Investor Overview

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 Nay Slower on the ground = trailing financial performance Ground Efficiency Is Critical ASIA AirAsia • ../ .., ./.. JuneyaO • Air G i411^ / :0 • .. Air NZ •1°I :lainan Spring ../ . .• .• ..e Scootrger• • Asians Thai • Nok • 110 90 70 50 35% 30% 25% 20% 15% 10% 5% 0% 5% 10% -15% 20% Operating Margin EUROPE RyanAir. Wizz If • Aeroflot IAG easviet, .• • ..1 El Al / Pegasus ifirinair • e. 0 * Lufthansa • .. .." • • AF-KLM SAS 0% 120 100 80 60 25% 20% 15% 10% 5% Operating Margin 4 Average Narrowbody Ground Times (Min.) 2 million + 14-20 Aug 2016 • Carriers reporting > 2000 flights 22-28 Nov 2016 • Excludes ground times > 180 minutes flights: 19-26 Apr 2017 • Narrowbodies only for FY2015 and 2016 N. AMERICA Allegiant *Alaska Spirit • .••• Delta* • JetEllue .....• ./.. ./.. ..0. Southwest ••••4. • united American • Westlet - Air Canada 120 100 80 0% 60 30% 25% 20% 15% 10% 5% Data From: ©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 k 1111W‘ j WheelTug EFTA00810813 WheelTug ...Electric Taxiing WheelTug is a unique electric taxi system with these major components installed on the aircraft Electronics Motor & Drive 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. Control Panel Optional camera: — WheelTug Vision'"' 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`/` 1y 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 eW heelTug ,.' 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 Collision Safety Margins Pushback Clearance Pushback Communications Link Disconnection Pin Removal Ground Crew Clearance Engine Start Procedures Taxi Clearance WheelTug with WheelTug Vision Pilot Ramp Supervis. Tower Control A Collision Safety Margins Al Reverse & Taxi Clearance Reverse Operation EFTA00810818 WheelTug4%. Ark All Nair WheelTug = Faster Pushback Arrival w/engines off Total Ground Time (TGT) Wheels-down to wheels-up Turnaround Time (TAT) On-block to off-block Servicing as normal Pushback without ground delay, tug or 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 2 Current Pushback Times 98% completed a,ll I 1.0 0,0,0,0 p 4, O,mmOmm,..m. 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 k-k Time (minutes) Time Benefits WheelTug Enables More Flights Non flight time 15.00 45.00 Current ....__ Taxi out —4 4— Gate time Taxi in —0. 10.97 38.03 WheelTug Savings in this scenario (year 5) are 11.01 minutes/flight of scheduled time. Savings from two-door (Twist) handling included. WheelTug pushback times are not only shorter, they are also more dependable, requiring less schedule padding by airlines to meet on-time metrics. With these efficiencies, WheelTug can open up significant schedule gains for any airline. Depending on an airline's current fleet and schedule, WheelTug productivity gains may increase 10% or more. 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" .- Benefits: ...And Adds Operational 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 assumes dual-engine @ 2.9 gal/minute Annual fuel savings, one plane 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 Annual CO2 reduction for 14,000 aircraft: hypothetical expansion across the industry — B737 / A320 only 14.5 gal 23,500 gal 236,000 tonnes 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 Arrival WheelTug k eek .4 W Future Savings: The Twist"' 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 Passenger/Aircraft Handling Departure * Based on UniTED two-door over-the-wing operations in Denver EFTA00810825 0 WheelTug kkas Nay $2,500 $1,250 Revolutionary Impact Per-flight Benefits Pushback Fees $100 Engine Wear $95 — Fuel $55 Two-door Loading $1,000 — Rapid Pushback $1,300 - Fuel Savings: $293 Fuel Savings: $90 ■ WheelTug: $2,550 Per-flight Fuel Bill: $2,250 Per-flight Profit: $1,620 Winglets NEO/MAX WheelTug Southwest Dev. Cost: $100M $10+8 < $100 MM Airlines Context NEO/MAX and winglet savings based on Southwest Airlines fuel/flight @$1.50/gallon. SWA profits from 2017. Full WheelTug savings per flight ($2,550) reached in year 8 of Financial Model / year 6 of service. Savings in year 1 of service - approx. $1,120 / flight. EFTA00810826 WheelTug 4rk Lease Model Calculate & Lease for % Letter of E> Intent WheelTug Negotiate Delivery . of Savings Savings Minimal annual maintenance and no CapEx make WheelTug an easy financial decision for airlines. Renegotiate Payment Integrate into Airline Operations Demonstrate Additional Savings EFTA00810827 ti WheelTug kek WheelTug Markets Initial Markets Boeing 737NG in service (6,000+) Airbus A320 family in service (7,000+) Future 737 and A320 planes (1,000+/yr), incl. MAX/neo Potential markets Regional jets (Embraer, Bombardier, Mitsubishi) Larger widebody aircraft (B777/787, A350/380) Private jets and certain military aircraft EFTA00810828 Aircraft different markets Status Enter Service Retrofit? Removable? Weight (lb / kg) Patent families Savings due mostly to Est. savings / flight WheelTug Competition ÷ WheelTug il SAFRAN 11 Boeing 737-700 and -800 I. Other aircraft families to follow FAA Cert Plan Accepted 2019 Yes Yes 300 / 135 100+ issued Time (always valuable) $2,550 Airbus 318-321 Expansion uncertain Marketed, not yet re-started 2021? ..J Yes AM NO NM "I= 880 / 400 25-30? 'II Fuel (lower savings if fuel is cheap) $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 LA13 -i WheelTug Timeline and Milestones Pre-2012 2012 2013 2014 2015 2016 2017 First wheetTug TestUnit& Snow Demo In-Wheel Twist Demonstration) Invented) d I) Cert Plan CertPlan Certifialion Engineering Submitted Approved to FAA 1/4., by FAA 2018 2019 Certifica don TestProgram E I M ) AU tatia J . KLM ] - airberUn ) r -M alaysial "Kenya Airways ) Jet Ai rway—s- 1 r On u r--- ) r Undisd. 1 - Icelandair") rAir Transki Israir) OlPitorenclorT) Volaris ) HNA Group ] —Sun Express ) (Prague Ortrice Grp Airport (now Phixos) rUltra ) Or:CSAT ) niprog %TAG versan ) ill?rvengerp grarcoSemco) Entry Into Service r ailladd rUn 9 j Dynamics WheelTug plc Proprietcry and Confidentiat, subject to Non Disclosure Agreement Dates approximate. HNA Group includes Hainan Airlines and several other subsidiary airlines. Status of airberlin slots tbd. EFTA00810831 WheelTug ksek •11 rair • Certification Plan acceptance December 2016 • Clear and agreed path to approval • Entry into service mid 2019 • International certification via bilateral agreements FAA Acceptance of the Cert. Plan + AVENGER AAAAAAA CW SOCUTIONS P • 103 N. Main Street - Suite 106. Greawilk, SC 29601-2756 (864) 232-8073 Date. March 2, 2017 Subject: Wheel Tug FAA Certification 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 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 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. 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 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 Commercial Director of development, finance, and strategy. Responsible for shareholder, industry, and partner relationships ) Former expert (Nike, IBM, ABS Jets, Strategic Director 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 Team Relations Safety Manager Mark Lardas Joseph Cox Former tech. director and principal engineer, DRS Avionics. Manufacturing & Des'gn • Avenger (Certification • Aversan (Cockpit) • Ultra (Control Electronics) • Phixos (Software) • TAG (Test/Maint. Procedures) • HarcoSemco (Wiring) • Stirling Dynamics (LG Analysis) • CSAT (Test Measurement etc.) • Air Transat (Test Aircraft) • Kalco Machine (Mfg.) • Other non-disclosed partners Chief Engineer John Hanson Mechanical Engineer 1 Corporate Support FAA DERs In-Service Operations Jan Vana Patent Team WheelTug Vision: (taxi camera) • Fokker Services • Dresden / FTI Airline/Airport Operations • Undisclosed training organization • Czech Air Navigation Services (ATC Proc.) • Prague Airport (Airport Procedures) • Czech Technical University (airport ops) • Ongoing