Slide 1: A Portfolio of Powerful Companies: FY24 Q4 Update
March 31, 2024 A PORTFOLIO OF POWERFUL COMPANIES FY24 Q4 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 focusing on growing intrinsic value per share at a high rate. 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 s
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. ETGATNTE 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: Airting Flywheel
Identify good ideas Build a brand and industrious Match with network capital partners AIRTING FLYWHEEL Generate Secure and extremely empower attractive returns dynamic on capital management ETEGANTA A PORGHFOLIO OF POWERFUL COMPANIES
Slide 9: FY24 Revenue and Adjusted EBITDA by Core Segments
$287M $5.6M 3 14 624 FY24 Revenue FY24 Adj. EBITDA* CORE SEGMENTS COMPANIES EMPLOYEES COMMERCIAL JET ENGINES AND PARTS GROUND EQUIPMENT SALES OVERNIGHT AIR CARGO *See Adjusted EBITDA reconciliation on slide 33 9
Slide 10: AIR T, INC. FY24 Financial Highlights
FY Results AIR T, INC. FY24 Financial Highlights (For the Twelve-Month Period Ended 3/31) FY24 FY23 FY22 FY21 FY20 Revenue $286.8M $247.3M $177.1M $175.1M $236.8M Operating Income $1.3M ($4.4M) $8.8M ($9.2M) $7.3M Adjusted EBITDA* $5.6M $6.0M $11.4M ($1.3M) $9.0M *See Adjusted EBITDA reconciliation
Slide 11: Commercial Jet Engines and Parts
SEGMENT 1 Commercial Jet Engines and Parts Twelve-Month Period FY24 FY23 Ended 3/31 Revenue $125.5M $101.7M Operating Income $4.2M ($1.0M) ■ 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). ■ Com
Slide 12: Overnight Air Cargo
SEGMENT 2 Overnight Air Cargo Twelve-Month Period FY24 FY23 Ended 3/31 Revenue $115.2M $90.5M Operating Income $6.8M $4.0M ■ 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
Slide 13: Ground Equipment Sales
SEGMENT 3 Ground Equipment Sales Twelve-Month Period FY24 FY23 Ended 3/31 Revenue $37.2M $48.5M Operating Income ($1.6M) $3.1M ■ We manufacture deicing equipment, scissor lift trucks, and other ground support equipment. ■ Sole-source deicer supplier to the US Air Force for 20 years. ■ Highly efficie
Slide 14: Corporate and Other Subcomponent of Operating Income
SEGMENT 4 Corporate and Other Subcomponent of Operating Income FY24 FY23 FY22 FY21 FY20 Corporate ($3.1M)2 ($6.0M) ($5.6M)1 ($5.4M) ($5.3M) Other3 ($5.0M) ($4.6M) ($4.4M) ($4.0M) ($3.8M) Total Corporate and Other ($8.1M) ($10.6M) ($10.0M)1 ($9.4M) ($9.1M) 1 Excludes one-time Employee Retention Credi
Slide 15: 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 16: Air T Digital
Air T Digital As of 3/31/24 3/31/23 3/31/22 ARR1 $5.9M $4.7M $3.9M ■ We invest in companies that provide digital aviation and other business services that generate recurring subscription revenues. 1ARR, or Annual Recurring Revenue, is defined as the monthly recurring revenue as of March 31, 2024, Ma
Slide 17: Aircraft JVs
Aircraft JVs As of 3/31/24 3/31/23 3/31/22 Aircraft JV Assets $429M $150M $84M Under Management ■ We manage assets for ourselves and our investor partners. The asset types include leased aircraft, consignments, and teardowns. ■ Our Aircraft JVs receive standard aviation industry management fees that
Slide 18: BCCM Advisors
BCCM Advisors As of 3/31/24 3/31/23 3/31/22 BCCM Assets Under $37M $33M $43M Management ■ Air T‘s wholly-owned management company, BCCM Advisors, is the manager of a fund focused on growth “at-a- reasonable-price” US Equities, as well as a fund dedicated to equity compounders in Africa. BCCM also co
Slide 19: News: AAM 24-1, LLC
AAM 24-1, LLC ■ On February 22, 2024, a newly created Air T wholly-owned subsidiary AAM 24-1, LLC, issued a note with a principal amount of $15.0M and an annual interest rate of 8.5%, collateralized by our equity investments into the Aircraft JVs. NEWS 19
Slide 20: Over the last ten years, revenue has increased 232% and is more diversified
FINANCIAL HIGHLIGHTS Over the last ten years, revenue has increased 232% and is more diversified. $278M* REVENUE 45% SEGMENTS +232% Commercial Aircraft & Engines Overnight Air Cargo Ground Support Equipment 42% $84M 62% 13% 38% FY14 FY24 *Excludes revenue in FY24 earned outside of our core segments.
