Fortress Transportation and Infrastructure Investors LLC : Q1 2021 Investor Presentation

Fortress Transportation and Infrastructure Investors LLC

Q1 2021 Investor Presentation

Disclaimers

IN GENERAL. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the "Presentation."

FORWARD-LOOKINGSTATEMENTS. Certain statements in this Presentation may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, of Fortress Transportation and Infrastructure Investors LLC (referred to in this Presentation as "FTAI," the "Company," or "we"), including without limitation, ability to achieve key investment objectives, expansion and growth opportunities, pipeline activity and investment of existing cash, ability to successfully close deals for which we have letters of intent or "LOIs", actual results as compared to annualized data, expectations regarding additional Funds Available for Distribution ("FAD") and/or EBITDA from investments, growth of and ability to expand Jefferson′ Terminal, Repauno and Long Ridge, whether equipment will be able to be leased, completion of new infrastructure and commencement of new operations within the Infrastructure business, the availability of aviation modules, the module savings range and downtime estimates, module benefits, bank borrowings and future debt and leverage capacity, financing activities and other such matters. These statements are based on management's current expectations, estimates and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond our control. FTAI can give no assurance that its expectations will be attained. Accordingly, you should not place undue reliance on any forward-looking statements made in this Presentation. For a discussion of some of the risks and important factors that could affect such forward-looking statements including, but not limited to the ongoing COVID-19 pandemic, see the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's most recent annual report on Form 10-K and quarterly report on Form 10-Q (when available) and other filings with the U.S. Securities and Exchange Commission, which are included on the Company's website (www.ftandi.com). In addition, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this Presentation. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward- looking statements contained herein to reflect any change in the Company's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

PAST PERFORMANCE. Past performance is not a reliable indicator of future results and should not be relied upon for any reason. Annualized data is presented for illustrative purposes only and should not be considered indicative of future performance or actual results for any period.

NO OFFER; NO RELIANCE. This Presentation is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security and may not be relied upon in connection with the purchase or sale of any security. Any such offer would only be made by means of formal documents, the terms of which would govern in all respects. You should not rely on this Presentation as the basis upon which to make any investment decision.

NON-GAAPFINANCIAL INFORMATION. This Presentation includes information based on financial measures that are not recognized under generally accepted accounting principles (GAAP), such as Adjusted EBITDA and FAD. You should use Non‐GAAP information in addition to, and not as an alternative to, financial information prepared in accordance with GAAP. See Reconciliation and Glossary in the Appendix to this Presentation for reconciliations to the most comparable GAAP measures and an explanation of each of our Non-GAAP measures. Our Non-GAAP measures may not be identical or comparable to measures with the same name presented by other companies. Reconciliations of forward-lookingNon-GAAP financial measures to their most directly comparable GAAP financial measures are not included in this Presentation because the most directly comparable GAAP financial measures are not available on a forward- looking basis without unreasonable effort.

1

FTAI Overview

• Owns and acquires high quality transportation equipment and infrastructure assets
• Diversified portfolio across the aviation, energy, port and rail sectors
• Combine income & growth through a mix of equipment & infrastructure

Two Primary Business Units

Book Equity Contribution(3)

Income

Growth

Equipment

Leasing(1)

$1.8 billion book equity

Infra-

structure(4)

$1.0 billion book equity

Industry-leading aviation leasing platform

• Own and lease 279 aircraft and engines
  o Q1 2021 annualized Adj. EBITDA of ~$239.7mm(2)
• Significant contracted cash flows
• Differentiated Aviation leasing product

Substantial asset value across geographies and asset types with significant scarcity value

• Jefferson Terminal
• Repauno Port & Rail Terminal
• Long Ridge Energy Terminal

Infrastructure

36.1%

Equipment

Leasing

63.9%

Equipment Leasing	Infrastructure
$1.8 billion	$1.0 billion

1. Equipment Leasing business consists of Aviation Leasing, and Offshore Energy and Shipping Containers (which are included in Corporate and other). Book equity is calculated as total equity less non-controlling equity interest in equity of consolidated subsidiaries as of March 31, 2021.
2. Excludes gain on sale of assets; Annualized Adjusted EBITDA is a non-GAAP measure. Please see "Disclaimers" at the beginning of the Presentation. Please refer to appendix slide "Aviation Annualized Adj. EBITDA and Net Income Reconciliation" included in the Company's Q1 2021 Earnings Supplement, posted on the Company's website for more detail.
3. Excludes non-controlling equity interest and Corporate.
4. Infrastructure business consists of Jefferson Terminal, Ports & Terminals, rail car cleaning assets and investment in FYX (which are included in Corporate and Other). Book equity is calculated as total equity less non-controlling equity interest in equity of consolidated subsidiaries as of March 31, 2021.

2

Aviation: A Differentiated Model - Engines the Key!(1)

Engines and Aircraft for Dividend Coverage

		 Engine leasing core competency
		 Annualized Adjusted EBITDA Return on Equity(2)
		of 15.6%
		 No debt on portfolio
	Aviation Leasing	 Team, capital structure, focus = sustainable
	advantage - becoming a brand
 80 passenger aircraft
 199 commercial jet engines
 Shareholders' equity of $1.59 billion
1) As of March 31, 2021.
2) Adjusted EBITDA is a non-GAAP measure. Annualized Adjusted EBITDA is Annualized Adjusted EBITDA Return on Equity excluding gain on sale of assets, for Q4
	2020. Annualized data is presented for illustrative purposes only, and should not be considered indicative of future performance or actual results for any period. Please refer to
	the Aviation Leasing Historical Returns and Reconciliation of Non‐GAAP Measures sections, included in the Appendix of the Company's Q1 2021 Earnings Supplement posted on
	the Company's website, for a reconciliation to the most comparable GAAP measure.	3

CFM56-5B/7B Engine Market Overview and Opportunity

• Largest engine market ever with ~22,000 engines(1)

• 1. In 10 years over 90% of current engines will exit their initial PBH contracts o Cost of CFM56-5B/7B engine shop visits expected to double in 10 years
• FTAI has the potential to generate meaningful EBITDA contribution per shop visit(2)

5B/7B Engine Market(1)

Average After Market Shop Visit Cost(1)

25,000						Aftermarket		PBH
22,418	22,408	22,353	22,038	21,111

20,000	19,631

$ in thousands

2018

2020

2022

2024

2026

2028

15,000

10,000

5,000

-

PBH

After

Market

After

Market

Overhauls(4)

								LLPs(3)	$1,814	$2,065	$2,350	$2,676	$3,047	$3,469
								Airfoils	$2,646	$3,001	$3,404	$3,861	$4,379	$4,967
2018	2020	2022	2024	2026	2028	Labor	$445	$467	$490	$514	$539	$565
11,209	10,355	8,528	6,275	3,675	969
11,209	12,053	13,825	15,763	17,436	18,662	Total	$4,905	$5,533	$6,244	$7,051	$7,965	$9,001
2,242	2,411	2,765	3,153	3,487	3,732
	1)	Per 2017 MBA aviation report.
	2)	Based on management's estimates. Actuals may vary.
	3)	Life Limited Parts.
	4)	Estimated annual after market overhauls; assumes 5 year mean time between removal ("MTBR") of after market engines.					4