Vertical Aerospace .(EVTL) - 2024 Q4 - Annual Report

Executive Summary & 2024 Highlights Company Overview and 2024 Highlights Vertical Aerospace achieved significant progress in 2024, launching its Flightpath 2030 strategy, advancing piloted flight testing, and strengthening its financial position, positioning itself as a leading eVTOL company in Europe - 2024 was a year of major progress for Vertical, launching our Flightpath 2030 strategy, advancing piloted flight testing, and strengthening our financial position[5] - With our latest prototype surpassing performance expectations and key regulatory milestones bringing us closer to certification, we are reinforcing our position as Europe's leading eVTOL company[5] Business Strategy & Funding Refinancing and Capital Structure Vertical Aerospace secured $220 million in refinancing, including a balance sheet restructure where $130 million of debt was converted to equity, and an upsized $90 million public offering, providing funding through 2025 | Funding Activity | Amount | Details | | :--------------- | :----- | :------ | | Total Refinancing | $220M | Secured, funding operations through 2025 | | Debt Conversion | $130M | Debt converted to equity through an investment agreement with Mudrick Capital | | Public Offering | $90M | Upsized raise, including over $60M from new investors and $25M from Mudrick Capital | Strategic Initiatives & Leadership The company launched its "Flightpath 2030" strategy to achieve certification, production, and market leadership by 2030, and strengthened its leadership team with key appointments to enhance regulatory expertise - Flightpath 2030 launched - a clear strategy for achieving certification, production, and financial milestones to secure market leadership by 2030[8] - Leadership strengthened - Dómhnal Slattery re-appointed as Chair and Eamonn Brennan, former Director General of Eurocontrol, appointed Board Adviser to enhance regulatory expertise[8] Product Development & Flight Testing Full-scale Prototype Development Vertical Aerospace is assembling its third full-scale VX4 prototype at GKN Aerospace's Global Technology Centre, with two full-scale piloted assets enabling extensive flight testing and data collection to inform the certification aircraft - Third full-scale VX4 prototype assembly underway at partner GKN Aerospace's Global Technology Centre[7] - Second, full-scale prototype complete, with assembly of the third and final prototype now underway at GKN Aerospace's Global Technology Centre[13] - Two full-scale piloted assets enables more flight tests and learnings which will shape the certification aircraft, the next aircraft Vertical builds[13] Piloted Flight Testing Achievements The second full-scale VX4 prototype completed over 30 piloted thrustborne test flights by February 2025, capturing 5 million data points and demonstrating successful hover and low-speed maneuvers, exceeding performance expectations. The company is now preparing for piloted wingborne flight - Second full-scale VX4 prototype began flight tests in July 2024, completing piloted thrustborne testing in February 2025, making it only the second company in the world to achieve this with a full-scale vectored thrust eVTOL[14] - Over 30 piloted test flights completed, capturing 5 million data points across 35,000 parameters to validate engineering models and system performance[14] - Successful hover and low-speed manoeuvres executed, including roll, yaw, and spot-turns, with the aircraft exceeding expectations for reliability, stability, and performance[14] - Vertical is preparing for piloted wingborne flight, which it believes will be a world first for this type of electric aircraft[14] Certification & Financial Performance Certification Progress In July 2024, the UK Civil Aviation Authority (CAA) expanded Vertical's Design Organisation Approval (DOA) and agreed on certification cooperation with EASA. The next phase involves wingborne flight, a critical step towards certification and commercial viability - In July 2024, the UK Civil Aviation Authority (CAA) expanded the scope of Vertical's Design Organisation Approval (DOA), a pre-requisite for European Type Certification, and agreed certification co-operation with European Union Aviation Safety Agency (EASA)[18] - Next phase: wingborne flight, with CAA approval required to extend the Permit to Fly. This transition marks a key step toward certification and commercial viability as it will involve transitioning from a tightly controlled test environment to more dynamic, scalable operations[18] Financial Position and Outlook Vertical maintained industry-leading capital efficiency with FY 2024 net cash used in operating activities of £46 million ($58 million). As of December 31, 2024, cash and cash equivalents totaled £23 million ($28 million), increasing to £77 million ($99 million) post-public offering. FY 2025 net cash outflows from operating activities are projected to be between £90 million and £100 million ($110 million to $125 million) | Financial Metric | FY 2024 (GBP) | FY 2024 (USD) | As of Dec 31, 2024 (GBP) | As of Dec 31, 2024 (USD) | Post-Offering (GBP) | Post-Offering (USD) | FY 2025 Outlook (GBP) | FY 2025 Outlook (USD) | | :--------------- | :------------ | :------------ | :----------------------- | :----------------------- | :------------------ | :------------------ | :-------------------- | :-------------------- | | Net cash used in operating activities | £46M | $58M | N/A | N/A | N/A | N/A | N/A | N/A | | Cash & cash equivalents | N/A | N/A | £23M | $28M | £77M | $99M | N/A | N/A | | Net cash outflows from operating activities (forecast) | N/A | N/A | N/A | N/A | N/A | N/A | £90M - £100M | $110M - $125M | Corporate Information & Disclosures FY24 Webcast Details Vertical Aerospace will host a webcast on March 11, 2025, at 08:30 ET (12:30 GMT) to discuss the 2024 Annual Report. Access details for the live event and replay are provided - Vertical will host a webcast at 08:30 ET (12:30 GMT) today to discuss the 2024 Annual Report[3] - To access the webcast, visit Vertical's Investor Relations website: https://investor.vertical-aerospace. com/events-and-presentations/events/[19] - A replay of the webcast will be available on the company website following the event[21] About Vertical Aerospace Vertical Aerospace is a global aerospace and technology company pioneering electric aviation with its VX4 eVTOL aircraft, designed for four passengers with zero operating emissions. The company partners with industry leaders and has approximately 1,500 pre-orders across four continents - Vertical Aerospace is a global aerospace and technology company pioneering electric aviation. Vertical is creating a safer, cleaner and quieter way to travel[22] - Vertical's VX4 is a piloted, four passenger, Electric Vertical Take-Off and Landing (eVTOL) aircraft, with zero operating emissions[22] - Vertical combines partnering with leading aerospace companies, including GKN Aerospace, Honeywell and Leonardo, with developing its own proprietary battery and propeller technology to develop the world's most advanced and safest eVTOL[22] - Vertical has c.1,500 pre-orders of the VX4, with customers across four continents, including American Airlines, Japan Airlines, GOL and Bristow[23] Forward-Looking Statements This section contains standard forward-looking statements regarding future expectations, financial position, aircraft development, certification, commercialization, and capital raising. It highlights inherent risks and uncertainties that could cause actual results to differ materially from projections, including funding, certification timelines, production, and market conditions - This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that relate to our current expectations and views of future events[25] - Forward-looking statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected, including, without limitation: our potential inability to raise additional funds when we need or want them, or at all, to fund our operations; our potential inability to produce or launch aircraft in the volumes or timelines projected; the potential inability to obtain the necessary certifications for production and operation within any projected timeline, or at all; and all of the pre-orders received are conditional and may be terminated at any time[25]