FLYHT Aerospace Solutions — Investor Presentation (May 2019)
30 slides from FLYHT Aerospace Solutions's investor presentation, May 2019
Slide 1: FLYHT Aerospace Solutions Ltd.
May 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: Capital Market Profile and Share Price
Capital Market Profile Share Price As of May 17, 2019 (all dollar figures are in Canadian dollars) 1.8 800000 Share Price $1.59 Market Capitalization $32.51M 1.6 700000 52-week low $0.94 1.4 52-week high $1.59 600000 Average Daily Volume 22,069 1.2 500000 Share Structure 1 As of April 17, 2019 40000
Slide 4: FLYHT: Leading Provider of Real-Time Aircraft Data Streaming Technology
FLYHT: Leading Provider of Data-based services include: Real-Time Aircraft Data • • Enhanced global flight tracking Event triggered flight data recorder (FDR) streaming Streaming Technology • Two-way text messages (iPad, MCDU) • Real-time proactive aircraft health monitoring solutions • Fuel managem
Slide 5: Leadership Team
Leadership Team: Industry Veterans Tom Derek Alana Schmutz Graham Forbes CEO CTO CFO Matieu Jeff Plamondon Rex COO VP Sales and Marketing 5 TSX.V: FLY OTCQX: FLYLF
Slide 6: 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 Jack Olcott Viking Fleet Advisors; Software Entrepreneur former President Marlin Ventures National Busin
Slide 7: 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 8: Unique, Value-Added Services FLYHT Upsells (SaaS)
Unique, Value-Added Services FLYHT Upsells (SaaS) • Saves Aircraft Operators Money • Streamlines their operations • Enhances Weather Operational ✓ TAMDAR Safety 8 TSX.V: FLY OTCQX: FLYLF
Slide 9: Customer Specific Reporting (FLYHTHealth)
Customer Specific Reporting (FLYHTHealth) “A one percent increase in on-time performance equates to several hundreds of thousands of dollars per year savings for a 50 aircraft operation” Fuel Door State Landing Gear Report Warning Report Battery Status Report Fuel Door Warning Reports APU Usage Repo
Slide 10: AFIRS – Competitive Advantages
AFIRS – Competitive Advantages Other Tracking QAR/Health FLYHT Feature Satcom OEM Solutions Monitoring ✓ ✓ ✓ Global Voice Coms ✓ ✓ FANS/Safety Services ✓ ✓ ACARS over Iridium ✓ ✓ ✓ QAR ✓ ✓ ✓ Aircraft Health Monitoring (Trends & exceedances – engine / airframe) ✓ ✓ ICAO: Global Flight Tracking ✓ ✓ Au
Slide 11: Customer Successes: Flexible Solution
Customer Successes: Flexible Solution Solution Savings FLYHTHealth alerted customer to engine Replacement cost for the engine: $5.2 million exceedance High engine vibration Repair cost based on AFIRS-driven data: $780k • Customer was able to take the aircraft out Net Savings > $4 million of service
Slide 12: Milestones since last AGM
Milestones since last AGM Mar 2018 Apr 2018 May 2018 May 2018 2 Million 3 Million Uptime Canadian patent for FLYHT’s selection as Inmarsat’s inaugural Aviation Uptime Flights Flight Hours FLYHTStream™ Certified Application Provider (CAP) for Imarsat’s new SwiftBroadband-Safety services Aug 2018 Sept
Slide 13: 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 TAMDAR sensor installed on 2004 commercial aircraft for high-resolution • 27 atmospheric scientists, we
Slide 14: Creating a Better Weather Forecast
Creating a Better Weather Forecast TAMDAR Equipped Iridium Global Satellite Data Quality Assurance, Commercial Aircraft Communication System Filtering, and Processing Government / Partner Data Assimilation & Weather Modeling 14 TSX.V: FLY OTCQX: FLYLF
Slide 15: TAMDAR: State-of-the-Art Weather Data Acquisition
