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2018 FLYHT AGM Presentation

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FLYHT's 2018 AGM presentation from May 4.

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2018 FLYHT AGM Presentation

  1. 1. 2018 Annual General and Special Meeting FLYHT Aerospace Solutions Ltd. TSX.V: FLY OTCQX: FLYLF
  2. 2. 2TSX.V: FLY OTCQX: FLYLF May 2018 Forward Looking Statements This discussion includes certain statements that may be deemed “forward-looking statements” that are subject to risks and uncertainty. All statements, other than statements of historical facts included in this discussion, including, without limitation, those regarding the Company’s financial position, business strategy, projected costs, future plans, projected revenues, objectives of management for future operations, the Company’s ability to meet any repayment obligations, the use of non-GAAP financial measures, trends in the airline industry, the global financial outlook, expanding markets, research and development of next generation products and any government assistance in financing such developments, foreign exchange rate outlooks, new revenue streams and sales projections, cost increases as related to marketing, research and development (including AFIRS 228), administration expenses, and litigation matters, may be or include forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on a number of reasonable assumptions regarding the Canadian, U.S., and global economic environments, local and foreign government policies/regulations and actions and assumptions made based upon discussions to date with the Company’s customers and advisers, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include production rates, timing for product deliveries and installations, Canadian, U.S., and foreign government activities, volatility of the aviation market for the Company’s products and services, factors that result in significant and prolonged disruption of air travel worldwide, U.S. military activity, market prices, foreign exchange rates, continued availability of capital and financing and general economic, market, or business conditions in the aviation industry, worldwide political stability or any effect those may have on our customer base. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to have been correct. The Company cannot assure investors that actual results will be consistent with any forward-looking statements; accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are current only as of the date of this document. The Company disclaims any intentions or obligation to update or revise any forward-looking statements or comments as a result of any new information, future event or otherwise, unless such disclosure is required by law. www.flyht.com Disclaimer
  3. 3. 3 May 2018 TSX.V: FLY OTCQX: FLYLF Tom Schmutz, CEO
  4. 4. 4TSX.V: FLY OTCQX: FLYLF May 2018 Agenda • FLYHT Intro • Accomplishments in the Past Year • Press in the Past Year • Market Drivers • Boeing ecoDemonstrator Program • Financial Overview • Questions
  5. 5. 5TSX.V: FLY OTCQX: FLYLF May 2018 Who is FLYHT? • Leading provider of real-time data streaming technology that enhances the efficiency and safety of aircraft • FLYHT technology • Saves aircraft operators money • Helps streamline their operations • Proactively enhances safety, which help to prevent accidents and save lives • Consists of • Airborne - Automated Flight Information Reporting System (AFIRSTM) • Ground Server - UpTimeTM Cloud Service Platform
  6. 6. 6TSX.V: FLY OTCQX: FLYLF May 2018 Values • Customers - We recognize that customer satisfaction and profitability are key to success. • Trust - We create trust by treating each other with respect and consideration. We operate with transparency, honesty and integrity. • Culture - We provide clear objectives, a positive work environment, fair compensation and work-life balance. We have fun, promote teamwork and support each other. We value and empower each employee. • Innovation - We challenge our employees to develop creative and innovative solutions. We embrace change, manage risk and continuously improve. Mission • Our mission is to improve aviation safety, efficiency and profitability.
