Vertical Aerospace Ltd. · NYSE:EVTL
Vertical Aerospace — SPAC Merger (September 2021)
56 slides from Vertical Aerospace's SPAC merger presentation, Sep 22, 2021
Slide 1: Analyst Day: Pioneers in Electric Aviation
1 ANALYST DAY 22.09.2021 PIONEERS IN ELECTRIC AVIATION Filed by Vertical Aerospace Ltd. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934 Subject Company: Broadstone Acquisition Corp. Commission File No.: 001-3950
Slide 2: Legal Disclaimer
2 ANALYST DAY – SEP 2021 LEGAL DISCLAIMER About this Presentation You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document and any question-and-answer session that follows the oral presentation. In accessing the
Slide 3: Led by a Proven Entrepreneur
3 ANALYST DAY – SEP 2021 3 STEPHEN FITZPATRICK Stephen founded and built UK energy retailer OVO Energy to a $7bn revenue, 5m customer business in a heavily regulated industry1 LED BY A PROVEN ENTREPENEUR Source: 1. Ovo Energy and its retail partners serve nearly 5m customers
Slide 4: Today's Speakers & Agenda
4 ANALYST DAY – SEP 2021 4 TODAY’S SPEAKERS & AGENDA MICHAEL CERVENKA Previously Head of Future Business at Rolls-Royce. Over 20 years of civil and military aerospace experience with Roll- Royce Previously CEO of Airbus Urban Mobility, Over 18 years of aerospace experience with Airbus Previously CFO
Slide 5: eVTOL Is a $1tn Market
5 ANALYST DAY - SEP 2021 5 EVTOL IS A $1TN MARKET1 DECARBONIZATION IS IMPERATIVE The transition to net zero is both a societal imperative and also one of the greatest commercial opportunities of our time Source: 1. Estimated by 2040 by Morgan Stanley’s eVTOL/Urban Air Mobility TAM Update: A Slow Tak
Slide 6: This Is Not What the Answer Looks Like
6 ANALYST DAY - SEP 2021 6 THIS IS NOT WHAT THE ANSWER LOOKS LIKE
Slide 7: VA-X4 Is the Answer
7 ANALYST DAY - SEP 2021 7 VA-X4 IS THE ANSWER Source: 1. Based on projected VA-X4 noise level of <40dB in cruise. 2. Illustrative example based on an assumed load factor of 68% and gross margin of 40%. 3. zero operating emissions QUIET <40dB in cruise1 SAFE Expected to certify to EASA commercial ai
Slide 8: The Technology Is Here
8 8 SIGNIFICANT ADVANCES IN TECHNOLOGY THE TECHNOLOGY IS HERE The transformation of the automotive industry and the transition to electric vehicles and distributed electric propulsion has pushed energy storage technology to a point which unlocks eVTOL range of 100+ miles AT THE RIGHT PRICE As well a
Slide 9: Why Vertical?
9 ANALYST DAY - SEP 2021 9 WHY VERTICAL? 1. CERTIFICATION CONFIDENCE The VA-X4 is designed to use existing, certifiable technology by a world class team of engineers and top-tier aerospace partners 2. MARKET LEADING PER- ORDER BOOK $5.4bn global pre-order book for up to 1,350 aircraft1. (~53% of exp
Slide 10: Significant Momentum Since Merger Announcement
ANALYST DAY - SEP 2021 10 SIGNIFICANT MOMENTUM SINCE MERGER ANNOUNCEMENT CMO Arnd Mueller Infrastructure Andrew Macmillan Entered into partnership agreement with Marubeni to explore a Japanese AAM joint- venture including conditional purchase order option for up to 200 aircraft Strategic partnership
Slide 11: Why Vertical?
