Fly Play hf.

Investor Presentation • Feb 20, 2024

INFORMATION MEMORANDUM February 2024

PLA

PLAY

Operational efficiency achieved: Focus on
profitability in 2024, not expansion

• Competitive scalability reached with 10 airplanes
• $\rightarrow$ Ex-fuel CASK down by 6% in 2023
• Culture of operational discipline, constantly seeking opportunities for further cost improvement

Operation Running Smooth

83% on-time performance in 2023, the third most punctual airline in Europe¹⁾

$\boxtimes$

• Investment in IT infrastructure systems already resulting in decreased cost and higher RASK
• Room for more expansion with current overhead cost

RASK Trending Upwards

PLAY's routes becoming more mature

$\boldsymbol{\nabla}$

• $\rightarrow$ Ancillary revenue increased by 29% in 2023
• $\rightarrow$ Forward bookings showing increased RASK YoY

$\boldsymbol{\nabla}$

PLAY On the right path

Going into third year of operation we see a positive trend despite challenging conditions in the past years

Revenue doubled and EBIT loss halved

Capacity increased 89% while margin¹⁾ up 54%

Ancillary revenues growing USD per pax

1) Margin = TRASK - Ex-Fuel CASK

2) PLAY's official Ex-Fuel CASK is including de-icing costs

PLAY

PLAY's cost basis is a driving force in increased market share at KEF

PLAY gained 6.7% market share in 2023, passengers flown increased by 92.7% YoY and capacity grew by 89% YoY

PLAY Cash flow from operations improved significantly

Despite 89% increase in capacity, cash flow from operations improved by USD 18m in 2023 – Accumulative 30m in prepaid maintenance ensures predictability for future capital expenditure

2023

PLAY Based on recent and forward RASK development, profitability is close by...

PLAY's network maturing resulting in improved revenue - Cost efficiency achieved with economy of scale & PLAY's low-cost culture

TRASK (TTM) CASK (TTM) PLAY launches its USA 8.8 operations 8.4 +25.9% 7.9 7.6 6.7 6.4 6.2 5.8 5.7 5.6 $5.2$ $5.2$ $+0.4$ 5.0 5.0 4.9 4.8 $4.1$ 3.6 $3.4$ 2.8 Q3 21 Q4 21 Q122 Q2 22 Q3 22 Q4 22 O123 O₃ 23 Q4 23 Q₂ 23

PLAY's Trailing Twelve Month (TTM) TRASK and CASK

... we are seeing significant improvement in revenue generation...

• Forward RASK continues to improve heading into summer with both yield and higher load factor
• Despite an increase in capacity each quarter, negative news coverage of seismic activity affected Q4 23 and Q1 24

... increase in travel agent bookings $1$

• Travel agent bookings yearly growth with expanded leisure schedule
• Significant growth is aligned with increased awareness and relationshipbuilding efforts abroad

... maturing network $^{2)}$

• Only 3% of capacity on sale in summer $2024$ is new
• Unit revenue normally increases as markets mature due to increased awareness and our knowledge of each market improves

PLAY

PLAY

... and forward ancillary yield continues to improve year on year

Investment in booking engine and new ancillary services is driving ancillary yields

Year-on-Year difference in forward ancillary revenue per passenger¹⁾

Our trajectory is not different to other successful startups

Despite various setbacks, our performance to date stacks well up against other successful airline startups

1) Year 1 for PLAY is the year ending 31 December 2021. Not adjusted for impact of IFRS16

2) Financial results for Wizz Air Limited. Year 1 is the year ending 31 March 2005

3) EBIT results for Wizz Air Limited for the financial year ending 31. March 2005/6/7 in 2023 prices and converted from EUR to USD

PLAY's unit cost is competitive versus other airlines

PLAY has the lowest Ex-Fuel CASK on the transatlantic - PLAY's forward-looking focus is on higher TRASK

PLAY

$10$

PLAY Positive trend on the revenue and cost side of the business compared to the competition ...

