AeroSphere — Business Model

The diversified revenue architecture, the aeronautical versus non-aeronautical balance, the revenue build-up and the unit economics and margin drivers underpinning AeroSphere.

Section 4 · Business Plan

Business Model

The diversified revenue architecture, the aeronautical versus non-aeronautical balance, the revenue build-up and the unit economics and margin drivers underpinning AeroSphere.

AeroSphere’s business model is built on a single, powerful principle
proven by Southern Africa’s leading private airport: an airport should
not be operated as a single-revenue aeronautical utility, but as a
diversified commercial ecosystem in which aeronautical, logistics,
property, retail and aviation-services revenues reinforce one another.
Diversification of this kind is the primary determinant of EBITDA
resilience and creditworthiness.

4.1 The Diversified Revenue Architecture

The Company will develop and operate nine distinct, complementary
revenue streams. Each is individually viable; together they form a
self-reinforcing platform in which passenger traffic drives retail and
parking, cargo drives property and warehousing, and aviation services
anchor long-term tenant relationships.

#	Revenue stream	Description	Type
1	Passenger aviation	Landing, parking & passenger service charges	Aeronautical
2	Cargo & freight	Air-cargo handling, warehousing, cold chain	Mixed
3	Vehicle parking	Short- and long-term parking	Non-aero
4	Property development	Commercial real estate & land leases	Non-aero
5	Retail & F&B	Airport concessions & duty-free	Non-aero
6	FBO services	Private & executive aviation support	Mixed
7	Aircraft maintenance (MRO)	Line & base maintenance	Mixed
8	Fuel handling	Aviation fuel into-plane services	Aeronautical
9	Hangar leasing	Aviation property rentals	Non-aero

Figure 4.1

Figure 4.1 — Projected Year-7 revenue mix, demonstrating the balance between aeronautical and non-aeronautical income.

4.2 Aeronautical vs Non-Aeronautical Balance

A defining feature of a high-quality airport business is the share of
revenue that comes from non-aeronautical sources — retail, property,
parking and services — because these revenues are typically
higher-margin, less regulated, and less directly exposed to airline
cyclicality. AeroSphere’s model deliberately shifts the revenue mix
toward non-aeronautical income as the aerotropolis matures, materially
improving margin quality over time.

Figure 4.2

Figure 4.2 — The revenue mix shifts steadily toward higher-margin non-aeronautical income as the property and logistics estate matures.

4.3 Revenue Build-Up

The combined revenue trajectory reflects the phased commissioning of
each division. Passenger and cargo revenues lead, followed by property,
retail and services as the aerotropolis estate is developed and
tenanted.

Figure 4.3

Figure 4.3 — Projected revenue build-up by segment over the seven-year horizon (ZAR millions).

4.4 Unit Economics & Margin Drivers

The economics of the platform improve markedly with scale. Fixed
airfield and terminal costs are absorbed across a growing traffic and
tenant base, while the highest-margin revenue lines — property leasing,
retail concessions and parking — grow fastest. The result is a steep
margin-expansion curve from a loss-making ramp-up to a Year-7 EBITDA
margin of approximately 36%, broadly consistent with the implied margins
of established airport operators in the region.

Margin driver	Mechanism	Margin impact
Operating leverage	Fixed costs spread over rising volume	High
Non-aero mix shift	Property & retail outgrow aeronautical	High
Tenant lock-in	Long-dated leases, escalation clauses	Medium
Cargo cold-chain premium	Pharma & perishables yield uplift	Medium
FBO/MRO value-add	Premium services, high retention	Medium
Energy & cost control	Solar, efficiency, private discipline	Medium

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of AeroSphere Gateway Holdings (Pty) Ltd.