Flyexclusive, Inc. · AMEX:FLYX
Flyexclusive — EG Acquisition — SPAC Merger (October 2022)
42 slides from Flyexclusive's SPAC merger presentation, Oct 17, 2022
Slide 1: Exhibit 99.2
Exhibit 99.2 1
Slide 2: Disclaimers and Other Important Information
D I S C L A I M E R S A N D O T H E R I M P O R T A N T I N F O R M A T I O N This presentation (this “Presentation”) is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential acquisition by EG Acquisitio
Slide 3: Financial Information
F I N A N C I A L I N F O R M A T I O N The financial and operating forecasts and projections contained in this Presentation represent certain estimates of LGM Enterprises as of the date thereof. LGM Enterprises’ independent public accountants have not examined, reviewed or compiled the forecasts or
Slide 4: Table of Contents
TABLE OF CONTENTS I. EXECUTIVE SUMMARY II. WHO WE ARE III. WHAT WE DO IV. STRATEGY OVERVIEW V. FINANCIAL OVERVIEW 4
Slide 5: I. Executive Summary
I. EXECUTIVE SUMMARY I. EXECUTIVE SUMMARY 5
Slide 6: World-Class Aviation Partnership
I. EXECUTIVE SUMMARY WORLD-CLASS AVIATION PARTNERSHIP Decades of aviation experience and entrepreneurial excellence ✓ Experienced aviation entrepreneur and operator ✓ Built Segrave Aviation and sold to Delta Private Jets ✓ President of Delta Private Jets 2010 – 2013 ✓ Founded flyExclusive in 2015 Gr
Slide 7: SPAC Sponsorship with flyExclusive
I. EXECUTIVE SUMMARY SPAC SPONSORSHIP WITH FLYEXCLUSIVE Experienced sponsors with significant private-to-public / cross-over investment history, including specialized aviation knowledge ▪ 25+ year investment history with combined over ~$19 billion deployed to more than 250 investments across various
Slide 8: Proposed Transaction Summary
I. EXECUTIVE SUMMARY PROPOSED TRANSACTION SUMMARY Overview ▪ flyExclusive (the “Company”) is an established operator in the private aviation sector ▪ flyExclusive expects to enter into a business combination agreement with EG Acquisition Corp. (NYSE:EGGF) ▪ EG Acquisition Corp. is a Special Purpose
Slide 9: Investment Highlights
I. EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS Proven Operator 1 ▪ World-class private aviation executive who has founded, operated, and sold a previous business to Delta Air Lines Unique Business Model 2 ▪ Diversified customer channels, vertically integrated operations, and optimized asset utilization
Slide 10: II. Who We Are
II. WHO WE ARE I. EXECUTIVE SUMMARY 10
Slide 11: Growing TAM with Favorable Dynamics
II. WHO WE ARE GROWING TAM WITH FAVORABLE DYNAMICS A large, untapped user base with potential for meaningful adoption exists Industry Drivers Private Aviation TAM by Household Net Worth (“HHNW”) ▪ Potential TAM expected to grow to more than $43 billion driven by enhanced Landscape Shift in Air Trave
Slide 12: Company Timeline
II. WHO WE ARE COMPANY TIMELIME In seven years, flyExclusive has become the second largest operator (1) 1H 2022 Top U.S. Private Air Charter Operators Rank Company Hours Fractional 1 W heels Up 65,626 1Q 22 Sky Night Interiors 1Q 20 4Q 20 Paint 2 flyExclusive 23,874 2Q 21 Jet Club (2) MRO 2Q 20 3 XO
Slide 13: Company Size and Scope
II. WHO WE ARE COMPANY SIZE AND SCOPE “Floating Fleet” model with 100% operational control Operations Overview ▪ Headquartered in Kinston, North Carolina ▪ Fleet of 88 aircraft as of 2Q 2022 with a pipeline of 4 jets ▪ Currently, the Company has more than 800 employees▪ Operations centrally located
Slide 14: Organic Growth
II. WHO WE ARE ORGANIC GROWTH Consistent revenue and fleet expansion since inception despite market fluctuations (1) Annual Charter Revenue and Fleet Size ($ in millions) Revenue ’16A – ’24E CAGR 51% $656 Light Super-Mid Fleet Size ’16A – ’24E CAGR 32% $481 Heavy Mid Revenue $343 154 $208 122 $121 $
Slide 15: Industry Trend
II. WHO WE ARE INDUSTRY TREND Inelastic private charter demand while commercial aviation struggles Revenue Index Comparison: Private Charter, U.S. Scheduled Passenger Carrier, and flyExclusive Scheduled Passenger Revenue vs. Private Charter Revenue flyExclusive Charter Revenue vs. Private Charter Re
