Arrival

to discuss Arrival's first quarter 2023 business update. I'm Annie Wechter, Director of Investor Relations, and today we have with us Igor Torgov, Arrival Group 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 in our first quarter 2023 business update issued today on the 15th 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. And with that in mind, I'll now turn it over to Igor.

Thank you, Ani, and good afternoon and evening, everyone. In Q1, we significantly reduced our cost base through the optimization initiatives we had planned for the quarter, including nearing our target for regular quarterly spend, which excludes settlement of legacy supplier obligations and other restructuring costs. These actions have allowed us to focus the organization on our business plan, which is to deliver a purpose-built Class 4 delivery vehicle for the US market in 2024, which we call the Excel van. I would like to remind you that we believe we have a clear and compelling business plan focused around our Excel van. The Excel van is a Class 4 commercial vehicle designed specifically for last mile delivery fleets. Vehicles in this size category are typically too large to be manufactured by a traditional automotive OEMs. As a result, the vast majority of vehicles in this class are built using an OEM chassis that is then finished as a complete vehicle through a second stage manufacturing. Our XL van also shares a high level of commonality with our certified European L van, 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 US fleet operators. During the quarter, we announced a business combination with the Kensington Capital Acquisition Corp 5. Kensington's senior leadership adds decades of automotive and industrial experience, as well as access to valuable customers and supply chain, expertise in building and running vehicle manufacturing facilities, and public company leadership in managing and deploying capital. The combination validates Arrival's strategy to bring a purpose-built Class 4 last mile delivery vehicle to the US market and should provide a meaningful amount of capital for the Excel program. We are looking forward to partnering with Kensington to meet our production goals. Our focus going forward this year is on closing the merger with Kensington and executing our operational milestones, which include continuing to validate our product and manufacturing method through producing 10 L-Vans in Bicester, accumulating 250,000 kilometers in road mileage testing, and finalizing our Excel van design. All these efforts will help to inform and improve the design and manufacturing of our XL van when it enters production in Charlotte, planned for next year. I will now hand it over to Mike to elaborate on how we are progressing toward achieving these milestones.

Thanks, Igor. The 10 Bistrovan builds are progressing well. We've completed the build of three vehicles and have a further five vehicles in process. To remind everyone, we're building these vehicles to further develop and integrate our manufacturing processes and to then accumulate additional test miles for the vehicle. In BISTR, we now have several stages of our body assembly process running completely automatically with our EMRs integrated to carry both parts and the vehicle to the assembly cell. To date, we're nearing 50% of our design throughput in some of the assembly stages. Because the manufacturing process we're using in Bistro is very similar to what we'll use in Charlotte for the XL van, our Bistro development experience will have an enormous benefit for the Charlotte factory next year. We've also advanced our road mileage accumulation, racking up 90,000 kilometers so far from our L-van fleet, with the goal of accumulating over 250,000 kilometers by the end of the year. Our vans are being driven for multiple hours almost every day on public roads by rival employees. And I'm happy to say that the vans are operating reliably and to specification. Due to the reuse of common components and engineering solutions, this mileage accumulation program is continuing to improve our confidence for the XL program. On the XL van program itself, we've completed our fourth round of vehicle simulation and analysis in preparation for release of long lead structural parts next quarter. As we further evaluate the XL program business case, we've decided that commercially available systems may present a better alternative than developing and tooling in-house components, especially for those components with a high material cost. Using commercially available components reduces our development costs, program investment and program risk. We'll have more to say around the specific component strategy in the future. That concludes my summary. I'll now turn it over to John to provide our financial update. John?