Sky Harbour Group Corporation · NYSE:SKYH
Sky Harbour — Yellowstone Acquisition — SPAC Merger (January 2022)
48 slides from Sky Harbour's SPAC merger presentation, Jan 10, 2022
Slide 1: Sky Harbour
Sky Harbour wesc
Slide 2: Mission: Build the First Nationwide Network of Business Aviation Home-Bases
MISSION: BUILD THE FIRST NATIONWIDE NETWORK OF BUSINESS AVIATION HOME-BASES
Slide 3: Disclaimer: Forward-Looking Statements
DISCLAIMER Fowwatdlooking Statements “This prevertatonrnade by Sky Harbour LLC the "Company**we,**uy,"or out) and Yellow ane Ac quiton Company (‘Yellowstone aie the propoted business combinaon betweanihe Companyand Yellowstone the Business ombnaton") contains seman whi hconstivie"trwarg-ookng siemen
Slide 4: Disclaimer: Non-GAAP Financial Measures and Projections
DISCLAIMER Non-GAAP Financial Measures and Projections ‘This presentation, cluding the llurtative Model reladescotainfnarcialmeasures notresentedin sccordance wth United Stator general aocoptedaccountingpinciles ("GAAP"), These non-GAAP nancial rmeasurerare rot measures inane alperfomarce insecordar
Slide 5: Disclaimer: Participants in the Solicitation
DISCLAIMER Participants inthe Slictation ‘The Company, Yellowstone and thei respective dmctors and execute offers, cher members of managemertan employees rmay be considered participants inthe soletatonct proxies with respect the otenballmansacton described in his comenunieaten underthe rules tie SES
Slide 6: Sky Harbour - Snapshot
SKY HARBOUR - SNAPSHOT >30% Return on Project Equity 50+ airfields Remain largest home basing solution provider in US market
Slide 7: Investment Highlights
INVESTMENT HIGHLIGHTS Proven market opportunity with recession-resistant demand drivers Simple yet disruptive business model supported by clear advantages to customers and airport sponsors Business structured to scale quickly in large addressable market Significant barriers to entry Management team
Slide 8: Executive Team Matched to Mission
EXECUTIVE TEAM MATCHED TO MISSION TalKeinan SkoIlarbour Founder, £0 Francisco Gonzalez cay Gi Tim Johnson SkyHlarbour CFO ” = Sky Harbour SVP Corp-Dev Goes § mresenerie Syl Alex Saltzman Skollarbour 600 Millie Becker Perea: Sis |luvbour VP Development Oe Peter Rusnak Neil Szymezak Skstlavbour VP Ope
Slide 9: Finance: Cost of Capital Advantage
FINANCE: COST OF CAPITAL ADVANTAGE Recent successful BOND issue creates meaningful new equity value * Total Raise: $ 166,340,000 Total Orders: $982, 105,000(5.9X Oversubscription) + Final Blended Interest Rate: 4.28% Fixed Target Rate at Merger Announcement: 5.50% + Maturities 2036: ~$21MM 2041:-$30
Slide 10: Current Transaction Overview
CURRENT TRANSACTION OVERVIEW ‘+ Business combinationto raise equity proceeds toward the funding of approximately 20 Sky Harbour airport hangar campus sites ‘+ Pre-money equity value of $450MM, proforma equity value of $722MM, based on ‘Sources and Uses set forth below ‘+ Target of $223MM net cash pr
Slide 11: Business Aviation Infrastructure
BUSINESS AVIATION INFRASTRUCTURE SURGING DEMAND RIPE FOR A NEW BUSINESS MODEL N
Slide 12: Sky Harbour's Total Addressable Market Is Growing
SKY HARBOUR'S TOTAL ADDRESSABLE MARKET IS GROWING Cumulative US Business Jet Fleet US business jet fleet grows every year + Net growth: new accra deliveries exceed retrements weet * Demand for hangar space (versus tie-down) is highest among new aircraft. * Existing US fleet does not migrate overseas
