FLYHT Aerospace Solutions — Investor Presentation (October 2019)
31 slides from FLYHT Aerospace Solutions's investor presentation, Oct 21, 2019
Slide 1: FLYHT Aerospace Solutions Ltd.
OCTOBER 21, 2019 FLYHT Aerospace Solutions Ltd. TSX.V: FLY OTCQX: FLYLF 1 TSX.V: FLY OTCQX: FLYLF
Slide 2: Disclaimers
Disclaimers WWW.FLYHT.COM This confidential presentation has been prepared by FLYHT Aerospace Solutions Ltd. (“FLYHT” or the “Company”) solely for information purposes and is not, and under no circumstances is to be construed as, a prospectus, or advertisement or a public offering of securities. Sec
Slide 3: Disclaimers: Forward Looking Statements
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 4: Disclaimers: Statutory Rights of Action
Disclaimers WWW.FLYHT.COM Statutory Rights of Action In certain circumstances, investors resident in certain provinces of Canada, are provided with a remedy for rescission or damages, or both, in addition to any other right they may have at law, where an offering memorandum (such as this presentatio
Slide 5: Disclaimers: Cautionary Note to United States Investors
Disclaimers WWW.FLYHT.COM In Manitoba, the Securities Act (Manitoba), in Newfoundland and Labrador the Securities Act (Newfoundland and Labrador), in Prince Edward Island the Securities Act (PEI), in Yukon, the Securities Act (Yukon), in Nunavut, the Securities Act (Nunavut) and in the Northwest Ter
Slide 6: 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 $18.8 Million Strong Regulatory • Save Aircraft Operators Money TTM Revenue Tailwinds • Streamline Their Operations • Enhance Operational Safety Accelerating SaaS revenues > 40% to
Slide 7: 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 8: 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 9: 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 10: AirMap
AirMapTM 10 TSX.V: FLY OTCQX: FLYLF
Slide 11: 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 12: 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 13: Total Addressable Market
Total Addressable Market Total Addressable Market (40,000) (Bizjet plus Commercial) Commercial Addressable Market (25,000) FLYHT Units Shipped/Installed (2,500) FLYHT Units Providing SaaS (550) 13 TSX.V: FLY OTCQX: FLYLF
Slide 14: FLYHT's Weather and Satellite Data Team
FLYHT’s Weather and Satellite Data Team October 2018 – Acquired Panasonic Weather Solutions Experienced Personnel Technology and Intellectual Property • Operational sensor network since • Patented Tropospheric Airborne 2004 Meteorological Data Reporting (TAMDAR) • 27 atmospheric scientists, sensor i
Slide 15: 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 15 TSX.V:
Slide 16: Boeing ecoDemonstrator – Joint Conclusion (Boeing, Embraer, FLYHT)
2018 ECODEMONSTRATOR PROGRAM: • Fedex B777 Freighter • 37 different technologies tested Boeing ecoDemonstrator – Joint Conclusion (Boeing, Embraer, FLYHT) Whitepaper jointly presented at AEEC conference (August 2018) “Existing, commercially available equipment and network services (FLYHT’s AFIRS and
Slide 17: Boeing ecoDemonstrator: Virtual Cockpit
Boeing ecoDemonstrator 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! 17 TSX.V: FLY OTCQX: FLYLF
Slide 18: Boeing ecoDemonstrator: Streaming Black Box Data
Boeing ecoDemonstrator Streaming Black Box Data in Real-time via Inmarsat 18 TSX.V: FLY OTCQX: FLYLF
Slide 19: 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 20: Capital Market Profile
Capital Market Profile Share Price Share Price $1.63 As of October 04, 2019 (all dollar figures are in Canadian dollars) Market Capitalization $33,708,085 2 180000 Share Price 52-week low $1.39 $0.94 1.8 Market 52-weekCapitalization high $28,744,932 $1.90 160000 1.6 52-week low Volume Average Daily
Slide 21: Revenue and Gross Margins
Revenue and Gross Margins Current Backlog of > $50M 2018 information reflects the adoption of IFRS15 as at January 1, 2018. Other Income: One-time IP Sale in 2016 | PWS Subsidy in 2018, June 2019 TTM Under the transition method chosen for application of IFRS15, comparative 2017 information has been
Slide 22: SaaS Quarterly Revenue
SaaS Quarterly Revenue 22 TSX.V: FLY OTCQX: FLYLF
Slide 23: 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 24: Topline – Expenses – Bottom Line
Topline – Expenses – Bottom Line Revenue + Other Income Expenses (D, A, R&D) Income $20,000,000 $15,000,000 Holding line $10,000,000 on Expenses while growing $5,000,000 the Topline $- 2012 2013 2014 2015 2016 2017 2018 1H2019 -$5,000,000 -$10,000,000 24 TSX.V: FLY OTCQX: FLYLF
Slide 25: 2018 Geographical Revenue
2018 Geographical Revenue > 2,500 units shipped Europe and/or installed North America 5.7% Middle East 43.7% $770,574 $5,935,692 13.2% > 2 million flights and $1,794,439 Asia > 3 million hours of 23.5% voice and data services Africa $3,194,342 generating SaaS revenues 4.3% from Uptime Server Central
Slide 26: 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 27: Investment Highlights
Investment Highlights 20-year proven track record Robust SaaS recurring revenue gross margins of 70-85% • 3+ million flight hours and 2+ million flights using AFIRS • Five-year customer contracts • 80+ customers…and growing • 100% retention for going concerns • 2,500+ shipments and growing rapidly M
Slide 28: Leadership Team
Leadership Team Industry Veterans Tom Derek Alana Schmutz Graham Forbes CEO CTO CFO Matieu Jeff Plamondon Rex COO VP Sales and Marketing 28 TSX.V: FLY OTCQX: FLYLF
Slide 29: Board Members for 2019
Board Members for 2019 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 I
Slide 30: 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 30 30 TSX.V: FLY OTCQX: FLYLF
Slide 31: 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 647-203-8793 deborah@adelaidecapital.ca Gateway Investor 1-403-250-9
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