Sky Harbour Group Corporation · NYSE:SKYH
Sky Harbour — SPAC Merger (August 2021)
26 slides from Sky Harbour's SPAC merger presentation, August 2021
Slide 1: Business Combination with Yellowstone Acquisition Company
AV I AT I O N INFRASTRUCTURE R E A L E S TAT E Business Combination with Yellowstone Acquisition Company (NASDAQ: YSAC, YSACU and YSACW) ©2021 Sky Harbour Confidential and Proprietary
Slide 2: Disclaimer: Forward-looking Statements
DISCLAIMER Forward-looking Statements This presentation made by Sky Harbour LLC (the “Company,” “we,” “us,” or “our”) and Yellowstone Acquisition Company (“Yellowstone”) related to the proposed business combination between the Company and Yellowstone (the “Business Combination”) contains statements
Slide 3: Disclaimer: Important Information for Investors and Stockholders
DISCLAIMER Important Information for Investors and Stockholders This presentation may be deemed to be solicitation material in respect of the proposed business combination between the Company and Yellowstone. In connection with the proposed acquisition, Yellowstone intends to file relevant materials
Slide 4: Mission: Build the First Nationwide Network of Home Basing Solutions for Business Aviation
MISSION: BUILD THE FIRST NATIONWIDE NETWORK OF HOME BASING SOLUTIONS FOR BUSINESS AVIATION ©2021 Sky Harbour Confidential and Proprietary Renderings are conceptual and Subject to Change 3
Slide 5: Sky Harbour – Snapshot
SKY HARBOUR – SNAPSHOT Capitalizing on the long-standing supply and demand imbalance in business aviation infrastructure • Secure land at key US airfields Business • Develop campuses of private hangars for business aviation • Lease hangars and manage campuses • 50+ airfields • >400 Bps spread betwee
Slide 6: Transaction Overview
TRANSACTION OVERVIEW Overview • Business combination to raise equity proceeds toward the funding of 20 Sky Harbour airport hangar campus sites Pro Forma Valuation ($MM) • Pre-money equity value of $450MM, pro forma equity value of $777MM, based on Illustrative Share Price $10.00 Sources and Uses set
Slide 7: Investment Highlights
INVESTMENT HIGHLIGHTS 1 Proven market opportunity with recession-resistant demand drivers 2 Disruptive business model supported by clear advantages to customers and partners 3 Business structured to scale quickly in large addressable market 4 Significant barriers to entry 5 Best-in-class management
Slide 8: Home-Basing: A Win-Win for All Stakeholders
HOME-BASING: A WIN-WIN FOR ALL STAKEHOLDERS Sky Harbour Tenants Get Airport Sponsors Get • Privacy and Security • Aircraft Value Preservation • High Sponsor Revenues • Efficiency of Operations • No Hangar Rash • Low Environmental Impact • Shortest Time to Wheels-Up • No Foam Dumps • Low Noise Impact
Slide 9: Executive Team Matched to Mission
EXECUTIVE TEAM MATCHED TO MISSION Tal Keinan Founder, CEO Francisco Gonzalez Alex Saltzman Tim Johnson CFO COO SVP Corp-Dev Millie Becker Peter Rusnak Tim Herr Director of Sales VP Operations VP Development 8 ©2021 Sky Harbour Confidential and Proprietary
Slide 10: Disrupting Business Aviation Infrastructure
DISRUPTING BUSINESS AVIATION INFRASTRUCTURE ©2021 Sky Harbour Confidential and Proprietary Renderings are conceptual and Subject to Change 9
Slide 11: COVID-19 Pandemic Fueling Private Aviation Boom
COVID-19 PANDEMIC FUELING PRIVATE AVIATION BOOM ©2021 Sky Harbour Confidential and Proprietary Renderings are conceptual and Subject to Change 10
Slide 12: Sky Harbour's Total Addressable Market Is Growing
SKY HARBOUR’S TOTAL ADDRESSABLE MARKET IS GROWING Cumulative US Business Jet Fleet US business jet fleet continues to grow 28,000 34% Increase • Aircraft deliveries exceed retirements annually 26,000 • More aircraft deliveries increase demand for airport infrastructure dedicated to parking 24,000 •
Slide 13: Business Aircraft Footprint Growing Faster Than Fleet
BUSINESS AIRCRAFT FOOTPRINT GROWING FASTER THAN FLEET Cumulative US Business Aircraft Fleet Square Footage More aircraft and proportionally more large aircraft 90,000,000 driving accelerated demand for airport real estate 42% Increase • Current generation of ultra-large business jets have a footprin
