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NASDAQ: ASLE Investor Presentation AERSALE CORPORATION
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Important notices and disclaimers Industry and Market Data In this presentation, we rely on and refer to information and statistics regarding market participants in the sectors in which AerSale competes and other industry data. We obtained this information and statistics from third-party sources, including reports by market research firms, and company filings This presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. AerSale’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward- looking statements include, without limitation, AerSale’s expectations with respect to future performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside AerSale’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the impact of the COVID- 19 pandemic on the aviation industry and the aviation aftermarket industry generally, and on AerSale’s business in particular; (2) the outcome of any legal proceedings that may be instituted against AerSale; (3) changes in applicable laws or regulations; (4) the impact of geopolitical events related to the Russian invasion on Ukraine on AerSale’s business; (5) the possibility that AerSale may be adversely affected by other economic, business, and/or competitive factors; and (6) other risks and uncertainties indicated from time to time in under “Risk Factors” in AerSale’s filings with the SEC. AerSale cautions that the foregoing list of factors is not exclusive. AerSale further cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. AerSale does not undertake to release publicly any updates or revisions to any forward- looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based unless required to do so under applicable law Non-GAAP Financial Measures In this presentation, we rely on and refer to information and statistics regarding market participants in the sectors in which AerSale competes and other. This presentation includes non- GAAP financial measures, including Adjusted EBITDA. AerSale defines Adjusted EBITDA as net income (loss) after giving effect to interest expense, depreciation and amortization, income tax expense (benefit), management fees, the airline settlement and one-time adjustments and non- recurring items. See the Non-GAAP financial reconciliation in the Appendix to this presentation for more information. These non-GAAP financial measures complement the AerSale’s consolidated financial statements presented in accordance with GAAP. However, these non-GAAP financial measures are not intended to supersede or replace the AerSale’s GAAP results. These AerSale believes that Adjusted EBITDA provides useful information to management and investors regarding certain financial and business trends relating to AerSale’s financial condition and results of operations. AerSale’s management uses Adjusted EBITDA to compare AerSale’s performance to that of prior periods for trend analyses and for budgeting and planning purposes. You should review AerSale’s audited annual financial statements and unaudited interim financials included in AerSale’s filings with the SEC and not rely on any single financial measure to evaluate AerSale’s business. Other companies may calculate Adjusted EBITDA differently, and therefore AerSale’s Adjusted EBITDA may not be directly comparable to similarly titled measures of other companies. industry data. We obtained this information and statistics from third-party sources, including reports by market research firms, and company filings 2
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3 Investment Case Summary • Diverse p latforms to drive near -term growth - Three MRO expansion projects coming online by 2025 • Asset Management Business that provides unique value extraction model - Whole Asset Sales, Specialty Leasing and Parts (USM) • Engineered Solutions provide long -term growth opportunity • Margin improvement driven by MRO expansions coming online and leverage on higher sales Demonstrated 10 -year revenue CAGR of 7.0%