  7. 7. 7TSX.V: FLY OTCQX: FLYLF May 2018 Accomplishments Since Last AGM (May 2017 – May 2018) • Announced USD $13.7M in new sales • USD $2.9 million in sales contracts in Q1 2018 • Selected for Boeing ecoDemonstrator Program and Inmarsat Trial • USD $2.1 million contract signed with Azur Aviation in Turkey – Q4, 2017 • 2017: • Revenue of $14.0 million • AFIRS hardware revenue up 17% from 2016
  8. 8. 8TSX.V: FLY OTCQX: FLYLF May 2018 Accomplishments Since Last AGM, p.2 • UpTime Achieved 2 Million Flights / 3 Million Flight Hours • US Patent for FLYHTStream • Supplemental Type Certificate (STC) Library Growth to Over 90 • Achieved Aerospace Industry Certification AS9100C • Recently completed audit and submitted for revision AS9100D
  9. 9. 9TSX.V: FLY OTCQX: FLYLF May 2018 Accomplishments Since Last AGM - Press and News, 1 • Matieu Plamondon Selected as Top 20 under 40 by Wings Magazine – June 28, 2017 • Aircraft Data Acquisition Technology Feature in Avionics Magazine – August 28, 2017 • ICAO Aircraft-tracking Mandate Addressed by New Systems on MROnetwork.com – Sept.1, 2017
  10. 10. 10TSX.V: FLY OTCQX: FLYLF May 2018 Accomplishments Since Last AGM - Press and News, 2 • Exposure on Avmax Fleet Boosts FLYHT’s Data-Streaming Service on MROnetwork.com – Sept. 7, 2017 • 5 Ways Fedex is Modernizing its Flight Operations in Aviation Today – December 6, 2017 • Why Planes Could Still Vanish into Thin Air Like MH370 in Bloomberg – Feb. 7, 2018 • Flight Data Monitoring Report in Research and Markets – March 23, 2018
  11. 11. 11TSX.V: FLY OTCQX: FLYLF May 2018 Accomplishments Since Last AGM - Internal • Brought on Steve Newell – VP Business Development • Promoted Alana Forbes – CFO • Successfully passed TCCA and CAAC on site Audits • GAMECO received CAAC approval to repair AFIRS in China
  12. 12. 12TSX.V: FLY OTCQX: FLYLF May 2018 GAMECO: Guangzhou Aircraft Maintenance Engineering Company Limited • Very successful implementation of our repair facility • GAMECO has successfully conducted warranty and non- warranty work • We have a bonded warehouse at GAMECO with parts for warranty and for purchase on non-warranty repairs • The in-country repair facility will continue to support growth in China • Reduced turnaround time and shipping cost • Important presence in China increasing value proposition
  13. 13. 13TSX.V: FLY OTCQX: FLYLF April 2018 • Civil Aviation Administration of China (CAAC) legislated standards for state of the art aircraft communications • Chinese SATCOM Voice Regulation • Between Airline Operations Center (AOC) and Aircraft • Within 4 minutes, while in Chinese airspace • Original deadline was December, 2017 • New deadline is December, 2019 via CCAR 121 R5 • FLYHT provides outstanding solution for China through its AFIRS product Industry Drivers – China
  14. 14. 14TSX.V: FLY OTCQX: FLYLF April 2018 • International Civil Aviation Organization (ICAO – United Nations Body) • Adopted new amendments to Annex 6 (Operation of Aircraft) • Takes effect between now and 2021 • Amendment 39 • Applicable November 1, 2018 • Normal Aircraft Tracking – 15 minute interval • Amendment 40 • Newly manufactured aircraft from January 1, 2021 • Autonomous Distress Tracking (ADT) • 1 minute interval tracks • Distress circumstances • Timely Access to Flight Recorder Data • Flight recorder data recovered and made available in a timely manner. • FLY has active R&D program and trials with Boeing and Inmarsat targeting the above two amendments Industry Drivers – Global
  15. 15. 15 May 2018 TSX.V: FLY OTCQX: FLYLF Derek Graham, CTO
  16. 16. 16 May 2018 TSX.V: FLY OTCQX: FLYLF
  17. 17. 17 May 2018 TSX.V: FLY OTCQX: FLYLF FLYHT’s Involvement in the ecoDemonstrator Program • Work with Boeing to gain experience with and evaluate streamed FDR data through Inmarsat and Iridium to support requirements definition for ICAO mandates for Timely Recovery of Flight Data (TRFD), and Aircraft Distress Tracking (ADT) • Provide interface to control tracking and data streaming • Demonstrate buffered and real-time streaming to analyze any aircraft event
  18. 18. 18TSX.V: FLY OTCQX: FLYLF May 2018 AFIRS Solution
  19. 19. 19 May 2018 TSX.V: FLY OTCQX: FLYLF Boeing ecoDemonstrator Installation • Interfaces • FDR (1024 WPS) • AFIRS Cockpit Area Mic (A429)
  20. 20. 20 May 2018 TSX.V: FLY OTCQX: FLYLF FLYHTStream - Data • FDR data (ARINC 717), ARINC 429 data, and INS data is streamed in real- time and made available through UpTime Cloud. This data is used for Flight Data Monitoring and by accident investigation boards.