Slide 14: Business Aircraft Becoming Larger and More Expensive
BUSINESS AIRCRAFT BECOMING LARGER AND MORE EXPENSIVE Owners of high-value aircraft prioritize value-retention, Footprint (ft2) Estimated Value efficiency, security and privacy Falcon 10X ~12,000 • Hangared aircraft experience fewer incidents related to hangar rash, $75,000,000 foam-dumps, condensati
Slide 15: Hangar Supply Constrained
HANGAR SUPPLY CONSTRAINED Airports in largest US cities see highest demand • Economic output and business aircraft ownership and utilization are positively correlated • Airports in major US markets are physically constrained Virtually impossible to build or expand airports in major cities Insufficie
Slide 16: Business Aviation Market Attractive to Investors
BUSINESS AVIATION MARKET ATTRACTIVE TO INVESTORS Sky Harbour benefits from the same macro drivers that have long attracted sophisticated investors Post-COVID Business Aircraft Training 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2021 Aviation Infrastructure Aviation Services Aviation
Slide 17: Framing Sky Harbour's Peer Set
FRAMING SKY HARBOUR’S PEER SET Industrial Real Estate Public Storage Aviation Infrastructure(1) Specialty Real Estate (1) Currently all private companies. Signature Aviation transaction completed June 1, 2021. Atlantic Aviation, part of Macquarie Infrastructure Corp., transaction announced June 7, 2
Slide 18: Sky Harbour – Physical Offering
SKY HARBOUR – PHYSICAL OFFERING Total Privacy. Uncompromising Quality. Full Suite of Features. • Unparalleled Ownership Experience • Generous Technical Features • Tenant-Exclusive Hangar • No-Foam Fire Suppression • Unfettered Airside Access • High-Volume Air Circulation and Humidity Control • No Tr
Slide 19: Sky Harbour – Service Offering
SKY HARBOUR – SERVICE OFFERING Dedicated Services • Aircraft Towing • Aircraft Fueling • Potable Water • Ice • Lavatory Service 24/7 On-Demand Service Dedicated • Baggage Handling Exclusively to Sky Harbour Tenants • DC Ground Power • Cleaning No Competition with Transient Traffic • Smart Hangar app
Slide 20: Business Overview
BUSINESS OVERVIEW ©2021 Sky Harbour Confidential and Proprietary Renderings are conceptual and Subject to Change 19
Slide 21: Building the Sky Harbour Portfolio
BUILDING THE SKY HARBOUR PORTFOLIO Leveraging first-mover advantage in an under-invested aviation segment 5 ▪ Target Development Cost: $200 / ft2 Attractive Unit ▪ Target Average Annual Rent: $28 / ft2 Economics1,2,3 ▪ Target NOI Yield: 12% 4 ▪ Diversified tenant mix and staggered lease durations pr
Slide 22: Advantages to Sky Harbour Tenants
ADVANTAGES TO SKY HARBOUR TENANTS 1 Exclusive Space Members never compromise on positioning and never park outside 2 Hangar Rash Virtually Eliminated Aircraft is only moved when needed and is only handled by the dedicated and certified Sky Harbour line service crew 3 Security Sky Harbour members and
Slide 23: Advantages to Our Airport Partners (Sponsors)
ADVANTAGES TO OUR AIRPORT PARTNERS (SPONSORS) 1 Direct Revenue • Ad Valorem tax receipts • All tenants are based aircraft • Typical tenant is a newer and larger aircraft 2 Low Impact • Minimal to negative contribution to airport noise footprint • Minimal to negative contribution to environmental foo
Slide 24: Initially Targeting 50+ Airfields
INITIALLY TARGETING 50+ AIRFIELDS Initial target airfields represent less than 2% of US NPIAS airfields • 50 sites targeted • First 20 sites financed by merger proceeds and bond issuance • 5 sites currently in development Source: FAA. National Plan of Integrated Airport Systems. 23 ©2021 Sky Harbour
Slide 25: Well-Positioned to Capture Future Business Opportunities
WELL-POSITIONED TO CAPTURE FUTURE BUSINESS OPPORTUNITIES Sky Harbour is the logical partner for emerging Air Emerging Non-Traditional Aviation Infrastructure Users Mobility and Logistics players – manned and unmanned • Emerging UAM and drone logistics aircraft will likely require access to FAA-regul
Slide 26: AV I AT I O N INFRASTRUCTURE R E A L E S TAT
AV I AT I O N INFRASTRUCTURE R E A L E S TAT E ©2021 Sky Harbour Confidential and Proprietary 25