Operator: Our next question comes from the line of Sheila Kahyaoglu with Jefferies.
Sheila Kahyaoglu: I wanted to ask about your cash usage. You’ve targeted $130 million to $150 million of cash use in 2023. Following $50 million in ’22, how much of that is related to R&D? And should we still think about past usage being in the $100 million to $150 million on a per annum basis?
Andre Stein: Yes, I can take that, Sheila. The big jump is really on R&D, right, or the increase is the majority in R&D from the $130 million to $150 million this year, around $100 million should be fully dedicated to R&D. Of course, we have the Eve structure and the development team in some other areas that the remaining $30 million to $40 million. But the big jump and the big chunk by far is R&D in the problem .
Sheila Kahyaoglu: Okay. And then I wanted to sort of understand where you guys are with your supplier base. How you think about what percentage of suppliers have already been selected? And how much of that may be — what you’re — who you’re targeting to select in 2023 or what parts? And how much of that overlaps with Embraer’s base?
Gerard DeMuro: All right. Well, I’ll turn it over to Stein in a moment. I’m not sure what you — I would ask a little clarification about the overlap with Embraer. This is a unique vehicle. Our major suppliers will be unique. Given that you’re dealing with aviation, you may have typical suppliers, as you’ve seen in our partner list, partners like technology partners like Thales and Rolls-Royce and even BAE. They are typical suppliers in aviation, but the equipment here would be unique. And we are in the down select right now for the major suppliers, we call and Stein has been intricately involved in that on a daily basis, and that includes things like the power management, battery systems, the motors, the propellers and then moving to avionics. Stein, do you want to expand on that?
Andre Stein: No, I think you mentioned it. So there is no direct overlap. That said, of course, you can leverage a lot of existing Embraer relations. Also, there are newcomers to the market when you’re talking about electrification and so on. So there are new players in this aerospace market, it’s great, but creates more of a level field. And we — throughout the year, we are selecting the majors, as Jerry said, but also we are moving on with the selection of other aspects, like flight-controls, like even interiors, everything that needs to be in place this year so we can have a very, very significant portion of both the cost of the product as well as all the technical aspects over.
Sheila Kahyaoglu: Okay. That’s helpful. I just wanted to get an understanding of who some of the suppliers are and how comfortable you are with them and where you are in the process with them.
Operator: Our next question comes from the line of Marcelo Motta with JPMorgan.
Marcelo Motta: First question is related to the sales campaign. So just wondering you guys already have a very sizable book of orders, intention of purchase. So just wondering if there is still more to come. If you guys are like actively marketing the product as you reach the new milestone, we should see new orders going through the book. And also, I mean, related to that question is, who do you think are the, let’s say, the easiest clients to get the eVTOL, just to think about the ramp-up that you have forecasted on your — let’s say, on your IPO. I mean could this be anticipated if there is more demand? I mean this is related to supply chain bottlenecks, or what will need to happen for us to maybe see a faster delivery or faster ramp-up of production? So those are the 2 questions.
Andre Stein: Sure. I’ll start on that. So to your point, yes, we are continuing with our sales campaign. Also, we are strongly engaged with the existing customers we have on our backlog to really deep dive on understanding how the concept of operations will be. All this exercise will be done related to concept of operations, simulations and so on, to help us to understand the needs. So we can bring not only the customers, but the infrastructure partners and energy providers to the table and to the discussion to assure that we are — from the market perspective, we can have that deployment. So the market being ready to receive these airplanes. So we have these 2 tracks. Yes, we are continuing to talk of diverse portfolio of the customers beyond the ones we already acquired, but there is also a strong focus on engaging with existing customers and developing this plan.
On top of that, as you know, last year, we’ve worked together with Porsche to understand the requirements for manufacturing, how we can ramp up the production, how we can do that in a rational way as well. So I think it’s fair to say that we are in good shape for that ramp up that we are — that you saw there on our IPO. There is an optimum there, how much you want to ramp up and still be able to support and serve these aircrafts in a very professional, very complete way. We leverage the existing infrastructure for . So we don’t need to reinvest from scratch on existing infrastructure, and we’re being present in over 80 countries around the globe. That helps a lot for that earlier operation. But we don’t want to overly ramp up and or overpromise that ramp-up beyond what you believe will be sensible.
Operator: Our next question comes from the line of David Zazula with Barclays.
David Zazula: Just I guess a clarification on some of the questions we’ve had earlier on testing. For those of you are less familiar with the ANAC process, the prototype you’re building now and the components — are you planning to do any credit testing for that? Or is that going to come from prototypes that you’d be building?
Gerard DeMuro: Stein? The short answer is no. But Stein can expand on the process.
Andre Stein: I’m not sure if I got the whole question. If you wouldn’t mind to repeat it?
David Zazula: Just about the amount of — I guess, when do you expect to be able to start credit testing that ANAC will give you credit for certification?
Andre Stein: Okay. There is, as I said before, in terms of dates for flight test campaign, we don’t disclose that ahead of time for all the reasons I’ve explained. What I can tell you that we’ve already engaged with ANAC to start the formal process with ANAC earlier this year. Sorry? So I was saying that to — go ahead.
David Zazula: And then can I just ask about the Urban Air Traffic Management development, just how that’s progressing, and if there’s any expenses going to be related to that in 2023?
Andre Stein: Yes, that’s a good question. Yes, the development expenses are included on the cost on the guidance that Eduardo said. Edu, if you want to comment a bit more on that? But as we’ve said as well, we are planning to deploy earlier versions this year with potential customers, and we actually have around 6 customers already today for the software. So we can have this — the series of interactions to keep it on the software development. We’ve deployed earlier version last year in September during our trials in Chicago, again, to fine-tune the software development. But it’s going as planned. We like what we’re doing with the aircraft to where we are using a lot of the Embraer resources. With the software development, we are using and engaging with ATAC, which is part of the Embraer Group that has been developed that type of software not only for the Brazilian aerospace, so that they basically develop the whole software here for the Brazilian aerospace, but as well for other countries.
So it’s going as planned. And yes, it is included in our predicted expense for this year. Edu, not sure, if you’re going to comment on the last bit.
Eduardo Couto: I think that’s it. It’s part of the $100 million. We have an R&D. It’s a small portion. The focus — the biggest chunk is the .
