Flyr AS — Investor Presentation 2021

Aug 19, 2021

Highlights

Introduction to Flyr

Operations

Financials

Outlook and summary

Highlights first half year 2021

Raised NOK 600 million and listed at Euronext Growth

Built organization and technological infrastructure

Completed project phase on time and on budget

World's first pure NDC/One Order based airline

Signed collective bargaining agreements with pilot and cabin unions

Received AOC from CAA Norway

First flight to Tromsø on June 30th

Highlights

Operations

Financials

Outlook and summary

A Norwegian based LCC Modern, digital and efficient setup designed by industry experts

Targeting a concentrated, demand driven route offering in high-margin markets

Note: LCC = low cost carrier 5

MISSION	MAIN PILLARS	VALUES
Flyr offers easier and more responsible air travel while taking customer experiences to new heights	Flyr will be relevant to guests by delivering outstanding customer • service and experiences at affordable prices Flyr will be efficient through operational excellence • Flyr will be an attractive employer by being transparent, inclusive, • respectful and empowering Flyr will be digital through state-of-the-art integrated IT-systems •	Responsible United Curious

Long term ambitions

Gradual development of domestic Norway and leisure Europe

Long term strategic targets

• 50 routes to 35 destinations with 28-30 aircraft
• Best-in-class digital platform for sales, distribution and decision making
• Leading organizational efficiency

Lean structure with high degree of digital and automated processes

Efficient organizational structure with digital processes Targeting best in class efficiency

• Existing organization is scalable to handle growth
• Operational planning based on data driven decision making
• Increasing crew utilization
• Decreasing FTEs in planning functions
• Targeting competitive efficiency level against European ULCC with 36 employees per aircraft
• Social responsibility through domestic collective bargaining agreements

Highlights

Introduction to Flyr

Operations

Financials

Outlook and summary

Organization in place – fully scalable for expansion

• Management team with extensive aviation experience
• All administrative and organizational functions in place
• Signed collective bargaining agreements with domestic pilot and cabin unions
• Fully integrated multiplatform web-based booking-system
• NDC/One Order
• State-of-the-art operational technological infrastructure
• All systems off the shelf cloud-based SaaS solutions

• Ticket pre-sale from May 31st

Routes from Oslo to: Domestic

Tromsø, Bodø, Harstad/Narvik, Bergen, Trondheim

International Nice, Alicante, Málaga

• First aircraft, Boeing 737-800, delivered on June 4th
• Received AOC by CAA Norway mid June
• First flight from Oslo to Tromsø June 30th
• 4 flights on first and only operating day in Q2

The Flyr Family

• By end of 2021, Flyr will have 250 - 300 employees in total, all based in Norway.
• Headquarters in central Oslo fully established with administrative and operational functions.
• Flyr Customer Care established, with local presence in Oslo and focusing on Norwegian -speaking employees eager to go the extra mile for our guests.
• For requests made to Customer Care, satisfaction was measured to 94%+ in July across all channels, with an average waiting time below one minute.
• In June, Flyr and the company's cabin union and pilot union signed collective agreements valid until March 2024.
• All employees will be part of the company's profit sharing program.
• Continuing to build an open, friendly, lean and small organization – with a strong focus on empowering and trusting members of the Flyr Family to make good, customer -friendly decisions.

Building a state-of-the art IT platform to enhance customer experience and cost efficiency

State NDC One Order IT architecture enables: -of-the-art IT platform increasing customer experience

• Simple booking with frictionless point-to-point journey with no unforeseen charges or costs for the customer
• Data-driven compliant, relevant and personalized communication across multiple customer journeys and channels
• Decreased marketing spend and higher ticket sales conversion due to personalized, efficient communication and dynamic pricing

Cost reduction

Less complexity Customer satisfaction

Agility and innovation

Highlights

Introduction to Flyr

Operations

Financials

Outlook and summary

Result in the period consists primarily of project/start-up costs with only four flights in second quarter

• Revenue reflects one day of operations with four flights
• Four flights between Oslo and Tromsø on June 30th
• Personnel costs primarily administrative, with cabin and pilot crew expenses building up in late Q2
• Majority of other operating expenses related to project/start-up
• IT development costs related to SaaS solutions. Total of NOK 15 million expensed in 1H
• Include expenses for attaining operating license and sourcing aircraft
• Net financial items include FX effects of lease liabilities denominated in USD of NOK 6 million

Income statement

(1 NOK) 000 ,	Q2 2021	1H 2021
Revenue	250	250
Personnel expenses	20,921	30,908
Other operating expenses excl. depr	34,114	46,013
EBITDAR/EBITDA	-54,784	-76,671
Deprecation and amortisations	3,771	4,495
EBIT	-58,556	-81,167
Net financial items	-6,157	-6,223
EBT	-64,713	-87,390

Cash burn according to plan

• Cash flow from operations negative at NOK 46 million
• EBITDA of NOK -54 million plus positive effect of changes in working capital of MNOK 9
• Cash flow from investment activities negative NOK 15 million
• Mainly investment in IT infrastructure, qualified for capitalization under IAS 38
• Cash flow from financing activities at NOK 585 million in first half year
• NOK 600 million capital raise issue on March 1st

Cash flow statement

(1,000 NOK)	Q2 2021	1H 2021
Cash flow from operations	-45,566	-57,405
Cash flow from investing activities	-15,438	-26,551
Cash flow from financing activities	246	584,962
Net change in cash	-60,758	501,007

Total cash burn for building an airline from scratch NOK 94 million

Total cash movement since startup

• Total funding of NOK 609 million since start-up in October 2020
• Cash used in project NOK 94 million
• Operations NOK 62 million
• Capitalized IT Investments NOK 23 million
• Lease deposits NOK 9 million