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AerSale at a Glance 4 C o m p a n y M i s s i o n- AerSale operates a purpose -built model that provides end -to -end support for commercial aerospace companies Through its dedicated Asset Management business, the Company acquires used aircraft and deploys the assets through its whole asset, lease and parts channels In its Tech Ops business, the Company operates six MRO facilities and develops innovative and proprietary aftermarket products TechOps Revenue: $ 129.6M Gross Margin: 16.6 % Airframe and Component MRO Services Engineered Solutions Revenue: $2 1 5. 5M Gross Margin: 38.3% Used Serviceable Material ( USM ) & Flight Equi pment Sales Engine & A ircraf t Management A s s e tM a n a g e m e n t * As of December 31, 2024 per Company TTM Financials* • Revenue - $345.1M • Gross Margin – 30.1% • Adj EBITDA - $34.5M • Employees – 726* • Year Founded 2008 * *As of Dec 31, 2024 per Company
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Repurpose Cargo Conversion Tanker Conversion Interior Configuration Recycle Aircraft Disassembly Engine Disassembly Reassemble Aircraft Engines Redesign Engineered Solutions • STC • DER • PMA Repair (Components) Composites Accessories Landing Gear Aircraft & Engines USM Roswell MRO Goodyear MRO Millington MRO Accessories Aero- Structures Landing Gear Engineered Solutions e Receive Aircraft Storage Aircraft Preservation Aircraft Acquisition Restore Aircraft Heavy Maintenance Aircraft Reconfiguration Paint Redeploy Aircraft Sale/Lease Engine Sale/Lease Used Serviceable Materials Full Life Cycle Management
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Holistic integrated business support provides enhanced customer experience 72% of revenue from top 100 Customers Generated Multi - Business Unit Sales (December 31, 2024) 6
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Focus on a l l s t ag es o f aircraft & engines Asset Management f o cu se s pr ima ri ly on m i d- lif e Fli gh t E qui pm e nt p l a t f o r ms B737NG Early model A320 A330CEO MD-90 CRJ 100/200 MD -11 Trent B757 CF6 - 80C2 V2500-A1 CFM56 -3/-5A B737-300/ 400/500 A340 A330NEO PW4000 A320CEO CFM56 -5B/-5C/-7B V2500-A5/-D5 CF6 -80E B777 Late model B767 New Technology (34% of Installed Base) Mid-Technology (39% of Installed Base) Old Technology (27% of Installed Base) RB211 - 524/-535E4 737MAX A350 A320NEO GE LEAP PW GTF 787 CF6 - 80A B747 GE90 New technology aircraft eventually displace increasingly maintenance intensive, mid-technology aircraft as 1st tier operators upgrade their fleet Aircraft are subsequently distributed across a more populous audience of 2nd tier operators providing a trading opportunity Maturity Cycle 10-25 Years 25+ Years<10 Years Low Demand Sunset Platforms Aircraft/ Engine Life Cycle Early B767 Well Positioned To Benefit From Increasing Levels of Passenger Traffic Source: Cirium 7 A220 TechOps f o cu se s on n e w t e c h n o l o g y p l a t f o r msw h i c h a r e t h e l a r g e s t a n d f a st e st g r o w i ng g r ou p f o r u pc om i ng ma i n t e n a n c e c y c l e s This life cycle provides AerSale the opportunity to participate in MRO, Leasing & Trading, Storage and ultimately dismantle
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• Elevated passenger level providing stable demand for mid -life aircraft, engine, and USM parts to support airline operations • Integrated ‘in -house’ component MRO capabilities provide unparalleled technical support • Parts exchange and loan programs / Consignment / Repair management services • 24 hour AOG desk located in major air freight hub • Mid-life flight equipment focus in combination with short -term engine leasing emphasis generate high ROI lease premiums and risk adjusted returns • Specializing in the sale and lease of large ‘mid -life’ commercial transport category aircraft and engines • Featuring innovative and flexible lease solutions tailored to the individual needs our clients • Upstream and downstream market participation enable strategic advantage for early identification of market shifts to optimize investments at the aircraft, engine and component levels Asset Management Used Serviceable Material (USM) Leasing & Trading of Aircraft & Engines Used Serviceable Material (USM) 8 Leasing & Trading Regional Sales Off ices • Cardiff, U K • Dublin, IE • Singapore Global Parts Distribution Center • Memphis, TN, USA Global Sales Of fice • Miami, FL, USA Miami, FL Memphis TN Dublin, Ireland Wales, UK Singapore
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Performance summary of AerSale historical feedstock purchases • Proprietary database, deep technical knowledge, and market intelligence provide comprehensive assessment and prioritization from procurement to monetization • Systemic inspection and valuation data are further verified and refined to produce predictive modeling inputs through our proprietary valuation process 9 Since Inception AerSale has invested > $1.5 Billion in feedstock Life to Date IRR: 24.8% SIGNIFICANT FEEDSTOCK ACQUISITIONS (>$7M) Source: AerSale management as of Dec, 2023