TAMDAR: State-of-the-Art Weather Data Acquisition Weather Balloons TAMDAR • 70-year old technology • Patented TAMDAR atmospheric sensor • 800 locations around the globe • 200+ aircraft in North America, Asia, and Europe • 2x daily soundings (12 hours apart) • Frequent soundings & continuous observat
Slide 16: 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: lat/lon, altitude, time 16 TSX.V: FLY OTCQX:
Slide 17: The TAMDAR Difference
The TAMDAR Difference Forecast with TAMDAR Radar of Actual Event 72 hour forecast with / without TAMDAR Data versus actual weather USD $2 Million / year contract with NOAA Forecast without TAMDAR 17 17 TSX.V: FLY OTCQX: FLYLF
Slide 18: AirMap
AirMapTM 18 TSX.V: FLY OTCQX: FLYLF
Slide 19: Boeing ecoDemonstrator Program
Boeing ecoDemonstrator Program Boeing initiative focused on accelerating the testing, refinement, and completion of new ✓ Five trials over seven years technologies. ✓ 2018 Program: 2018 ecoDemonstrator Flight Data Streaming • Fedex B777 Freighter Trials: a collaboration between Boeing, Embraer, • 37
Slide 20: Boeing ecoDemonstrator – Joint Conclusion
Boeing ecoDemonstrator – Core Findings Joint Conclusion • Current equipment supports ICAO 10054 FDR and CVR streaming requirements (Boeing, Embraer, FLYHT) • Inmarsat SwiftBroadband capabilities exceed bandwidth requirements to stream real-time and historical FDR and CVR data Whitepaper jointly pres
Slide 21: Boeing ecoDemonstrator Recreating the Pilot's Experience: 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! 21 TSX.V: FLY OTCQX: FLYLF
Slide 22: Streaming Black Box Data in Real-time via Inmarsat
Boeing ecoDemonstrator Streaming Black Box Data in Real-time via Inmarsat 22 TSX.V: FLY OTCQX: FLYLF
Slide 23: Inmarsat Trial – Pre-trial Phase
Inmarsat Trial – Pre-trial Phase FLYHT: the first recipient of “Inmarsat Certified Application Provider” status (May 2018) AFIRS will send data to UpTime Cloud via Inmarsat to test “Black Box in the Cloud” capability 23 TSX.V: FLY OTCQX: FLYLF
Slide 24: Revenue and Other Income
Revenue and Other Income Overall Gross Margins 75% 69.3% 68.4% 70% 66.9% Current Backlog of > $60M 65% 62.9% 59.2% 59.3% 60% 55% Annual Revenues and Other Income 50% $20,000,000 2013 2014 2015 2016 2017 2018 $17,554,357 $18,000,000 SaaS Quarterly Revenue $15,451,566 $16,000,000 $13,694,888 $14,000,0
Slide 25: Revenue and Other Income, Annual Source
Revenue and Other Income, Annual Source Other Income 13.4% 2018: 0.0% 18.4% $ 15,749,752 SaaS 34.0% 31.5% 2017: 24.9% $ 13,699,542 Hardware 36.6% 39.8% 24.4% 2016: 14.4% $ 17,554,357 Licensing 27.4% 31.1% 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% 201
Slide 26: May 2018 TSX.V: FLY OTCQX: FLYLF
TSX.V: FLY May 2018 OTCQX: FLYLF
Slide 27: Holding Line on Expenses while growing the Topline
Holding Line on Expenses while growing the Topline TSX.V: FLY May 2018 OTCQX: FLYLF
Slide 28: 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 • 2,200+ shipments and growing rapidly M
Slide 29: 2018 Geographical Revenue
2018 Geographical Revenue 2,200 AFIRS shipped and/or installed units, all channels Europe North America 5.7% 2 million flights and Middle East 43.7% $770,574 3 million hours of in- $5,935,692 13.2% service use on $1,794,439 Uptime server Asia providing SaaS Africa 23.5% subscription voice $3,194,342
Slide 30: FLYHT Aerospace Solutions Ltd.
TSX.V: FLY OTCQX: FLYLF FLYHT Aerospace Solutions Ltd. Investor US Investor Contacts 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-
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