PLAY's cost continues to decline, and revenue improve

$11$

PLAY The gap is closing

Difference in EBIT per ASK is decreasing with last quarter turning the tables around

EBIT per ASK Difference

12 months rolling | PLAY minus Icelandair (US cents)

1) Comparison with Icelandair's route network. $12$

18-20 aircraft

Competitive Ex-Fuel CASK

EBIT margin >10%

Revenue USD >750m

PLAY Disclaimer

This Presentation has been prepared by Fly Play hf. ("PLAY") and is being furnished by Arctica Finance hf. ("Arctica") and Fossar Investment Bank hf. ("Fossar") for the sole purpose of assisting the recipient in deciding w proceed with further analysis of the subject matter hereof.

The information in this Presentation is based on sources that PLAY considers reliable. However, the information may be subject to updates, completion, revision and amendments resulting in material changes to the contents o Presentation. The Presentation partly contains confidential information regarding PLAY. Your acceptance of the Presentation constitutes your agreement to (i) keep confidential all the information contained herein, as well information derived by you from the information contained herein (collectively, "Confidential Information") and not disclose any such Confidential Information to any other person, (ii) not use any of the Confidential Infor any purpose other than to evaluate your possible investmentin PLAY, (iii) not copy this document without PLAY's prior consent, and (iv) promptly return this document and any copies hereof to PLAY upon PLAY's request.

No representation or warranty, express or implied, is or will be made by PLAY, Arctica or Fossar and/or their respective employees, board members or other related parties, as to the accuracy, completeness or fairness of th information or opinions contained in this Presentation and any reliance the recipient places on them will be at their own sole risk.

Any statement contained in this Presentation that refers to an estimated or anticipated future results or future activities are forward-looking statements that reflect current analysis of existing trends, information and p Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially and adversely affect the outcome and financial effects of the plans and events described h There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. As a result, these statements are not guarante future performance, and the recipient is cautioned not to place undue reliance on them.

This Presentation has been produced for the purpose of a market sounding under Article 11 of the Market Abuse Regulation (Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse) ("MAR") as it forms part of the law of Iceland under Act. No. 60/2021. PLAY, Arctica and Fossar do not consider information in this Presentation to be inside information.

This Presentation is for informational purposes only and shall not be construed as a prospectus, offering memorandum, an offer or solicitation for purchasing or selling any securities or financial instruments, nor shall it it) or the fact of its distribution, form the basis of or be relied upon in connection with, or act as any inducement to enter into, any contract or commitment or engage in any investment activity whatsoever relating to an The issuance of the Presentation shall not be taken as any form of commitment on the part of PLAY to proceed with any transaction. In furnishing this Presentation, PLAY undertakes no obligation to provide the recipient wit access to any additional information or to update this Presentation.

Any recipient of this Presentation is encouraged to seek their own financial advice and familiarizing themselves with various risks associated with possible investments.

Arctica and Fossar act as financial adviser only to natural or legal persons which Arctica and Fossar have a written agreement with and no-one else. Arctica and Fossar will not be responsible to anyone other than PLAY (whe recipient of this Presentation or not) for providing advice or the protections offered to clients of Arctica and Fossar, including determining whether a product or service is suitable or appropriate for clients. Informatio this Presentation is not tailored to anyone, such as with regard to financial situation, investment plans or other special needs. Any recipient of this Presentation is encouraged to seek its own financial advice, as well a itself with various investment opportunities on offer, risks associated with possible investments and other issues relating directly to the recipient, e.g. legal or taxissues.

PLAY, Arctica and Fossar do not accept any liability whatsoever for any loss howsoever arising, directly or indirectly, from use of or reliance on this Presentation or otherwise arising in connection therewith. PLAY is the works of authorship in this Presentation unless otherwise explicitly stated. Any recipient or user of this Presentation shall be held to have accepted these terms by virtue of their receipt hereof.