Arrival (ARVLF) 9 Nov 212021 Q3 Earnings call transcript

Hello, everyone and welcome to Arrival’s Third Quarter 2021 Earnings Webinar. My name is Kelsey and I will be your operator today.

Now, before I hand the webinar over to the Arrival team, I would like to go over just a few housekeeping notes for the program.

As a reminder, this webinar is being recorded. After the speakers’ remarks, there will be a question-and-answer session. you attendance thank We Instructions] for today. your [Operator the to Mitesh now, I Investor over turn will Arrival. And Soni, webinar Relations for to you. over Mitesh,

Quarter CEO; Investor and Relations. Thank for with of me name joining Automotive; for Denis And President; Mitesh XXXX Sverdlov Mike is Third CEO Arrival’s is of you CFO. My Rugoobur, Financial John VP us Soni, Wozniak, today Results. Avinash all Arrival’s today Abelson,

are made I’d uncertainties begin, everyone to statements. on subject this are like today current and expectations and statements we Before based beliefs, that to call currently information on us. remind the available forward-looking our risks statements These our certain various and to assumptions reflect

reflect these we these release this differ to more quarter Although after SEC results earnings no to detail factors cause we on call. Descriptions our reasonable, are materially and of filings in expectations in other actual believe statements that the issued could changes X. November risks with these from are discussed that third today our forward-looking occur statements undertake to and obligation revise any

During in the not to refer call, IFRS our a financial certain isolation results. as in for from addition substitute or and be should we measures. These non-IFRS also considered to

please For I With that will Relations to in refer further website information, mind, Denis. to turn Investor our at investors.arrival.com. it over

joining today. everyone us Thank for you, to and Mitesh thanks

like to business. technology is opportunity platform a to It It to this mission I replace use on a are would remind vehicles business. is We automotive is everyone our to an not unique. Arrival electric.

strong that materials, components, robotics competitive technologies, microfactories have We enabling invested advantages us. for in provide software and

we These before automotive what have our we that expect change technologies technologies microfactories in coming see. things doing together industry. are the and powerful first and our fundamentals are been like will never done of transformative We

Bus is which And company. an product. First share a milestone I it can for completed, validation been is be has for remarkable to used Our important the

world, developed exterior the it happy to bus where unchanged. firsthand. van around where is this are level, events today. our van the of car number a The production is experience able to customers are the share Startup and And hosted the for have We to we were well. progressing

large five and emerging for developing car. them our vehicle vehicle But achieve currently bus with want tens platforms, of replace mission all van, platforms are to produce van, of to bus, microfactories. We and markets, electric, we in hundreds create vehicles to

more We a conservative have ‘XX revised our expectations with view.

our access is tens deploy And for significant and by It well that our capital we of in the long-term However, this number believe I for microfactories withdraw be the be defined we forecast. positioned of we the by microfactories have number the or to. defined we microfactories very the size am business confident hundreds. of growth We are will primarily reason, several years. next of could

We over have that a and of have President strong and Arrival. sense Avinash, hand over now to With employees X,XXX who purpose. let values me share overview, mission of Arrival

also been teams launch towards ramped have we vital business as in production. Alongside been executing product our our tirelessly QX, and In this, our microfactory Denis. Thanks, first other dates. of have areas we the working have

as technologies large platform the invest and van timing launch into to further van. the decided our As our have and of our and fourth to we market but to to XXXX in our the microfactory is we the we message forecast. will changes update main of bus launch, started on for Mike progress production John the go wanted adjust to our well details, as

customers weighted to LOIs our this current added program stage. continue orders of and van Our LOIs have be our These XX,XXX to reached a number vehicles. at non-binding And toward we pipeline. high-quality

public bus typically As sales road trials. communicated, require previously

next year. early of start first these Our will

launch. ambient am new And screens bus. for We continue and pleased a look we our give out you to to wraparound build today inside vans the first own as I From prepare brings experience and at buses and a the and believe new of seating We of passengers. whole level use a Bus the operators lighting, to the to reconfigurable drivers, ease maintenance of Arrival name the to few.

