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TWIN OTTER INVESTMENT OPPORTUNITY

TWIN OTTER INVESTMENT OPPORTUNITY PRESENTATION · Otter Aircraft is Income Producing Assets.-Lease payments are an annuity stream and upon maturity date of the lease, the asset may

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Page 1: TWIN OTTER INVESTMENT OPPORTUNITY PRESENTATION · Otter Aircraft is Income Producing Assets.-Lease payments are an annuity stream and upon maturity date of the lease, the asset may

TWIN OTTER INVESTMENT OPPORTUNITY

Page 2: TWIN OTTER INVESTMENT OPPORTUNITY PRESENTATION · Otter Aircraft is Income Producing Assets.-Lease payments are an annuity stream and upon maturity date of the lease, the asset may

Twin Engine Aircraft Short Take Off and Landing (STOL)

Capabilities High Rate of Climb Suitable for Cargo 19 Passengers Seats Floats, Skis or Tricycle Landing Gear FittingsTherefore, Twin Otter Airplane is in demand

worldwide.

www.Aeroproc.com

Page 3: TWIN OTTER INVESTMENT OPPORTUNITY PRESENTATION · Otter Aircraft is Income Producing Assets.-Lease payments are an annuity stream and upon maturity date of the lease, the asset may

AIRCRAFT OPERATING LEASE CYCLE

- Pre-Owned Twin Otter Aircraft is

Income Producing Assets.

- Lease payments are an annuity

stream and upon maturity date of

the lease, the asset may be re-sold,

re-leased, or Re-life the airframe.

Re-Lease

Re-Sell

Re-Life

www.Aeroproc.com

At the end of 3-5 Years Lease

Page 4: TWIN OTTER INVESTMENT OPPORTUNITY PRESENTATION · Otter Aircraft is Income Producing Assets.-Lease payments are an annuity stream and upon maturity date of the lease, the asset may

Right Investment Aeroproc Goal

Superior operational capability with a large customer base.

Unlimited asset life through on-going life extension programs.

Limited supply ensure asset value remains high.

Large customer base results in high on-going demand.

One of the few aircraft that has appreciated over time and continues to do so.

Virtually no residual value risk at the end of lease term.

Experts in lease management as well as aircraft maintenance.

Works closely with Twin Otter parts manufacture.

10 year, 100 aircraft, $300M portfolio goal

Open to discuss partnership structure with Investor(s)

www.Aeroproc.com

Page 5: TWIN OTTER INVESTMENT OPPORTUNITY PRESENTATION · Otter Aircraft is Income Producing Assets.-Lease payments are an annuity stream and upon maturity date of the lease, the asset may

www.Aeroproc.com

• 12% annual return with relatively little up-front investment size

• Instant return - 30 days after start of lease • Option: 50/50 profit sharing after end of

lease and asset disposition

Profit Sharing after end of lease

50%Investor50%Aeroproc

Page 6: TWIN OTTER INVESTMENT OPPORTUNITY PRESENTATION · Otter Aircraft is Income Producing Assets.-Lease payments are an annuity stream and upon maturity date of the lease, the asset may

www.Aeroproc.com

Investor purchased $2.8 M USD - $3.5 M USD aircraft, AEROPROC will be managing and maintaining investor’s

asset for 3-5 years term by leasing it to customer.---------------------------------------------------- 1) AEROPROC has close group of “A” credit lease customers

and manages the lease over 3-5 years at 1.25% value of the aircraft purchased monthly.

2) AEROPROC pays back to investor 1% value of the aircraft purchased per month over 3 - 5 years .

3) At the end of lease term the aircraft is either sold and the proceed are split 50/50 with Investor and Aeroproc or re-leased for another 3 - 5 years term.

Page 7: TWIN OTTER INVESTMENT OPPORTUNITY PRESENTATION · Otter Aircraft is Income Producing Assets.-Lease payments are an annuity stream and upon maturity date of the lease, the asset may

www.Aeroproc.com

INVESTOR

5 Year Term Loan

$2.8 M

Monthly payment of $28K over 60 month

Leases @ $35k/mofor 5 years

AEROPROC (Lessor)

OPERATOR(Lessee)

Aircraft Return to Lessor at the end of

lease

Page 8: TWIN OTTER INVESTMENT OPPORTUNITY PRESENTATION · Otter Aircraft is Income Producing Assets.-Lease payments are an annuity stream and upon maturity date of the lease, the asset may

www.Aeroproc.com

RISK MITIGATION

Asset residual values below assumption Will use value projection confidence bands

Aeroproc missed payment/credit default Use advanced deposits in lease Agreement/Bond

Customer missed payment/credit default Use advanced deposits in Lease Agreement/Bond

Significant maintenance problems Aeroproc to manage lease / Maintenance inspections

Aircraft accident Refer to Lessee Insurance Coverage

Aircraft seizure Aircraft Deregistration Process

Dispute on aircraft return condition Conduct audit/refer to maintenance reserve terms

Need for legal proceedings Lease Agreement

Customer wants early out Lease Agreement/Breakage Fees

Customer bankruptcy Audits/Remarketing Option

Customer does not fulfill maintenance Audits/Lease Agreement

Page 9: TWIN OTTER INVESTMENT OPPORTUNITY PRESENTATION · Otter Aircraft is Income Producing Assets.-Lease payments are an annuity stream and upon maturity date of the lease, the asset may

www.Aeroproc.com