discussions with many airports IT Legal Industry & Corp. Lawyers rroauct Lust. bupport In discussion with regional organizations Expert Advisory Groups • General Group: >250 people. Includes shareholders, lessors, pilots, contractors, & former airline/airport CEOs • Marketing Group: 35 Agents worldwide for hundreds of airlines • Investment Agents EFTA00810833 WheelTug ka ir Recent Press Daily Updates. Access Anywhere WheelTug Begins E-Taxi Certification And Promises Pushback Savings Graham Warwick I Aviation Week el Space Technology au in SKAR G.' ReConwmtnd <2j4 CnaWaNT0. A push please Motorised nose wheels will let planes leave gates by themselves The Economist 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 T lOURNAI DE I 'AVIATION r WheelTug entame son programme de certification avec le feu vert de la FAA Emil* Drab Orsenum Nuys Nwyq ore Oats taught. WheelTug touts taxi system's time savings Graham *nut I ATWONUS aorta muneMUM <Wary. Whonalluct alocbu tau Systam WheelTog has Intsn work to oompleir clock/Anvil, of ii ekviric la•i ,ytternafirr FA G. seatutats Jan .0 :Ott OPAMENTS 0 FlightGlobal WheelTug reveals timeframe for planned service entry Electric taxi specialist WheelTug expects as nose wheel drive AWN WheelTug Receives FAA Go-Ahead for Airplane E-Taxi System Certification Plans HOSPODARSICE NOVINY Praiske tetiite miiie mit jako prvni na svelte pfevratnou novinku v pohybu letadel po pink A Marek Maer reclaim( 12. 12. 2016 00:00 (aktuauzovano 12:26) udatosa ilk 10 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 N SW Pro Forma WheelTug Aircraft in Service millions USD 2000 2500 1757 1500 2000 Existing Backlog: 1500 1000 1,072 Aircraft 831 1000 500 229 500 0 63 0 0 2018 2019 2020 2021 2022 Total Cash Flows 1,615.9 2018 2019 2020 2021 2022 2018 Cash Expenses $ -0.97 Total Revenue -Cash Flow 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 Product Development $8,141,333 of which: Mgmt + Team $0.6 Wheel Engineering 0.9 Landing Gear Eng. 4.4 Testing + Other 2.2 Total Development and Certification Cost: $11.8 MM (2018-2019) Production Setup Expense $170,000 Entry into Service $870,000 Sales & Marketing $615,000 General & Administrative $920,000 Patent Expenses $1,120,000 WheelTug Confidential EFTA00810837 WheelTug 4rk 2022 Operating Cash Flow Chart Figures in Millions USD Spares: 95.9 Production: 252.4 SG&A: 338.2 _ 1 _ M Security Deposits: 217.5 All Leases: 2,194.8 Costs: Revenues: $686.5 $2,412.3 1,757 WheelTug Systems in Service by the End of 2022 WheelTug Confidential Confidential EFTA00810838 WheelTug 714 r)fr 2004 Invention of concept Summary Value • Ground efficiency vital • WheelTug Ground time reduction: up to 30% • Savings/aircraft: $2+ million/yr 2004-2016 Development ' of technology Technology • Unique capability • 100+ issued patents, 30+ pending 2018 Certification & Production Ramp-up $12M investment FAA Accepted • Cert Plan: December 2016 • Clear path to service Challenges for Potential Competitors 2019+ 2022 Revenue: $2+ billion/yr Net Income Margin: 75% Backlog • 1,000+ aircraft (- 7% of market) • Market growth: 1000 aircraft/year Unique Capability Technical Strong IP Certification Alliances Protection Process EFTA00810839 WheelTug 4rk .4 Investment Opportunity • We are seeking to raise $12 million to fund the remaining certification testing and FAA approval for the Boeing 737NG family. • We're open to a variety of deal structures, including revenue purchase plans. • Strategic deals that will raise these funds are in the works. Until they close, we'll continue with large and mid-size investors - the same way we always have. • We welcome your interest and participation. • Let's talk! [email protected] www.wheeltug.com Forward-looking statement available at http://www.wheeltug.com/fls.shtml EFTA00810840 Wheel, Ar WheelTug Makes Flying Faster Note: While our product will first go into semice for the 737NG family, no endorsement by Boeing is implied. EFTA00810841