FLYHT Investor Presentation August 2014

FLYHT Aerospace Solutions Ltd.TSX.V: FLY

OTCQX. FLYLF

August 2014

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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

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AFIRS Technology

“A six pound heavy-weight that will drive a cultural change on how an airline operates and manages its data.”

Works on any aircraft

Continuous monitoring

Safety and economic benefit

Enhances all existing technologies

Global coverage Expanding menu of applications

Offers real-time data transmission

Satellite based Iridium Network

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The Solution – More Than Tracking

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FLYHT Products

AFIRS – Automated Flight Information Reporting System• Regulatory certification for installation on 30 widely used aircraft types• AFIRS 220 1,500,000 flight hour mark• AFIRS 228B in the field and generating revenue• AFIRS 228S Certified for safety services use• AFIRS Dragon for Helicopters and light aircraft

UpTime• Introduced in 2004• Converts small data packets into valuable information• Allows aircraft operators to manage and monitor operations • AFIRS gathers, stores, analyzes and transmits data• UpTime is a client-web interface that delivers information in real-time• Reports to aircraft operators via e-mail, browser or

integrated to systems

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Value Add Products

FLYHTStreamTM • An emergency data streaming mode• Can be manually activated by the flight crew, ground support or automatically triggered

by predefined emergency parameters• FLYHTStream sends critical data such as global position, equipment status and black

box information to ground-based operations• Patent pending service uses the Iridium satellite network

Flight Data Management (FDM)• SMS Dashboard

FLYHTFuel • Automatically identify fuel consumption trends

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Investor Consideration

•Unparalleled, proprietary, patented and patent pending real-time data streaming technologies

•Commercial today with significant and growing base of customers

•Recognized global leader airline industry

•Saving customers money, time and driving efficiencies

•Scales to large multi-aircraft contracts

•Proven recurring revenue model with multi-year contracts

•Absolute customer satisfaction to date

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Capital Market Profile……cont’dat August 12, 2014

Share Price $0.37

Market Capitalization (per TSX:V) $62.8 million

52 week low $0.22- high $0.80

Shares (per TSX:V) 169.7 million

Share Structure – At June 30, 2014** Management, Directors and Officers

Diluted 183 million

Institutional Ownership % Approx. 40.0%

Insider Holdings** 4.2%

2010 2011 2012 2013 1st ½ 2014

Revenue $4.7 $5.5 $6.5 $8.0 $2.9

R&D Expenditures $5.8 $3.3 $2.4 $2.1 0

Net Loss $9.0 $6.5 $4.9 $4.1 $0.4

Financial Results Snapshot– ($millions)

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Sierra Nevada Inc.

• Multi billion dollar private company

• Headquarters Reno Nevada

• Large US military supplier

• Will run secure UpTime

• Will use AFIRS to generate revenue

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• Reported Revenue of $1.5

• Recurring revenue (AFIRS UpTime usage) of $921,116, an increase of 12.9%

• Distribution expenses were $780,050, representing an increase of

$99,185

• R&D expenses were $(1.3) due to recovery from SNC

• China shipments started

• Airbus in service evaluation completed

Second Quarter Highlights

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MH 370

• Kuala Lumpur conference May 26-27

• The tragedy of complacency

• The track, alert, analysis approach

• Causing buying decision delays while regs developed

• We are in the thick of the hunt for change

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Competitive Analysis

• No other product offers breadth of AFIRS

• Satcom only included Aircell, Skytrac, Latitude• ACARS over Iridium include ICG and Avionica • FLYHTStream has no competitor• Real time FOQA has no installed competitors• EFB connections have no installed competitors

• AFIRS is certified for all of the above

• Patents and patent pending exist on the technology

• Proven cost savings

• OEM installs help the buying decision

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Market Drivers •Need for better communications acknowledged in FANS and CPDLC

• AF447 and MH370 disasters leading to mandates

• Customer evaluations show savings of $100,000 per plane per year

• Airlines save money with better and more timely information

• reduce turn around time

•  reduce fuel consumption

• have the right people in the right place at the right time

• reduce repair costs by having better information to make decisions

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• Regulatory environment is a natural barrier to entry

• FLYHT holds patents on its technologies

• Obtained nearly 60 Supplemental Type Certificates (STC) for 30+ models

•Required for installation on each aircraft type

•Additional STCs are pending or in progress

•A decade of developing industry relationships

•Went through strenuous due diligence processes by customers, partners and regulators

Massive Barriers To Entry

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Business Model

Certify and Sell Kits

Build Applications

Recurring Revenue

• AFIRS™ 220• AFIRS™ 228B• AFIRS™ 228S

• Fuel management• Engine trending

• Cockpit data• Exceedence

reporting

• Bill for hourly flight usage per

month • Monthly charges

for applications

Hardware Software Usage

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Recurring Revenue Model

• Sell AFIRS with necessary engineering package to install and activate

• $35 to $60 thousand per aircraft for retrofit

• Factory install at Airbus - L3 pays FLYHT royalties

• Provide various functions on usage basis

• Operational features to provide cost savings for customer

• Voice and data connectivity to the cockpit for safety

• Average recurring revenue greater than $1200 per month per aircraft

• Recurring revenue gross margin 80%

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Turning Data into Information

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Customer Feedback

•“FIRST is a key element to any fuel conservation initiative, it is the big “M” within the PEMC framework – Plan, Execute, Measure, Correct. And the system does it accurately and timely, always.

