Faraday Future Intelligent Electric Inc (FFAI) 2024 Q3 法說會逐字稿

Greetings. Welcome to Faraday Future Intelligent Electric Inc 3rd Quarter 2024 Earnings Conference call.

問候。歡迎參加法拉第未來智慧電氣公司 2024 年第三季財報電話會議。

[Operation instructions]

【操作說明】

It is now my pleasure to introduce John Schilling, Global Director of Communications and Public Relations. Thank you. You may begin.

現在我很高興向大家介紹全球傳播和公共關係總監約翰席林 (John Schilling)。謝謝。你可以開始了。

Welcome everyone to Faraday Future 3rd Quarter 2024 Earnings. My name is John Schilling, Global Director of Communications and Public Relations, and I am joined by Faraday Future's recently appointed Chief Financial Officer, Koti Meka; Matthias Aydt, our Global Chief Executive Officer; Xiao Ma, Head of Head of Product and Mobility Ecosystem & Head of Corporate Strategy here at FF today. We will be sharing details from our 3rd Quarter 2024 results.

歡迎大家關注法拉第未來 2024 年第三季財報。我是全球傳播和公共關係總監約翰·席林 (John Schilling)，法拉第未來最近任命的首席財務官科蒂·梅卡 (Koti Meka) 也加入了我的行列。 Matthias Aydt，我們的全球執行長； FF 產品與行動生態系統負責人兼企業策略負責人小馬今天蒞臨。我們將分享 2024 年第三季業績的詳細資訊。

The press release as well as today's presentation will be available on the investor relations section of our website at www.ff.com. A replay of this call will also be posted there later this evening.

新聞稿以及今天的簡報將在我們網站 www.ff.com 的投資者關係部分發布。本次通話的重播也將於今晚晚些時候發布。

Please note that on the call, we will be making forward-looking statements based on current expectations and assumptions which are subject to risks and uncertainties. These statements reflect our views only as of today should not be relied upon as representative of views as of any subsequent date and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For further discussion of the material risks and other important factors that could affect our financial results. Please refer to our filings with the SEC.

請注意，在電話會議上，我們將根據當前的預期和假設做出前瞻性聲明，這些預期和假設存在風險和不確定性。這些陳述僅反映我們今天的觀點，不應被視為任何後續日期的觀點代表，我們不承擔根據新資訊或新資訊修改或公開發布這些前瞻性陳述的任何修訂結果的義務。這些陳述受到各種風險和不確定性的影響，可能導致實際結果與預期有重大差異。進一步討論可能影響我們財務表現的重大風險和其他重要因素。請參閱我們向 SEC 提交的文件。

With that, I'll turn the call over to Faraday Future's Global CEO, Matthias Aydt.

接下來，我會將電話轉給法拉第未來全球執行長馬蒂亞斯‧艾德特 (Matthias Aydt)。

Thank you, John, and thank you everyone for joining our earnings call.

謝謝約翰，也謝謝大家參加我們的財報電話會議。

Let me outline the key areas I'll cover in today's discussion. First, I'll review our organizational transformation and recent leadership appointments. Second, I'll discuss our corporate initiatives and operational progress including our FF 91 2.0 deliveries. Third, I'll provide details on the launch of our recently announced FX brand and market strategy which plays into our FF dual brand strategy. Finally, I'll update you on our international expansion, particularly our progress in the Middle East.

讓我概述一下我將在今天的討論中討論的關鍵領域。首先，我將回顧我們的組織轉型和最近的領導任命。其次，我將討論我們的企業計劃和營運進展，包括 FF 91 2.0 的交付。第三，我將詳細介紹我們最近宣布的 FX 品牌的推出以及市場策略，該策略融入了我們的 FF 雙品牌策略。最後，我將向您介紹我們國際擴張的最新情況，特別是我們在中東的進展。

During the third quarter, we continued our transformation from a project driven organization to an operation driven organization with heavy emphasis on cost optimization, quality improvements and operational efficiency. Notably, we made significant progress in our strategic road map while achieving a significant reduction in operating expenses. We believe this cost discipline combined with our strategic shift. The system says well for our next phase of development to help support this next phase of growth; we have strengthened our leadership team with several key appointments.