Slide 13: Square Footage Growth Higher Than Aircraft Unit Growth
SQUARE FOOTAGE GROWTH HIGHER THAN AIRCRAFT UNIT GROWTH Cumulative US Business Aircraft Fleet Square Footage Square footage is the real driver of hangar demand * Average new aircraft length and wingspan grow every year * 27,500,000 square feet of airplane added from 2010 to 2020, straining existing h
Slide 14: Hangar Supply Constrained
HANGAR SUPPLY CONSTRAINED * Hangar occupancy significantly > 100% at major Bizav hubs * Demand growing much faster than supply * Community hangar format suboptimal for high-end tenants CBRE forecasts 2.1MM square feet of unmet hangar demand by 2025 on Sky Harbour's first five fields alone(’) * Littl
Slide 15: = aE t
= aE t OVID RIVA AVIATION BOO RA fe) R GIA BIZA AR A at vot FIDE = for PI ern Prtckston tone f naw Private ovation hg, BizJet Deliveries to Reach Near 700 in 2021 pI Uni ite on g. 4.7 Bil ion That number is about 11 percent over 2020. me Aiport .. next year’s total should climb another 12% to about
Slide 16: Business Overview
BUSINESS OVERVIEW
Slide 17: Sky Harbour - Physical Offering
SKY HARBOUR - PHYSICAL OFFERING Unparalleled Ownership Experience” Generous Technical Features Tenant-Exclusive Hangar No-Foam Fire Suppression Unfettered Airside Access High-Volume Air Circulation and Humidity Control ‘No Transient Ramp Trafic High-Gloss Crystalline Densified Flooring ~~ Direct Lan
Slide 18: The Home-Basing Model: A Win for All Stakeholders
THE HOME-BASING MODEL: A WIN FOR ALL STAKEHOLDERS Sky Harbour Tenants Get Airport Sponsors Get Privacy and Security Aircraft Value Preservation High Sponsor Revenues Efficiency of Operations No Hangar Rash Low Environmental Impact ShortestTime to Wheels-Up No Foam Dumps Low Noise Impact in Businges
Slide 19: Sky Harbour - Service Offering
SKY HARBOUR — SERVICE OFFERING 24/7. On-Demand Service, Dedicated Exclusively to Sky Harbour Tenants 2 Dedicated Services + Airetat Towing Aircraft Fueling PotabloWator co Lavatory Service Baggage Handing DC Ground Powor Cleaning ‘Smart Hangarapp Nenorng
Slide 20: Home-Basing Model Fundamentals
HOME-BASING MODEL FUNDAMENTALS The Fixed Base Operator Model Two mainrevenue components: Fuel Sales: > 65% ~ Fuel drives the business model and provides for banner revenue years (2019) hile also volatile revenue stream in business aviation (2020) Hangar + Tie-Down + Parking Rental Revenue:22% © Most
Slide 21: Building the Sky Harbour Portfolio
BUILDING THE SKY HARBOUR PORTFOLIO Attractive Unit + Target NOI Yield: 12% Economics’ *+ High quality tenant mix includes corporations, charter operators, Conse vate owmers and government entities *+ Staggered lease durations provide cash flow resiloncy ‘+ Propritary, standard design, prefabricated
Slide 22: Land Acquisition Approach
LAND ACQUISITION APPROACH Land on fed long-term but not privately owned. willis ee
Slide 23: Construction Approach
CONSTRUCTION APPROACH Proprietary prototype design, requiring minimal adaptation to local conditions * Minimizes developmenttime and risk = Code compliance precedent *" GC RFPs issued with full construction drawings ® Lowers costs * Centralized purchasing * Soft costs distributed over many projects
