raghubur, President, Mike Abelson, CEO of Automotive, and John Wozniak, 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 findings with the SEC and our first quarter 2022 earnings release issued today on the 10th of May. During the call, we also refer to certain non-IFRS financial measures. This 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 Avinash.

Thanks, Mitesh, and thanks, everyone, for joining us. The key messages you will hear today are that we have completed bus certification, passed over 70% of certification tests on van, and made significant progress on our microfactories with our skateboard, cabin, and hoop structure being assembled. We believe the micro factory unit economics remain amongst the most compelling in the industry, and we continue to expect start of production in Q3. I want to emphasize that bus certification is a key achievement for Arrival and one that the whole team is extremely proud of. This is the critical milestone towards our bus being able to carry passengers on public roads in the EU and UK. We commenced the first phase of our trial program with First Bus and are currently bringing their drivers and service technicians up to speed with our innovative new vehicle before we begin taking passengers on public route journeys. The location of this is likely to be announced this quarter, and overall we expect trials to last three to six months. VAN certification is also progressing rapidly, and we have over 70% of tests already passed. Our target is to complete VAN testing in Q2 2022, and Mike will go into more detail on the path to certification for the VAN shortly. Just as significant, we have used the same microfactory technologies previously shown to put together the chassis skateboard to assemble the cabin and hoop structure. We continue to highlight this as it represents the unique design of our vehicles and our microfactory technologies coming together. The progress this quarter gives us further confidence the microfactory method will work at significantly lower capex than traditional methods and with increased flexibility. We're excited to lead the changing of the rules of the industry this year. Our customer engagement continues to grow with non-binding LOIs and orders up to 143,000. We are currently showcasing our van to customers in the US in a number of different cities. In March, we held a van media showcase in New York to members of the press who got a chance to sit in and interact with our vehicle. And we also attended South by Southwest. There is no substitute for potential customers seeing our vehicles in person, and this continues to be a core part of our marketing strategy. Combining these showcases with certification and microfactory progress, the team has turned attention to conversion to binding orders as we start our production ramp later this year. Last quarter, I did a deep dive on the Arrival software ecosystem, which is just one of the amazing enabling technologies that we have developed in-house to bring to life our unique method of production. Today, I want to introduce another of our core enabling technologies, our in-house developed components. Arrival's vehicles are developed using Arrival's device framework, a method in which we are able to create smart devices on wheels in a short period of time, utilizing our extensive library of automotive hardware and software elements, designed and delivered using a plug and play approach. The method is based on several core principles. One, physical compatibility. All components have been designed using a grid architecture, which ensures simple cube-based geometry specifically created for robotic assembly. This unique hardware and software plug and play approach allows us to both upgrade components over the air and replace hardware when needed, driving longer life cycles and higher residual values. Two, software compatibility. Pieces of software assembled into ready-made firmware in just a few short clicks on the engineer's computer, saving thousands of hours of work for what would ordinarily be the responsibility of multiple team members. And three, electronic architecture. In this case, it's the framework that combines the elements of software and hardware into a functional vehicle. It is so adaptable that we are able to use the same architecture with only minor changes for totally different vehicles such as the van and bus. When we populate our library with new components and systems, every new function can be reused across multiple vehicle platforms, reducing the time to market for future vehicle generations. To achieve such a high level of vertical integration, we have developed and certified the core components line in-house at Arrival, and we have filed over 100 patent assets. There are very specific strategic advantages to this approach. We save on supplier costs normally found in a traditional tier one automotive supply chain. We can control modifications from end to end, speeding up improvements, and we can collect deep telemetry data to optimize vehicle operations and ultimately lowering TCO. overall we estimate approximately 70 of our core systems for the van including the drive unit hmi high voltage and low voltage elements are developed by arrival and many of these can be used across multiple vehicle platforms and with that i'll pass over to michael