Please welcome Vice President of Investor Relations and Treasury, Randy Wilson. Good afternoon, everyone. Thank you for joining us this afternoon, especially participants here in the audience in Pontiac, Michigan. Welcome to The Shyft Group's Blue Arc Ride and Drive event here at the M1 Concourse. We have a beautiful day and a great schedule set up for everyone. My name is Randy Wilson, head of Investor Relations and Treasury. I'm joined by Daryl Adams, President and CEO, and John Douyard, our Chief Financial Officer. We are very excited to have you join us today. A couple housekeeping items. This event is being broadcast live on our website and is copyrighted by The Shyft Group. Any other use, recording, or transmission or portion of this broadcast without the express written consent of The Shyft Group is strictly prohibited. All of today's presentation material is posted on The Shyft Group investor relations section of our website. For those of you following on the webcast, you can progress the slides yourself this afternoon. Before we begin today's prepared remarks, please review our forward-looking statements displayed here. Please note that any forward-looking statements we make today are subject to the risks and uncertainties mentioned in the safe harbor statement. Additional information pertaining to factors that could cause the actual results to differ materially is contained in the company's reports and filings with the SEC. Finally, please note that this presentation is focused on our Blue Arc EV initiative since we're currently in a quiet period. Now, let's take a closer look at our today's agenda. We're excited to speak with you today about our right to play, right to win, and right to grow in the EV space. We'll wrap up today's presentation with a question and answer session, alternating between in-person and questions from participants joining via webcast. Those joining via webcast can email me at Investor Relations, investor.relations@theshyftgroup.com. Next, those participants here in Michigan will have the opportunity to go out and experience the Blue Arc experience, see the van, meet with our engineers, and of course, have some fun later at dinner. With that, I have the pleasure of turning it over to President and CEO, Daryl Adams. Thanks, Randy. Good afternoon, everyone, and thank you for joining us personally in the room and via the webcast. We're happy all of you are here today, and especially your interest in The Shyft Group. We have a very exciting afternoon ahead of us, so let's get started. Shyft Group is really a transformational story. You've heard us talk to you about this in some of our decks, right? When I started back in 2015, we were about 2% EBITDA, as you can see on the left side of the slide. Fast-forward to 2021, you can see where we ended up, $992 million in sales, about 11% EBITDA. In conclusion, right, this is all because of our transformational story, which is on the right-hand side of the deck. Talking through our focus on growth, our focus on M&A, our focus on lean initiatives, right? Our footprint, and then most of all, the management team, who you're gonna see some of these people here today and be able to talk with them. The Shyft Group is starting its new transformation. We're calling it the EV transformation with our Blue Arc products. We planned, right, to remain agnostic in the EV space, as we've told you before. Unfortunately, we couldn't find a chassis that would meet our demands, which are directly correlated with our customers' demands. Late 2020, a couple of our customers came to us and said, "We need you to get involved. We can't find a vehicle or a chassis that's working for us." We heard clearly across locations, right, from our fleet customers, they want a purpose-built, robust vehicle similar to what they have today, and they want it from an OEM. That led us to design our all-electric, zero-emission, commercial-grade, specialty vehicle chassis that you're gonna drive in today, be able to touch it, feel it, see it. The reason they came to us is because we're the trusted partner. We are the innovators for them. We're the problem solvers for them within our industry, right? Our key strengths are maintaining and building that relationship. In order to do that, we needed to get into the space. We took our years of experience that started back in 1970 to help us along that journey. We are at our best when our customers are pushing us, and they're representing the brands that they do. It brings us with them, right? They have big problems, we support them. We open the doors to our innovation, and you're gonna see those products again today. Hence, the trusted advisors that we are. You're gonna hear when you talk to our engineers about the details of the purpose-built vehicle that we have out here today. Also, our customers, they have green mandates that are driving the need for EV. Every one of them has put a statement out there. This is gonna help them achieve that level. To reduce greenhouse gases, to reducing carbon footprint, net zero emissions, one thing's clear, our customers are driving the adoption of EV. They're pushing hard. They're pushing us. We are seeing how our customers