FLYHT Aerospace Solutions — Investor Presentation (February 2020)
26 slides from FLYHT Aerospace Solutions's investor presentation, February 2020
Slide 1: FLYHT Aerospace Solutions Ltd.
FEBRUARY 2020 FLYHT Aerospace Solutions Ltd. TSX.V: FLY OTCQX: FLYLF 1 TSX.V: FLY OTCQX: FLYLF
Slide 2: Disclaimers
Disclaimers WWW.FLYHT.COM 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 limita
Slide 3: FLYHT – Our customers understand not only where their aircraft is, but how it is
FLYHT – Our customers understand not only where their aircraft is, but how it is. ~ $50 Million Backlog • Our solutions ~$21 Million Strong Regulatory • Save Aircraft Operators Money TTM Revenue Tailwinds • Streamline Their Operations • Enhance Operational Safety Accelerating SaaS revenues >40% tota
Slide 4: FLYHT: Leading Provider of Real-Time Aircraft Data Streaming Technology
FLYHT: Leading Provider of Real-Time Aircraft Data Streaming Technology The Automated Flight Information Reporting System (AFIRSTM) • Iridium-based SATCOM device installed on the aircraft • AFIRS connects to numerous aircraft systems • AFIRS software acquires and transmits aircraft data in real time
Slide 5: Industry Drivers
Industry Drivers: Connected Aircraft Creates Opportunity for Operational Expansion of Satellite Improvements Communications in • Real-time connection via higher Aircraft bandwidth systems • Revolutionizing Air Traffic Control Commercial Aircraft • Regulatory requirements* • AOC efficiencies & enviro
Slide 6: Core Products
Core Products Enhanced Aircraft Iridium FDR Fuel Weather Global Flight Health SATCOM Streaming Management Observations Tracking Monitoring FLYHTVoice FLYHTLog FLYHTHealth FLYHTStream FLYHTFuel TAMDAR FLYHTMail FLYHTASD ⎼ Engine Trends ⎼ Exceedances ACARS over AirMap ⎼ Diagnostics Iridium Where Uniqu
Slide 7: AirMap
AirMapTM 7 TSX.V: FLY OTCQX: FLYLF
Slide 8: Customer Specific Reporting (FLYHTHealth)
Customer Specific Reporting (FLYHTHealth) “A 1% increase in on-time performance equates to several hundreds of thousands of dollars per year in savings for a 50 aircraft operation” Fuel Door State Landing Gear Report Warning Report Battery Status Report Fuel Door Warning Reports APU Usage Report Cus
Slide 9: Customer Successes: Flexible Solution
Customer Successes: Flexible Solution Value Proposition Solution Savings FLYHTHealth alerted customer about engine Replacement cost for the engine: $5.2 million exceedance Disaster Avoidance Repair cost based on AFIRS-driven data: $780k • Customer was able to proactively remove Net Savings > $4+ mil
Slide 10: Total Addressable Market
Total Addressable Market Total Addressable Market (40,000) (Bizjet plus Commercial) Commercial Addressable Market (25,000) FLYHT Units Shipped/Installed (~2,700) FLYHT Units Providing SaaS (~580) 10 TSX.V: FLY OTCQX: FLYLF
Slide 11: TAMDAR Sensor
TAMDAR Sensor FLYHT’s proprietary Tropospheric Airborne Meteorological Data Reporting (TAMDAR) weather sensor accurately captures: ✓ Wind: speed and direction ✓ Temperature ✓ Relative humidity ✓ Icing ✓ Eddy Dissipation Rate (EDR) ✓ Turbulence ✓ Position: latitude/longitude, altitude, time 11 TSX.V:
Slide 12: The TAMDAR Difference
The TAMDAR Difference Forecast with TAMDAR Radar of Actual Event 72 hour forecast with / without TAMDAR Data versus actual weather US$2M/year contract with NOAA Forecast without TAMDAR 12 12 TSX.V: FLY OTCQX: FLYLF
Slide 13: Boeing ecoDemonstrator – Joint Conclusion
Streaming Black Box Data in Real-time via Inmarsat 2018 ECODEMONSTRATOR PROGRAM: and Iridium • Fedex B777 Freighter • 37 different technologies tested Boeing ecoDemonstrator – Joint Conclusion (Boeing, Embraer, FLYHT) Whitepaper jointly presented at AEEC conference (August 2018) “Existing, commercia
Slide 14: Recreating the Pilot's Experience: Virtual Cockpit
Recreating the Pilot’s Experience: Virtual Cockpit ✓ Real-Time Flight Data ✓ Real-time Cockpit Area Microphone ✓ Flight Profile ✓ Map Location ✓ Aircraft Attitude ✓ Flight Deck Instrumentation ✓ Situational Awareness! 14 TSX.V: FLY OTCQX: FLYLF
