EFTA00810806.pdf

Investor Overview 15 May 2018 EFTA00810806 For decades, the commercial airline industry has seen only incremental improvements WheelTug® is a game-changing new technology for aviation EFTA00810807 WheelTug Airplanes Soar Through the Skies Airplanes are highly efficient machines in the air... But they produce revenue only while they fly EFTA00810808 WheelTug'‘ On the Ground, Time = Money On the ground, airplanes are not as efficient. Every minute spent on the ground generates no revenue - and has an opportunity cost of $150.1 Most short-haul flights spend nearly as much time on the ground as they do in the air. LaGuardia, Terminal C 1 http://airlines.org/data/per-minute-cost-of-delays to u s airlines/ EFTA00810809 WheelTug Al Slower on the ground = trailing financial performance Nay Ground Efficiency Is Critical 35% 25% 30% ASIA AirAsia EUROPE N. AMERICA 30% Allegiant • ../ RyanAir. 25% 25% 20% *Alaska .., 20% ./.. Spirit • .••• 20% 15% • :0 Delta* JetEllue .....• Southwest Operating Margin Operating Margin Wizz JuneyaO • / If 15% ./.. .. Air NZ ./.. Air Gi411^ .• 10% easviet, ..0. •1°I :lainan Aeroflot 15% Spring ../ 5% • .• ••••4. American .•.• ..e Scootrger• • IAG • ..1 • • e. 10% united Asians Westlet 0% 10% / Pegasus - Air Canada Thai • El Al 5% 0 * Lufthansa ifirinair • • 5% 10% SAS • 5% .. • AF-KLM .." -15% Nok • 20% 0% 0% 110 90 70 50 120 100 80 60 120 100 80 60 4 Average Narrowbody Ground Times (Min.) 14-20 Aug 2016 • Carriers reporting > 2000 flights Data From: 2 million + flights: 22-28 Nov 2016 19-26 Apr 2017 • Excludes ground times > 180 minutes • Narrowbodies only for FY2015 and 2016 ©f light rsIdA9Li! EFTA00810810  WheelTug l•k )r The Big Problem on the Ground Airplanes cannot maneuver easily or move in reverse. They must hook up to a tow tug to push them back from terminal gates. This process is expensive and time- consuming. EFTA00810811  WheelTug 4r'') f How to Solve the Ground Problem? The aerospace industry has tried to solve this problem for more than 70 years. The obvious solution: build electric motors into the plane's wheels - but the technology and engineering needed to do this are very complex. Since we began work on WheelTug, the following large aerospace companies have launched programs to develop competing products: Crane, L-3, Lufthansa, and EGTS (Safran + Honeywell). No matter what approach they've taken, all have abandoned their efforts. EFTA00810812 WheelTug WheelTug Has the Solution... • WheelTug makes flying faster — by making planes faster on the ground. IIIIII - IIIII IIIIIIIIIII j k 1111W‘ WheelTug EFTA00810813 WheelTug ...Electric Taxiing WheelTug is a unique electric taxi system with these major components installed on the aircraft Electronics Control Panel Motor & Drive Optional camera: — WheelTug Vision'"' WheelTug can be easily and quickly retrofitted — it is not dependent on new aircraft, and does not take existing aircraft out of service for weeks. EFTA00810814 WheelTug WheelTug Offers Many Benefits Using electric motors in the nosewheels, WheelTug enables airplanes to taxi forward and backward. WheelTug aircraft can easily maneuver in tight terminal areas while keeping jet engines off. WheelTug reduces fuel consumption and many other costs, eliminates the need for tow tugs (safer), and enables faster flight turnarounds. WheelTug lets airplanes spend more time flying - and less time on the ground. See WheelTug at https://www.youtube.com/watch?v=cYYOMJH4gYg EFTA00810815  WheelTug 4`/`y1 Saving Time & Money • Saves 7-20 minutes per flight • Enables more flights per day, thus • Enables airlines to raise an airplane's productivity by up to 20% • Unlocks multiple cost savings and efficiency gains • Creates total airline benefits of $2 MM to $7 MM per airplane per year, depending on airline usage (For a midsize airline