FLYHT Aerospace Solutions — Investor Presentation (March 2019)
31 slides from FLYHT Aerospace Solutions's investor presentation, March 2019
Slide 1: FLYHT Aerospace Solutions Ltd.
March 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
Capital Market Profile Share Price As of March 14, 2019 (all dollar figures are in Canadian dollars) 2 800000 Share Price $1.33 1.8 Market Capitalization $27,197,222 700000 52-week low $0.94 1.6 52-week high $1.73 600000 Average Daily Volume 11,210 1.4 1.2 500000 Share Structure As of March 8, 2019
Slide 4: FLYHT: Leading Provider of Real-Time Aircraft Data Streaming Technology
FLYHT: Leading Provider Data-based services include: of 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: Industry-Connected Board Members
Industry-Connected Board Members John Belcher Mike Brown Barry Eccleston former Chairman and CEO, Partner former President Airbus ARINC Geselbracht Brown LLP Americas, Inc. Nina Jonsson Jacques Kavafian Doug Marlin Viking Fleet Advisors; former Bay Street Analyst Software Entrepreneur Plane View Par
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: Iridium Global Voice & Data Communications System
• Enhanced Operational Safety Iridium Global Voice & Data • Enhanced Communications • Enhanced Situational Awareness Communications System • Enhanced Operational Performance • Lower Operating Costs 8 TSX.V: FLY OTCQX: FLYLF
Slide 9: Core Products
Core Products Iridium Enhanced Global Aircraft Health Fuel Weather FDR Streaming SATCOM Flight Tracking Monitoring Management Observations FLYHTVoice FLYHTLog FLYHTHealth FLYHTStream FLYHTFuel TAMDAR FLYHTMail FLYHTASD *Engine Trends *Exceedances ACARS over AirMap *Diagnostics Iridium Where FLYHT Un
Slide 10: 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 Report Landing Gear Warning Report Battery Status Report Fuel Door Warning Reports APU Usage Repo
Slide 11: AFIRS – Competitive Advantages
AFIRS – Competitive Advantages Other Satcom Tracking QAR/Health FLYHT Feature 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 12: 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 2004 • Patented TAMDAR sensor installed on • 27 atmospheric scientists, commercial aircraft for high-resolution me
Slide 13: 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 13 TSX.V: FLY OTCQX: FLYLF
Slide 14: State-of-the-Art Weather Data Acquisition
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 observations • H
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: lat/lon, altitude, time 15 TSX.V: FLY OTCQX:
Slide 16: 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 16 16 TSX.V: FLY OTCQX: FLYLF
Slide 17: Boeing ecoDemonstrator Program
Boeing ecoDemonstrator Program Boeing initiative focused on accelerating the testing, refinement, and completion of new technologies. ✓ Five trials over seven years ✓ 2018 Program: 2018 ecoDemonstrator Flight Data Streaming Trials: • Fedex B777 Freighter a collaboration between Boeing, Embraer, and
Slide 18: 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 Whitepaper jointly presented at AEEC and historical FDR
Slide 19: 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! 19 TSX.V: FLY OTCQX: FLYLF
Slide 20: Boeing ecoDemonstrator Streaming Black Box Data in Real-time via Inmarsat
Boeing ecoDemonstrator Streaming Black Box Data in Real-time via Inmarsat 20 TSX.V: FLY OTCQX: FLYLF
Slide 21: 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 21 TSX.V: FLY OTCQX: FLYLF
Slide 22: 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 of Net Savings > $4 million service
Slide 23: Financial Performance
Financial Performance Overall Gross Margins 75% 69.3% 68.4% 70% 65.90% Current Backlog of $60M 65% 62.9% 59.2% 60% 55% Annual Revenues 50% 2013 2014 2015 2016 2017 $16,000,000 $14,331,191 $14,018,750 $14,000,000 SaaS Monthly Revenue $12,000,000 $10,457,125 $10,000,000 $8,000,364 $8,000,000 $6,882,02
Slide 24: Revenue by Source
Revenue by Source 42.6% YTD 2018: AFIRS hardware 39.8% $ 9,556,690 34.2% 2017: SaaS 31.5% $ 14,018,750 21.1% Licensing 27.4% 2.1% Technical Services 1.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 24 TSX.V: FLY OTCQX: FLYLF
Slide 25: Investment Highlights
Investment Highlights 20-year proven track record • 3+ million flight hours and 2+ million flights using AFIRS Hardware sales with gross margin of 40-60% • 80+ customers…and growing • 2,200+ shipments and growing rapidly Major growth of sales in China Robust SaaS recurring revenue gross margins of 7
Slide 26: Geographical Revenue
Geographical Revenue 2,200 AFIRS shipped and/or installed Europe units, all channels North America 2.4% Middle East 2 million flights and 28.0% $333,152 3 million hours of in- $3,930,995 6.2% $873,546 service use on Asia Uptime server 22.1% Africa providing SaaS $3,092,593 subscription voice 5.5% Ce
Slide 27: FLYHT Aerospace Solutions Ltd.
TSX.V: FLY OTCQX: FLYLF FLYHT Aerospace Solutions Ltd. www.flyht.com investors@flyht.com 27 TSX.V: FLY OTCQX: FLYLF
Slide 28: Technical Terms
Technical Terms AEEC – Airline Electrical Engineering Committee AFIRS – Automated Flight Information Reporting System CAAC – China Civil Aviation Authority CCAR – China Civil Aviation Regulations GADSS – Global Aeronautical Distress and Safety System ICAO – International Civil Aviation Authority OEM
Slide 29: FLYHT Aerospace Solutions Ltd.
TSX.V: FLY OTCQX: FLYLF FLYHT Aerospace Solutions Ltd. Contacts Investor Relations 300E, 1144 – 29th Avenue NE, Deborah Honig Calgary, AB, T2E 7P1, Canada Adelaide Capital Markets 1-403-250-9956 647-203-8793 www.flyht.com deborah@adelaidecapital.ca 29 TSX.V: FLY OTCQX: FLYLF
Slide 30: Support Slides
Support Slides 30 TSX.V: TSX.V: FLY FLY OTCQX: OTCQX: FLYLF FLYLF
Slide 31: Milestones
Milestones Dec 2016 Mar 2017 Jun 2017 Awarded Civil Aviation Administration Launches UpTime Awarded Civil Aviation Administration of China Part-145 Approval Cloud Software of China Part-145 Approval Mar 2018 Apr 2018 May 2018 May 2018 2 Million 3 Million Uptime Canadian patent for FLYHT’s selection
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