FLYHT Aerospace Solutions — Investor Presentation (September 2019)
27 slides from FLYHT Aerospace Solutions's investor presentation, September 2019
Slide 1: FLYHT Aerospace Solutions Ltd.
SEPTEMBER 2019 FLYHT Aerospace Solutions Ltd. TSX.V: FLY OTCQX: FLYLF 1 TSX.V: FLY OTCQX: FLYLF
Slide 2: Disclaimer
Disclaimer 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 limitat
Slide 3: FLYHT – We help customers understand not just where their aircraft is, but how it is
FLYHT – We help customers understand not just where their aircraft is, but how it is. • Our solutions > $54 Million Backlog $18.8 Million • Save Aircraft Operators Money TTM Revenue • Streamline Their Operations Strong Regulatory Tailwinds • Enhance Operational Safety Accelerating SaaS revenues 70%
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
Global Industry Drivers: UN: ICAO’s Annex 6: Operation of Aircraft Amendment 39 – November 2018 • Normal Aircraft Tracking: 15 minute intervals Amendment 40 – January 2021 • Autonomous Distress Tracking: 1 minute intervals • Timely Access to Flight Recorder Data: recovered & available Patent issued
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 (2,500) FLYHT Units Providing SaaS (550) 10 TSX.V: FLY OTCQX: FLYLF
Slide 11: 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 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: Boeing ecoDemonstrator – Joint Conclusion
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 14: Boeing ecoDemonstrator
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! 14 TSX.V: FLY OTCQX: FLYLF
Slide 15: Boeing ecoDemonstrator
Boeing ecoDemonstrator Streaming Black Box Data in Real-time via Inmarsat 15 TSX.V: FLY OTCQX: FLYLF
Slide 16: AFIRS – Competitive Advantages
AFIRS – Competitive Advantages Other Tracking QAR/Health FLYHT Feature Satcom OEM Solutions Monitoring ✓ ✓ ✓ Global Voice Communications ✓ ✓ FANS/Safety Services ✓ ✓ ACARS over Iridium ✓ ✓ ✓ QAR ✓ ✓ ✓ Aircraft Health Monitoring (Trends & exceedances – engine/airframe) ✓ ✓ ICAO: Global Flight Trackin
Slide 17: Capital Market Profile
Capital Market Profile Share Price Share Price $1.63 As of September 6, 2019 (all dollar figures are in Canadian dollars) Market Capitalization $33,708,085 2 180000 Share Price 52-week low $1.46 $0.94 1.8 160000 Market 52-weekCapitalization high $30,192,518 $1.90 1.6 52-week low Volume Average Daily
Slide 18: Revenue and Gross Margins
Revenue and Gross Margins Current Backlog of > $54M 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 19: SaaS Quarterly Revenue
SaaS Quarterly Revenue 19 TSX.V: FLY OTCQX: FLYLF
Slide 20: 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 21: 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 21 TSX.V: FLY OTCQX: FLYLF
Slide 22: 2018 Geographical Revenue
2018 Geographical Revenue 2,200 AFIRS units Europe shipped and/or installed North America 5.7% Middle East 43.7% $770,574 $5,935,692 13.2% 2+ million flights $1,794,439 Asia 23.5% Africa 3+ million hours of $3,194,342 voice and data services 4.3% Central & $588,473 Australasia generating SaaS revenu
Slide 23: 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 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 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 26: 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 26 26 TSX.V: FLY OTCQX: FLYLF
Slide 27: 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
FLYHT Aerospace Solutions — Investor Presentation (September 2019) on 6ix