FLYHT Aerospace Solutions — Investor Presentation (February 2023)
16 slides from FLYHT Aerospace Solutions's investor presentation, Feb 9, 2023
Slide 1: Vision: To Be a Global Force in Innovative Data Solutions
February 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) $1.05 Insider Ownership IPO | TSXV March 2003; OTCQX June 2014 Shares o/s (M, Bsc) Stock Options (M) 38.200 2.144 Shares (M) Percent 1.895 5.0% Warrants (M) - Institutional Ownership HQ | Calgary, Alber
Slide 4: FLYHT is a Global Leader in the Aerospace Industry (cont’d)
FLYHT is a Global Leader in the Aerospace Industry (cont’d) 24 Years of Commercial Aviation Experience $$$ ~ $19M $26M 39% >60% LTM Revenue Backlog at Q3 2022 LTM SaaS Revenue SaaS as % of Total Gross Margins 95% >$70M >100 >4.8M^ Retention Rate* Pipe of Opportunity Supplemental Type Certificates Ho
Slide 5: Change Catalysts
Change Catalysts Global Airline Recovery Patent Expiry from Incumbent Edge 5G Flagship Product & 3G Sunset - SaaS Expanding Partnerships & Explosive Pipe of Opportunity Accretive M&A Significant Hires
Slide 6: Aviation is Recovering from its Greatest Shock
Aviation is Recovering from its Greatest Shock Shift from cost saving to improving efficiency and profitability IATA forecasts total flights operated in 2022 to 33.8M (approx. 87% of 2019 levels). North America will be the strongest performing region, expected to deliver $8.8B profit in 2022. Indust
Slide 7: FLYHT is Thriving in Recovering Industry
FLYHT is Thriving in Recovering Industry While airlines adjust to this new operating environment: Closed our largest order in history, >$7M @ 84% margin AFIRS 228 and Edge ramping as aircraft production ramps (chart) Record revenue quarter: Q3/22 $6.7M, +112% Y/Y Source: Airbus Global Market Forecas
Slide 8: FLYHT’s Biggest Opportunity in Years: Right Product, Right Time
FLYHT’s Biggest Opportunity in 20 Years Right Product, Right Time AFIRS Edge platform is competitively positioned: • Is “first to market” to meet industry driven technology changes • Is plug-in compatible with largest incumbent • Largest competitor’s patents expired, not a core focus • Provides incr
Slide 9: AFIRS Edge | TAM and Channel
AFIRS Edge | TAM and Channel Hardware TAM (C$M) Total 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 years Sale
Slide 10: AFIRS Edge | TAM and Channel (cont’d)
AFIRS Edge | TAM and Channel (cont’d) Annual SaaS Potential: SaaS Revenue Growth to 20% of TAM • 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 from $6,000 to $8,400 SaaS per airframe per year T
Slide 11: Pandemic and Regulations Drive Changes
Pandemic and Regulations Drive Changes Coming out of the pandemic, airlines facing significant operating challenges Communications changes: − AFIRS Edge enables airlines to transition to 5G (compulsory industry change), and/or − move from Iridium Block 1 to Certus Environmental pressures – AFIRS Edg
Slide 12: ESG: Helping Aviation Industry Achieve Net Zero By 2050
ESG: Helping Aviation Industry Achieve Net Zero By 2050 FLYHT helps customers optimize their use of aircraft and ground infrastructure for efficiency and safety Real-time weather observations Contrail awareness and avoidance Aircraft health monitoring Specialty fuel reporting CORSIA report
Slide 13: FLYHT’s Operating Model
FLYHT’s Operating Model Globally Diversified Business Recurring Revenue and SaaS, as of Q3 2022 20211 20222 LTM Q3 2022 North America 57% 62% SaaS 39% 31% Hardware 21% 7% Europe/Africa 8% 19% Licensing 34% 53% Technical 6% 9% Services Rest of World 35% 19% 55-60% SaaS Gross Margins 1. Percent of ann
Slide 14: FLYHT’s Operating Model (cont’d)
FLYHT’s Operating Model (cont’d) Working on closing our largest weather order (30 aircraft) Significant opportunities: sales pipeline includes >15 prospects of $7M or greater 2022 consensus revenue estimated at ~$23.1M1 vs $11.3M in 2021 +104% YoY Source: (1) Consensus estimates
Slide 15: Conclusion
Conclusion TAM FLYHT extremely well positioned to capture meaningful share of $750M Hardware TAM and $3.0B lifetime SaaS Digital Evolution Edge facilitates FLYHT’s participation in 2023 Industry Large aviation related market driven by technological change First Mover Advantage Right product at right
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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