Wheels Up Experience Inc. · NYSE:UP
Wheels Up Experience — Wheels Up — SPAC Merger (February 2021)
45 slides from Wheels Up Experience's SPAC merger presentation, Feb 1, 2021
Slide 1: Wheels Up
Slide 2: Disclaimer
DISCL AIMER CO N FI D EN T IA L I T Y A N D D ISCLOSUR E S This presentation has been prepared for use by Aspirational Consumer Lifestyle Corp. (“Aspirational”) and Wheels Up Partners Holdings LLC (“Wheels Up”) in connection with their proposed business combination. This presentation is for informat
Slide 3: Disclaimer
DISCL AIMER US E O F PR OJ E CT I O NS A N D I L LUST R AT I V E PR E S EN TAT I O NS The financial projections, estimates, targets and illustrative presentations in this presentation are forward-looking statements that are based on assumptions that are inherently subject to significant uncertaintie
Slide 4: Our Mission and Vision
O UR M IS S I O N A N D V IS I O N W E C O N N E C T F LY E R S T O P R I V AT E A I R C R A F T — AND ONE ANOTHER—TO DELIVER E XCEPTIONAL , PERSONALIZED EXPERIENCES. A N D W E ’ R E B U I L D I N G A N I N N O VAT I V E M A R K E T P L A C E T O D O S O AT S C A L E . WHEELS UP 4
Slide 5: World-Class Team
WORLD-CL ASS TE AM WITH DIVERSE E XPERIENCE ACROSS AVIATION, TECHNOLOGY, LUXURY AND BRANDING K EN NY D I CH T ER ER I C J ACO B S R AV I T HAK R AN F O UN D ER & CH I EF E X E CU T I V E O FFI CER CH I E F FI N AN CI AL O FFI CE R CHAI RM AN & CH I E F E X E CU T I V E O FFI CER NASDAQ: TRAK LT G EN
Slide 6: Wheels Up is democratizing private aviation
WH EELS UP IS D E M O CR AT I Z I N G PR I VAT E AV IAT I O N WI T H A N E X T- G EN ER AT I O N, T E CH N O LO GY- D R I V EN PL AT F O RM, MA K I N G I T ACCE S S I B L E F O R M I L L I O NS O F CO NSU M ER S . WHEELS UP 6
Slide 7: Powering a marketplace
WHEELS UP CONNECTS FLYERS TO PRIVATE AIRCRAF T – AND ONE ANOTHER DELIVERING E XCEPTIONAL , PERSONALIZED E XPERIENCES POWERING A MARKETPL ACE WITH... ...MILLIONS OF ...TENS OF CONSUMERS THOUSANDS OF AIRCRAF T WHEELS UP 7
Slide 8: Market leader with consistent track record of growth and innovation
MARKET LE ADER WITH CONSISTENT TRACK RECORD OF GROW TH AND INNOVATION 3x BLUE CHIP INVESTORS & PARTNERS: #1 FLIGHTS FLOWN 2,137 ON-DEMAND COMPARED TO CLOSEST PROVIDER (1) COMPETITOR (2) T OTA L R E V E N U E ($MM) 1,736 1,407 ~1,500 1,140 2020 TOP FLIGHT WHEELS UP AND AWARD WINNER (3) PARTNER AIRCRA
Slide 9: Founded to disrupt the $30Bn private aviation industry
FOUNDED TO DISRUPT THE $30BN PRIVATE AVIATION INDUSTRY Berkshire’s NetJets bu card comp ys Marquis any Jet A N D R E A D Y F O R TAKEOFF WHEELS UP ls Up Sees A Whee Uber Unicorn ing Valued Like ave A e Future B on, And It May H Or Amaz Point WHEELS UP 9
Slide 10: Important strategic transactions have transformed Wheels Up
IMPORTANT STRATEGIC TRANSACTIONS HAVE TRANSFORMED WHEELS UP KEY ACQUISITIONS AND PARTNERSHIPS HAVE FURTHER ENHANCED OUR VALUE PROPOSITION AND BROADENED OUR OPERATIONS S C A L I N G “A S S E T - R I G H T ” F L E E T A N D E N H A N C I N G C A PA B I L I T I E S ADDED AIRCRAFT MANAGEMENT A D D E D F
