Slide 1: Investor Presentation
August 11, 2016 Investor Presentation Exhibit 99.1
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are based on management’s beliefs and assumptions and on information currently available to manage
Slide 3: Why Invest in Gogo
High revenue growth & operating leverage Attractive ROI per aircraft ~10,000 Uncommitted Aircraft ~$140,000 Annualized ARPA Global scale Specialize in Connected Aircraft Leading technology WHY INVEST IN GOGO Leading Position, Experience & Scale Large Growth Opportunity Attractive Model Competitive A
Slide 4: Strong Growth and Profitability Trends
STRONG GROWTH AND PROFITABILITY TRENDS Note: Minor differences exist due to rounding (1) Please see reconciliation of Adjusted EBITDA in appendix Adjusted EBITDA(1) ($M) $49 Revenue ($M) 33% CAGR $89 CA-ROW Segment Loss Adjusted EBITDA $113 $24 $130
Slide 5: Profitability Path for All Segments
More Bandwidth GOGOAIR.COM | PROFITABILITY PATH FOR ALL SEGMENTS 16% margin 40% margin $M As of 6/30/2016 Based on company reported results as well as management estimates, trade publications and other public sources as of 6/30/2016 Note: Revenue and Segment Profit/Loss figures are LTM as of 6/30/16
Slide 6: 2016 - Strong Track Record & Momentum
Global Network Technology Record Financial Results 2016 - STRONG TRACK RECORD & MOMENTUM Recent Airline Wins 50+ Mbps to the device achieved on 2Ku Large satellite capacity commitments to Intelsat, SES and OneWeb Next generation modem enables speeds of 400+ Mbps, expected to be available in 2017. Mo
Slide 7: Significant Growth Opportunities in Aircraft and ARPA
SIGNIFICANT GROWTH OPPORTUNITIES IN AIRCRAFT AND ARPA ARPA Growth ARPA Suite Of Offerings Passenger Crew Aircraft Passenger Connectivity Airline / Owner / Operator Services Connected Aircraft Services More connected aircraft, more applications, more revenue $140k(3) Global broadband aircraft online
Slide 8: On a Mission to Connect Global Aviation
ON A MISSION TO CONNECT GLOBAL AVIATION 249 Aircraft Online in CA-ROW 60+ Airline Partner Country Destinations 33 Global Maintenance Locations Teleports Offices Install Locations Maintenance Locations Gogo Partner Destinations 11 Countries Where Aircraft Is Installed 7 Offices Worldwide 17 Global Te
Slide 9: Most Broadband Planes in the Industry
MOST BROADBAND PLANES IN THE INDUSTRY Gogo CA - Satellite Aircraft Online Gogo BA - ATG Aircraft Online Gogo CA – ATG Aircraft Online * Data based on management estimates, trade publications and other public sources as of 6/30/2016 and include both commercial and business broadband connected aircraf
Slide 10: People and Experience to Serve Aviation Industry
PEOPLE AND EXPERIENCE TO SERVE AVIATION INDUSTRY Highly Specialized Workforce Note: Business Aviation numbers represent the difference in ATG units online from year to year 2016 Net Installation Guidance ~300 CA NA and 75+ CA ROW Annual Net Aircraft Installations (1) As of August 4, 2016 (1) Busines
Slide 11: Strong Progress on 2Ku Deployment
10 2Ku aircraft flying across Aeromexico, Delta and Virgin Atlantic Certifications on Boeing 737-800 and Airbus A319, A330, A340. First 2Ku factory retrofit completed on A350 New modem and HTS satellites are expected to improve performance starting in 2017 STRONG PROGRESS ON 2Ku DEPLOYMENT 2Ku Award
Slide 12: Continuous Innovation for Aviation Market
Connected Aircraft Peak Speed per Aircraft Mbps CONTINUOUS INNOVATION FOR AVIATION MARKET NETWORK TECHNOLOGY PRODUCTS & SERVICES PLATFORM CA Connectivity BA Connectivity ARPA Gogo Vision BA Talk & Text Universal Cabin System CA Texting First Global 100+ Mbps Solution ATG ATG-4 Ku 2Ku 2Ku w/ Spot Bea
Slide 13: ATG and Satellite Technologies Address Large Market Opportunity
