Slide 1: Investor Presentation
June 30, 2015 Investor Presentation Exhibit 99.1
Slide 2: Gogo's Mission
GOGO’S MISSION Advance aviation by connecting every aircraft with the most trusted communications services on and above our planet
Slide 3: Why Invest in Gogo
LARGE GROWTH OPPORTUNITY LARGE GROWTH OPPORTUNITY HIGH BARRIERS TO ENTRY HIGH BARRIERS TO ENTRY EXPERIENCE & SCALE EXPERIENCE & SCALE LEADING POSITION LEADING POSITION ATTRACTIVE ECONOMICS ATTRACTIVE ECONOMICS ©2015 Gogo Inc. and Affiliates. Proprietary & Confidential. WHY INVEST IN GOGO
Slide 4: Market & Company Overview
MARKET & COMPANY OVERVIEW
Slide 5: Aviation Internet Trends
AVIATION INTERNET TRENDS Connected aircraft transform global aviation – the last frontier of internet connectivity Cost, coverage, capacity and reliability are just now reaching critical inflection points Next gen technologies expected to increase speeds from 10 to 100Mbps within 5 years with a comp
Slide 6: Benefits Enabling the Connected Aircraft
Benefits Enabling the Connected Aircraft Better passenger experience - less cost A TRANSFORMATIVE OPPORTUNITY FOR AIRLINES Airline differentiation Direct revenue opportunities Operational efficiency Enhanced safety
Slide 7: Beyond Passenger Connectivity – Enabling the Aviation Ecosystem
BEYOND PASSENGER CONNECTIVITY – ENABLING THE AVIATION ECOSYSTEM Inflight Services Flight Operations Aircraft Systems Maintenance Data
Slide 8: A Large and Growing Global Connected Aviation Market
1.4x 1.2x 2.3x ADDRESSABLE CONNECTED AIRCRAFT ADDRESSABLE CONNECTED AIRCRAFT Commercial Aviation (“CA”) Commercial Aviation (“CA”) Business Aviation (“BA”) Business Aviation (“BA”) 2.6x size of CA-NA 2.6x size of CA-NA The connected aircraft industry is worth up to $30 billion The connected aircraft
Slide 9: Gogo's Impressive Scale and Reach
Largest Market Share in CA-NA Largest Market Share in CA-NA Largest Market Share in BA Largest Market Share in BA #1 Global in-flight connectivity provider Leader in North America and expanding internationally #1 Global in-flight connectivity provider Leader in North America and expanding internatio
Slide 10: Long-Term Partnerships with Our Major Aviation Partners
North America North America Original Equipment Manufacturers Original Equipment Manufacturers Fractional Jet Operators Fractional Jet Operators Commercial Aviation Commercial Aviation Business Aviation Business Aviation International International LONG-TERM PARTNERSHIPS WITH OUR MAJOR AVIATION PARTN
Slide 11: Strong Execution
$11 $78 62% CAGR STRONG EXECUTION $37 $408 2009 2014 Total Revenue ($MM) $(89) 2009 2014 Adjusted EBITDA CA-ROW Segment Loss $89 Adjusted EBITDA (1) ($MM) (1) Please see reconciliation of Adjusted EBITDA in appendix.
