Lilium N.V.

Good afternoon and good morning to everyone. Welcome to Lilium's full year 2021 business update. This is our second conference call being publicly listed. My name is Bjorn Scheib and I'm the Head of Investor Relations at Lilium. Before we start, let me just go through a couple of housekeeping items. This is a virtual conference call and for the moment all participants are in listen-only mode. Management will first provide an update on our business progress since our last call in November. A brief question and answer session will follow the formal presentation. We've scheduled the call for approximately 45 minutes, including Q&A time. Please note that this conference call is being recorded. A recording will be posted on Lilium's investor relations page soon after the event. As a reminder, After yesterday's market closing, we posted on our website our shareholder letter. I warmly invite you to read it. Before handing over to our CFO, Jeff Richardson, let me just give you a reminder of the Safe Harbor language and other cautionary statements that will govern today's presentation and are described in more detail on the first two slides of today's presentation. Specifically, I want to remind you that all of our presentation will include forward-looking statements. And any forward-looking statement or comments we make about Lilium's future expectations, beliefs, plans, objectives, financial condition, assumptions, performance, projections, forecasts or other characterization of future events or circumstances are subject to risks, uncertainties and other factors that could cause Lilium's actual results to differ materially from such statements. For more information on these risks, uncertainties, and other factors, please refer to the cautionary statements in our shareholder letter and the risk factors discussed in our filings with the US Securities and Exchange Commission. All forward-looking statements that we are making during this call are qualified by this cautionary statement. you should not place undue reliance on forward-looking statements which speak only as of today and which we assume no responsibility to update. With that, let me now turn over to Jeff, our CFO.

Thank you, Bjorn, and good morning, everyone. We appreciate you joining us this morning. With me on the call today are our co-founder and CEO, Daniel Wiegand, and our vice president business, Sebastian Borrell. We're especially delighted to have Sebastian with us today. He joined Lilium last year and brings over 20 years of aerospace experience. He'll be walking us through the exciting new developments between Lilium and NetJets. In 2021, we had the opportunity to share our vision of creating a radically new, emission-free, high-speed, quiet and affordable form of regional transportation. With your support, we're moving towards that goal. Today, we want to give you an update on several key developments. These are the highlights. First, a new market opportunity to sell our aircraft through private sales and fractional ownership. Second, a memorandum of understanding with NetJets for the prospective sale of up to 150 Lilium jets plus related aftermarket services. Third, Introduction of a premium four passenger club cabin configuration for the private and fractional market as part of our expanded product offering. Fourth, implementation of modifications to our aircraft based upon the preliminary design review process that will simplify the design and reduce technical and certification risk. To start with our financials, on cash spend, we met our budget in 2021. Total cash spend for the fiscal year through December 2021 was at $217 million, in line with our planned budget of $221 million and reflected our budgetary discipline and focus on key engineering projects. The total cash spend for Q4 2021 amounted to $72.7 million, higher than Q3's $56.5 million. The anticipated increase in the latter months of 2021 was mainly driven by the acceleration of the development program, including the planned ramp up in engineering activities and important investments in technology and supply chain. Technology investments mainly related to battery development, energy, and wind tunnel testing facilities. Total cash spend excludes transaction expenses and a one-time equity investment in technology. Going forward, We expect the quarterly total cash spend to decrease in Q1 2022 due to lower investments compared to the previous quarter, partly offset by preparations for extended flight testing in Spain and the build of our next demonstrator aircraft, Phoenix 3. Daniel will tell you more about those activities in a moment. Our liquidity at year end 2021 is approximately $400 million. Our audited full-year financial statements will be filed with the Securities and Exchange Commission at the end of this month. We're closely monitoring the effects of COVID, the conflict in Europe, and general economic factors on our business and planning. These factors put pressure on our employee, material, and non-recurring supply chain costs, specifically tooling and engineering services, as well as pressure affecting other stakeholders and regulatory agencies. We will provide a full year financial outlook together with an update on the program at our next business update in May. With that, it's over to Sebastian, who will tell you about one of our key highlights.