bus, Our products connected point truly very method use and in-house the feedback We our composite competitive to-date developed price at our car for positive. has been and to cloud van panels, material body believe and the Arrival’s for components, ecosystem. all same a customers creates through the back-end compelling

first first these were Arrival the is to our of the several in trials the buses with a And for pick provided in by next also end early few, used progressing on-road Car vans we to this be look a UK You see deliveries highlights UPS prototype quarter, year. with expected will today There green are the giving XXX but at by well. we most companies Expo, dozen for green the Minister prominent logistics and together where the the official the the as decision-makers. is one bringing at supported of We were technologies. Investment was summit world’s Dubai pioneering UK The chosen by UPS Family, of of the hosted members Summit in selected partner. London, Prime our Royal Global year.

platform our the Service in-house vehicles and program to buses. technicians uses algorithms data enable and providers to Network vans We using certifies Arrival electric and service digital to service maintain vehicles. our and trains our which The proprietary from repair announced service also platform, existing service Arrival’s

our the announced signed ways which organizations serve Arrival the partners large our program. recently have to initiatives highlight captured in maintain and We These has up the companies U.S. the of and in world. to and have vehicles around who repair through attention X global Europe,

proposition. up the to ramping only everyone and been This a received chance U.S. our for also was whole unique vehicles very us well in gave the tour the have and Europe is in global remind van to customer new industry. our showcase of a the base. hosted with and customer value Arrival’s and that company Arrival a I sales method want efforts We

at products all We currently say see sustainable, components, I ESG materials, by part And technologies, that net-zero a pioneer we a that these as leading position to the platforms, core. Paris creating enabling the in microfactories, XXXX, equitable. early. am transition this at the announced which emission, as here achieve of by XX joining to am software to are developing in technologies products. and goals robotics desirable, COPXX to QX from on zero our and the Agreement more more focused of is years are reach EV call, our space, EVs more proud I pledge our engagement of and Arrival We we in our globally have carbon helping utilize

do faster. into team could this even how management the As though, are we looking we

Automotive, of status. will development give Abelson Mike? now an us on our CFO Mike Arrival program Our update and microfactory

unchanged end from has these earnings in Arrival to milestones it the milestones Thanks, microfactory. when want the continue next slide we is shows by hear year. are Hill development surprise our the organization our by installing the me upcoming begun for complete of be Avinash. by the to and used end there started and the have QX the been process we Since our bus and over presented to expect quarters. microfactory, of priority we won’t as substantially substantially some equipment in be will call. complete the entire the next expect and XXXX microfactory say QX production that of year. which Bicester van QX time Robofactoring milestones in unique in the is QX van serves It for production first in three our of as as them company’s XXXX. to begin dual-purpose be program to Equipment installation production remain Rock four Bicester anyone Charlotte will started I QX facility, for Arrival’s This XXXX, it XXXX. there, Global third reiterating and to of to a started expected because in a Center

you such, van X.X Bicester Version of can think As microfactory. our as

One each X the layout, we the second microfactory of installed composites recently advantages the already and the of generation manufacturing installing of subsequent Bicester, in the At optimize our operations further third approach technology area. equipment are line to the microfactory. assembly cells of generation our have and of ability is

robots a it’s or of movements of can move vehicles used component a to the This single multiple payload to or too AMRs, vehicle now the AMR and mobile large mobile wirelessly X-ton AMR. through assembling We generation for capable robots parts that’s our microfactory. are coordinating generation be latest move that fifth heavy so too has robots, capacity used autonomous and or

this the of ongoing an represent that development, all we version. first Bicester Given only does not but know van microfactory, optimized

behind gamma great already of the The phase inside prototype exterior both to On impact we product the the final weeks. it’s completed the bus Denis bus dramatic several are of is to product few first build our a used and come buses have that Avinash of experience next side, as for have design and validation. the be bus we just bus, This that completed as will the have have it And be expected. noted, and right as the light. see number of will first we always assembly in

production is readiness expected approximately is $XX million. non-production million completed the perspective, cost incur tests cost of be as the expected such and Total to From CapEx be for this first and to European also CapEx CapEx include our certification to bus. at have durability two highlights accelerated site the equipment and Bicester Hill for We completed test our two have for and microfactories, Rock which approximately $XX first we a van for slide expect logistics.

