FLYHT Aerospace Solutions Ltd.

Good day and welcome to the iAccess Alpha BuySide Best Ideas Spring Conference 2024. The next presenting company is Flight Aerospace Solutions Ltd. If you would like to ask a question during the webcast, you may do so at any point during the presentation by clicking on the Ask Question button on the left of your screen. Type your question into the box and hit the send button to submit your question. I'd now like to turn the floor over to today's host, Mr. Kent Jacobs, President and Interim CEO of Flight Aerospace Solutions Limited. Sir, the floor is yours.

Thank you very much. Good morning, everybody. I would like to thank you for taking the time to join us for this presentation. My name is Kent Jacobs. I'm the President and Interim CEO at Flight Aerospace I've been with the company for a little over 22 years, and I'll be walking you through our presentation today. There are some forward-looking statements in this presentation. Flight has a 25-year history in the aviation industry and in the weather community. We are an established organization in these industries, and that is not an easy thing to get to. So FLIGHT is at a position where we've got that history, we've got that pedigree that we can rely on as we bring our new product to market and we move into this opportunity to become an actionable intelligence and a SAP-generating organization. We were primarily a SATCOM provider for many years. We're moving into those new opportunities with the SAP offerings, enabling the aviation hardware, software, and weather offerings. On the right-hand side, you can see some stats on flight, just really quickly to give a bit of a background. We have more than 100 SPCs received, and SPC is simply a certification for us to put a product onto an aircraft. Barrier to entry, and we'll talk about that in a few minutes. We have more than 4,300 avionics installations around the world, more than 115 global airline customers. We measure our flight hours and our flights, 5.2 million flight hours, including NOAA and UK MET. Flight's vision is to be a global force of integrated data solutions for aviation and weather, and we are well on our way to achieving that. There are some macro trends that are serving as major opportunities for flight, so I'll talk about these just briefly. There's a technology option that is going to affect the industry in the coming years. It's actually already started, and flight is very well positioned to take advantage of it. QG and 3G and even LTE networks around the world are being shut down by various cellular operators, and this is just progress. This is advancement in technology. It is going to happen. 5G is the latest generation of technology to move data over cellular networks, and Flight has built the first 5G wireless 5G capability avionics to transmit data over those networks. The beauty of this is that airlines have no influence in delaying this. They cannot object to it. It is something that's going to happen around the world. Flight is very well positioned to take advantage of this offline. There's a real-time intelligence component that Flight has been dealing with in the last 20 years, and we have no plans to move away from that. The airlines and the industry's need for real-time analysis is something that Flight will continue to provide, even as we move towards our new technologies in the 5G space This is something that the heart of our staff operations are going to be based. And there's a weather, climate, and environment component that is going to be affecting the industry. It's already affecting the airline industry. But as airlines have to meet their net zero commitments, flight is there to provide them with the information and to provide the industry with the information that they need to meet those commitments. It's not an easy thing for the airlines to do. Something flight is very well positioned to help with. As we look at the addressable markets in aviation, it's really quite staggering the opportunity the flight is looking at. We are looking at our largest opportunity in our history of our organization. On the hardware side, the avionics side, there's an opportunity for 25,000 aircraft at roughly $30,000 per aircraft for the hardware installation. This represents $750 million addressable market. if we were to hit all of it. And while we don't expect to hit all of it, we do expect to hit a significant component of it. These are the products, these are the aircraft that either don't have a solution in them right now, or if they do have a solution, they are of a 2G, 3G LTE variant, and we know that those are going to be not operational within a few years. On the actionable intelligence, on the software side, the operating and a $500 per month fast recurring opportunity on it, and then look at it over 20 years, we're talking about a $3 billion adjustable market. Flight, you know, we have been operational for 25 years now, and we do have aircraft that are operating with our product on them for some 16, 17 years now. That 20-year lifetime is very reasonable when you consider the avionics go onto an aircraft and they typically stay on the aircraft either for the life of that airplane or until something like the TG3G sunset occurs, and they have to be removed. On the weather side of our business, we see a $600 million adjustable market, and this is, if we consider the sensor, the Flight WVSS2 sensor, and the fact that we can sell up to 200 of those with the recurring revenues, that's a $100 million opportunity. But what Flight is really focusing on is the OEM requirements, And flight does have experience with OEM lines here. We are listed on the A320 line, Airbus, A320, 330, and the A220 aircraft. Getting to a line to position of our weather sensors is something that is driving flight continuously.

I think I jumped a slide.