Thank you, Jeff, and good morning, everyone. I'm Sébastien Borel, Vice President Business at Lilium, and I'm glad to be joining you all today to cover some of the business highlights, starting with the fractional and private aviation segment update. We have received really strong interest from private and business aviation customers, and they do believe that the Lilium jet is especially well suited for the premium demands of the segment. We will therefore extend our commercial offering to private individuals and business professionals through either direct sales or through a fractional ownership model that we expect to implement through our future collaboration with NetJets. We believe this segment to be highly attractive to Lilium with a greater pricing flexibility, and we also strongly believe they will drive early adoption of the eVTOL aircraft globally. Moving on to NetJets, as Jeff said earlier, we are very excited to be working together with the world's largest private jet company, NetJets. The MOU we signed really covers three areas of collaboration. Firstly, NetJets will have the right to order up to 150 Lilium jets along with the corresponding support services from Lilium for its fractional aircraft ownership program in the U.S. and in Europe. Secondly, NetJet plans to support Lilium in establishing a separate private sales campaign for individuals to purchase Lilium jets. Aircraft will be sold by Lilium directly to private individuals, and those aircraft may then be managed on behalf of the owner by NetJets or its affiliate. Thirdly, we'll also work together to have NetJets run flight operations for our Florida network. As announced before, our lending infrastructure in Florida is to be handled by Ferrovial, a major airport operator and a leading investor, together with the Tavistock Development Company. So really, our network plans in Florida continue to make good progress. The proposed arrangement with NetJet is obviously subject to the party's finalizing commercial terms and definitive documentation, but for now, I'm glad

I'm Patrick Gallagher, I'm President of Sales, Marketing, and Customer Service at NetJets, and I'm thrilled to be announcing this partnership with Lilium today. We're so excited about the partnership with Lilium, which will start with NetJets having the option to purchase up to 150 Lilium jet aircraft. We'll also be working with Lilium to operate their network in Florida, as well as other key regions in the US and Europe. And Lilium will be working with our sister company, Flight Safety International, to provide products and services. NetJet's customers love our exclusive and flexible means of travel, something that they can't find anywhere else in the world. We believe that they'll find the LiliumJet a beautiful addition to the NetJet's overall experience because it'll allow them to do more and miss less, which we think is an important part of the overall NetJet's value proposition. It'll allow them to travel quieter with zero emissions. It'll allow them to complete that last mile that was being so important in the overall customer journey. With record-breaking flight demand across our industry, it's critically important that NetJets continue to invest now more than ever in providing new solutions for our customers to allow them the ultimate flexibility in their travel. And sustainability is at the forefront of every decision and every conversation that we're having today. So the timing was perfect for this relationship to kick off. Florida is one of our most heavily trafficked regions today. It also represents one of the highest concentrations of NetJet's customer base, and it's growing rapidly. We're also seeing new markets within Florida emerge. And so the ability to connect so many of those cities by the Lilium Jet, we think is a fantastic opportunity and a great testing ground for applications elsewhere in the country or in the world, frankly. We also see it as an opportunity for Lilium to tap into our well-established market, creating new sales opportunities for them as well as providing new services to our customers that we haven't been able to offer before.

We're excited about the deal with NetJets really for a bunch of reasons, but we see NetJets as really being the leader in the jet charter space. From the Lilium side, we really believe we're creating the ultimate eVTOL experience. You get in and it's a large cabin, it's spacious, you've got leg room, you've got lots of light. This is the sort of thing that people like and are used to today, especially the kinds of customers that NetJets has. We couldn't be happier with the team that we've been working with at NetJets. We really see them as having a very future-minded, very pragmatic approach. We really welcome their vision in terms of seeing where the world is going in terms of sustainability, in terms of electric aviation, and particularly with eVTOL. We really appreciate the fact that they've recognized the premium nature of the aircraft we're building and the impact it can have.