Slide 24: Initially Targeting 50+ Airfields
INITIALLY TARGETING 50+ AIRFIELDS Initial target airfields represent less than 2% of US NPIAS airfields First 20 sites to be financed by merger proceeds and bond issuance + 6 sites currently in development PHASE 2: 9/21 ‘Qin Development OAnnounced 10/21 PHASE 2: 12/22
Slide 25: Finance, Unit Economics and Scalability
Slide 26: Unit Economics
UNIT ECONOMICS Maximize NOI yield minus cost of debt FIELD DEVELOPMENT COST (PRSF)* SGR=ashol 3158 cE 3179 $208 3185 31 fo $592 $496 $674 $550 ‘Dvi=budeet $351 MESHED AvERAGE ___$451__ FIELD ROLLUP E 25 TENANT RENT PREF *** IMPLED TOTAL RENTAL REVENUE $2001.21 SGR=astval $2195 IMPLED OFEX ‘54380471
Slide 27: Scale Economics
SCALE ECONOMICS Cost-of-capital advantage (aaa A Fy A reutcana sacrro fama) 12500; Teo sveasate | roainaee | s2050;0n0 — | om) ew a ate: om un ppt sexowocos | sexazonne ssocoroe tec oa srovease areas so7note vow a vor" secon [RBS] so sone volussecotstoa sonatas sumagns sagen st 188 Sky Harbour Priva
Slide 28: Long Term Targeting
LONG TERM TARGETING Declining development cost = Improved unit economics and dramatic expansion of target universe Declining Construction Cost + Declining Cost of Capital ; < Epo Oln Development . . KOPF (Miami) Pease ape Odnnounced 10/21 ase 2 19/22
Slide 29: Framing Sky Harbour's Peer Set
FRAMING SKY HARBOUR'S PEER SET =a — O66 @ CuseSuarr 4 storage peitetdat canal TERRENO @ LifeStorage STAG Mec storage SkyHarbour Specialty Real Estate as! Safehold —~@~ a“ f . americoco. air) Re
Slide 30: Peer Set Benchmarking
PEER SET BENCHMARKING ee eee tor Value Harbour
Slide 31: Valuation Framework
VALUATION FRAMEWORK Multiple Analysis versus Benchmarks Industrial Real Estate Specialty Real Estate Public Storage Median Median Median 92022E 020206 tax ‘rts iy Haro egutymaretcstalation ater merger comtinton sndPIPE closing me projected eb andtnancia rejects InportantNote EBITDR sa nen-GaaP nanci
Slide 32: Valuation Framework
VALUATION FRAMEWORK Discount Methodology to Current Peer Multiples Company Highlights Valuation Methodologies Against Peers * $722 million fully diluted, post money valuation) + 2026E AFFO = $64. 9mm @ 30x = $1,948mm * Expected issuance of $707 million of PABs inclusive of already + PVat 12.5% = $1,
Slide 33: ESG Impact
ESG IMPACT (1) Sky Harbour Hangar Capacity at Target Airports Reduces Repositioning Flight Volume + Lower Carbon Emissions + Reduced Noise Footprint Sky Harbour Works with Local Small Businesses and Participates in Disadvantaged Business Programs + LocalGeneral Contractors and Subcontractors + Women
Slide 34: Future Business Opportunities
FUTURE BUSINESS OPPORTUNITIES ‘Sky Harbour is the logical partner for emerging Air Existing and Emerging Aviation Infrastructure Users Mobility and Logistics players — manned and unmanned FedEx. mayamem "™g) © "Prime Air * Emerging UAM and light logistics aircraft will likely require access to FAA-r
Slide 35: Simple, Yet Disruptive
Y¥ Simple, Yet Disruptive ~ ¥ High Growth Sector. _¥ —_Downside Protected ~~ Inflation Resilient hi wv Y Significant Optionality ¥ __ Right Team SkyHarbour ee mienltenenmensiey as
Slide 36: Sky Harbour
SkyHarbour AVIATION e INFRASTRUCTURE e REAL ESTATE 4 fee PE =. Skaltarbour = eee,
Slide 37: Financial Projections
