Eve Holding, Inc.

Good day, and welcome to the Eve Holding Inc. first quarter 2025 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, and to withdraw your question, please press star then two. Please note, today's 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 first quarter 2025 earnings conference call. Our CEO, Johan Bourdais, and CFO, Eduardo de Couto, are joining me on the call today. And after their prepared remarks, we're going to open the call for questions, at which point, Ruth Valentini, our Chief Technology 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 quadrant, as well as the testing phase of our full-scale prototype. The deck is on our website at ir.evairmobility.com, so please feel free to download it and follow along. Let me first mention that today's conference call includes 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 forward-looking statements are based on current expectations and involve risks and uncertainties that could cause financial results to differ substantially from those expressed or implied in this conference call. And we undertake no obligations to update publicly or revise any forward-looking statement because of new information, future events, or other factors. For more details of these risks and uncertainties, please refer to our SEC filings available in our website. With that, I will now turn the presentation over to our CEO, Johan.

Thanks, Lucio. Good morning to all, and welcome to our first quarter 2025 conference call. We continue to move at a steady pace in the development of our eVTOL, and we have reached important milestones in the quarter. I would like to highlight today a few of those most important recent achievements, starting with slide two. We continue to perform several ground tests in our full-scale prototype and prepare it for its debut flight. As a reminder, this is a full-scale engineering prototype with no cabin or cockpit. It is made of a composite material that will be piloted remotely in our remote pilot station, what we call the RPS. This prototype will be used to validate and improve the accuracy of previous subscale and computer models. It is also an important contribution for the setup of several rigs we are using for different individual components. Early this year, we tested the pusher motor after having installed it in the aft section of the full-scale prototype. We published a video of the test, and that is online for everyone to see and enjoy. As a reminder, we had already tested the motor in the lab environment in a pedometer to make sure it delivered the expected performance, and the tests after installation were important to make sure that the real-life performance was consistent with lab performance and also that the inverters were properly installed. We are now following the same protocol with the lifter motors, testing them in the dynamometers before installing them in their respective nacelles in the prototype. With that, we are confident that we will begin flying our prototypes until this year. We will initially perform harder flights and gradually increase power and the height. then we'll move to partial transition this is when we engage the pusher without fully disengaging the lifters to continue controlling the aircraft vertically and only then we will move to a full transition flight at the same time we continue to make important advancements with the rigs and what we call the island bird this is uh this constructed eVTOL, in which we integrate all the different components of an eVTOL into a physical system to make sure that all systems work together properly. We will get into this in a moment. In parallel, we are highly engaged with our suppliers who are already producing parts for the first of the series of five conforming prototypes we will have for the certification campaign. And lastly, we have already prepared the assembly line in our site of Embraer, San Jose Des Campos, or Xerox Hilda plant for our conforming vehicle. Now slide three lists some of the successful tests that we have performed in the aircraft this quarter. This is to make sure that it is airworthy. Not only we need to make sure that a dedicated radio link between the eVTOL and the RPS has no latency and no interrupted, to prevent the loss of control, but also we need to test how well our cabling system insulates the aircraft from the external electromagnetic interference. We also measure how well the eVTOL structure holds in the vibration test to simulate some turbulence, but more importantly, the structure integrity of our holding adverse conditions. And lastly, we also make sure that the all navigated related equipment such as the GPS and also altimeter are properly calibrated. Now, the next few slides offer a good summary of what we're testing, what we have tested, and also accomplished so far this quarter. Slide four shows the LFTR test in the dynamometer. As you can imagine, we need to perform several tests with each of the eight motors to make sure they deliver, at least in the lab setting, their intended thrust to support the aircraft in the takeoff and landing phase of the flight, remembering that this is the same protocol we use with a push air motor, which means that we're getting close to flying. Slide four shows some of the parts of the Ironbird. Here on the left, you see a picture of the Ironbird simulator. This is the interface through which the pilot will control the entire system. As you can see, the simulator has approximately a 270 degrees view, and it is connected with all the