Great. So another important and exciting update today is our aircraft and its cabin configuration. Most of you probably have seen the aircraft and know the aircraft from the way it looks on the outside. With its proprietary ducted electric vector thrust technology, you can actually see clearly in this picture. However, our cabin is really impressive as well. It is designed in a modular and very flexible way. It's long, wide, tall, has lots of lights. It's been smartly designed to accommodate various configurations. This will ultimately allow us to pursue the various segments that we discussed earlier. So starting with our six-passenger shuttle cabin configuration, which we have announced before, it's high capacity, has lots of legroom space. This is really meant for commercial aviation shuttle services and higher frequency routes. Now introducing the new four passenger club cabin configuration, which is really well suited again to the private and business aviation segment. Offers the highest standards for space and comfort with premium seating, whereby the customer experience will be very special. Lastly, we remain excited for the potential of this large cabin to be turned into a cargo space. especially in the high-speed logistics business. And in this case, we'll not have any windows. We'll intend to support either bulk loading or containers, as you can see in this picture. I'll now hand over to our founder and CEO, Daniel Vigon, to talk about the LiliumJet program development. Thank you all.

Thank you, Sebastian. Good morning or good afternoon, everyone. I'm excited about the progress we've made not only on the commercial side, but also most certainly with the aircraft and with professionalizing our aerospace organization. We opened our preliminary design review in the fourth quarter last year, and this is an important milestone in traditional aerospace product developments, but it is similarly important to us. We are conducting the review as well as its closure with highly experienced independent advisors who have led some of the industry's most successful programs. Following our closure of the PDR, we expect to release the design data to our supply chain starting in the second quarter of 2022. As described in our November blog, the PDR consists of a series of technical reviews to assess whether the aircraft architecture will meet airworthiness requirements, deliver the performance requirements, and be produced at the appropriate quality levels. Completion of the PDR gives then the green light for engineering to finalize detailed designs and for procurement to ramp up supplier contracting. The PDR process also helps us refine and optimize the aircraft's design, as well as identify and mitigate program and certification risks. We continue to assess and as a result of the PDR process to date, we are implementing certain changes that simplify the design and reduce technical and certification risk. For example, through a slightly larger and more powerful engine design, we will reduce the number of engines from 36 to 30, and this will firstly reduce part count, weight and system complexity, It will secondly improve aerodynamic balance between the main wings and the front wings. It will thirdly create potential for lower material and maintenance costs. And lastly, improve the design flexibility of the aircraft in the future. We are also introducing, as Sebastian just mentioned, a flexible cabin architecture, which enables us to offer a range of different configurations over time, including a four-passenger club configuration and the six-passenger shuttle cabin, as well as a future cargo cabin. The cabin configurations we launch at entry into service will be determined by final customer demand, regulatory requirements, and the performance characteristics of the certified aircraft. We continue to evaluate our overall program and launch timeline according to the PDR and will provide an update at our next business update call in May. Now let me tell you where we are with the flight testing of our demonstrator aircraft. Following the highly successful flight test campaign in southern Germany last year, our fifth-generation technology demonstrator Phoenix 2 is now at the Atlas Flight Test Center in Villacarrillo in Spain for high-speed flight testing. The Atlas Flight Test Center provides optimal infrastructure enabling the aircraft to fly over a large and unpopulated area and this also offers excellent weather conditions in Spain. We expect our final permits to fly from the Spanish authorities to be issued shortly and following the wind tunnel tests we've done recently to validate our aerodynamic models, We are expecting an exciting flight test campaign in Spain, which we will expand the flight envelope through full transition into wing-borne flight and do high-speed flight testing. Work remains on track for an additional demonstrator aircraft, Phoenix 3, which is scheduled to go to Spain for first flight this summer. Having two test aircraft flying will further accelerate our flight testing campaign this year. I take a lot of pride in the way our aerospace aircraft is progressing, but also in our progress as an aerospace company. We want to build the leading electric aviation company of the 21st century. And therefore, in our recruitment, we are focusing on high quality talent and leadership. And we have recently made some important appointments in key roles. Karim Jalbut joined us from Egon Sender as Chief People Officer. His experience in blending new technology with industry mindsets will be invaluable to Lilium. Sebastian Porel, whom you've had a chance to listen to just now, joined us as Vice President Business. John Wisikowski, with 18 years executive experience from Pratt & Whitney, joined as Head of Propulsion. Jerem Oliveira, a former principal engineer at Gulfstream, joined Lilium as chief engineer flight mechanics. And Andy Strachan joined us as chief test pilot, currently running the campaign in Spain. Andy served in the Royal Air Force and was chief test pilot at Leonardo Helicopters. In the weeks and months ahead, we look forward to updating you further on the aircraft development, on the sourcing, on the flight testing, the commercial activities, as well as the finances. Finally, I wish to extend our sincere thanks to all our stakeholders. We are aware that the financial markets have been turbulent and technology stocks specifically have been challenged. Nevertheless, we are confident that we have a winning family of products and that we have the team to deliver a certified aircraft. We believe the rewards will be compelling for society, for the planet and our shareholders. Now let me hand you over again to Jeff and he will open the questions for you.

