Archer Aviation Inc. · NYSE:ACHR
Archer Aviation — SPAC Merger (February 2021)
53 slides from Archer Aviation's SPAC merger presentation, Feb 10, 2021
Slide 1: Archer Investor Deck 2021
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 1 ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL
Slide 2: Disclaimer and forward-looking statements
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 2 The Company disclaims all warranties, whether express, implied or statutory, including, without limitation, any implied warra nti es of title, non - infringement of third - party rights, merchantability, or fitness for a particular purpose. The in
Slide 3: Certain Risks Related to Archer Aviation Inc.
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 3 Certain Risks Related to Archer Aviation Inc. All references to the “Company,” “Archer,” “we,” “us” or “our” in this presentation refer to the business of Archer Aviation Inc . The risks presented below are certain of the general risks related to
Slide 4: Combining with Atlas Crest in the Next Phase of its Journey
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 4 KEN MOELIS Chairman of Board of Directors MICHAEL SPELLACY Chief Executive Officer Archer Combining with Atlas Crest in the Next Phase of its Journey • Chairman and CEO of Moelis & Company • Global leader in strategic advisory industry with almost
Slide 5: Capital Structure, Transaction Structure and Valuation
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 5 CAPITAL STRUCTURE The transaction will be funded by a combination of Atlas Crest cash in trust, newly issued Archer ordinary shares, and proceeds from a PIPE Transaction expected to result in $1.1 billion of total proceeds raised to fund growth, c
Slide 6: Key Investor Highlights
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 6 Designing and developing electric vertical takeoff and landing (eVTOL) aircraft for use in Urban Air Mobility Morgan Stanley estimates Urban Air Mobility to be up to a $1.5 to approx $3.0 trillion industry by 2040 (1) Highly experienced team with
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Slide 8: Welcome
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 8 Archer is building the world’s leading urban air mobility company. Our vision is to improve mobility and drive the world towards a zero - emissions future. ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 8 WELCOME
Slide 9: Visionary Entrepreneurs & Investors Backing Archer
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 9 MARC LORE ADAM GOLDSTEIN Ken Moelis Biggest deal maker of our time: Founder of Moelis & Company (advised on $3.6 trillion of transactions since 2007) BRETT ADCOCK ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 9 Marc Lore First & largest Arche
Slide 10: Proven and Experienced Team
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 10 BRETT ADCOCK Co - Founder, Co - CEO Previously Co - Founder at Vettery ADAM GOLDSTEIN Co - Founder, Co - CEO Previously Co - Founder at Vettery TOM MUNIZ VP of Engineering Previously VP of Engineering at Wisk DONALD STEWART Interim CFO Previously
Slide 11: $1.5+ Trillion Total Addressable Market
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 11 $1.5+ Trillion Total Addressable Market 1 ARCHER • Represents one of the largest potential global markets • Underlying secular drivers include: — Unprecedented traffic congestion — Improvements in electric power systems — A growing need for a zer
Slide 12: Strategic and Commercial Partnerships
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 12 PARTNERSHIP STRATEGIC BENEFITS Strategic and Commercial Partnerships 1 ARCHER • Orders worth $1.0 billion plus option for additional $500 million of aircraft • Represents largest eVTOL purchase in history (1) • Key equity holder and strategic par
Slide 13: Elite Engineering Team with 200 Years of eVTOL Experience
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 13 GEOFF BOWER Chief Engineer ERIC Certification Lead FELISA Lead Systems Engineer JESSE Sr. System Safety Engineer VICENTE System Safety Engineer JOE Structures Lead In addition, we’ve added Commercial Aerospace ELITE ENGINEERING TEAM WITH 200 YEAR
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Slide 15: Maker: Helping to drive the world towards a zero-emissions future
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 15 0 EMISSIONS Helping to drive the world towards a zero - emissions future $3.30/MI Affordable costs per passenger mile, comparable to a UberX 60 MILES, 150MPH Enabling trips that are 10x faster than a car 45 DB Maker will cruise at 2,000 ft and 10
Slide 16: Maker
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Slide 17: Maker
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Slide 18: Maker
