Canoo Inc.

greetings welcome to the canoe q3 2024 earnings presentation at this time all participants are in a listen only mode a question and answer session will follow a formal presentation please note that this conference is being recorded i will now turn the conference over to your host kunal bala chief financial officer thank you you may begin thank you everyone for joining us on our q3 2024 earnings call during the call

Tony will update you on our business. I will provide an update on our capital raising efforts. Ramesh will go over the Q3 financial results. Please be advised that we may make forward-looking statements based on current expectations. These are subject to significant risks and uncertainties, and our actual results may differ materially. For a discussion of factors that could affect our future financial results in business, please refer to the disclosure in today's earnings release and our most recent Form 10Q and 10K and other reports that we may file with the SEC, including Form 8K. All of our statements are made as of today and are based on information currently available to us. Except as required by law, we assume no obligation to update any such statements. During the call, we'll discuss non-GAAP financial measures. You can find a reconciliation of these non-GAAP financial measures, the GAAP financial measures, in today's earnings release, which can be found in the IR section of our website. With that, I'll hand it over to Tony.

Thanks, Kunal. The automotive industry is facing challenges that are not only inflation, interest rates, supply chain disruptions, but also in the center of political debate as it relates to rarer materials and the transition to EVs, which means there is volatility until America becomes fully independent. With that backdrop, we have also struggled to navigate the capital markets to align with our step-level manufacturing plan. While we sharpen our focus on our core customers and markets, we must continue to flatten the organization and take aggressive actions to be more cost-disciplined as we realign our North American operations, which we should have done earlier in 2024. This starts with a committed executive team which believes in the value of what we are building and are willing to do what it takes, including short-term pay cuts in exchange for long-term incentives, aligning us all with our shareholders, and creating a leaner, flatter, and more efficient and cross-functional operating structure. With that, Kunal and I will be more focused on raising the needed capital to meet our customer's demand for our product and solutions and getting us back on track with our step-level manufacturing plan. Our footprint consolidation. Consolidating our facilities from six to three, just in Texas, Oklahoma City, and prior Oklahoma. While we have been through some turbulence, we have brought a net increase of higher-paying engineering and advanced manufacturing jobs to the states of Oklahoma and Texas. Unfortunately, we've been on a roller coaster which has impacted our workforce, and most recently we made the difficult decision to furlough 23% of our workforce or 30 of our teammates in Oklahoma City, which weighs heavy upon us. This will continue to be difficult and a critical period as we consolidate, but we will do everything we can to get the capital in place and bring those jobs back online. On the positive, we have achieved 45 relocations to date from California to our Oklahoma facilities and just in Texas. We have received FTC certifications, completed established our Oklahoma as our base for exports, and import building blocks for both left and right-hand drive markets. Further, many of our suppliers will be happy to hear that we have established a share pool for our supplier partners, part of our supply chain partnership harmonization. Focus on commercial, government, and fleet customers only. Our prices are firming With growing customer demand, electrifying fleets is not just an environmentally friendly decision. It's also an economically beneficial business decision. In this phase, we will be solely focused on our fleet order books. Therefore, we have made the difficult decision to refund customer deposits for consumer vehicles. We appreciate all of our consumer orders we have received to date, but as many of you know, entering the consumer market is not profitable or viable for us until we have scale. Thus, our focus on fewer high credit grade customers that are serviceable and profitable at lower volumes. We are grateful for the support as the company started originally with its focus on consumer vehicles but as you all have seen over the coming or the prior quarters we have pivoted the business into a very strong and fleet market we have started also diversifying to pro-ed markets with approved mandates and government-backed incentives like the uk after successful engagements with major fleets in the uk We established a legal entity and selected Vista Motion to launch commercial operations in the country. We completed IDA, which is individual vehicle approval, for our two pilot vehicles within three months and with 2% bond change from our existing LDB 130 and 190 platforms. improved cycle time, developed and validated the product with a customer, the USPS, which requires a right-hand drive vehicle. Our platform flexibility to economically expand into these right-hand drive markets reduces launch time for us to enter a new market with a validated and proven product that has been tested and used by heavy fleet users. SMR support for our customers. We selected Automobile Association Service Maintenance and Repair and announced that agreement. And we now have a pilot program with a prestigious UK fleet testing our vehicles during the busiest, coldest and wettest season. Looking forward, we are mapping our UK rollout in a three-phased approach. Phase one, with customers who represent the infrastructure in the backbone of the country. Phase two, diversifying to various industries. This is our framework. We will only sell vehicles to customers after they have road tested it, and we have debugged our product for their specific uses and markings. Rushing to build, deliver product, and underwriting high warranty risk is not our business model. The UK government incentives on clean energy net zero goals of 70% of new vans sold in the UK to be zero emission by 2030 and 100% by 2035. Recently, they re-approved the 5,000-pound maximum plug-in grant available for large fleets. The UK providing 120 million pounds in 2025 and 26. Over 2 billion over five years to support the automotive sector, including zero-emission vehicles, manufacturing sector, and supply chain. Approved as part of the autumn 2024 budget. For those who have followed me know my track record. I have operated in over 90 countries, and my past company opened a new office every 90 days. We understood currencies. We learned about them, importance of localization, denominated manufacturing, labor pools, and et cetera. Our modular, flexible architecture was designed to support activities in different regions. As kids, we call it the MPP, the multi-purpose platform. Assemblies for full manufacturing, more on this topic as we roll out our UK strategy. As we established international opportunities, domestic demand for canoe LBVs also continued to build. submitted application for California's Department of General Services, DGS, for our LDD-130. Current contract does not have enough electric vehicles available for state agencies. With agencies unable to meet state electrification mandates, if approved, opens LDD-130 to a TAM of a few thousand vehicles. With that, I'll turn it back over to Kanoan.