FLYHT Aerospace Solutions — Investor Presentation (June 2022)
20 slides from FLYHT Aerospace Solutions's investor presentation, June 2022
Slide 1: Q1 2022 Vision: To Be The Global Force In Innovative Data Solutions
Q1 2022 VISION: TO BE THE GLOBAL FORCE IN INNOVATIVE DATA SOLUTIONS
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: Biggest Opportunity For FLYHT In Decades: A Shift In Aviation Driven By 5G Demand
Biggest Opportunity For FLYHT In Decades: A Shift In Aviation Driven By 5G Demand “As we speak, a massive digital revolution is sweeping across the global airline industry, touching every aspect of an airline’s business, and especially operations. FLYHT has been active in this space for over 20 year
Slide 4: Who Is FLYHT?
Who Is FLYHT? ▪ 20-year aviation solutions provider to both airlines and aircraft OEMs ▪ We provide: – Airborne hardware (AFIRS 228 & Edge for Actionable Intelligence and SATCOM comms, WVSS-II and TAMDAR for weather), and – SaaS services (Aircraft health monitoring, APU management, fuel management,
Slide 5: FLYHT Is Doing Extremely Well While We Wait For The Shift To 5G
FLYHT Is Doing Extremely Well While We Wait For The Shift To 5G ▪ While airlines adjust to this new operating environment, we: – Just closed our largest order in history, >$7 million @ 86% margin – Are seeing AFIRs 228 hardware ramping as aircraft production ramps – Are working on closing our larges
Slide 6: Edge – FLYHT's Biggest Opportunity In Years
Edge – FLYHT’s Biggest Opportunity In 20 Years ▪ Expect to grow revenues from $11.3m in 2021 to $24.0m in 2022E ▪ On top of this, the Edge device is expected to be a significant contributor to revenue growth in 2023E as it an incremental revenue opportunity ▪ Total addressable market (TAM) is ~$1.1B
Slide 7: Edge Devices
Edge Devices ▪ Device was developed in anticipation of 5G/Certus adoption: 2G/3G being discontinued now, 4G soon after, carriers looking to 5G upgrade or accommodate Iridium Block 1 to Certus ▪ Edge is: – 5G/Certus capable, and – can run all FLYHT software plus many third-party applications (SaaS re
Slide 8: Edge Opportunity
Edge Opportunity ▪ Right product, right time ▪ Addressable market is large: – SITA installed base - 18,000 aircraft, 400+ airline customers – Total addressable market (TAM) – 25,000 aircraft – Since FLYHT is partnered with SITA we expect to win more than 20% penetration: ▪ ~$170m hardware, ~$13.5m p
Slide 9: Why We Are Going To Win
Why We Are Going To Win ▪ Edge device is competitively positioned: – Is “first to market” to meet regulatory change requirements – Is plug compatible with largest incumbent – Has its largest competitor’s patents expired, not a core focus – Provides increased functionality over all competitors ▪ New
Slide 10: During The Pandemic We Positioned Ourselves
During The Pandemic We Positioned Ourselves ▪ Spent two years refocusing and rebuilding: – New hardware (developed Edge device) – Increased focus on recurring revenue vs one-time hardware (continued to develop/enhance several SaaS services) – New solutions (CO2 focus) – Reduced costs/burn ▪ Closed 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: − Edge device enables airlines to transition to 5G (mandated change), and/or − move from Iridium Block 1 to Certus ▪ Environmental pressures – Edge device he
Slide 12: Conclusions
Conclusions ▪ Massive digital evolution – Edge facilitates FLYHT’s participation in 2023 ▪ Large aviation related market driven by regulatory changes ▪ Right product at right price point with sophisticated sales channel partners ▪ SaaS revenue component to grow rapidly with Edge device deployment an
Slide 13: FLYHT's Operating Model
FLYHT’s Operating Model Globally Diversified Business Recurring Revenue and SaaS 20211 20222 North America 57% 50% SaaS 53% 80% Hardware 30% Recurring Europe 3% 30% SaaS Licensing 14% Technical 3% Services Rest of World 40% 20% 65% SaaS Gross Margins 1. Percent of LTM revenue 2. With CrossConsense
Slide 14: Industry Needs More Action
Industry Needs More Action “I am removing delay codes which have existed “I don’t want another report, dashboard, email … We forever because the ‘somebody gets blamed’ need to change the actions to prevent the cost, not culture does nothing to focus on doing the right find out about it later.” thing
Slide 15: Maintenance System Expertise And European Base
Maintenance System Expertise And European Base The two key ingredients required to build and run superior predictive and prescriptive maintenance models are Aligning two complementary providers of data and analytics solutions to aviation maintenance records and real-time aircraft data industry with
Slide 16: Partnering With Industry Leaders: SITA
Partnering With Industry Leaders: SITA Air transport communications and information technology ▪ Iridium Certus engagement with SITA ▪ FLYHT to resell SITA's AIRCOM® Cockpit Services ▪ Aligns sales endeavors and enables FLYHT to provide inflight satellite internet connectivity to AFIRS Edge customer
Slide 17: Successful Cloud Journey With AWS
Successful Cloud Journey With AWS AWS partner network opportunities ▪ Partnership recognizes the strength of FLYHT’s technology solutions ▪ Provides access and introductions to other AWS partners to build solutions ▪ Joint marketing to thousands of customers ▪ Formal approach to data management and
Slide 18: 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 Select ESG Program* ▪ Specialty fuel reporting ▪ CORSIA expertise and reporting Targeting reduction in emissions by eliminating non-essenti
Slide 19: 30,000 Foot View Of FLYHT
30,000 Foot View Of FLYHT 23 Years of Commercial Aviation Experience $$$ ~ $14mm $25mm 45% >65% LTM Revenue Backlog at Q1 2022 LTM SaaS Revenue SaaS as % of Total Gross Margins 95% 800% >3.1mm >4.7mm Retention Rate* Customer ROI++ Flights Hours of Voice and Data (80 Worldwide Airline Customers) Serv
Slide 20: Contact
Matt Chesler, IR 646.809.2183 mchesler@flyht.com Kent Jacobs, President 403.444.7710 kjacobs@flyht.com Alana Forbes, CFO 403.291.7437 aforbes@flyht.com
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