Fly Play hf.

Investor Presentation • Feb 17, 2025

Q4 and FY 2024 Results

Questions to ir@flyplay.com February 17, 2025 -

Agenda

01

Highlights

02

Financial results

03

CEO Update

Highlights

Questions to ir@flyplay.com

4

PLAY at a glance 2024

Continued strong on-time performance versus main competitor

Monthly on-time performance (OTP)

All arrivals

Versus main competitor(ppts)1)

New destinations announced in 2024

Aalborg, Denmark

Creating connections to a Scandinavian cultural city

Antalya, Turkey A gateway to the Turkish Riviera with stunning beaches and worldclass resorts

Expanding Southern Europe reach with Algarve's popular beaches

Pula, Croatia

New gateway to Istria's historic charm and coastal attractions, with increased frequency to Split

Valencia, Spain Entering Spain's vibrant, artsy Mediterranean city

New and improved at PLAY

Cargo partnership

› A new collaboration with Odin Cargo expands air freight services across Europe and North America

GDS

› Implemented in May 2024, GDS bookings have seen significant growth since launch

Stayover

Launched in January 2024, the stayover program has been steadily growing its share in PLAY's revenue

PLAY Connect

Passengers can now access more destinations through PLAY's partnership with Dohop

8

lcelanders choose PLAY

• › PLAY is the preferred airline for Icelanders travelling to leisure destinations
• › 477 thousand FROM passengers travelled with PLAY in 2024
• › 17% increase in FROM passenger carried by PLAY compared to 2023
• This positive trend in FROM passengers continues in 2025 ) as we see a 9%11 increase in forward bookings compared to the same time last year

g

Growing customer satisfaction

Customer satisfaction (NPS)

• › Increased by 27% in 2024 compared to 2023
• Ongoing improvements driven by dedication and へ excellent teamwork at PLAY

• Q4 with the highest score, despite a few challenges due to winter weather

Commitment to excellence

• › 2025 starts with a record NPS score
• › Continuously enhancing the customer experience throughout the entire journey

Net Promoter Score (NPS)

Financial results

Questions to ir@flyplay.com

PLAY

0000000000 - TF-PPF

Financial snapshot

FY 2024

• 1) Total operating and depreciation cost per available seat kilometer for route network
• 2) Total revenue per available seat kilometer
• 3) Interest Bearing Debt

12

Financial highlights

Q4 2024

• Revenue: Revenue decreased by 10% (USD 6.7 million) vs. last year (LY), driven by reduced capacity with one aircraft on ACMI and schedule changes
• ASK: Decreased by 17% year-onyear (YoY)

• EBIT for Q4 2024: EBIT improved by USD 4.7 million vs. LY, driven by RASK increase
• Yield Impact: Load factor increased YoY, with yield remaining consistent with last year, contributing positively to EBIT

• Cash: Position of USD 23.6 million including restricted cash
• Debt: No external interest-bearing ) debt

13

Income statement Q4 2024

• Operating income declined by USD 6.7 million YoY due to a reduction in the number of aircraft in scheduled operations resulting in reduced capacity
  • › One aircraft was transitioned to an ACMI contract, aligning with the company's evolving business strategy
• EBIT improved to USD -15.3 million, compared to USD -19.9 million in the previous period
• › Income tax negative due to write-off of deferred tax assets of USD 24.1 million
  • › Uncertainty over PLAY's ability to utilize a carryforward tax loss, to offset future profits

USD million	Q4 2024	Q4 20231)	Change
Airfare revenue	37.6	41.2	-3.6
Ancillary revenue	18.3	22.2	-4.0
Cargo revenue	1.0	0.9	0.1
Other revenue	2.1	1.3	0.8
Operating income	59.0	65.7	-6.7
Salaries and related expenses	-14.7	-13.5	-1.2
Fuel & ETS	-20.4	-26.3	5.9
Other aviation expenses	-43.0	-46.0	3.0
Other operating expenses	-2.2	-4.6	2.4
Operating expenses	-80.2	-90.4	10.1
Depreciation and amortisation	6.0	4.7	1.3
EBIT	-15.3	19.9	4.7
EBIT%	-26%	30%	4 ppt
Financial expenses	-2.7	-2.1	-0.6
EBT	FT 9	220	4.1
Income tax	-21.9	4.8	-26.7
Net result for the period	-39.8	-17.2	-22.6
Other comprehensive (loss) income	-01	-23	22

14

Income statement FY 2024

• Full year operating income increased by USD 10.4 million YoY, driven by increased production

• Full year operating expenses rose by USD 11.9 million, primarily driven by increased production and salary increases, and partially offset by a reduction in fuel costs

• EBIT declined to USD -30.5 million, representing a YoY decrease of USD 7.6 million, reflecting effect from seismic activity in first half of the year and disappointing summer with overcapacity on the North-Atlantic market

• Q4 2024 demonstrated a positive shift. The business model transformation, announced at the end of Q3, began to take effect in Q4, indicating an improving trajectory