  21. 21. 21 May 2018 TSX.V: FLY OTCQX: FLYLF FLYHTStream - Manual • Manual streaming can be triggered at any time by a user through UpTime Cloud
  22. 22. 22 May 2018 TSX.V: FLY OTCQX: FLYLF FLYHTStream - Triggered • Automatic streaming is triggered using pre-defined conditions • When a condition is detected, AFIRS begins to stream • From trigger initiation, AFIRS continues to stream for 20 minutes • To provide more context around the event, AFIRS also captures and transmits 20 minutes of data from BEFORE the event • If multiple conditions have been detected, AFIRS will continue to stream until all conditions are satisfied
  23. 23. 23 May 2018 TSX.V: FLY OTCQX: FLYLF FLYHTStream - Audio • AFIRS Cockpit Area Mic audio Streaming • Cockpit audio is sent to the AFIRS DMU via ARINC 429 then through the Inmarsat network to FLYHTs ground servers, where audio files are played back in real time • Similar to data streaming, audio streaming can be initiated automatically or manually
  24. 24. 24TSX.V: FLY OTCQX: FLYLF April 2018 • Real-Time Flight Data • Real-Time Cockpit Area Microphone Data • Flight Profile • Map Location • Aircraft Attitude • Flight Deck Instrumentation • Situational Awareness! Virtual Cockpit
  25. 25. 25TSX.V: FLY OTCQX: FLYLF April 2018 The flight animation tool shows: • graphs in real-time with parameters of the user’s choosing • real-time animation of the aircraft from various angles • real-time animation of the flight deck, including flight controls and instruments
  26. 26. 26TSX.V: FLY OTCQX: FLYLF May 2018 Live Demo or Video
  27. 27. 27 May 2018 TSX.V: FLY OTCQX: FLYLF Value/Benefits • Automatic triggers can be set to help predict maintenance requirements (i.e. correct tools/parts can be sent to the aircraft earlier resulting in less down-time) • In case of aircraft issues, by using the flight data to analyze, operations has more visibility on the implications (i.e. better flight planning and more accurate responses to aircraft problems) • Will address ICAO requirement for Timely Recovery of Flight Data • Autonomous Distress Tracking
  28. 28. 28 May 2018 TSX.V: FLY OTCQX: FLYLF Alana Forbes, CFO
  29. 29. 29TSX.V: FLY OTCQX: FLYLF May 2018 Section Agenda • IFRS15 & revenue categories • Historical financial: • Results • Position • Performance • Revenue components • New production area • Milestones
  30. 30. 30 IFRS15 & Revenue Re-assessment • Legacy Revenue Categories • Voice and Data Services • AFIRS Sales • AFIRS unit: with kit • Parts Sales • AFIRS units: no kit • Spare Parts • Underfloor Stowage Units • License Fees and Modems • Services • New Revenue Categories • SaaS • AFIRS Hardware • Licensing • Technical Services
  31. 31. 31 May 2018 TSX.V: FLY OTCQX: FLYLF 2014 to 2017 Financial Results
  32. 32. 32 May 2018 TSX.V: FLY OTCQX: FLYLF 2014 to 2017 Financial Position
  33. 33. 33 Historical Financial Performance Annual Revenues Gross Margins $8,000,364 $6,882,028 $10,457,125 $14,331,191 $14,018,750 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 2013 2014 2015 2016 2017 59.2% 62.9% 69.3% 68.4% 65.90% 50% 55% 60% 65% 70% 75% 2013 2014 2015 2016 2017
  34. 34. 34 May 2018 TSX.V: FLY OTCQX: FLYLF Quarterly Revenue Components 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 SaaS AFIRS HW Licensing Technical Services Total
  35. 35. 35 May 2018 TSX.V: FLY OTCQX: FLYLF New Production Area: 3 X Size OLD NEW
  36. 36. 36 May 2018 TSX.V: FLY OTCQX: FLYLF 2 Million Flights & 3 Million Flight Hours
  37. 37. Thank You www.flyht.com investors@flyht.com

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