our Bicester than to at the costs, in-house. manufacturing I logistics of van spending contributing have that a bring said, forecast. decided operational is have product our have CapEx prefer to we simultaneously for factor process, been is is internal our such the is majority first now under we microfactory. we the operations Bicester originally key As our because control And we additional this An microfactory. fact higher and of to component the logistics Since first microfactory developing higher

other improve footprint Bicester. operating future models still have at approach logistics anticipate the for factories future by processes We to different differ region. are compared optimal may efficient and We will microfactories evaluating the a Charlotte actually and and more van micro

the to will be microfactory microfactory be CapEx our the deployed. method, to of van than With Bicester. second have the microfactory its expect we and optimize total each opportunity we process further Charlotte version therefore as lower

We have battery module to also in-house. our decided assembly bring

then battery battery into assembled packs are at reminder, battery cells are battery battery all microfactory. assembled vehicles. vehicle-specific in shared our across of The that modules the a Arrival are the architecture, into As modules

production provide financials John? multiple it be our more The first manufactured to more turn detail Wozniak updates support microfactories. and to these have over our builds. battery support the high-voltage modules battery impact we how go X,XXX UK projections. already through our will than to I Today, and facility will prototype John assembly now in CFO, module will on initial in our

Thanks Mike.

of were million were the expenses million expenses non-capitalized and for compared First, before third moving the €X was €XX to compared results to in loss in €XX QX the I non-capitalized We €XX of were €XX a quarter financial will loss XXXX. of $XXX million €X million. longer administrative expenditures compared the million to third million in cover the and million million XXXX. in or quarter million of expenses and €XX to of million XXXX. for a term period R&D The expenses cash €XX for quarter ended of Capital million R&D €XX equivalents period with our of third the compared on quarter Administrative quarter of the trends. €XXX cash in approximately the quarter quarter to was of the million XXXX. third adjusted loss EBITDA The loss €XX

expect We reflecting of million the XXXX for €XXX fourth QX higher be to and be quarter headcount. modestly €XXX million XXXX EBITDA QX CapEx adjusted our for to between than and

legal to logistics additional and bring in our We make resources R&D battery our our prepayments to to have add secure and battery multiple to and lines finance in-house investments sales, and platforms to for tooling assembly through to decided supplier to improve years functions.

investments made our more us our believe areas product resilient scale. prepare launch better in we stronger first We business makes for and that these we and have for when

investments microfactory We petrochemicals. Hill, raw in in and Because our and we in are next We revised now platforms, Charlotte fourth are price increases certain including Rock investing aluminum moved XXXX: materials also more for have we microfactories our planned and microfactory to three have Bicester year. our experiencing XXXX.

capacity to ramp conservative a until produce each year year on microfactories microfactory to capacity and full continue full production are one start expecting two van expect shift planning shifts, to though are not XXXX. per at on vehicles next in as more we XX,XXX we We early reach

fourth As volumes revenue next the a quarter. be result, be modest expected to half to Revenue towards of we the and year. expect both weighted start is XXXX vehicle and second in

on quantum dependent is the growth Denis which As of XXXX, will of number the the beyond and microfactories this a of time. deploy, uncertain timing capital, and timing revenue can at is availability mentioned, which of be we function

and upon. long-term business, this our should prior the forecasts of believe nature Given financial no rapidly we changing longer be relied

will believe are on including milestones, are status We the you update we vehicle rollout, continue indicators we operational programs the which making. of key planned progress our and of the to our microfactory key

We future range activity basis. continue which mix an consistent for From consistent XXXX volume be more LOI of XXXX expect we EBITDA we also even perspective, is quarter product. will expect the third weighted be robust cost with to a the in the annualized van, and towards this to with see CapEx adjusted on

higher We with SG&A are marginally forecasting associated finance and sales resources. cost adding

