Slide 1: A Portfolio of Powerful Companies: FY23 Year-End Update
JUL 2023 A PORTFOLIO OF POWERFUL COMPANIES FY23 Year-End Update NASDAQ: AIRT
Slide 2: Safe Harbor
Statements in this document, which contain more than historical information, may be considered forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which are subject to risks and uncertainties. Actual results may differ materially from those e
Slide 3: Executive Summary: Who We Are
WHO WE ARE ■ AIR T, INC. (NASDAQ: AIRT) is an industrious American company focused on generating after tax cash flow per share. EXECUTIVE ■ Founded in 1980, our businesses have a history of growth and cash flow generation. ■ Current management has been in place since 2013. The two largest shareholde
Slide 4: Contents
1. About AIR T, INC. CONTENTS 2. Performance 3. Our Growth Strategies 4. Appendix - Risk Factors 4
Slide 5: About Air T, Inc.
ABOUT AIR T, INC. EVSGATNTE A POR|FOLIO OF POWERFUL COMPANIES
Slide 6: We are an industrious American company established 40+ years and growing
We are an industrious American company established 40+ years and growing. ■ Our businesses have a history of growth and cash flow generation. ■ We seek to identify and empower individuals and teams who will operate businesses well, increasing value over time. ■ We work to activate growth and overcom
Slide 7: Investor-Operator Partnership
“Investor-Operator Partnership” is designed to drive short and long-term value creation. “We want our businesses to be managed by dynamic individuals within high-performance teams. We are set up to make space for dynamos and support their enterprises. The holding company team seeks to focus resource
Slide 8: Flywheel
identify good ideas build an investor match with capital brand and network partners FLYWHEEL generate extremely secure and attractive returns empower dynamic on capital management 8
Slide 9: FY23 Revenue, Adj. EBITDA and Core Segments
$247M $6.0M 3 14 584 FY23 Revenue FY23 Adj. EBITDA* CORE SEGMENTS COMPANIES EMPLOYEES COMMERCIAL JET ENGINES AND PARTS GROUND EQUIPMENT SALES OVERNIGHT AIR CARGO *See Adjusted EBITDA reconciliation on slide 31 9
Slide 10: Air T, Inc. Financial Highlights
FY Results AIR T, INC. Financial Highlights (For the Twelve-Month Period Ended 3/31/23) FY23 FY22 FY21 FY20 Revenue $247.3M $177.1M $175.1M $236.8M Operating Income ($4.4M) $8.8M ($9.2M) $7.3M Adjusted EBITDA* $6.0M $11.4M ($1.3M) $9.0M *See Adjusted EBITDA reconciliation on slide 31 ■ FY23 saw a 40
Slide 11: Commercial Jet Engines and Parts
SEGMENT 1 Commercial Jet Engines and Parts FY23 FY22 Revenue $101.7M $57.7M Operating Income ($1.0M) $3.6M ■ We buy aircraft and engines, then either lease, trade, or send them to part out. ■ We supply parts to maintenance, repair, and overhaul facilities (MRO). ■ Companies in this segment include C
Slide 12: Overnight Air Cargo
SEGMENT 2 Overnight Air Cargo FY23 FY22 Revenue $90.5M $74.4M Operating Income $4.0M $2.8M ■ We operate two of the seven FedEx feeder airlines. ■ Business units Mountain Air Cargo and CSA Air have a 41-year history with FedEx. ■ Air T Companies since 1982, 1983 ■ Air T added Worldwide Aircraft Servi
Slide 13: Ground Equipment Sales
SEGMENT 3 Ground Equipment Sales FY23 FY22 Revenue $48.5M $42.2M Operating Income $3.1M $3.2M ■ We manufacture deicing equipment, scissor lift trucks, and other ground support equipment. ■ Sole-source deicer supplier to the US Air Force for 19 years. ■ Highly efficient light manufacturing facility.
