Gilat Satellite Networks Ltd. · NASDAQ:GILT
Gilat Satellite Networks — Investor Presentation (August 2021)
19 slides from Gilat Satellite Networks's investor presentation, August 2021
Slide 1: Gilat Satellite Networks Investors Presentation August 2021
GILAT SATELLITE NETWORKS Investors Presentation AUGUST 2021 1 | Proprietary and Confidential
Slide 2: Forward Looking Statements Disclaimer
FORWARD LOOKING STATEMENTS DISCLAIMER Certain statements made in this presentation that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words "estimate", "project", "intend", "expect", "believe" and similar expressions are intend
Slide 3: A World Leader in Satellite Communications
A WORLD LEADER FIXED MOBILITY IN SATELLITE NETWORKS SOLUTIONS COMMUNICATIONS Cellular Backhaul Aero / IFC 2G 3G 4G 5G Telecom services Maritime Enterprise Land INNOVATIVE Consumer Defense GROUND EQUIPMENT NGSO TECHNOLOGY +800 Employees 1987 Founded 20 Sales Offices 5 R&D Centers 3 NOC Centers GILT N
Slide 4: Leading Global Customer Base
LEADING GLOBAL CUSTOMER BASE SATELLITE OPERATOR RTComm RTRS 100+ COUNTRIES 300+ CUSTOMERS 900+ NETWORKS SYSTEM INTEGRATORS 4 | Proprietary and Confidential
Slide 5: Uniquely Positioned to Unlock Growth Opportunities
UNIQUELY POSITIONED TO UNLOCK GROWTH OPPORTUNITIES Post COVID-19 IFC Rebound, Free WIFI Tailwind 1 Long term IFC investment cycle 4G/5G Ubiquitous Connectivity Bridging the Digital Divide 2 5G Total Addressable Market expanding dramatically 3 NGSO Constellations - Abundance of Capacity Large capital
Slide 6: Post COVID-19 IFC Rebound Includes Free WiFi Tailwind
POST COVID-19 IFC REBOUND INCLUDES FREE WIFI TAILWIND LONG TERM IFC INVESTMENT CYCLE 1 Aero Antennas 400Mbps Modem Superior Passenger Experience Transceivers Ground Equipment ENABLING LARGE IFC GLOBAL NETWORK GLOBAL COVERAGE | > 30 SATELLITES | 18 TELEPORTS | 20 AIRLINES | GLOBAL NETWORK MANAGEMENT
Slide 7: Post COVID-19 IFC Rebound Includes Free WiFi Tailwind
POST COVID-19 IFC REBOUND INCLUDES FREE WIFI TAILWIND LONG TERM IFC INVESTMENT CYCLE 1 Expanding Fleets (2029) The Shift to Free WiFi Service Revenues (Commercial Aviation) COMMERCIAL AIRCRAFT BUSINESS JETS (Ka/Ku) (Ka/Ku) $B 5 ~18,500 ~7,700 4 (2029) (2029) CAGR 7.9% CAGR 18.4% 3 ~ 7,100 ~1,400 (20
Slide 8: 4G/5G Ubiquitous Connectivity Bridging the Digital Divide
4G/5G UBIQUITOUS CONNECTIVITY BRIDGING THE DIGITAL DIVIDE 5G TOTAL ADDRESSABLE MARKET EXPANDING DRAMATICALLY 2 OF SATELLITE BACKHAUL 4G/LTE MARKET SHARE { GILAT, 2021 } GILAT CONTINUES TO LEAD IN SHIPMENTS WITH BIG WINS AND BUSINESS EXPANSIONS WORLDWIDE EQUIPMENT CAPACITY, SERVICE & EQUIPMENT ~$500M
Slide 9: 4G/5G Ubiquitous Connectivity Bridging the Digital Divide
4G/5G UBIQUITOUS CONNECTIVITY BRIDGING THE DIGITAL DIVIDE 5G TOTAL ADDRESSABLE MARKET EXPANDING DRAMATICALLY 2 HIGH SPEED Speeds Innovative >1Gbps Wideband Technology FLEXIBLE Satellite Ground Utilize SDN/NFV, NETWORK Segment Integration Cloud, Edge Computing ARCHITECTURE Into 5G Eco-System & Networ