第三季度，我們繼續從專案驅動型組織向營運驅動型組織轉型，重點關注成本優化、品質改進和營運效率。值得注意的是，我們在策略路線圖上取得了重大進展，同時大幅減少了營運費用。我們相信這種成本紀律與我們的策略轉變相結合。該系統為我們下一階段的發展提供了良好的支持，以幫助支持下一階段的成長；我們透過多項重要任命加強了我們的領導團隊。

Koti Meka recently was promoted to Chief Financial Officer replacing Jonathan Maroko, who remains on us as a consultant. Lin Ma was elevated to Acting Head of EV R&D, and Tin Mok, Head of FF UAE, where he is leading our business development and strategic financing efforts in the region.

Koti Meka 最近晉升為財務官，接替 Jonathan Maroko，後者仍擔任我們的顧問。馬琳 (Lin Ma) 晉升為電動車研發代理主管，莫錫 (Tin Mok) 則被提升為 FF 阿聯酋主管，負責領導我們在該地區的業務發展和戰略融資工作。

Now let me share some key developments from the quarter in terms of corporate progress. We successfully completed several important initiatives.

現在讓我分享本季公司進展的一些關鍵進展。我們成功地完成了幾項重要措施。

First on the financing front, we secured $30 million in new financing commitments from investors across the Middle East. United States and Asia. This included $7.5 million in previously funded amounts and $22.5 million in new investments. Notably, this financing included participation from Master Investment Group, led by Sheikh Abdullah bin Mohamed Al Qassimi.

首先在融資方面，我們從中東各地的投資者那裡獲得了 3000 萬美元的新融資承諾。美國和亞洲。其中包括 750 萬美元的先前資助金額和 2,250 萬美元的新投資。值得注意的是，本次融資包括謝赫·阿卜杜拉·本·穆罕默德·卡西米領導的 Master Investment Group 的參與。

The net proceeds we received were approximately $28.5 million of this amount. $20 million was received in Q3 and 8.5 million was received after September 30. And prior to today in addition, I am pleased to report that we regained full NASDAQ listing requirements. Compliance completed our previously announced reverse stock split and increased our authorized share count to support potential future growth opportunities. We also successfully worked with our existing noteholders to restructure certain convertible notes with the goal of reducing future cash obligations.

其中，我們收到的淨收益約為 2,850 萬美元。第三季收到 2,000 萬美元，9 月 30 日後收到 850 萬美元。另外，在今天之前，我很高興地向大家報告，我們已恢復完整的納斯達克上市要求。合規性完成了我們先前宣布的反向股票分割，並增加了我們的授權股票數量，以支持未來潛在的成長機會。我們也成功與現有票據持有人合作重組某些可轉換票據，以減少未來的現金義務。

The operational front, we delivered two FF 91 2.0 vehicles during the third quarter, including one to Wei Gao, our Head of Global Communication and Community Sales. Our other delivery was to born leaders, entertainment, expand our B2B initiatives and Developer Co-creation of program. This brings our total deliveries to 14 vehicles to date.

營運方面，我們在第三季交付了兩輛 FF 91 2.0 車輛，其中一輛交付給了我們的全球傳播和社區銷售主管高偉。我們的其他交付內容是培養天生的領導者、娛樂、擴展我們的 B2B 計劃和開發人員共同創建專案。這使得我們迄今為止的總交付量達到 14 輛。

We have implemented several manufacturing improvements including bringing certain vehicle body and interior component production in which has reduced interior costs by a house.