Slide 14: Investing For Growth
Investing For Growth Investment manager focused on unearthing fundamentally attractive small and mid-cap opportunities. Allows us to further expand upon our idea generation capabilities to identify, analyze, develop and execute innovative investment strategies that are aimed at building better finan
Slide 15: Air T Digital
Air T Digital As of March 31 2023 2022 ARR1 $4.7M $3.9M ■ We invest in companies that provide digital aviation business services which generate recurring subscription revenues. 1ARR, or Annual Recurring Revenue, is defined as the monthly recurring revenue as of March 31, 2023 and March 31, 2022, mul
Slide 16: Air T Asset Management
Air T Asset Management As of March 31 2023 2022 Assets Managed for $183M $126M Investor Partners ■ We manage assets for our investor partners. The asset types include leased aircraft, consignments, teardowns as well as domestic and African equities. ■ Through fiscal year-end 2023, Air T’s asset mana
Slide 17: News: WASI Acquisition
WASI Acquisition ■ On January 31, 2023, we completed the acquisition of Worldwide Aircraft Services (“WASI”), an aircraft repair station that begin operations in 1986 located in Springfield, MO, for $3.1M. NEWS 17
Slide 18: Over the last ten years, revenue has increased 187% and is more diversified
FINANCIAL HIGHLIGHTS Over the last ten years, revenue has increased 187% and is more diversified. $240M* REVENUE 24% SEGMENTS Commercial Aircraft & Engines +187% Overnight Air Cargo Ground Support Equipment $84M 43% 62% 33% 38% FY14 FY23 *Excludes revenue in FY23 earned outside of our core segments.
Slide 19: Non-Operating Assets
OTHER Non-Operating Assets AIR T, Inc. owns the following public and private securities: AIR T, INC. Non-Operating Assets (In Millions) 3/31/23 3/31/22 3/31/21 3/31/20 Insignia Systems (ISIG) Stock – 0.5M Shares1 $3.8 $4.6 $4.3 $2.6 CCI Investment (20.1% as of 3/31/23)2 $3.1 $2.6 $3.8 $3.4 Oxbridge
Slide 20: Capitalization Table
CAPITALIZATION TABLE AIR T, INC.’s capital structure is designed to appropriately shape our bet sizes; in part by utilizing non-recourse leverage For example, AIR T guarantees Contrail’s bank loans to a maximum limit of $1.6 million. 1We entered into interest rate swaps to provide a fixed rate of 5.
Slide 21: Calibrated Bets & Capitalization Structure
STRUCTURE Calibrated Bets & Capitalization Structure Tailored, Limited, Convex Exposures • Convexity-promoting organizational design • Kelly-calibrated bets: sized to edge & bankroll • Limit downside: tailored exposures Risk Management: Downside Protection • Anti-fragile company • Islands of segrega
Slide 22: Since 9/30/2013, share price of AIRT has increased at 14.5% per annum
FINANCIAL HIGHLIGHTS Since 9/30/2013, the share price of AIRT has increased at 14.5% per annum*+. $26.47 + Compares to 10.2% return of the S&P 500 over the same period *Reporting period 9/30/13 to 6/26/23, includes $4M Trust 22 *Preferred dividend to common shareholders
Slide 23: Since 1994, a history of long-term and sustained financial health
FINANCIAL HIGHLIGHTS Since 1994, our company has had a history of long-term and sustained financial health. Revenue ($ in Millions) Operating Income ($ in Millions) 300 15 250 10 200 5 150 - 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 24: Growth Strategies
GROWTH STRATEGIES EVSGATNTE A POR|FOLIO OF POWERFUL COMPANIES
Slide 25: Our four growth strategies are...