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Slide 20: Business Model Designed to Take Advantage of a Massive TAM
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 20 We have two potential unique revenue streams which feed each other and catalyze the full ecosystem: ● Archer Direct - Aircraft OEM Business ● Archer UAM - Aerial Ride Sharing Business Business Model Designed to Take Advantage of a Massive TAM ARC
Slide 21: Archer Direct – Aircraft OEM Business
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 21 Archer Direct – Aircraft OEM Business PRIVATE AND CONFIDENTIAL 21 3 BUSINESS MODEL • Archer’s goal is to build the next great U.S. based aerospace manufacturer • Archer is the only eVTOL company in the world with a contract from a major airline,
Slide 22: Archer UAM – Aerial Ride Sharing Business
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 22 Archer UAM – Aerial Ride Sharing Business • Currently UAM includes moving people less than 100 miles in city centers and beyond • Early launch markets will focus on highly congested cities such as Los Angeles, Dallas - Fort Worth, and Orlando • T
Slide 23: Manhattan to JFK Transportation Alternatives
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 23 Manhattan to JFK Transportation Alternatives (1) Pulled from Blade.com Website 1/22/21, NYC to JFK 3 BUSINESS MODEL
Slide 24: eVTOL can generate 18x more revenue than a ride sharing car
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 24 • Cost - efficient solution for the masses • Faster and more convenient than terrestrial transportation • Highways in the sky require minimal new infrastructure during operation eVTOL can generate 18x more revenue than a ride sharing car 3 BUSINE
Slide 25: Urban Air Mobility is Projected to be a Highly Profitable and Enormous Market
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 25 • In order to drive profitability, Archer plans to operate its fleet of vehicles for Urban Air Mobility • Direct operating costs will decline over time through scale manufacturing, battery energy density improvements, and autonomy • Over the life
Slide 26: Timeline
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 26 2027 - 2030 2024 - 2027 2021 - 2024 2018 - 2020 Globally scaled operations Launch fully autonomous capabilities to increase safety, reduce costs, and scale faster Prepare for launch in Europe, Middle East, and Asia Help drive the world to a zero
Slide 27: Archer is Positioned to Win
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 27 CERTIFICATION U.S. FAA U.S. FAA NEW ZEALAND CAA (1) EUROPE EASA EUROPE EASA CHINA CAA PASSENGERS/VEHICLE 4 4 2 4 1 2 PILOTED VS AUTONOMY (1) PILOTED PILOTED AUTONOMOUS PILOTED PILOTED AUTONOMOUS END MARKET URBAN AIR MOBILITY URBAN AIR MOBILITY UR
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Slide 29: Technology: Engineering & Design Team
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 29 4 TECHNOLOGY Engineering & Design Team Eric Certification Lead Johnny Hardware Lead Giovanni Aerodynamics Lead Alan Flight Controls Lead Damien Avionics Lead Matt Flight Test Lead Scott Chief Avionics Architect Diederik Electric Propulsion Lead B
Slide 30: Technology driving high performance, safety, and mass manufacturing
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 30 MASS MANUFACTURING From day one the aircraft was built for mass manufacturing Stellantis partnership driving key materials selection, lowest cost supplier, and factory automation SYSTEM SIMULATION Big data optimization driving vehicle performance
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Slide 32: Aircraft Design Enables Low Cost, Low Noise, with the Safety of Commercial Airliners
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 32 Custom - designed, high - aspect ratio wing generates lift in cruise for energy efficiency, low noise, high speeds, and long range 12 motors and propellers provide lift for takeoff and landing with high redundancy and high safety with no single p
Slide 33: Designed for Mass Manufacturing
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 33 • Since day one, Archer has designed its aircraft for rapid certification and ease of mass manufacturing • Strike the right balance between performance and complexity • Vertically integrate key enabling technologies (aircraft configuration, elect
Slide 34: Designed for Certification from Day One
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 34 • Archer is certifying in the U.S. with the Federal Aviation Administration (FAA) • Started the FAA certification process in 2020 and approved by the FAA intake board • Archer and the FAA are working towards a Type Certificate in 2024 • Archer’s