Slide 11: Democratization of private aviation will unlock an even larger TAM
DEMOCRATIZATION OF PRIVATE AVIATION WILL UNLOCK AN EVEN L ARGER TAM WHEELS UP E XPANDS T HE MARKE T U.S. ADDRESSABLE MARKET O P P O R T U N I T Y T H R O U G H D E M O C R AT I Z AT I O N +$29Bn 2025 1 7. 9 D E M O C R AT I Z E D TA M ~ $ 8 0 B n (3)(4 )(5) 0.1 0.9 1.9 +$20Bn CURRENT $50MM $10-50MM
Slide 12: Significant tailwinds underpin private aviation market
SIGNIFICANT TAILWINDS UNDERPIN PRIVATE AVIATION MARKET GROWTH IN EXPERIENCE ECONOMY E X P E R I E N C E S A C C O U N T F O R O V E R 6 5 % O F D I S C R E T I O N A R Y S P E N D I N G (1) CONSUMERS ACROSS ALL AGE GROUPS AND INCOME BRACKETS REPORT T H E Y M I S S T R A V E L I N G M O R E T H A N A
Slide 13: Current private aviation industry primed for disruption
CURRENT PRIVATE AVIATION INDUSTRY PRIMED FOR DISRUPTION WHEELS UP HAS BUILT THE PL ATFORM AND TECHNOLOGY TO REVOLUTIONIZE PRIVATE AVIATION O P E R AT O R M A R K E T I S H I G H LY F R A G M E N T E D T O P 1 0 O P E R A T O R S C O N T R O L O N LY 8 % O F I N D U S T R Y C A P A C I T Y ( 1 ) 1 ,
Slide 14: Uniquely positioned as a significant total private aviation solution
UNIQUELY POSITIONED AS A SIGNIFICANT TOTAL PRIVATE AVIATION SOLUTION T H I R D PA R T Y LUXURY EVENTS AND AND MANAGED PA R T N E R S H I P S OWNED FLEET EXPERIENCES FLEET G E N E R AT E S OPTIMIZES SIGNIFICANT FRAGMENTED DEMAND S U P P LY AMBASSADOR PROGRAM BRAND FLEET AIRCRAFT LOGISTICS WHEELS UP P
Slide 15: We have built a trusted and iconic lifestyle brand
WE HAVE BUILT A TRUSTED AND ICONIC LIFEST YLE BRAND... BUILDING THE BRAND THROUGH TRADITIONAL AND DIGITAL MEDIA , UNIQUE E XPERIENCES , BRAND ACTIVATIONS AND EVENTS UNIQUE 100+ AMBA SS ADOR PROGRAM WITH BROAD SOCIAL RE ACH TRUSTED RESPECTED SERENA WILLIAMS TOM BRADY CIARA WILSON Largest on-demand sa
Slide 16: Consistently delivering amazing experiences in the air and on the ground
...CONSISTENTLY DELIVERING AMA ZING E XPERIENCES IN THE AIR AND ON THE GROUND ENGENDERING CUSTOMER LOYALT Y AND DRIVING RETENTION 89.6% PROGRAMMATIC RETENTION RATE FOR MEMBERS WITH ANNUAL SPEND ≥$25,000 TR AVEL BENEFITS PAR T NER WORLD CLASS EVENTS AND CONCIERGE EXPERIENCES MEASURED IN TIME WELL SPE
Slide 17: Comprehensive solution driving rapidly growing, loyal member base
COMPREHENSIVE SOLUTION DRIVING RAPIDLY GROWING, INTENSELY LOYAL MEMBER BASE WHEELS UP MEMBER BASE (1) RAPIDLY GROWING MEMBERSHIP BASE... 9,181 2020A MEMBERS +44% 2014–2020 CAGR ... AND HIGH REVENUE VISIBILIT Y THROUGH BLOCK SALES BUS I N E S S CO R E CO N N E CT $530MM 40% OF MEMBERS PURCHASED 2020A
Slide 18: Opening the aperture to an expansive base of non-members
OPENING THE APERTURE TO AN E XPANSIVE BASE OF NON-MEMBERS 150K PASSENGERS FLOWN IN 2020, GROWING TO 500K+ BY 2025 APP E XPANDS THE ADDRESSABLE MARKET AND FURTHER DEMOCRATIZES PRIVATE AVIATION NON-MEMBERS WITH DOWNLOADED APP A PP D OWN LOA DS BUILDS A LARGER BASE OF CUSTOMERS NON-MEMBERS WHO FLY WITH