Slide 10: NGSO Constellations - Abundance of Capacity
NGSO CONSTELLATIONS - ABUNDANCE OF CAPACITY LARGE CAPITAL SPENDING IN SATELLITE INDUSTRY 3 GEO 35,786 km ~550msec HTS/VHTS ~50-500 Gbps MEO 2,000-10,000 km SES/O3B ~1-3 Tbps ~120msec 22 Satellites LEO 500-2,000 km ~15msec Amazon Telesat OneWeb SpaceX ~3-8 Tbps ~2.5 Tbps ~10+ Tbps ~10+Tbps 192-300 Sa
Slide 11: NGSO Constellations - Abundance of Capacity
NGSO CONSTELLATIONS - ABUNDANCE OF CAPACITY LARGE CAPITAL SPENDING IN SATELLITE INDUSTRY 3 GILAT'S PROVEN NGSO TECHNOLOGY mPOWER Gilat to provide ground segment for O3B mPower LEO CUSTOMER Potential of over $50 million to supply gateway solid state power amplifiers Successful demonstrations with Tel
Slide 12: Strong Tailwinds in Defense
STRONG TAILWINDS IN DEFENSE INCREASED FOCUS ON MILITARY SATCOM NETWORKS 4 Transportable Satcom Network GOVERNMENT Military Unmanned Aircraft & MILITARY SATELLITE Aerial Vehicle COMMUNICATIONS Expected Market Value ~$930M in 2025 Source: NSR 2020 On-the-Move On-the-Pause HIGH-BANDWIDTH REQUIRED IN BA
Slide 13: Peru Terrestrial Networks Investment Shifting to Harvest
PERU TERRESTRIAL NETWORKS "INVESTMENT" SHIFTING TO HARVEST RECURRING REVENUE MODEL 5 PERU – PRONATEL (FITEL) PROJECTS • Six regions awarded to Gilat (~$550M) • ~$335M construction revenue • Four regions passed government acceptance, 2 regions planned by 2023 • Revenue recognized by June 30, 2021 ~$2
Slide 14: Financial Indicators Highlights
FINANCIAL INDICATORS HIGHLIGHTS 14 | Proprietary and Confidential
Slide 15: Segment Commentary
SEGMENT COMMENTARY US$ MILLIONS FIXED NETWORKS 33.2 • 2020 was effected by the COVID19 pandemic 30.4 30.8 27.3 23.0 22.8 25.1 25.3 • 2021 revenue to be significantly higher than 2020 21.8 • 2021 growth driven by Cellular Backhaul and Enterprise markets, as well as operations in Peru Q2'19 Q3'19 Q4'1
Slide 16: Q2 2021 Profit and Loss Highlights
Q2 2021 PROFIT AND LOSS HIGHLIGHTS US$ MILLIONS Q2/21 Q1/21 Q4/20 Q3/20 Q2/20 Revenue 56.9 44.7 42.6 37.3 38.3 Gross Margin 29% 28% 31% 25% 25% Operating Expenses / (Income)1 17.1 (49.4) 20.3 13.0 GAAP 16.0 Operating Income / (Loss) 1 (0.3) (3.7) 62.7 (10.9) (3.5) Net Income / (Loss) 1 (0.1) (5.1) 6
Slide 17: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS US$ MILLIONS Q2/21 Q1/21 Q4/20 Q3/20 Q2/20 Cash1 82.0 75.6 116 77.2 85.3 DSO2 65 77 76 84 79 Debt 0.0 0.0 4.0 4.0 4.0 Cash from (used in) operations3 8.4 0.3 60.4 (7.1) (6.6) Equity 228.7 228.1 233.8 225.3 236.9 1) Cash includes Cash and cash equivalents, short-term deposits
Slide 18: Summary
SUMMARY UNIQUELY POSITIONED TO UNLOCK GROWTH OPPORTUNITIES NGSO/VHTS Opening New Markets Leading in Main Growth Areas – Cellular Backhaul (4G, 5G) & In-Flight Connectivity Increased Focus on Military SATCOM Networks Investing in Product Leadership and Innovation Focused on Profitable Growth 18 | Pro
Slide 19: Thank You
THANK YOU Gilat Satellite Networks | info@gilat.com | www.gilat.com
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