Air T (AIRT) investor relations material

Strategic approach and organizational structure

• Focuses on long-term value creation in aviation through selective acquisitions and business launches, averaging one to two acquisitions per year.

• Operates a decentralized model, empowering business unit leaders and emphasizing local decision-making.

• Senior management and board members hold significant equity, aligning interests with shareholders; 22% of stock has been repurchased.

• Capital allocation is central, with resources deployed to both internal growth and acquisitions, supported by cash-generative business units.

• Communication with shareholders is improving, with regular updates and Q&A opportunities.

Business portfolio and operations

• Portfolio includes feeder airlines for FedEx, MRO services, de-icing equipment manufacturing, aircraft parts trading, and digital solutions.

• Asset management platform leverages acquisitions in aircraft and parts management, enabling joint ventures and outside capital participation.

• Recent acquisitions include WorldACD, a leading cargo data provider, and expansion into software with Ambry Hill Technologies.

• Joint ventures in aircraft leasing are funded with non-recourse capital, targeting mid to end-of-life aircraft and generating fee income.

• Business units are encouraged to collaborate but must operate as credible, independent market participants.

Financial structure and performance

• Debt is primarily ring-fenced at the business unit level, with $35 million in perpetual trust-preferred securities at the holding company.

• Contrail, a key engine parts business, has transitioned from high debt during COVID to a cash position.

• Aircraft joint ventures are financed with outside capital, including a pension fund with an 8.5% return requirement.

• Consolidated financials show consistent top-line growth and transparent reporting of corporate overhead and adjusted EBITDA.

• Equity method investments include stakes in Lendway (hydroponic tulip grower) and CCI (ductile iron foundry), both expected to provide dividends.