FLYHT Aerospace Solutions — Investor Presentation (April 2020)
27 slides from FLYHT Aerospace Solutions's investor presentation, April 2020
Slide 1: FLYHT Aerospace Solutions Ltd.
April 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: 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. ~ $52 Million Backlog • Our solutions >$21 Million Strong Regulatory • Save Aircraft Operators Money 2019 Revenue Tailwinds • Streamline Their Operations • Enhance Operational Safety Accelerating SaaS revenues 48% 2019
Slide 4: 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 (~2,800) FLYHT Units Providing SaaS (~590) 10 TSX.V: FLY OTCQX: FLYLF
Slide 11: WestJet Contract
WestJet Contract US$6.2 million contract to install AFIRS units on its entire Boeing 737 fleet of >160 aircraft. This contract includes: ✓ Satcom Hardware, enabling: ✓ Satcom Air Traffic Control data safety services ✓ FANS datalink allowing pilots and ATC to communicate directly using digital text t
Slide 12: 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 12 TSX.V:
Slide 13: 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 13 13 TSX.V: FLY OTCQX: FLYLF
Slide 14: 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 15: 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! 15 TSX.V: FLY OTCQX: FLYLF
Slide 16: 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 17: COVID-19 Response
COVID-19 Response To preserve FLYHT’s liquidity through this period Additionally, FLYHT has of commercial aviation uncertainty, the Company is undertaking the following measures: opted to temporarily license complimentary • Instituting a company-wide travel ban to protect employees and reduce associ
Slide 18: Capital Market Profile
Capital Market Profile Share Price Share Price $1.63 As of April 13, 2020 (all dollar figures are in Canadian dollars) Market Capitalization $33,708,085 2 300000 Share Price 52-week low $0.65 $0.94 1.8 Market 52-weekCapitalization high $17.3 $1.90 250000 1.6 52-week low Volume Average Daily $0.51 13
Slide 19: Revenue and Gross Margins
Revenue and Gross Margins Current Backlog of ~ $52M 19 TSX.V: FLY OTCQX: FLYLF
Slide 20: SaaS Quarterly Revenue
SaaS Quarterly Revenue $3,250,000 $2,750,000 $2,250,000 $1,750,000 $1,250,000 $750,000 Q4 2017 Q12018 Q22018 Q32018 Q42018 Q12019 Q22019 Q32019 Q42019 20 TSX.V: FLY OTCQX: FLYLF
Slide 21: Revenue – Expenses – EBITDA
Revenue – Expenses – EBITDA Holding line on Expenses while growing the Topline 21 TSX.V: FLY OTCQX: FLYLF
Slide 22: 2019 Geographical Revenue
2019 Geographical Revenue Canada 7.6% Currently: $1,612,114 Europe China ~ 2,800 units shipped 2.3% 15.8% Middle East and/or installed $489,629 $3,360,888 9.4% ~ 2.7 million flights and US + Mexico $1,999,975 Asia ~ 4 million hours of voice 22.1% 19.5% $4,665,822 Africa and data services generating
Slide 23: 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 24: 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 • ~ 2,800 shipments and growing rapid
Slide 25: Leadership Team
Leadership Team Industry Veterans Tom Derek Alana Schmutz Graham Forbes CEO CTO CFO Matieu Derek Plamondon Taylor COO VP Sales and Marketing 25 TSX.V: FLY OTCQX: FLYLF
Slide 26: 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 27: FLYHT Aerospace Solutions Ltd.
TSX.V: FLY OTCQX: FLYLF FLYHT Aerospace Solutions Ltd. Investor Contact Relations Deborah Honig 300E, 1144 – 29th Adelaide Capital Avenue NE, Calgary, AB, T2E 7P1, Canada 1-647-203-8793 deborah@adcap.ca 1-403-250-9956 www.flyht.com 27 TSX.V: FLY OTCQX: FLYLF
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