ATG AND SATELLITE TECHNOLOGIES ADDRESS LARGE MARKET OPPORTUNITY Market Opportunity for ATG is defined as total available business jets and CA-NA regional jets and for 2Ku is global commercial aircraft excluding regional jets and larger business jets. CA-NA segment profit margin of 20% and BA segment
Slide 14: 2Ku: Proprietary Solution That Stands Apart from the Competition
(1) Based on management estimates and include satellites operated by Inmarsat, Viasat, Eutelsat, and Yahsat as of 12/31/2015. We estimate that there are approximately 10 Ka satellites in the world, but due to lack of interoperability between Ka satellite providers, only 2 to 5 can currently be used
Slide 15: The Gogo Advantage
THE GOGO ADVANTAGE GOGOAIR.COM | Connected aircraft platforms enabling aviation solutions 6,500+ broadband aircraft Proprietary, leading aircraft connectivity solutions Open architecture, with built in reliability and redundancy 1,000+ annual installs 33 global maintenance locations Airline support
Slide 16: Key Priorities for Gogo
KEY PRIORITIES FOR GOGO Win more aircraft Install backlog ~10,000 uncommitted commercial aircraft globally ~ 16,000 uncommitted business aircraft in North America Develop open platforms: Create tailored passenger experience Lower aircraft operating costs Increase flight safety Aggressive rollout of
Slide 17: Gogo Ine. and Aflates, Proprietary & GOGOAR.COM |
16 Gogo Ine. and Aflates, Proprietary & Confidential GOGOAR.COM | 17
Slide 18: Appendix
Appendix
Slide 19: BA: Established Industry Leader
BA: ESTABLISHED INDUSTRY LEADER Founded in 1991 and pioneered air-to-ground connectivity for planes Established OEM and dealer relationships Track record of innovation: Universal Cabin System, Gogo Cloud, Gogo Vision, Text & Talk....4G ATG connectivity expected to be available in 2017 Partnering wit
Slide 20: BA: High Margin Service Revenue Drives Profitability
Segment Profit ($M) Revenue ($M) 24% Total CAGR Satellite ATG BA: HIGH MARGIN SERVICE REVENUE DRIVES PROFITABILITY Units Online Monthly Average Revenue Per Unit (ARPU) 47% Service CAGR 28% CAGR Note: Minor differences may exist due to rounding
Slide 21: CA-NA: Strong and Growing Position
CA-NA: STRONG AND GROWING POSITION 67% market share in North America, awarded aircraft of 200 Over 50% of installed fleet on ATG-4 with more upgrades coming ~600 Delta aircraft (primarily NA fleet) awarded to 2Ku ~140 American aircraft awarded to 2Ku Strong revenue growth and operating leverage, ach
Slide 22: CA-NA: Strong Revenue and Segment Profit Growth
Segment Profit ($M) Revenue ($M) 36% CAGR Note: Minor differences may exist due to rounding. For 2011 and 2013 ARPA is based on aircraft online and for 2015 and LTM Q2’16 ARPA is based on aircraft online equivalent. Aircraft Online Annualized ARPA ($k) CA-NA: STRONG REVENUE AND SEGMENT PROFIT GROWTH
Slide 23: Gogo Installed & Awarded Aircraft as of 6/30/2016
GOGO INSTALLED & AWARDED AIRCRAFT AS OF 6/30/216 Aircraft Online CA-NA CA-ROW Total ATG Aircraft Online 1,255 - 1,255 ATG-4 Aircraft Online 1,332 - 1,332 Ku Aircraft Online - 249 249 2Ku Aircraft Online 9 - 9 Total Aircraft Online 2,596 249 2,845 Awarded But Not Yet Installed Aircraft1 CA-NA CA-ROW
Slide 24: Adjusted EBITDA Reconciliation ($MM)
ADJUSTED EBITDA RECONCILIATION ($MM) 2011 2012 2013 2014 2015 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 Net Income (18) (96) (146) (85) (108) (25) (29) (34) (24) (40) Interest Income (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) Interest Expense 1 9 29 33 59 16 17 16 16 18 Income Tax Provision 1 1 1 1 1 – –
Slide 25: Cash Capex Reconciliation ($MM)
CASH CAPEX RECONCILIATION ($MM) 2011 2012 2013 2014 2015 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 Purchases of Property and Equipment (33) (67) (105) (132) (135) (33) (19) (30) (31) (40) Acquisition of Intangible Assets (Capitalized Software) (10) (12) (16) (17) (18) (4) (4) (5) (6) (8) Consolidated