FLYHT Aerospace Solutions — Investor Presentation (May 2023)
16 slides from FLYHT Aerospace Solutions's investor presentation, May 2023
Slide 1: May 2023
May 2023 VISION: TO BE A GLOBAL FORCE IN INNOVATIVE DATA SOLUTIONS MISSION: LEAVE NO DATA STRANDED; LEAVE NO ACTION INCOMPLETE
Slide 2: Disclaimers: Forward Looking Statements
DISCLAIMERS FORWARD LOOKING STATEMENTS This discussion includes certain statements that may be deemed Canadian, U.S., and foreign government activities, volatility of the “forward-looking statements” that are subject to risks and aviation market for the Company’s products and services, factors uncer
Slide 3: FLYHT is a Global Leader in the Aerospace Industry
FLYHT is a Global Leader in the Aerospace Industry Founded | 1998 Capitalization Table Price ($C) $0.94 Insider Ownership Shares o/s (M, Bsc) 38.807 Shares (M) 1.895 IPO | TSXV March 2003; OTCQX June 2014 Stock Options (M) 1.735 Percent 4.9% Warrants (M) - Institutional Ownership HQ | Calgary, Alber
Slide 4: 24 Years of Commercial Aviation Experience
24 Years of Commercial Aviation Experience $$$ ~ $24M $19M 38% >60% LTM Revenue Backlog at Q4 2022 LTM SaaS Revenue SaaS as % of Total Gross Margins >4,000 AFIRS installations 95%* ~$77M >100 5.0M** Retention Rate Pipe of Opportunity Supplemental Type Certificates Hours of Voice and Data (100+ World
Slide 5: Macro Trends Serving as Catalysts for FLYHT
Macro Trends Serving as Catalysts for FLYHT Technology Obsolescence Real-Time Visibility of Environmental 2G/3G to 5G Operations Imperatives There are ~25,000 aircraft that will Need for real-time data to support Need for new solutions to meet Net lose connectivity as 3G and LTE decision making and
Slide 6: The AFIRS Edge: FLYHT's Biggest Opportunity in 20 Years
The AFIRS Edge: FLYHT’s Biggest Opportunity in 20 Years Right Product, Right Time AFIRS Edge platform is competitively positioned • Is “first to market” to meet industry driven technology changes • Is plug-in compatible with largest incumbent • Largest competitor’s patents expired, not a core focus
Slide 7: Actionable Intelligence Solutions: Optimize Aircraft & Ground Infrastructure
Actionable Intelligence Solutions: Optimize Aircraft & Ground Infrastructure Airborne eWQAR eAID ACARS ADL+ Edge SatCom ACMS Edge over IP Server ELA Security AFIRS Gateway Services • Automated Data Distribution to FDM / FOQA Ground • AFIRS Device Management and Health Monitoring • Actionable Intelli
Slide 8: Environmental Services Becoming Increasingly Important to SaaS Model
Environmental Services Becoming Increasingly Important to SaaS Model FLYHT's WVSS-II water vapour sensor system, when installed with an AFIRS Edge or AFIRS 228, plays an important role in Aircraft Based Observations (ABOs) for meteorologists and airlines, providing crucial weather monitoring data Re
Slide 9: Helping Aviation Industry Achieve Net Zero By 2050
Helping Aviation Industry Achieve Net Zero By 2050 Support for Airline and Industry Environmental Initiatives ▪ Real-time weather observations ▪ Contrail awareness and avoidance ▪ Aircraft health monitoring ▪ Specialty fuel reporting ▪ CORSIA reporting
Slide 10: Large TAM and Pipeline of Opportunity
Large TAM and Pipeline of Opportunity Hardware TAM (C$M) Edge addressable market (TAM) = 25,000 aircraft ▪ Expect to win ~20% penetration in $750M Hardware TAM and $3.0B lifetime SaaS: - Equates to ~$150M hardware, ~$600M lifetime SaaS - $6k annual SaaS revenues would be over life of aircraft ~20 ye
Slide 11: Significant Potential for AFIRS Edge & Weather Products
Significant Potential for AFIRS Edge & Weather Products Annual AFIRS Edge & Weather SaaS Revenue Growth to 20% of TAM products SaaS potential ▪ Assumes 500 AFIRS 228/Edge shipments in 2024, growing to 1,600 in 2028 ▪ 5,000 cumulative installs from 2024 to 2028 represents 20% market share ▪ Range fro
Slide 12: FLYHT's Operating Model: Hardware Drives SaaS
FLYHT’s Operating Model: Hardware Drives SaaS Significant opportunities: sales pipeline ~$77M Working on closing our largest weather order (30 aircraft) SaaS revenue rebounding to pre- pandemic levels, representing 51% of total revenue as of Q1 2023
Slide 13: Developing SaaS Business is Driving Gross Margins
Developing SaaS Business is Driving Gross Margins FLYHT Revenue FLYHT Gross Margins Double Digit SaaS Growth % Pre-Covid SaaS to Drive Gross Margins $ in millions * Other revenue streams include Hardware, Licensing and Technical Services Note: FLYHT acquired assets of Panasonic Weather Solutions in
Slide 14: Experienced Leadership Team That Understands Aviation Industry Needs
Experienced Leadership Team That Understands Aviation Industry Needs Board of Directors Management Mary I. McMillan Chairman Kent Jacobs Alana Forbes President & Interim CEO Chief Financial Officer Willie Cecil Director, Aircraft Data & Brent Paul Doug Mike Joined FLYHT Edge Solutions Rosenthal Taka
Slide 15: Investment Thesis
Investment Thesis TAM FLYHT extremely well positioned to capture meaningful share of $750M Hardware TAM and $3.0B lifetime SaaS WVSS TAM $2-3M/year per agency 3G/LTE obsolescence provides significant opportunity First Mover Advantage Right product, right features, experienced sales team SaaS Revenue
Slide 16: Thank you
Thank you Kent Jacobs, Interim CEO 403.444.7710 kjacobs@flyht.com Alana Forbes, CFO 403.291.7437 aforbes@flyht.com Daniel Kim, Corp Dev 416.728.5630 dkim@flyht.com Matt Chesler, CFA, IR 646.809.2183 mchesler@flyht.com
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