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MRO Facilities AerSale Aerostructures, AerSale Landing Gear Solutions, and AerSale Component Solutions routinely work exchanges through AerSale Asset Manag ement to expedite aircraft, engine and component deployment as needed to e ff ec tiv e l y ma na ge c us tom er n e ed s AerSale Landing Gear Solutions significantly lowers return to service MRO expenses associated with maintenance support of portfolio aircraft for sales and lease AerSale Component Solutions leverages in -house component MRO capabilities to enhance sister business unit profitability and brand loyalty through enhanced customer experience Storage and disassembly operations at Goodyear & Roswell enable l o w- cost acquisition of aircraft, engines, and components to support Sales, Leasing and MRO activities and provide our customers comprehensive Heavy Maintenance services Decommissioning MRO and aircraft storage provide countercyclical offset in down markets 10 Structural Component MRO Repair and m odification of composite structures Landing Gear MRO Overhaul of landing gear Accessories MRO Repair and overhaul of hydraulic, pneumatic and mechanical components Airframe MRO Heavy Maintenance , Disassembly and Storage of aircraft
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Capabilities: Airframe Heavy Checks Structural Modification Interior Reconfiguration Passenger-to-Freighter Conversion Firefighter Tanker Modification Ready spares inventory support Paint Complete Airframe MRO Services Overview • 4 hangars and 12 bays encompassing over 500,000 sq. ft. of flight equipment workspace • Featuring arid desert storage capacity for preservation of up to 600 aircraft • Over 320 highly skilled engineers, project managers and aircraft technicians and mechanics • Distinguished ‘Unlimited’ Class IV FAA repair station authorization at Goodyear Extensive in-house engineering capabilities Structures Electro-mechanical components Aircraft systems- Supplemental Type Certificate ‘STC’ innovations Airframe heavy maintenance and modification centers • Goodyear, AZ • Roswell, NM • Millington, TN 11 Goodyear, AZ Roswell, NM Millington, TN
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Component MRO Services Component MRO Centers Accessories, Miami, FL • Component MRO services spanning Hydraulics, Pneumatics, Electronics, CSDs/IDGs, Wheels and Brakes, Power Generation, Fuel Components and Landing Gear components • Dedicated to the continual introduction of life-extending component repairs that increase reliability while lowering the cost of component maintenance Landing Gear, Rio Rancho, NM • Premier provider of overhaul, modification, and repair services covering transport category aircraft landing gear and their components • In-house repair development and engineering with extensive on- site repair capabilities Structural & Landing Gear MROs • Miami, FL (Component Solutions) • Rio Rancho, NM (Landing Gear) Rio Rancho, NM Miami, FL Now servicing: Boeing: B737, B757, B767 Airbus: A319, A320, A321 12 Accessories MRO • Miami, FL Structures Component • Maintenance, repair, and overhaul of structural components for both commercial and military aircraft • Featuring high quality aircraft composite and sheet metal repairs, for enhanced component reliability and service life Embraer: E170, E175 A330 – Coming Soon Specializing in: Nacelles Fan/Thrust Reversers Flight Control surfaces Cargo and Entry Doors Fairings, Shrouds, Panels, and Scoops Radomes
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NEW MRO TO ADD UP TO $50M IN REVENUE 13 Pneumatics Capabilities This investment will provide access to the pneumatic component MRO market for the bulk of the world’s fleets and accelerate growth in new generation pneumatic systems, in turn increasing current and future revenue and growth. Untapped Fleets and Engine Types • E170,175,190 (CF34-8/10) • CJR200, 700, 900 (CF34-8/10) • B777 (GE-90, GE9X, Trent 800) • B787 (GEnx, Trent 1000) • A350 (Trent XWB) • A320 family (CFM56-5, V2500) • B737 family (CFM56-7B) Airframe Heavy MRO – Millington, TN • Located at Millington-Memphis Airport • 112,000 sq.ft complex • Two narrow-body bays Will serve as a hub for AerSale's operations in the region, supporting our mission to provide cost-effective aftermarket solutions to airlines, leasing companies MRO providers worldwide • On-site storage and disassembly with back-shop capabilities and over 3 acres of ramp space • Aircraft MRO support, including C- checks, bridging checks, modifications, transitions, and inspections • Structural component MRO services, including paint booth and oven Capabilities Structures Expansion Expanding our footprint from <30,000 sq ft to 90,000 sq ft