11 ANALYST DAY - SEP 2021 1.WHY VERTICAL? 2. KEY TECHNOLOGIES 3. CERTIFICATION PROGRAM 4. ORDERBOOK 5. BUSINESS MODEL
Slide 12: VA-X1 and VA-X2 Successful in Flight
12 ANALYST DAY - SEP 2021 12 VA- X1 First flew in 2018 at Cotswold Airport in Kemble, UK. This aircraft has been extensively tested and flown dozens of times. VA-X1. Our proof-of-concept aircraft. A single seater eVTOL with four electric engines, each inside a ducted fan SUCCESSFUL IN FLIGHT VA- X2
Slide 13: Evolved by Design
ANALYST DAY - SEP 2021 13 EVOLVED BY DESIGN MULTICOPTER VECTORED THRUST Vertical VA-X1 2018 Vertical VA-X2 2019 Vertical VA-X4 2020 Rotors provide lift throughout flight Rotors provide lift during vertical take-off and landing Wing provides lift during efficient and fast cruise Proof of concept for
Slide 14: VA-X4 Specifications
14 ANALYST DAY - SEP 2021 14 OPERATING COST c.$1.06 per seat mile for a 25 mile journey CAPACITY 5 People CERTIFICATION EASA/CAA CO2 EMISSIONS 0 VA-X4 RANGE 100+ miles up to an altitude of 5,000ft TOP SPEED 200+ mph Note: Aircraft statistics are expected figures based on company information. 1x Pilo
Slide 15: Engineering Leadership Team
15 ERIC SAMSON Head of Engineering Design release approval on Gulfstream G450, G550. Head of Structures on Gulfstream G650. Project Manager on Gulfstream G500 and Wing G600a LIMHI SOMERVILLE Head of Battery Technical lead for Jaguar I- Pace electric vehicle battery system TIM WILLIAMS Chief Engineer
Slide 16: Own vs Partner Components
16 COMPONENT OWN / PARTNER RATIONALE VERTICAL OWNERSHIP IS STRATEGICALLY IMPORTANT WORLD CLASS PARTNERS EXIST CAPEX NEED FOR CERTIFICATION AND INDUSTRIALISATIO N BATTERY SYSTEM • eVTOLs have unique safety, power & energy needs. No partner solution available • The battery system is commercially criti
Slide 17: Vertical Is Standing on the Shoulders of Giants
6 YEARS OF DEVELOPMENT ANALYST DAY - SEP 2021 17 ELECTRIC PROPULSION UNIT 4 YEARS OF DEVELOPMENT AVIONICS AND FLIGHT CONTROLS TECH ALREADY IN SERVICE COMPOSITE MATERIALS WING TECH ALREADY IN SERVICE 1. BATTERY Targeting battery pack energy density of +220 Wh/kg using high energy dense lithium- ion b
Slide 18: Proven Track Record: Proprietary Battery
18 ANALYST DAY – SEP 2021 18 PROVEN TRACK RECORD Expert team of senior battery engineers have already developed two bespoke batteries designed specifically for eVTOL performance demands. Industry leading certification expertise – Vertical leads the European industry standards group for eVTOL Battery
Slide 19: Revolutionary Rotor Design
19 ANALYST DAY - SEP 2021 19 2. REVOLUTIONARY ROTOR DESIGN HIGH EFFICIENCY Adaptive pitch control and unique rotor stow mechanisms allow maximum performance while minimizing drag HIGH PERFORMANCE High performance computing simulation and testing capabilities enable rapid rotor design evolution. We h
Slide 20: Optimized Aerodynamics
20 ANALYST DAY - SEP 2021 20 3. OPTIMIZED AERODYNAMICS EFFICIENT IN CRUISE Maximized wingspan to achieve cruise efficiency while still fitting onto existing helicopter landing pad footprint HIGHLY STABLE V-tail empennage provides optimum aircraft stability in all flight phases with the lowest weight
Slide 21: Scalable Architecture
21 ANALYST DAY - SEP 2021 21 SCALABLE ARTCHITECTURE Scalability of existing VA-X4 architecture minimizes certification process to add new variants as well as reduced time to market 4. MODULAR DESIGN READILY UPGRADEABLE Retro-fitting of upgraded batteries and automation systems to drive improvements