are confronted with the emerging emission regulation, right? You can see a bunch of the CARB states. You see it in California, right? There's more talk about every day it's coming out. From a governmental mandate perspective, many states that I just mentioned, right, are mandating zero emissions, and they're pushing and helping accelerate what you're gonna see today. Back in June of 2021, came to our board, we got approval to start getting into the EV space. We started with a white sheet of paper. We had nothing, right? We wanted to make sure we want to take the learnings, but not all the old habits from the old ICE delivery vehicle, as we call our walk-in van. We searched for Class 3, as I mentioned earlier. We couldn't find it. What we found was a unibody, a skateboard, nothing that would meet our customers' demands. We also found a lot of people taking ICE vehicles, converting them to an EV. We weren't gonna do that. Our product development started, as I mentioned, from the ground up, blank sheet of paper. We do have a five-phase, very robust engineering process, development process that we adhere to. One of our board members is here today, so I can't. He wasn't part of this. He understands it, right? Some of our board members are saying, "Can you go faster? Can you shorten it up?" Our answer was no. We wanna make sure. They wanna be first to the market. We said, no, we wanna be best to the market. We wanna make sure our vehicle hits all the milestones. Right now, we're in phase 3 of a 5-phase process, and we're hitting all those milestones, right? Yeah, sure, there's challenges. It's a development project. The team can overcome those, and they're doing a great job doing it. One thing I have said, you've heard me say, we would not take any orders till we understood the range. You've seen a lot of people commit to a range, different things happen, they don't achieve it. We made sure we hit our range, right? We're very satisfied with where we're at, 150 miles, right? I think those of you that know us, if we say that, you can take it to the bank, we'll execute on it. Price, we feel we're very competitive in a market. We know where everybody else is at. For our size of vehicle, range, we're very comfortable with our price. Now, I'm excited to tell you about our right to win. If you look at this slide, right? I wanna start by saying this isn't new to us. I feel that actually should be repeated. This is not new to us. We started building chassis for the fire truck industry, for the RV industry many years ago, back in 1975. In addition, we've been designing, in the middle, bodies for more than 50 years. We put those together, right? With our chassis that we've been building, with all the technology we've added, right? We're chosen chassis for the RV space and the Class A diesel, right? Then our 50 years of working with our customers on the body, that is something that other people don't have. They can't present that, right? Because these vehicles have to last 15+ years. Hard-pressed for a unibody to make it that long. Our team took our work-driven design, which is that 5-phase development process, right? We understand the customer's needs. We put it together, and you can see on the right, we have our Blue Arc vehicle. 1 + 1, I like to say, does equal 3. I know accountants say that doesn't add up, but we're getting more out of it because of the years of history that we bring to this new EV product. When we looked at it, right, as you can see in the chassis, right? We're comfortable about the chassis. We have the experience. We know what it takes to test it. If you look at our frame rails, you're gonna see it outside to my right, your left. The frame rails, we developed them wider. That's why we started from the ground up white sheet of paper. We didn't take an ICE and convert it. The batteries fit in between the frame rails, obviously safer. These vehicles are gonna be in accidents. Every vehicle has the potential to be in an accident. You look at our competitors' chassis. Some of them have converted an ICE chassis to an EV, right? Some of them have batteries hanging on the bottom. Some have batteries hanging on the side. I think when you look at ours, you're gonna see how clean that chassis is and how elegant, right? Eric would say, "How beautiful." He designed it. He's a little biased. If you have the batteries hanging outside, as I just mentioned, there can be an accident. You could have a thermal event. We don't want any of that, right? We're hoping that we design safety into the vehicle instead of trying to hope the driver will be safe. All the power units, electrical cables, brakes, everything, as I mentioned, is between the two frame rails, and you'll see it out there. Why is that important? One, safety, but you have other uses where people may wanna put boxes on the side, bolts to the side. They may have some of their own power units if we have a lift gate on the back. We understand the chassis we get today that are ICE are clean. We wanna keep it exactly the same. A lot of our players, right, in the space talk about range. A lot of them struggle to meet it, right? Our range is tested. How is it tested? It's tested like we test an ICE