Slide 21: 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) 3/31/24 3/31/23 3/31/22 3/31/21 3/31/20 Lendway, Inc. (LDWY) Stock – 0.5M Shares1,2 $2.2 $3.8 $4.6 $4.3 $2.6 CCI Investment (20.1% as of 3/31/24)3 $3.7 $3.1 $2.6 $3
Slide 22: 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 interest rate swaps to provide a fixed rate of 5.09% a
Slide 23: 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 24: Since 12/31/2013, AIRT share price has increased 11.7% per annum
FINANCIAL HIGHLIGHTS Since 12/31/2013, the share price of AIRT has increased by 11.7% per annum*+. $22.85 + Compares to 11.6% return of the S&P 500 over the same period *Reporting period 9/30/13 to 6/14/24, includes $4M Trust 24 *Preferred dividend to common shareholders
Slide 25: Average Yearly AIRT Stock Price Performance
FINANCIAL HIGHLIGHT: Average Yearly AIRT Stock Price Performance Starting Date Tek | 1231/11 [12/31/12 | 12731713 | 12/31/14 | 12/31/15 | 12/31/16 | 12/31/17 | 12/31/18 | 12/31/19 | 12/31/20 | 12/31/21 | 12/31/22 | 12/31/23 12/31/12 |__ 2.7% 12/31/13 [eae 12/31/14 aTege 12/31/15 (B2iaee 12/31/16 [ea
Slide 26: Growth Strategies
GROWTH STRATEGIES ETGATNTE A POR|FOLIO OF POWERFUL COMPANIES
Slide 27: 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 28: 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. 28
Slide 29: 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. 29
Slide 30: 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. 30
Slide 31: 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. 31
Slide 32: 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 33: Adjusted EBITDA Reconciliation
FY Results Adjusted EBITDA Reconciliation (For the Twelve-Month Period Ended 3/31) FY24 FY23 FY22 FY21 FY20 Operating Income (GAAP) $1.3M ($4.4M) $8.8M* ($9.2M) 7.3M Depreciation (excluding $2.8M $2.5M $1.6M $1.2M $1.3M leased engine depreciation) Asset Impairment, write- $1.2M $7.8M $0.8M $6.6M $0.
Slide 34: Q&A with Management
Q&A WITH MANAGEMENT 34
Slide 35: Shareholder Q&A: Interest Coverage
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 As EBIT has been volatile, it’s been difficult to discern what to
Slide 36: Shareholder Q&A: Dividend and Jet Engines Partners
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 What is the status of the AIRTP May dividend payment?2 The AIRTP
Slide 37: Shareholder Q&A: Cash Generating Businesses
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 Most conglomerates have a business they rely on as their steady c
Slide 38: Appendix: Risk Factors
APPENDIX Risk Factors ETEGANTA A PORGHFOLIO OF POWERFUL COMPANIES
Slide 39: 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 40: 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 41: 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 42: Summary Risk Factors: Structure and Financing (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 Structure and Financing/Liquidity Risks (continued) ● Future acquisitions and dispositions of businesses and invest