Slide 16: Market Capture
II. WHO WE ARE MARKET CAPTURE Taking share at an accelerated pace within established growing market flyExclusive Penetration of Private Jet Charter Market ($ in millions) Market ’16A – ’24E CAGR 3% flyExclusive Charter Revenue flyExclusive ’16A – ’24E CAGR 51% Other U.S. Private Jet Charter Revenue
Slide 17: Financial Snapshot
II. WHO WE ARE FINANCIAL SNAPSHOT Positioned for growth through fleet expansion and vertical integration Core Business Metrics Total Revenue 2023E Charter (1) FY ’19A-’23E Gross Margin CAGR 48.2% 50.1% 2023E 2023E Cash $63.7m $68.5m (1) (1) EBITDA Flow Industry-leading revenue growth and margins dri
Slide 18: III. What We Do
III. WHAT WE DO I. EXECUTIVE SUMMARY 18
Slide 19: Leading Operator with Differentiated Platform
III. WHAT WE DO LEADING OPERATOR WITH DIFFERENTIATED PLATFORM Superior business model designed to maximize utilization & flight unit economics Flight Programs WHOLESALE ▪ Non-guaranteed flights that are sold within 3 days of flight to maximize efficiency Contractual Committed Demand GUARANTEED REVEN
Slide 20: Wholesale
III. WHAT WE DO WHOLESALE Spot market sales used to optimize revenue and fleet positions Overview ▪ Wholesale is typically sold within 3 days of flight ▪ flyExclusive utilizes Wholesale to maximize hours and fleet utilization ▪ Serves as a resource for charter brokers and smaller fleet operators ▪ f
Slide 21: Guaranteed Revenue Program
III. WHAT WE DO GUARANTEED REVENUE PROGRAM Contracted monthly revenues for committed access to the fleet Overview ▪ Currently 30 designated aircraft ▪ GRP and Wholesale often share the same B2B customers, whereas GRP is protected with minimum guaranteed revenue with ensured favorable rates, terms, a
Slide 22: Jet Club
III. WHAT WE DO JET CLUB Direct, sustainable customer base with Y-o-Y membership growth of 200% (’21A-’22A) Overview Active and Projected Members ▪ Launched in May ‘20, the Jet Club offers non-refundable, multi-tiered membership options, and has a monthly fee 1,212 ▪ Daily rates subject to an annual
Slide 23: Fractional Ownership
III. WHAT WE DO FRACTIONAL OWNERSHIP Highly profitable, capital efficient program to complete customer offerings Summary Program Benefits ▪ Fractional program targets private travelers who fly 40 - 60 hours per year ▪ Customers purchase a share of a new aircraft (typically ~10 owners per plane) ▪ Co
Slide 24: Partnership
III. WHAT WE DO PARTNERSHIP Provides valuable service to aircraft owners while cost-effectively growing the fleet Winning Long-Term Partnerships ▪ flyExclusive purchases and upfits aircraft, then sells at a premium while retaining control ▪ flyExclusive assumes responsibility for maintenance and ope
Slide 25: Company Charter Revenue Mix
III. WHAT WE DO COMPANY CHARTER REVENUE MIX Evolution of diversified charter revenue and committed demand 2020A 2019A 2021A 2022P 2023E 2024E 5% 5% 1% 7% 12% 14% 14% 18% 20% 0% 0% 37% 1% 27% 8% 20% 100% 10% 58% 44% 45% 33% 7% 9% 9% 95% Contractual Committed Demand % of Total: 0% 5% 37% 79% 87% 86% L
Slide 26: IV. Strategy Overview
IV. STRATEGY OVERVIEW I. EXECUTIVE SUMMARY 26
Slide 27: Leading Customer Experience
IV. STRATEGY OVERVIEW LEADING CUSTOMER EXPERIENCE 99.6% customers fulfilled on flyExclusive fleet Customer Experience flyExclusive’s Customer to Aircraft Ratio 14.0 13.6 12.1 ▪ In-house technology, exceptional service reliability, and optimized business 7.0 model allows for consistent high-quality e
Slide 28: Key Strategic Initiatives
IV. STRATEGY OVERVIEW KEY STRATEGIC INITIATIVES Focus on executing growth and continued vertical integration ▪ Growth of industry leading programs with 99.6% of customers being fulfilled by flyExclusive fleet Program ▪ Focus on expansion of fractional ownership of Cessna Citation CJ3+, XLS, and Lati
Slide 29: Optimal Facilities Location
IV. STRATEGY OVERVIEW OPTIMAL FACILITIES LOCATION Low-cost, centralized location is ideal for flyExclusive’s headquarters and campus flyExclusive Campus ▪ Located in the North Carolina Global TransPark • Awarded the 2020 Job Development Investment Grant of $2.3 million over 12 years by the state gov