vehicle. Half loaded through our testing cycle. We're comfortable with that cycle. We've done it in the ICE space, like I said, for the 50 years. We know it's gonna perform, and you're gonna hear more about it from Eric when he's walking you through the pros and cons of ours versus others and why we feel and we're confident about our EV vehicle. Again, when we looked at it, we're very comfortable, and we know what our customers want. You can see it from the cab design that's up on the screen right now. We know the efficiencies they're looking for. We know the driver use cases, the driver ergonomics. Frankly, we know everything about the driver. We do ride-alongs with them. We sit and talk to them. We ask them what they like and don't like. We're always trying to better our vehicle. Even the ICE vehicle we have, we're always working with them. We know their preferred vehicle step height, right? We know the second step. First one's higher. We know the second, and we know the third step height. Right? When they get in the vehicle, they want a flat floor. They want the shelving packages at certain heights. That's space planning, et cetera. Right? When they're on the outside, we know the vehicle bumper height. It's standard. Loading heights. They do not wanna change their entire distribution center process. They have an ICE vehicle, which is the white one you'll see out there. Our Blue Arc, exactly the same from these features that I'm talking about. It's all about driver safety, right? The loading heights. They don't wanna bend. The equipment that comes into it. For us, building a delivery van is second nature. It's what we do every day. This is my favorite slide. I'm gonna tell you what it says to me. It says, "We stand alone." We didn't wanna play in a Class 2 space. We've talked about that, right? We knew all the Class 2 OEMs that build vans, cargo vans, we knew they were gonna EV their vehicle. Guess what? They're all doing it. We also feel, right, when you get into the right side of the slide, Class 6 and 7, they're gonna do the same. There's this empty void in Class 3, 4, and 5. That's our wheelhouse. That's where we play every day. We feel very comfortable with our vehicle in that space. The reason we have such a big space there is we're the only one that has designed and can manufacture both the chassis and the body under one building. We don't need to move it around. We don't need other partners. We're doing everything internally ourselves. This slide is also very important because a lot of the new players to the space don't have the operational experience that we do. Again, we've been in this business building vehicles for almost 50 years, right? Chassis for about the same. We're gonna leverage our national footprint. That footprint, doesn't say it on here, in our other decks, it will tell you that that footprint can touch 85% of the U.S. population within 3 hours of one of our locations. We can't get everybody, but usually, if you hit that much of the population, that's where the vehicles are gonna be in use. Correct? Right? We're gonna leverage our existing footprint to build these vehicles along with a strong management team. What does that mean? That means we don't have to do a greenfield site. We don't have to start a whole new team. We already have the team in place, and we have the facility in place, and it's already been building vehicles of this same type. We have all the experience there. This slide talks about the engineering talent and our culture of innovation. What I like to say is I get these guys excited, and I step out of the way. Basically, it's the culture of innovation. Let their minds go, let them come up with ideas, and then try to figure out how do we move that into the market, right? First, you're gonna see outside is our Power Cube. We call it charging infrastructure. It's like a microgrid. It'll be out to your right, as part of the stations that you'll be going through. The modular cab, Eric's gonna walk through those. Scalable chassis design, Juris Pagrabs will be walking through these. These are the leads of these products. Wrap-up slide for me, right? Why are we here? 50 years R&D, engineering, manufacturing expertise. Commercial-grade experience. Customer-focused innovation and tailored solutions. Positioned to deliver product performance and quality at scale. We're gonna accelerate the growth in this EV space, and I'm gonna turn it over to John Douyard to talk about some more details. Thanks, Daryl. As we continue to build on the company's transformation, I'm very excited to detail our next phase as an industrial growth company. I'll walk you through our right to grow, which is driven by the product capabilities and differentiators, as well as our team's capabilities that Daryl talked about earlier. Let me take a few minutes to detail our thinking here. As we look at realizing our growth potential, I'd first like to highlight three points that I'd like you to take away from today. First is the revenue multiplier. We can access this by building an integrated EV vehicle versus just being a body builder that we are today, which is a material difference for us as we move forward. Second is the market