我們實施了多項製造改進，包括引入某些車身和內裝零件生產，從而降低了房屋的內部成本。

Our FF factory California continues to demonstrate its potential. As a cornerstone of our manufacturing strategy, we continue to enhance our product quality. The manufacturing related warranty improvement process was put in place.

我們的加州 FF 工廠繼續展示其潛力。作為我們製造策略的基石，我們不斷提高產品品質。與製造相關的保固改善流程已經到位。

There is a comprehensive synergy between factory quality and PDI resulting in a comprehensive CCA audit. Our first inspection, customer craftsmanship audit score has seen an improvement of 25%.

工廠品質和 PDI 之間存在全面的協同作用，從而實現全面的 CCA 審核。我們的第一次檢查，客戶工藝審核分數提高了 25%。

We have made continued efforts to improve the FF 91 software AI-and-human machine interaction. With recent multiple software improvements that include expanded voice controls, improved rout guidance and improved display interface updates to name a few all created in the effort to make the lives of our users more connected, more engaging and more effortless.

我們持續努力完善FF 91軟體AI與人機互動。最近的多項軟體改進包括擴展的語音控制、改進的路線指導和改進的顯示介面更新等等，所有這些都是為了讓我們用戶的生活更加互聯、更具吸引力和更加輕鬆。

A significant milestone. This quarter was the announcement of our second brand Faraday X or FX which took place at our Global Automotive Industry Bridge Launch Event on September 19.

一個重要的里程碑。本季我們在 9 月 19 日的全球汽車工業橋發布會上宣布了我們的第二個品牌 Faraday X 或 FX。

This initiative represents our planned return to a dual brand strategy with FX being developed to target mass market segments. We envision two initial models, the FX 5, which we are planning to position in the $20,000 to $30,000 range and the FX 6, which we expect to offer between $30,000 and $50,000 subject to secure necessary funding and approvals. We intend to offer both range-extended AIEV and battery-electric AIEV powertrain options.

這項舉措代表了我們計劃回歸雙品牌策略，其中 FX 的開發目標是大眾細分市場。我們設想了兩種初始型號：FX 5，我們計劃將其定位在20,000 美元至30,000 美元範圍內；以及FX 6，我們預計在獲得必要的資金和批准後，其售價將在30,000 美元至50,000 美元之間。我們打算提供增程 AIEV 和電池電動 AIEV 動力系統選項。

We believe the market opportunity for range-extended AIEV, particularly compelling in the United States where charging infrastructure continues to develop based on our analysis of market data. While the US penetration rate remains below 20%. We have observed that range-extended AIEV have shown strong adoption in other markets particularly in addressing range anxiety concerns. We believe this represents a potential opportunity for our planned FX product lineup.

我們相信增程式 AIEV 的市場機會，特別是在美國，根據我們對市場數據的分析，充電基礎設施不斷發展。而美國的滲透率仍低於20%。我們觀察到，增程型 AIEV 在其他市場中得到了廣泛採用，特別是在解決里程焦慮方面。我們相信這對我們計劃的外匯產品陣容來說是一個潛在的機會。

Our global automotive industry bridge strategy aims to leverage existing technologies and potential manufacturing synergies between our premium and mass market seconds. Thus far, we have entered into preliminary agreements with four OEMs, including two strategic framework agreements and two MOUs. Though these discussions remain subject to final documentation and various conditions.

我們的全球汽車產業橋樑策略旨在利用現有技術以及我們的高端市場和大眾市場之間的潛在製造協同效應。到目前為止，我們已與四家整車廠簽署了初步協議，包括兩份戰略框架協議和兩份諒解備忘錄。儘管這些討論仍然取決於最終文件和各種條件。

Turning to our Middle East expansion, we have made great progress in establishing our presence in the region. We recently announced a co-investment agreement with Master Investment Group, led by Sheikh Abdullah bin Mohamed Al Qassimi, to establish our future regional headquarters in Ras Al Khaimah to our RAKEZ-based entity for Faraday Future Middle East FZ-LLC. We have signed agreements with Ras Al Khaimah Economic Zone (RAKEZ) for both current operations and a nearly completed 108,000 square foot facility. Earlier this year, we established a sales entity in Dubai marking a key milestone in our expansion. This entry into the Middle East supports our third poll strategy, complementing our dual home markets of the US and China.

