Eve Holding, Inc.

Good day, and welcome to the Eve Holding, Inc. second quarter 2024 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's remarks, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I'd now like to turn the conference over to Lucio Aldworth, Head of Investor Relations. Please go ahead.

Thank you, operator. Good morning, everyone. This is Lucio Aldworth, the Director of Investor Relations at EVE. And I wanted to welcome everyone to our second quarter 2024 earnings conference call. Our CEO, Johan Bordet, and CFO, Eduardo Ducoto, are joining me on this call today. And after their prepared remarks, we're going to open the call for questions, at which point, Luis Valentini, our Chief Technology Officer, will also join us for more technical questions. We did prepare a deck with a few slides and additional pictures that show our achievements in the quarter, as well as the rollout of our first full-scale prototype, and that's on our website at ir.iveairmobility.com. So please feel free to download it and follow along. Let me first say that this presentation includes forward-looking statements, or statements about events or circumstances that have not yet occurred. These are largely based on our current expectations and projections about future events and financial trends affecting our business and our future financial performance. These statements are subject to risks, uncertainties, and assumptions, including, among other things, general economic, political, and business conditions, both in Brazil and in our market the words believe may will estimates continues anticipates intends expects and similar words are intended to identify forward-looking statements when they take no obligations to update publicly or revise any statement because of new information future events or other factors With that, the future events and circumstances discussed in this presentation may not occur, and actual results could differ substantially from those anticipated in our forward-looking statements. With that, I will now turn the presentation over to our CEO, Johan.