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Engineered Solutions Purpose Developed as a means for fuel tank ignition mitigation to mee t FAA mandated Fuel Tank Flammability Reduction (FTFR) An approved solution for the Fuel Quantity Indication System (FQIS) mandate requirements due in 2026 Ce rti ficati ons : FAA , E ASA , an d A NA C cert ifie d fo r B7 3 7 NG, B7 7 7, a nd A3 2 0 fam i ly of a irc raft FAA a nd EA SA ce rti fie d for B7 57 -2 0 0/-300 Purpose Developed an advanced means to mee t FAA mandated Automatic Dependent Surveillance Broadcast Out requirements Ce rti ficati ons : FAA and EASA approved for B73 7CL, B7 37NG, B757 , B7 77 ANAC approved for B75 7 TCCA and FATA approved for B73 7CL and B737 NG Purpose Enables pilots to continue to operate aircraft during ot her wise prohibited visibility conditions Ce rti ficati ons : FAA certified for B7 37 NG. EA SA ce rtifica tion in progres s A32 0 certification is i n progress 14
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15 AerAware is a cutting-edge Enhanced Flight Vision System (EFVS) designed to provide pilots with superior visibility and situational awareness, in low-visibility conditions. Recently approved by the FAA for the Boeing B737NG, it integrates advanced imaging technology with real-time aircraft data to enhance flight safety and efficiency. Enhanced Flight Vision System Components: AerAware EFVS utilizes the Skylens Head Wearable Display (HWD) that projects three different layers of images onto a transparent visor to produce the Combined Vision System (CVS) • Layer 1: Traditional VHUD Primary Flight Display Symbology • Layer 2: Synthetic Vision - Graphical terrain images from onboard database • Layer 3: Enhanced Vision - Multi sensor camera system mounted on the radome of aircraft Natural Vision AerA ware Vision STC #: ST04576AT Benefits: • Enhanced Safety: enhances flight crew situational awareness, which results in improved energy management during critical phases of flight. • Cost Savings: minimizes the potential of delays or diversions • Efficiency: provides dispatch and landing approach priority, as well as low visibility landing capability
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16 Natural Vision AerAware Vision
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Outsized Demand for Aftermarket MRO Services and Spares Support 17 Older active fleet Decrease in parked fleet Supply chain constrains Growth Opportunity for MRO & Asset Mgmt Maintenance intensive aircraft increase demand for aftermarket support (aircraft, engine and USM) ➢ Older Aircraft Fleet support future retirements ➢ Aircraft storage levels continues to decline as demand for lift exceeds OEM manufacturing production ➢ Demand for midlife aircraft, engines and USM to remain strong over forecast period as OEMs struggle to ramp up new aircraft deliveries ➢ Operators have exhausted available “Green time” spares which is escalating demand for airframe, engine and component MRO ➢ Aircraft that has been stored for over 1 year are expected to retire which represents 49% of the stored fleet providing future feedstock opportunities ➢ MRO Industry CAGR estimated as 1.8% in the next ten years 49.81 62.61 20.51 21.67 19.69 22.3413.89 17.49 0 20 40 60 80 100 120 140 2024 2034 Engine Airframe Component Line 2.3% 0.6% 2.3% 1.3% CAGR Up to 3 months, 613, 14% 4 to 6 months, 692, 16% 7 to 9 months, 429, 10% 10 to 12 months, 474, 11%13 to 18 months, 404, 9% 19 to 24 months, 325, 7% 2 to 3 years, 857, 19% 4+ years, 614, 14% Stored Aircraft By Duration in Storage ➢ Average Age of Active Global Fleet vs RPK 17 Source: Oliver Wyman Source: Naveo Consultancy Source: Cirium 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 10.5 10.7 10.9 11.1 11.3 11.5 11.7 11.9 12.1 12.3 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Stored Aircraft Age Active Global Fleet RPK
