FTAI Aviation (FTAI) investor relations material

Business model evolution and strategy

• Transitioned from aircraft and engine leasing to a vertically integrated aftermarket engine maintenance provider, focusing on CFM56 and V2500 engines.

• Achieved significant market share growth, from 0% four years ago to 9% currently, with a target of 25% in the next three to five years.

• Vertically integrated by acquiring MRO facilities in Miami, Montreal, and Rome, enabling control over the entire maintenance chain and capacity for up to 1,800 modules per year.

• Adopted a unique approach by servicing only owned engines, not third-party engines, mirroring practices of major airlines.

• Focused on continuous expansion, including potential for a fourth facility and increased production rates.

Strategic Capital Initiative (SEI) and asset-light transition

• Launched SEI to move towards an asset-light model, leveraging private capital to acquire aircraft and engines off balance sheet.

• SEI allows management of partnerships, investment decisions, and ensures all engine maintenance events are committed to in-house MRO, generating management fees and incentive compensation.

• Deployed over $2 billion of a $4 billion fund in six months, with ambitions to repeat and scale SEI annually.

• Envisions managing up to $20 billion in assets, targeting both lessor and airline markets for sale-leasebacks and exchanges.

• Asset-light model aims to make the parent company primarily a factory for engine rebuilding and sales.

PMA parts and cost efficiency

• Partnership with Chromalloy targets high-cost hot section parts for CFM56, achieving up to 75% discount to OEM prices and over $2 million in savings per shop visit.

• Awaiting imminent FAA approval for a key PMA part, expected to drive significant industry adoption and cost savings.

• PMA adoption is facilitated by in-house MRO and SEI, with proven performance and growing acceptance among operators.

• Chromalloy has invested heavily in production capacity, consolidating operations in Tampa to support new PMA parts.