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FLYHT Aerospace Solutions Ltd.
TSX.V: FLY
OTCQX: FLYLF
August 2017
Thomas R. Schmutz, CEO
2TSX.V: FLY
OTCQX: FLYLF Aug 2017
Disclaimer
Forward Looking Statements
This discussion includes certain statements that m...
3TSX.V: FLY
OTCQX: FLYLF Aug 2017
Who is FLYHT?
• Canadian Public Company (~$50M Market Cap)
• Calgary, Alberta
• TSX Vent...
4TSX.V: FLY
OTCQX: FLYLF Aug 2017
FLYHT Overview
• Enhanced management & BOD with industry veterans
• Factory option on Ai...
5
Aug 2017
TSX.V: FLY
OTCQX: FLYLF
2017 FLYHT Plan
• Grow overall and monthly recurring revenue by at
least 25%. (1H’17 re...
6TSX.V: FLY
OTCQX: FLYLF Aug 2017
Industry Drivers - China
• Civil Aviation Administration of China (CAAC)
legislated stan...
7TSX.V: FLY
OTCQX: FLYLF Aug 2017
Industry Drivers – Global
• International Civil Aviation Organization (ICAO - UN Body)
•...
8TSX.V: FLY
OTCQX: FLYLF Aug 2017
Recent Successes
• 2016 revenue record $14.3 million
• 2016 EBITDA positive at $2.5 mill...
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OTCQX: FLYLF Aug 2017
Investment Highlights
• Multiple revenue streams
• Initial hardware sales with gross mar...
10TSX.V: FLY
OTCQX: FLYLF Aug 2017
AFIRSTM – More Than Just Tracking
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OTCQX: FLYLF Aug 2017
AFIRS & UpTime Core Products
Iridium
SATCOM
Enhanced
Global Flight
Tracking
Aircraft He...
12TSX.V: FLY
OTCQX: FLYLF Aug 2017
Patented, Real-time Data Streaming
• Timely access to Flight Data Recorder (FDR) data
•...
13
Aug 2017
TSX.V: FLY
OTCQX: FLYLF
FLYHTASD – Aircraft Situational Display
14TSX.V: FLY
OTCQX: FLYLF Aug 2017
Example Customer Success Stories
• AFIRS alerted an airline customer to a high engine v...
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OTCQX: FLYLF Aug 2017
AFIRS - Competitive Advantages
16TSX.V: FLY
OTCQX: FLYLF Aug 2017
Annual Revenues
$6,469,806
$8,000,364
$6,882,028
$10,457,125
$14,331,191
$0
$2,000,000
...
17TSX.V: FLY
OTCQX: FLYLF Aug 2017
2016 Revenue by Source
Total 2016 Revenue:
$14,331,191
30.50%
27.40%
40.60%
1.50%
Voice...
18TSX.V: FLY
OTCQX: FLYLF Aug 2017
EBITDA
-$4,204,166
-$2,914,987
-$3,321,959 -$3,156,430
$2,503,610
-$5,000,000
-$4,000,0...
19TSX.V: FLY
OTCQX: FLYLF Aug 2017
Gross Margins: All Revenue Sources
57.2%
59.2%
62.9%
69.3%
68.4%
50%
55%
60%
65%
70%
75...
20TSX.V: FLY
OTCQX: FLYLF Aug 2017
Sales Order Backlog > $25M, Growing
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$...
21TSX.V: FLY
OTCQX: FLYLF Aug 2017
Revenues Based on Location
• Over 1,800 shipped and/or installed units
• 1.8 million fl...
22TSX.V: FLY
OTCQX: FLYLF Aug 2017
Leadership
• David Perez, VP Sales & Marketing
• Derek Graham, Chief Technical Officer
...
23TSX.V: FLY
OTCQX: FLYLF Aug 2017
Industry-Connected Board Members
• Barry Eccleston, President of Airbus Americas, Inc.
...
24TSX.V: FLY
OTCQX: FLYLF Aug 2017
Capital Market Profile
Share Price – As of August 14, 2017
Share Price $2.48
Market Cap...