Funding OPEX Investments Cash at June 30 NOK mill

Total cash flow

Solid financial position with NOK 515 million in cash at end of Q2

• Equity ratio of 68.4% at 30.06 • Long term liabilities of NOK 161 million • All related to leasing liabilities • Current liabilities of NOK 76 million • Short term leasing commitments of NOK 34 million • Trade and other liabilities totalling NOK 35 million • Available cash NOK 514.9 million at the end of Q2 2021
• Strong financial position to fund expanding flight operations

Balance sheet as per 30.6.2021

Long term liabilities

Current liabilities

Assets Equity and liabilities

Current assets ex. cash

Cash and cash equivalents

Non-current assets

0

100

200

300

400

500

600

700

800

NOK mill

Highlights

Introduction to Flyr

Operations

Financials

Successful operations in first month, with great reviews from customers

The route ahead: Demand-driven growth

• Targeting domestic high demand routes and selected European leisure destinations
• Expansion dependent on Covid-19 development and impact
• Experiencing a trend of bookings close to departure date, expect this trend to continue
• Plan for 6-8 aircraft at YE 2021, 12- 18 YE 2022

Routes currently on sale Stepwise domestic and international expansion

Summary

Well funded to exploit unique business opportunity

Experienced management team and competent organization in place

State-of-the-art IT platform ensures great customer experience and operational efficiency

Start-up in recovering Norwegian domestic market - first flight June 2021

Flexible business plan, allowing for stepwise expansion

"Bringing people together through easy, friendly, reliable, affordable and sustainable air travel"

Next event:

Q3 2021 release Financial and traffic figures

November 11th, 2021

Appendix

Management team

Tonje WikstrømFrislid – Chief Executive Officer

Tonje Wikstrøm Frislid became Flyr's CEO in April 2021. She came from her job as unit director in Coor. Wikstrøm Frislid has previously worked for Unibuss and the airline Norwegian. Tonje has a study background in economics, political science and international communication.

Brede Huser – Chief Financial Officer

Brede Huser started as Flyr's CFO when Flyr was established. Brede has more than 19 years of experience from the airline Norwegian, where in the period 2006 - 2015 he held leading positions in the finance department before he in 2015 became director of Norwegian Reward. Before joining Norwegian, Brede worked in finance at Orkla, Arthur Andersen and Ernst & Young.

Asgeir Nyseth – Chief Operating Officer

Asgeir Nyseth has worked as COO in Flyr since 2020. Before joining Flyr, he was director of Babcock Scandinavian Air Ambulance Norway and Sweden. He also has extensive experience from the airline Norwegian, including as COO. Asgeir also has a background from Lufttransport where he was CEO before joining Norwegian.

Alf Sagen– Chief Technology Officer

Alf Sagen became a part of Flyr in 2021. He has worked as a consultant with and for various players in the aviation industry for many years and CEO in the company Nagarro AS. Sagen participated in the expansion of the airline Norwegian in 2002 and has since held many roles in the company, including responsibility for "ticketless" ticketing.

Thomas Ramdahl – Chief Commercial Officer

Thomas Ramdahl started as Flyr's CCO when Flyr was established. He came from his job as sales director at Høegh Autoliners. Ramdahl previously had more than 20 years of experience from the aviation industry in Norway, and most recently as commercial director of the airline Norwegian from 2014 until he joined Høegh.

Frode Berg – Chief Legal & Strategy Officer

Frode Berg has been part of Flyr since 2020. He has previously worked as legal director in the airline Norwegian and has also been a partner in the law firm Simonsen Vogt Wiig. Frode studied law at the University of Tromsø and has a Master of Laws (LLM) from the University of Cambridge.

Bjørn Erik Barman-Jenssen – Chief Ground Operations Officer

Bjørn Erik Barman-Jenssen has been with Flyr since its establishment. He came from the job as EVP Operational Development in the airline Norwegian. Bjørn Erik has solid aviation professional experience, with over 33 years in the industry. In addition to Norwegian, he has worked in both Braathens and SAS. Bjørn Erik established Norwegian Cargo AS and has, in addition to other positions, held the role of CEO of Norwegian Air Resources AS.

Board of Directors

Erik G. Braathen – Chairman of the board

Erik G. Braathen is the founder and chairman of Flyr. He has extensive experience from the airline business, including being the CEO and part owner of Braathens as well as the chairman of the board of Norwegian Air Shuttle until 2009.

Mr. Braathen is educated from the University of Washington and American Graduate School of International Management. Mr. Braathen has been a member of the board since 2021 and holds 23,051,250 shares in the company.

Tord Meling – Board member

Tord Meling is a board member of Flyr and currently holds the position as investment director of Ojada AS. He brings over ten years of experience from Norwegian Air Shuttle, including close to six years as the head of aircraft financing. Mr. Meling has Master of Science in Business and Economics from the Norwegian School of Economics. Mr. Meling has been a member of the board since 2020 and holds 750,000 shares in the company.

Maurice Mason - Board member

Maurice Mason has well over 30 years of experience in commercial aviation with a particular focus on developing low cost airlines around the world. Mr. Mason is based in Ireland and is the managing director of Wellbeing Financial Services Unlimited (d/b/a Kite Investments), which was established by him in 2002. Among other investments, Kite co-invested with Irelandia, the Ryan family investment fund, until May 2012, in the development of low cost airlines in Asia (Tiger Airways), the US (Allegiant Travel Company) and Latin America (VivaAerobus in Mexico and Viva Colombia). Maurice graduated from Trinity College Dublin in 1985 with degrees in Mechanical Engineering and Maths. Mr. Mason has been a member of the board since 2021 and holds 750,000 shares in the company.

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