$XX required achieve we continue approximately for capture years, to in will of several total next to microfactories efficiencies additional million. microfactory the our expect and CapEx Over

continue requirements logistics OpEx microfactory. $XX and Initial operating and approximately million microfactory. our also per to OpEx for approximately at $XX expect long-term cost for the of production microfactories will We million lower assembly is

have cell capital now to to secured we with leverage volumes we the and as long-term continuously general, From conclusion. larger perspective, In expect working our procurement. to better suppliers. microfactories will as hand this logistics opportunities scale, we two will back capital proactively our a However, scale optimize I through working we improve lines over cell number our time. we de-risk to further believe call model evaluating cost significantly for Avinash are and reduce the our terms of

is our We repeat Arrival our auto of believe and is bus reconfirmed needs the you milestones look the a outstanding gave bus. Arrival change vehicle the the Arrival important John. Car, van. product market great mobility. we new our will OEM. traditional is first you showed The method van unique. a message, We fundamentals To which shared for the today, key you, And for the industry. an is a which and not Thank at

that all vehicles products them small electric. platforms relatively technology a developing us microfactories allow in multiple to create on replace are is with Arrival We local to and build resources. with mission

with of you. coming market We continue our in world as all is enormous products. we imperative transformative in to an to and market expect to new our superior products we customers the continue believe market this see the and strong months. right to are of the beginning method remarkable coming and from transition the we the growing production The we vehicle time around demand Thank at bring and commercial

We will to on now move Q&A.

Thank and Instructions] you so if Denis, much. video [Operator your And me start you ahead please? will for go

my now? shared I Can you everyone. my Hello, see Yes. screen. screen

Denis. Yes, we Thank sure can. it. you, I appreciate

Yes.

Uber the working quite to company for are the is of show are know QX the exterior of we we in exterior together and which the our – actually, So car, it’s we we because out our do time actually you car hard important with as didn’t first today. develop showing it’s

and quite vehicle this cars picture, product. than difficult higher the the actually of height happy it’s a And experience the the terms overall. passenger We different quite is we which understand And normal bus emerging of left like have sketch like much for this but to corner, rooms are actually, are actually creates we in side extremely and happy – leg about the our from of bottom totally for in markets. space

platform, that this really to develop bus our a developing Center. pleased it’s is floor we very which well. It’s And in are low product our we this R&D very high type from bus. Indian So, say a product now. derivative floor We also developing that of announced QX to like are we using started

car. this So, that’s probably picture. the big That’s a so is yes,

answer So, we to your questions. happy are

will with [Operator from We Cowen. Instructions] hear Osborne first Denis. Jeff Thank you so much,

the guys good afternoon, the as the for so evening municipalities slowdown just us much? what you not impression have? given you. market, particular will questions for opportunity around at in of bus the my some was on the of good an still needs light end. One, that the Couple I world, or participating Yes, in capital of is the sense would – bus be as of or give the you that future under well in build-out can market, capital that a situation funding the

Jeff, I demand In going We capacity fundamentally, absolutely. be terms year. think limited, not next of the we – to market, are

a just bus interest seeing We cycle in of the trials that actually going the is the you our that’s on it. remind are such to still enormous And glimpse everybody, showed just to next cell new comes we trials bus, first. to be going year, of

So will am am in we hear right about from now. are electrify occurring really, there I around right were and to not fleets COP announcements This to general. is governments need up. continue I if to the I transports public going And think the world now. transition heat at bus sure market the

do In our you terms capital of want comment? needs, to John,

have options which we continue we financing to review available Obviously, Sure. regularly. a variety of to us,

for think billions into have upfront unlike that put capital, everyone I to and us year to prioritized which it’s a immediately, the greater think dollars have traditional we OEM, flexibility, it’s capital gives seen have we ground next not as significant of of remember a this important I amount which year. in we need that you don’t

as accelerated certainly really purpose we The platforms mentioned of the production those which spending prioritize startup our we in to have year. is some platforms script. vehicle as make next on more We resilient

have So, lot look we believe a we ahead. of flexibility that as we

the tap can will would new our growth in as is and of opportunistic and markets to all think regard. we that capital will that tied that we deployment As when management is very dependent in aggressive that believe And we we our amount capital a be on be team, view the be like we – raise deploy we microfactories. of really long-term, to that to

you few to question, the like great. you the just would how asked comments, market market Actually, way also conditions are the mentioned condition. give about I

huge So we across tailwind product all there portfolio. – we demand a on strong our still see a our and have we

even that’s So, not a now. challenge right

funding like In other our could the in And obviously company terms we did have, advance optimization, batteries it’s about we every directly we the to important right. we SPV question decision payments EV as secure events way, just today John made. and automotive we volumes your when other before – some microfactory of which be any answering extremely like for some some said strategic for that opportunities,

we and the have So capital actually necessarily from be for opportunities, – lot can that. It’s public not the raised. coming for how mircrofactories different capital a of the markets

give quickly, very just $XX in-house? examples logistics of for the in What why are third-parties the bring could are you And are in doing a some million few that we things that you using for? of that each OpEx microfactory,

