Welcome to the Gogoro Inc. 2023 Q3 Earnings Call. These sessions will be recorded. I would like to introduce Bruce Aitken, CFO of Gogoro, who will kick us off.

Thanks, Operator, and thanks to everyone for taking the time to join us today. I’m Bruce Aitken, CFO of Gogoro, and I’m pleased to welcome you to our third quarter 2023 earnings call. Hopefully by now you’ve seen our earnings release. If you haven’t, it’s available on the Investor Relations tab of our website, investor.gogoro.com. We’ll also be displaying the materials on the webcast screen as we go. We’re looking forward to sharing our Q3 results, as well as providing guidance on what we’re seeing as the outlook for the remainder of 2023. Before our CEO, Horace Luke, shares, I’d like to introduce Michael Bowen of ICR, who will share the process for today’s call and provide some important disclosures. Michael?

Thank you, Bruce. I’m sure you’re all looking forward to hearing from Horace and Bruce on behalf of Gogoro, but before that, allow me to remind you of a few things. You are all currently on mute. After Horace has given a brief overview of Gogoro and some of the business highlights from Q3, Bruce will go a bit deeper into the Q3 financial results, and then we will open the line for Q&A and answer as many questions as time allows. During the call, we will make statements regarding our business that may be considered forward-looking within applicable securities laws, including statements regarding our third quarter 2023 results, management’s expectations for our future financial and operational performance, the capabilities of our technology, projections of market opportunity and market share, the strategic cooperation and investments in India and the Philippines, our potential growth, headwinds facing the company, the company’s business plans, including its expansion plans, the company’s expectations relating to its growth in overseas markets, statements relating to the potential of our strategic collaborations, partnerships and joint ventures, statements regarding regulatory developments and our plans, prospects and expectations. These statements are not promises or guarantees and are subject to risks and uncertainties, which could cause them to differ materially from actual results. Information concerning those risks is available in our earnings press release distributed prior to market open today and in our SEC filings. We undertake no obligation to update forward-looking statements except as required by law. Further, during the course of today’s call, we will refer to certain adjusted financial measures. These non-IFRS financial measures should be considered in addition to, not as a substitute for, or in isolation from IFRS measures. Additional information about these non-IFRS measures, including reconciliation of non-IFRS to comparable IFRS is included in our press release and investor presentation provided today. Now, we’ll turn the call over to Horace.

Thanks, Bruce and Michael. Thanks for joining our call today. We’re pleased to have this opportunity to meet with you and provide an update on the third quarter 2023 results and for the rest of 2023. When we prepare for these quarterly results and remarks, as well as answer your questions, we’re always struck by the need to address the immediate quarter, but not to waver from our mission. Quarters go up and down, results vary, but our mission remains unchanged. We’re seeking to put smart, swappable power in the reach of every urban rider in the world. This is a bold mission. One we’re committed to. We seek to advance that cause every day, and as we have stated many times, we believe we’re on the right path. One at a time, individual riders are selecting a better, more sustainable, more data-driven riding experience by choosing to adopt the Gogoro battery swapping system. We know that our technology can change the world. In the ever evolving mobility landscape, the macro message is clear. It is time for a sustainable shift. As our world faces growing environmental challenges, a fundamental transformation in our approach to mobility is imperative. Across many regions, this shift to electric vehicles and EV second life use are gaining momentum, even in the face of legacy technologies. As stated last quarter, the long-term future remains bright despite some near-term challenges and we remain excited for the future of vehicle and infrastructure electrification. We see a world where two-wheel electric vehicle and battery swapping are affordable, stylish and readily available, revolutionizing urban mobility, while significantly reducing the environmental footprint. Similar to last quarter, the macroeconomic environment in Q3 has continued to be challenging, but we remain confident that customer interest remained high in the markets we serve…

