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October 2017
Tom Schmutz, CEO
FLYHT Aerospace Solutions Ltd.
TSX.V: FLY
OTCQX: FLYLF
2TSX.V: FLY
OTCQX: FLYLF Oct 2017
Forward Looking Statements
This discussion includes certain statements that may be deeme...
3TSX.V: FLY
OTCQX: FLYLF Oct 2017
• Canadian Public Company (~$50M Market Cap)
• Calgary, Alberta
• TSX Venture: FLY
• OTC...
4TSX.V: FLY
OTCQX: FLYLF Oct 2017
• Enhanced management & BOD with industry veterans
• Factory option on Airbus A320, A330...
5TSX.V: FLY
OTCQX: FLYLF Oct 2017
• Grow overall and monthly recurring revenue by at least 25%
(1H17 revenues +16%)
• Cont...
6TSX.V: FLY
OTCQX: FLYLF Oct 2017
• Civil Aviation Administration of China (CAAC) legislated
standards for state of the ar...
7TSX.V: FLY
OTCQX: FLYLF Oct 2017
• International Civil Aviation Organization (ICAO – United Nations Body)
• Adopted new a...
8TSX.V: FLY
OTCQX: FLYLF Oct 2017
• 2016 revenue record $14.3 million
• 2016 EBITDA positive at $2.5 million
• 1H17 revenu...
9TSX.V: FLY
OTCQX: FLYLF Oct 2017
• Multiple revenue streams
• Initial hardware sales with gross margin of 40-60%
• Robust...
10TSX.V: FLY
OTCQX: FLYLF Oct 2017
AFIRSTM – More Than Just Tracking
11TSX.V: FLY
OTCQX: FLYLF Oct 2017
Iridium SATCOM
Enhanced Global
Flight Tracking
Aircraft Health
Monitoring FDR Streaming...
12TSX.V: FLY
OTCQX: FLYLF Oct 2017
• Timely access to Flight Data Recorder (FDR) Information
• Leading the industry with r...
13TSX.V: FLY
OTCQX: FLYLF Oct 2017
FLYHTASD – Aircraft Situational Display
14TSX.V: FLY
OTCQX: FLYLF Oct 2017
AFIRS alerted an airline customer to a high engine vibration
• Customer was able to tak...
15TSX.V: FLY
OTCQX: FLYLF Oct 2017
AFIRS - Competitive Advantages
Feature FLYHT
Other Satcom
OEM
Tracking
Solutions
QAR/He...
16TSX.V: FLY
OTCQX: FLYLF Oct 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 Oct 2017
30.5%
27.4%
40.6%
1.5%
Voice and data services (SAAS)
AFIRS sales
Parts (and License Fe...
18TSX.V: FLY
OTCQX: FLYLF Oct 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 Oct 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 Oct 2017
Sales Order Backlog > $25M, Growing
**Contracted hardware backlog plus 60 month value o...
21TSX.V: FLY
OTCQX: FLYLF Oct 2017
Revenues Based on Location
• Over 1,800 shipped and/or
installed units, all channels
• ...
22TSX.V: FLY
OTCQX: FLYLF Oct 2017
Leadership
David Perez
VP Sales & Marketing
Derek Graham
Chief Technical Officer
Thomas...
23TSX.V: FLY
OTCQX: FLYLF Oct 2017
• Barry Eccleston, President of Airbus Americas, Inc.
• John Belcher, former Chairman a...
24TSX.V: FLY
OTCQX: FLYLF Oct 2017
Capital Market Profile
Share Price – As of October 2, 2017 (all dollar figures are in C...
Thank You
www.flyht.com
investors@flyht.com
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FLYHT October 2017 Investor Presentation

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FLYHT October 2017 Investor Presentation

