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Présentation Powerpoint Chorus Aviation Overview February 14 , 2020 Delivering regional aviation to the world 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. Chorus Aviation Overview 2 Chorus is a fast-growing global provider of integrated regional aviation solutions Chorus Aviation Overview 3 Investment Highlights Regional aviation is a resilient sector of the aviation industry showing strong stability during economic 1 downturn Chorus has a predictable revenue stream, with 90%+ of annual revenues secured 2 through long-term contracts and strong relationships Chorus has strong growth prospects in aircraft leasing and is differentiated from pure play 3 competitors with an integrated model Chorus Aviation Overview 4 Regional aviation is based on aircraft carrying Up to 130 passengers 2 main types of Fly shorter distances than Account for ~22% of the regional aircraft Narrow Body jets world’s commercial fleet 1 2 Regional Up to 130 % of all flights below 500 miles Worldwide aircraft fleet Jets passengers 83% 15,800 50% of world Bombardier/ CRJ-200 to CRJ-1000 passengers fly Mitsubishi <500 miles Embraer E135 to E190 Airbus A220-300 37% Turbo Up to 90 5,900 props passengers 4,500 17% TP 2,300 De Havilland Dash 8 – 100 to 400 Jets 3,600 ATR ATR 42 to ATR 72 Turbo Regional Narrow Regional Narrow Wide props Jets Body Body Body 1 Official Aviation Guide (2012). 2 FlightGlobal (2019), includes in-service aircraft with more than 20 seats Regional aircraft are fundamental to efficient air transport networks and link 60% of the world’s communities 1 Chorus Aviation Overview 5 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 Chorus Aviation Overview 6 The Chorus Story: An Integrated Model Leasing Opportunities Maintenance Data Technical Support Core MRO Opportunities Segments Wet Leasing Dry Leasing Older Assets Customer Leads - Wet for Part Out Leasing & Part Sales Wet to Dry Lease End of Life Aircraft Inspections Opportunities Assets Part Sales & Aircraft Transitions Component Repair Strategic Technical Aircraft Repossessions Enabler Expertise Common Customers, Relationships Suppliers and OEMS Chorus Aviation is a global provider of integrated regional aircraft solutions Chorus Aviation Overview 7 Contents 1 Chorus Overview 2 Regional Aviation Services 3 Regional Aircraft 4 Conclusion Leasing 5 Appendix 1 6 Appendix 2 Financial Statements Supplemental information Chorus Aviation Overview 8 Chorus has become a significant global player in regional aviation $1.37B 2019 Revenues1 Consistently profitable since 2006 IPO 179 Aircraft owned2 $342M 2019 Adjusted1 EBITDA 5,200 Employees TSX:CHR Trading symbol Aircraft Leased: Monthly 135 64 third-party $0.04 dividend per 71 inside CPA3,2 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. 3Includes 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. Chorus Aviation Overview 9 A highly experienced and stable management team with significant aviation experience Joseph Randell Colin Copp Jolene Mahody President and COO and President, Executive VP and Chief Executive Officer Chorus Aviation Services Chief Strategy Officer 40 years 30 years 26 years Dennis Lopes Steve Ridolfi Gary Osborne Senior VP, Chief Legal President, Chief Financial Officer Officer and Corp. Secretary Chorus Aviation Capital 5 years 37 years 27 years Chorus Aviation Overview 10 Chorus operates 13 facilities across Canada plus 3 international offices for its leasing business Headquarters (2) ● Admin offices / crew bases (8) ▲ Line maintenance facilities (4) Heavy maintenance facilities (2) Chorus ●▲Calgary Aviation Capital Ireland International ●▲Vancouver offices North Bay● Montreal●▲ ● Toronto●▲ Halifax ● ● England Singapore Note: Chorus’ presence in Singapore and England consists of business development representatives Chorus Aviation Overview 11 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 Chorus Aviation Overview 12 Contents 1 Chorus Overview 2 Regional Aviation Services 3 Regional Aircraft 4 Conclusion Leasing 5 Appendix 1 6 Appendix 2 Financial Statements Supplemental information Chorus Aviation Overview 13 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 Charter flights Offers charters throughout North America for corporate clients, governments, special interest groups and individuals Chorus Aviation Overview 14 Chorus is Air Canada’s primary regional partner Aircraft currently ~690 ~80% 116 operated by Jazz daily flights Largest of Air Canada’s Chorus regional seat 52 Currently 90 customer capacity leased under N.A. destinations the CPA Responsibilities Air Canada Jazz under the Capacity ● Purchases capacity ● Conducts marketing ● Supply of flying crews Purchase ● Manages routes ● Assumes ● Airframe maintenance commercial risk Agreement ● Sets flight ● Flight operations schedules Retains revenues for ● ● Some airport operations passenger & cargo ● Sets ticket prices transport ● General administration ● Flexibility to respond quickly and efficiently to market changes Benefits for and opportunities Air Canada ● Jazz manages Air Canada Express operations at 38 airports across Canada ● Source of qualified pilots through Pilot Mobility Program Chorus Aviation Overview 15 Amended/extended CPA with Air Canada to 2035 ● Guarantees ~$2.5B in contracted revenue over 17 years1 ● $1.6B from aircraft leasing ● $0.86B from fixed fees ● $97.26M equity investment by Air Canada in Chorus ● 60% of investment proceeds to purchase larger aircraft for CPA fleet ● 40% of investment proceeds to acquire aircraft for the leasing business ● Modernization of Air Canada Express fleet ● Acquisition of 9 new CRJ-900s will generate lease revenue under CPA ● Acquisition of 5 aircraft (type TBD) in 2025 ● Margin risk on controllable costs reduced to a maximum of $2M/year Provides long-term certainty and stability 1 Over the 17-year term of the CPA (January 2019 to December 2035), the revenue estimates are based on agreed aircraft lease rates in the CPA and certain assumptions and estimates for future market lease rates related to new and extended leases under the CPA. A foreign exchange rate
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