Thanks, Horace. We are actively expanding our presence internationally with a clear focus on our commercial launch in India, but we’re also launching in the Philippines and continue to expand our 12-city operation in Korea, as well as maintaining pilots in other markets. Our manufacturing capabilities in India are established and we are manufacturing our first vehicles using locally sourced components, which readies us for India’s FAME II Incentive Program, which is an incentive scheme for manufacturers of EVs intended by the government to spur EV adoption. We anticipate beginning our smart battery-packed manufacturing in the first half of 2024 and we’re thankful to the Government of Maharashtra for their ongoing support, as well as to our suppliers that are working with us to manufacture locally in India. We’ve made a rugged, high-quality vehicle that meets local market pricing demands. The value proposition for a high-quality vehicle and for battery swapping is most evident in the B2B market segment, where vehicle downtime for traditional charging isn’t an option because of lost orders and lost revenue to both individual riders and fleet operators. We’re pleased to share that in the past few weeks, we’ve delivered our first vehicles to B2B partners for testing and we will be announcing more commercialization details about our Smartscooter and Gogoro Network battery swapping launch soon. As we launch services in new cities, ensuring sufficient swap station locations exist to meet customer needs and operate an effective Gogoro network is critical. We can place stations at B2B delivery hubs, but open stations are a critical part of the overall infrastructure build-out as well. Last week, we announced a significant MoU with Hindustan Petroleum Corporation Limited or HPCL, one of India’s leading oil companies, to roll out Gogoro battery swapping stations at thousands of HPCL gas stations…

[Technical Difficulty] Color on India and the Philippine markets, expansion plans and status. And when do you anticipate material sales from either market?

Thanks, Michael. I’ll take that. I’ll address India first and then the Philippines. We have a vehicle factory up and running in India, and as you saw in the presentation there. And we have made great progress toward our battery-packed factory readiness and we expect to be operational in the first half of 2024. We’ve already delivered samples of our locally sourced and assembled vehicle to our B2B partners and have already started to book some orders. We’ve also begun deploying GoStations in Delhi and we’ll begin rolling out to other cities soon. We’re extremely grateful to our suppliers, our partners and especially the Government of Maharashtra, our prospective customers and all the participants in our pilot. We’ve learned a great deal about the Indian riding conditions through the pilot and we use those learnings to ensure that our vehicle and our network offering will meet customers’ expectations. The technology, now I can say, is ready to go. In the Philippines, we’ve opened a Gogoro Experience Center through our joint venture with Ayala, Globe and 917 Ventures. The GEC opening was a great start to our presence in Manila and we’ll be providing more details about our vehicle and network plans in the coming weeks. If you’re in Manila, come to our Experience Center in the Greenbelt Mall and see how cool Gogoro products are for yourself. You can even take one for a test ride if you like. We’ve always said that Taiwan would represent approximately 95% of the revenue short-term in 2023 and that is exactly the case. We expect revenue from international markets to grow in 2024 and provide meaningful uplift to our total revenue overall.

Okay. Thanks, Horace. We also have another question. For the past quarters, you’ve shown good control on your financial metrics like margin, cash flow, EBITDA and trimming your net loss figures. Could you elaborate on whether you think you’ll be able to keep that trend going?

Thanks, Michael. We’ve been working hard, as you can tell, across the company to ensure that we exercise financial discipline. It’s not just the finance team. It has to happen across our operations, across our international teams, across the entire employee team and we’ve got alignment on that clear goal. We’ve got clear intention from each team member to think like an owner and to be financially responsible. So when volumes are down a bit or when other challenging circumstances arise, we have to keep that focus on our long-term financial stability. That includes establishing and executing to the right metrics, some of which are the ones that you mentioned above. So we’re closely tracking spending for efficiency. We’re tracking EBITDA, and as mentioned, we’ve been EBITDA positive now for 19 consecutive quarters. We’re making progress towards everyone’s goal, including our own of turning cash flow positive. So we’re doing those things while focusing to invest for growth, both here in Taiwan, but also in international markets. We’ll keep the focus. We’ll keep working closely with the operations team to make wise investments and we intend to continue the trend of solid financial results.

