Eve Holding Inc Q3 2022 Earnings Call Transcript

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

Question: Savi Syth - Raymond James & Associates, Inc. - Analyst : Hey, good morning, everyone. If I might ask, you mentioned the $100 million and $150 million cash burn annually. Could you just talk a little bit about 2023 and if that's going to lower or upper end of that? And maybe some of the major milestones expected in 2023?

Question: Savi Syth - Raymond James & Associates, Inc. - Analyst : That makes sense. Appreciate that. Thanks, Stein. And then on the production facility, when do you expect to select the sites and then start building that facility relative to the other timelines? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 23, 2022 / 2:00PM, EVEX.N - Q3 2022 Eve Holding Inc Earnings Call

Question: Savi Syth - Raymond James & Associates, Inc. - Analyst : That all makes sense. Thank you very much.

Question: Ellen Page - Jefferies LLC. - Analyst : Hi, guys. Thanks for the question. Just on the Chicago ConOps, how did the results of your evaluation and the assessment of 240 aircraft in the city compared to your prior expectations and your 10 assumptions that you've put out in the past? And can you discuss the differences between the Chicago ConOps and the previous one you did in Rio?

Question: Ellen Page - Jefferies LLC. - Analyst : That's helpful. Thank you. And can you discuss a little bit your LOI with Bluenest for the UATM? What's the key opportunity there?

Question: Ellen Page - Jefferies LLC. - Analyst : Yeah. For Bluenest.

Question: Ellen Page - Jefferies LLC. - Analyst : Very helpful. Thanks for the color. I'll hop back in the queue.

Question: David Zazula - Barclays Capital Inc. - Analyst : Thanks for taking my question and thanks again for presenting at our conference last month. If I could try a little bit about the United relationship. I guess, first, is the investment reflected on the 3Q balance sheet right now or is there still more to come from an initial cash perspective? Two, can you discuss -- and I think you have discussed a little bit before -- but the milestones by which you'll be evaluated to have the orders with United become more firm? And then also, with United being so significantly international, you just discuss whether they're evaluating using those aircraft internationally? Or is it just domestically for now? Thanks.

Question: David Zazula - Barclays Capital Inc. - Analyst : Okay. If I could just squeeze another one in. The R&D expense line accelerated a little bit through the year. Just discuss the pace at which you're using the Embraer engineers. And then kind of drilling a little bit into Savi's question, the expected use of those engineers here in 2023? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 23, 2022 / 2:00PM, EVEX.N - Q3 2022 Eve Holding Inc Earnings Call

Question: David Zazula - Barclays Capital Inc. - Analyst : Thanks very much, guys. Have a happy holiday.

Question: Marcelo Motta - JPMorgan Securities LLC - Analyst : Hi, everyone. Thank you very much for taking my questions. Two quick questions: the first, regarding these $100 million to $150 million in cash burn for the coming year. When we look at this approval permitting of the facility in Brazil, what percentage or what amount of the $100 million, $150 million is related to that? If you guys can open that. And the second question is regarding the commercial campaigns. We continue to see a lot of good news on that front. The company has the largest backlog in the industry. Are there campaigns that are still going on? Do you think that the pace of new announcements or growth in backlog could stabilize a little bit now until we see more milestones on certification? Those are the two questions. Thank you.

Question: Marcelo Motta - JPMorgan Securities LLC - Analyst : Perfect. Thank you very much.

Question: Marvin Fong - BTIG LLC - Analyst : Good morning. Thanks for taking my questions and congratulations on all the progress the past few quarters. So a couple of questions for me. Just at a high level, I suppose. Domestically with the FAA, I think we have seen some updates and changes to their certification process for eVTOLs. Just curious if you could maybe comment on ANAC and how do your discussions with them have been going. Are they being more consistent with their view on how to certify? And if you could also just maybe touch on the development milestones or the sort of certification milestones that you are kind of expecting for 2023? Do you expect to get your G1 paper in 2023? Any update or outlook that you could provide would be great.

Question: Marvin Fong - BTIG LLC - Analyst : Terrific. Thank you for that update. Just one other quick question, if I may, just the update. I understand it sounds like most of your incremental cash burn is going to be on development and R&D. So should we just put a finer point on the modeling? So the SG&A line should -- just almost $7 million is probably a good run rate going forward and we should just talk about the additional expenses being R&D related?

Question: Marvin Fong - BTIG LLC - Analyst : Got it. Okay, great. Thanks, everyone, and happy holidays.