25TSX.V: FLY
OTCQX: FLYLF Aug 2017
Thank you
www.flyht.com
investors@flyht.com
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FLYHT August 2017 Investor Presentation

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FLYHT August 2017 Investor Presentation

  1. 1. FLYHT Aerospace Solutions Ltd. TSX.V: FLY OTCQX: FLYLF August 2017 Thomas R. Schmutz, CEO
  2. 2. 2TSX.V: FLY OTCQX: FLYLF Aug 2017 Disclaimer 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
  3. 3. 3TSX.V: FLY OTCQX: FLYLF Aug 2017 Who is FLYHT? • Canadian Public Company (~$50M Market Cap) • Calgary, Alberta • TSX Venture: FLY • OTCQX: FLYLF • Leading provider of real-time data streaming technology that enhances the efficiency and safety of aircraft • Saves aircraft operators money • Helps streamline their operations • Proactively enhances safety, which help to prevents accidents and save lives • FLYHT technology • Airborne - Automated Flight Information Reporting System (AFIRSTM) • Ground Server - UpTimeTM Cloud Service Platform • FLYHT is a rapidly growing, “company to watch” in the aviation technology space
  4. 4. 4TSX.V: FLY OTCQX: FLYLF Aug 2017 FLYHT Overview • Enhanced management & BOD with industry veterans • Factory option on Airbus A320, A330 and Bombardier CRJ • Other platforms in process • Over 1,800 shipments and growing rapidly • Over 70 Airline customers…and growing • Major success in China, fastest growing market • Cultivated a significant sales backlog (> $25M) • Supplemental Type Certificates (> 70 STC) • Barrier to Entry • Right to install • Most extensive Satcom catalogue in world • Qualified on 95% of commercial aircraft types Automated Flight Information Reporting System - AFIRSTM
  5. 5. 5 Aug 2017 TSX.V: FLY OTCQX: FLYLF 2017 FLYHT Plan • Grow overall and monthly recurring revenue by at least 25%. (1H’17 revenues +16%) • Continue success in China – secure a major services deal • Win new contracts in South East Asia, Europe and the Middle East • Secure business with a new OEM position • Remain EBITDA Positive • Grow public value through strategic business initiatives
  6. 6. 6TSX.V: FLY OTCQX: FLYLF Aug 2017 Industry Drivers - China • 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 • Deadline is December, 2017 • FLY is the #1 Iridium service provider in China through its AFIRS solution
  7. 7. 7TSX.V: FLY OTCQX: FLYLF Aug 2017 Industry Drivers – Global • International Civil Aviation Organization (ICAO - UN 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 Data Recorder Information • Flight recorder data recovered and made available in a timely manner. • FLY has active R&D program and trials with Boeing and a major OEM targeting the above two amendments
  8. 8. 8TSX.V: FLY OTCQX: FLYLF Aug 2017 Recent Successes • 2016 revenue record $14.3 million • 2016 EBITDA positive at $2.5 million • 1H’17 revenue of $7.1 million; +16% vs. 1H’16 • Booked USD $10.5 million in sales 1H’17 • Q217 Voice and Data Services revenue up 14% over Q216 • Q217 Parts revenue up 31% over Q216 • Payment of $5.6 million in matured debentures in 2016 • Very little resulting debt (~$1.6M, SADI, low coupon, long term) • Received Western Economic Diversification Canada WINN repayable contribution for $2.35M - 0% coupon loan • AS9100 Quality System externally certified • Strong pipeline of major opportunities
  9. 9. 9TSX.V: FLY OTCQX: FLYLF Aug 2017 Investment Highlights • Multiple revenue streams • Initial hardware sales with gross margin of 40-60% • Robust SAAS recurring revenue gross margins of 70-85% • Licensing arrangement with OEM of close to 100% margin • A la carte collection of SAAS products • Five-year customer contracts • Simple pricing, per aircraft per month with bundled airtime • 100% retention • Greater than 2.6 million flight hours and 1.8 million flights using AFIRS • Certified on 95% of all aircraft used for commercial air transport • Agreements in place with two global OEMs • Major growth of sales in China – 22 airline customers • Signed 2 new airlines in 2017; 8 airlines in 2016 • Launched real-time data services in China! Three users • Significant remaining opportunity in sales funnel
  10. 10. 10TSX.V: FLY OTCQX: FLYLF Aug 2017 AFIRSTM – More Than Just Tracking
  11. 11. 11TSX.V: FLY OTCQX: FLYLF Aug 2017 AFIRS & UpTime Core Products Iridium SATCOM Enhanced Global Flight Tracking Aircraft Health Monitoring FDR Streaming Fuel Management FLYHTVoice FLYHTMail ACARS over Iridium FLYHTLog FLYHTASD FLYHTHealth FLYHTStream FLYHTFuel Where FLYHT Competes Unique, Value-Added Services FLYHT Upsells • Saves aircraft operators money • Streamlines their operations • Enhances operational safety • “Bread and Butter” Products
