Arrival

Hello everyone and welcome to Arrival's second 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 raise 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, and I will now turn the call over to Arrival.

Thank you all for joining us today to discuss Arrival's second quarter 2022 financial results. Today we have Denis Sverdlov, Arrival CEO, Avinash Raghubar, 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 filings with the SEC and our second quarter 2022 earnings release issued today on the 11th of August. 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.rival.com. With that in mind, I'll turn it over to Dennis.

Thank you, everyone, for joining us today. In Q2, we hit a major milestone when we achieved European certification. on our bus and van. Now that we have certified bus vehicles, commission of the Bistro Microfactory is on the way to prepare for the expected start of van production in Q3, with the expected start of van deliveries in Q4 to UPS, our first customer. We have also seen in the past quarter the world continue to face a challenging economic environment with both new players and traditional OEMs facing supply chain issues, an ongoing pandemic, geopolitical tensions and rising costs. We must address these challenges now as we approach the start of production and have made the strategic decision to focus on creating the business in a downscaled manner through at least 2023, without the need to raise additional capital other than through the ATM we announced today, while preparing the company for growth when capital markets stabilize. Our proposed plans include the reliance of the organization that we believe would allow us to deliver business priorities through at least 2023, utilizing almost $530 million cash on hand as of the end of the second quarter, plus the expected proceeds from the ATM. This proposal includes a targeted 30% reduction in spend across the company. The decision has been taken to focus our resources initially on the WAN platform, which makes up the majority of our MAU and other volumes, including our contracts with UPS and LeasePlan. With this in mind, we are deferring further investments in the BUS program while we secure additional capital, We have also made the decision to move the start of production in Charlotte in the US to 2023. Our business micro factory in the UK is the first ever micro factory and we will use production learnings we can apply to Charlotte. In addition, we will defer cash spend by keeping one part on soft tooling and choose to strategically spread the investment in production tooling with our suppliers. Today, we are also establishing a 300 million at the market equity offering platform, which together with cash on hand and the cost reductions we have outlined, will allow us to extend our cash runway. With that, I will pass it over to Avinash.