Inmarsat — Investor Day (September 2014)
9 slides from Inmarsat's investor day presentation, September 2014
Slide 1: US Government
US Government Peter Hadinger President
Slide 2: US Government business at a glance
US Government business at a glance Inmarsat has always been USG’s largest mobile SATCOM supplier with >60% market share • First in, last out – Inmarsat is their most portable bandwidth • Reliable – Inmarsat is always on and everywhere • Universal – Inmarsat products in every USG service and agency U
Slide 3: Tight budgets clash with geopolitics
Tight budgets clash with geopolitics Hagel: Iraq crisis may require DoD To rethink Headlines of just one day (21 August ) 2015 budget Hagel: “You’re constantly shaping a Sequester fears return budget to assure that resources Jacoby: “virtually impossible right match the mission - and the mission now
Slide 4: Global uncertainty plays to our strengths
Global uncertainty plays to our strengths No large force deployments, but: Domestic Civil SATCOM Worldwide Naval Active Areas of and Border Security and Air Transport conflicts Current events in places without established concern USG infrastructure – demands global mobility Tactical profile well mat
Slide 5: Top-line USG budget remains the biggest limiter
Top-line USG budget remains the biggest limiter Deficit reduction drives “Sequestration” which aims to remove $1tn spending by 2023 SATCOM funded out of discretionary budgets – mostly defence “Supplementals” • Squeezed between “Debt Ceiling” and mandatory spending • Supplementals phasing out with dr
Slide 6: Key trends to watch
Key trends to watch USG shifting users to its own satellites to reduce spending in short-term • Especially hard on incumbent Ku-band operators • Shift to military Ka-band actually facilitates use of Inmarsat GX Growing bifurcation of commercial market – legacy vs. new programmes • Older drones, plan
Slide 7: Sweet spot for Inmarsat - augmentation
Sweet spot for Inmarsat - augmentation We believe USG will adopt a commercial augmentation model1 • Well established model in air transport, fiber – emerging in aerial refueling, SATCOM • This model is highly aligned with Inmarsat attributes Omega Air • Global access and mobility ideal for special o
Slide 8: Three steps to improve route to market
Three steps to improve route to market Percentage of USG SATCOM service revenues (2012) Strong Partner Footprint: >50% share Achieve Wholesale/Retail Goals 5 9 Inmarsat Boeing Astrium L3 GCS 16 • Increase top partner footprint 15 Globecomm Artel TCS DRS • Broaden contract vehicles/skills 16 6 • Impr
Slide 9: Layered Growth Strategy
Layered Growth Strategy Now – leverage infrastructure: ours & USGs L-3 Panther • I-5 military Ka leases augment wideband WGS 1000s deployed • L-TAC leases augment narrowband MUOS PRC-117 • Durable growth markets – Special Ops/Intel/Civil 10,000s deployed Sealift/Army Mid-term – expand to managed ser