Thanks, Lucio. Good morning, and thank you for joining the call today. We had a very special and exciting second quarter. We continued to advance in our program, and we reached a very important milestone. As we had anticipated before, we completed the assembly of our prototype, and we rolled it out to the hangar for the first time in early July. This is a traditional ceremony to present a new aircraft to the public, the press, and investors. As a reminder, this is a full-scale engineering prototype without cabin nor cockpit made of composite materials that will be piloted remotely. This prototype will be used to validate and improve the accuracy of previous subscale and computer models. It will also be served to build on the several rigs that we have for different individual components. We will now start a series of ground tests before moving to hover and full-transition flight tests. We expect these tests to initiate later this year, and they will be performed at the same Embraer facilities in Gavin-Fescioto, also known and called GPX, in the state of Sao Paulo. GPX offers a parallel infrastructure for test flight that was specially and specifically designed to test Embraer prototype aircraft. In parallel, we continue to down-select suppliers and sign binding contracts. These define technical specification for the component and commercial aspect with volume, unit prices, and aftermarket support conditions. Just last month, we selected QRD, Latteco Air, RALC, and Altec. As a reminder, we had selected earlier in the year KAI for the pilots, Acituri for the wings, Cruze for the pilot and scepter, and also FACC for the tail section of our VTOL. We have now completed the selection of what we call the flight-critical component suppliers for our aircraft and will continue to work on defining the non-critical partners. We will come back to this later on. Now, moving to the next few slides, we will show some pictures of the rollout event and the aircraft itself. These show the full scale of our prototype, which, by the way, will closely resemble to the commercial version. As we mentioned before, our EVTOL will have similar dimension to most widely used helicopter so that it fits the helipad and also carry the same number of passengers. One interesting fact is that the prototype is made of multiple composite panels that are easily detachable, removable, This will allow us to have an easy access to the internal electric and electronic components and facilitate any operation that we may need to be done during the flight test campaign. We always had safety and simplicity in mind when defining the lift plus cruise configuration for our VTOL. With these fixed components, we believe that our aircraft will have many advantages that will allow operators to be profitable with lower maintenance and operating costs and higher availability for their missions. This simpler design also will benefit to the certification campaign. Lastly, our commercial EV toll will have Embraer fifth generation fly-by-wire system. This is a proven technology that has been successfully improving safety and passenger comfort in some of the Embraer commercial executive and military aircraft, and we have access to it. This, in my view, is yet another competitive advantage that EVE has, and it will become eventually clear to investors over time. Now, moving on to the slide six, it shows the next steps of our test campaigns for our engineering prototype. We will now start ground tests to validate thrust, energy consumption, sound, vibration, and other tests before to move to the actual flight test campaign. As we always done, we will approach the test campaign very conservatively and only move forward with the minimal risk. We will initially perform the hover flight tied up to the ground and gradually increase power and height. Then we will move to the partial transition. This is when we engage the pusher without fully disengaging the lifters to continue controlling the aircraft horizontally. And only then we will move to the full transition flights. The next couple of slides show a bit more of the engineering infrastructure that we are accessing at the Gano Peixoto and the GPX facilities. Again, this is where Embraer manufactures and tests most of its commercial, executive, and military aircraft, and it's the home of the largest runway in the southern hemisphere and the fourth largest in the world. This is a state-of-the-art facility with all the necessary infrastructure for test flight and has been available to EVE Air Mobility. In fact, This is where our prototype was built and will be tested. And it's the houses of custom built rig that is mounted on the truck. We drive it down the runway to mimic what is the real life aerodynamic track, vibration or other performance criteria, which we will test with different configuration. We'll also validate and refine our computer models and ultimately improve the design of the motor propeller rigs of our aircraft. At the same time, we have another high-tech truck that will be the nerve center for the remote flying testing phase of our prototype. The truck is equipped with all the necessary equipment for the pilots. Our first prototype will be remote control along with different teams to constantly monitor different telemetry variables of the aircraft. Our prototype has also been fitted with several strategically placed cameras that will also feed in real-time images to the team in the truck. Now, getting to slide 9, we can see the latest addition to our component suppliers list, which we will start using with the first five or six conforming prototypes. So far, in 2024, we announced several suppliers, APCC to provide the control surface and open air, Acituri for the wings, Cruze for the pilot control inspector or joystick, as we call it sometimes, And we also have signed with Thales for the sensors, Honeywell for the guidance and navigation, and lastly, Recaro IRO for the seats. In the first quarter of 2024, we added KAI for the pylons to this list. And now we have added QRD for the polycarbonate windows, Lattico Air for the doors, RALC and ALTEC for the fuselage components. With this addition, we have completed the selection of our primary component suppliers. We have been using a best-of-breed approach to bring suppliers with experience in aviation and certification. Importantly, they will also support us in the certification campaign and throughout the EV toll lifecycle. Lastly, these contracts have a defined price and quantity schedule with a scale function with a reduction in unit prices as we reach higher EV toll volumes of production. This will provide economies of scale as we increase our output. We still have a few suppliers to select, but these are the non-critical for the aircraft performance, whether they are off-the-shelf components, such as the ELT or the PHF, or optional like the skids or landing gears, lights, and so forth. And when I look at this list, I'm very confident on the high level of safety, certification, and performance of our EV talk. Now, on slide 10, our total pre-order backlog stands at 2,900 aircraft for a value of a total $14.5 billion based on the list price. These are non-binding letters of intent from 30 different customers spread over 13 countries and different businesses, from the mainline to regional airline, to helicopter operators, ride-sharing platform, and leasing companies. We also have LOIs for Vector, our UTM software from 16 different customers and believe that this reflects the market leading value proposition we bring to our customers. Beyond that, we are developing a strong network of partners in areas such as infrastructure and energy to address one of the many challenges ahead of urban air mobility, which is to create a whole new ecosystem besides simply developing an aircraft. And because aircraft don't fly without proper maintenance and support, we are highly focused on providing the best-in-class services to eVTOL's operators. We have also secured contracts with 12 different customers for the maintenance, repair, and overhaul, what we call also the MRO. That could bring up to $1.2 billion in revenue for EVE over the first five years of operations. Now, I would like to invite our CFO, Edu, to go over our financials along with the milestone checklist.