  1. 1. October 2017 Tom Schmutz, CEO FLYHT Aerospace Solutions Ltd. TSX.V: FLY OTCQX: FLYLF
  2. 2. 2TSX.V: FLY OTCQX: FLYLF Oct 2017 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. 3TSX.V: FLY OTCQX: FLYLF Oct 2017 • 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 prevent 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 Who is FLYHT?
  4. 4. 4TSX.V: FLY OTCQX: FLYLF Oct 2017 • 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 FLYHT Overview Automated Flight Information Reporting System - AFIRSTM
  5. 5. 5TSX.V: FLY OTCQX: FLYLF Oct 2017 • Grow overall and monthly recurring revenue by at least 25% (1H17 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 2017 FLYHT Plan
  6. 6. 6TSX.V: FLY OTCQX: FLYLF Oct 2017 • 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; but provisioning will proceed over the next several years • FLYHT provides outstanding solution for China through its AFIRS product Industry Drivers - China
  7. 7. 7TSX.V: FLY OTCQX: FLYLF Oct 2017 • 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
  8. 8. 8TSX.V: FLY OTCQX: FLYLF Oct 2017 • 2016 revenue record $14.3 million • 2016 EBITDA positive at $2.5 million • 1H17 revenue of $7.1 million; +16% vs. 1H16 • Booked USD $10.5 million in sales 1H17 • 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 Recent Successes
  9. 9. 9TSX.V: FLY OTCQX: FLYLF Oct 2017 • 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 2.7 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 – 23 airline customers • Signed 4 new airlines in 2017; 8 airlines in 2016 • Launched real-time data services in China! Three users • Significant remaining opportunity in sales funnel Investment Highlights
  10. 10. 10TSX.V: FLY OTCQX: FLYLF Oct 2017 AFIRSTM – More Than Just Tracking
  11. 11. 11TSX.V: FLY OTCQX: FLYLF Oct 2017 Iridium SATCOM Enhanced Global Flight Tracking Aircraft Health Monitoring FDR Streaming Fuel Management FLYHTVoice FLYHTMail ACARS over Iridium FLYHTLog FLYHTASD FLYHTHealth FLYHTStream FLYHTFuel AFIRS & UpTime Core Products 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 Oct 2017 • Timely access to Flight Data Recorder (FDR) Information • 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 Patented, Real-time Data Streaming
  13. 13. 13TSX.V: FLY OTCQX: FLYLF Oct 2017 FLYHTASD – Aircraft Situational Display
  14. 14. 14TSX.V: FLY OTCQX: FLYLF Oct 2017 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 Example Customer Success Stories
  15. 15. 15TSX.V: FLY OTCQX: FLYLF Oct 2017 AFIRS - Competitive Advantages Feature FLYHT Other Satcom OEM Tracking Solutions QAR/Health Monitoring Global Voice Coms X X X FANS/Safety Services X X ACARS over Iridium X X QAR X X X Aircraft Health Monitoring (Trends & exceedances - engine/airframe) X X X ICAO: Global Flight Tracking X X Autonomous Distress Tracking X Live Black Box Streaming X Real-time Systems Diagnostics X TSO C-159A (Voice & Data) X STCs Supporting 95% of Air Transport Aircraft X
  16. 16. 16TSX.V: FLY OTCQX: FLYLF Oct 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 Oct 2017 30.5% 27.4% 40.6% 1.5% Voice and data services (SAAS) AFIRS sales Parts (and License Fees) Services 2016 Revenue by Source Total 2016 Revenue: $14,331,191
  18. 18. 18TSX.V: FLY OTCQX: FLYLF Oct 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 Oct 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 Oct 2017 Sales Order Backlog > $25M, Growing **Contracted hardware backlog plus 60 month value of contracted, undelivered services – does not include license fees $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 Sep-16 Oct-16 Nov-16Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17Jun-17 Jul-17 Aug-17 CAD Backlog for AFIRS units and Subscription Services, Only $26,216,452
  21. 21. 21TSX.V: FLY OTCQX: FLYLF Oct 2017 Revenues Based on Location • Over 1,800 shipped and/or installed units, all channels • 1.8 million flights and 2.7 million hours of in-service use on units providing SaaS subscription voice and data services
  22. 22. 22TSX.V: FLY OTCQX: FLYLF Oct 2017 Leadership David Perez VP Sales & Marketing Derek Graham Chief Technical Officer Thomas R. Schmutz CEO Paul Takalo Interim CFO Matieu Plamondon VP Operations & Customer Fulfillment
  23. 23. 23TSX.V: FLY OTCQX: FLYLF Oct 2017 • 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 • Canadian Board Members: Bill Tempany, Mike Brown, Jacques Kavafian, Doug Marlin, Paul Takalo Industry-Connected Board Members
  24. 24. 24TSX.V: FLY OTCQX: FLYLF Oct 2017 Capital Market Profile Share Price – As of October 2, 2017 (all dollar figures are in Canadian dollars) Share Price $2.47 Market Capitalization $50.2 million 52-week low $1.70 - high $3.00 Share Structure - As of August 31, 2017 * using post-consolidation (July 17, 2017) amounts Shares 21,038,617 Diluted (assuming all instruments converted/exercised) 23,868,870 Diluted (assuming only instruments of value converted/exercised) 21,763,941 Warrants Outstanding (weighted avg. exercise price ($2.49)) 1,716,000 Stock Options Outstanding (weighted avg. exercise price ($2.49)) 1,124,253 Insider Holdings (Directors and Officers) 4.7% Debt (Low-interest, government debt) $1.8 million
  25. 25. Thank You www.flyht.com investors@flyht.com

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