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FLYHT's June 2017 Investor Presentation


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The latest updates from FLYHT Aerospace Solutions, FLY on the TSX.V

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FLYHT's June 2017 Investor Presentation

  1. 1. FLYHT Aerospace Solutions Ltd. TSX.V: FLY OTCQX: FLYLF June 2017
  2. 2. 2TSX.V: FLY OTCQX: FLYLF June 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.
  3. 3. 3TSX.V: FLY OTCQX: FLYLF June 2017 FLYHT Overview • Enhanced management & BOD with industry veterans • Experienced sales team generating interest • Factory option on Airbus A320, A330 and Bombardier CRJ • Launched UpTime™ Cloud Service Platform • Over 1,600 shipments and growing rapidly • Over 70 Airline customers…and growing • Strong pipeline of major opportunities Automated Flight Information Reporting System - AFIRSTM
  4. 4. 4TSX.V: FLY OTCQX: FLYLF June 2017 Recent Successes • 2016 revenue record $14.3 million - EBITDA positive at $2.5M • Q1 2017 revenue of $3.73 million; +43% vs. Q1 2016 • Four consecutive profitable quarters • Booked $5.7 million in AFIRS sales in Q1 2017 • More than half of 2016 • Repayment of $5.6 million in matured debentures in 2016 • Received Western Economic Diversification Canada WINN repayable contribution for $2.35M • AS9100 Quality System externally certified
  5. 5. 5TSX.V: FLY OTCQX: FLYLF June 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 • Five-year customer contracts • 100% retention • Greater than 2.5 million flight hours and 1.7 million flights using AFIRS • Certified on 95% of all aircraft used for commercial air transport; significant barrier to entry • Agreements in place with two global OEMs • 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! • Significant opportunity in sales funnel
  6. 6. 6TSX.V: FLY OTCQX: FLYLF June 2017 AFIRSTM – More Than Just Tracking
  7. 7. 7TSX.V: FLY OTCQX: FLYLF June 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 • Technology provides real-time aircraft situational information • Improves maintenance and aircraft operations to save money • Enhances operational safety
  8. 8. 8TSX.V: FLY OTCQX: FLYLF June 2017 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
  9. 9. 9TSX.V: FLY OTCQX: FLYLF FLYHTASD – Aircraft Situational Display
  10. 10. 10TSX.V: FLY OTCQX: FLYLF June 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 $4 Million • FLYHT created geo-fencing in its software to alert an airline customer when the aircraft entered or exited specific boundaries • Kept all parties advised, in real time, on the progress of each flight • Improved customer satisfaction • Reduced costs for the airline associated with poor communication and logistical support issues • FLYHT provided data to satisfy a customer’s lease agreement • The customer had a requirement to conduct 10% of takeoffs at reduced thrust • Using AFIRS, the customer was able to monitor the parameters of operations and create real-time reports • Savings of hundreds of thousands of dollars in lease penalties
  11. 11. 11TSX.V: FLY OTCQX: FLYLF June 2017 AFIRS - Competitive Advantages
  12. 12. 12TSX.V: FLY OTCQX: FLYLF June 2017 Record Quarterly Revenues Strong Revenue Growth! • Q1 2017 Revenue: • +43% increase over Q1 2016 • 2016 Revenue: • +37% increase over 2015 • 2015 Revenue: • +52% increase over 2014$- $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 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Voice & Data Services AFIRS Sales Parts Sales Services $1,598,603 $2,519,347 $3,769,267 $2,611,331 $3,537,665 $4,054,368 $4,127,827 $3,729,082
  13. 13. 13TSX.V: FLY OTCQX: FLYLF June 2017 Revenues Based on Location • Over 1,600 shipped and/or installed units • 1.7 million flights and 2.5 million hours of in-service use
  14. 14. 14TSX.V: FLY OTCQX: FLYLF June 2017 Leadership • Mat Plamondon, VP Operations & Customer Fulfillment • Derek Graham, Chief Technical Officer • Thomas R. Schmutz, CEO • Nola Heale, CFO • David Perez, VP Sales & Marketing
  15. 15. 15TSX.V: FLY OTCQX: FLYLF June 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
  16. 16. 16TSX.V: FLY OTCQX: FLYLF June 2017 Capital Market Profile Share Price – As of May 31, 2017 Share Price $0.24 Market Capitalization $50.1 million 52 week low $0.17 - high $0.30 Share Structure - As of March 31, 2017 Shares 208,629,439 Diluted (assuming all instruments converted/exercised) 235,171,090 Diluted (assuming only instruments of value converted/exercised) 233,194,590 Warrants Outstanding (weighted avg. exercise price ($0.24) 18,166,835 Stock Options Outstanding (weighted avg. exercise price ($0.26) 8,524,817 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)
  17. 17. 17 June 2017 TSX.V: FLY OTCQX: FLYLF 2017 FLYHT Plan • Grow overall and monthly recurring revenue by at least 25% • 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
  18. 18. 18TSX.V: FLY OTCQX: FLYLF June 2017 Thank you