Gogo Inc. · NASDAQ:GOGO
Gogo — Investor Presentation (August 2013)
28 slides from Gogo's investor presentation, Aug 14, 2013
Slide 1: Investor Presentation August 2013
Investor Presentation August 2013 Exhibit 99.1
Slide 2: Disclaimer
DISCLAIMER Safe Harbor Statement This presentation contains “forward-looking statements” that are based on management’s beliefs and assumptions and on information currently available to management. Most forward-looking statements contain words that identify them as forward-looking, such as “anticipa
Slide 3: Business Overview
BUSINESS OVERVIEW 2013 GOGO INC. AND SUBSIDIARIES
Slide 4: Why Invest in Gogo
LARGE GROWTH OPPORTUNITY ATTRACTIVE ECONOMICS EXPERIENCE & SCALE PIONEER AND LEADER WHY INVEST IN GOGO
Slide 5: Gogo Transformed the Flying Experience Forever
2006-2008 2009-2013 BEFORE GOGO GOGO TRANSFORMED THE FLYING EXPERIENCE FOREVER 40+ Million Sessions
Slide 6: Gogo Leadership Spans All Market Segments
COMMERCIAL AVIATION NORTH AMERICA BUSINESS AVIATION GLOBAL COMMERCIAL AVIATION REST OF WORLD • ~2,000 aircraft online • > 7,000 daily flights • ~81% market share • 2 international carriers aircraft awards received • Global sales organization established • Satellite and terminals contracts secured •
Slide 7: Our Versatile, Proprietary Platform
Gogo Vision Gogo Signature Services Operations-Oriented Communication Services Gogo Connectivity & Gogo Biz AIRCRAFT OPERATORS TRAVELERS, AIRLINES & MEDIA PARTNERS TRAVELERS OUR VERSATILE, PROPRIETARY PLATFORM
Slide 8: We Pride Ourselves on Enduring Partnerships
INTERNATIONAL NORTH AMERICA of people switching airlines because of whether or not there’s Wi-Fi on the airplane.” WE PRIDE OURSELVES ON ENDURING PARTNERSHIPS Doug Parker, Chairman and CEO, US Airways Group, Inc. Subsidiary of “We have a lot of anecdotal evidence, including ourselves,
Slide 9: We Pride Ourselves on Enduring Partnerships
ORIGINAL EQUIPMENT MANUFACTURERS FRACTIONAL JET OPERATORS “We know people will pay more for Wi-Fi equipped airplanes.” WE PRIDE OURSELVES ON ENDURING PARTNERSHIPS WE PRIDE OURSELVES ON ENDURING PARTNERSHIPS Alex Wilcox, CEO, JetSuite
Slide 10: =) EO ese
$191 $134 - | S =) 7 EO ese 2009 2012 2013" >.
Slide 11: Equipment Revenue and Service Revenue
1474 ‘=EquipmentRevenue m ServiceRevenue
Slide 12: Slide 12
Slide 13: Our 5x5 Strategy
North America Global Business Passengers All Passengers Media Partners Aircraft Operators In-Flight Connectivity In-Flight Connectivity Gogo Vision Gogo Text Messaging Gogo Signature Services Gogo Operations-Oriented Communications Services OUR 5X5 STRATEGY Today Tomorrow INCREASE AIRCRAFT INCREASE
Slide 14: Gogo Is the Only Multi-Technology Platform
GOGO TODAY GOGO IS THE ONLY MULTI-TECHNOLOGY PLATFORM 9.8 Mbps 3.1 Mbps Peak Data Rates 2006-2011 2012 2013 2014 2015 2016 2017 Next Generation Technology 40 Mbps to 50 Mbps ATG EvDO Rev A ATG-4 EvDO Rev B Ku-Band Hybrid Solutions Global Xpress Ka-Band GOGO TODAY
Slide 15: How We Win Internationally
MULTIPLE TECHNOLOGY SOLUTIONS TURNKEY SERVICE MODEL SCALE TRACK RECORD OF SUCCESS HOW WE WIN INTERNATIONALLY
Slide 16: Financial Review
FINANCIAL REVIEW 2013 GOGO INC. AND SUBSIDIARIES
Slide 17: Surging Revenue Drives Profitability
SURGING REVENUE DRIVES PROFITABILITY \REVENUE ($MM) $310 85% CAGR $234 $37 2009 2010 2011 2012 2013* *Mid point of 2013 guidance ADJUSTED EBITDA ($MM) $23 $22 $14 $15 $9 $7 ($1) International Investment (CA-ROW Segment ($45) Loss) ($89) 2009 2010 2011 2012 1H13 2013 GOGO INC. AND SUBSIDIARIES GOGOAI
Slide 18: Q2 2012 Q2 2013 Q2 2012 Q2 2013
$13 $7 $17 S17 Q2 2012 Q2 2013 Q2 2012 Q2 2013 EquipmentRevenue m Service Revenue
Slide 19: Slide 19
Slide 20: $13 2010 $18 2011 $21 2012 $24 41H2013
$13 2010 $18 2011 $21 2012 $24 41H2013
Slide 21: Strong Growth in Revenue per Aircraft
STRONG GROWTH IN REVENUE PER AIRCRAFT($ ‘000) +3.4x
Slide 22: $34 2009 2040 2011 2012 2009 2010 2012
$34 860 318 2009 2040 2011 2012 2009 2010 201 2012
Slide 23: a | i J J
<i & ot $36 $36 8 a 2 | i J J 2009 2010 2011 2012 2009 2010 «2011 2012 59% _ % % 23% 14% 15% 2 2008 2010 2011-2012 2009 2010 2011 2012 . as gay
Slide 24: Evolving Capex Model
EVOLVING CAPEX MODEL CAPITAL EXPENDITURES ($MM) $77 $77 $79 $58 $40 $43 $30 $31 2009 2010 2011 2012 Gross CapEx Cash CapEx N E T W O R K I N S T A L L TRANSITION GOGO BUILDS GOGO RENTS GOGO PAYS AIRLINE PAYS 2013 GOGO INC. AND SUBSIDIARIES GOGOAIR.COM | 23
Slide 25: Why Invest in Gogo
LARGE GROWTH OPPORTUNITY ATTRACTIVE ECONOMICS EXPERIENCE & SCALE PIONEER AND LEADER WHY INVEST IN GOGO
Slide 26: Appendix
APPENDIX 2013 GOGO INC. AND SUBSIDIARIES
Slide 27: Reconciliation of Adjusted EBITDA ($MM)
2009 2010 2011 2012 Q1 2013 Q2 2013 1H2013 RECONCILIATION OF ADJUSTED EBITDA ($MM) Net Income (142) (140) (18) (96) (32) (73) (105) Interest Income (0) (0) (0) (0) (0) (0) (0) Interest Expense – Income Tax Provision – Depreciation & Amortization EBITDA (91) (106) (49) (14) (48) (63) Fair Value Deriv
Slide 28: Reconciliation of Cash CapEx ($MM)
2009 2010 2011 2012 Q1 2013 Q2 2013 1H 2013 RECONCILIATION OF CASH CAPEX ($MM) Purchases of Property and Equipment (69) (33) (33) (67) (29) (29) (59) Acquisition of Intangible Assets (Capitalized Software) (8) (7) (10) (12) (4) (3) (7) Gross CapEx (77) (40) (43) (79) (33) (33) (66) Change in Deferre