different rigs of the flight-critical components. For instance, the Inceptor is connected to actuators and motors, and they react physically to all pilot commands. This, in turn, are connected to the flight computer with our fly-by-wire system and avionics. The motors are connected to the battery. with its own thermal management system. A curious fact is that all wires and cable replicate the composition, the width, and the length of the actual harness that we will have on the eVTOL. This assures a realistic simulation as much as possible. So not only the AvonBird helps us to better integrate and understand all the system and how they all work together, and also help us troubleshoot the potential problems on the ground. But it also, on top of this, is important for the aftermarket benefit. The Ironbird helps us to understand the material and the component fatigue, and these are important input for the efficient maintenance program and also for the reliability of the aircraft. Another important fact is that the Ironbird helps us expedite and reduce costs related to certification campaign. Keep in mind that some of this test can be performed on the ground, such as the electrical system, circuit breakers, and the iron bird becomes a very valuable tool. The next slides show how the advancement that we have made on the digital and computer system to reduce development time and cost. Slide six, it shows a different flight simulator that is used to validate the control law for the fly-by-wire system and was extensively used to develop the flight control. It is also an important tool to develop the ergonomics for the pilot and window positioning to maximize the visibility. Slide seven shows the digital rendering of the structure of the cockpit with all its systems, structural support, and the wiring, remembering that this is an aircraft with a pilot plus four passengers and a luggage compartment, and it is not only designed to be efficient to operate, but to maintain as well. With that in mind, components are placed at a strategic place and easy access to facilitate any maintenance service. Now, the next couple of slides show the level of engagement with our suppliers. We regularly meet them and visit their sites, but in the last couple of months, there was a very noticeable upstick in the activity. As you can see in slide eight and also the slide nine, we already have some of the components ready to go for the first of our series of certification-compliant aircraft. As you can see, the nose of the fuselage, we have the lightning system, actuators, seats, and windshield have already been produced. You can also see some of their tooling to manufacture these components, such as the negative for the carbon fiber structural parts and the autoclave that is used to cure these components and increase its resistance and durability. Again, this increases our confidence level that we will be able to meet our ambitious targets in starting the assembly of the first of these conforming prototypes in the second half of 2025 and initiate the slide portion of the certification campaign early next year. And lastly, on slide 10, we can see the site where we will assemble this conforming prototype. To avoid any confusion, this is not our site in Tabaté, where we will be manufacturing the commercial aircraft. This site is inside of the Embraer main facility in San José de los Campos and will be used exclusively to assemble the conforming prototype for the certification campaign. We plan on deploying five eVTOLs for the certification campaign with an option for maybe a sixth aircraft if needed. Needless to say that this site is strategically important for us because of proximity to Embraer Engineering, which we think will be critical for the learning curve in the assembly process of these aircraft. The site is ready to be used and we will now start installing the equipment and the tooling to manufacture our eVTOLs. And as a reminder, these conforming prototypes will be closed to the commercial version of eVTOL as much as possible. And they will have all the systems, subsystems, and the redundancy that are necessary for certification for the commercial operation. In the end, advancement in these pre-production aircraft means a leap when we're ready to go for the entry service. And my last slide, which is the slide 11, it's our total pre-order backlog, which stands unchanged as approximately 2,800 aircraft. for a total value close to $14 billion based on the list price. These are non-binding letters of intent from 28 different customers spread over nine countries and different businesses, from airliners to the original airliners, helicopter operators, ride-sharing platform, and leasing companies. And because maintenance and support guarantees a proper aircraft operation, we are highly focused on providing the best-in-class services and support to eVTOL's 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 revenue to EVE over the first few years of operation. Importantly, EVE Take Care's customers have placed LOI services for around 1,100 aircraft, which is about 40% of our pre-order book. As you can see, we also have 21 different customers for our air traffic management system 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 sector. to address one of the main challenges ahead of the urban air mobility, which is to create a whole new ecosystem besides simply developing an aircraft. Now, I would like to invite our CFO, Edu, to go over our financials along with a checklist for our 2025 milestones.