Eve Holding, Inc.

Good day and welcome to the Eve Holding Inc. Fourth Quarter 2024 Earnings Conference 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 presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. 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 Alderworth, head of IR. Please go ahead.

Thank you, operator. Good morning, everyone. This is Lucio Alderworth, the director of investor relations at EASE, and I wanted to welcome everyone to our fourth quarter 2024 earnings conference call. Our CEO, Johan Borde, and CFO, Eduardo Bocoto, are joining me on the call today. And after their prepared remarks, we will open the call for questions, at which point, with Valentin, our Chief Technical Officer, will also join us for more technical questions. We have a deck with a few slides and additional pictures 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.easairmobility.com. So please feel free to download 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 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, anticipate, intends, expects, and similar words are intended to identify forward-looking statements. When they take no obligation to update publicly or revise any forward-looking 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 to all, and thank you for joining the call today. We had a very eventful year 2024. We continue a steady progress in the development of our EV toll and have reached important milestones. I would like to highlight today a few of those most important achievements that we had last year. The first one, early in the year, we presented Vector, our air traffic management solution, and we run the five-day simulation in Sao Paulo with a very positive feedback from our partner and customer, Revo. This exercise followed simulation we already had made in Rio de Janeiro and London to help us validate and fine-tune the software for the customers to eventually allow increased air traffic density and keep higher safety standard for the UAM globally. Last year also, late, we launched the EVE Take Care, a fully integrated app-to-market service portfolio that will include technical support, maintenance activities, parts and battery solutions, flat operation support, as well as pilot and mechanic training in partnership with the Embraer CAE Training Services, commonly called ECTS. We have raised $270 million of fresh capital and mix of credit and equity instruments. This allows the company to have a solid liquidity position to continue funding our general expenses, research and development efforts, as well as our necessary investment in our first eVTOL manufacturing facility in Tabate, Brazil. Another important milestone was the publishing of the basis of certification by ANAC, the Brazilian Civil Aviation Agency, which establishes the standard eVTOL to fly commercials. The basis of certification establishes the first set of airworthiness criteria for EV tolls in Brazil and follows each application for TAP certification back in 2022. This is obviously a critical milestone in the project. We are now focused on defining with ANAD the means of compliance. These are specific tests, analysis, and simulation that need to be successfully performed for the TAP certification to be eventually granted. These tests are performed to prove the aircraft design and that it meets the safety standards laid out in the basis of certification. And lastly, we completed the assembly of our prototype and rolled it out of the hangar for the first time in early July 24, followed by a series of ground tests before its first flight. As a reminder, it is a full-scale engineering prototype with no cabin or cockpit. It is 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 in previous subscale and computer models. It also has an important contribution for the setup of several rigs we are using for different individual components. We have installed the batteries and already performed several tests. We will cover this later on this call. And we're now putting up for the fly campaign. We will initially perform hover flights side up to the ground and gradually increase the 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 originally, and only then we will move to the full transition flights. Now, for the next slide, I think it's a good summary of what I've just been mentioning so far. And it shows, you know, how we met all the milestones that we committed last year, thanks to the great dedication of all ETH, Embraer, and our partners and employees. At the end of this presentation, Edu will go through the new 2025 ambitious milestones, and we're already working hard to meet all of them also. Going to the next slide now, I would like to highlight some of the tests that we have performed with our engineering prototypes. We announced last year the first step of the pusher, a motor after installation. We published a video with a full test, so you can find it and watch it online, where our engineering not only tested successfully the dedicated radio link between the command and control truck and the vehicle, but also the proper installation of the inverters and several performance-related metrics of the motors, including thrust, vibration, sound, and energy consumption. In parallel, we're also testing the lifter motors separately in dynamometers to make sure that we deliver the expected performance before its installation. We also concluded and conducted another set of wind tests and wind tunnel tests in the Netherlands to validate the aerodynamic load and noise level for the lifters turned on. We expect to fly our full-scale engineering prototype for the first time by mid-2025. On the certification front, we continue to be highly engaged with certification agencies, and we are keeping a good and constant dialogue with ENAC in Brazil to define the certification plan. At the same time, we receive a team of specialists from the FAA in our offices in Santos de Descampos in Brazil, and we met representatives from Japan J-CAB in Tokyo. Now, on the next few slides, I'm going to illustrate what I just talked about. You can see images of our pusher test where we have the five blades propeller spinning on the slide six. This assured our engineer that all equipment was properly installed and that the radio link with the command and control truck gives our team the instant control of the aircraft with no delay in the signal. On the slide seven, it shows our team meeting regularly with ANAC and FAA. And lastly, slide eight shows the picture of our latest wind tunnel test. This is a representative subscale model. But here, you can also see the propeller spinning in the picture, right, to give more accurate readings as the aerodynamic forces that would be present on the aircraft during all phases of the flight, including also the important transition between takeoff, landing, and cruising. Moving to slide nine. Our total pre-order backlog stands at approximately 2,800 aircraft for a total value close to $14 billion based on the list price. There are non-binding letters of intent from 28 different customers spread all over nine countries and different businesses from the mainline to regional airline, helicopter operators, ride-sharing platform, and also within companies. And because demand and support guarantees the proper aircraft operation, we are highly focused on providing the best-in-class services and support to eVTOL operators. Therefore, we have also secured contracts with 14 different customers for our EVE Take Care suite of up-to-market products, which could bring up to $1.6 billion in revenues to EVE over the first few years of operation. Importantly, these tech care customers have placed LOI for covering around 1,100 aircraft, which is about 40% of the pre-order book. As you can see, we also have 21 different customers for our air traffic management solution we call Vector, and I believe this reflects the market-leading value proposition that we bring to our customers. Beyond that, together with our customers and authorities, we're also developing a strong network of partners in different areas such as the infrastructure and energy to address one of the many challenges ahead of the urban air mobility, which is to create a whole new ecosystem besides simply the development of an aircraft. So now I would like to invite our CFO, Edu, to go over our financials along with the milestone checklist for 2025.