•The dash-board functionality gives the Operations Manager the right information at the right time to make the best decisions. Now it is possible to act, on the spot, using actual and unbiased data.

•Also, the “what-if” capacity is widely used in scenario analysis, my company can discuss different operation scenarios and operation policies with immediate calculation of potential savings, without the need to perform special test flights or waiting for new flight data.

•FLYHT knowledge and flexibility to accommodate specific requirements is remarkable and makes the AFIRS and FIRST solutions a “must have” solution to the aviation companies engaged to be the most efficient as possible in terms of fuel usage”

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Using Information to Monitor

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What We Are Working On

• Sales force reinforcements

• Growth through building applications

•Aircraft Situational Display

•iPad connectivity

•FLYSafe

• FLYHTStream commercialization

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Company Making Opportunities

• Airbus factory and fleet installs

• China with Satcom mandate

• Business aviation evolution

• SNC takes us to the military

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Airbus A320

• Wants ACARS over Iridium, Voice and IP based EFB connections

• Limited revenue in initial installs

• We are part of the airframe, additions are achievable

• L3 wants to be part of the solution

• 25% to 40% adoption expected

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China Opportunity

• China has mandated satellite communications for all aircraft

• Benefits of FLYHT - Iridium relationship now recognized and approved

• Inmarsat is the alternative satellite system, but Iridium is more reliable and economical

• Exclusive distribution agreement with SkyBlue Technologies (Gov’t owned)

• 30 installed to date on 7 carriers another 20 paid for

• Large potential is realistic but forecasting and timing are difficult

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SNC

• Operates many aircraft for US Government

• Well connected in Turkey

• Large sales force expanding into Commercial

• Very good partner with fair revenue sharing

• Strong technical team for limited support requirements

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Annual Objectives for 2014

• Ramp up China installs to meet mandate

• 20 units paid for

• Install on 2 business aircraft OEMs

• Meeting NJE in May in Geneva

• Expand service modules to increase revenues

• Commercialized our FLYSafe Product

• Pursue additional commercial OEM opportunity

• Ongoing work

• Positive results from operations on the year

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Officers/Senior Management

Bill Tempany, Chief Executive OfficerMr. Tempany has more than 35 years of senior management experience in hi-tech companies and more than 15 years’ experience in the public markets. He has been CEO of FLYHT since March 2003. He was founder, President and CEO of Fintech Services Ltd., President and founder of QByte Services Ltd. (now owned by IBM), and a consultant in the international oil and gas industry to companies such as Ziff Energy Group and Petrobras.

Matt Bradley, PresidentMr. Bradley has more than two decades of experience in military and civilian aviation. He worked with Skyservice Airlines for the last 10 years as a Captain and Check Pilot. With Skyservice, he worked extensively in the area of fuel management, implementing a satellite communication and fuel efficiency initiative that saved the airline over 3% of the annual fuel budget.

Thomas French, CGA, Chief Financial OfficerMr. French is a Certified General Accountant with more than 30 years of experience. He has worked in global aviation and is experienced in dealing with a number of multinational companies. Most recently, Mr. French was the CFO for Eagle Copters Ltd., a privately held aircraft and parts manufacturing, sales, leasing, and heavy overhaul organization.

Derek Graham, Chief Technical OfficerMr. Graham has more than 10 years of combined aeronautical satellite product development and management experience, Derek brings extensive depth and leadership to the FLYHT Team. Derek has previously worked at a major avionics manufacturer for 10 years in product line Management and development responsible for a line of successful aviation Iridium and Inmarsat communications products

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Officers/Senior Management……cont’d

Jeff Brunner, P.Eng., VP Certification Engineering and China OperationsMr. Brunner is a professional engineer with over 18 years of experience in the aviation industry. After receiving avionics engineering and aircraft maintenance training from Southern Alberta Institute of Technology, Mr. Brunner worked in aircraft maintenance before completing a bachelor’s degree in mechanical engineering from the University of Calgary. He joined FLYHT in 2005, initially serving as head of the Company’s engineering department, where he led the initiative to have FLYHT certified by Transport Canada as a Design Approval Organization (DAO). Mr. Brunner is also a Transport Canada delegate under FLYHT’s DAO.

