Eve Holding, Inc.

Good day, and welcome to the EVE Air Mobility Third Quarter 2024 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing star, then zero. After today's presentation, 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 would 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 third quarter 2024 earnings conference call. Our CEO, Johan Bourdais, and CFO, Eduardo Bocco, for joining me on the call today. And after their prepared remarks, we will open the call for questions, at which point Luis Valentini, our Chief Technical Officer, will also join us for more technical questions. We'll have a deck with a few slides and additional features that show our achievements in the quarter, as well as the testing phase of our full-scale prototype. The deck is on our site at ir.inairmobility.com, so please feel free to download it and follow along. Let me just start by saying 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, generic 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 and where they take no obligation to update publicly or revise any forward-looking statements because of new information, future events, or other factors. With that, Future events and circumstances discussed in this presentation may not occur, and actual results could differ substantially from those anticipated in our follow-up looking statements. With that, I'll now turn the presentation over to Johan, our CEO. Johan?

Thanks, Lucio. Good morning, everyone, and thank you for joining the call today. We had an eventful third quarter. We continue to advance the development of our program and reach important milestones. As a reminder, we completed the assembly of the prototype and rolled it out of the hangar for the first time back in July this year. And we have started to test the vehicle ever since. This is a full-scale engineering prototype with no cabin and cockpit. It's made of composite material that will be piloted remotely in the command and control truck. This prototype will be used to validate and improve the accuracy of previous subscale and computer models, and also will serve to build on the several rigs that we have for different individual components. We have installed the batteries and already performed various tests, which we'll be talking about later on in this presentation, and we're now prepping up for the prototype to start the flight campaigns. We expect to start receiving the lift motors by next month in December, so the flight test can start early next year. We will initially perform hover flights tied up to the ground and gradually increase power and height. Then we'll 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 flight. Another important milestone was publishing of the base of certification by ANAC, Brazil Civil Aviation Agency, which establishes the standards EBITO requirements we will have to respect in order to fly commercially. In parallel, the FAA published the SFAR in the United States, which we view as supportive to the industry. And because we're working closely with both flying agencies, we continue working on the constructive path to certification. Now, on the services side, we launched the Eve Take Care, which is a fully integrated portfolio that includes all services for maintenance, logistics of spare parts, flight hour program to pilot and mechanics training, and the customer support. Last but not least, we conducted the successful five-day simulation of Vector, our air traffic coordination software in Sao Paulo. with a very positive feedback from REVO, our partner and customer. REVO also indicated interest in the use of Vector Flight Operations for both the EV tolls, but also their fleet of helicopters. Now, on to the next slide, we are advancing with several tests in our engineering prototype. These are listed here. We completed the battery installation, and because of our prototype has removable carbon fiber panels, this is an easy process. The panels are easily detachable to give engineering access to whatever part needed for the maintenance or any services. And of course, the panels then can be easily readjusted, reinstalled. So with the battery on, we conducted high and low voltages tests to make sure that there is no leakage in the system. We also executed successfully the thermal runaway containment test in our energy pact, and the goal here was to demonstrate the containment of a thermal turn-away event. As I mentioned before, we expect to receive the lifter motors in December. They are currently being assembled and tested. We include the motors themselves and the electronics components that will control each other's motors thrushed. Moreover, we're conducting auxiliary load test in the tool boom section with different blade configuration and different shapes to maximize the performance equation. That is the thrust versus the energy consumption and vibration and also the noise emission. We have also integrated the multiple system of the eVTOL to make sure that they all operate among each other smoothly. And lastly, we integrated also the command and control truck to the aircraft. The truck will house the pilots and the team of engineers who will measure and monitor several operating metrics during the flight. The truck is designed to track the EV tolls during the test flight and is equipped with several sensors and cameras strategically placed throughout the fuselage for real-time flight performance data, full of visuals and diagnostics. The goal is to guarantee that all systems are working perfectly among each other. On the following slide, it shows some cameras that we just talked about and also the outside view of the truck. I believe on our earning calls, which we published this morning, we're also showing the interior of the truck. Now, moving to the next slide, we're glad to see the certification environment is taking shape as well. The Brazilian Civil Aviation Authority, ANAC, just published the basis of certification for eVTOL in the country. This is an important milestone for the eVTOL industry, and this will allow us to progress towards the ANAC TAP certification and seek validation with the FAA in the U.S. In parallel, the FAA issued a special federal air regulation, the SBAR, that details the final rules of advanced air mobility and covers also the eVTOL. In general, we view that this announcement are supportive of the industry, and we're still analyzing the 880 pages technical document to evaluate the impact on our aircraft development and also operations. In that basis of certification establishes the first set of air wilderness for eVTOL in Brazil and follows EVE's application for TC back in 2022. It is a standard process for developing a new certification basis and an important milestone in the project. EVE has progressed in eVTOL development so far in 2024, the publication of certification basis by the Brazilian Aviation Authority in October as an important milestone to establish the essential guidelines for the RAVTOL certification activities in the coming years. EVE can now advance the definition of the means of compliance by the Brazilian authorities and validation strategy with the FAA that will guide further detailing the vehicle and the flight test campaign. Our current path to certification includes the first flight of our engineering prototype in early 2025. followed by several flight tests for knowledge gains and initiate the assembly of our conforming vehicles next year. With the first conforming prototypes ready, we expect to start our final development and certification flight test campaign in 2026, which will normally take 12 to 18 months to be completed, leading to an expected top certificate issuance in 2027. We believe that this is a realistic and achievable timeline based on our experience from previous programs. Now, moving to the next slide, we show here some of the highlights of our recent announcement on the customer services part of the business. We especially announced e-take care, an all-inclusive portfolio of services and support to our customers to aim to increase the e-vital availability and also reduce operating costs. TechCare includes services such as health monitoring to run productive maintenance and schedule EV toll downtime and maintenance schedule, which will allow to optimize the inventory management of components. The system integrates operators, suppliers, and also services centers for an easy-use interface. We are also going to offer an advanced training for pilots, maintenance, crew, and also ground handling personnel, It will be powered by the JV, the joint venture between Embraer and CA Training Services called ECTS. This is a longstanding and successful partnership with excellence in training for global operations since 2007. I believe the tech here in Vector showcases our holistic view of the UAM market since the beginning and how it adds values to our customers today. as the industry scales. And I have no doubt that this is one of the EAP's most distinguished differentiators. We look at UAM as a complete way. On the next slide were some additional details of our latest vector simulation in Sao Paulo. We run a five-day real-life exercise in one of the busiest helicopter market in the world with our partner and customer Revo. We use the vector to shadow and monitor the total of 45 Helicopters fly. That carries 100 paying passengers, and that averages 8 to 10 minutes. This is precisely the U.N. market that we're targeting. The exercise included operations in various scenarios, including delays on departure or on destination, airspace weather constraint, the in-flight deviation to alternate landing location, and more. And the goal was to validate the algorithm and protocols that are necessary for the eVTOL to conduct the safe and reliable operations in high utilization use case. This is the second exercise that we're doing. The first one was in UK about a year ago. Now onto the slide 10. Our traditional total pre-order backlog visibility, where we stand now with approximately 2,900 aircraft for the total value of $14.4 billion based on the list price. These are the non-Biden's letters of intent for 30 different customers spread over 13 countries and different businesses. We also have LOIs for a factor from 16 customers and secure contracts with 15 different customers for our tech care suite of aftermarket product and services. This could bring up to $1.6 billion in revenues to Eve over the first few years of operation. Now I'd like to invite our CFO, Edu, to go over our financial along with the milestone checklist.