expansion by increasing our scope and our value-added content to the vehicles. The third is our committed financing. When you look at the strength of our financial position at this point, the cash flow that we're generating, the solid bank relationships that we have, we have more than adequate liquidity to be able to fund this project without raising any external capital. Now I'll walk you through these in a little bit more detail. In the transition from ICE to EV, there are many companies that are out there who are taking defensive positions in order to ensure that their revenue doesn't deteriorate over time. That's not the case for us. By becoming an integrated vehicle manufacturer, including both the chassis and the body, we greatly expand our addressable market and gain access to chassis revenue, which is at a significantly higher price point than where we operate today. On the slide, you can see the power behind this expansion. The top row highlights where we are today. Utilimaster, a fantastic brand, market leader, in parcel delivery as well as truck body and walk-in van development. That market today is about a $5 billion space. If you look at an average walk-in van, it's $30,000-$40,000 per body. When you accelerate that and look at us under Blue Arc, we now have access to a much larger market with both the chassis and the body that we're estimating to be north of $20 billion. An electric vehicle is gonna sell for more than four times what a body costs of a traditional walk-in van. It's a significant opportunity for us where we're recognizing north of $150,000 per vehicle, which magnifies the revenue and profit opportunity for the company as we move forward. What does this mean for us? We previously provided an outlook back in June of 2021. At the time, we said we'd have EV revenue in 2025 of about $150 million at about 1,000 vehicles. As we sit here today, based on the learnings of the last 15 months since we made the announcement, including the performance of the vehicle, the feedback that we've gotten from customers and suppliers, and based on the pre-order, which we recently announced back in September, we feel the opportunity is significantly higher. That said, if you look at the left side of this chart, we don't expect this to transition overnight or the EV to transition to complete overnight. Our expectation is that we'll have about 3,000 units by 2025, and then you'll start to see further acceleration just in the industry in general as more charging infrastructure becomes more prevalent. That said, you know, this is a significant item for us. Those unit volumes translate to about $500-$600 million of revenue, which is up more than $400 million of revenue versus what we laid out in June of 2021. Finally, on the right side of the page, you can see the profit contributions here. We'd certainly expect to have a learning curve early on in production. We're building, to Daryl's point, we are leveraging existing footprint, and that will certainly help. There will be a learning curve as well as some fixed costs and those types of things that we will need volumes to support. We expect to be able to break even as we look at this next year before accelerating into double-digit territory out in 2025. As we look at this and we look at the $500 million-$600 million of revenue, plus the revenue from 2024, we look at the margin of that basically offsetting the initial investment that we are making into this product. We feel very comfortable with the payback and the returns that we expect to get out of this EV initiative for us. Which brings us back to another differentiator for us, particularly when you compare us to other companies in the EV industry, which is our strong balance sheet. Our team has been incredibly disciplined in the management of the project, and our total investment continues to be in line with what we said in June of 2021. Coming into 2022, we indicated that it was gonna be a big R&D year, and it has been. We definitely had some headwinds this year from a profit perspective, but we do expect that to turn as we get into 2023 and provide some earnings tailwind for us given a decline in R&D. We will see some additional capital as we do get into production, but we're very comfortable with that. I think as you look at the discipline, the free cash flow, the low leverage, and the capital structure that we have, we're very well positioned to deliver. In summary, we're energized for the future. Our world-class team is delivering shareholder value through innovation. We have a right to play because we've repositioned the company to be able to invest in ourselves in the future. We've transformed the company before, and we have delivered on all our EV commitments, whether that's timeline, vehicle specifications, or total project investment. We have a right to win because we're differentiated from our peers. We have nearly 50 years of experience, as Daryl talked about, building chassis and bodies. We know how to manufacture product. We have a best-in-class supplier and partner groups on this project. Maybe most importantly, we know what our customers want at the end of the day. We have a right to grow because we're well capitalized