Inmarsat — Corporate Update (May 2011)
21 slides from Inmarsat's corporate update, May 17, 2011
Slide 1: Maritime business update
Maritime business update Partner WebEx 17 May 2011 Perry Melton, Chief Operating Officer James Collett, Director Maritime Business
Slide 2: Agenda
Agenda Acquisition of Ship Equip Maritime voice initiatives 2011 outlook and priorities Q&A
Slide 3: Acquisition of Ship Equip
Acquisition of Ship Equip Acquisition completed 28 April 2011 Based in Ålesund, Norway, Ship Equip is a leading provider of VSAT maritime communications services to the shipping, offshore oil & gas and fishing markets More than 900 vessels in billing today, generating revenues of $56M in 2010 Substa
Slide 4: Ship Equip acquisition rationale
Ship Equip acquisition rationale Ship Equip’s business is complementary to the existing Inmarsat maritime business Ship Equip are successful in maritime markets at the centre of our plans for Global Xpress and will help us deliver superior returns on our investment in the Global Xpress programme The
Slide 5: Organisation & channel strategy
Organisation & channel strategy Ship Equip acquired by Inmarsat Solutions Limited. Will operate as a separate subsidiary alongside the Stratos and Segovia businesses with Jim Parm providing executive oversight on behalf of Inmarsat Solutions and Ivar Nesset will continuing to act as Ship Equip’s CEO
Slide 6: Next steps with Ship Equip
Next steps with Ship Equip Inmarsat now has direct access to an unsurpassed range of current and future maritime connectivity options Work commenced on creating a logical, rationalised and comprehensive product and service portfolio Our Goal: All maritime end-users are able to choose a level of capa
Slide 7: Agenda: Maritime voice initiatives
Agenda Acquisition of Ship Equip Maritime voice initiatives 2011 outlook and priorities Q&A
Slide 8: Maritime voice initiatives - background
Maritime voice initiatives - background Inmarsat maritime voice revenues have been in decline for some time: • Conversion of higher valued Inmarsat-B voice to FleetBroadband • Substitution of voice communications by email and data communications • Competitive pressures Extensive review began Q4 2010
Slide 9: Maritime voice – the specific changes
Maritime voice – the specific changes FleetBroadband voice wholesale charges revised from 1 April 2011 for all existing and new activations, enabling Suggested Retail Prices (SRPs) of $0.55/min, PostPaid and PrePaid FleetPhone PrePaid launched 30/06/11 with an SRP of $0.55/min Existing and Evolved (
Slide 10: Maritime voice – next steps
Maritime voice – next steps Inmarsat will continue to promote the changes and the SRPs with messages centering on: • 55cts Pre and Post Paid rates for FleetBroadband; and • All maritime PrePaid services now available 24/7/365 and at SRPs in the range of $0.55 - $0.95/min Print and on-line advertisin
Slide 11: Agenda: 2011 outlook and priorities
Agenda Acquisition of Ship Equip Maritime voice initiatives 2011 outlook and priorities Q&A
Slide 12: Maritime business performance overview
Maritime business performance overview Continued momentum in data Maritime Revenues by Service - US$ Millions 400 350 98 105 105 Voice 300 103 101 250 102 263 105 252 228 200 208 184 Data 150 165 146 100 50 0 2004 2005 2006 2007 2008 2009 2010 Q1 2011 revenues $89.0M, +3.2% vs. Q1 2010 Q1 data reven
Slide 13: Maritime portfolio developments (1)
Maritime portfolio developments (1) FleetPhone Planned Commercial Service Introduction 30/06/11 Two hardware variants, Oceana 800 and Oceana 400 Manufactured by Beam Communications PostPaid pricing similar to IsatPhone Pro PrePaid voice services at $0.55/min SRP Contact your DP for full airtime and
Slide 14: Maritime portfolio developments (2)
Maritime portfolio developments (2) FleetBroadband Non-SOLAS voice distress Planned CSI July 2011 Available for FB150, 250 & 500 Market launch at NorShipping exclusively with Thrane & Thrane Dynamic Telemetry Service (DTS) A new service for all FB user terminals that upgrades their capability to all
Slide 15: Maritime portfolio developments (3)
Maritime portfolio developments (3) Global Xpress Global Ka-band coverage from 3 geostationary satellites Launches starting 2013, global network complete by 2014 Ground segment optimised for simplified, low-cost service delivery and seamless mobility Higher throughput than Ku-band VSAT – up to 50Mbp
Slide 16: Maritime portfolio developments (4)
Maritime portfolio developments (4) Global Xpress systems partners iDirect - market leader in IP-VSAT providing: Global Xpress ground network infrastructure Core module technology Sea Tel - initial launch partner of maritime satellite terminals: Ensuring hardware availability for 2013 service introd
Slide 17: Maritime price changes (1)
Maritime price changes (1) Ensuring competitiveness Voice price changes made 1st April and 1st May 2, 3, 4 & 5 GB single vessel plans with 2 year commitment introduced 1st May 1GB SCAPs with 2 and 3 year commitment introduced 1st May Fisheries and Leisure Plans: • New Package Rate Plans introduced 1
Slide 18: Maritime price changes (2)
Maritime price changes (2) Ensuring competitiveness Minimum monthly spend for the FleetBroadband Standard Plan to be introduced 1st July 2011: • Modest wholesale charge, similar to level of BGAN monthly subscription • Achieved by applying a Money Bundle charge and an associated allowance to be consu
Slide 19: Upcoming activities
Upcoming activities A busy NorShipping, 24-27 May 2011: • New voice tariffs showcased • FleetPhone launched to merchant sector • Non-SOLAS distress voice launched with T&T • A further new, exciting development in Inmarsat’s voice offering • Very Large Allowance FleetBroadband plans • Another huge Fl
Slide 20: Agenda: Q&A
Agenda Acquisition of Ship Equip Maritime voice initiatives 2011 outlook and priorities Q&A
Slide 21: Thank you
Thank you Inmarsat confidential