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Eve Holding, Inc.
12/23/2022
Greetings. Welcome to EVE Air Mobility Third Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Lucio Aldworth, Head of Investor Relations. Thank you. You may begin.
Thank you, Operator. Good morning, everyone. This is Lucio Waldworth, the Director of Investor Relations at EASE. And I wanted to welcome everyone to our third quarter 2022 earnings conference call. I've got here with me co-CEOs Jerry DeMuro and Andres Stein, as well as our CFO Eduardo Couto. After the initial remarks, we're going to open the call for questions. We prepared the deck with a few slides and additional information. This is available at our investment relations website at ir.easairmobility.com. So please download it for your reference. Now, let me first start by mentioning that this presentation includes forward-looking statements or statements about events or circumstances that have not yet occurred. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting our business and future financial performance. These forward-looking statements are subject to risks, uncertainties, and assumptions, including, among other things, generic economic, political, and business conditions, both in Brazil and in our markets. The words believe, may, will, estimates, continues, anticipate, intends, expects, and similar words are intended to identify forward-looking statements. WINDOW takes no obligations to update publicly or revise any forward-looking statements because of new information, future events, or other factors. In light of these risks and uncertainties, the forward-looking statements and circumstances discussed in this presentation might not occur. Our actual results could differ substantially from those anticipated in our forward-looking statements. With that, I will now turn the presentation over to Jerry. Jerry?
Thank you, Lucio, and thanks to all of you for joining us on the call today. We've had an eventful quarter and have a number of significant events which we will talk about this morning. They include things like major additions to our partnerships, a very successful simulation in Chicago, continued growth of our backlog and progress in our product development. Importantly, we've also reached agreement with the Brazilian National Development Bank to significantly enhance our balance sheet. And we're doing that through a financing vehicle that is completely aligned with a foundational reason and the core values of this business, reducing carbon emissions, and sustainable, environmentally friendly transportation. Idu Kutu, our CFO, will discuss the terms in more detail in just a bit. First, I'd like to talk about a new partnership which we announced with United Airlines on September 8th. United is one of the largest and most recognized global carriers in the world. They are also a long-term client of Embraer. And this will be a strategically important partnership for EVE. It adds to our partnerships with fixed wing and helicopter carriers, rideshare platforms, propulsion and battery management companies, as well as technology providers and infrastructure inverter port operators. This will help EVE scale the UAM ecosystem on a global basis. United has invested $15 million, which will go directly to help fund the development of this UAM ecosystem. United is now our largest client with a potential for 400 orders, and this gives us an important foothold among one of the main U.S. and global carriers. It will also be strategically important as United's standing in the entire flight and aviation arena will help us build out the UAM ecosystem. And Stein will talk a little bit later about our Chicago ConOps in which United participated. Next slide, please. Next, I mentioned earlier that we had grown our backlog significantly. As you can see from this slide, we now have letters of intent for almost 2,800 vehicles and a backlog that would equate to over $8 billion, certainly well over our first four years of projected production. In addition to United, EVE has signed with Blade India, Flybus, and an undisclosed customer for another 700 new aircraft. We have also added strategic partners to help us develop our UATM platform and have signed LOIs with Halo, Flyblade in India, Skyway Technologies here in the Americas, Blue Nest in Europe, and Volatus in the United States. So you can see we're also moving out on a global basis with our UATM, that's Urban Air Traffic Management software platform. We continue to take a holistic approach, and with our simple design and Embraer backing, we now have the largest order book in the industry, as I said, with almost 2,800 LOIs for vehicles. Some of our clients, as you know, are also investors in EVE. So their interests are completely aligned with UAM development, and we have a long-term relationship. We also have the most diversified order book, not only a number of clients, now well over 25, with United being the largest. No single client represents greater than 15% of our backlog. We cross all sorts of industry types, as I mentioned before. We have helicopter operators, fixed-wing operators, lessors, ride-sharing platforms, and even a defense alliance with BAE Systems. Regionally, we have the largest exposure in the United States with a little bit less than 50% coming from North America, but we have global distribution and we touch just about all of the populated continents around the globe. Now, as I mentioned earlier, we announced today a new source of liquidity for our aircraft development and certification with the Brazilian Development Bank. I will ask Edu Cutu, our CFO, to provide some detail. Edu?
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