Slide 19: Industry's largest, most diverse fleet
WHEELS UP OFFERS THE INDUSTRY ’S L ARGEST, MOST DIVERSE FLEET ASSET-RIGHT MIX OF AIRCRAF T SUPPORTS FULFILLMENT OF SCALING DEMAND OWNED / LEASED MANAGED T HIRD PAR T Y NE T WORK QUALIT Y CONTROL Safety Vetted and Verified Aircraft to ensure consistency of experience across fleet type ~170 AI R CR A
Slide 20: Avianis flight management system revolutionizes operators' businesses
AVIANIS FLIGHT MANAGEMENT SYSTEM REVOLUTIONIZES OPERATORS’ BUSINESSES INVENTORY SAFE T Y VE T TING FMS TECHNOLOGY INTEGRATES WITH E XISTING WHEELS UP TECHNOLOGY TO OPTIMIZE FLEET, INCRE ASING UTILIT Y CRITICAL OPERATING SYSTEM FOR PRIVATE AVIATION INDUSTRY FLIGHT PL ANNING TRIP SERVICES / TRACKING C
Slide 21: The new Wheels Up app
THE NEW WHEELS UP APP INTUITIVE , POWERFUL TOOL FOR MANAGING THE CUSTOMER E XPERIENCE S E A R CH FE A S I B I L I T Y AVA I L A B I L I T Y PR I CI N G R E A L-T I M E BO O K I N G WHEELS UP 21
Slide 22: Proprietary algorithms and data engines create a deep moat
WHEELS UP PROPRIETARY ALGORITHMS AND DATA ENGINES CRE ATE A DEEP MOAT C R E AT I N G B E N E F I T S F O R D ATA L AY E R P R O P R I E TA R Y P L AT F O R M MARKE T PL ACE PART ICIPANT S B E H AV I O R A L D ATA C U S TO M E R D ATA F O R O P E R ATO R S WH EELS UP PR O PR I E TARY A LG O R I T H M
Slide 23: Wheels Up marketplace drives powerful network effects
WHEELS UP MARKETPL ACE DRIVES POWERFUL NET WORK EFFECTS WHEELS UP PROVIDES E XCEPTIONAL CUSTOMER EXPERIENCES ENABLES WHEELS UP TO DRIVES MORE REINVEST IN THE BUSINESS CUSTOMERS / SCALE •INCREASES RETENTION F O R O P E R AT O R S , D R I V E S : •CAPTURES MORE SPEND • I M P R O V E D A S S E T U T I
Slide 24: Long runways of growth for Wheels Up
LONG RUNWAYS OF GROW TH FOR WHEELS UP FUEL THE MARKETPLACE E XPAND P L AT F O R M F LY W H E E L G L O B A L LY ADJACENCIES AT T R A C T M O R E C U S T O M E R S A N D T H I R D EUROPE L U X U R Y L O D G I N G A N D YA C H T S PA R T Y O P E R AT O R S T O C O N T I N U E T O MIDDLE EAST EVENTS /
Slide 25: Visionary team with proven operational excellence
VISIONARY TE AM WITH PROVEN OPERATIONAL E XCELLENCE K EN NY D I CH T ER L EE APPL B AU M LT G EN T H O MA S B ER G E SO N ST EPH AN I E CH U N G DAN CR OWE L EE G OS S E T T G R E G G R EEL E Y F O UN D ER & CH I EF CH I EF MAR K E T I N G O FFI CER CH I EF O PER AT I N G O FFI CER CH I EF G R OW T
Slide 26: Supported by a deep and experienced board
SUPPORTED BY A DEEP AND E XPERIENCED BOARD BOARD DIRECTORS KENNY DICHTER DAV ID J. ADELMAN TIM J. ARMSTRONG C H I H T. C H E U N G AL AN GOLDFARB ERIC PHILLIPS BRIAN J. RADECKI ERIK SNELL BOARD OBSERVERS BILL BOISTURE EDITH COOPER R O B E R T F. M E H M E L ADM MICHAEL G. MULLEN JOE POULIN SUSAN SCH
Slide 27: Financial and Operational Overview