and disciplined. The expansion into being an integrated vehicle manufacturer opens up many new markets for us, and significantly changes the revenue and profit opportunities of the company going forward. For a company that more than doubled since 2015, we're still confident saying that our largest growth opportunity is still ahead of us. We are an industrial growth company. We are Blue Arc. We are The Shyft Group. We're ready to play, we're ready to win, and we're ready to grow. With that, thank you, guys, for your interest and your attention, and I'll turn it over to Randy for some questions. Great. Thanks, Jon. Here in the room, Nicole will be going around the room with the handheld mic. If you have a question, if you could raise your hand, identify yourself and your firm, that would be appreciated. For those webcast participants, if you can email to the address shown on the screen, investor.relations@theshyftgroup.com. With that, Nicole, any questions in the room? Great. All right, it's Mike of D.A. Davidson. Thanks for having the event today, guys. I really appreciate it, as always. I just wanna follow up on your comments, Jon. The amount of upside on the EV business that you put out here on the slides today and your comments is actually quite a bit from what you put out there at 154. Does this now add to the $1.75 billion outlook at 2025 revenue? Is it now like, you know, $2 billion plus, or does it take away from some of the M&A or other initiatives you have planned? I think Daryl can repeat that. No, I think just to repeat the question in the room, Mike asked whether the new EV outlook that we provided, which is higher than provided at June 2021, would change the original $1.75 billion revenue outlook that we provided. I'll let Jon respond to that. Sure. i t's a good question. I mean, I think as you look at the additional $400 million of revenue, I would say comfortably that it certainly de-risks the growth path to $1.75 billion, right? Is there an opportunity for it to exceed that? I think the potential is there. As we look at it today, you know, the M&A environment's certainly different than it was 12, 15 months ago and things like that. We would look at it at a minimum as de-risking the $1.75. Great. Also that new outlook you've got, is that the Class 3 only? The Class 3 and the Class 5 you had mentioned in the past? Or is it actually a range of other vehicles? No. It's so the question is whether that was just Class 3, and that includes the Class 3, 4, 5. Just wanna also clarify, does this include upfitting the E-Transit or other Class 2s? That does not. So it's- It's purely the Blue Arc. Those vehicles. Full vehicle revenue and profit. Great. I'll pass it along. Thanks, guys. Thanks, Mike. Mike. Thank you. Felix, to your right, to the left. Is this on? All right, here we go. Felix Boeschen with Raymond James. Again, thank you for hosting this. I just have a couple follow-ups. The first one is sort of on the volume outlook on the overall EV. You know, you had talked about a 2,000, you know, pre-order. You had talked about, I think, 3,000, you know, call it in 2024 in that ramping. Maybe walk us through how you're thinking about taking orders and ultimately what would get you, say, above that 3,000 or below, really trying to figure out if it's a demand question or a supply question at this point. Yeah, maybe I'll start, and then Daryl can certainly jump in. I mean, if you look at what we laid out over the next three years, it ends up, you know, being about 5,000 vehicles. I think to your point, the pre-order makes up 40% of that, which we noted on the slide. I t gives some credibility and confidence, I think, to our ability to achieve that. More broadly, the customer feedback, the dealer feedback continues to be tremendous. We would expect to continue to sign or to build out our dealer network across the country here over time. We, continue to have discussions with partners about that. I think, you know, there's certainly other areas, and Daryl touched on it in his presentation, but other areas that we can take this and whether that ends up being, you know, just call it a cab chassis or something different that then expands the market even bigger than that and more broadly to it. I think as we look at, call it, you know, $550 million, that's obviously a material part of where the company is today. Do we think there's opportunity above that? I don't think Daryl would say he's ever put out an aggressive number. I think, you know, there is certainly opportunity beyond that. Based on the visibility that we have, I mean, the adoption rate and how quickly this moves, I think will also continue to be a question and probably play out over the next couple years, which maybe governs that a little bit. You know, we're confident in the number and do think there's opportunity beyond that. The only thing I would add to it is I think it's gonna be a demand issue, not a supply issue. Sorry, supply issue, not a demand issue. Okay. I think demand is gonna be there. They just can't get supply today, and we're here to help them. Right. I wanted to follow up on some of the R&D costs you had laid out here. I guess I'm trying to understand, first of