Eve Holding Inc (EVEX)

A. Overview

Eve Holding, Inc. is an aerospace company based in Melbourne, Florida and Brazil. Founded in November 2020, the company was initially known as Zanite Acquisition Corp. and was formed with the purpose of merging or acquiring other businesses. Eve Holding specializes in the development of Urban Air Mobility (UAM) solutions. This includes the design and production of electric vertical take-off and landing vehicles (eVTOLs), maintenance and support services for eVTOLs, fleet operations services in collaboration with partners, and an Urban Air Traffic Management system for safe and efficient operation of eVTOLs in urban airspace.

The company believes it has a unique advantage in the global market due to its aviation heritage, strategic relationship with Embraer S.A., its technology portfolio, and the experience of its management team and employees.

B. Products and Services

eVTOL Production and Design

Eve Holding is focused on developing an eVTOL that is optimized for the UAM mission. The eVTOL features a lift plus cruise design with eight redundant rotors for takeoff, hover, and landing. It also has a separate forward propulsion system and fixed wing for efficient and quiet cruising. The initial design can accommodate four passengers and a pilot, with the potential for autonomous capabilities to transport six passengers without a pilot. The company expects a range of 100 km upon entry into service, which can address 99% of UAM missions within cities and metropolitan areas. The eVTOL is currently in the early development phase and is projected to enter service in 2026.

Service and Support

Eve Holding plans to offer a comprehensive suite of service and support capabilities for eVTOLs. This includes material services, maintenance, technical support, training, ground handling, and data services. The company will provide support for both its own eVTOLs and those produced by third parties. Leveraging the global support network of Embraer S.A., Eve Holding aims to deploy its eVTOL services in a cost-effective and scalable manner.

Fleet Operations

In collaboration with selected partners, Eve Holding plans to build a fleet operations business. The company does not intend to own eVTOLs or engage in airline operations itself. Instead, it will form revenue and risk-sharing partnerships to scale its fleet operations in a capital-efficient manner. Eve Holding will contribute expertise in vehicle design, urban operations, and vehicle maintenance, while partners will contribute expertise in managing route networks, selling tickets, and serving passengers. The company has signed agreements with operating partners to evaluate potential joint fleet operations.

Urban Air Traffic Management

Eve Holding is developing a next-generation Urban Air Traffic Management (UATM) system. This system will enable eVTOLs to operate safely and efficiently in dense urban airspace alongside conventional aircraft and unmanned drones. The UATM software platform is being developed in partnership with Atech-Negócios em Tecnologias S.A., a subsidiary of Embraer S.A., which is known for developing air traffic control systems. The UATM solution will primarily be offered as a subscription software to air navigation service providers, fleet operators, and vertiport operators. The company is currently validating its UATM approach through collaborations with stakeholders in various cities.

C. Target Group and Marketing Strategy

Eve Holding plans to market its eVTOLs globally to operators of UAM services, including fixed-wing and helicopter operators, as well as lessors that purchase and manage aircraft for operators. The company also aims to engage with operators of ridesharing platforms to secure committed operating hours for its eVTOLs.

To date, the company has established an initial order pipeline of 2,770 vehicles valued at $8.3 billion from 26 launch customers. However, these orders are based on non-binding agreements and subject to change. Eve Holding intends to participate in the fleet operations market through revenue and risk-sharing arrangements with operating partners. It does not intend to hold eVTOLs on its balance sheet and plans to establish partnerships to offer solutions to operating partners.

D. Human Capital

As of December 2022, Eve Holding had 149 full-time employees, with 52 of them being engineering professionals. The company is in the process of transitioning employees from Embraer S.A. to Eve Holding throughout 2023. It's worth noting that the direct headcount at Eve Holding does not include up to 5,000 employees from Embraer S.A., including 1,600 engineers, who are available to the company under the Master Service Agreements. Eve Holding aims to maintain a lean and agile team focused on high-value engineering, project management, and business development, while having access to a larger pool of flexible and cost-effective resources from Embraer S.A. to support its operations.