FI NA N CIA L A N D O PER AT I O NA L OV ER V I E W L E V ER AG I N G D EEP, O PER AT I O NA L E X PERT IS E TO D R I V E O UR T E CH N O LO GY-ENA B L ED A DVA N TAG E
Slide 28: Poised for continued active user, revenue and contribution growth
POISED FOR CONTINUED ACTIVE USER, REVENUE AND CONTRIBUTION GROWTH nore 1. SEE “DEFINITIONS OF KEY METRICS AND NON-GAAP Fl 2.24 20208 AUN-RATE REPRESENTS ANNUALIZED FINA 20184 ACTIVE USERS “) 38% CAGR 2098 20202021. 16,857 2022E REVENUE 36% CAGR $332 20184 $802 $690 $385 su440 CONTRIBUTION “) 43% CAG
Slide 29: Diversified and evolving business model
DIVERSIFIED AND EVOLVING BUSINESS MODEL 18% CAGR MEMBERSHIP REVENUE $103 (SMM) $87 $74 $62 @ core $54 a @ connect — li 2020€ 2021E 20228 20236 20246 25% CAGR FLIGHT REVENUE (SMM) a sai sail $662 @ cone Co @ connect (@ Won memBeR” i 2020€ 2021E 2022 20236 2024 OTHER REVENUE ane (SMM) $338 saz $254 IR
Slide 30: Transition towards full scale marketplace with asset-right foundation
TRANSITION TOWARDS FULL SCALE MARKETPLACE WITH “ASSET-RIGHT” FOUNDATION 2017A") 2020E Asset Light: ~15% Asset Light: ~45% MOWNED / LEASED 3rd PARTY FLEET MOWNED/LEASED MMANAGED © 3rd PARTY FLEET 1 Controlled Fleet 2 Managed and 3" Party Fleet Leveraging the King Air fleet to build a brand and member
Slide 31: Improving retail flight economics through scale and network efficiencies
IMPROVING RETAIL FLIGHT ECONOMICS THROUGH SCALE & NETWORK EFFICIENCIES ASSET LIGHT a Zi —— >30% (MCE TUS 15 - FLIGHT REVENUE VARIABLE COSTS Target Fight Margin 25% AIRCRAFT VARIABLE CHARTER FEE FIXED COSTS. USAGE ES Target Flight Margin Improve dynamic pricing and integration with 3 @ | _ Increase l
Slide 32: Significant improvement in unit economics over time
LEADING TO SIGNIFICANT IMPROVEMENT IN UNIT ECONOMICS OVER TIME WHEELS UP MARKETPLACE + AVIANIS PROFITABILITY IMPROVEMENT MARGIN IMPROVEMENT LEVERS + NETWORK OPTIMIZATION Flight Margin Improvement: +7.4% * AGGREGATE AND UNLOCK NEW DEMAND 42.9% + OPTIMIZE MATCHING OF DEMAND AND SUPPLY AT SCALE 14% mm
Slide 33: Growth underpinned by attractive long-term member relationships
GROWTH UNDERPINNED BY ATTRACTIVE LONG-TERM MEMBER RELATIONSHIPS TOTAL MEMBERS CORE MEMBER UNIT ECONOMICS ‘?) CUMULATIVE REVENUE (3) MARKETING EFFICIENCY () 21% CAGR nsn $300k 0% 19,633, $250k 25% 16,774 $200k 20% 13,082 pay 150k _ oral BS 100k 10% 4,864 1 ij $50k ma . -eue i | 7 208A —2019A 20208 20
Slide 34: Financial projections summary
FINANCIAL PROJECTIONS UP} (SMM, excluding users, members and flight legs) 2018A 2019A 2020E 2021E 2022E 2023E 2024E 2025E Members" 4,664 5,187 9,181 10,807 13,082 16,174 19,633 23,521 Active Users” 4,664 5,787 10,995 12,853 16,857 22,412 29,812 38,994 Live Flight Legs 1) 33,333 38,363 44,579 54,704
Slide 35: Transaction Overview
T R A NS ACT I O N OV ER V I E W
Slide 36: Transaction summary
TRANSACTION SUMMARY ‘) * Pro forma enterprise value of $2,091mm (1.8x 2022E revenue) + Private placement amount of $550mm, + Current owners will retain 68.9% ownership at close + Seller earnout of 9mm shares, split evenly into 3 tranches vesting at $12.50 / $15.00 / $17.50 + The transaction is expec