Thank you, Daniel. So now we have some time to take your questions. Please introduce yourself with your name and company. As a reminder, to ask a question during the session, please press star one on your telephone. If you're watching the webcast in parallel, please mute the sound of your laptop while you're asking the question. We will now begin with the Q&A session.

First question from Alex Potter from Piper Sandler. Please go ahead.

Great. Perfect. Thanks. Yes, this is Alex Potter, Piper Sandler. Okay, so obviously that NetGen announcement, very interesting. I just wanted to clarify, it sounds like this is primarily focused on the United States. So that was my initial impression is that it's mostly U.S., but in the video it mentioned Europe. a couple of times as well. I know NetJets has a presence in Europe. So to what extent is the NetJets partnership global in nature? Is it U.S. and Europe? Any comments on the regional focus of that relationship would be helpful.

Morning, Alex. Great question. Seb, you want to take that one, please?

Sure, definitely. And thank you for the question and the opportunity to clarify. It is a global partnership. We intend to look at their fractional market and in a global way. But obviously, as Pat mentioned in the video, the US market will be a good test for us to see how far we can go. But it's meant to be global and we're confident it will drive us to be global.

Okay, perfect. And then I guess another follow up on that. My understanding, at least, obviously, if you look at their current fleet, most of the jets that they have are 8, 10, 12 passenger configurations. Most of them are clearly going to be longer than the 100 or so mile routes that the Lilium jet will be flying. So to what extent does this, incorporating the Lilium jet into their business model, require them to change their service offering, change their pricing. It obviously is going to be a different product from what they've historically offered. So I'm interested in how they're approaching that.

Great. No, thank you again. I cannot speak from that just so you see today. What I can tell you, though, is that A very high number of flights of small jets actually are flying below 300 kilometers. So, you know, something like 200 miles. And therefore there is a need and demand for the first mile and last mile because some of those aircraft cannot land in all of the places in the world. So we validated the demand. And we feel confident it will be a great add to NetJet's offering and the way they're going to do it is for them to talk about.

Okay, perfect. That's the answer to the question. Yeah, yeah, yeah, that's good. And then... Maybe a couple questions on the technical side. You mentioned that a fair amount of the engineering spend has been focused on batteries. Presumably, that's in partnership with custom cells. I'd be interested in hearing about any progress there, I guess, on battery chemistry changes or any other key battery performance metrics. Not sure if battery-related developments were involved in the decision to move down to 30 engines from 36 or... I guess any other details you'd be willing to share on either batteries or powertrain would be interesting.

Thanks, Alex. I'll let Daniel take this. I would say that as part of our May 1, the team is going to give a larger battery update as part of our next call, but I'll let Daniel answer the specific question.

Thanks, Alex. That's a great question. So the changes from 36 to 30 engines were not related to the battery. On the battery side, as you know, we have started selecting and testing the silicon anode battery cells in 2020. Since then, we have made a big progress in testing those cells over two years. We understand their performance very well. We understand their power very well and their lifetime. And we are now focused with our partner custom cells on the industrialization of these cells, as well as the safety certification of these cells. On the industrialization, we have made great progress with custom cells. In fact, very soon we can start production of the first cells on the serial manufacturing line. This is the same line. that we would use for the serial manufacturing of the cells. It's the same tools and a fully process controlled and quality managed line, a huge step for the industrialization of our batteries and the prerequisite for certifying these cells. So we are fully on schedule with respect to the batteries and there's no changes on chemistry or anything else.