USD million	FY 2024	FY 2023	Change
Airfare revenue	192.8	192.7	0.2
Ancillary revenue	90.3	82.6	7.7
Cargo revenue	4.5	3.6	0.9
Other revenue	4.6	2.9	1.7
Operating income	29922	2313	10.4
Salaries and related expenses	-57.1	-47.8	-9.2
Fuel & ETS	-94.4	-100.1	5.7
Other aviation expenses	-112.1	-103.4	-8.7
Other operating expenses	-18.7	-19.1	0.5
Operating expenses	-23923	-270.4	-119
Depreciation and amortisation	-40.5	-34.3	-6.1
EBIT	30.5	23.0	-7.6
EBIT%	-10%	-8%	-2 ppt
Financial expenses	-20.7	-21.0	0.3
EBI	-5 13	-44.0	-7.3
Income tax	-14.7	8.9	-23.6
Net result for the period	-66.0	-35.0	-31.0
Other comprehensive (loss) income	-1 0	0.2	-1.1

Operating income 11 Q4 2024

› Yield per passenger increased by 9% YoY, driven by growth in both airfare and ancillary revenue

• › Where airfare revenues are up by 9.7% and ancillary revenue up by 8.9%
• › RASK2 improved by 17%, highlighting better revenue generation per unit of capacity

1) Without one-time or annual adjustments

2) Passenger revenue per available seat kilometer. Revenues from ACMI/charter business excluded

Operating income 11

FY 2024

• › Passenger yield declined by 3.4% YoY, primarily due to pressure on airfare yields, partially offset by ancillary revenue growth
• › Airfare revenue decreased by 5.7%, while ancillary revenue increased by 1.7%
• RASK2 declined by 1.3%, driven by
  • › Weaker airfare performance in Q1, impacted by seismic activity

  • A challenging summer season, with overcapacity on transatlantic routes leading to lower yield

1) Without one-time or annual adjustments

2) Passenger revenue per available seat kilometer. Revenues from ACMI/charter business excluded

17

CASK bridge

Q4 2024

• › Total CASK in Q4 rose by 2.1% while ex-fuel CASK rose by 6.2%
• › Unit cost impacted by reduced capacity within route network as available seat kilometers reduced by 16.6%

Adjusted CASK1)

US cents

CASK bridge

FY 2024

• In 2024, total CASK remains steady at 5.6 US cents

• Ex-fuel CASK increased by 4.7% YoY influenced by ASK reduction in Q4

Adjusted CASK1)

US cents

Balance sheet

• Cash position is increasing by 9%, with cash and cash equivalents at year end USD 23.6 million

• Trade and other receivables declined by USD 8.2 million, driven by improved collections, enhanced cash flow efficiency and improved settlement terms with acquirers

• Shareholders' equity negative at USD -33.1 million
  • › The main reason is the cautious approach to write-off deferred tax assets of USD 24.1 million
  • › This has no impact on PLAY's cash flow, operation or ability to meet its obligations

  • Negative shareholder equity is common in the airline industry2)

USD million	31.12.2024	31.12.20231
Intangible assets	13.9	14.2
Right-of-use assets	259.9	283.8
Operating assets	17.9	11.9
Deposits	11.5	13.2
Tax assets	10.3	25.0
Non-current assets	313.4	348.0
Inventories	0.9	0.2
Trade and other receivables	24.8	33.0
Prepaid expenses	1.6	2.8
Cash and cash equivalents	23.6	21.6
Current assets	50.9	57.5
Total assets	364.3	405.5
Share capital	14.0	6.8
Share premium	125.9	101.5
Other components of equity	1.3	1.2
Accumulated loss	-174.4	-107.4
Shareholders' equity	-33.1	2.0
Provisions	36.9	37.4
Lease liabilities	229.9	247.8
Non-current liabilities	266.8	285.2
Provisions	4.4	2.8
Lease liabilities	27.7	25.3
I rade and other payables	55.8	43.7
Deferred income	42.8	46.5
Current liabilities	130.6	118.3
Total liabilities	397.4	403.5
Total equity and liabilities	364.3	405.5

1) Includes adjustments due to restatement of 2023

2) American Airlines 2017-24, Delta Air Lines 2010-14 and Wizz Air 2023 to name a few internationally recognized airlines

PLAY

Cash flow FY 2024

Cash flow bridge USD million

• USD 10 million generated from operations, further supported by USD 18.4 million from working capital improvements

• USD 44.0 million repayment of lease liabilities, comprising of aircraft rentals and fixed maintenance reserves (LY USD 36.6 million)

• Share capital increase of USD 31.6 million in Q2
• › Investing activities included USD 8.4 million for operating assets and USD 3.2 million for intangible assets, offset by a USD 1.7 million deposits repayment inflow
• Closing at USD 23.6 million, maintaining liquidity supporting ongoing operations and lease commitments