with 100 airplanes, savings might reach $700 million per year) WheelTug is also greener, safer, and quieter, making passengers, neighbors, and airports happier. EFTA00810816  heelTug eW ,.' WheelTug Saves Time in Two Ways • In pushback from gates and beginning to taxi forward (WheelTug lets airlines do this immediately) • In parallel parking at gates, using two doors to deplane and board (the WheelTug Twist) (It will take airlines a while to implement this one) Faster pit stops = increased earnings EFTA00810817 WheelTug Streamlined Operations Conventional Pushback Pilot Tug Driver Wingwalkers Ramp Supervis. Tower Control Pushback Tractor Towbar Communications Hardware Jet Blast Safety Margins WheelTug Collision Safety Margins with WheelTug Vision Pushback Clearance Pilot Pushback Ramp Supervis. Communications Link Disconnection Tower Control Pin Removal Ground Crew Clearance A Collision Safety Margins Engine Start Procedures Al Reverse & Taxi Clearance Taxi Clearance Reverse Operation EFTA00810818  WheelTug4%. Ark NairAll WheelTug = Faster Pushback Total Ground Time (TGT) Wheels-down to wheels-up Turnaround Time (TAT) On-block to off-block Pushback without ground delay, tug or Arrival w/engines off Servicing as normal engine start. Engine start after exiting ramp area WheelTug can push back and drive forward in 60 seconds! NO TUG REQUIRED EFTA00810819  WheelTug k.-))40 Faster Pushback Time = Savings Current Pushback Times 98% completed 4, a,ll I 1.0 0,0,0,0 p O,mmOmm,..m. 2 3 4 5 6 7 8 9 10 11 12 13 Minutes Sourcefor6,723pushbacks, Every minute saved on pushback saves the average airline at least $150. WheelTug will reduce up to 30% of ground time. EFTA00810820  WheelTug Time Benefits k-k WheelTug Enables More Flights Nonflight time WheelTug pushback times are not only shorter, they are also more 15.00 dependable, requiring less schedule ....__ Taxi padding by airlines to meet on-time out —4 10.97 metrics. Time (minutes) 4— Gate With these efficiencies, WheelTug can 45.00 time 38.03 open up significant schedule gains for any airline. Taxi in —0. Current WheelTug Depending on an airline's current fleet and schedule, WheelTug productivity Savings in this scenario (year 5) are gains may increase 10% or more. 11.01 minutes/flight of scheduled time. Savings from two-door (Twist) handling included. EFTA00810821  WheelTug Also Reduces Costs... Every flight, WheelTug saves other costs... • Pushback (no tug or crew) • Fuel (main engines not running while taxiing) • Engine maintenance • Engine damage • Brake wear and maintenance ...totaling more than $250/flight For a fleet of 100 airplanes, these ancillary savings add up — more than $40 million, every year. EFTA00810822  WheelTug Ar'r" .- ...And Adds Operational Benefits Benefits: • Cuts at least 7 minutes from total ground time • Reduces fuel burn by 75+% during stop-and-go taxi, de-icing queues • No waiting for a tug after a weather delay Impacts: • Higher aircraft utilization • Fewer knock-on delays, crew time-outs • Fewer ground crew required • Happier passengers EFTA00810823  WheelTug Ark -1r ...Plus Large Environmental Benefits Lower Emissions in the Takeoff Queue Per flight fuel savings for a 5-minute queue 14.5 gal assumes dual-engine @ 2.9 gal/minute Annual fuel savings, one plane 23,500 gal 4.5 turns/day @ 360 days Annual CO2 reduction for 1,050 aircraft: @ 9.6 kg CO2/gal Jet A; 1,050 = current WheelTug LOIs with airlines 236,000 tonnes Annual CO2 reduction for 14,000 aircraft: hypothetical expansion across the industry — B737 / A320 only 3.15M tonnes One B737/A320 generates the same CO2 (and NOX) as 48 cars.