GROWTH STRATEGIES Our four growth strategies are... ■ Invest to build our current high-performing businesses. ■ Seek to acquire new cash-flow generating businesses. ■ Identify great marketable securities or alternative assets. ■ Create unique investment products and fund alongside third- party capit
Slide 26: Reinvest in projects at our high-performing businesses
GROWTH STRATEGY 1 We plan to reinvest in projects at our high-performing businesses by... ■ Purchasing commercial aircraft for trading, leasing and part-out. ■ Purchasing engine parts inventory. ■ Funding deicer builds for Global Ground Support. 26
Slide 27: Acquire new cash-flow generating businesses
GROWTH STRATEGY 2 We seek to acquire new cash-flow generating businesses by... ■ Identifying and acquiring high- performing businesses with edge in the marketplace, which either complement our current portfolio or diversify into industries beyond aviation. 27
Slide 28: Identify great marketable securities or alternative assets
GROWTH STRATEGY 3 We plan to identify great marketable securities or alternative assets by... ■ Searching for another committed activist opportunity. ■ Investing in distressed and high yield securities. ■ Investing in small cap securities. ■ Further investing in our current securities portfolio. 28
Slide 29: Create unique investment products with outside capital partners
GROWTH STRATEGY 4 We plan to create unique investment products with outside capital partners by... ■ Offering thoughtful and sustainable products with attractive return profiles ■ Attracting and retaining sophisticated investment professionals and creating space for talented asset managers. 29
Slide 30: Theoretical Toy Model: Public Company versus Private Equity Fund
TOY MODEL Theoretical Toy Model Public Company versus Private Equity Fund Question: Does a permanent capital vehicle like a ASSUMPTIONS public company have a structural advantage compared Annual Return on Investment 5% to a 7-year PE fund vehicle? Taxes Paid by PE Fund @ 7-year Intervals 30% Hypothe
Slide 31: Adjusted EBITDA Reconciliation
FY Results Adjusted EBITDA Reconciliation FY23 FY22 FY21 FY20 Operating Income (GAAP) ($4.4M) $8.8M* ($9.2M) 7.3M Depreciation (excluding leased $2.5M $1.6M $1.2M $1.3M engine depreciation) Asset Impairment, write-downs, $7.8M $0.8M $6.6M $0.0M restructuring Gain on sale of PP&E $0.0M $0.0M ($0.0M)
Slide 32: Q&A with Management
Q&A WITH MANAGEMENT 32
Slide 33: Interactive Q&A through Slido.com
Our interactive Q&A capability, through Slido.com, allows shareholders to ask questions of our management. Recently submitted questions have been answered below. To submit your own question, go to (https://app.sli.do/event/j8drfixw).1 Do you pay ordinary dividends or make partner distributions?2 No.
Slide 34: Appendix: Risk Factors
APPENDIX Risk Factors APOR[JFOLIO OF POWERFUL COMPANIES
Slide 35: Summary Risk Factors
For more detail and explanation, please see the Company’s public filings including its Form S-3 and prospectus supplements filed with the SEC. SUMMARY RISK FACTORS The purchase of securities of Air T, Inc., the “Company,” is highly speculative and involves a very high degree of risk. An investment i
Slide 36: Summary Risk Factors: Segment Operations
For more detail and explanation, please see the Company’s public filings including its Form S-3 and prospectus supplements filed with the SEC. SUMMARY RISK FACTORS Risks Related to Our Segment Operations ● The operating results of our four segments may fluctuate, particularly our commercial jet engi
Slide 37: Summary Risk Factors: Segment Operations (continued)
For more detail and explanation, please see the Company’s public filings including its Form S-3 and prospectus supplements filed with the SEC. SUMMARY RISK FACTORS Risks Related to Our Segment Operations (continued) ● Our lessees may fail to adequately insure our aircraft or engines which could subj
Slide 38: Summary Risk Factors: Structure and Financing/Liquidity
For more detail and explanation, please see the Company’s public filings including its Form S-3 and prospectus supplements filed with the SEC. SUMMARY RISK FACTORS Risks Related to Our Structure and Financing/Liquidity Risks (continued) ● Our current financing arrangements require compliance with fi