Airo Group Holdings, Inc. · NASDAQ:AIRO
Airo — SPAC Merger (May 2023)
27 slides from Airo's SPAC merger presentation, May 23, 2023
Slide 1: Advanced Air Solutions
ADVANCED AIR SOLUTIONS AIRO GROUP HOLDINGS, INC. May 2023
Slide 2: Disclaimer
Disclaimer ‘About this Presentation ‘This presentation relates to a proposed business combination (the “Business Combination") between AIRO Group Holdings ne. (the “Company”) and Kernel Group Holdings, Inc. ("Kernel") As a result of the Business Combination, AIRO Group, Inc. (“ParentCo"), will be th
Slide 3: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that reflect current views of the Company, Kernel or ParentCo with respect ‘to, among other things, operations and finan
Slide 4: Disclaimer: Industry and Market Data
Disclaimer Industry and Market Data In this presentation, the Company, Kernel and ParentCo rely on and refer to certain information and statistics abtained from third-party sources which they believe ta be reliable. However, the Company, Kernel and ParentCo have not independently verified the accura
Slide 5: The AIRO Group Overview
The AIRO Group Overview AIRO Group Holdings, Inc. (“The AIRO Group,” “AIRO” or the “Company”) leverages decades of industry expertise to offer a sector-leading enterprise providing innovative aerospace, urban air mobility, and UAS products and services inding of The AIRO Group (“All ned te spen, Sky
Slide 6: The AIRO Group Vision
The AIRO Group Vision The AIRO Group utilizes its differentiated technologies to effectively address high growth markets across Aviation and Aerospace Vision i © AIRO is a multi-faceted air mobility, autonomy & aerospace platform with differentiated technologies and capabilities that dynamically add
Slide 7: AIRO: Executive Management Team
AIRO: Executive Management Team Our Executive Leadership Team has over 150 years of combined operating experience in the aerospace and defense markets AIRO Management Jo urns CEO + a yearvetecan ofthe sation, technology, and communications inutee + Forme ensetive experience a United tins, prin rss,
Slide 8: Kernel: Executive Management Team
Kernel: Executive Management Team About Kernel Group Holdings, Inc. Management Team Purpose Suren Ajjarapu + Kernel Group is a special purpose acquisition company (SPAC) formed \Gophernarvand Etteh Executive, (ican for the purpose of effecting a merger, share exchange, asset acquisition, + 25+years
Slide 9: Company Divisions
Company Divisions AIRO is a multi-faceted air mobility, autonomy & eerospace platform with differentiated technologies and capabili market trends across the entire Aviation & Aerospace ecosystem that dynamically address high growth Uncrewed Air Systems + The UAS Drones division provide Splatformsand
Slide 10: Key Investment Highlights
Key Investment Highlights Aino /\ Differentiated and diversified portfolio of aerospace and defense - well aligned with attractive high growth aerospace and defense markets Advanced and proprietary technologies, including in aerial autonomy, drone services, avionics, and urban air mobility Significa
Slide 11: Uncrewed Air Systems (UAS) Division
Uncrewed Air Systems (UAS) Division AIRO Group is well positioned to leverage its UAS Division to capitalize on the rapidly growing addressable Aviation & Aerospace market, Total Addressable Market!?) Drones - Reliance on unmanned drones within the military and civilian markets expected to continue
Slide 12: Uncrewed Air Systems - Drones
Uncrewed Air Systems - Drones Commercial and Military UAS RQ-35 Heidrunis a battle-proven, fixed wing mini UAV for Low altitude Close Range (LACR) intelligence, Surveillance, Reconnaissance missions In service in the Ukraine conflict Purchased by multiple NATO countries Remote £0/IR Observation plat
Slide 13: AIRO_LINK - Providing Drone and Aviation VPN technology
AIRO_LINK - Providing Drone and Aviation VPN technology AIR * Significant need for a datacom network environment for UAS and UAM operations - analogous to Airline and Business Aviation ACARS Networks + Today’s current BVLOS network requires visual operations for all phases of flight. Airo_Link can p
Slide 14: AIRO_Link Network