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Slide 36: Vertically Integrated Battery for Maximum Performance and Safety
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 36 PRIVATE AND CONFIDENTIAL 36 ENERGY MAX POWER CELL VOLTAGE 74 kWh 672 kW 2.9V - 4.4V HIGH PERFORMANCE Optimal balance of high power and high energy for maximum range Advanced thermal management system enables fast charging and extended cycle life
Slide 37: Redundant High Voltage System Designed for Highest Level of Safety
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 37 PRIVATE AND CONFIDENTIAL 37 System is designed to allow for highest level of passenger safety Proprietary electrical architecture provides both high safety and high performance Six independent batteries, each powering two motors (one forward and
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Slide 39: Avionics and Flight Control Software
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 39 Avionics and Flight Control Software PRIVATE AND CONFIDENTIAL 39 DUAL ANTENNA GNSS HEADING TRIPLE REDUNDANT AIR DATA SYSTEM RADAR + LASER GROUND ALTITUDE ESTIMATION HIGH GRADE INERTIAL NAVIGATION SYSTEM QUAD REDUNDANT FLIGHT CONTROL COMPUTERS TRI
Slide 40: Autonomy
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 40 Autonomy In the future, we expect autonomous aircrafts will allow Archer to realize higher scale and growth REVENUE GROWTH No pilot or operator frees up payload and space for an additional passenger REDUCED COSTS No pilot means reduced operating
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Slide 42: Prime Radiant: Archer's System Simulation
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 42 • In order to build a new transportation service to help people save time and money, we are analyzing live trip data to determine optimal trip locations, cost, and customer experience. Prime Radiant is Archer’s data science program focused on sys
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Slide 44: Designed for Mass Manufacturing
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 44 Designed for Mass Manufacturing • Archer opening up manufacturing facility in 2022 • Leveraging proven aerospace manufacturing techniques • Planning for high volume composite manufacturing 2021 - 2026 STANDARD AEROSPACE MANUFACTURING 200 - 1,000
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Slide 46: Use of Proceeds Tailored Towards Growth and Scale
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 46 KEY GROWTH INITIATIVES • Vertical integration of core enabling tech: batteries and motors • Build out of production manufacturing and testing facilities Use of Proceeds Tailored Towards Growth and Scale IN - HOUSE COMPONENT MANUFACTURING • Focuse
Slide 47: Attractive Long Term Financial Model
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 47 • Robust growth profile • 2026E Revenue represents less than 0.15% of TAM • Attractive EBITDA margins with diversified segments • Autonomy may further increase margins over time • Cash flow breakeven in Q4 2025 • Business model with initial OEM s
Slide 48: Future Revenue Opportunities (not included in forecasts)
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 48 CARGO • OEM sales to the cargo and logistics industry • Potential partnerships with global logistics and retail companies • Department of Defense OEM sales • Vehicles used for passive, high - risk flight missions that favor lower cost operations
Slide 49: Enterprise Value Benchmarking
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 49 ENTERPRISE VALUE BENCHMARKING Source: Investor presentations, press releases, FactSet, CapIQ as of 2/8/2021. (1) Financial projections are based on investor presentations filed with the SEC; Market data based on current SPAC share val ue applied
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Slide 51: Transaction Overview
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 51 (1) Assumes no redemptions from SPAC public stockholders and excludes potential dilution from warrants. Assumes new shares are issued at price of $10.00. (2) Pro forma share count includes 252.5M existing Archer shares, 50.0M Atlas Crest public c
Slide 52: Transaction Overview and Pro Forma Ownership
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 52 • Pro forma enterprise value of approximately $2.7 billion • The transaction will be funded by a combination of ~$500 million of cash and proceeds from a $600 million PIPE: — The PIPE includes participation from leading strategic and long - term
Slide 53: Archer Aviation Inc., Palo Alto, California
ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 53 ARCHER INVESTOR DECK 2021 PRIVATE AND CONFIDENTIAL 53 ARCHER AVIATION INC. PALO ALTO, CALIFORNIA 1880 Embarcadero Rd Palo Alto, CA 94303 ARCHER.COM