談到我們的中東擴張，我們在該地區的業務佈局方面取得了巨大進展。我們最近宣布與 Sheikh Abdullah bin Mohamed Al Qassimi 領導的 Master Investment Group 達成共同投資協議，未來將在哈伊馬角建立我們未來的區域總部，作為 Faraday Future Middle East FZ-LLC 位於 RAKEZ 的實體。我們已與哈伊馬角經濟區 (RAKEZ) 就目前營運和即將竣工的 108,000 平方英尺設施簽署了協議。今年早些時候，我們在杜拜設立了一個銷售實體，這是我們擴張過程中的一個重要里程碑。這次進入中東支持了我們的第三次民調策略，補充了我們美國和中國的雙重本土市場。

Looking ahead, we are focused on three key areas, strengthening our core operations, advancing our dual brand strategy and pursuing strategic partnerships that support our growth objectives. We believe our engineering capabilities combined with our planned dual brand approach and the potential international partnerships position us to address both the premium and mass market segments of the evolving AIEV market.

展望未來，我們將重點放在三個關鍵領域：加強核心業務、推動雙品牌策略以及尋求支持我們成長目標的策略合作夥伴關係。我們相信，我們的工程能力與我們計劃的雙品牌方法和潛在的國際合作夥伴關係相結合，使我們能夠滿足不斷發展的 AIEV 市場的高端和大眾市場領域的需求。

I now want to turn it over to Xiao Ma for an important update on our FX strategy.

我現在想將其轉交給小馬，以獲取我們外匯策略的重要更新。

Hello and thank you for joining us today. Xiao Ma, Head of Product in the mobility ecosystem and Head of Corporate Strategy. I just returned from China after completing this business trip for the FX strategy to China and I can't wait to share it with everyone. We achieved all the set objectives for this trip, kicked off the internal next step meeting on Monday and we will provide further updates as we reach our new milestone in the near future.

您好，感謝您今天加入我們。馬曉，出行生態產品負責人兼企業策略負責人。我剛結束這次中國外匯策略出差從中國回來，我迫不及待想跟大家分享。我們實現了這次旅行的所有既定目標，並在週一啟動了內部下一步會議，當我們在不久的將來達到新的里程碑時，我們將提供進一步的更新。

Sheikh Abdullah Al Qasimi, our Middle East investor also held in depth discussions with FX partners in China. We have already initiated the activities to achieve first milestones according to our production program for the first vehicle model which targets to roll off the line by the end of 2025. Subject to securing the necessary funding.

我們的中東投資者Sheikh Abdullah Al Qasimi也與中國的外匯合作夥伴進行了深入的討論。我們已經根據首款車型的生產計劃啟動了實現第一個里程碑的活動，目標是在 2025 年底前下線。前提是獲得必要的資金。

The products are currently in the first phase of vehicle development with related work underway to achieve the first phase milestones FF has begun hiring for key positions for the second brand FedEx. Job openings for FX include production planning director, quality planning director, head of FX vehicle engineering and head of FX EV R&D. I'll now turn it over to Koti Meka for a review of our financial results.