Slide 22: In Summary
22 ANALYST DAY - SEP 2021 IN SUMMARY WORLD CLASS TEAM WITH SIGNIFICANT EXPERIENCE A DESIGN THAT CAN ADDRESS THE LARGEST MARKET WORLD CLASS PARTNER ECOSYSTEM
Slide 23: Certification Program
23 ANALYST DAY - SEP 2021 1.WHY VERTICAL? 2. KEY TECHNOLOGIES 3. CERTIFICATION PROGRAM 4. ORDERBOOK 5. BUSINESS MODEL
Slide 24: Outstanding Certification Team
24 ANALYST DAY - SEP 2021 24 OUTSTANDING CERTIFICATION TEAM 1,700+ TOTAL YEARS OF ENGINEERING EXPERIENCE PAUL HARPER Head of Certification Chief Airworthiness Engineer for Airbus A380. Compliance Verification Engineer for Airbus A320, A321neo BATTERY 120+ YEARS STRUCTURES 360+ YEARS FLIGHT PHYSICS 3
Slide 25: Experienced in Build and Testing
25 ANALYST DAY - SEP 2021 25 EXPERIENCED IN BUILD AND TESTING 25 TWO PREVIOUS FULL-SCALE PROTOTYPES FLOWN DEDICATED 50,000SQFT TEST FACILITY AT COTSWOLD AIRPORT DEMONSTRATED Successful testing under Civil Aviation Approvals Electric Powertrain and flight controls integration Deliberate motor out saf
Slide 26: VA-X4 Prototype Expected to Fly Q1 2022
26 ANALYST DAY - SEP 2021 26 VA-X4 PROTOTYPE AIRCRAFT EXPECTED TO FLY Q1 2022 WING IN MANUFACTURE ROTORS IN MANUFACTURE SIMULATOR FINALIZED ERGONOMICS FINALIZED BATTERIES IN FINAL TEST ELECTRIC POWERTRAIN TESTED TESTING FLIGHT CONTROLS FUSELAGE IN MANUFACTURE Need to replace with Equipmake Picture
Slide 27: Clear Roadmap to Certification
27 CERTIFICATION BASIS AIRCRAFT TECHNICAL FAMILIARIZATION CERTIFICATION BASIS MEANS OF COMPLIANCE DESIGN ORGANIZATION APPROVAL (DOA) COMPLIANCE DEMONSTRATION EASA CERTIFICATION1 Engagement around how the VA-X4 technical architecture works Define which requirements will apply to VA-X4 Defined standar
Slide 28: On Track for Certification in 2024
28 2018 2019 2020 2021 2022E 2023E 2024E DESIGN ORGANIZATIONAL APPROVAL INITIAL ENGAGEMENT DOA & TC ACTIVITY WITH CAA CONFIRMATION OF PASSING OF DOA CHECKPOINT 2 BATTERY DROP TEST & BATTERY IGNITION TEST DOA GRANTED POA GRANTED AIRCRAFT TYPE CERTIFICATION CERTIFICATION MILESTONES VA-X4 Prototype Fir
Slide 29: Working in Partnership with EASA
29 LIMHI SOMERVILLE Head of Battery DANIEL KENDRICK Senior Certification Engineer ALISTAIR WYATT Senior Avionics Systems Engineer DR SOPHIE ROBINSON Flying Qualities Team Lead PAUL HARPER Head of Certification ANALYST DAY - SEP 2021 29 WORKING IN PARTNERSHIP WITH EASA KEY EUROCAE WORKING GROUPS THAT
Slide 30: EASA Certification Expected to Unlock Global Market
30 30 EASA CERTIFICATION EXPECTED TO UNLOCK GLOBAL MARKET Advanced economies are indicating they will likely align with CAA, EASA and FAA requirements INTERNATIONAL PORTABILITY CERTAINTY OF TRANSFERABILITY HIGH GLOBAL SAFETY STANDARD EASA certification de-risks business against possible hike in stan
Slide 31: In Summary
31 ANALYST DAY - SEP 2021 IN SUMMARY ALREADY ~4 YEARS INTO OUR CERTIFICATION JOURNEY SUCCESSFULLY FLOWN MULTIPLE FULL-SCALE PROTOTYPES ON TRACK FOR CERTIFICATION IN 2024
Slide 32: Orderbook
32 ANALYST DAY - SEP 2021 1.WHY VERTICAL? 2. KEY TECHNOLOGIES 3. CERTIFICATION PROGRAM 4. ORDERBOOK 5. BUSINESS MODEL
Slide 33: Market Leading Pre-Order Book
50 250 1,000 1,500 2,000 2024E 2025E 2026E 2027E 2028E ANALYST DAY - SEP 2021 33 - Secured sizable pre-orders from some of the world’s largest players in the airline industry, leasing industry and helicopter operations - 115% of expected revenues through to 2026E already under pre-order agreements 3
Slide 34: Global Commercial Ecosystem