Kent Jacobs, Technical FellowMr. Jacobs is a professional pilot with a computer science degree who was the first employee of FLYHT. He is the founding developer of the AFIRSTM system. What started out as a box that fit in a coat closet, the AFIRS system is now the size of a loaf of bread, is installed on aircraft and is the center of FLYHT’s business. Kent is also the lead developer of the Fuel and FLYHTStreamTM systems.

Graham Ingham, Director, Service and SupportMr. Ingham has over 20 years of civil aviation experience. During the course of his career, he has flown many types of transport category aircraft that includes the B727, B737 and A320/A330 aircraft. Additionally he has held several Managerial positions which include Manager, Flight Training for Skyservice Airlines, Training/Check Pilot A320 and most recently Director, Flight Operations for First Air.

Michael Fang, Vice President China OperationsMr. Fang is an Avionics Engineer with more than 15 years of work experience in the Chinese aerospace industry. He has worked with both the Chinese Airlines and Chinese government regulators. He holds an MBA from the Haskayne School of Business at the University of Calgary.

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Board of DirectorsBill Tempany- President and CEO, Audit CommitteeMr. Tempany has more than 35 years of senior management experience in hi-tech companies and more than 15 years experience in the public markets. He has been CEO of FLYHT since March 2003. He was founder, President, and CEO of Fintech Services Ltd. (now Sylogist Ltd.), President and founder of QByte Services Ltd., and a consultant in the international oil and gas industry to companies such as Ziff Energy Group and Petrobras.

Mike Brown – Governance Committee, Compensation Committee Mr. Brown is a lawyer with the firm of Geselbracht Brown and practices in the areas of Business Law, Real Estate Law, Wills & Estates and Civil Litigation. Mr. Brown is currently Chair of the Board of Governors of Vancouver Island University (V.I.U.) and was a strong leader in the logistical and legal challenges of the transition of V.I.U. from a university college to full university status. During that process he was instrumental in the creation and implementation of a governance process for the new V.I.U. Within his community he has also been actively involved with the United Way, the Nanaimo Dragon Boat Festival Society, Crime Stoppers, the Nanaimo Rotary Club and the Nanaimo Chamber of Commerce. Mr. Brown is a graduate of the Faculty of Law at the University of Ottawa. He has served on the FLYHT board of directors since March 2003.

Richard Hayden Mr. Hayden, an engineer by training (BS, Norwich University; MS, Purdue University), has led the development and successful transition of new monitoring and diagnostic technologies and products in the aviation field for 25 years. As founder and CEO of Technology Integration Inc., he provided vision and collaborated with end users, OEMs, and industry partners to optimize product capabilities and suitability, as well as building staff and partners who created two innovative products that are now industry standards. Mr. Hayden was with Meggitt, a U.K.-based supplier of aviation products from 2002 until June 2008. He joined the FLYHT board in July 2008.

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Board of Directors……cont’dJack Olcott – Governance Committee, Compensation Committee Mr. Olcott was educated as an aeronautical engineer (BSE & MSE, Princeton University; MBA, Rutgers University) and has a certificate in leadership training from the Kennedy School of Government of Harvard University. Mr. Olcott began his career in business aviation and was involved with creating a flight research laboratory at the Indian Institute of Technology/Kanpur. He also obtained and managed flight mechanics contracts issued by NASA and private industry. In the early 1970′s Mr. Olcott began a career in aviation journalism where he was Editor and Publisher of Business & Commercial Aviation magazine and a Vice President of McGraw-Hill’s Aviation Week Group. Mr. Olcott joined the National Business Aviation Association as President in 1992 and held that position until 2003. He is currently President of General Aviation Company. He joined the board of directors of FLYHT in May 2008.

Paul Takalo – Audit CommitteeMr. Takalo is a Chartered Accountant who was employed with Grant Thornton from 1985 to 2005 and spent the last five years of his time there as Audit Partner. From July to November 2005 Mr. Takalo provided consulting service. Since November 2005 he has held the position of Vice President, Finance with Standen’s Limited. Mr. Takalo has been on the FLYHT board of directors since May 2008.

Doug Marlin – Chairman, Audit Committee, Governance Committee, Compensation Committee Mr. Marlin has been President of Marlin Ventures Inc., a Canadian-based consulting firm, since January 1997. He is a Director of Zed.i Solutions Inc. as well as a Director for JDA Software Group Inc. Mr. Marlin was previously President of JDA Software Ltd. from 1981 to 1996. He has served on the FLYHT board of directors since March 2003.

Jacques Kavafian – Governance Committee, Compensation CommitteeMr. Kavafian is an independent business man., based in Richmond Hill, ON. He is well known to the investment, aviation and travel communities with more than 26 years of experience as an analyst on Bay Street, covering companies in the airline, aerospace and leisure industries. He was Vice-President and Analyst with Research Capital from August 2004 to October 2009. Mr. Kavafian joined the FLYHT board of directors in December 2010.