– build just Mike, out sorry. We I am

No, okay. no, that’s

So, Jeff…

please, yes. Yes,

please. answer You

model. To about logistics, logistic is a than a have your from of lot point, questions because microfactory we traditional the had a model different standpoint

when and so many over saw different them had Obviously, direct could don’t optimize from could about they we that we we the them microfactory we they XPLs, do as get – are method. at they we working aspects how to know control around the we automation, we are how automation know parts of presented so just friendly and go microfactory, thought with it packaging microfactory, what methods. we from looked suppliers out suppliers, how And moving even that’s if we to talk logistics receive to on microfactory we onsite that subassemblies inside better

in-house. bring and to on. So obviously The that also $XX a but covers so expenses million other of we did all expenses was packaging this variety why really around we heads, decided want

had. Thanks That’s all I Mike.

the obviously to quite are our running it’s we control reduce that, through just to because second also margins And that our to is one we – – this run of is if like, here said, add is all, want I to first is that would legislation every like first as to important we that that and the of on control the time factories. aspect risks we are want now, process Mike which company, product. external reducing we

it’s actually decision margins. better a CapEx, us, for have So more bit make better actually to but

Makes sense.

on now will with Instructions] move Filatov And we Berenberg. Michael to [Operator

Hi, guys. Can you hear me?

Yes.

question. my taking for Thanks

of opportunity on the talk detail, question and about the for maybe LOIs and timeline LOIs, of you those? and those potentially, have provided probably orders of orders quick be would non-binding the little bit revenue some Just you could but sort for sort what a maybe of

Yes.

of have we with they stage that parties they reminding So everybody LOIs are extensive for contracts are number we that where and agreements probably have non-binding, and both due. be such signed us early XX,XXX when of indicative from the pricing base just the announced years, over but It’s are LOIs out then the where many gone range terms, the have the still to-date. vehicle how them discussions a conversations typically as worth And more on laid spec the volumes type, we we pricing vehicles moved the to would and timing. also

when to to produce we at – your year. we if more earlier, into question, next look year, we essentially answer can when LOUs orders, giving we than the without So, those have look next mentioned numbers I exact convert as sold

on position transition, longer X anywhere years healthy extremely LOUs in in the span for but demand. you are orders. look typically market at and I are the as range just on mentioned we just governments, – And we of in not what’s the term I those and X terms themselves healthy needing place demand. In from timing So, a to to in the think happening companies with, earlier, the if very

going healthy early in to limited. year, in fundamentally believe grow. next terms are orders, are the right years, of I So just it’s we now, and only very really we right capacity

role out increase we is to really our as and can capacity. microfactories bring many So, as

Got Thanks. it.

question. Another quick

and are how the volumes bus that are over the you expecting And years? the am for comment your a of competitors of the market that seeing sort could sort in bid bids in sort buses. of I to compares couple pipeline sort One of we universe if next you the puts on wondering bus the of out public that side right of of universe

question. Yes, it’s a great

the just companies many RFPs seeing example, Anaheim We won contracts. we did are for have that the announced, for that the bids. out We

and to going see that. of We are more more

in organizing team Our for heavily is for customers. at work bids, trials submitting

trial first early is Our next year.

for And of shift also of the bus could that operators the fact so right one the of example, things if market. buses price and amount out well, look the which – Arrival driven you or means bus that It at the mandates say by value point coming in competitive, be it’s believe the extremely we even fundamentally government quite significant, best Bus also the because incentives, would are is lower. that now, residual its electric it’s over I the on needing time go price interesting terms diesel it’s of but RFPs the will the

And hire years. forcing the forcing it’s turnaround in I believe it’s early so more –

the the on add expect point for the COPXX a very at in better U.S. support fleets. – Avinash’s to obviously, Conference, see the sizable here build in upswing build in Just and we bus pipeline, to electronic

view that in those. As are entire the joined, the you associations far RFP both we across municipalities. Europe horizon, get on named all a U.S. as the and RFPs haven’t talking about There of when you specific pipeline

So bus to has manufacturer basically, every that information. same access

this that, team inch it’s is to And every now interest bus, I that, globe of in would van, I end also now. just mean, then our in and microfactory, covering, global. The Michael right products, our the on say is

you. it. Got Thank

question. next Wolfe with Lache the has Rod And

think I hear hear can you Hi, Can me? now. me you

Yes.

