Archer Aviation Inc. · NYSE:ACHR
Archer Aviation — Investor Presentation (August 2023)
34 slides from Archer Aviation's investor presentation, Aug 10, 2023
Slide 1: Investor Presentation July 2023
C O N FI D EN TI A L C O N FI D EN TI A L Investor Presentation JULY 2023
Slide 2: Disclaimer and forward-looking statements
C O N FI D EN TI A L C O N FI D EN TI A L 2 This confidential presentation (this “Presentation”) contains certain information pertaining to Archer Aviation Inc. (collectively with its subsidiaries, the “Company”). This Presentation is being provided solely to assist the recipient in determining whet
Slide 3: Disclaimer (continued)
C O N FI D EN TI A L C O N FI D EN TI A L 3 For further information with respect to the Company, including the risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed under the caption “Risk Factors” in the Company’s Annual Report on Form
Slide 4: Urban Congestion Is Not Sustainable
C O N FI D EN TI A L Urban Congestion Is Not Sustainable 4 – In 2023, 56% of the world’s population lived in cities according to the World Bank, with their projection being that the urban population will more than double its current size by 2050, at which point nearly 7 of 10 people will live in cit
Slide 5: Market Opportunity: Urban air mobility $66B by 2035
C O N FI D EN TI A L C O N FI D EN TI A L 5 C O N FI D EN TI A L Morgan Stanley predicts urban air mobility to be a $66B market by 2035, and a $1T market by 2040(1) MARKET OPPORTUNITY (1) “eVTOL/Urban Air Mobility TAM Update,” by Morgan Stanley, dated May 6, 2021, available at: https://advisor.morga
Slide 6: Company Snapshot
C O N FI D EN TI A L 6 C O N FI D EN TI A L COMPANY – Raised nearly $1 billion of capital – Went public in 2021 on NYSE – ~600 person workforce – Headquarters, R&D and initial manufacturing facilities all located in San Jose, CA – Flight test facilities located in Salinas, CA – Construction is under
Slide 7: Capital Raise Overview and Liquidity Summary
C O N FI D EN TI A L Capital Raise Overview and Liquidity Summary CAPITAL RAISE OVERVIEW – Archer is looking to raise $150M of total capital ▪ Stellantis has indicated interest in allowing an early draw down on the $70M second tranche under the existing forward equity purchase agreement (FPA) entere
Slide 8: Aircraft Development
C O N FI D EN TI A L C O N FI D EN TI A L Aircraft Development 8 8 TRACKING OUR PROGRESS
Slide 9: Final Assembly Of Our First Midnight Is Now Complete
C O N FI D EN TI A L C O N FI D EN TI A L Final Assembly Of Our First Midnight Is Now Complete 9
Slide 10: Key Aircraft Development Takeaways
C O N FI D EN TI A L C O N FI D EN TI A L 10 Key Aircraft Development Takeaways COMPLETED ALL DESIGN REVIEW GATES Successfully completed all aircraft program design reviews, including CoDR (conceptual design review), PDR (preliminary design review) and CDR (critical design review) VALIDATED AIRCRAFT
Slide 11: Midnight Electric Vertical Take-off & Landing Aircraft
C O N FI D EN TI A L Midnight ADVANTAGES Safety Targeting certification at levels similar to today’s commercial airliners Sustainable All electric, no local emissions Low Noise ~100x quieter than a helicopter(1) Cost Goal is for consumer pricing to be competitive with ground based ride share PERFORM
Slide 12: Certification
C O N FI D EN TI A L C O N FI D EN TI A L Certification 12 12 TRACKING OUR PROGRESS
Slide 13: Advancing Rapidly Through First Stages of FAA Certification
C O N FI D EN TI A L C O N FI D EN TI A L 13 Advancing Rapidly Through First 3 Stages of FAA Certification Process, As We Prepare to Begin Final Stage of Certification Program in Early 2024 - Flight Testing for Credit with the FAAC O N FI D EN TI A L
Slide 14: Key Certification Takeaways
C O N FI D EN TI A L C O N FI D EN TI A L 14 Key Certification Takeaways Safely integrating eVTOL aircraft into the U.S. national airspace in 2025 is a top priority at the FAA AIRCRAFT CERTIFICATION BASIS ESTABLISHED – In November 2022, we finalized our Certification Basis with the FAA – In December
Slide 15: Manufacturing
C O N FI D EN TI A L C O N FI D EN TI A L Manufacturing 15 15 TRACKING OUR PROGRESS
Slide 16: Leading The eVTOL Aircraft Industry In Building Out Manufacturing Capabilities
C O N FI D EN TI A L 16 C O N FI D EN TI A L Leading The eVTOL Aircraft Industry In Building Out Manufacturing Capabilities *IMAGE DEPICTS RECENT RENDERING OF ARCHER’S GEORGIA FACTORY, WHICH IS CURRENTLY UNDER CONSTRUCTION
Slide 17: Significantly Expanded Our Strategic Partnership With Stellantis
