Viasat, Inc. · NASDAQ:VSAT
Viasat — Merger or Acquisition (October 2022)
17 slides from Viasat's merger presentation, October 2022
Slide 1: Sale of Link 16 Tactical Data Links Business Unit to L3Harris
Viasat CONNECTING THE WORLD Sale of Link 16 Tactical Data Links Business Unit to L3Harris > OCTOBER 2022 x
Slide 2: Forward-looking statements
This presentation contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include, among others, statements that refer to the p
Slide 3: Transaction highlights
Allows Viasat to focus on building a service platform Sale proceeds significantly lower net leverage, improve targeting a broad range of users across global mobility liquidity and increase Viasat’s financial flexibility and fixed markets Expect recurring service revenue as a percentage of total reve
Slide 4: Transaction overview
› Viasat Inc. (Nasdaq: VSAT) has entered into an agreement to sell its Link 16 Tactical Data Links (TDL) business unit to L3Harris (NYSE: LHX) › Total consideration of $1,958mm at closing in cash, subject to adjustments › Expected cash proceeds of ~$1,800mm net of estimated taxes, fees and expenses
Slide 5: Transaction rationale and purchaser profile
› Purchaser is an agile global › Purchaser is a large and well- › Sale of Link 16 TDL business unit is aerospace and defense funded company and expected expected to unlock the value of an underappreciated asset that is less technology innovator that will to continue to invest in the Link synergistic
Slide 6: Network architecture driven by proprietary technology
• Driven by proprietary technology across payload, ground network and network management tools Capacity Increase • Network architecture deploys bandwidth where demand is highest, keeping asset utilization high • Diverse end markets 4 flatter peak to trough usage VS-1 VS-3 • Prioritize natural satell
Slide 7: Dynamically Matching Supply with Demand, Globally
ViaSat-3 The Challenges Non-Geostationary Solutions Flexible broadband system efficiently 95% of the world’s population matches supply and demand Requires more satellites to match supply lives on only and demand Three satellites for global coverage 10% of the Earth’s land (4), and Hundreds of satell
Slide 8: LTM Revenues ($M)
$4,000 3,500 $3,500 3,000 APAC $3,000 2,500 LTM Revenues ($M) Covid $2,500 Impact 2,000 EMEA GBPS $2,000 1,500 $1,500 1,000 $1,000 Americas $500 500 $0 0 FY13 Q1 FY15 Q1 FY17 Q1 FY19 Q1 FY21 Q1 FY23 Q1 Gov't Systems Sat Serv / Comm'l Networks Capacity Launching and ramping utilization of our global
Slide 9: Pro forma recurring service revenue mix
• 77% Services • 23% Products PRO FORMA FOR LINK 16 TDL SALE AND INMARSAT TRANSACTION, RECURRING SERVICE REVENUE MIX EXPECTED TO INCREASE TO APPROXIMATELY 77% OF TOTAL 9
Slide 10: Proceeds de-risk balance sheet and reduce leverage
› Proceeds expected to de-risk standalone balance sheet reducing net debt by 74% and net leverage by 67% ▼ › Proceeds expected to reduce peak net leverage pro forma for the Inmarsat Transaction by 0.7x(5) at 6/30/2023 › Expected to fully fund path to positive free cash flow, including the proposed I
Slide 11: Key products and services by segment
Revenue: $1.2 billion Revenue: $0.7 billion(6) Revenue: $0.5 billion Key Products and Services Key Products and Services Key Products and Services Other Mobility & In-Flight Connectivity Satcom Services Mobile & Fixed Enterprise & Technology Terminals Information Antenna Assurance & Systems Energy F
Slide 12: Satcom services and technology offerings
Satcom Services & Technology › Satcom-As-A-Service - Secure, multi-network satellite services from Senior Leader Mobility services to entertainment services on bases, and everything in-between. Software-defined hybrid networking builds on VS-3 and partner network capabilities to provide high capacit
Slide 13: Mobility, government and fixed segments
Mobility - Commercial In Flight Connectivity Mobility ViaSat-3 launches & Government US & International International - Fixed & Government Systems Inmarsat Transaction Fixed Mobile Antenna Ground Link 16 TDL Sale Systems Government 13
Slide 14: Transaction highlights
Allows Viasat to focus on building a service platform Sale proceeds significantly lower net leverage, improve targeting a broad range of users across global mobility liquidity and increase Viasat’s financial flexibility and fixed markets Expect recurring service revenue as a percentage of total reve
Slide 15: Thank You
THANK YOU jy ff WS Viasat!
Slide 16: Viasat™* -
Viasat™* -
Slide 17: Footnotes
1. Pro forma for completion of the Link 16 TDL Sale and presented on a combined basis assuming the completion the Inmarsat Transaction for the LTM 6/30/2022. 2. Excludes some corporate expense expected to be remediated. 3. Pro forma for Link 16 TDL Sale as of 6/30/2022. 4. European Commission, Joint