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FLYHT Aerospace Solutions Ltd. TSX.V: FLY
OTCQX: FLYLF
AGM May 2016
2May 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
3May 2016
TSX.V: FLY
OTCQX: FLYLF
Welcome – 2016 AGM
Presentations from: CEO, Thomas Schmutz CFO, Nola Heale VP Sales & Marketing, David Perez VP Operations & Customer Fulfillment,
Mat Plamondon
4May 2016
TSX.V: FLY
OTCQX: FLYLF
Accomplishments Since Last AGM
• FLYHT’s CEO for almost six months
• Top two revenue quarters since my arrival
• Developing a rhythm for running the business
• 2015: three best revenue quarters in the company’s history - continues in 2016
• Cash burn improving - less cash used in operations
• Avmax: largest customer to date
5May 2016
TSX.V: FLY
OTCQX: FLYLF
Accomplishments Since Last AGM Cont.
• Chinese market growing
• OEM license fee increasing, over $3m in 2015
• IP License Agreement
• CAN TSO Receipt
• Cloud-based UpTimeTM development
• Equity raise to remove June debentures
6May 2016
TSX.V: FLY
OTCQX: FLYLF
Nola Heale, CFO
7May 2016
TSX.V: FLY
OTCQX: FLYLF
Q1 2016 Results
Top 4 highest revenue quarters: Q4 2015: $3.8 million Q1 2016: $2.6 million Q1 2015: $2.57 million Q3 2015: $2.52 million
Loss: Q1 2016: $1,242,942 Q1 2015: $60,414 Q4 2015: $1,203,998
Loss before R&D: Q1 2016: $254,766 Q4 2015: $514,803
8May 2016
TSX.V: FLY
OTCQX: FLYLF
9May 2016
TSX.V: FLY
OTCQX: FLYLF
Operating and Net Finance ExpenseQ1 2016 Q1 2015
$ $
Distribution expenses 1,132,727 763,774
Administration expenses 638,427 551,471
Research, development and certification engineering expenses
988,176 737,285
Results from operating activities (1,009,964) (120,523)
Finance (income) (10,458) (270,646)
Finance costs 239,690 210,537
Net finance costs (229,232) 60,109
10May 2016
TSX.V: FLY
OTCQX: FLYLF
Assets
March 2016 December 2015
$ $Total assets 5,803,079 5,478,867
Cash 1,163,715 1,551,955Receivables 1,093,273 898,166Inventory 1,163,715 1,551,955
11May 2016
TSX.V: FLY
OTCQX: FLYLF
Working Capital March 31,
2016March 31,
2015 Variance $ $ $Cash 1,163,715
1,551,955 (388,240)
Trade and other receivables
1,093,273
898,166
195,107
Deposits and prepaid expenses
277,743
137,861
139,882
Inventory 2,212,847
1,716,313
496,534
Trade payables and accrued liabilities
(3,210,049)
(2,757,707)
(452,342)
Unearned revenue (1,953,012)
(1,087,197)
(865,815)
Loans and borrowings
(5,840,418)
(5,840,418)
-
Finance lease obligations
(27,508)
(27,922) 414
Current tax liabilities
(8,421)
(4,978)
(3,443)
Working capital (6,291,830)
(5,413,927)
(877,903)
Unearned revenue 1,953,012
1,087,197
865,815
Customer deposits 698,561
1,020,675
(322,114)
Modified working capital
(3,640,257)
(3,306,055)
(334,202)
12May 2016
TSX.V: FLY
OTCQX: FLYLF
David Perez, VP Sales & Marketing
13May 2016
TSX.V: FLY
OTCQX: FLYLF
2015 Accomplishments
• 6 new clients and 2 additional through partners
• Signed largest deal in FLYHT’s history
• Responded to OEM RFP for Global Flight Tracking
• Contracted with industry sales experts; Everest Aerospace Group and Innovative Aero to lead sales
• Hired new VP Sales & Marketing
14May 2016
TSX.V: FLY
OTCQX: FLYLF
Plans for Success in 2016
• Contracted with Tri-wing in Singapore to assist with sales in SE Asia region
• Continue to focus on Target market of over 4500 a/c
• Work with aircraft OEM’s to demonstrate value of FLYHT to their customers
• Continue to demonstrate success in China market• Implement new website that highlights FLYHT’s
core competencies and value to market
15May 2016
TSX.V: FLY
OTCQX: FLYLF
Data Services in China Market
•FLYHT has a solid SATCOM only footprint in China
•Work closely with Operations team to convert these customers to higher value data services customers•Demonstrate to China market that AFIRS provides ACARS functionality with additional benefits
•Launch China data client will be delivered in Q2 and will be a showcase for other Chinese airlines
16May 2016
TSX.V: FLY
OTCQX: FLYLF
Moving up the stack to focus on tier 1’s•50% of the total world’s aircraft commercial fleet operate in the Top 20 airlines globally
•Through meetings with tier 1’s, a few key areas have been highlighted for FLYHT to focus on
•Will pursue more strategically with more focus on capturing tier 1 airlines
•Tier 1 market moves slowly (>12mos sales cycle), requiring buy-in from multiple decision makers
17May 2016
TSX.V: FLY
OTCQX: FLYLF
Mat Plamondon, VP Operations & Customer Fulfillment
18May 2016
TSX.V: FLY
OTCQX: FLYLF
Global Customer Base – Direct Sales
Current data users
Note – Chart is representative, not customer specific
19May 2016
TSX.V: FLY
OTCQX: FLYLF
UpTime •Why do our customers use our product?
•FLYHTHealth - Engine trend, exceedance and FOQA reports
•FLYHTFuel - Fuel saving initiatives•FLYHTStream - FDR data streaming•FLYHTLog - Movement messages and position reports
•FLYHTASD - Aircraft Situational Display / flight tracking
•FLYHTMail - Text messaging•FLYHTVoice - Satcom voice
SafetySave $$ RegulationRequirement
20May 2016
TSX.V: FLY
OTCQX: FLYLF
FLYHTHealth - Engine ExceedanceREGISTRATION
REGISTRATION
ICAO ICAO62.589 -98.569
21May 2016
TSX.V: FLY
OTCQX: FLYLF
FLYHTHealth - Airframe ExceedanceREGISTRATION
REG
ICAO ICAO
22May 2016
TSX.V: FLY
OTCQX: FLYLF
FLYHTHealth - Engine Trend Report
Iridium Gateway
FLYHT Network
AFIRS
Third party trend analysis provider
23May 2016
TSX.V: FLY
OTCQX: FLYLF
FLYHTHealth – Real-time FOQA ReportREGISTRATION
ICAO ICAO
REGISTRATION
Flight Operations Quality Assurance
24May 2016
TSX.V: FLY
OTCQX: FLYLF
FLYHTFuel – Dashboard
25May 2016
TSX.V: FLY
OTCQX: FLYLF
Thank you
Questions?