2017 agm and q1 presentation

2017 Annual and Special Meeting

FLYHT Aerospace Solutions Ltd. TSX.V: FLY

OTCQX: FLYLF

2TSX.V: FLYOTCQX: FLYLF May 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


Tom Schmutz, CEO


TSX.V: FLYOTCQX: FLYLF

Who is FLYHT?

• Leading provider of real-time data streaming technology that enhances the efficiency and safety of aircraft

• FLYHT technology • Saves aircraft operators money

• Helps streamline their operations

• Proactively enhances safety, which help to prevent accidents and save lives

• FLYHT is a rapidly growing, “company to watch” in the aviation technology space



Accomplishments Since Last AGM (May 2016 – May 2017)

• Announced $28M in new sales

• Four consecutive profitable quarters

• First ever EBITDA positive year of $2.5M

• Successive record breaking revenue quarters

• Held the line on non-COGS expenses (YoY +1.3%)

• Retired $5.4M in matured debentures

• Received Western Economic Diversification Canada WINN repayable contribution for $2.35M

Automated Flight Information Reporting System - AFIRSTM



Accomplishments Since Last AGM, p.2

• Won eight new Chinese operators, total 22

• Opened repair depot in China and trained operators

• Launched 24x7 international customer support call center

• Launched UpTimeTM Cloud server and brought up several clients on service

• Launched recurring data services in China, signed first two customers, working several more

• Achieved Aerospace Industry Certification AS9100



Accomplishments Since Last AGM -Press and News, 1

• Filmed Worldwide Business with kathy ireland® (April, ‘17) – airs this summer on FBN as sponsored programing, Bloomberg TV

• Mark Rosenker, Director, featured in Fortune Magazine (Dec ‘16)

• Tom Schmutz and FLYHT featured in National Newspapers as part of Calgary Economic Development “Be Part of the Energy” (Nov ’16)

• FLYHT featured in Air Traffic Management Magazine (Oct ‘16)

• FLYHT mentioned in Wall Street Journal Article (Sep ‘16)

• Nola Heale and FLYHT featured in Chartered Professional Accountants (Sep ’16)

• Tom Schmutz and FLYHT featured in Voice of America Broadcast (Aug ‘16)

• FLYHT featured in Air Traffic Management Magazine (Aug ‘16)



Accomplishments Since Last AGM -Press and News, 2

• Tom Schmutz and FLYHT featured in OTCQX Interview (Jul ‘16)

• Tom Schmutz and FLYHT featured in Uptick Network Interview (Jul ‘16)

• FLYHT mentioned in Avionics Magazine (Jul ‘16)

• FLYHT mentioned in Travel Weekly (Jul ‘16)

• FLYHT mentioned in The Toronto Star (Jun ‘16)

• FLYHT mentioned in Bloomberg View (Jun ‘16)

• Tom Schmutz Interviewed Live on MSNBC (Jun ‘16)

• FLYHT featured in NBC News On-line Article (Jun ‘16)



Accomplishments Since Last AGM -Internal

• Good Place to Work Initiative

• Trained in Guiding Principles (Toyota Way)

• Standard Work, Measurements, Metrics and Feedback for Efficiency Improvements

• “Achieve Excellence – 2017” High Level Strategy

• Company Values and Company Mission Statement



New Company Values

• Customers - We recognize that customer satisfaction and profitability are key to success.

• Trust - We create trust by treating each other with respect and consideration. We operate with transparency, honesty and integrity.

• Culture - We provide clear objectives, a positive work environment, fair compensation and work-life balance. We have fun, promote teamwork and support each other. We value and empower each employee.

• Innovation - We challenge our employees to develop creative and innovative solutions. We embrace change, manage risk and continuously improve.



New Company Mission Statement

• Our mission is to improve aviation safety, efficiency and profitability.


