Volato Group, Inc. · AMEX:SOAR
Volato — Investor Presentation (June 2024)
40 slides from Volato's investor presentation, Jun 7, 2024
Slide 1: Investor Presentation June 2024
INVESTOR PRESENTATION JUNE 2024 ENJOY FLYING MORE ® NYSE:SOAR
Slide 2: Disclaimer
Disclaimer Disclosure Regarding Forward-Looking Statements Some statements in this Presentation may be considered “forward-looking statements” for purposes of the Federal securities laws. Forward-looking statements generally relate to management’s current expectations, hopes, beliefs, intentions, st
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont’d) Use of Projections This Presentation contains financial forecasts for Volato with respect to certain financial results of Volato. Volato’s independent auditor has not audited, studied, reviewed, compiled, or performed any procedures with respect to the projections for the purpose
Slide 4: Table of Contents
4 Table of Contents 1 2 3 Company Overview Business Model Volato Fleet Financials 4
Slide 5: Company Overview
COMPANY OVERVIEW Vlado
Slide 6: Fly Better, Fly Smarter, Fly Volato
Fly Better, Fly Smarter, Fly Volato Volato brings the benefits of whole aircraft ownership to the fractional customer, providing Volato residual fleet availability which is filled through a unique suite of products and innovative software. 6
Slide 7: Highly Scalable and Cash-Generating Business Model
Volato: Highly Scalable and Cash-Generating Business Model Volato secures fleet aircraft orders from top-tier OEMs, which are then sold, often prior to delivery, through fractionalizing. Subsequently, the company operates these aircraft on 5-year contracts, aiming to maximize their utilization and p
Slide 8: Competitive Landscape: Innovative Model Sets Volato Apart
Competitive Landscape: Innovative Model Sets Volato Apart Volato offers a superior lower-risk, higher-return strategy by combining the strengths of existing models. 8 Low Risk – Aircraft paid for by fractional customers and they provide the vast majority of flight demand. Low Margin - Owners fly at
Slide 9: Volato by the Numbers
Volato by the Numbers Notes: 1. Full fleet, including fractional, managed and leased aircraft under operational control, and managed-only fleet. 2. 22 HondaJets & 4 Gulfstream G280s. For further detail regarding our delivery expectations, please refer to slide 35. 26 Aircraft on Firm Order2 31 Aircr
Slide 10: Private Aviation: A Large and Fast-Growing Market
10 Shifts in Work/Life Balance • Flight and travel purpose patterns have permanently changed • COVID-19 introduced private aviation to new customers Capacity Constraints • Significant OEM backlogs for new deliveries • Low inventory of aircraft on the secondary market Growth in the Experience Economy
Slide 11: Rapidly Capturing Market Share in the Fractional Market Segment
Rapidly Capturing Market Share in the Proven Fractional Market Segment Source: SherpaReport. Notes: 1. Year founded included in parentheses. 2. Jet It stopped operations effective May 16, 2023. 2023 Fractional Operator Market Share (by flight hours)1 Opportunity for Volato to become one of the large
Slide 12: Leadership: A Proven Management Team
Operational team of seasoned industry professionals with deep industry experience Led by an entrepreneurial team and a commercial team with prior industry experience KeithRabin President Nicholas Cooper CFA Co-founder &CCO MattLiotta Co-founder&CEO SteveDrucker CTO Gary Waldman EVP, Fleet Performanc
Slide 13: Chris Burger
Chris Burger - Chris Burger is a proven senior executive, C-level advisor, and Board member with extensive experience leading global organizations through critical business and technology transformation initiatives. Chris has direct international management experience spanning five continents and cu
Slide 14: A Focus on Safety and Sustainability