21

Fuel price development and fuel hedging

› Hedge strategy

• 1-3 months Up to 60%

• 4-6 months Up to 40%

• 7-12 months Up to 30%

• Current spot (\$/MT)1) @14.02.2025 - \$748
• Hedge position helped smoothen へ out fluctuations in market price

Fuel Hedging

Current position (Hedge %, Hedge price \$/MT)

Jet Fuel Price Monthly average \$/MT

ourlook

Questions to ir@flyplay.com

PIA

PLAY going forward

Financial results called for a shift in business plan

Strong leisure market

• › While the overall financial results were disappointing in 2024, the Point-to-Point part of our network was profitable

  • Mainly catering to outbound leisure traffic

  • › In the ten years before COVID, the FROM market grew by a CAGR of 9%1)
• The share of point-to-point markets in our network is in the process of being increased

  • In 2025, Point-to-Point markets will represent ca. 30% of PLAY's seat capacity, up from 25% in 2024 and 22% in 2023

Highly sought after aircraft

• All aircraft in PLAY's fleet are secured through favorable long-term lease agreements

• Our aircraft are in high demand

• PLAY announced in October 2024 that it would start to place some of its aircraft with other operators in 2025

  • This work is advancing according to plan
  • › PLAY has negotiated commercial terms of deployment of 3 aircraft on long-term ACMI to a European airline until 2027

Leisure market delivering strong results

• PLAY's leisure markets have outperformed Europe city and North America market types every quarter

• PLAY has made changes to its business model by further increasing the emphasis on the strong leisure markets out of lceland and at the same time reducing its exposure to the VIA market

Year-on-year capacity change by market type2

1) Company data, RASK adjusted for stage length

24

Attractive fleet for ACMI

Meeting market demands with the right aircraft

• › The ACMI market has traditionally been dominated by 12-20-yearold aircraft, which were primarily used to fill gaps in carriers' networks, generally on a short-term basis

• However, airlines, including legacy, are now increasingly using ACMI as part of their fleet strategy

  • This is driven by a growing need for aircraft and engines, along with the demand for greater operational flexibility
• Economics are also shifting, making newer aircraft more attractive in the ACMI market. While lease rates for these aircraft may be higher, they offer several benefits
  • › Improved fuel/emissions efficiency

  • Enhanced technical reliability

  • More available block hours per month than 15-20-year-old aircraft

• Additionally, stricter regulations regarding environmental impact, such as noise and emissions, are further pushing the adoption of newer, more sustainable aircraft

PLAY forward

All elements of modified business model progressing as planned

• PLAY has negotiated commercial terms of deployment of 3 aircraft on long-term ACMI to a European airline until 2027

  • › Commercial terms in line with what has been communicated previously
  • › Long-term ACMI secures predictable income for PLAY

• › One aircraft operating ACMI project for GlobalX in Miami this winter 2024-25

• › Application for Maltese AOC is on track

• Schedule amended as presented in Q3 presentation

PLA

General	> RASK improvement year-on-year for the past five months, forward RASK tracking ahead of last year Network has been adjusted, focus on Point-to-Point leisure › Labor agreements expired at the end of January, negotiations in progress
Operational efficiency	Targeting 15 - 20% reduction in overhead cost in 2025 Less own production and less IT development › Improved supplier contracts and benefits from Vilnius office
Financial outlook	› Q1 25 expected to deliver similar results as last year, despite peak Easter period moving to Q2 in 2025 Changes to business model along with updated schedule expected to deliver improved results for all other quarters

Key takeaways

Q4 improved while still substandard results

Q4 in 2024 slightly better than the year before

Effects of changed business model already showing but only to a limited degree

Tide is turning

Cost reduction measures starting to take effect

Changed flight schedule is already yielding higher RASK with 2025 looking promising

Capital requirements

• › Cash position has strengthened compared to the same period last year, and business outlook much improved
• › To support liquidity, PLAY prioritizes cost control and effective working capital management, ensuring efficient operations and sustainable growth
• PLAY continuously evaluates its financial position to ensure flexibility and stability. As part of this, the company may consider raising capital within its organizational structure, depending on market conditions and strategic needs

Thank you

ARBUS ABROA

P

Questions to ir@flyplay.com

Disclaimer

This Presentation has been prepared by Fly Play hf. ("PLAY"). The information 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 of this Presentation.

No representation or warranty, express or implied, is or will be made by PLAY and/or its respective employees, board members, and parties as to the accuracy, completeness or fairness of the 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 future results or future activities are forward-looking statements that reflect current analysis of existing trends, information and plans. Forward-looking statements are subject to several 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 herein. As a result, these statements are not guarantees of future performance, and the recipient is cautioned not to place undue reliance on them.

This Presentation is for informational purposes only and shall not be construed as an offer or solicitation for purchasing or selling any securities or financial instruments. In furnishing this Presentation, PLAY undertakes no obligation to provide the recipient with 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.

PLAY does not accept any liability whatsoever for any loss howsoever arising, directly, from use of or reliance on this Presentation or otherwise arising in connection therewith.

PLAY is the owner of all 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 thereof.