Slide 37: Framing the Wheels Up peer set
FRAMING THE WHEELS UP PEER SET aay | chewy @ PELOTON * Massive TAM with low penetration * Predictable, recurring revenue model * Best-in-class customer experience ) zalando NETFLI X + Engaged customer base + Levered to secular tailwinds vroom + Strong brands * Highly recognized brand Opendoor * Scal
Slide 38: Peer growth and margin benchmarking
Median: 28.7 % Median: (30.8)% 110.0 % Median: 23.7 % 55.8 % 44.0 % 45.1 % 36.0 % 21.4 % 13.5 % 23.7 % 16.1 % (11.2)% (24.2)% (10.6)% (30.8)% (34.7)% (47.8)% (55.3)% Median: 28.7 % Median: 8.4 % Median: 19.7 % 63.6 % 51.9 % 34.7 % 40.3 % 37.1 % 29.6 % 27.7 % 19.5 % 18.8 % 19.7 % 18.9 % 9.4 % 8.4 % 8
Slide 39: Peer benchmarking: margins
Median: 21.3 % Median: 57.0 % Median: 41.6 % 87.6 % 77.3 % 68.9 % 57.0 % 56.7 % 42.7 % 43.2 % 41.6 % 27.3 % 26.3 % 26.6 % 18.1 % 16.3 % 9.6 % 8.4 % N/A(2) 38.9 % Median: 2.7 % Median: 4.7 % Median: 10.9 % 24.1 % 27.2 % 10.9 % 7.0 % 5.2 % 4.6 % 2.9 % 4.7 % 4.3 % 0.7 % 2.4 % 1.8 % NM(2) (2.0)% (2.0)%
Slide 40: Peer revenue and EBITDA multiples
Median: 2.3 x Median: 4.2 x Median: 7.1 x 17.6 x 8.6 x 7.1 x 7.2 x 6.5 x 4.2 x 3.8 x 4.2 x 3.5 x 4.4 x 2.6 x 3.2 x 1.8 x 2.1 x 1.3 x 1.2 x Median: 3.5 x Median: 5.6 x Median: 8.3 x 23.5 x 11.3 x 10.6 x 8.3 x 8.1 x 5.7 x 5.6 x 4.7 x 4.6 x 4.9 x 5.2 x 4.1 x 2.4 x 2.0 x 2.3 x 1.6 x
Slide 41: Transaction creates significant future upside for new shareholders
TRANSACTION CREATES SIGNIFICANT FUTURE UPSIDE FOR NEW SHAREHOLDERS Implied EV Based on Comparable Companies Current Trading Multiples Summary of Approach . > Applies a range of 20x - 30x to Wheels Up's 2025E Adj. EBITDA to arrive at an implied future 2025E Adj. EBITDA $ 201 enterprise value as at De
Slide 42: Appendix
A PPEN D IX
Slide 43: Reconciliations of Non-GAAP Financial Measures - Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES - ADJUSTED EBITDA “) We include Adjusted EBITDA and Adjusted EBITDA Margin as supplemental measures for assessing operating performance in conjunction with the related GAAP amounts and for the following: + Used in conjunction with strategic internal pla
Slide 44: Reconciliations of Non-GAAP Financial Measures - Contribution and Contribution Margin
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES - CONTRIBUTION AND CONTRIBUTION MARGIN ‘) We include Contribution and Contribution Margin as supplemental measures for assessing operating performance in conjunction with the related GAAP amounts and for the following: + Used to understand our ability t
Slide 45: Definitions of Key Metrics and Non-GAAP Financial Measures
DEFINITIONS OF KEY METRICS AND NON-GAAP FINANCIAL MEASURES UP Active Users: Members and legacy DP) jet card holders as of the reporting date plus unique non-member users generating flight revenue in the reporting period. This metric excludes wholesale flight activity. Adjusted EBITDA: We define Adju