Very cool. Okay. So maybe last question, then I'll turn it over. You mentioned in the letter, obviously, a lot of interesting new employees added, which is exciting. If you could maybe comment on headcount. I think in a previous call, you mentioned you were working toward 1,000 employees or thereabouts. Is that roughly where you're at now, and are there any key job functions that you still need to address?

Thanks. Companies around 800 FTEs. We also... have a bit over 100 contractors. So we look at the mix between contractors and FTEs. So I think it's somewhere, if you add those two together, it's between 900 and 1,000. On an absolute basis, I think that it's not a numbers game for us, as evidenced by, I think, the quality of the people we showed on the page and in previous quarters. All of these developments come down to, you know, the quality of the team. So we're always looking at adding bench strength, I would say, and I'll ask, you know, Daniel can confirm this. I think the top of engineering is largely set, but we're always looking to add great talent, particularly filling out the management ranks. But Daniel, why don't you give your thoughts on engineering?

Yeah, I mean, as a CEO, talent is always at the top of my mind. And for this year, talent is not about significant growth. We may see a 10% growth or so in the organization. But as Jeff said, we're continuously adding top talent, especially in the middle ranks of engineering. And this is what we're focused on this year.

Great. Perfect. Thanks very much, guys. Thanks, Alex.

Thank you for your question. The next question from Colin Drush from OpenTayman. Please go ahead. The line is open.

Thanks so much, guys. You know, I'd love to get a little bit more detail on what's changing with the engines. You know, specifically if you are, you know, looking at higher voltages on how that operates, you know, the RPM for those engines and then, you know, the implications for... the next generation design by having a little bit larger engine? Does that simplify the process and the design of that larger aircraft?

I can take this one. Yeah, I can take it. So the switch from 36 to 30 engines is really an incremental change. There is no change in the engine design, no change in the technology, no change in the engine voltage. So what we're doing is basically slightly scaling up the geometry of the engine, but with the same design and parts, the same propellant speeds, the same acoustic technologies. So the motivation is, Here is really, as I have laid out, to reduce the complexity, make a simpler aircraft by reducing parts counts. And this is also obviously lowering the maintenance costs and the operating costs of the airplane. It doesn't really change something on the certification side. It's the same means of compliance and the same requirements that we are fulfilling. So we have been thinking about a 30 engine configuration over the last two years. But we really now just felt confident in that process to say, we now have all the data we need. We've had three wind tunnel test campaigns in the last 12 months to confidently make that step and make use of the benefits.

Okay, that's helpful. And then I'm curious about what's going on in the business development side. Obviously, you've been able to make a couple of meaningful announcements in the last couple of quarters. But as you look across the field of potential partners and interest level and maturity of those conversations, can you give us an update on where you're at with incremental partners, particularly around some of the freight applications that you guys have talked about as supplementing some of the passenger revenue down the line?

Sure, Jeff. You want me to take this?

Yeah, Sam, why don't you take that, please?

Yeah, it's an interesting journey, of course, and a lot of progress has been made, I have to say. I've joined recently, but I've been in the industry for long. I think people are starting to realize that this is real, that it will change dramatically the way of flying. We're talking to some cities and countries whereby the implementation of our eVTOL will have just a positive impact in terms of mobility, tremendous impact. So we're going through the journey of building the aircraft and people are following what we're doing. But overall, I would say that the maturity of discussions are increasing and our partners and potential customers that we're talking to are very serious about it and committing to resources, understanding what it takes to operate such an aircraft. And overall, I think we're getting closer and closer to being able to look at that at a much more global footprint.

Seb, do you want to comment on delivery? I think that was one of Colin's main points. Say that again? Do you want to comment on delivery? I think Colin had asked, what are we seeing on the delivery side?

Delivery side on the aircraft side you're talking about. Sorry, I missed it.