A Focus on Safety and Sustainability Founded in 2021, Volato is unencumbered by legacy baggage and can lead the industry with a modern approach to business. Volato has a longstanding focus on safety and has been awarded the industry's highest safety ratings; IS-BAO Stage 3 and ARGUS Platinum. Operat
Slide 15: Key Company Milestones
Notes: 1. Non-GAAP management-adjusted deconsolidated financials, including full sales price of all fractional aircraft. Pro-forma for full-year of Gulf Coast Aviation, acquired in March 2022. Jan-2021 • is incorporated Mar-2021 • Initial HondaJet fleet order placed Aug-2021 • First HondaJet deliver
Slide 16: Consistently High Customer Satisfaction
Notes: 1. NPS (Net Promoter Score) is sourced internally from Volato, based on customer surveys conducted post-flight. Surveys commenced from Q1 2023. Consistently High Customer Satisfaction NPS By Quarter Q2 2023 Q3 2023 Q4 2023 Q1 2024 89 90 88 82 • Volato’s ongoing commitment to customer satisfac
Slide 17: Business Model
BUSINESS MODEL Vlado
Slide 18: Business Model: Focused on Fleet Growth & Maximizing Utilization
Core Floating Fleet Part 135 Charter Operation Proprietary Software Business Model: Focused on Fleet Growth & Maximizing Utilization Volato’s business model secures excess fleet availability at below market levels of financing and fills the availability with higher yielding 3rd party usage sourced v
Slide 19: Volato's fractional model integrates traditional fractional and whole aircraft ownership
Volato's fractional model integrates the benefits of both traditional fractional programs and whole aircraft ownership. Traditional Fractional Model Whole Aircraft Ownership Traditional fractional models are timeshare based. Owners select fractional size based on their anticipated usage and receive
Slide 20: Volato's Fractional Program: A More Profitable & Lower Risk Model
Monthly Management Fee • Aircraft on a 5-year management contract. • Monthly management fee pulled via direct debit. • Priced to at least cover the fixed operating costs of the aircraft (pilots, insurance, ancillary costs etc.) Note: 1. Based on 600 revenue hours annual utilization. 0.87% at 800 ann
Slide 21: Fractional Program: Creating Excess Unused Fleet Availability
50 hrs. non-owner $6,500 per hr. 750 hrs. owner $4,700 per hr. Average Occupied Yield $4,800 per hr. 504 hrs. non-owner (63%)2 $6,500 per hr. 296 hrs. owner (37%) $4,700 per hr. Average Occupied Yield $5,800 per hr. Volato’s Fractional Program: Creating Excess Unused Fleet Availability 21 • Higher p
Slide 22: Maximizing Fleet Utilization: Commercial Strategy
Maximizing Fleet Utilization: Commercial Strategy Volato implements a commercial strategy serving multiple distinct customer & market segments through a multi-product suite of non-guaranteed availability offerings designed to increase fleet utilization. 22 Owner Usage Jet Card/Deposit Charter Empty
Slide 23: Using Technology to Price Efficiently & Drive Demand
Maximizing Fleet Utilization: Using Technology to Price Efficiently & Drive Demand Volato is systematically expanding fleet and geographic operational coverage, through traditional commercial aviation dynamic pricing strategies. 23 • Operates a floating fleet with no central base for either aircraft
Slide 24: Product Suite Supporting Non-Owner Usage Demand
Maximizing Fleet Utilization: Product Suite Supporting Non-Owner Usage Demand Volato simultaneously addresses multiple market segments with a differentiated product set. The aim is to maximize revenue by taking advantage of varying willingness to pay based on product attributes while minimizing spoi
Slide 25: Proprietary Technology: Mission Control Software Platform
VOLATO UNIQUELY POSITIONED TO IMPROVE AVIATION SOFTWARE TODAY • Existing off-the-shelf software solutions are antiquated and are inadequate. • Volato's team has extensive experience in both aviation and software development. • Our in-house software team understands aviation requirements and are effe
Slide 26: Vaunt: A Unique Approach to Monetizing Empty Legs
