flyht's january 2016 ir presentation

FLYHT Aerospace Solutions Ltd. TSX.V: FLY

OTCQX: FLYLF

January 2017

2TSX.V: FLYOTCQX: FLYLF January 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


The “New” FLYHT

• 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 1,400 shipments and/or installations and growing rapidly

• Record setting revenue quarters in 2015 & 2016

• Back to back profitable quarters (Q2 & Q3 - 2016)

• Strong pipeline of major opportunities

Automated Flight Information Reporting

System - AFIRSTM


Investment Highlights

• Multiple revenue streams• Initial hardware sales with gross margins at 40-60%

• Robust SAAS recurring revenue gross margins of 75-85%

• Five-year customer contracts renew at expiry

• Greater than 2.4 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


The AFIRS Solution – More Than Tracking


IridiumSATCOM

EnhancedGlobal Flight Tracking

Aircraft Health Monitoring

FDR Streaming Fuel Management

FLYHTVoiceFLYHTMailACARS over Iridium

FLYHTLogFLYHTASD

FLYHTHealth FLYHTStream FLYHTFuel

AFIRS™ UpTime™ - Core Products

• Technology provides real-time aircraft situational information

• Improves maintenance and aircraft operations to save money

• Enhances operational safety


• First Air in Canada is leading the industry with FLYHT’s real-time FDR (black box) streaming technology.

• Raised the standard of their tracking and automated alerting with a technology

• Customizable to set triggers for streaming, frequency of flight following reports and select data that is sent to the ground

Real-time Data Streaming


FLYHTASD – Aircraft Situational Display


Customer Success Stories

• AFIRS alerted an airline customer of a high engine vibration and they were 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

• 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


AFIRS/UpTime - Competitive Advantages

Feature FLYHT Other Satcom

OEM

Tracking

Solutions

QAR/Health

Monitoring

Global voice coms X X XFANS/Safety Services X XACARS over Iridium X XQAR X X XAircraft health monitoring (Trends &

exceedances - engine/airframe) X X X

ICAO:Global flight tracking X XAutonomous distress tracking XLive black box streaming XReal-time systems diagnostics XTSO C-159A (Voice and Data) XSTCs supporting 95% of air transport

aircraftX


Recent Successes

• Repayment of $5.6 million in matured debentures

• Received a $2.3 M interest-free government loan

• Record revenue in Q3 2016 of $4.1 M - second consecutive positive quarter

• $5 million equity raise in Q2 2016 - oversubscribed

• Receipt of proceeds on the sale of IP License - $2.5 M USD

• 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


Strategic China

• Growth of sales in China and building relationships – 20 airline

customers

• Signed 8 airlines in 2016; More in sales funnel

• October - signed IT company contract – $6.9M USD

• First Chinese customer for real-time data services in August

2016

• Initial contract $1 M which can grow with aircraft additions

• Reference customer for other Chinese airlines

• FLYHT’s cloud-based UpTime installed for Chinese customers


Record Quarterly Revenues

Successive growth in quarterly revenues


Revenues Based on Location

• Over 1400 shipped and/or installed units

• 1.6 million flights and 2.4 million hours of in-service use


Leadership

• Mat Plamondon, VP Operations & Customer Fulfillment

• Derek Graham, Chief Technical Officer

• Thomas R. Schmutz, CEO

• Nola Heale, CFO

• David Perez, VP Sales & Marketing


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


Capital Market Profile Share Price – As of January 5, 2016

Share Price $0.265

Market Capitalization $55 million

52 week low $0.15 - high $0.27

Share Structure - As of Sept.30, 2016

Shares 207,393,766

Diluted (assuming all instruments converted/exercised) 238,192,074

Diluted (assuming only instruments of value converted/exercised) 214,668,733

Warrants Outstanding (weighted avg. exercise price ($0.23) 20,127,792

Stock Options Outstanding (weighted avg. exercise price ($0.27) 10,720,517

Institutional Ownership % Approx. 40.0%

Insider Holdings - Management, Directors and Officers 5.1%

2 2011 2012 2013 2014 2015 2016 YTD

Sept 30

Revenue $5.5 $6.5 $8.0 $6.9 $10.5 $10.2

R&D Expenditures $3.3 $2.4 $2.1 $0.8 $2.8 $1.9

Net Profit (loss) ($6.5) ($4.9) ($4.1) ($4.3) ($3.9) $1.6

Financial Results Snapshot - ($millions)


Thank youwww.flyht.com

[email protected]

http://www.flyht.com/

flyht's january 2016 ir presentation

Investor Relations