All right. Thank you, Bruce and Horace. So, Operator, could you please now open the lineup for the Q&A session?

Certainly. [Operator Instructions] We have an online question from the audience. Gogoro batteries are the perfect size and capacity to power electric forklifts, lawnmowers, golf carts and portable energy stations. Does Gogoro have any plans on selling your batteries to businesses and consumers around the world and going beyond battery subscriptions? This will help create a diverse ecosystems of devices that Gogoro batteries can power like the way AA batteries have done. Thank you.

Sure. This is a great question. We’ve always seen batteries as a module of portable power. Of course, with Gogoro today, you’ve seen us taking care of two-wheel vehicle, as well as three-wheel vehicle and very soon you saw us just in the Tokyo Auto Show where we demonstrated how we can actually apply that to four-wheelers as well. The batteries have always been, just as you said, they’re like AA form factor type of configuration where we can use a single battery or two batteries in parallel or in series or even four batteries in either all in series or all in parallel or a two-by-two configuration. Of course, this can empower a lot of different type of equipment such as you mentioned, forklifts, golf carts and others. But at Gogoro, we are -- for the short-term being, we are very, very focused on the largest opportunity ahead of us. Given that we are -- we have built the world’s perhaps densest battery with the most amount of energy for the volume and the weight that it has, we believe that there is a great application to the mobility space, which happens to be one of the largest, of course, the opportunity, not only for a financial opportunity, but also for impact opportunity where we can actually change countries like India or cities across Southeast Asia. We believe that that is our, at the moment, a very, very focused goal for us, but also at the same time, we are constantly talking with and planning for in one day, we will apply our battery to other configurations as well and other type of use as well. Thank you.

Thank you for the questions. We do have another question from the online audience. Gogoro batteries have been proven to be safe and durable with years of real world data. Do you have any plans on opening up your battery platform and selling batteries to other e-bikes manufacturers? Thank you.

I’ll take that as well, Bruce. I think the question of enabling using our battery power and our battery swapping system for others is exactly along our thesis. We have, of course, been partnering with Yamaha, with Suzuki Taiwan, with A Motor, that’s by Aon, with PGL, and a number of other vehicle makers, a total of about 11 or 12 different vehicle makers across the world. The list keeps growing and growing and growing, because they see the value on what our technology brings to them when they think about electrification of their fleet and their businesses. I think all of us can agree that there is, an imminent change coming, especially around lighter weight urban mobility where electrification is possible and will happen and so we’re working with these larger vehicle makers to bring our value of not only our battery, but our battery swapping system that enable the consumer to get on board without having to worry about range anxiety, without having to worry about buying a battery, which not only is the purchase price of the battery, but also the replacement cost potential when the battery needs to retirement. And also at the same time, providing city governments a great solution for safety and predictability as we put these stations and centralize our charging, instead of scattering them all around the different parts of apartment buildings and all over town. We do counselling work with a number of other vehicle makers as well, planning for even a greater footprint, not only in different cities, but also with different vehicle types and different brands across the world. Thank you.

[Operator Instructions] I see there are no further question at this time. I’d like to hand the call back to Michael for closing.

Okay. Thank you, Operator. So, at this time, we will hand the conference back over to Horace for a few closing remarks. Thank you.

Thanks, Michael. I’m always energized by the chance to share with you a progress with all the investors that are on the call. In a tough market condition like we’re facing today, we’re focusing on continuing to deliver technology and solutions that customers want. This can take us in the shape of new vehicles or services, improve management of our Gogoro Network or the initiation of our services in new markets. We’ve launched a number of these new services and products in Q2 and Q3, and we’ll keep doing so in the remainder of 2023 and into Q1 2024. At Gogoro, we believe it is a great time to be contributing to the transition to green urban mobility and we appreciate your support along the way. Thank you for calling in today. Thank you.

Ladies and gentlemen, that does conclude today’s conference call. Thank you for your participation. You may now disconnect your lines.