Slide 12: Why We Win
Specialize in aviation and telecom Specialize in aviation and telecom Global networks with excellent reliability Global networks with excellent reliability Superior technology & economics Superior technology & economics End-to-end service provider End-to-end service provider 1 2 3 4 WHY WE WIN
Slide 13: We Specialize in Aircraft and Have a Track Record of Innovation
ATG / ATG-4 2Ku Intellectual Property EXPERTISE IN INTERNET, AVIATION AND TELECOM EXPERTISE IN INTERNET, AVIATION AND TELECOM st generation of technology North America coverage nd generation of technology Global coverage 100+ patents globally WE SPECIALIZE IN AIRCRAFT AND HAVE A TRACK RECORD OF INNO
Slide 14: Gogo's Technology Again Disrupts the Global Aviation Industry
GOGO’S TECHNOLOGY AGAIN DISRUPTS THE GLOBAL AVIATION INDUSTRY ATG-4: North America coverage 2Ku: Global coverage ATG-4 Antenna 2Ku Antenna Expected launch 2015 70 Mbps at launch, 100 Mbps expected when spot beam Ku- band satellites are launched Low cost – estimated half the bandwidth cost compared t
Slide 15: Global and Regional Networks Drive Superior Reliability and Rapid Innovation
GLOBAL AND REGIONAL NETWORKS DRIVE SUPERIOR RELIABILITY AND RAPID INNOVATION Scalable and modular architecture Operational leverage Rapid innovation and evolution Reliable and mature hardware and software platform Superior reliability 98%+ ATG system availability 75+ million of passenger sessions 7,
Slide 16: The Most Complete End-to-End Aviation Service Provider
Real-time credit card processing Real-time weather information Other applications to enhance airlines operational efficiency Account support Network monitoring and management Passenger support services, portal design, developing and hosting Airborne equipment for ATG and satellite Certification, ins
Slide 17: Financials
FINANCIALS
Slide 18: Growing Revenue Drives Profitability
$8 $11 $14 $41 $78 $80 62% CAGR GROWING REVENUE DRIVES PROFITABILITY Note: Minor differences exist due to rounding (1) Please see reconciliation of Adjusted EBITDA in appendix Adjusted EBITDA (1) ($MM) $37 $160 $328 $408 $428 2009 2011 2013 2014 Q1 2015 LTM ($89) ($1) 2009 2011 2013 2014 Q1 2015 LTM
Slide 19: CA-NA: Revenue and Segment Profit Growth
11% Margin 102 Q/Q Increase CA - NA: REVENUE AND SEGMENT PROFIT GROWTH Note: Minor differences exist due to rounding (1) We define ARPA as the aggregate service revenue for the annual period divided by the number of aircraft online during that period $11 $251 $266 2009 2014 Q1 2015 LTM Revenue ($MM)
Slide 20: BA: High-Margin Service Revenue Drives Profitability and Cash Flow
$72 $78 $20 $84 $81 11% 40% 40% 186 Q/Q Increase 43% CAGR $6 2009 2014 Q1 2015 LTM BA: HIGH-MARGIN SERVICE REVENUE DRIVES PROFITABILITY AND CASH FLOW $26 $156 $159 Equipment Revenue Service Revenue Revenue ($MM) $3 $63 $63 2009 2014 Q1 2015 LTM Segment Profit ($MM) Segment Profit Margin Segment Prof
Slide 21: CA-ROW: Focus on International Expansion
500+ 2012 2013 2014 Aircraft Online (end of period) Cumulative Aircraft Awards June 2015 116 aircraft online as of 3/31/2015 Near global Ku-band satellite network 2Ku technology selected by 7 airlines for trial or adoption (1) Includes Gogo awarded aircraft as of 6/22/2015 $14 $41 $78 $80 2012 2013
Slide 22: CapEx Profile
Capitalized software Airborne equipment Network equipment Over the past two years, Gogo’s Cash CapEx has been stable at ~$100 million Over the past two years, Gogo’s Cash CapEx has been stable at ~$100 million Equipment proceeds received from airlines and landlord incentives Cash CapEx (1) CAPEX PRO
Slide 23: Gogo - A Compelling Investment Opportunity
Why Does Gogo Win? Why Does Gogo Win? Specialize in aviation and telecom Specialize in aviation and telecom End-to-end service provider End-to-end service provider Superior technology and cost Superior technology and cost Deliver excellent reliability Deliver excellent reliability Focused Strategy F
Slide 24: Q&A
Q&A
Slide 25: Appendix
APPENDIX
Slide 26: Gogo - Leader with Established Track Record
1991 GOGO - LEADER WITH ESTABLISHED TRACK RECORD 2012 2013 2014 June 2013 Gogo IPO October 2013 Gogo launches Gogo Text & Talk, ATG 2000, Gogo Vision, and UCS 5000 for Business Aviation Gogo awarded domestic fleet of Japan Airlines August 2008 Connectivity service is launched on American Airlines De
Slide 27: Adjusted EBITDA Reconciliation ($MM)
2009 2010 2011 2012 2013 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 ADJUSTED EBITDA RECONCILIATION ($MM) Net Income (142) (140) (18) (96) (146) (17) (19) (25) (24) (20) Interest Income (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) Interest Expense – Income Tax Provision – – – – – – Depreciation & Amortizatio
Slide 28: Cash CapEx Reconciliation ($MM)
2009 2010 2011 2012 2013 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 CASH CAPEX RECONCILIATION ($MM) Purchases of Property and Equipment (69) (33) (33) (67) (105) (32) (28) (35) (37) (53) Acquisition of Intangible Assets (Capitalized Software) (8) (7) (10) (12) (16) (4) (5) (5) (3) (4) Consolidated Capi