34 ANALYST DAY - SEP 2021 34 GLOBAL COMMERICIAL ECOSYSTEM Notes: 1. Pre-orders from American Airlines, Avolon, Bristow and Iberojet with a pre-order option from Virgin Atlantic and Marubeni. Avolon has placed up to 250 aircraft with GOL 2. Bristow operate in 15 countries globally. Source Bristow 202
Slide 35: Compelling Proposition and Target Customers
Combined OEM aircraft sales and aftermarket services Launch partners with existing proven demand ANALYST DAY - SEP 2021 35 Helicopters General Aviation Airlines Tourism - Strong proposition that offers compelling unit economics for our partners with recurring revenue streams for Vertical - Forge lau
Slide 36: VA-X4 Designed and Tailored to Mission
ANALYST DAY - SEP 2021 36 - United States - Rest of World TOP 50 CITIES BY POPULATION AS OF 20181 - Using feedback from our customers, the VA-X4 is tailored to the needs of given applications - Enables future operators to maximize utilization and asset value generation VA-X4 IS DESIGNED AND TAILORED
Slide 37: VA-X4 Product Family
ANALYST DAY - SEP 2021 37 VA-X4 PRODUCT FAMILY Passenger transport vehicle tailored to mission. Different versions and options Medical emergency response version, enabling single patient transportation Cargo version enabling point to hub, hub to point goods transportation MEDEVAC PASSENGER CARGO ADA
Slide 38: Commercial Partnership with American Airlines
ANALYST DAY - SEP 2021 38 215 MN PASSENGERS PER ANNUM1 6,800 FLIGHTS PER DAY1 365 DESTINATIONS1 10 AIRPORT HUBS1 - Vertical’s strategic airline partner for US operations - American Airlines has pre-ordered, subject to certain conditions, up to 350 Aircraft - Bring unrivaled US footprint and scale of
Slide 39: New York Use Case
NEW YORK ANALYST DAY - SEP 2021 39 Services to and from JFK representing an attractive market for first and business proposition extensions / feeders As well as high frequency JFK – Manhattan shuttle services, there are several high GDP per capita target markets for fast, zero emission air-taxi shut
Slide 40: UK Joint Venture with Virgin Atlantic
ANALYST DAY - SEP 2021 40 5.9 MN PASSENGERS PER ANNUM (2019) 25 DESTINATIONS1 16 COUNTRIES2 - Vertical’s joint venture partner for UK operations - Virgin Atlantic has a pre-order option for up to 150 Aircraft - Brings exceptional brand and history of innovation in flight UK JOINT VENTURE WITH VIRGIN
Slide 41: London Use Case
LONDON ANALYST DAY - SEP 2021 41 There are 37 towns and cities with populations over 100,000 within 100 miles of Heathrow Airport These towns and cities represent a target population of 7.7m (excluding London) that Virgin and Vertical can connect into the Heathrow hub. $93 MN NETWORK REVENUE PER ANN
Slide 42: Global Reach with Avolon
42 ANALYST DAY - SEP 2021 42 - Vertical’s strategic partner for aircraft financing - Avolon has agreed to pre-order up to 500 Aircraft and has already onward leased 250 to GOL - Strategic cooperation to combine aircraft plus financing plus services to enable eVTOL business model to be rolled out to
Slide 43: Japan Joint Venture with Marubeni
ANALYST DAY - SEP 2021 43 - Vertical and Marubeni to explore joint venture for Japan operations - Marubeni has a pre-order option, subject to certain conditions, for up to 200 Aircraft - Brings exceptional strength and depth with strong existing aerospace ecosystem - Expected to de-risk JCAB certifi
Slide 44: Commercial Partnership with Bristow