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0 2000 4000 6000 8000 10000 12000 0 500 1000 1500 2000 2500 3000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025(F) Aircraft Retirement Aircraft Deliveries Global RPK - (billions) Stored Aircraft Supply shortage for Aftermarket MRO Services and Spares Support The AerSale Competitive Advantage Multi-dimensional monetization ability Combined leadership experience of +150 years Strong Balance Sheet AerSale integrated business model maximizes return on investment Global Air Traffic demand (measured in revenue passenger kilometers or RPK) forecast to outstrip new aircraft deliveries over the next few years Feedstock from annual retirements forecast to remain greater than 2x years 2021/2022 and 1.5x from 2019 Aircraft stakeholders be more willing to sell aging aircraft once confidence increases in delivery schedules for new aircraft replacements Source: IBA, Naveo Consultancy, Bloomberg, 2023 Commercial Aviation Fleet &MRO Forecast, Federal Reserve Economic Data. Airline Industry Growth vs Retirement & Storage Trends COVID-19 18
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Opportunity to monetize across cycles 19 AerSale Revenue (US$ in millions) -300 -200 -100 0 100 200 300 400 500 Asset Management Revenue Tech Ops Revenue Feedstock Covid Impact Deferred Retirements 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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Asset Management Solutions Segment Revenue $215.5 M Tech Ops Segment Revenue $129.6 M Consolidated Net Income $5.9 M Consolidated Gross Profit $103.9 M Consolidated adj. EBITDA(a) $33.4 M Twelve Months Ended 12/31/24 YoY Growth Margin Commentary 0.1% 8.6% 12.5% 172.3% 205.2% 38.3% 16.6% 30.1% 9.7% 1.7% ▪ Revenue increased by $0.3M or 0.1%, compared to the prior year period ▪ Positive growth in the Engine segment of $39.4M was offset by a $39.1M decline in the Aircraft segment ▪ Revenue increased by $10.3M, or 8.6%, compared to the prior year period ▪ The increase was primarily driven by higher MRO product sales and higher service revenue from component repair activities ▪ AMS Gross Profit of $82.4M or 38.3% margin ▪ TechOps Gross Profit of $21.5M or 16.6% margin ▪ Adj EBITDA increased by $21.2M or 172.3% versus the previous year mainly due to improved Asset Management margins and lower overall expenses. ▪ Increased $11.4M, or 205.2%, compared to prior year due to lower overall expenses and improvements in the Engine segment and USM sales Balance Sheet Statistics: $4.7M Cash (as of 12.31.24) ▪ Healthy Balance Sheet ▪ $138.1M available of $180M ABL revolver Source: Company filings and Management. (a) Adjusted EBITDA is a non-GAAP metric. Please see the Appendix hereto for reconciliation of adjusted EBITDA to its nearest comparable GAAP metric. Financial Update – Twelve months ended 12/31/2024 20
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21 Near Term Financial Drivers • Continued support from strong commercial backdrop for Asset Management and MRO • MRO expansion projects expected to be additive in 2025 and beyond - Up to $50M in revenue annually at capacity - Expanding capabilities to newer technology platforms • Multi -pronged monetization strategy for remaining B757 Passenger to Freighter (P2F) aircraft - Marketing of the newest and youngest vintage B757s in the market. - Monetization through Whole Aircraft or Engine leasing or sales • Progress toward AerAware launch order
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22 Capital Allocation U s e s o f C a p i t a l AerSale deploys capital to maximize our return on investment on: • Organic MRO growth investments that provide greater return than M&A and improve existing MRO margins • Disciplined Feedstock acquisitions targeting a 25% ROI and leveraging our multi -dimensional value extraction model $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 $- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Historical Feedstock Investments Feedstock Revenue
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23 Investment Case Summary • Diverse p latforms to drive near -term growth - Three MRO expansion projects coming online by 2025 • Asset Management Business that provides unique value extraction model - Whole Asset Sales, Specialty Leasing and Parts (USM) • Engineered Solutions provide long -term growth opportunity • Margin improvement driven by MRO expansions coming online and leverage on higher sales Demonstrated 10 -year revenue CAGR of 7.0%