Sky Harbour Group Corporation · NYSE:SKYH
Sky Harbour — Sidoti Small Cap Conference September 2024
20 slides from Sky Harbour's conference presentation, Sep 19, 2024
Slide 1: Investor Presentation for Sidoti Small Cap Conference
CONFIDENTIAL Investor Presentation for Sidoti Small Cap Conference September 2024
Slide 2: Disclaimer: Important Information for Investors
DISCLAIMER Important Information for Investors This investor presentation (this “Presentation”) (references to which shall be deemed to include any information which has been or may be supplied in writing or orally in connection herewith or in connection with any further inquiries) has been prepared
Slide 3: Disclaimer: Financial Information; Non-GAAP Financial Measures
DISCLAIMER Financial Information; Non-GAAP Financial Measures Certain financial information and data contained in this Presentation is unaudited and does not conform to Regulation S-X or Regulation G. Accordingly, such information and data may not be included in, may be adjusted in, or may be presen
Slide 4: Disclaimer: Forward-Looking Statements
DISCLAIMER These forward-looking statements are subject to a number of risks and uncertainties, including (i) changes in global, regional and local business, market, financial, political and legal conditions; (ii) failure to realize the anticipated benefits of the Offering; (iii) risks relating to t
Slide 5: Disclaimer: No Representations and Warranties
DISCLAIMER No Representations and Warranties No representation, warranty or undertaking, express or implied, is made or will be given by Sky Harbour and its affiliates and Representatives as to the fairness, accuracy, completeness or reliability of this Presentation and the information and or statem
Slide 6: Aviation Infrastructure Real Estate
AV I AT I O N INFRASTRUCTURE R E A L E S TAT E A Specialty Real Estate Platform Robust Project Returns Deep Competitive Moats Recession Resilience Significant Scalability Upside Optionality 5 ©2024 Sky Harbour Confidential and Proprietary
Slide 7: Presenters
PRESENTERS Tal Keinan Francisco Gonzalez Tim Herr CEO CFO Treasurer / VP Finance ------------------------------------ --------------------------------------- --------------------------------------- • Sky Harbour Founder • Oversees Sky Harbour’s financial, • Joined Sky Harbour at company • Clarity Ca
Slide 8: Sky Harbour – Snapshot
SKY HARBOUR – SNAPSHOT Applying a new business model to a longstanding opportunity • Secure land at key US airfields Business • Develop campuses of private hangars • Lease hangars and manage campuses • Mid-teens stabilized yield on cost = >30% return on equity Goals • 50+ airfields • Remain largest
Slide 9: Section I: Market Opportunity
SECTION I: MARKET OPPORTUNITY ©2024 Sky Harbour Confidential and Proprietary 8
Slide 10: Business Aviation Suffers from Chronic Hangar Deficit
BUSINESS AVIATION SUFFERS FROM CHRONIC HANGAR DEFICIT Cumulative US Business Aircraft Fleet Square Footage Consistent Demand Growth over pre-COVID Decade 50% Increase • 29,600,000 square feet net growth in US business aviation (BizAv) fleet • 16,600,000 square feet net growth in >24’ tail height seg
Slide 11: Hangar Supply Constrained
HANGAR SUPPLY CONSTRAINED Existing hangar infrastructure already insufficient • Hangar occupancy now significantly >100% at major BizAv hubs • Demand growing much faster than supply • Community hangar format suboptimal for high-end tenants Airport land is a scarce and dwindling resource • Little dev
Slide 12: Section II: Company Overview
S E C T I O N I I : C O M PA N Y O V E R V I E W ©2024 Sky Harbour Confidential and Proprietary 11
Slide 13: Site Acquisition
SITE ACQUISITION Proprietary Site Acquisition Methodology Highly-trained Veteran-led Team Unsolicited bid to Sub-lease or Assignment Sponsor-Initiated RFP Targeting Criteria(1) Target Map Airport Sponsor ▪ EX: ▪ EX: ▪ Unprovoked ⎯ Houston (SGR) ⎯ Miami (OPF) ⎯ Nashville (BNA) 1. Metro center’s exist
Slide 14: Illustrative Scaling of Business and Unit Economics
Illustrative Scaling of Business and Unit Economics Airfields 12 20 50 Total Capital $600,000,000 $1,100,000,000 $3,000,000,000 Assumptions Total Debt $420,000,000 $792,000,000 $2,400,000,000 • Average airfield development cost projected to grow over time from current levels at CPI Leverage 70% 72%
Slide 15: Sky Harbour Group Corp Financial Results
20 40 60 80 100 120 140 160 0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 SG&A Q1'21 Q1'21 (In millions) (In millions) Q2'21 Q2'21 Q3'21 Q3'21 Q4'21 Q4'21 Q1'22 Q1'22 Q2'22 Q2'22 Q3'22 Q3'22 Q4'22 Q4'22 Q1'23 Q1'23 Q2'23 Q2'23 Q3'23 Q3'23 Q4'23 Q4'23 Step Function: SJC, Q2 2024 Q1'24 Q1'24 ©2024
Slide 16: Potential Revenue Opportunity at SHER Stabilization
SITE ACQUISITION New Ground Leases Generate New Target Stabilized Revenue Level $200mm $180mm Potential Revenue Opportunity at SHER Stabilization August 2024 $160mm $140mm $120mm $100mm $80mm $60mm 1st Obligated Group $40mm $20mm $0mm Apr- Feb- May- Oct- Jan- Jun- Jul- Mar- Nov- Dec- 2024 2025 Sep-
Slide 17: Additional Revenue Streams
ADDITIONAL REVENUE STREAMS Real estate as beachhead to capture additional BizAv revenue streams 1 Fuel • Variable margin • Minimum Uplift Requirement 2 Insurance 3 Charter Brokerage 4 Aircraft Brokerage 5 Finance 6 Management 7 Maintenance 8 Servicing and Detailing 9 On-the-road services 16 ©2024 Sk
Slide 18: Strong Liquidity and Long-Term Permanent Debt
STRONG LIQUIDITY AND LONG-TERM PERMANENT DEBT U.S. TREASURIES AND CASH SERIES 2021 BOND DEBT SERVICE (In thousands) (In millions) Cash Treasuries Bond Principal Bond Interest (Millions) 14 $26,809 12 10 8 6 4 2 $122,304 0 2034 2035 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2036 2054 ~$150 Mi
Slide 19: September 2024 PIPE Announcement
SEPTEMBER 2024 PIPE ANNOUNCEMENT $31.8 million proceeds at net purchase price of $9.50 Sources ($ in thousands) • Closing October 2024 PIPE Closing #1 $31,800 • Each investor has the option to purchase an additional Class A Common Stock share at PIPE Closing #2 $31,800 a net price of $9.50 in Decemb
Slide 20: Aviation Infrastructure Real Estate – Contact Us
AV I AT I O N INFRASTRUCTURE R E A L E S TAT E Robust Project Returns Scalability Deep Competitive Moats Recession Resilience Upside Optionality Contact Us investors@skyharbour.group ©2024 Sky Harbour Confidential and Proprietary 19
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