Volatus Aerospace : Q1 2023 Earnings Call

Q1 2023 Earnings Call

May 30, 2023

TSXV : VOL | OTCQB : VLTTF

SAFE HARBOR STATEMENT

This presentation ("Presentation") is for informational purposes only in order to enable you to learn more about Volatus Aerospace Corp. ("Volatus Aerospace").

Certain statements or information contained in this document constitute forward-looking statements. Any statements that express, or involve discussions as to, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, through the words or phrases such as "will likely result, "are expected to", "expects", "anticipate", "believe", "continue", "estimate", "intend", "plan", "potential", "predict", "project", "seek" or other similar words) are not statements of historical fact and may be forward-looking statements. Forward-looking statements involve internal projections, estimates or beliefs of Volatus Aerospace concerning, among other things, future growth, results of operations, future expenditures, plans for and results of investments, business prospects and opportunities. Forward-looking statements contained in this document include the potential benefits and future performance of the combined business of Volatus Aerospace and other businesses acquired, future market size or potential; product development and anticipated market acceptance of products and financial forecasts and assumptions including costs, revenues, margins and profits. These forward- looking statements are subject to numerous risks and uncertainties, many of which are beyond the control of Volatus Aerospace. Readers are cautioned that the foregoing list of factors is not exhaustive.

Although Volatus Aerospace believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies which could cause actual results to differ materially from those expressed or implied in any forward-looking statements made herein. No assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These forward- looking statements are made as of the date this document was created and Volatus Aerospace disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable law.

"Future-oriented financial information" is forward-looking information about prospective results of operations, financial position or cash flows, based on assumptions about future economic conditions and courses of action, and presented in the format of a historical statement of financial position, statement of comprehensive income or statement of cash flows. Similarly, a "financial outlook" is forward-looking information about prospective financial performance, financial position or cash flows that is based on assumptions about future economic conditions and courses of action that is not presented in the format of a historical statement of financial position, statement of comprehensive income or statement of cash flows. Future-oriented financial information and financial outlook made herein or made elsewhere are made solely based on information available to Volatus Aerospace as of the date hereof and are subject to the same assumptions, risk factors and other qualifications as all other forward-looking information and forward looking statements, and are presented solely for the purpose of conveying the current anticipated expectations of Volatus Aerospace and may not be appropriate for any other purposes.

This Presentation refers to certain financial performance measures that are not defined by and do not have a standardized meaning under International Financial Reporting Standards (termed "Non-IFRSmeasures"). EBITDA is one such Non-IFRS measure used. Volatus Aerospace defines EBITDA as earnings before interest tax depreciation and amortisation. Non-IFRS measures are used by management to assess the financial and operational performance of Volatus Aerospace. Volatus Aerospace believes that these Non-IFRS measures, in addition to conventional measures prepared in accordance with International Financial Reporting Standard, enable investors to evaluate Volatus Aerospace's operating results, underlying performance and prospects in a similar manner to Volatus Aerospace's management. As there are no standardized methods of calculating these Non-IFRS measures, Volatus Aerospace's approach may differ from those used by others, and accordingly, the use of these measures may not be directly comparable. Accordingly, these Non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with International Financial Reporting Standards.

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Q1 2023 BUSINESS HIGHLIGHTS

Milestone 1

Acquisition of Empire Drones

Milestone 2

Multiple Recurring Contracts

Milestone 3

CTA License for Drone Cargo

Services

Milestone 4

Expansion in Utility Industry

- Expanded in the US	- Won recurring contract for		- In March 2023, the
Equipment Distribution	fugitive gas detection - UK	- In Feb 2023, Volatus has	Company signed a definitive
segment		been issued CTA (Canadian	agreement to acquire Sky
	- Won 3-year MSA with a	Transportation License) for	Scape Industries, LLC., a New
- Increase gross margin and	major oil and gas company	domestic, all-cargo aircraft	Jersey based company
removes Forex fluctuation	for pipeline surveillance in		providing airborne
risk	Canada. Expected revenue	- The addition of this license	intelligence data services
	of $5M over the next 3 years	allows the Company to build
- Tapping on the Made-in-		its drone cargo capability	- This enables inspection of
America Sentiment	- Total expected recurring		~8,000 transmission towers
	contracts between $12M		for a major utility company
- EV/LTM** Rev of 0.53x and	and $15M in 2023		in the US
EV/E-NTM Rev of 0.23x

* Includes forward looking statement and management estimate | ** EV - Enterprise Value, LTM - Last Twelve Months Revenue, E-NTM - Expected Next Twelve Months Revenue | ~ Approximate

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Q1 2023 FINANCIAL SUMMARY

	For three months	For three months
In C$	ending Mar 31,	ended Mar 31,	NOTES
	2023	2022
Revenue	$7,412,480	$4,807,829	Growth driven by equipment sales. 54% growth compared to Q1 2022 reported
revenue
Total Proforma Revenue1	$7,546,535
			With a gross margin of 32%, Q1 2023 gross margin increased by 900 bps compared to
Gross Profit	$2,366,679	$1,092,840	Q1 2022 Gross Margin. For Q1 2023: Equipment GM at 23% (due to FX) and Services
			GM at 47%
Net and Comprehensive (Loss)	($3,003,365)	($1,774,397)
Adjusted EBITDA2	($1,602,690)	($1,208,569)	Adj EBITDA Loss per $ Revenue (ADJ EBITDA/Revenue) decreased by 14% YoY
whereas Revenue scaled by 54%
Earnings/(Loss) Per Share (diluted)	($0.0228)	($0.0220)	4% increase despite 54% scale in topline and 117% growth in gross profits
Cash Used in Operating Activities	($2,072,209)	($4,215,368)	Optimized working capital
Cash Used in Investing Activities	($777,455)	($1,357,851)	Driven by acquisitions and investments
Cash provided by Financing Activities	$621,274	($187,066)	Proceeds from additional debt

1 - Addition of $134,055 towards businesses acquired in Q1 2023 | 2 - - Refer to GAAP Vs. Non-GAAP EBITDA and Adjusted EBITDA Reconciliation on Appendix A	4

REVENUE SNAPSHOT

Revenue (C$K)

Q1 2023 Vs Q1 2022 Revenue Growth	Product Distribution

7,412

54% growth

	28%	38%
47%	42%

4,808	55%

	72%	62%
53%	58%

45%

Q1 2022	Q1 2023	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023

Equipment Services

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