  12. 12. 12TSX.V: FLY OTCQX: FLYLF Aug 2017 Patented, Real-time Data Streaming • Timely access to Flight Data Recorder (FDR) data • Leading the industry with real-time FDR (black box) streaming technology • Technology raises the standard of tracking and automated alerting • Customizable triggers for streaming, frequency of flight following reports and selectable data that is streamed to the ground
  13. 13. 13 Aug 2017 TSX.V: FLY OTCQX: FLYLF FLYHTASD – Aircraft Situational Display
  14. 14. 14TSX.V: FLY OTCQX: FLYLF Aug 2017 Example Customer Success Stories • AFIRS alerted an airline customer to a high engine vibration • Customer was able to take the aircraft out of service to diagnose and fix the issue • The replacement cost for the engine: $5.2 million • The repair cost based on AFIRS-driven data: $780 thousand • Savings: Over $4 Million • FLYHT created geo-fencing in its software to alert an airline customer when the aircraft entered or exited specific boundaries • Kept all parties advised, in real time, on the progress of each flight • Improved customer satisfaction • Reduced costs for the airline associated with poor communication and logistical support issues • FLYHT provided data to satisfy a customer’s lease agreement • The customer had a requirement to conduct 10% of takeoffs at reduced thrust • Using AFIRS, the customer was able to monitor the parameters of operations and create real-time reports • Savings of hundreds of thousands of dollars in lease penalties
  15. 15. 15TSX.V: FLY OTCQX: FLYLF Aug 2017 AFIRS - Competitive Advantages
  16. 16. 16TSX.V: FLY OTCQX: FLYLF Aug 2017 Annual Revenues $6,469,806 $8,000,364 $6,882,028 $10,457,125 $14,331,191 $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 2012 2013 2014 2015 2016 Strong Revenue Growth! • 2016 Revenue: • +37% increase over 2015 • 2015 Revenue: • +52% increase over 2014
  17. 17. 17TSX.V: FLY OTCQX: FLYLF Aug 2017 2016 Revenue by Source Total 2016 Revenue: $14,331,191 30.50% 27.40% 40.60% 1.50% Voice and data services (SAAS) AFIRS sales Parts (and License Fees) Services
  18. 18. 18TSX.V: FLY OTCQX: FLYLF Aug 2017 EBITDA -$4,204,166 -$2,914,987 -$3,321,959 -$3,156,430 $2,503,610 -$5,000,000 -$4,000,000 -$3,000,000 -$2,000,000 -$1,000,000 $0 $1,000,000 $2,000,000 $3,000,000 2012 2013 2014 2015 2016 *Paid back $5.6M in matured debentures in 2016
  19. 19. 19TSX.V: FLY OTCQX: FLYLF Aug 2017 Gross Margins: All Revenue Sources 57.2% 59.2% 62.9% 69.3% 68.4% 50% 55% 60% 65% 70% 75% 2012 2013 2014 2015 2016
  20. 20. 20TSX.V: FLY OTCQX: FLYLF Aug 2017 Sales Order Backlog > $25M, Growing $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 CAD **Contracted hardware backlog plus 60 month value of contracted, undelivered services – does not include license fees
  21. 21. 21TSX.V: FLY OTCQX: FLYLF Aug 2017 Revenues Based on Location • Over 1,800 shipped and/or installed units • 1.8 million flights and 2.6 million hours of in-service use
  22. 22. 22TSX.V: FLY OTCQX: FLYLF Aug 2017 Leadership • David Perez, VP Sales & Marketing • Derek Graham, Chief Technical Officer • Thomas R. Schmutz, CEO • Paul Takalo, Interim CFO • Matieu Plamondon, Operations & Customer Fulfillment
  23. 23. 23TSX.V: FLY OTCQX: FLYLF Aug 2017 Industry-Connected Board Members • Barry Eccleston, President of Airbus Americas, Inc. • John Belcher, former Chairman and CEO of ARINC • Mark Rosenker, former Chairman of the National Transportation Safety Board • Jack Olcott, former President of the National Business Aviation Association Underfloor Stowage Unit
  24. 24. 24TSX.V: FLY OTCQX: FLYLF Aug 2017 Capital Market Profile Share Price – As of August 14, 2017 Share Price $2.48 Market Capitalization $51.9 million 52 week low $1.7 - high $3.0 Share Structure - As of June 30, 2017 * using post-consolidation (July 17, 2017) amounts Shares 20,963,617 Diluted (assuming all instruments converted/exercised) 23,883,880 Diluted (assuming only instruments of value converted/exercised) 21,738,951 Warrants Outstanding (weighted avg. exercise price ($2.5) 1,716,000 Stock Options Outstanding (weighted avg. exercise price ($2.5) 1,214,253 Insider Holdings (Directors and Officers) 5.1% Debt (Low-interest government debt) $1.8 million 2 2016 2015 2014 2013 Revenue $14.3 $10.5 $6.9 $8.0 Net Profit (Loss) $1.7 ($3.9) ($4.3) ($4.1) EBITDA $2.5 ($3.2) ($3.3) ($2.9) Financial Results Snapshot - ($millions)
  25. 25. 25TSX.V: FLY OTCQX: FLYLF Aug 2017 Thank you www.flyht.com investors@flyht.com

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