Yeah, like cargo. I think you said, you know, what are your thoughts around that? Well, I got it.

Cargo, sorry. Yeah, so this one is a bit, you know, more complex. Every single cargo company has slightly different requirements in regards to why they want to do it. But overall, still very positive. A lot of discussions with those companies and we'll see where it leads. But obviously, overall a big engagement and trying to figure out some of the details of their operation. So quite engaged and we'll see in the near future.

Great. Thanks so much, guys. Thanks, Kyle.

Thank you for your question. The next question from Halam Forest for Longstool Research. Let's go ahead.

Morning, Adam Forsyth from Longsborough Research. A couple of questions, if I may. Just going back to the answer you gave just on motor engine technology, I just wonder, I think I'm right in saying it's a permanent magnet synchronous motor that you're using. Have you ruled out other motor technologies? Obviously now, I think as you said, it's the same technology. Have you ruled out things like actual flow motors in the longer term? And then on the PDR generally, I wonder, have you made any changes on the back of what we've seen in terms of supply chain disruption sort of across the world generally? Do you think you now maybe are in a more robust place for potential disruption going forward? And then just a couple of quick questions on the MOU. Is there any timeout clause on the MOU or is it a sort of evergreen one? And again, just like clarification on an answer to an earlier question, the actual fractional ownership model which NetJets has, will that pretty much be the same model that they'll offer? I mean, you know, will the sort of model they're offering on a Falcon be the same one they'll offer on a NetJet aircraft? Thanks.

Okay, that's great questions. Jeff, I can take the first one and maybe you can take the second. On the motor, yes, I can confirm it's a standard permanent magnet electric machine, which of course we have looked into different designs like axial flux machines and other types of machines. There's two reasons why we in the end decided took a relatively standard geometry for the motor. One is cost and the supply chain. Again, we have the highest competition in the market for this type of motors. And the second reason is that it fits very well into the cooling concept and geometry of our engine. It's an extremely powerful or power dense motor still because it runs at relatively high RPM and we're using very sophisticated geometries and designs. But in a nutshell, it's a standard permanent magnet motor.

Okay. Yeah. So everyone take a rest.

Yeah. For NetJets, obviously, I can't communicate the term of our agreement. However, what's more important is we are currently working hard together to really make it happen. And we have, as we said earlier, several streams. Number one is, you know, how does our aircraft fit into their fractional model? And it seems like it's a great fit. And we're really excited to work together with them, better understanding. Someone mentioned earlier the number of passengers. I can't comment on these confidential data, but our aircraft capability and capacity actually fits very well with most of their travels. So anyway, back to fractional. Number two is private sales. So this is very important as well, right? We're going to be serving private individuals, and all that craft will have to be managed by a Part 135 operator or 145 for maintenance. But this is the second big pillar, how we're going to be selling to private individuals. And lastly, we see that as a great opportunity as well to to make our Floyd and I work even more real with, you know, an operator looking at the fight up side of our business there, along with, like you said earlier, the partnership on the infrastructure side. So really complimentary, I would say work streams, and we're working hard together with both teams right now to make it a success.

And Adam, for me, what's really important about this deal is the concept that if you look at their customer base, they're early adopters and they have an ability to pay. So you combine those two things. There's a lot of ways to work together and deploy those. But if you take it up a level and look at how industries typically roll out their customer base, who are the early adopters is quite important. And we've aligned that we agree that their customer base are likely early adopters for this type of product.

That's really helpful. Just that other question, just on the PDR and impact on and influence off supply chain issues, and particularly supply chain potential disruption.

Yeah, I think that... We're very aware of the disruptions. I wouldn't necessarily say that the outcome of PBR is to change designs based on current supply chains, but the team has been very focused since last year and aware of it. So as we go through the PBR process, any limitations or kind of difficulties in the supply chain are getting factored into the process. I don't think design changes are happening to address the short term market imbalance. But as we go forward, whether it's, you know, through volumes, through contracting, through NRCs, uh, there's a huge amount of supply chain activity. This is one of the topics we'll be in a position to give you a deeper dive. We'd like to, um, do that on the May call. Cause I think we're seeing more visibility, but I think that the team has been, uh, working very hard on this. And I think in the last call, we had updated that we had added a new head of supply chain who was very senior from Airbus and BMW. So we've also spent a lot of time adding talent to this team, particularly because of the current situation in the market.