FINANCIAL PROJECTIONS Detailed Financials GAAP Metrics ($ Millions) Projections 2021" 2022 2023 2024 2025 2028 Total revenues 08 48 176 499 103.4 1344 ‘Airfield operating expense 3.1) (62) (14.4) (15.0) (19.0) (22.5) Gross proft (25) (2.0) 65 349 843 111.9 Corporate operating expense 5) (11.0) (11.8
Slide 38: Financial Projections: Reconciliation of Non-GAAP Metrics
FINANCIAL PROJECTIONS Reconciliation of non-GAAP metrics (S Millions) Projections 2021" 2022, 2023 72024 2025 2026 ‘GAAP Operating Income (10.0) (7a) (140) 60 452 664 Plus: Depreciation and amortization o4 08 28 87 168 228 Plus: Share-based compensation. 0s a4 58 83 103 100 JEBITDA (2.4) (12.9) (6.3
Slide 39: Business Aviation Long-Term Investor-Friendly
BUSINESS AVIATION LONG-TERM INVESTOR-FRIENDLY Sky Harbour benefits from the same macro drivers that have long attracted sophisticated investors i =m Benxsine Berks Haraway ve a mide we nerjers arushune smmmetaver — saous ee ee ee e D 1996 > 1998 > 2000 > 2002 2004S 2008 > 2008 2010 > 2012 2014 D 201
Slide 40: Advantages to Sky Harbour Tenants
ADVANTAGES TO SKY HARBOUR TENANTS Exclusive Space ‘Members never compromise on postoning and never park outsido Hangar Rash Virtually Eliminated Aircralt is only moved when needed and iscnly handled by the dedicated and certiod Sky Harbour line service crow Security ‘Sky Harbour members and ther Fig
Slide 41: Advantages to Our Airport Partners (Sponsors)
ADVANTAGES TO OUR AIRPORT PARTNERS (SPONSORS) Direct Revenue + Ad Valorem tax receipts + Alltenants are based aircraft + Typical tenant is a newer and larger aircraft (2) Low Impact + Minimal to negative contribution to airport noise footprint + Minimal to negative contribution to environmental foot
Slide 42: Business Aircraft Becoming Larger and More Expensive
BUSINESS AIRCRAFT BECOMING LARGER AND MORE EXPENSIVE Owners of high-value aircraft prioritize value-retention, En Es efficiency, security and privacy Felean 10% 112000 sreo0n000 * Hangared aircraft experience fewer incidents related to hangar rash, foam-dumps, condensation damage, inconsistent maint
Slide 43: Hangar Layouts
HANGAR LAYOUTS SH16 Single ‘Main Hongar 120" 108 Hangar Door T0828"
Slide 44: Hangar Layouts
HANGAR LAYOUTS $SH16 Double ‘Main Hangar Wg cg I
Slide 45: Hangar Layouts
HANGAR LAYOUTS $SH16 Double Sky Harbour
Slide 46: Disclaimer: Forward-Looking Statements
DISCLAIMER Fowwatdlooking Statements “This prevertatonrnade by Sky Harbour LLC the "Company**we,**uy,"or out) and Yellow ane Ac quiton Company (‘Yellowstone aie the propoted business combinaon betweanihe Companyand Yellowstone the Business ombnaton") contains seman whi hconstivie"trwarg-ookng siemen
Slide 47: Disclaimer: Non-GAAP Financial Measures and Projections
DISCLAIMER Non-GAAP Financial Measures and Projections ‘This presentation, cluding the llurtative Model reladescotainfnarcialmeasures notresentedin sccordance wth United Stator general aocoptedaccountingpinciles ("GAAP"), These non-GAAP nancial rmeasurerare rot measures inane alperfomarce insecordar
Slide 48: Disclaimer: Participants in the Solicitation
DISCLAIMER Participants inthe Slictation ‘The Company, Yellowstone and thei respective dmctors and execute offers, cher members of managemertan employees rmay be considered participants inthe soletatonct proxies with respect the otenballmansacton described in his comenunieaten underthe rules tie SES