C O N FI D EN TI A L C O N FI D EN TI A L – Partner since 2020 and significant equity investor in Archer, Stellantis is one of the largest automakers in the world – In January 2023, we agreed to join forces with Stellantis to manufacture our production eVTOL aircraft in high-volumes ▪ Stellantis is
Slide 18: Manufacturing & Test Lab Facility in San Jose
C O N FI D EN TI A L C O N FI D EN TI A L 18 Stood Up Manufacturing & Test Lab Facility in San Jose, California – This facility is capable of producing 10s of aircraft per year – This is where we will build the production aircraft that will be used in our “for credit” certification testing with the
Slide 19: High-Volume Manufacturing Facility Build Out With Stellantis
C O N FI D EN TI A L Archer’s new manufacturing and integrated test lab at 77 Rio Robles EXTERIOR WALL PANEL FOR COVINGTON FACILITY Charging Ahead With Our Industry Leading High-Volume Manufacturing Facility Build Out With Stellantis 19 *IMAGE OF ONGOING CONSTRUCTION AT ARCHER’S GEORGIA FACTORY
Slide 20: Commercial Operations
C O N FI D EN TI A L C O N FI D EN TI A L Commercial Operations 20 20 TRACKING OUR PROGRESS
Slide 21: Deepen Our Strategic Commercial Relationship with United Airlines
C O N FI D EN TI A L C O N FI D EN TI A L 21 Continue to Deepen Our Strategic Commercial Relationship with United Airlines *IMAGE DEPICTS SIMULATED FLIGHT
Slide 22: Key Commercial Operations Takeaways
C O N FI D EN TI A L C O N FI D EN TI A L Key Commercial Operations Takeaways – United is a major strategic partner: investor, operating partner, and flagship customer – Oscar Munoz (ex-United CEO and Chairman) is a member of Archer’s board of directors – In August 2022, we received a $10M cash depo
Slide 23: Proven & Experienced Team
C O N FI D EN TI A L C O N FI D EN TI A L Proven & Experienced Team 23 23 TRACKING OUR PROGRESS
Slide 24: Expanded Our Proven and Experienced Team
Adam Goldstein FOUNDER, CEO Previously Founder at Vettery Geoff Bower CHIEF ENGINEER Previously Chief Engineer at Airbus Vahana Michael Schwekutsch HEAD OF POWERTRAIN Previously head of Powertrain at Apple SPG & VP of Engineering at Tesla Tom Muniz COO Previously VP of Engineering at Wisk Julien Mon
Slide 25: Our Path to Commercialization
C O N FI D EN TI A L C O N FI D EN TI A L Our Path to Commercialization 25 25
Slide 26: Target Timeline to Commercial Operations at Scale
C O N FI D EN TI A L Target Timeline to Commercial Operations at Scale 26 2021 – 2025 2025 – 2028 2028+ COMMERCIALIZATION & EARLY OPERATIONS – Commence UAM operations with a focus on “trunk” and “branch” approach – Use existing real estate (helipads, airport FBO’s, retrofits) – Ramp manufacturing vo
Slide 27: Target Use Cases
C O N FI D EN TI A L AERIAL RIDESHARING CARGO & LOGISTICS EMERGENCY SERVICES MILITARY (NON-KINETIC) 27 Target Use Cases C O N FI D EN TI A L
Slide 28: Urban Air Mobility Value Proposition: Saving Time on Urban Commutes
C O N FI D EN TI A L 28 Urban Air Mobility Value Proposition: Saving Time on Urban Commutes C O N FI D EN TI A L – UAM is focused on moving people between 20 to 50 miles, in and around city centers where commutes can take on average an hour or more at a cost that is competitive with ground-based rid
Slide 29: Business Model
C O N FI D EN TI A L C O N FI D EN TI A L ARCHER AIR – AERIAL RIDE SHARING — Archer’s core business — Initially targeting 50% of revenue mix — Targeting 40%+ GM Two Unique Potential Revenue Streams 29 ARCHER DIRECT – AIRCRAFT OEM — Can provide meaningful upfront cash flows & revenue diversity — Init
Slide 30: Key Takeaways
C O N FI D EN TI A L C O N FI D EN TI A L Key Takeaways 30 30
Slide 31: Key Takeaways
C O N FI D EN TI A L 31 – Business case led tech strategy to: ▪ Manufacture and operate at scale an aircraft that is piloted, can carry 4 passengers (i.e., ~1,000 lbs of payload), can conduct rapid 20-mile back-to-back missions with minimal charge time in between and is competitively priced with gro
Slide 32: Archer Comparison to Publicly Traded Peers
C O N FI D EN TI A L EveArcher Archer Comparison to Publicly Traded Peers CASH & CASH EQUIVALENTS1 EQUITY VALUE6 (1) Chart is based on data in public securities filings and represents cash and cash equivalents and short-term investments as of March 31, 2023 unless otherwise specified. (2) Includes $
Slide 33: Key Announcements
C O N FI D EN TI A L C O N FI D EN TI A L 33 Key Announcements – Archer has recently executed two new contracts representing the largest total contract value with the U.S. Air Force of any company in the eVTOL industry; with a total value of up to $142M(1) ▪ Archer has been partnering with the DoD t
Slide 34: Thank You
C O N FI D EN TI A L Thank You C O N FI D EN TI A L
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