這些產品目前正處於車輛開發的第一階段，相關工作正在進行中，以實現第一階段的里程碑 FF 已開始為第二品牌 FedEx 招募關鍵職位。FX 的職缺包括生產計劃總監、品質計劃總監、FX 車輛工程主管和 FX EV 研發主管。現在我將把它交給 Koti Meka 來審查我們的財務表現。

Thank you, Xiao Ma. Great to hear things are progressing steadily on our FX brand and strategy and hello to everyone on the call. I'll start with our third quarter financial performance, discuss our balance sheet and close with comments on our capital raising efforts as Matthias noted, I am pleased to report that Faraday has been successful in its efforts to reduce costs during the third quarter of 2024. Our operating expenses declined 92.6% to $3.8 million compared to $50.9 million in the prior year's quarter. This reduction reflects our ongoing cost control initiatives as well as a nonrecurring gain of $14.9 million from the settlement of previously accrued research and development costs. However, even adjusting for that gain, operating expenses would have still declined 63.2% from the prior year period. Third quarter, loss from operations improved to $25.2 million compared to a loss of $66.4 million in the prior year quarter.

謝謝你，小馬。很高興聽到我們的外匯品牌和策略正在穩步進展，向參加電話會議的每個人問好。我將從我們第三季度的財務業績開始，討論我們的資產負債表，最後對我們的融資工作發表評論，正如馬蒂亞斯指出的那樣，我很高興地報告法拉第未來在2024 年第三季度降低成本方面取得了成功。與去年同期的 5,090 萬美元相比，我們的營運支出下降了 92.6%，降至 380 萬美元。這項減少反映了我們持續的成本控制措施以及從結算先前應計研發成本中獲得的 1,490 萬美元的非經常性收益。然而，即使調整此收益，營運費用仍比去年同期下降 63.2%。第三季營運虧損從去年同期的 6,640 萬美元增至 2,520 萬美元。

Our loss before income taxes was $77.7 million compared to $78 million in the prior year quarter. Turning to the balance sheet as of September 30, 2024, our preliminary financial position included total assets of $449 million total liabilities of $292.3 million and book value of $156.7 million.

我們的所得稅前虧損為 7,770 萬美元，而去年同期為 7,800 萬美元。截至 2024 年 9 月 30 日的資產負債表，我們的初步財務狀況包括總資產 4.49 億美元、總負債 2.923 億美元、帳面價值 1.567 億美元。

We ended the quarter with $7.3 million in cash during the first nine months of 2024. Our financing activities provided net proceeds of $55.7 million.

截至本季末，我們在 2024 年前 9 個月的現金為 730 萬美元。我們的融資活動提供了 5570 萬美元的淨收益。

Looking ahead, we will continue to look for opportunities to improve operational efficiencies and reduce costs while maintaining disciplined investment in our strategic growth initiatives.

展望未來，我們將繼續尋找機會提高營運效率並降低成本，同時維持對策略成長計畫的嚴格投資。

We continue to explore various financing alternatives including nondilutive options to support our operational needs and growth initiatives. While access to capital continues to be a key consideration for our production plants. We believe our streamlined cost structure positions us to utilize any new capital more efficiently with that.

我們繼續探索各種融資方案，包括非稀釋性方案，以支援我們的營運需求和成長計劃。雖然獲得資本仍然是我們生產工廠的關鍵考慮因素。我們相信，我們精簡的成本結構使我們能夠更有效地利用任何新資本。

I will hand it back to Matthias.

我會把它還給馬蒂亞斯。

Thank you, Koti.

謝謝你，科蒂。

Let me provide you with a look ahead for the company.

讓我向您介紹一下公司的前景。

Our main focus remains on stabilizing and strengthening our operation. Continuing to attract strategic investors, maintain and grow FF 91 2.0 production and develop the FX brand and products. Moving into 2025.

我們的主要重點仍然是穩定和加強我們的營運。繼續吸引策略投資者，維持和成長FF 91 2.0產量並開發FX品牌和產品。進入 2025 年。

Our main goal is to achieve profitability and become self-funding in the shortest possible time to be able to achieve a higher market penetration in the future. We are exploring multiple avenues and scenarios. Our dual brand strategy is allowing us to leverage our high value traditional FF brand with four Chinese OEMs providing the potential to gain economies of scale.