Okay, great.

or what you vans hit sounds what exit rate quite didn’t has hoping products – wanted little zero was led your can bit to of to point. more next volumes maybe just maybe from slower maybe about it absolutely – Okay, is your at ramp? there do and question frankly the the of I year? your like you any kind buses And understand the that. firstly, elaborate I expect to demand I this a it about for

creating may what which of were with document before, of I important answer, is was If the all, were we have this in that is it XXXX. the middle – referring probably the started first so we

about the learned things. And have it’s those like actually we lot a X So, process X like course, other years of and years, during ago.

But we in to So, we that’s of capital and available produce like that the much for second kind of to us the receive those the of point possible of pushing as parts do putting to procure as here. so And for focus point all process look, we on the quantity, those the and first to want like are produce time, products it. we like perfection as we important possible. operations because the the just is many as want the as starting parts part are obviously want like and – instead

everything First, kind we perfectly that. want of and after like then scale to do

So, conservative that’s more it careful, not a the a I bit say of view. to just production. reasons would more why taken would major have call we like I start I as it’s say slowdown. would approach

production, we microfactories, able expect should we future van to particularly imply capacity And still microfactories XXXX expectations I overestimate think that to XX,XXX on two at be shifts. from not full or ramp the vehicles its to impact full on periods. produce the we Once

a it Next get important that we of year, most quickly want Denis we about And getting mentioned, are that absolutely it’s to because would conservative we right. like right a is we position That’s are good the more our post-XXXX, as point in our just is here as view to deploy initial taking sure to scale. ramp, make we that we it have we so microfactories expectation can. as

are it development real take you initial Not the like of kind So, visibility run it’s have ramp. going or to on what issue successful, supplier the rate, any in issue. technical just it’s better sounds with if you

maybe XX,XXX one were that you are of rate think exit, next with at economics that. shift can so whether per changing. microfactory clarify how maybe I are exit when for just the FMs, the plant to rate the or If would be extent you are you us maybe which at like we year, you should or you thinking about about you In was be thinking hoping to your a run something – we would

of thinking the billed to you in bucket can been that comparable costs sort suppliers’ that’s $XX like Is clarify shifting the either to changing, $XX that aspect…? that, $XX it saying So aren’t logistics? would and that million to maybe OpEx, that you million your were million one that another? are your sounds are of you originally in-house, of that So, you really, or to sort the taking me the have of plan, economics you from in just

Yes.

it’s think I important.

million, our OpEx, for mentioned That’s not continues right. be You our – that’s so. to CapEx, $XX expectation

said have million. $XX I

I am Yes. sorry.

million million. published to ago, numbers expectation $XX years So, have we of our couple is was $XX OpEx which relative a

continued We to to OpEx in microfactory. expect have very the competitive

I to costs. seeing portion part, of logistics you come say potentially a And is were that will back the it thinking be large higher when are us if we that, or form component to that inventoriable of initially about we cost. think and expecting to initial outsourced were We fair in

expect we So, also reduce an will that element there see we significantly which have that time of outsourced scale. But on same basis. believe is costs would buckets. is a over moving between large do that to even thing, And we as we that the expected

is quickly. how path it lot Rod last a with that looked XPL we wasn’t on bring think as it forward. continue can in-house, how us those going of when to at we the to down I then a Whereas that work to established clear John the an one us important point study made we And to handling also model, logistics

interesting so much kind any the that products. doesn’t go just similar you is and lot – investment to And model I of leads business one sure take to about to is is I period it’s But that cash want the conclusion it of through really make other capital last understand going less breakeven. just one you to a are than flow phase. to manufacturing And intensive kind of the of this just that thing, your Okay. it get things

So, per of a you million EBITDA run mentioned $XX of rate quarter.

