Volatus Aerospace (FLT) investor relations material

Strategic focus and business model

• Emphasizes aerial intelligence over logistics, with piloted aircraft and helicopters contributing 30% of revenue.

• Operates globally with a diversified customer base; no single customer exceeds 4% of total revenue.

• Three verticals: equipment sales/distribution, training (Volatus Academy), and services, with training as a growing revenue stream.

• Key markets include oil & gas, utilities, public service, mining, construction, and rapidly expanding defense.

• Technology-agnostic approach, focusing on customer retention and recurring revenue.

Operations, technology, and regulatory environment

• Operates a Toronto-based control center capable of managing 200 drones simultaneously, with global reach.

• Holds 14 North American drone-related utility patents and multiple regulatory waivers for advanced drone operations.

• Achieved over 10,000 remotely operated flights and 145,000 cumulative training events.

• Regulatory approvals allow flights above 400 ft, up to 1,000 lbs, and beyond visual line of sight in Canada.

• New Canadian regulations will soon enable heavier drones and expanded operations, benefiting certified operators.

Financial performance and growth

• Q2 revenue exceeded $10 million, up 49% year-over-year, with a 32% gross margin and significant EBITDA improvement.

• Annual revenue for 2024 was $27 million; current run rate is $40 million, with analyst forecasts of $60 million for next year.

• Cash position improved to $20 million by August 30, supporting ongoing growth and acquisitions.

• 50% of revenue growth from acquisitions; 20th acquisition announced recently.

• Recurring revenue from long-term contracts in industrial and commercial sectors; defense pipeline not reported due to volatility.