我們的主要目標是在最短的時間內實現盈利並實現自籌資金，以便能夠在未來實現更高的市場滲透率。我們正在探索多種途徑和場景。我們的雙品牌策略使我們能夠利用我們的高價值傳統 FF 品牌與四家中國 OEM 廠商的合作，從而獲得規模經濟的潛力。

We have already entered into two strategic framework agreements and two memoranda of understanding, and we are working towards finalizing definitive agreements with each.

我們已經簽署了兩項戰略框架協議和兩項諒解備忘錄，並且正在努力與每項協議敲定最終協議。

Importantly, FF has submitted FX trademark registrations in both China and US.

重要的是，FF已在中國和美國提交了FX商標註冊。

Since our 919 event, we have had over 200,000 views on live streaming, received over 70 questions in our Q&A section and garnered over $2 million impressions across our social media platforms.

自 919 活動以來，我們的直播觀看次數已超過 20 萬次，問答部分收到了 70 多個問題，並在我們的社群媒體平台上獲得了超過 200 萬美元的展示次數。

After the 919 launch event, Xiao Ma, our Head of Global Strategy and product along with investor Sheikh Abdullah Al Qasimi engaged in-depth discussions with potential FX partners in China. Achieving positive progress.

919發表會結束後，我們的全球策略和產品主管小馬與投資者謝赫·阿卜杜拉·卡西米 (Sheikh Abdullah Al Qasimi) 與中國潛在的外匯合作夥伴進行了深入討論。取得積極進展。

FX has already launched a vehicle development project for the target models with the first vehicle potentially rolling off the line by the end of 2025. Subject to our securing the necessary funding.

FX 已經啟動了目標車型的車輛開發項目，第一輛車輛可能會在 2025 年底下線。以我們獲得必要的資金為前提。

The project is currently in the first phase of vehicle development with related work set to begin to complete the first phase milestones of this vehicle project. Additionally, we would like to address questions regarding last week's one file. This filing primarily corresponds to our $30 million convertible notes financing round in September 2024 of the total $29.7 million shares registered in the S one, the $25.3 million shares registered in the S one covering shares issuable upon conversion of the notes is based on conversion floor price of $1.048 per share. The number of shares actually issued is independent of the number of shares being registered. The actual conversion price is variable and linked to the market price. For example, if the conversion price were $2 per share and the full $30 million in convertible debt were converted at this price, approximately $15 million shares would be issued.

該專案目前正處於車輛開發的第一階段，相關工作即將開始完成該車輛專案的第一階段里程碑。此外，我們想解決有關上週一份文件的問題。該備案文件主要對應於我們於2024 年9 月進行的一輪3000 萬美元可轉換票據融資，其中S 股中註冊的總股數為2970 萬美元，S 股中註冊的2530 萬美元股票涵蓋了票據轉換時可發行的股票，其基礎是轉換底價每股 1.048 美元。實際發行的股份數量與登記的股份數量無關。實際轉換價格是可變的，並與市場價格掛鉤。例如，如果轉換價格為每股 2 美元，並且以此價格轉換全部 3,000 萬美元的可轉換債務，則將發行約 1,500 萬美元的股票。

These shares would then be added to our total shares outstanding. For more information, please check our recent one disclosure ff appreciates the trust shown by investors and would like to thank them for their loyal and ongoing support.

然後這些股票將會被加到我們的已發行股票總數中。欲了解更多信息，請查看我們最近披露的一份文件，感謝投資者所表現出的信任，並感謝他們的忠誠和持續支持。

Thank you for your time and interest fairy day future and I look forward to providing you with further updates as significant events unfold.

感謝您的時間和對童話日未來的興趣，我期待著隨著重大事件的展開向您提供進一步的更新。

Thank you, everyone.

謝謝大家。

Thank you. This will conclude today's conference. [Operation instructions].

謝謝。今天的會議到此結束。 【操作說明】。