That's great. That's really helpful. Thank you very much.

Thanks, Adam. Thank you for your question. The last question from David Zasula from Barclays.

Hey, thanks for taking my question. Maybe for Daniel or Sebastian, you gave some criteria that you would be using to address the type of configuration you'd go on to the launch market. I know you'll give more color on this in May, but can you maybe give a little more detail on the criteria you'll be using and how you're evaluating that? And specifically whether you're thinking right now maybe launching one configuration before the other in the 2024 launch time?

Daniel, want to take it or you want to take it?

I can take it. I can start and maybe you can add to it. So from the technical perspective, this is really a flexible cabin. So we're deliberately designing the aircraft and this is part of the PDR process outcomes here, we're really designing the aircraft to be able to accommodate all different types of cabin configurations. So in the end, it really boils down to the demand of the customers and the different segments. We think that as early adopters on the fractional ownership side, especially, This is a great market and business model to start with. But I would maybe hand over to you, Sebastian, to say a couple of words on the demand side.

Yeah, well, actually on the demand, we've seen obviously both people that cares more about higher capacity and high frequency routes. And we've seen others more into replacing helicopters, more premium helicopters. So if you're asking me in what order we're going to be starting delivering the aircraft, I can't give you that answer yet, but it would probably be a combination of both configurations. As Daniel said, we have a smart design in the cabin, and we're not afraid of being able to deliver the aircraft in either order.

David, does that make sense?

It's specific to the configuration. That does. Specific to the configuration, is it envisioned that the configurations would be roughly similar payload size for the four or the six?

The payload size?

He said payload.

Like how much weight you would... Oh, wait. Sorry.

The configurations can have different payload capabilities. So they would not all have the same payload necessarily, depending on what you're adding in the cabin and what configuration you choose in the cabin.

Okay, great. And then if I get one follow up, you had a competitor announce a launch and a certification process in the Brazil market. you already have an existing agreement in that market. Can you maybe just, you know, discuss how your certification process is expected to develop there and, you know, your assessment of the market and whether it can, you know, support multiple entrants?

Yeah. Daniel, you're on the second. I'll start. Yeah, as you know, you know, we're going to be in the, yes, you know, territory and we'll have the FAA certification as well. And therefore, you know, we're going to be able to go outside quickly to any countries in the world that, you know, people accepting a USF certification. So we obviously engaged with our partner Azul and with the authorities over there and we'll see how it develops. But I think Brazil has a huge market and probably there is enough room for two, right? So All I can tell you is it's going well, we're engaged, authorities are engaged, and we see that market being quite interesting for us.

Thanks, Sebastian. Thanks, Daniel.

I think we have two minutes. We received a number of questions from our retail engagement platform. We saw... a lot of engagement and they voted up. I think we have time for probably two quick questions. Daniel, why don't we give you, what can we expect an update on the progress of key flight tests such as max speed and max range validation tests?

So on the flight testing side, as I mentioned before, we have just freshly brought the demonstrator to Spain. And in the Spanish flight test area, we have the big advantage that it's an uninhabited environment where we can do longer flights. We can do faster flights. We can, in the future, if necessary, fly beyond visual line of sight. So we're starting this flight test campaign now. And we have as a target for this campaign in the next steps to do the full transition flight and then continue into high speed flying. And then in summer, we will add another aircraft to this test campaign. So we're going to have a higher pace in the testing of our technologies and of our airplanes. And we'll obviously keep you updated on any progress in the flight test campaign. I think it will be very exciting. It's for me always the most exciting thing to see the aircraft flying.

Thanks, Daniel. And I think with that, we're at time. We will try to leave more time in the future to address the highest voted retail questions. But I think with that, we come to the end of our Fiskier 2021 business update. I wanted to thank everyone for joining us and we look forward to speaking again soon. Cheers.