- Deploying WheelTug just among those airlines that have already signed LOIs will be the equivalent of removing 50,000 cars from the road for the entire year, every year. Adoption of WheelTug industry-wide would offer the equivalent of taking 670,000 million cars off the road annually. * https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-typical-passenger-vehicle EFTA00810824  WheelTug k eek .4 Future Savings: The Twist"' W WheelTug enables parallel parking at gates (the WheelTug Twist), thus enabling use of two doors for faster boarding and deplaning. The Twist can save another 13-15 minutes per flight. Some terminals in Asia are already built with this capability. Total Ground Time (TGT) Reduced by 20-28 minutes (incl. TAT benefits) Turnaround Time (TAT) Reduced by 13 minutes' 9 Arrival Passenger/Aircraft Handling Departure * Based on UniTED two-door over-the-wing operations in Denver EFTA00810825  WheelTug kkas Nay Revolutionary Impact WheelTug: Pushback Fees $100 $2,550 Per-flight Fuel $2,500 Engine Wear $95 — Bill: $2,250 Fuel $55 Per-flight Two-door Per-flight Profit: Benefits Loading $1,000 — $1,620 $1,250 Rapid Pushback $1,300 - Fuel Savings: $293 Fuel Savings: $90 ■ 0 Winglets NEO/MAX WheelTug Southwest Dev. Cost: $100M $10+8 < $100 MM Airlines Context NEO/MAX and winglet savings based on Full WheelTug savings per flight ($2,550) reached in Southwest Airlines fuel/flight @$1.50/gallon. year 8 of Financial Model / year 6 of service. SWA profits from 2017. Savings in year 1 of service - approx. $1,120 / flight. EFTA00810826 WheelTug 4rk Lease Model Integrate Calculate & Lease for % Letter of E > WheelTug . into Airline Negotiate of Savings Intent Delivery Operations Savings Minimal annual maintenance and no CapEx make WheelTug an easy Demonstrate Renegotiate financial decision for airlines. Additional Payment Savings EFTA00810827  ti WheelTug kek WheelTug Markets Initial Markets Potential markets Boeing 737NG in service Regional jets (Embraer, (6,000+) Bombardier, Mitsubishi) Airbus A320 family in service Larger widebody aircraft (7,000+) (B777/787, A350/380) Future 737 and A320 planes Private jets and (1,000+/yr), incl. MAX/neo certain military aircraft EFTA00810828  WheelTug Competition ÷ WheelTug il SAFRAN 11 Aircraft Boeing 737-700 and -800 I. Airbus 318-321 different markets Other aircraft families to follow Expansion uncertain Status FAA Cert Plan Accepted Marketed, not yet re-started Enter Service 2019 2021? ..J Retrofit? Yes Yes AM Removable? Yes NO NM Weight (lb / kg) 300 / 135 880 / 400 "I= Patent families 100+ issued 25-30? 'II Savings due Time Fuel mostly to (always valuable) (lower savings if fuel is cheap) Est. savings / flight $2,550 $150 _J EFTA00810829  WheelTug 4r'') f The First to Fly Faster One more huge difference between WheelTug and the competition? WheelTug has already signed more than 20 airlines representing 1,000+ aircraft (the competition: zero) EFTA00810830  WheelTug • 4a-ral Nair WheelTug Timeline and Milestones Pre-2012 2012 2013 2014 2015 2016 2017 2018 2019 LA 13 First Cert Plan CertPlan Entry wheetTug In-Wheel Twist Certifica don TestUnit& Demonstration) Invented) Certifialion EngineeringI) Submitted Approved TestProgram Into to FAA 14/., by FAA -i Snow Demo Service EI M ) AU tatia J . KLM ] - airberUn ) r -Malaysial "Kenya Airways ) Jet Ai rway —s- 1 r Onur--- ) r Undisd. 1 - Icelandair") rAir Transki d Israir) OlPitorenclorT) Volaris ) HNA Group ] —Sun Express ) rUltra ) :CSAT ) Or niprog %TAG (Prague Ortrice Grp Airport (now Phixos) Dynamics versan ) ill?rvengerp grarcoSemco) r ailladd rUn 9 j WheelTugplc Proprietcry and Confidentiat, subject to NonDisclosure Agreement Dates approximate. HNA Group includes Hainan Airlines and several other subsidiary airlines. Status of airberlin slots tbd. EFTA00810831  WheelTug ksek •11 rair FAA Acceptance of the Cert. Plan + AVENGER • Certification Plan acceptance AAAAAAA CW SOCUTIONS 103 N. Main Street - Suite 106. Greawilk, SC 29601-2756 P• (864) 232-8073 December 2016 Date. March 2, 2017 