FLYHT Aerospace Solutions Ltd. Investor Presentation

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


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


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


AFIRSTM – More Than Just Tracking


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


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


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


AFIRS - Competitive Advantages


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


Record Quarterly Revenues

Successive growth in quarterly revenues

• 2016 Revenue: 37% increase over 2015

• 2015 Revenue: 52% increase over 2014


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


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 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)


Thank youwww.flyht.com

[email protected]

http://www.flyht.com/