AIRO_Link Network LEO Satellites Iridium NEXT LEO ‘STARLINK/Other Internet Host UTM ic Air Mobility UTM& AIRONET GNDHOST ag cron NO: } LOCAL ATC ASP UTM HOSTS @ caw trackingsrighirotowing @ sesirimetonmesensrsiraming __ @) ops centercontrot (x @ prove racking Maprng teal Tine Sensor steaming @ veriv
Slide 15: Training Division - Addressing Global Pilot Shortages
Training Division - Addressing Global Pilot Shortages =e Our Training Division is addressing the need for new pilots as well as assisting military requirements ata very cost-effective rate Pilot Shortage Massive Pilot shortage is impacting all aspects of air Travel and categories of aircraft with ma
Slide 16: Significant Market Tailwinds in Aviation Training Demand
Significant Market Tailwinds in Aviation Training Demand Growing demand across the aviation industry, including Airlines, Urban Air Mobility, and Uncrewed Air Systems will accelerate demand for pilots 2028 ee Total Number of Pilots: Total Number of Pilots: oe neon 380,000) 150,000 Business. 55,000 C
Slide 17: Advanced Avionics Division
Advanced Avionics Division Our Advanced Avionics Division develops affordable, interoperable products, technologies and partnerships that meke information from the aviation data stream relevant to users through all phases of the flight cycle. Complete in-house design-certification- manufacturing, Ov
Slide 18: Electric Air Mobility (EAM) Division
Electric Air Mobility (EAM) Division AIRO is well positioned to leverage its portfolio of leading companies advancing the Aviation & Aerospace market to capitalize on this growing addressable market, Total Addressable Market") Cargo - There are numerous opportunities to develop autonomous cargo airc
Slide 19: The Jaunt Journey Aircraft
The Jaunt Journey Aircraft Innovation and advanced technology, combined with AIRO’s incredible engineering capabilities, facilitated an aircraft that ties together the best attributes of fixed wing aircraft and rotorcraft, utilizing the most efficient design for vertical take off and landing; a sing
Slide 20: Jaunt Canadian Strategy
Jaunt Canadian Strategy Canadian government highly motivated to revitalize the aerospace industry and establish eVTOL global leadership Addressing Canada’s future sustainable mobility with the adoption of clean (green) technologies Securing direct and indirect funding through existing provincial and
Slide 21: Tier Suppliers
Tier 1 Suppliers + Jaunt Air Mobility has created a collaborative business model * Key Suppliers defer non-recurring engineering (NRE) cost to post certification + Technical and cost risk reduction throughout the development program * Significant technical development risks have already been mitigat
Slide 22: Aircraft Orders To Date (through April 2023)
Aircraft Orders To Date (through April 2023) 476 orders valued at $1.14B?) Vadis TL, cs Vertiko AX mintar Hamper WALLE 50 20 71 40 25 20 i 2
Slide 23: Valuation Comps
Valuation Comps Company Joby Aviation, Inc. AeroVironment, Inc. EVE Air Mobility Vertical Aerospace Ltd Archer Aviation, Inc. symbol JOBY AVAV. EVEX EVTL ACHR ‘AeroVironment y= S VERTICAL ARCHER Market Capitalization (asof March, 2023) §2.85B USD. $2.23B USD. SL.72B USD. 395M USD $760M USD AIRO \s 2
Slide 24: Forecast - Revenue
Forecast - Revenue (su Yeari Year2 Year3 20228 2023E 2024E 2025E 2026E Advanced Avionics LOB TotatAdvancedAvioniceRevenue = $10 SBS 8 Sa Growth Rate 15.0% 57.6% 28.7% 18.7% Training LOB TotaltrainingRevenue = $58 SSS $200.2 Growth Rate 216.0% 358.7% 164.8% 30.495 Commercial Drones LOB Totalcommercia
Slide 25: Forecast - EBITDA
Forecast - EBITDA (SM) Year1 Year 2 Years 20228 2023E 2024E 2025E 2026E Advanced Avionics LOB Growth Rate (52.5%) (216.496) 462.0% 47.3% Training LOB Growth Rate 116.1% (862.7%) 318.296 46.2% Commercial Drones LOB Growth Rate (422.496) 528.4% 285,396 87.5% Electric Air Mobility LOB Growth Rate 699.1
Slide 26: Offering Summary
Offering Summary ‘). AIRO signed a business combination agreement with Kernel Group Holdings, Inc. (Nasdaq: KRNL) on March 3, 2023, supported by a backstop agreement for up to 7.7 million shares ($77M USD) previously signed by Kernel and Meteora. ‘4. The parties have filed a Registration Statement o
Slide 27: Highly Attractive Financial Profile with Significant Upside
Highly Attractive Financial Profile with Significant Upside within complimentary a