Subject: Wheel Tug FAA Certification • Clear and agreed path to Avenger Aerospace Solutions. Inc is highly experienced at working with aerospace development programs and the FAA at all levels. We possess particular experience within the realm of Supplemental Type Certificates and other very invoked FAA projects such as OEM Style Type approval Cali (new aircraft) and Pans Manufacturing Authority Mew parts). For more infomuition on Avenger Aerospace Solutions. fed free to visit our web page at wissokyngerAcrospacr. cont. Our experience with the FAA is deep and thorough and I. personally. have held an FAA delegation to • Entry into service mid 2019 approve engineering data for over Ii0ea years. By apply mg for a Supplemental Type Cenilicate, receiving a Project Number from the Sank M-O. and now with the completed FAA acceptance on the Project Specific Cenification Plan. Whattug is on track to secure its Supplanental Type Certificate for the Wheeling system on the 737NG family of aircraft, and then on other aircraft models in the frame as well. • International certification via We have been working with the Wheeling tam since the middle of 2015. In our opinion, the team possesses all of die capability necessary to execute the technical plumes of the certification project and bilateral agreements has exercised great diligence and a - working together attitude with all teammates invoked. I have full confidence this will continue until MI FAA certification is obtained. The purpose of the Project Specific Catification Plan is to have an agreement between Whetting and the FAA on an tocepiable path to cenificatien of the Wheeling product. With n Cat Plan that has now been egad upon by the FAA. our CUSIOTC13 have experienced a 99% SW issuance rate. In only a tangle InalanCC In our hiuory NI% an apillInCd l'Ser n04 iblifflAtli by C‘Cninal FAA approval and entry into service and that particular instinct was generated by a customer oriented budgetary concern (business case) and was nor due to any technology issue. FAA prohibition, etc. In other words, the FAA typically adheres to the PSCP and if they have agreed to this plan as the path to succm, they will COM nine to do so fin the duration of the project. In the end, our COSItantla Mt always provided a path forward to completion of die project. will obtain FAA certification and have the pmduct entered into sen ice once the PSCP is approved and that has now taken place With all dncustions with the FAA taken into consideration that have occurred thus far. it is our expert opinion that WheelTug will similarly succeed. Dand President Avenger Aerospace Solutions. Inc. EFTA00810832 WheelTug •14, WheelTug Program Team With WheelTug or parent since 1992. Oversight of Systems & finance Former Commercial Director of ) development, finance, and strategy. Responsible for expert (Nike, IBM, ABS Jets, Strategic Director shareholder, industry, and partner relationships Mercedes Benz, Intel) Czech Airlines, Vice-Minister of (Princeton). (UPenn). Defense (Czech). (ternal WheelTug Team Chairman/CFO CEO Rodney Cox Isaiah Cox Accounting Investor Quality & Program 1 Corporate In-Service IT Legal Team Relations Safety Manager Operations Industry & Support Mark Lardas Joseph Cox Jan Vana Corp. Lawyers Former tech. director and principal engineer, rroauct Lust. bupport DRS Avionics. Chief Engineer FAA Patent In discussion with regional John Hanson DERs Team organizations Manufacturing & Des'gn • Avenger (Certification • Aversan (Cockpit) Mechanical WheelTug Vision: Expert Advisory Groups • Ultra (Control Electronics) Engineer (taxi camera) • General Group: • Phixos (Software) • Fokker Services >250 people. Includes • TAG (Test/Maint. Procedures) • Dresden / FTI shareholders, lessors, • HarcoSemco (Wiring) pilots, contractors, & • Stirling Dynamics (LG