Fly Play hf.

Investor Presentation • Sep 28, 2023

End of Summer Information Meeting Reykjavik 28.09.2023

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PLAY at a glance

Key performance indicators for Summer 2023 (June-August)

Despite increased scale in our operations, we have continued to deliver a high OTP

Monthly on-time performance (OTP)

Arrivals

Apr-22 May-22 Jun-22 Jul-22 Aug-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 May-23 Jun-23 Jul-23 Aug-28

Versus main competitor (ppts)1/

Apr-22 May-22 Jun-22 Jul-22 Aug-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 May-23 Jun-23 Jul-23 Aug-23

PLAY has been recognized and awarded by the industry and our customers

CAPA Best Start-up Airline 2022

Best Low-Cost Airline in North Europe - World Airline Awards

PLAY received recognition from the Icelandic Satisfaction Scale 2022

Our cabin crew nominated as the best cabin crew by USA Today

What have we accomplished 3 p

• Paniel Sneebjörinsson Jan 11

We have gone from zero to 10 aircraft, over 500 employees and 38 destinations

• Number of aircraft at year end
• 2) 2020 = number of employees at the end of 2020. 2021-22 = number of employees at the end of Q3 = number of employees as of August 2028
• 3) Number of seasonal and year-round destinations operated to and on sale

Our capacity has grown significantly

Year-on-Year Change in Available Seat Kilometers (ASKs)

1) Q3 2023 number based on actuals for July and August and forecast for September

We have managed to increase our load factor...

Year-on-Year Change in Load Factor for Select European Airlines™

Summer 2023 vs Summer 2022

Note: Summer defined as the period from June to August

1) Based on monthly traffic reports and managements estimates

11

...and our unit revenue during the summer months

5% Passenger

Improvement1)

RASK

Note: Numbers above based on results for the period June to August 2022. The numbers on sides are based on quarter'y numbers, eg, Q covers the period July to September

1) RASK = Revenue per available seat kilometer. Includes only air free sold online. Revenue from onboard sales at third-party products, sales of third-party products, sales airports and cargo excluded

What is the conclusion?

Significant capacity growth nearly always leads to a decline in unit revenue

• › Capacity/seats get added in bulks, i.e., for us, 180-214 seats per aircraft, whereas passengers do not come in bulks
• › Despite significant growth in capacity, PLAY has managed to increase unit revenue

PLAY

Historical data shows that exiting high growth mode leads to unit revenue improvement

Available Seat Kilometers1)

Millions

1 - 2023 numbers based on actual numbers from January to August and latest plans of 2023. 2024 numbers based on latest capacity scenarios for 2024, which can be subject to change

PLAY

Our ancillary yield has grown significantly in 2023, but we still have room for improvement

Ancillary Revenue per Passenger™

USD per passenger

1) 2023 estimated number based on latest for year ending 31 December 2023. Numbers for other airlines based on Q2 2023 actual results

Markets that we launched last year posted above average unit revenue growth this summer

• › In summer 2023, we are seeing above-average improvement in unit revenue for markets that were June-August 2023 vs 2022 launched back in 2022
• 31% of our capacity in summer 2023, measured in available seat kilometers, was new
  • › Close to half of the new capacity went on sale in Q1 2023, e.g., Amsterdam, Glasgow, Venice, Aalborg, Billund, Dusseldorf and Toronto
  • Short lead time to sell driven by uncertainty around access to airports, i.e., slots

Despite increased competition on some routes in summer 2023, our margins improved

Note: Summer refers to the period June - August

• 1) Based on OAG Schedules
  • 2) Based on internal route profitability information

Financial Highlights Birgir Jónsson

Strong turnaround to net profit in summer of 2023

Summer 2021 , 2022 and 2023 (June – August)

Revenue nearly doubled from last summer

USD 15 million turnaround from last ) summer

› PLAY is profitable during the summer and the business model is working well

Q3 estimates

First quarterly net profit

All financial estimates are based on management in this presentation. Such estimates are subject to various uncertanties, including but not imited to the price of oil, passenger demand, competition, and the global macroeconomic environment.

Price is the dominant consideration when passengers choose which flight to take ...

Overall, When Choosing Which Flight to Take, Price Is the Dominant Consideration Nearly Half of Respondents Ranked Ticket Prices Number One

In choosing among flights, which of the following criteria are most important to you? Please rank the following criteria, with 1 being the most important to you and 6 being the least most important to you?

2021 Flyers	Overall Rank	Mean Score	% of Respondents Ranking #1
Ticket price/value		2.15	46
Nonstop flight option (vs. connecting)	2	2.60	25
Departure/arrival time	3	2.68	17
Percentage of seats that are occupied	4	4.33	4
Availability/quality of inflight WiFi/entertainment	5	4.57	4
Availability/quality of food/beverage service	6	4.67	4

Source: Ipsos survey of American adults (February 2022)

airlines.org

Source: Airlines for America. Air Travelers in America, Key Findings of a Survey Conducted by Ipsos, February 2022.

...especially leisure travelers, and most travelers using KEF are leisure travelers ...

Journey Purpose of Passengers at Selected European Airports and KEF11

...and they want low fares, which are enabled by low cost, as reflected in our growing share of our home market

PLAY's Estimated Share of the Outbound Market FROM lceland and Seat Capacity at KEF airport11

Note: Summer refers to the period June to August

PLAY

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1) Estimated using Iceland Tourist Board data, IATA DDS data, OAG Schedules and management estimates

Outlook

Pilot Recruiting

• › 18 pilots, out of 125, leaving in the next few weeks/months
  • › We have already hired to fill most of those positions, and they have started training
  • › Capacity during winter 2023/24 is 20% lower than during the peak summer 2023
  • › Upgrade process for next season has already started

  • We have advertised and already received hundreds of qualified applications

  • › Pilot turnover is therefore not an issue that will impact operations but it is always sad to see good people leave
• › We made changes to our collective bargaining agreement (CBA) to bring our terms up to market standards
  • › PLAY is now very competitive in the European pilot market

  • This is on top of a compelling offer for pilots that includes a desirable work-life balance, schedule flexibility and rapid promotion opportunities

  • Changes to CBA estimated to increase CASK Ex-Fuel by 1% on annual basis in 2024

  • › Current CBA up for renegotiation in 2025

Fleet plan

Total Number of Aircraft1)

• › Currently exploring the option of introducing seasonal wet lease capacity for summer 2024
• PLAY has signed Letters of Intent for two additional Airbus A320NEOs for 2025
• › Looking to expand the fleet to 14 aircraft in 2025 if aircraft can be secured at the right terms

Cash neutral operation

Neutral cash flow in 2023 excluding investments in fleet expansion

Amounts are in USD millions

*All financial estimates are based on management s analysis at the time of this presentation. Such estimates, including but not limited to the price of oil, passenger demand, competition, and the global macroeconomic environment.

		2022	2023	2024
	Total Revenue	140m USD	~280m USD	~340m USD
se	Cash position at year end	36m USD	~28m USD	Positive cash-flow
	Number of passengers	0.8m	~1.5m	~1.8 m
	EBIT	-44m USD	~ -10m USD	Positive
	CASK Ex-Fuel	4.0	~3.7	In line with inflation

Key Takeaways