Chorus Aviation Overview February 14 , 2020 D e l i v e r i n g r e g i o n a l a v i a t i o n t o t h e w o r l d TSX: CHR
Caution regarding forward-looking information This presentation contains “forward-looking information” as defined under applicable Canadian securities laws. Forward-looking information is identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and similar terms and phrases, including references to assumptions. Such information may involve but is not limited to comments with respect to strategies, expectations, planned operations or future actions. Forward-looking information relates to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and other uncertain events. Forward-looking information, by its nature, is based on assumptions and is subject to important risks and uncertainties. Any forecasts or forward-looking predictions or statements cannot be relied upon due to, among other things, external events, changing market conditions and general uncertainties of the business. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed in forward-looking information. Factors that could cause results to differ materially from those expressed in this presentation include those identified in Chorus’ public disclosure record available at www.sedar.com and the risk factors identified in Chorus’ Annual Information Form dated February 12, 2020. Statements containing forward-looking information in this presentation represent Chorus' expectations as of the date of this presentation (or as of the date they are otherwise stated to be made) and are subject to change after such date. Chorus disclaims any intention or obligation to update or revise such statements to reflect new information, subsequent events or otherwise, unless required by applicable securities laws. 2 Chorus Aviation Overview
Ch Chorus s is a f s a fas ast-grow owing gl globa obal provid ider r of in integrated regio ional a l avia iatio ion s solu lutions 3 Chorus Aviation Overview
Investment Highlights Regio iona nal a l avia iatio ion n is is a resilie ilient nt s sector r of t the he avia iatio ion n 1 ind indus ustry ry s sho howing ing str trong s g sta tabi bility ty during uring e econo nomic ic downt nturn urn Ch Chorus has a pr predi edicta ctabl ble r e reven enue e str trea eam, 2 wit ith h 90%+ o of annua nnual r l revenue nues s secur ured thr hroug ugh lo h long ng-ter erm c contr tract cts and s d str trong g rela latio ions nship hips Ch Chorus h has str trong gr g growth th pr prospects pects in a in air ircraft le leasing ing a and nd is is 3 di differ eren enti tiated f ed from pu pure e pl play competi petitors w with th an integr egrated ed model del 4 Chorus Aviation Overview
Regional aviation is based on aircraft carrying Up t p to 130 pa 0 passenge gers 2 main types of Fly shorter distances than Account for ~22% of the regional aircraft Narrow Body jets world’s commercial fleet % of all flights below 500 miles 1 Worldwide aircraft fleet 2 Regional Up to 130 Jets passengers 15 15,80 800 83% 83 50% of 50% of wor orld Bombar bardi dier/ passe ssengers s fly CRJ-200 to CRJ-1000 Mitsubi ubishi hi <500 m 500 miles Embr brae aer E135 to E190 Airbus bus A220-300 37% 7% 5,90 ,900 Turbo Up to 90 props passengers 4,500 00 2,300 00 TP TP 17% 7% De Hav Havilland and Dash 8 – 100 to 400 Jet ets 3,60 ,600 ATR TR ATR 42 to ATR 72 Regional Narrow Wide Turbo Regional Narrow Body Body props Jets Body 1 Officia 2 FlightGlobal (2019), includes in-service aircraft with more than 20 seats ial l Aviatio ion Guid ide ( (2012). Regional aircraft are fundamental to efficient air transport networks and link 60% of the world’s communities 1 5 Chorus Aviation Overview
Regional aviation shows strong stability through economic cycles Indexed aircraft value volatility for narrow-body, turboprop and regional jet aircraft 120 Turboprop 115 aircraft 110 105 100 95 90 Narrow-body Regional jet 85 aircraft aircraft 80 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 ● Mainline operators look to contract out more flying to regional partners ● Smaller aircraft are best suited to serve reduced market demand Source: AVITAS Regional aviation is a resilient sector in an economic downturn 6 Chorus Aviation Overview