Slide 30: Maintenance, Repair & Overhaul
IV. STRATEGY OVERVIEW MAINTENANCE, REPAIR & OVERHAUL Extensive investments in maintenance, paint, interiors, and avionics MRO Benefits On-site Infrastructure ▪ 60,000+ sq ft facilities to perform 24/7 ▪ 24/7 operations ~3x the repairs in-house Operations MRO output ▪ 48,000 sq ft hangar completed in
Slide 31: Additional Competitive Differentiation
IV. STRATEGY OVERVIEW ADDITIONAL COMPETITIVE DIFFERENTIATION Building a consistent brand and solving training delays Modernized Uniform Fleet Avionics - Garmin G5000 Interiors Significant reduction in maintenance Complete refurbishment with costs and more uptime single color scheme Paint New paint w
Slide 32: Comparison to Major Competitors
IV. STRATEGY OVERVIEW COMPARISON TO MA JOR COMPETITORS Optimal business model with key differentiators Key Competitors Asset Growth Aircraft Acquisition Operator Acquisition rd Customer Fulfillment (Affiliate Lift) 99.6% on flyExclusive Fleet 3 Party Reliance EBITDA Generation Positive Inconsistent
Slide 33: V. Financial Overview
V. FINANCIAL OVERVIEW I. EXECUTIVE SUMMARY 33
Slide 34: Revenue and Gross Profit Summary
V. FINANCIAL OVERVIEW REVENUE AND GROSS PROFIT SUMMARY Revenue and Gross Margin Breakout ▪ Charter rates and programs ($ in millions) matched to customer’s needs Revenue Charter Gross Margin $729 ▪ Pricing designed so that each $335 aircraft model generates cash 51.1% 51.3% 50.1% 46.0% 48.0% 47.1% $
Slide 35: Refurbishment and Modernization Investment
V. FINANCIAL OVERVIEW REFURBISHMENT AND MODERNIZATION INVESTMENT $19+ million spend on strategic growth in 2021A and 2022P (1) (1) 2021A Capex 2022P Capex ($ in millions) ($ in millions) $11.2 $7.9 $3.2 $3.4 $2.0 $3.4 $2.0 $1.3 $1.4 $0.2 $1.1 $1.2 Paint Interiors Buildings IT Dev Hangar 4 2021A Tota
Slide 36: Impact of Strategic Refurbishment Investment
V. FINANCIAL OVERVIEW IMPACT OF STRATEGIC REFURBISHMENT INVESTMENT ~$15m of 2022P forgone earning potential to allow for refurbishment program Illustrative Refurbishment Impact ▪ Significant investment throughout 2021 and 2022 on paint & interior facilities as well as 2021A 2022P costs associated wi
Slide 37: Summary P&L
V. FINANCIAL OVERVIEW SUMMARY P&L Continued focus on vertical integration and scaling flight offerings Historical and Projected Income Statement ($ in 000s) EBITDA is a non-GAAP * financial measure 2019A 2020A 2021A 2022P 2023E 2024E ▪ We include EBITDA as a Revenues supplemental measure for assessi
Slide 38: Transaction Summary
V. FINANCIAL OVERVIEW TRANSACTION SUMMARY Highly attractive valuation for an established operator in the private aviation sector (1) ▪Total cash investment of up to $310 million Capitalization (1) ▪Current owners will retain 62.1% ownership at close Share Price $10.0 ▪Transaction is expected to clos
Slide 39: Valuation Benchmarking
V. FINANCIAL OVERVIEW VALUATION BENCHMARKING EV / CY23E Revenue Travel / Leisure Median: 1.6x Luxury Brands Median: 4.4x Aviation Services Median: 0.9x 10.4x 6.8x 6.5x 4.4x 4.1x 3.8x 2.8x 1.8x 1.7x 1.7x 1.5x 1.3x 0.7x 0.7x 0.4x 0.1x NM EV / CY23E EBITDA Travel / Leisure Median: 18.8x Luxury Brands M
Slide 40: Key Assumptions Disclosures & Definitions
V. FINANCIAL OVERVIEW KEY ASSUMPTIONS DISCLOSURES & DEFINITIONS ▪ Revenue: Revenue generated from aircraft in service. Fleet count is ▪ Revenue Mix: Evolution of 2022P, 2023E and 2024E revenue calculated consistent with 2021 actuals. 2022P, 2023E and 2024E assumed number according to contractual com
Slide 41: Investor Presentation Summary Risk Factors
I N V E S T O R P R E S E N T A T I O N S U M M A R Y R I S K F A C T O R S Certain of the following risk factors apply to the business and operations of LGM and will also apply to the business and operations of the combined company following the completion of the Potential Business Combination. If
Slide 42: Thank You
THANK YOU I. EXECUTIVE SUMMARY 42