Gilat Satellite Networks Ltd. · NASDAQ:GILT
Gilat Satellite Networks — IPO Roadshow (February 2016)
27 slides from Gilat Satellite Networks's IPO roadshow presentation, Feb 22, 2016
Slide 1: Gilat Satellite Networks Corporate Presentation
Gilat Satellite Networks Corporate Presentation February, 2016
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 inten
Slide 3: Gilat - Boundless Communications
Gilat - Boundless Communications SOTM Commercial Rural Broadband E2E Services Cellular Backhaul Enterprise & Consumer broadband Improved Profitability Providing Full Network Management and Equipment for SATCOM
Slide 4: Gilat at a Glance
• Driving the satellite industry since 1987 • More than 1.2million terminals globally • 2016 expected revenues: $290M-$310M • Global presence : Gilat at a Glance R&D Center NOC Sales office ~1,000 E m ployees Worldwide 5 R&D Centers 4 NOCs (Network Operation Centers) 20 Sales Offices 90 Countries 50
Slide 5: Diverse Customer Base and Partners
Diverse Customer Base and Partners Satellite Companies Telcos / MNOs Satcom Operators and ISPs System integrators Governments
Slide 6: Key Market Growth Drivers
Key Market Growth Drivers • Satellite on-the-Move – In-Flight Connectivity (IFC) – Maritime and Trains • Broadband (BB) Demand in Rural areas – Increasing demand in rural developing countries (FB investment in BB4Africa) • Cellular Backhaul – Role out of LTE,3G and small cell in rural areas • HTS (H
Slide 7: Broadband Satellite Market Service & CPE
Broadband Satellite Market Service & CPE Revenues by Region Revenue to be added in the next 10 years to the combined CPE and Service revenues of 2014: • Satellite broadband access: ~ $8.4 Billion
Slide 8: Satellite Operators are looking for strategic partners Vertical integration
Satellite Operators are looking for strategic partners Vertical integration The HTS revolution - Enabling more applications More capacity More markets Access to more applications Enterprise Telcos Mobility Consumer Enterprise Telcos
Slide 9: Gilat's Main Assets
Rural Experience Gilat’s Main Assets • Cutting-edge Technology – Best network management (X- Architecture) – Best-in-class terminals for all applications (IFC, Maritime, Trains, Cellular Backhaul, Enterprise, Consumers) • End-to-end (E2E) Services Capabilities – NBN managed services – Colombia and P
Slide 10: Growth Drivers
Growth Drivers
Slide 11: Growth Drivers
Growth Drivers • Mobility, mainly IFC • China • Broadband Internet in Rural Areas • Cellular Backhaul • HTS • End-to-End Services
Slide 12: Mobility - Mainly IFC
Mobility - Mainly IFC • Current activity: Defense and Land Mobile • Main growth driver: In-Flight Connectivity (IFC) • Potential growth drivers: Trains, Maritime • Future applications for breakthrough technology: Phased Array
Slide 13: In-Flight Connectivity
In-Flight Connectivity • Market forecasted to grow and generate $3.2 B in retail revenues by the end of 2024 (Source: NSR) • Wavestream the “de facto” standard transceiver for IFC • Breakthrough technology (200 Mbps and KUKA) • A contract with a major satellite BB provider - Dual-band antenna develo
Slide 14: China
China Major Breakthrough in 2015: • HTS in China = Gilat o China Satcom o Synertone • X Architecture network for multiple applications. (fix, IFC, Trains, Maritime) • A Partner of Choice of CRRC
Slide 15: Broadband Internet in Rural Areas
Broadband Internet in Rural Areas • Markets & Applications: Developing countries, Broadband and communications coverage • Driving Growth: Bridging the digital divide • Customers: Governments, ISPs, NGOs • Ongoing long term projects: Fitel Peru and alike
Slide 16: Cellular Backhaul for Telcos
Cellular Backhaul for Telcos • Enable MNOs to connect to LTE and 3G network via satellite • Super-fast LTE Backhaul made possible with SkyEdge II-c Capricorn: 200Mbps - the world’s fastest TDMA VSAT • Unique added value proposition to MNOs: “Rapid deployment of LTE in suburbs to capture market share
Slide 17: Partner of Choice of HTS Providers
Partner of Choice of HTS Providers • Need for a key partner – For all the beams – For all the applications (fix, IFC, etc.) • Providing differentiated customer experience via end-to-end solutions • Gilat is uniquely positioned for HTS • Positive momentum
Slide 18: End-to-End Services for Profitable Growth
End-to-End Services for Profitable Growth • Adding more services to our offering • Provide complete turnkey solutions • Increase value for customers • Long term relationships • Initial focus on Telcos
Slide 19: Financial Indicators
Financial Indicators
Slide 20: Quarterly Financial Indicators
Quarterly Financial Indicators US$ millions Revenues EBITDA Non GAAP Operating Income (loss)
Slide 21: Quarterly Profit and Loss Highlights - Non GAAP
* Adjustments reflect the effect of non-cash stock based compensation as per ASC 718, amortization of intangible assets related to shares acquisition transactions, impairments, restructuring costs and net income (loss) from discontinued operations. Quarterly Profit and Loss Highlights - Non GAAP * U
Slide 22: 2016 Management Objectives: Revenues $290M-$310M, EBITDA $18M-$24M
2016 Management Objectives: Revenues: $290M - $310M EBITDA: $18M - $24M Annual Financial Indicators US$ millions EBITDA Non GAAP (4.2)
Slide 23: Profit and Loss Highlights - Non GAAP
2014 2015 Revenues 235.1 197.5 Gross Profit 88.7 59.2 Gross Margin 38% 30% R&D net 24.7 22.0 S&M 31.1 23.7 G&A 19.7 17.7 Operating Income (loss) 13.1 (4.2) Net income (loss) 7.4 (12.6) Diluted EPS 0.17 (0.29) EBITDA 23.4 5.3 * Adjustments reflect the effect of non-cash stock based compensation as pe
Slide 24: Balance Sheet Highlights
December 31, 2015 September 30, 2015 December 31, 2014 Cash Balances * 120.9 88.4 53.5 Total Assets 370.8 343.9 364.9 Total Debt 26.0 26.2 30.9 Shareholders’ equity 178.1 183.2 225.1 Balance Sheet Highlights US$ millions, except per share data * Including cash and cash equivalents, restricted cash a
Slide 25: Questions & Answers
Questions & Answers
Slide 26: Gilat - A Partner of Choice
Gilat - A Partner of Choice q Driving unique advantage in the growing Airborne market , leveraging the new dual band Ka/Ku terminal, our fastest air modem, as well as our uniquely developed Phased Array antennas q Leveraging our breakthrough into China to a multi application fast profitable growth q
Slide 27: Thank You
Thank You We have filed a registration statement with the Securities and Exchange Commission, or SEC, for the offering to which this communication relates. Before you invest, you should read the registration statement and base prospectus dated May 9, 2014 and the prospectus supplement dated February
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