The Chorus Story: An Integrated Model Leas asing O g Oppo pportuni unities Mai aintenanc nance Dat ata Techni nical al Suppo Support Co Core e MRO O Oppo pportuni unities Wet et L Leas easing Dry ry L Leas easing Seg egmen ments ts Olde der A Assets Cus ustomer L Leads ads - Wet for or Part rt Ou Out Leas asing & g & P Par art Sal Sales Wet t to Dry L y Leas ase End nd of L Life Aircraf aft I Ins nspe pections Oppo pportun unities Asse ssets Ai Airc rcra raft T Tra ransition ons Par art Sal Sales & Compo pone nent nt R Repai pair Technic hnical l Aircraf aft R Repo possessions ns Str trateg egic Enable abler Expe perti tise se Common Customers, Rela latio ionship ips Suppliers and OEMS Chorus Aviation is a global provider of integrated regional aircraft solutions 7 Chorus Aviation Overview
Contents 1 2 Chorus Overview Regional Aviation Services 3 4 Regional Aircraft Conclusion Leasing 5 6 Appendix 1 Appendix 2 Financial Statements Supplemental information 8 Chorus Aviation Overview
Chorus has become a sig signific ifican ant glo lobal p al pla layer in regional aviation 2019 Revenues 1 Consistently profitable $1.37B since 2006 IPO Aircraft owned 2 2019 Adjusted 1 179 $342M EBITDA Employees Trading symbol 5,200 TSX:CHR Aircraft Leased: Monthly 135 $0.04 64 third-party dividend per 71 inside CPA 3,2 share (DRIP) 1 On January 1, 2019, Chorus adopted IFRS 16 using the retrospective transition approach with restatement to comparative periods. 2 Includes 4 future committed leased transactions outside North America, 9 future CRJ900s and 5 future aircraft (type TBD) acquisitions/leased transactions inside the CPA. 3 Includes 5 future ESPs, 9 future CRJ900s and 5 future aircraft (type TBD) that will generate revenue under the CPA. ~$1.25B market capitalization as of January 31, 2020 Note: Market capitalization value based on 160,678,919 shares outstanding and TSX closing stock price of $7.81 as of January 31, 2020. 9 Chorus Aviation Overview
A hi highl hly e experi erienc enced ed and sta tabl ble management team with significant aviation experience Jose seph R h Rand ndell Colin Co Co Copp Jolen ene M e Mahody Pres esiden ent an and COO an and P Pres esiden ent, Exec ecutive e VP an and Chief ef E Exec ecutive e Officer er Chor orus A Aviat ation on S Ser ervices es Chief ef S Strat ateg egy O Officer er 40 ye year ars 30 ye year ars 26 ye year ars Gary ary O Osborn rne Denni nnis L s Lopes Stev eve R e Ridolfi fi Chie ief Fin inancia ial O l Offic icer Sen enior or V VP, C Chief ef Leg Legal al Pres esiden ent, Officer er an and C Cor orp. S Sec ecret etar ary Chor orus A Aviat ation on C Cap apital al 5 ye year ars 37 ye year ars 27 ye year ars 10 Chorus Aviation Overview
Chorus operates 13 13 f fac acilit ilitie ies ac s across s Can anad ada a plus 3 international offices for its leasing business Headquarters (2) ● Admin offices / crew bases (8) ▲ Line maintenance facilities (4) Heavy maintenance facilities (2) Cho horus us ● Ireland ▲ Calgary Aviat ation on Cap apital al ● Internat In ation onal al Vancouver ▲ offic ffices ● North Bay ● ▲ Montreal ● ● ● Toronto ▲ ● Halifax England Singapore Note: Chorus’ presence in Singapore and England consists of business development representatives 11 Chorus Aviation Overview
Our strategic agenda Grow our regional aircraft leasing business through aircraft acquisitions, portfolio acquisitions and potential skyline transactions Grow our regional aviation services of contracted flying (wet leasing and leasing under the CPA) Leverage the synergies and technical expertise across our lines of business to further drive diversification and profit 12 Chorus Aviation Overview
Contents 1 2 Chorus Overview Regional Aviation Services 3 4 Regional Aircraft Conclusion Leasing 5 6 Appendix 1 Appendix 2 Financial Statements Supplemental information 13 Chorus Aviation Overview
Contracted flying/wet leasing generates largest revenue stream Air Canada Operates scheduled service through a CPA with Express flying Air Canada under the Air Canada Express brand Specialized Provides medical, logistical and contracted humanitarian flight operations to blue chip flying customers globally Offers charters throughout North Charter flights America for corporate clients, governments, special interest groups and individuals 14 Chorus Aviation Overview
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