all, you had talked about break even, I think next year. Is that right on EV? Sorry, the slides aren't in front of me. What I'm first trying to understand, does that include all the R&D costs associated with that, or was that more of a gross margin type commentary? No, that was an EBITDA overall project commentary. C ertainly we're spending close to $30 million this year. That does step down next year, which again provides some tailwind for us. We start to see margin contributions. I think, you know, Daryl said this before, and he certainly drilled it into our team internally. We're not gonna be upside down on selling these vehicles. You know, as he mentioned, we're comfortable with the price. I think, you know, we got a lot of feedback even today that customers are comfortable with the price, particularly when they see the quality of the product as well as the quality of the supply base we're using. We feel comfortable with the bill of material. We feel comfortable with the production and some of the analysis that we've done on there that we'll be, you know, having positive gross margin here. It is just some of the fixed costs and some of the project costs that offsets it here in the early days. Got it. Maybe just my last one, you talked about 12%, I'm gonna call Blue Arc margin in 2025, I think. Can you help us sort of bridge from that break-even in 2023 to the 12%? I know you had three buckets. I imagine volume's a really big one. I'm just trying to understand sort of the give, puts, and takes to kinda get you to that 12. Yeah. I mean, to your point, volume is the big one, right? You're going from hundreds of units next year to 3,000, so the acceleration of revenue is very significant. We're obviously building out a team. We're leveraging our team, but we do have to build out additional members to support the launch. S ome of that fixed cost will just get levered over time. I think the other piece, as you work with the supply base, is committed quantities. As you're able to commit to more volume, you know, you're able to get better pricing from that perspective. Those would be the two that I would point to here over the next couple years. Helpful. I appreciate it. Thanks, Ed. Thank you. Anybody else here in the room? If not, we didn't have anything from the internet, but Mike, a follow-up? Yeah. Hey, Mike Shlisky, D.A. Davidson. A quick follow-up question for you, from earlier. John Douyard, you had mentioned that you know all the step heights, the first step, the second step, the third step, et cetera, and that the customers didn't wanna change much in their warehouse operations- Right To use your vehicle. Do they ever want any improvement? I mean, I've seen two-step rather than three-step walk-in vans. Do they not want that? Do you wanna have it exactly the same, or are you trying to find the niche of product, an improvement in some of those ergonomics and size and strength? Yeah. I think, Mike, when you talk to the drivers, right? Most of them are coming out of the vehicle with boxes in their hand, so it's all muscle memory. They know it's one, two, three, right? Or whatever the steps are in the walk-in van. When they're coming back to the vehicle, most of them would have packages going in. For them it's muscle memory. I learned this in the fire industry, right? These guys are waking up in the middle of the night, and they just wanna reach. That's all. They know where the switches are. They know where the handles are. Same thing with the walk-in van. When they get to the vehicle, they know what step they have to go up to. If it's different, there's a chance that there could be an injury or some type of a fall. They wanna keep it as common as they can. That's why you'll see our chassis height's almost exactly the same as what we would get today in an ICE chassis. Great. Thanks. Yeah. I was hoping it'd all be questions for Jon, but you gave me a softball. Thanks for taking my question. David Dye from Tebow Capital. First question is on the guidance. First, does it incorporate the cube sales at all, and what is the interplay between the cube and the Blue Arc? Do you sell it as a package or bundle? Thank you. The revenue that we've put out there does not include anything from a Power Cube perspective. A s we look at that, and particularly as we talk to more customers, they're really two very different offerings. There is an opportunity for a fleet operator who wants to put infrastructure in a lease facility to buy the Power Cube when they're buying vehicles, but there's also a host of other applications that we've been able to find. We haven't. I would say we're still trying to crystallize what that market looks like a little bit. W e have not committed to any revenue from that necessarily. We think the opportunity could potentially be very big. Very good. With that, it looks like there's no other questions in the room. Thank you to everyone that joined us via webcast. We'd like to thank everyone here in the room. At this time, I'd like to have the operator disconnect the call. Then our Chief Communications and Marketing Officer, Carrie Wright, will come up for participants here in Michigan and detail the rest of the evening. Thank you.