Electrovaya Inc.

Good day, everyone, and welcome to the ElectroVaya second quarter 2023 financial results. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, John Gibson, Chief Financial Officer of ElectroVaya. Sir, the floor is yours.

Thank you, and good evening, everyone. Thanks for joining us today on the call to discuss ElectroVaya's Q2 2023 financial results. Today's call is hosted by Dr. Raj Dasgupta, CEO of Electrovia, and myself, John Gibson, CFO. Today, Electrovia issued a press release concerning its business highlights and financial results for the three- and six-month periods ending March 31, 2023. If you would like a copy of the release, you can access it on our website. If you want to view our financial statements and management discussion and analysis, you can access those documents on the CEDAR website at www.cedar.com. As with previous calls, our comments today are subject to the normal provisions relating to forward-looking information. We will provide information relating to the current views regarding market trends, including their size and potential for growth, and our competitive position within our target markets. Although we believe that the expectations reflected in such forward-looking statements are reasonable, they do obviously involve risks and uncertainties, and natural results may differ materially from those expressed or implied in such statements. Additional information about factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the company's press release announcing the Q2 fiscal 2023 results and the most recent annual information form and management discussion and analysis under risks and uncertainties, as well as in other public disclosure documents filled with Canadian security regulatory authorities. Also, please note that the numbers discussed on this call are in US dollars unless they are otherwise noted. And now I'll turn the call over to Raj.

Thank you, John, and good evening, everyone. Electroviae is becoming a serious player in the North American battery space, whether this be on the technology side, where we have recently had a third-party lab validate the exceptional cycle life performance of our Infinity battery technology, or on the operational side, where we have just demonstrated that we can scale production in a profitable manner. Our fiscal year second quarter was an important marker in our recent history. Not only did we achieve a quarterly record for revenue, but we have also made both an EBITDA and net profit. I can't think of too many clean tech or specifically battery tech companies that have reached this milestone. This is a testament to Electrify's commitment to focusing on high margin applications for our unique battery technology and retaining a frugal mindset overall with respect to how we conduct our operations. In today's risk-averse environment, I hope this will become a more valuable and apparent metric for the public and our investors. Our operations teams have been doing a phenomenal job in executing our growing order book while navigating continuing challenges with respect to the global supply chain. With respect to purchase orders, we are seeing an accelerating adoption, which is demonstrated in our receipt of over $20 million worth of purchase orders for the quarter. One trend we have noticed is that the overall sales cycle is reducing. For instance, one recent Fortune 100 customer order which we received was achieved without a physical trial, which used to be a feature as a standard part of the sales cycle. Customers are also becoming more familiar with lithium-ion battery technology in general and ElectroBio's specific performance advantages. I believe material handling customers have come to realize that ElectroBio holds the crown in this space for product quality, safety, and longevity, and there really is no comparable battery technology in the industry that I know of. If you consider our list of end users, we have the majority of the large U.S. retailers and a growing list of Fortune 500 and Fortune 100 customers. Just looking at the Fortune 100 company list, we have 10% of these companies using Electrovia batteries in their operations. Considering that many Fortune 100 companies don't operate warehouses at all, this is a very significant share. These corporations all represent significant potential new sales opportunities as we are currently just scratching the surface of their warehousing fleets. Furthermore, they also offer a pathway to other applications for our battery technology, including energy storage and other vehicle applications. Our relationship with Raymond Corp and the Toyota Industries Group in general continues to grow. At ProMat, a material handling trade show that we exhibited at this past March. We had Electrovia-built batteries powering nearly every Raymond vehicle, in addition to vehicles made by Bastion Solutions, a robotics and AGV manufacturer who's also owned by Toyota Industries. We are also actively working on new products. We recently commissioned a new innovative automated assembly module line at our Kitimat location. which will allow us to manufacture a variety of module configurations and will initially be focused on our new high voltage module. This module will be used in our upcoming high voltage battery packs, which are being optimized for electric bus and truck applications, in addition to high performance energy storage applications. We are expecting to start deliveries of some of these systems this calendar year. The company is also well underway with the development of custom integrated high voltage battery systems for a new material handling vehicle series. This system will utilize Electrovia's next generation battery management system, which allows increased IOT capabilities amongst other features. This next generation BMS will also feature in all Electrovia material handling products next year. Finally, with regards to our solid-state battery development, our team at Electrovia Labs is making great progress, and we will be providing a more detailed update at our battery technology event on May 17th. Electrovia is rapidly growing, and we will ultimately need additional capacity. This was one of the driving factors for our U.S. manufacturing expansion in Jamestown, New York. In March, we acquired the site at One Precision Way by purchasing the shares of Sustainable Energy Jamestown. We are also making good progress with respect to reaching an agreement with a government-backed finance institution to provide the necessary funding to outfit the first phase of our planned Gigafactory. One of the requirements of this institution is to provide a detailed independent engineering review for which we have engaged with a leading engineering consultancy. Their initial analysis is well underway, and we expect to receive it later this month. The Jamestown Gigafactory will be key in enabling Electrovia to grow further and also access new incentives tied to the Inflation Reduction Act. I'll pass it back to John.