So, reference you that. in a from and of quarter $XXX might CapEx, EBITDA like quarters, over $XXX correct five million sounded the it $XX about another per it’s next million million thinking negative you

needs little of we capital So, out of between that I guess working a those over and sort work the is the two the next…? bit as capital, think

euros, are so numbers the not dollars. referenced, I we you clear, think have it’s important are that

sorry, sorry. Oh, euros. Yes,

roughly, expectation. But our that’s

Okay.

modular. Yes. it’s business And is model what actually, is very about important our

elements So, absolutely module. least to correct those you are of the at

spending of are rates, attributes on And in and same in we that controlled. economics terms us. much producing pound many we R&D for budgets, one are not relates very the of economics, are microfactory to models every well. which things product but OpEx So, variants supporting, a and unit of And the we our controlling also methods is terms cent see as focused one we microfactories, that and production very at part are is lesser are there CapEx, also extremely it mostly it’s time. Other

progress our like design, particular to have of less the we radically method way we what because in developing of So, like, compared mixing the industry people today. involved that have, does the

see way finance, with are broadly, our right you So to yes. the

Got it.

Okay. Thank you.

come will from question next Our Barclays. Brian with Johnson

metrics gives really Thank anecdotes still that some, much you. us sense that is given Arrival Excuse the out, or from production composite about give quarter, last you you track? the us on so around that the microfactories, unique me, microfactory can approach which is last question pointed a be could

the over script an But have produced are line we we now to-date. installing panels right had line referenced we even Bicester. I in absolutely. in actually updated that X,XXX composite the composite on Brian, So, manufacturing

the more improve the what is process manufacturing on one composite to process. both to as knew it it of brings product IP the advantages, efficient Arrival as Again, ability being make of work well are to would far we that is continue it the higher it. the our delivering as though we And as it throughput. going to So, absolutely continue attributes with to

one finished this new had just Yes. And new this the the attributes modular, so bit already on the the color forming a is line, new line, we of on which stations. factory and flexibility was like composite to, we we putting before. And referring development give is a the production. new better previous the to one just we same the stopping not you have Mike so that the one this have our is like of which line new was here one, to because have and generation much updating then And than previous are

the So, well. our method of as advantage that’s also

Brian? Anything else,

Yes.

Van? panels so get do panels are process would because produced? and panels point we vehicles a How are about scale out follow-up, complete a of the How composite as and into your into that are them Just competitors that, joining insight vehicles. at actually complete get the some

of production get want that a to just how sense So, is going.

Yes, go ahead Mike, please.

So to a assembly. to Brian, or an of that in outer line say, sort assemble, this flexible inner bonding a done or use we any in talk the about way. that We other cell. when last is panel the an very composite It’s panel panel the manufacturing Arrival line, cell. station It’s last cell

highly lot and it’s to very the on area. process assembly with automation automated. the need. actual of So, and cells that in microfactory the making we executes to a Again, the assembled vehicle very work the throughput get panels sure then tech And the high the quality in

prototype them only yes, using So I mean, are assemble into these are already to but panels, we vehicles. processes we panels assembling our are already vehicles.

So, we it. are already getting a lot of with practice

expect say Brian, old I it’s that method, because right. the I say to would that others

So, in with just Arrival. that’s replacing fundamentally, not their just mind, you at x true are But y. it’s okay,

got, We work and together. have it’s And have the components. chassis, you with panel have work have we all designed in-house composite the got to developed technologies the all you the systems with designed that then that

something step in So, to of different. take to with how all point. know, a and way. make there. you change a fundamentally to replace It’s that vehicle an I that composite want can’t you work total want it our about you vehicle, engineered. the I body say think it’s panels and expect how existing Denis It’s

behind it’s I is to is way what is you say the that in wanted because – in that that inside is interiors the put was your Absolutely, car it the refer designed to want I amazing robotically. quite car way behind which which Yes. we the that

have we bodies to Unibody, was composite do done the the of companies, And impossible been it’s us it in we this it’s with way industry. before to with that and again, possible. the like panels design, look traditional do and should never got at the do allows it how our type and So, current manufacturing, you

Okay. Thanks.

thank that all you everyone We today’s that participation. conclude your And with for webinar. does

disconnect. You may now

Thank much you very everyone.

Thank Thanks here. Bye. everyone time you. your for