ANALYST DAY - SEP 2021 44 - Vertical’s strategic partner for helicopter operations - Bristow has pre-ordered up to 50 aircraft, subject to certain conditions - One of the world’s leading helicopter operators with decades of VTOL experience - Global Part 135 operations capability for rotor craft and
Slide 45: Commercial Partnership with Iberojet
ANALYST DAY - SEP 2021 45 - Iberojet has pre-ordered up to 100 aircraft, subject to certain conditions - Iberojet operates flights within Spain (including the Balearics and the Canary Islands) as well in the Caribbean and Mexico - Iberojet is part of Avoris and Barcelo Group, a leading travel group
Slide 46: In Summary
46 ANALYST DAY - SEP 2021 IN SUMMARY SCALE OF PRE-ORDERS VALIDATES PRODUCT & BUSINESS MODEL GLOBAL DEMAND CONFIRMS THE RIGHT APPROACH TO CERTIFICATION OUR PARTNER ECOSYSTEM GIVES CONFIDENCE IN OUR GO TO MARKET
Slide 47: Business Model
47 ANALYST DAY - SEP 2021 1.WHY VERTICAL? 2. KEY TECHNOLOGIES 3. CERTIFICATION PROGRAM 4. ORDERBOOK 5. BUSINESS MODEL
Slide 48: Three Phase Development & Commercialization Plan
48 PHASE I: VA- X4 DESIGN & CERTIFICATION PROGRAM (2021– 2024) PHASE II: STATE OF THE ART ASSEMBLY FACILITY (2023– 2024) PHASE III: COMMERCIAL PLATFORM & ORGANIZATION (2023– 2024) - Continue development of proprietary technology and further develop industrial aerospace partnerships, which increase c
Slide 49: Capital Requirements Through Commercialization
49 49 CAPITAL REQUIREMENTS THROUGH COMMERCIALIZATION ($M) Phases II State of the Art Assembly Facility (2023–2024) Phase I: VA-X4 Design & Certification Program (2021–2024) Phase III Commercial Platform & Organization (2023–2024) Available Cash Gross Profit Contribution 2022 2021 TOTAL 2024 53 48 85
Slide 50: Strong Visibility on Costs
50 ANALYST DAY - SEP 2021 50 STRONG VISIBILITY ON COSTS High certainty on costs through strategic partnerships with Vertical’s top-tier supply chain – operating expenses fall significantly as a % of revenue during 2024-2028 as production is scaled, demonstrating Vertical’s significant operating leve
Slide 51: Exceeding $1bn EBITDA by 2026
51 ANALYST DAY - SEP 2021 51 EXCEEDING $1BN EBITDA BY 2026 GLOBAL VA- X4 PRODUCTION VOLUME TARGET VERTICAL AEROSPACE ADJUSTED EBITDA1 – LONG TERM TARGET VERTICAL AEROSPACE REVENUE2 – LONG TERM TARGET VERTICAL AEROSPACE FCF3 – LONG TERM TARGET 50 250 1,000 1,500 2,000 2024E 2025E 2026E 2027E 2028E Nu
Slide 52: Attractive Valuation
1.8 3.6 2.4 2.0 1,350 220 250 479 2,320 1,210 1,160 PRE- ORDER BOOK (NUMBER OF AIRCRAFT)1 GROSS FUNDING REQUIREMENTS ($MN)2 ENTERPRISE VALUE ($BN)3 SUCCESSFULLY FLOWN FULL SCALE PROTOTYPES1 ANALYST DAY - SEP 2021 52 ATTRACTIVE VALUATION 1. Peer investor presentations, press releases. Vertical Pre-or
Slide 53: Why Vertical?
ANALYST PRESENTATION 53 ANALYST DAY - SEP 2021 53 WHY VERTICAL? CERTIFICATION CONFIDENCE MARKET LEADING PRE - ORDER BOOK ASSET - LIGHT AND SCALEABLE ATTRACTIVE VALUATION
Slide 54: Thank You
as SS VERTICAL THANK YOU
Slide 55: Additional Information and Where to Find It
Additional Information and Where to Find It This communication relates to a proposed transaction between Vertical Aerospace Group Ltd. (together with its affiliates, “Vertical”) and Broadstone Acquisition Corp. (“Broadstone”). This communication does not constitute (i) solicitation of a proxy, conse
Slide 56: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This communication includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Broadstone’s and Vertical’s actual results may differ from thei