Eve Holding Inc Q1 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Savi Syth - Raymond James - Analyst : As you kind of work through the supplier selection here, I was wondering if you're able to share any early indications on how some of these agreements might be structured in terms of guaranteed supply or escalators or just any early indications as you've had these conversations?

Question: Savi Syth - Raymond James - Analyst : That that makes sense and helpful. If I might along those lines just any kind of early thoughts on how many of the full-scale prototypes you plan on building in '23 and '24. And just curious, I'm guessing there's going to be some nonrecurring engineering costs related to that. I'm guessing that's probably picks up in the second half and then kind of maybe build into '24, but any color on that will be appreciated.

Question: Savi Syth - Raymond James - Analyst : Makes sense. All right. Thank you.

Question: Cai von Rumohr - Cowen and Company - Analyst : So, Gerry, as you know, Billy Nolan of the FAA is about to retire and sometimes it takes a while to get another administrator into the seat. And while you're basically going to certify first with ANAC, what impact do you think that might have in terms of coordination with the FAA?

Question: Cai von Rumohr - Cowen and Company - Analyst : Got it. And, excuse me, last one. What still has to be defined in terms of operating requirements? I know that the FAA basically is, I think, it's getting closer in terms of what they're going to require for type cert. But what for operating one of the key issues that you think they still have to define to kind of get the operating requirements set?

Question: Sheila Kahyaoglu - Jefferies - Analyst : Thank you, and good morning, everyone. So just on the supplier point as you guys are picking your suppliers, can you give us sort of an update on your prototype build later this year? Have there been findings from wind tunnel or truck mount testing? How is the design progressing as we think about first flight in 2024?

Question: Sheila Kahyaoglu - Jefferies - Analyst : And then how are you working with your suppliers in terms of just the development funding. Is that some of your cash usage and how does those agreements work out?

Question: Sheila Kahyaoglu - Jefferies - Analyst : Okay. Great. Thank you so much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 09, 2023 / 12:00PM, EVEX.N - Q1 2023 Eve Holding Inc Earnings Call

Question: Sheila Kahyaoglu - Jefferies - Analyst : Great. Thank you, guys.

Question: Andres Sheppard - Cantor Fitzgerald - Analyst : A lot of our questions have been answered, but maybe a quick question on the backlog. I recall from the cabin mockup event that a lot of the emphasis this year was going to be placed on converting that order pipeline of the 2,770 LOIs into firm orders. So I'm just wondering maybe you can comment on that? Any progress there? When do you anticipate maybe making some announcements there? Just wanted to maybe better understand what that timeline might look like. Thank you.

Question: Andres Sheppard - Cantor Fitzgerald - Analyst : Maybe one last question for Edu. I know this was covered previously, but just help me better understand. So the cash spent for the quarter was below $20 million. And you're reaffirming $130 million, $150 million, so just again, sorry, I know this was covered before, but just help me to better understand that higher cash spend in the later quarters, what is the primary reason for that? Thanks.

Question: Andres Sheppard - Cantor Fitzgerald - Analyst : Got it. Okay. Thanks very much everyone. Congrats again on the quarter and I'll pass it on. Thank you.

Question: Savi Syth - Raymond James - Analyst : Hey, thanks for the follow-up. Just actually few. First, just following up on Andres' question, I realized that you have good ideas on partners and needs and things like that. When do you think some of those would be formalized and maybe announced in conjunction with your certification? Is that more like a second half 2024 timing or just curious as to when some of those get more finalized. I'm guessing you had to wait till some of your specs are finalized with the prototype. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 09, 2023 / 12:00PM, EVEX.N - Q1 2023 Eve Holding Inc Earnings Call

Question: Savi Syth - Raymond James - Analyst : Makes sense. That was actually a super helpful answer. I was curious more on the first cities and the launch partners. When is -- but this is super helpful as well.

Question: Savi Syth - Raymond James - Analyst : Okay. Interesting. And then just one last question, I was curious regarding the urban ATM solution. The evolution of FAA's initial blueprint for air taxi operations, how does that compare to your expectations on the timing and need for that urban ATM solution that you're providing?

Question: Savi Syth - Raymond James - Analyst : Makes sense. Thank you very much.

Question: Marcelo Motta - J.P. Morgan - Analyst : I have a couple of follow-ups in a sense, I mean, first if there is anything that you guys would like to comment about sales campaign. I mean, I know that the focus is more on getting the prototype up and running and also like the supplies, but just wondering if there is a possibility of seeing new orders or new partners maybe on the supply and selection that would come up to be added to the backlog. And the second question is regarding liquidity. I mean, as I do mention, the company, you have very comfortable position until 2025, there is BNDES standby line, but just wondering if you guys have been looking for maybe another source of cheap funding, funds related to renewables, to EV, so if we could expect you guys continue to add more standby lines just to take advantage of the ramp-up of the company. Thank you.

Question: Marcelo Motta - J.P. Morgan - Analyst : Perfect. Super clear. Thank you very much.

Question: Marvin Fong - BTIG - Analyst : Thank you. All of my questions were answered, actually. Thank you.