VAUNT: A Unique Approach to Monetizing Empty Legs Vaunt, a subsidiary of Volato, is a consumer mobile-app that monetizes existing operational empty leg flights, making private aviation experiences accessible to a new market segment. 26 • Over 30% of private aviation flights are empty leg repositing
Slide 27: Volato Fleet
VOLATO FLEET Vlado
Slide 28: Volato's Fleet: The HondaJet
Volato’s Fleet: The HondaJet Volato’s preferred aircraft provides the highest efficiency compared to other Light Jets, especially the Phenom 300, currently the most established Light Jet. 28 HondaJet Elite II Embraer Phenom 300 Sources: 1. Manufacturer data 2. Manufacturer data 3. Argus 2023 data &
Slide 29: Fleet: The HondaJet Unit Economics
Unique business model provides multiple recurring revenue streams and profitable flight operations. Each aircraft acquired is providing a layered stream of annuities. Volato’s business model can be profitable from both fractional sales and flight operations Notes: 1. Revenue & Margin based on estima
Slide 30: Historical Floating HondaJet Fleet Growth
Volato’s Fleet: Historical Floating HondaJet Fleet Growth 30 In a tight aircraft delivery market, Volato has secured significant firm orders and has been able to grow its fleet rapidly. Volato has 22 HondaJets on firm order, to be delivered prior to 2026. 5 5 6 9 9 9 9 11 111 2 4 5 6 9 11 13 15 6 7
Slide 31: Financial Information
FINANCIAL INFORMATION Vlado
Slide 32: Volato Financial Performance At-a-Glance
Volato Financial Performance At-a-Glance 32 Quarterly Revenue Commentary 1. Reflects Usage Revenue + Maintenance Revenue + Management + Fuel. 2. Reflects Whole Aircraft Sales + Fractional Sales Revenue. Management expects a large portion of fractional sales revenue to be recurring in nature as fract
Slide 33: Clear Path To Profitability: Strong Execution
33 2024 is a pivotal year as Volato is positioned to benefit from several maturing strategic initiatives, earning substantial margin from new aircraft deliveries, and unlocking operational efficiencies through the network effect. Clear Path To Profitability: Through a Continued Focus on Strong Execu
Slide 34: Clear Path To Profitability: Breakeven from Flight Operations
34 0 200 400 600 800 1,000 1,200 1,400 0 10 20 30 40 50 60 70 80 A nn ua l F lig ht H ou rs P er A irc ra ft R un R at e HondaJet’s in Floating Fleet Breakeven for Scaled HondaJet Floating Fleet Breakeven (100% fractional) Volato Actual Ops Performance Breakeven (50% fractional / 50% leased) Dec '22
Slide 35: Generating significant cash flow by growing fleet in 2024
Clear Path To Profitability: Generating significant cash flow by growing fleet in 2024 35 Monthly Management Fee • HondaJets o Revenue: $80K per month per plane • Gulfstream G280s o Revenue: $300K per month per plane 2024 Fractional Share Purchase • HondaJets o Revenue: $72M to $90M o Margin: $16M t
Slide 36: Key Performance Indicators
Key Performance Indicators: Trending positively through strategy implementation 36 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Total Flight Hours 1,199 1,307 1,712 2,103 2,919 2,747 3,504 2,926 Empty Percentage 41.1% 40.2% 39.0% 41.2% 39.6% 36.6% 37.9% 35.1% Demand Mix: Owner 88%
Slide 37: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Vlado
Slide 38: Volato is Positioned Well for Accelerated Growth
Volato is Positioned Well for Accelerated Growth Expansion of software offering Focused entry into corporate travel market Expansion of fleet size and offering Expansion of geographic footprint and operational coverage 38
Slide 39: Key Investment Highlights
EXPERIENCED MANAGEMENT TEAM SUPERIOR BUSINESS MODEL PROPRIETARY TECHNOLOGY DIVERSIFIED REVENUE STREAMS PATH TO PROFITABILITY LARGE MARKET SIZE • Team with both deep aviation industry experience and from the technology industry. • In-house software delivers efficiency and productivity improvements. •
Slide 40: Enjoy Flying More
ENJOY FLYING MORE