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FLYHT Aerospace Solutions Ltd. TSX.V: FLY
OTCQX: FLYLF
July 2016
2July 2016
TSX.V: FLY
OTCQX: FLYLF
DisclaimerForward 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 limitation, those regarding the Company’s financial position, business strategy, projected costs, future plans, projected revenues, objectives of management for future operations, the Company’s ability to meet any repayment obligations, the use of non-GAAP financial measures, trends in the airline industry, the global financial outlook, expanding markets, research and development of next generation products and any government assistance in financing such developments, foreign exchange rate outlooks, new revenue streams and sales projections, cost increases as related to marketing, research and development (including AFIRS 228), administration expenses, and litigation matters, may be or include forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on a number of reasonable assumptions regarding the Canadian, U.S., and global economic environments, local and foreign government policies/regulations and actions and assumptions made based upon discussions to date with the Company’s customers and advisers, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include production rates, timing for product deliveries and installations, Canadian, U.S., and foreign government activities, volatility of the aviation market for the Company’s products and services, factors that result in significant and prolonged disruption of air travel worldwide, U.S. military activity, market prices, foreign exchange rates, continued availability of capital and financing and general economic, market, or business conditions in the aviation industry, worldwide political stability or any effect those may have on our customer base. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.
Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to have been correct. The Company cannot assure investors that actual results will be consistent with any forward-looking statements; accordingly, readers should not place undue reliance on forward‑looking statements. The forward-looking statements contained herein are current only as of the date of this document. The Company disclaims any intentions or obligation to update or revise any forward-looking statements or comments as a result of any new information, future event or otherwise, unless such disclosure is required by law.
www.flyht.com
3July 2016
TSX.V: FLY
OTCQX: FLYLF
The “New” FLYHT – Not the same story
• New management in key positions (CEO, CFO, VP Sales)• Enhanced BOD with industry veterans• Experienced sales team generating interest• OEM & operator acceptance of FLYHT’s solution• Over 1100 shipments and/or installations and growing rapidly• Revenues accelerating – Record setting quarters in 2015 & 2016• AFIRS product completed with industry leading TSO for Safety
Services (TSO-C159b)• Strong pipeline of major opportunities
Automated Flight Information Reporting System - AFIRSTM
4July 2016
TSX.V: FLY
OTCQX: FLYLF
•Thomas R. Schmutz - CEO, previously at L-3 Communications •Nola Heale - CFO, various public companies•David Perez - VP Sales & Marketing, previously at Hewlett-Packard •Mat Plamondon - VP Operations & Customer Fulfillment
New Leadership
5July 2016
TSX.V: FLY
OTCQX: FLYLF
• Barry Eccleston, President of Airbus Americas, Inc. • John Belcher, former Chairman and CEO of ARINC•Mark Rosenker, former Chairman of the National Transportation Safety Board
Influential Board Members
6July 2016
TSX.V: FLY
OTCQX: FLYLF
Record Quarterly Revenues
Record revenue in the past five quarters
7July 2016
TSX.V: FLY
OTCQX: FLYLF
Financial Highlights
8July 2016
TSX.V: FLY
OTCQX: FLYLF
Continued Growth of Recurring Revenue
9July 2016
TSX.V: FLY
OTCQX: FLYLF
Recent Successes
• $5 million equity raise in Q2 2016 - oversubscribed• Receipt of proceeds on the sale of IP License - $2.5 M USD
• Growth of sales in China and building relationships
• 5 Airlines in 2015; 2 in Q1 2016; 1 in Q2
• Signed 146 aircraft fleet – Avmax Aviation Services Inc. (Canadian Leasing Company)
• Significant interest by large aircraft OEMs• Engine manufacturers
• Business jet manufacturers
• Factory option on Bombardier CRJ• Factory option on Airbus A320 and A330
10July 2016
TSX.V: FLY
OTCQX: FLYLF
Investment Highlights• Multiple revenue streams: initial hardware installation sales
and then recurring revenue • Robust recurring revenue gross margins of 75-85%• Five-year customer contracts renew at expiry• Greater than 2.2 million flight hours using AFIRS; and shipped
and/or installed over 1100 units worldwide• Certified on 95% of all aircraft used for commercial air transport;
significant barrier to entry• Agreements in place with two global OEMs
11July 2016
TSX.V: FLY
OTCQX: FLYLF
The Solution – More Than Tracking
12July 2016
TSX.V: FLY
OTCQX: FLYLF
AFIRS™ - Core Products FLYHTLog FLYHTASD FLYHTHealt
hFLYHTMai
lFLYHTStrea
m
•Global flight tracking
•OOOI•Historical data•Geo fencing•Unusual manoeuvers
•Alerts•Notifications
•Interactive map
•Global flight tracking
•OOOI•Weather•Alerts•Notifications
•Engine trending
•Engine exceedance
•Airframe exceedances
•Text messaging
•MCDU/iPad
•Live black box streaming
• Technology provides real-time aircraft situational information • Improves maintenance and aircraft operations to save money
13July 2016
TSX.V: FLY
OTCQX: FLYLF
End-to-End Solution
14July 2016
TSX.V: FLY
OTCQX: FLYLF
Revenues Based on Location
• Over 1100 shipped and/or installed units• 1.5 million flights and 2.2 million hours of in-service use
15July 2016
TSX.V: FLY
OTCQX: FLYLF
• Ten years focused on small airlines in remote locations• OEM position is creating opportunities worldwide• Pursuing additional OEM opportunities
• Factory fit option on DHC-8 is imminent
• Direct sale opportunities also include:• Non-ACARS• Regional A/C• Need additional IT capabilities• China Satcom Mandate • Move from opportunistic Tier 1 bid approach to Tier 1 strategy
Market Focus
16July 2016
TSX.V: FLY
OTCQX: FLYLF
Competitive Advantages
Feature FLYHT Other Satcom
OEM
Tracking Solutions
QAR/Health
Monitoring
Global voice coms X X X FANS/Safety Services X X ACARS over Iridium X X QAR X X XAircraft health monitoring (Trends & exceedances - engine/airframe)
X X X
ICAO:Global flight tracking X X Autonomous distress tracking X Live black box streaming X Real-time systems diagnostics X TSO C-159A (Voice and Data) XSTCs supporting 95% of air transport aircraft
X
17July 2016
TSX.V: FLY
OTCQX: FLYLF
Capital Market Profile At June 30, 2016
Share Price $0.19
Market Capitalization $39.4 million
52 week low $0.16 - high $0.245
Shares 207,393,766
Share Structure **Management, Directors and Officers
Fully Diluted 237,451,040Institutional Ownership % Approx. 40.0%
Insider Holdings** 4.5%
2011 2012 2013 2014 2015
Revenue $5.5 $6.5 $8.0 $6.9 $10.5
R&D Expenditures $3.3 $2.4 $2.1 $0.8 $2.8
Net Loss $6.5 $4.9 $4.1 $4.3 $3.9
Financial Results Snapshot – ($millions)
