REE Automotive Ltd.

Good day and thank you for standing by. Welcome to the ReAutomotive Q2 2024 financial results. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker today, Karen Shemesh, REIS Chief Marketing Officer. Please go ahead.

I remind you that today's call may include forward-looking statements. Any statement describing our beliefs, goals, plans, strategies, expectations, projections, forecasts, and assumptions are forward-looking statements. Please note that the company's actual results may be different from those anticipated by such forward-looking statements for a variety of reasons, many of which are beyond our control, such as the ongoing military conflict in Israel. Please refer to the company's Form 20F, filed on March 27, 2024, with the Securities Exchange Commission, which identifies the principal risks and uncertainties that could affect our business, prospects, and future results. We assume no obligation to publicly update any of these forward-looking statements except as required by law. In addition, we will be discussing or providing certain non-GAAP financial measures today, including non-GAAP net loss and non-GAAP operating expenses. Please see our financial results press release for a reconciliation of these non-GAAP measures to the most directly comparable gap measures. Listeners and those on our webcast are invited to follow along with our presentation today, which is available on the investor relations portion of our website. Today's call is hosted by Daniel Bar-El, Reece co-founder and CEO. We will be joined by Josh Steck, our chief operational officer, Tali Miller, our chief business officer, and Yaron Zaltzman, our Chief Financial Officer. I will now turn the call over to Daniel Burrell.

Good day, everyone, and thank you for joining us today. For those of you who have been following our story, and for those who recently joined, the past few months have been the most significant in REIT's history. We have achieved milestones that we pursued for years. Today, I can tell you that we have what we believe is by far the best product offering in our heavily underserved addressable market. I can also tell you that we have secured sufficient production capital and our funding position is strong. Thanks to our recently announced Strategic Supply Chain Management Agreement with Mothersong Group, we de-risked our ability to ramp up to mass production. We have already kicked off U.S. production with Roush as a U.S.-based contract manufacturer for our P7 product line. And we continue to see growing demand for our products, both from fleets and OEMs. The strategic agreement with Mothersan Group is transformational. It will allow us to grow faster while lowering production challenges that other EV companies often face as they ramp. With Mothersan driving manufacturing, customers and shareholders could be confident on this front. Today, we are joined by two great gentlemen from Mothersan, Mr. Rajesh Goel, President, Head, Special Projects, and Mr. Averol Kendall-Hawal, Head of Group Strategy and M&A, who will share more on the rationale behind Mothersan's decision to partner with REE. But before we jump to discuss these strong milestones in more detail, Let's first cover the second quarter of 2024 financials. Second quarter net loss narrowed by 57% quarter over quarter and by 59% year over year. Free cash flow burn continued to narrow with a 19% reduction quarter over quarter. Liquidity was $60.5 million comprised of cash, cash equivalents, and short-term investment inclusive of a $15 million credit facility. I believe that our strategic agreement with Mothersan will allow faster and more stable production scale-up and significant working capital benefits. Mothersan is a very strong global engineering and manufacturing company and one of the world's leading automotive suppliers. For Fiscal Year 2024, Mothersan achieved gross revenue of $17.2 billion and they operate 400 facilities across 44 countries with 190,000 employees. Mothersan has a strong lasting relationship with some of the leading automotive brands. Combining Mothersan's manufacturing expertise and supply chain might with Reeve's market-leading software-defined EV product, lineup promises to create a dominant new force in the electrified commercial vehicle market globally. allowing us to service customers at scale and address the significant order growth anticipated for our products. As part of the strategic agreement, Mothersan will manage sourcing and supply chain management of all production parts and support the assembly of the Re-Corner and the Re-P7 electric trucks. They will drive operational manufacturing improvements to Re's production line, which we believe would significantly improve unit costs. Faster revenue growth and improved unit costs are expected to accelerate the road to meaningful free cash flow generation. Demand-wise, we continue to see strong interest in our technology from potential customers, including OEMs. Let me repeat that last point. We are currently in discussions with three OEMs seeking to utilize RIS software-defined technology in their future product lines. offering the potential of meaningfully expanding our current offering from full vehicle or platforms to software licensing of our full X-by-wire technology, allowing OEMs to take our software to EVs in all classes and segments. Our order group continues to grow, reflecting strong demand even amidst broader challenges in the EV market. We remain committed to offering excellent products that provide improved operational efficiency and a low total cost of ownership. With the additional confidence customers gain from our collaboration with Mothersan, we anticipate strong order flow to continue. To put numbers on it, our order book is up 15% quarter over quarter as we continue to expand our dealer and service network to 78 locations across North America. We now have one of the largest service network of its kind in North America. On the demand front, it is important to know that the commercial vehicle fleet globally is not electrifying as quickly as fleet owners would like. The reason is simple. The available electrified vehicle options are simply not good enough. I think it's fair to say that major fleet owners today are desperate for a fit-to-purpose electric product that they can order at scale. At the risk of repeating myself, we believe that REE has the best-in-class technology-led product. Not only do we have the best product, but now, thanks to Mothersan, REE also has the manufacturing skill, experience, and expertise to scale production to meet the demand of large and global fleet owners. The annual market for medium-duty vehicles in the U.S. alone is 240,000 units, with more than double that in Europe and Asia. Currently, only a small part of that is electrified. And those units that do sell are essentially retrofitted ICE products. With the right product and production availability, the industry could easily be ordering tens of thousands of EV units per year in the U.S. alone. especially in class 3 to 5. With the right product, the required manufacturing backing, and the required service network, we are ready to meet the growing demand. As you may have seen, last week we announced a $45.35 million capital raise. As you know, we went public via a SPAC transaction, and at the time of the transaction, we underwent approximately $153 million in redemptions, causing us to commence our life as a public company with less cash than we expected. However, since that time, we continue to adopt, and today we feel that we are finally in a very, very strong cash position. We are proud that we have made it to the mass production point with the best in class, full FMVSS certified X-by-Y product that has been custom designed for the target customers. Thanks to the continued support of our patient long-term investors, this additional capital allows us to move forward confidently into the mass production phase from a financial standpoint. Mother-son contributed to the capital raise, as you have seen. fully aligning their interests with ours. With that, let me head it over to Josh to tell you more about our plan to meet the growing demand we see.