Slide 15: Competitive Advantages
Competitive Advantages Solutions SatCom SaaS FLYHT Competitive ✓ Only current supplier for Airbus A320, A220 ✓ Clear leader in communication of Advantages and A330 aircraft with Iridium systems through real-time aircraft performance data L3Harris partnership including engine trends, ✓ Inaugural TSO
Slide 16: Capital Market Profile
Capital Market Profile Share Price Share Price $1.63 As of Feb 5, 2020 (all dollar figures are in Canadian dollars) Market Capitalization $33,708,085 2 300000 Share Price 52-week low $1.63 $0.94 1.8 Market 52-weekCapitalization high $43.5M $1.90 250000 1.6 52-week low Volume Average Daily $1.12 13,6
Slide 17: Revenue and Gross Margins
Revenue and Gross Margins Annual Revenues plus Other Income Current Backlog of ~ $50M $25,000,000 $23,540,823 Overall Gross Margins $20,000,000 69.3% 70% 68.4% $17,554,357 66.9% 62.9% $15,451,566 60% 59.3% 56.8% $15,000,000 $13,694,888 50% $10,457,125 40% $10,000,000 30% $6,882,028 20% $5,000,000 10
Slide 18: FLYHT Quarterly Revenue
FLYHT Quarterly Revenue $7,000,000 $6,000,000 $5,000,000 $4,000,000 Tech Services $3,000,000 License/Parts SaaS SalesQuarterly Revenue SaaS Quarterly Revenue HW sales $2,750,000 $2,000,000 SaaS $2,550,000 $2,350,000 $2,150,000 $1,000,000 $1,950,000 $1,750,000 $1,550,000 $- $1,350,000 $1,150,000 18 1
Slide 19: Revenue and Other Income, Annual Source
Revenue and Other Income, Annual Source Other Income 13.4% 0.0% 18.4% 34.0% 2018: SaaS 31.5% 24.9% $15,749,752 Hardware 36.6% 2017: 39.8% 24.4% $13,699,542 Licensing 14.4% 27.4% 31.1% 2016: $17,554,357 Technical Services 1.6% 1.4% 1.2% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 2018 i
Slide 20: Topline – Expenses – Bottom Line
Topline – Expenses – Bottom Line Revenue + Other Income Expenses (D, A, R&D) Income $25,000,000 $20,000,000 $15,000,000 Holding line on Expenses while growing the Topline $10,000,000 $5,000,000 $- 2014 2015 2016 2017 2018 YTD 3Q2019 -$5,000,000 20 TSX.V: FLY OTCQX: FLYLF
Slide 21: 2018 Geographical Revenue
2018 Geographical Revenue Currently: Europe North ~ 2,700 units shipped America 5.7% Middle East and/or installed 43.7% $770,574 $5,935,692 13.2% ~ 2.6 million flights and $1,794,439 Asia ~ 4 million hours of voice 23.5% Africa and data services generating $3,194,342 SaaS revenues from Uptime 4.3% $
Slide 22: FLYHT Growth Drivers
FLYHT Growth Drivers Expanding sales & New Products marketing effort Clear leader • Weather in aircraft acquisition • Investment to Continued health/ • Nextgen help educate presence as industry of SaaS diagnostic SatCom benefits Strong established SaaS services • SatCom Industry SatCom agnostic SaaS
Slide 23: Investment Highlights
Investment Highlights 20-year proven track record Robust SaaS recurring revenue gross margins of 70-85% • ~ 4 million flight hours and ~2.6 million flights using AFIRS • Five-year customer contracts • 80+ customers…and growing • 100% retention for going concerns • ~ 2,700 shipments and growing rapid
Slide 24: Leadership Team
Leadership Team Industry Veterans Tom Derek Alana Schmutz Graham Forbes CEO CTO CFO Matieu Jeff Plamondon Rex COO VP Sales and Marketing 24 TSX.V: FLY OTCQX: FLYLF
Slide 25: Board Members
Board Members Bill Tempany Mike Brown Barry Eccleston Chairman of the Board Partner former President Airbus former CEO FLYHT Geselbracht Brown LLP Americas, Inc. Nina Jonsson Doug Marlin Cpt. Mary McMillan Viking Fleet Advisors Software Entrepreneur former Vice President - Marlin Ventures Inmarsat P
Slide 26: FLYHT Aerospace Solutions Ltd.
TSX.V: FLY OTCQX: FLYLF FLYHT Aerospace Solutions Ltd. Investor US Investor Contact Relations Relations Deborah Honig Matt Glover 300E, 1144 – 29th Adelaide Capital Markets Charlie Avenue NE, Calgary, Schumacher AB, T2E 7P1, Canada 1-647-203-8793 deborah@adcap.ca Gateway Investor 1-403-250-9956 Rela
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