Arrival

Hello, everyone, and welcome to Arrival's fourth quarter and full year 2022 business update webinar. My name is Mike, and I'll be your operator today. Before I hand the call over to the Arrival team, I'd just like to go over a few housekeeping items for the program. So as a reminder, today's webinar is being recorded. After the speaker's remarks, there will be a question and answer session. And if you'd 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 that you've set your Zoom name to display your full name and firm. So 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 fourth quarter and full year 2022 financial results and business update. I'm Annie Wechter, Director of Investor Relations, and today we have with us Igor Torba, Arrival CEO, Mike Abelson, CEO of North America, 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 fourth quarter and full year 2022 financial results and business update issued today on the 13th of March. 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 Igor.

Thanks, Ani, and good evening, everyone. I've been in my new role as a CEO of Arrival for a bit more than one month, but have been with the company for just over three years. I know the business pretty well and have a clear idea of what needs to be done. The Q4 business results and current objectives for 2023 we will share with you today are extremely important to me, and I have not accepted the role of CEO lightly. It's true that there is much to do to ensure we start production of our vehicles, but I'm confident we will clear these hurdles and get back on track. How do I know that? Over the last eight years, we developed a solid portfolio of progressive IP in electric vehicle hardware components and the software which integrates them. Rapid vehicle design and prototyping framework and tools, advanced model robotics, and new methods to flexibly manufacture high-margin vehicles. We are steadily increasing our liquidity while further reducing the cost of running our business, as shown through our recently announced 50% global headcount reduction and in our recent announcement of a $50 million equity capital commitment from Antara, which will also reduce our debt due. We believe we have a clear and compelling business plan to bring our technologies to the U.S. market through a purpose-built van designed specifically for last-mile delivery drivers. It's a product with a high level of commonality with our certified European LVAN, has a high margin profile, and qualifies for IRA tax credit up to $40,000, making it ultimately a very strong contender for adoption by U.S. fleet operators. By the end of March, we will be successful in achieving our goal with regards to global headcount reductions as forecasted. But what is most important is that we manage to retain key talent that allows Arrival to continue to innovate, improve and refine our portfolio of key IP and technologies, while we work to deliver to the business plan and vehicle program milestones. Our Bistro Microfactory team has been given the green light to continue building 10 vans for public road testing this year to accumulate 250,000 kilometers. The purpose of which is to further develop highly automated factory processes and integrate this with the company proprietary advanced mobile robotics. These activities will also help us to accelerate the development of the U.S. purpose-built van and start production in Charlotte with many improved efficiencies already in place. Mike will tell you more about this in a minute. And lastly, we are announcing the kickoff of fundraising efforts to fund the U.S. production plan today. We're interested in working with investors whose belief and financial support will be necessary to complete the U.S. product development at start of production in the Charlotte factory, targeted for late 2024. Before I hand the call over to Mike to talk more about our vehicle development programs, I want to emphasize that cash management is at the forefront of our business plan this year and remind you of a few of our key targets. Arrival had approximately $205 million of cash at the end of 2022. Subsequent to year-end, we received a capital commitment of another $50 million from Antara in new equity. Through the same agreement with Antara, our largest holder of convertible bonds, we were able to reduce our debt by $121.9 million through a debt-to-equity transaction. The remainder of our debt is due in January 2026. In addition, today we are announcing an equity financing line with Westfield Capital, which will provide up to $300 million of additional liquidity to the business. With cash on hand and additional initiatives to reduce working capital, we expect to have sufficient liquidity to fund the business into late 2023. As I mentioned, we are launching initiatives to raise capital specific to US vehicle program. John will tell you more about those capital needs later on. And lastly, today we are also calling shareholders to an extraordinary general meeting on April 6th for the purpose of voting to approve a reverse stock split of arrival shares, as well as a proposed capital reduction. If passed, a reverse stock split is one important action that will enable arrival to cure its trading price deficit with the NASDAQ and trade above $1 before our May 1st deadline. And with that, I'll hand it over to Mike for updates on our vehicle development programs.