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FLYHT Aerospace Solutions Ltd. TSX.V: FLY
OTCQX: FLYLF
April 2017
2TSX.V: FLYOTCQX: FLYLF April 2017
Disclaimer
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 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
3TSX.V: FLYOTCQX: FLYLF April 2017
The “New” FLYHT
• Record setting revenue in 2016; $14.3 million
• EBITDA Positive 2016 at $2.5M
• Consecutive profitable quarters (Q2, Q3, Q4 - 2016)
• Enhanced management & BOD with industry veterans
• Experienced sales team generating interest
• OEM & operator acceptance of FLYHT’s solution
• Over 1,600 shipments and growing rapidly
• Strong pipeline of major opportunities
Automated Flight Information Reporting System - AFIRSTM
4TSX.V: FLYOTCQX: FLYLF April 2017
Investment Highlights
• Multiple revenue streams• Initial hardware sales with gross margin of 40-60%
• Robust SAAS recurring revenue gross margins of 75-85%
• Licensing arrangement with OEM of close to 100% margin
• Five-year customer contracts renew at expiry
• Greater than 2.5 million flight hours and 1.6 million flights using AFIRS
• Certified on 95% of all aircraft used for commercial air transport; significant barrier to entry
• Agreements in place with two global OEMs
5TSX.V: FLYOTCQX: FLYLF April 2017
AFIRSTM – More Than Just Tracking
6TSX.V: FLYOTCQX: FLYLF April 2017
AFIRS & UpTime™ Core Products
IridiumSATCOM
EnhancedGlobal Flight Tracking
Aircraft Health Monitoring
FDR Streaming Fuel Management
FLYHTVoiceFLYHTMailACARS over Iridium
FLYHTLogFLYHTASD
FLYHTHealth FLYHTStream FLYHTFuel
• Technology provides real-time aircraft situational information
• Improves maintenance and aircraft operations to save money
• Enhances operational safety
7TSX.V: FLYOTCQX: FLYLF April 2017
Real-time Data Streaming
• Timely access to Flight Data Recorder (FDR) data
• Leading the industry with real-time FDR (black box) streaming technology
• Technology raises the standard of tracking and automated alerting
• Customizable triggers for streaming, frequency of flight following reports and selectable data that is streamed to the ground
8TSX.V: FLYOTCQX: FLYLF
FLYHTASD – Aircraft Situational Display
9TSX.V: FLYOTCQX: FLYLF April 2017
Customer Success Stories
• AFIRS alerted an airline customer to a high engine vibration• Customer was able to take the aircraft out of service to diagnose and fix
the issue• The replacement cost for the engine: $5.2 million• The repair cost based on AFIRS-driven data: $780 thousand• Savings: Over $4 Million
• FLYHT created geo-fencing in its software to alert an airline customer when the aircraft entered or exited specific boundaries
• Kept all parties advised, in real time, on the progress of each flight• Improved customer satisfaction • Reduced costs for the airline associated with poor communication and
logistical support issues
10TSX.V: FLYOTCQX: FLYLF April 2017
AFIRS - Competitive Advantages
11TSX.V: FLYOTCQX: FLYLF April 2017
Recent Successes
• Booked $5.7 million in AFIRS sales in Q1 2017 – More than half of 2016
• Booked $1.5 Million in Parts Sales in Q1 2017
• Launched UpTime™ Cloud Service Platform
• Record revenue in 2016 of $14.3M; Positive EBITDA $2.5 Million
• Repayment of $5.6 million in matured debentures in 2016
• Received a $2.3 M interest-free government loan in 2016
• Growth of sales in China – 21 airline customers• Signed 1 new airline in 2017, 8 airlines in 2016; More in sales funnel
• October - signed IT company contract – USD $6.9M
• Two Chinese customers using real-time data services
• Factory option on Airbus A320, A330 and Bombardier CRJ
• Over 70 Airline customers…and growing
12TSX.V: FLYOTCQX: FLYLF April 2017
Record Quarterly Revenues
Successive growth in quarterly revenues
• 2016 Revenue: 37% increase over 2015
• 2015 Revenue: 52% increase over 2014
13TSX.V: FLYOTCQX: FLYLF April 2017
Revenues Based on Location
• Over 1,600 shipped and/or installed units
• 1.6 million flights and 2.5 million hours of in-service use
14TSX.V: FLYOTCQX: FLYLF April 2017
Leadership
• Mat Plamondon, VP Operations & Customer Fulfillment
• Derek Graham, Chief Technical Officer
• Thomas R. Schmutz, CEO
• Nola Heale, CFO
• David Perez, VP Sales & Marketing
15TSX.V: FLYOTCQX: FLYLF April 2017
Industry-connected Board Members
• 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
• Jack Olcott, former President of the National Business Aviation
Association
16TSX.V: FLYOTCQX: FLYLF April 2017
Capital Market Profile Share Price – As of April 3, 2017
Share Price $0.285
Market Capitalization $59.5 million
52 week low $0.15 - high $0.30
Share Structure - As of Dec. 31, 2016
Shares 207,441,766
Diluted (assuming all instruments converted/exercised) 235,145,341
Diluted (assuming only instruments of value converted/exercised) 213,662,500
Warrants Outstanding (weighted avg. exercise price ($0.24) 19,070,208
Stock Options Outstanding (weighted avg. exercise price ($0.26) 8,633,367
Insider Holdings - Management, Directors and Officers 5.1%
2 2016 2015 2014 2013
Revenue $14.3 $10.5 $6.9 $8.0
Net Profit (Loss) $1.7 ($3.9) ($4.3) ($4.1)
EBITDA $2.5 ($3.2) ($3.3) ($2.9)
Financial Results Snapshot - ($millions)