Forthcoming Regulation

• ICAO Annex 6, Amendment 40:

• Autonomous Distress Tracking

• Timely access to flight recorder data

• Applicable to newly manufactured aircraft after Jan.1, 2021

• FLYHT technology offers a solution now



Stock Option Plan

• FLYHT has significantly upgraded its staff over the past two years

• FLYHT needs to attract the best and brightest to compete in a very difficult market/space

• Stock Option Plan provides an important tool to incentivise the workforce

• The plan does not provide free shares, just an option to buy at a market price

• The cash from the option exercise goes to the company

• Stock Option Plan is necessary for the CEO to accomplish our stated goals



Stock Consolidation Thoughts

• Several different forward-looking opportunity scenarios for FLYHT will be optimized with a stock consolidation

• If pursued, consolidation will be paired with one of these opportunities

• Guidance from several sources leads management to believe consolidation can significantly benefit FLYHT

• Attractiveness to both retail and institutional investors• Lower investment dealer margins• Lower retail margins and share loans• Overcome minimum share price constraints• Case studies of SP growth for companies in similar

situation to FLY

• Goal is to make FLY.V more attractive to institutional investors and ultimately pursue up-listing


Nola Heale, CFO


2014 to 2017 Financial Results


2014 to 2017 Financial Position


Revenue Sources


2017 Q1 – EXPENSESQ1 2017

$Q1 2016

$

Distribution expenses 1,195,194 1,132,727

Administration expenses 638,120 638,427

Research, development and certification engineering expenses

561,158 988,176

Total Expenses 2,394,472 2,759,330

Finance (income) (1,769) (10,458)

Finance costs 81,432 239,690

Net finance costs 79,663 (229,232)

Q1 2017$

Q4 2016$

Q3 2016$

Q2 2016$

Distribution expenses 1,195,194 1,424,211 1,101,318 1,248,783

Administration expenses 638,120 719,097 626,733 1,103,399

Research, development and certification engineering

561,158 725,739 550,443 336,871


Working Capital

March 31, 2017$

December 31, 2016$

Variance$

Cash and cash equivalents 1,454,803 709,958 744,845 Restricted cash 250,000 250,000 -Trade and other receivables 2,471,197 2,105,385 365,812 Deposits and prepaid expenses 382,856 216,819 166,037

Inventory 1,610,825 1,556,794 54,031 Trade payables and accrued liabilities

(2,830,359) (2,163,307) (667,052)

Unearned revenue (807,494) (827,235) 19,741 Loans and borrowings (102,235) (97,895) (4,340) Finance lease obligations (9,178) (15,553) 6,375 Current tax liabilities (6,869) (10,776) 3,907 Working capital 2,413,546 1,724,190 689,356 Unearned revenue 807,494 827,235 (19,741) Customer deposits 701,556 317,899 383,657 Modified working capital* 3,922,596 2,869,324 1,053,272


Customer Deposits and Unearned Revenue

• Bullet

• List

• Goes

• Here

Q1 2017 Q1 2016 Variance

$ $ $

Opening balance 317,899 1,020,675 (702,776)

Payments received 1,281,665 913,448 368,217

Moved to unearned revenue (898,008) (1,235,562) 337,554

Balance, March 31 701,556 698,561 2,995


$ $ $

Opening balance 827,235 1,145,341 (318,106)

AFIRS sales shipped 898,008 1,235,562 (337,554)

AFIRS sales recognized (912,800) (423,133) (489,667)

Voice and data services recognized

(4,949) (4,758) (191)

Balance, March 31 807,494 1,953,012 (1,145,518)



• Bullet

• List

• Goes

• Here


$ $ $

Opening balance 317,899 1,020,675 (702,776)



Balance, March 31 701,556 698,561 2,995


$ $ $

Opening balance 827,235 1,145,341 (318,106)




(4,949) (4,758) (191)

Balance, March 31 807,494 1,953,012 (1,145,518)


Derek Graham, CTO


See video at www.flyht.com/presentation-and-webcast

http://www.flyht.com/presentation-and-webcast


How We Do It


Introducing UpTimeTM Cloud

UpTime Cloud is FLYHT’s web portal for applications that improve aviation safety, efficiency and profitability.

FLYHTMail

FLYHTLog

FLYHTASD

FLYHTHealth

FLYHTFuel

FLYHTStream



Why Cloud?

• Reliability

• Scalability

• Security

• Flexibility

• Capital-Expenditure Free



FLYHTLog

Demo

http://localhost:4000/



FLYHTMail



FLYHTASD



FLYHTHealth



FLYHTFuel



FLYHTStream

Demo

http://localhost:4000/


Questions?

Thank you

www.flyht.com

[email protected]

http://www.flyht.com/

2017 agm and q1 presentation

Investor Relations