Volato Group, Inc. · AMEX:SOAR
Volato — Investor Presentation (April 2024)
40 slides from Volato's investor presentation, Apr 24, 2024
Slide 1: Enjoy Flying More - Investor Presentation April 2024
® ENJOY FLYING MORE INVESTOR PRESENTATION APRIL 2024 NYSE:SOAR
Slide 2: Disclaimer
Disclaimer 2 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,
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont’d) 2 This Presentation also includes certain projections of non-GAAP financial measures. Due to the high variability and difficulty in making accurate forecasts and projections of financial information, together with the fact that some information may be excluded because it is not a
Slide 4: Table of Contents
Table of Contents Company Overview Business Model Volato Fleet Financials 2
Slide 5: Company Overview
COMPANY OVERVIEW Vile
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-Generative Business Model
Business Model: Highly Scalable and Cash-Generative 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 utilizati
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: Full fleet, including fractional, managed and leased aircraft under operational control, and managed-only fleet. 22 HondaJets & 4 Gulfstream G280s. For further detail regarding our delivery expectations, please refer to slide 35. 26 Aircraft on Firm Order2 31 Aircraft Cu
Slide 10: Private Aviation: A Large and Fast-Growing Market with Favorable Tailwinds
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 Growing
Slide 11: Rapidly Capturing Market Share in the Proven Fractional Market Segment
Rapidly Capturing Market Share in the Proven Fractional Market Segment Source: SherpaReport. Notes: Year founded included in parentheses. 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 largest ope
Slide 12: Leadership: A Proven Management Team with Complementary Experience
Operational team of seasoned industry professionals with deep industry experience Led by an entrepreneurial team and a commercial team with prior industry experience Matt Liotta Mark Heinen Nicholas Cooper CFA SteveDrucker KeithRabin Gary Waldman Brian Coulter Co-founder&CEO CFO Co-founder &CCO CTO
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 Mar-2022 West Coast expans
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 Q1 2023 Q2 2023 Q3 2023 Q4 2023 86 89 90 88 Volato’s ongoing commitment to customer satisfacti
Slide 17: Business Model
BUSINESS MODEL Vile
Slide 18: Focused on Fleet Growth & Maximizing Utilization
Core Floating Fleet Part 135 Charter Operation 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 via a robust commercia
Slide 19: Volato's fractional model integrates benefits of fractional and whole aircraft ownership
Volato's fractional model integrates the benefits of both traditional fractional programs and whole aircraft ownership. Whole Aircraft Ownership Purchase an aircraft outright and hire pilots directly or work with an aircraft management company. Traditional Fractional Model Traditional fractional mod
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 annual re
Slide 21: Creating Excess Unused Fleet Availability
50 hrs. non-owner 750 hrs. owner Average Occupied Yield $6,500 per hr. $4,700 per hr. $4,800 per hr. $6,500 per hr. $4,700 per hr. 504 hrs. non-owner (63%)2 296 hrs. owner (37%) Average Occupied Yield $5,800 per hr. Volato’s Fractional Program: Creating Excess Unused Fleet Availability 21 Volato’s f
Slide 22: Maximizing Fleet Utilization: Commercial Strategy
Maximizing Fleet Utilization: Commercial Strategy Owner Usage Charter Jet Card/Deposit Empty Legs E.g., selling an empty leg produces less revenue, but since it’s filling a leg that would otherwise fly at no revenue, the revenue represents pure incremental margin. 2 Volato implements a commercial st
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. Operates a floating fleet with no central base for either aircraft or c
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: Volato Uniquely Positioned to Improve Aviation Software
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 effectivel
Slide 26: Vaunt: A Unique Approach to Monetizing Empty Legs
Over 30% of private aviation flights are empty leg repositing flights, indicating significant wastage and lost revenue opportunities. Rather than market to existing private aviation participants at a discount, Vaunt is aimed towards people who aspire to fly private but do not have the capability. Va
Slide 27: Volato Fleet
VOLATO FLEET Vile
Slide 28: Volato's Fleet: The HondaJet
Volato’s Fleet: The HondaJet 28 Sources: 1. Manufacturer data Manufacturer data Argus 2023 data & internal analysis Volato’s preferred aircraft provides the highest efficiency compared to other Light Jets, especially the Phenom 300, currently the most established Light Jet. The largest market segmen
Slide 29: 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: Revenue & Margin based on estimated
Slide 30: Historical Floating HondaJet Fleet Growth
Volato’s Fleet: Historical Floating HondaJet Fleet Growth 30 5 5 6 9 9 9 9 11 1 2 4 5 6 9 11 13 6 7 10 14 15 18 20 24 0 5 10 15 20 25 35 30 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Fractional Leased In a tight aircraft delivery market, Volato has secured significant firm order
Slide 31: Financial Information
FINANCIAL INFORMATION Vile
Slide 32: Volato Financial Performance At-a-Glance
$2.0 $3.5M $3.8M $5.1M $6.7M $9.7M $9.5M $11.8M $25.0M $11.0M $5.7M $25.9M $5.7M $15.7 $1.4M $3.8M $4.6M $4.8M $3.3M $3.3M $3.7M $3.9 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 * Other Volato Financial Performance At-a-Glance 32 Quarterly Revenue Commentary 1 Aircraft Transactio
Slide 33: Clear Path To Profitability: Through a Continued Focus on Strong Execution
Clear Path To Profitability: Through a Continued Focus on Strong Execution 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
Slide 34: Clear Path To Profitability: Breakeven from Flight Operations
0 200 400 600 800 1,000 1,200 1,400 0 10 20 30 40 50 60 70 80 Annual Flight Hours Per Aircraft Run Rate HondaJet’s in Floating Fleet Breakeven (100% fractional) Volato Actual Ops Performance Breakeven (50% fractional / 50% leased) Dec '22 Dec '23 Dec ‘21 Dec '24 (F) As Volato increases its floating
Slide 35: Generating significant cashflow by growing the floating fleet
35 Monthly Management Fee HondaJets Revenue: $80K per month per plane Gulfstream G280s Revenue: $300K per month per plane 2024 Fractional Share Purchase HondaJets Revenue: $72M to $90M Margin: $16M to $20M Gulfstream G280s Revenue: $27M to $55M Margin: $6M to $12M Ongoing Flight Usage HondaJets Reve
Slide 36: Key Performance Indicators
Key Performance Indicators: Trending positively through strategy implementation 36 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Total Flight Hours 813 1,199 1,307 1,712 2,103 2,919 2,747 3,504 Empty Percentage 38.0% 41.1% 40.2% 39.0% 41.2% 39.6% 36.6% 37.9% Demand Mix: Owner 91% 8
Slide 37: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Vile
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 39
Slide 39: Volato Group: Investment Highlights
Volato Group: Investment Highlights 39 LARGE MARKET SIZE Focused on the largest market segment; Light Jets. EXPERIENCED MANAGEMENT TEAM Team with both deep aviation industry experience and from the technology industry. SUPERIOR BUSINESS MODEL Capital-light strategy– aircraft owned by our customers,
Slide 40: Enjoy Flying More
ENJOY FLYING MORE