Analysis) Airline/Airport Operations former airline/airport CEOs • CSAT (Test Measurement etc.) • Undisclosed training organization • Marketing Group: • Air Transat (Test Aircraft) • Czech Air Navigation Services (ATC Proc.) 35 Agents worldwide for • Kalco Machine (Mfg.) • Prague Airport (Airport Procedures) hundreds of airlines • Other non-disclosed partners • Czech Technical University (airport ops) • Ongoing discussions with many airports • Investment Agents EFTA00810833  WheelTug ka ir Recent Press Daily Updates. Access Anywhere WheelTug Begins E-Taxi Certification And Promises A push please Pushback Savings The Graham Warwick I Aviation Week el Space Technology au Motorised nose wheels will let Economist CnaWaNT0. planes leave gates by themselves in SKAR G.' ReConwmtnd <2j4 WheelTug has begun work to complete development of itselectric taxi system. after the FAA signed off on its certification plan. Aiming for FAA approval on the Boeing 737NG by FlightGlobal WheelTug reveals timeframe for planned service entry T lOURNAI DE I 'AVIATION r Electric taxi specialist WheelTug expects as nose wheel drive WheelTug entame son programme de certification avec le feu vert de la FAA Emil* Drab AWN Orsenum Nuys Nwyq ore Oats taught. WheelTug Receives FAA Go-Ahead for Airplane E-Taxi System Certification Plans WheelTug touts taxi system's time savings Graham *nut I ATWONUS Jan .0 :Ott aorta G. seatutats OPAMENTS 0 muneMUM HOSPODARSICE NOVINY Praiske tetiite miiie mit jako prvni na svelte pfevratnou novinku v pohybu letadel po pink <Wary. Whonalluct alocbu tau Systam WheelTog has Intsn work to A Marek Maer reclaim( 12. 12. 2016 00:00 (aktuauzovano 12:26) udatosa ilk 10 oompleir clock/Anvil, of ii ekviric la•i ,ytternafirr FA EFTA00810834  Extensive Patent Protection WheelTug holds well over 100 issued patents, providing worldwide protection for our intellectual property and product. Dozens more patent applications are pending. We continue to apply for further patents in multiple jurisdictions worldwide. In 2017 alone, WheelTug was granted 27 patents. EFTA00810835  WheelTug k ek Pro Forma N SW WheelTug Aircraft in Service millions USD Total Cash Flows 2000 2500 1757 1500 2000 1,615.9 Existing Backlog: 1500 1000 1,072 Aircraft 831 1000 500 229 500 63 0 0 0 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Cash Expenses Total Revenue -Cash Flow 2018 $ -0.97 Estimated EPS 2019 -0.38 (6.93M issued) 2020 9.09 2021 62.09 2022 264.12 WheelTug Confidential EFTA00810836 WheelTug 4 Development & Certification Expenses Production Setup Expense $170,000 Entry into Service Product $870,000 Development $8,141,333 Sales & of which: Mgmt + Team $0.6 Marketing Wheel Engineering 0.9 $615,000 Landing Gear Eng. 4.4 Testing + Other 2.2 General & Administrative $920,000 Total Development and Patent Expenses Certification Cost: $11.8 MM $1,120,000 (2018-2019) WheelTug Confidential EFTA00810837 WheelTug 4rk 2022 Operating Cash Flow Security M Deposits: 217.5 Chart Figures in Millions USD All Leases: 2,194.8 Spares: 95.9 Production: 252.4 SG&A: 338.2 _ 1 _ Costs: Revenues: $686.5 $2,412.3 1,757 WheelTug Systems in Service by the End of 2022 WheelTug Confidential EFTA00810838 WheelTug r)fr 714 Summary 2019+ 2022 Revenue: $2+ billion/yr 2018 Net Income Margin: 75% 2004 2004-2016 Certification & Production Ramp-up Invention Development $12M investment of concept ' of technology Value Technology FAA Accepted Backlog • Ground efficiency • Unique capability • Cert Plan: • 1,000+ aircraft vital • 100+ issued patents, December 2016 (- 7% of market) • WheelTug Ground 30+ pending • Clear path to service • Market growth: time reduction: 1000 aircraft/year up to 30% • Savings/aircraft: $2+ million/yr Challenges for Potential Competitors Unique Technical Strong IP Certification Capability Alliances Protection Process EFTA00810839