Gogo Inc. · NASDAQ:GOGO

Gogo — Investor Presentation (September 2017)

23 slides from Gogo's investor presentation, September 2017

  1. Slide 1: Investor Presentation

    Investor Presentation September 2017 ©2017 Gogo Inc. and Affiliates. Proprietary & Confidential. GOGOAIR.COM | 1

  2. 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

  3. Slide 3: Transforming the aviation industry

    Transforming the aviation industry Gogo is the leading global provider of broadband connectivity products and services for aviation 7,500+ Broadband aircraft online1 50% Global market share in Commercial aviation2 % 92 in Business aviation North America market share 2 1) As of 6/30/2017 2) Based on

  4. Slide 4: Gogo's inflight internet leadership

    Gogo’s inflight internet leadership Network Solutions Software & Platform Support Services Deliver industry-leading Enable customizable Install, monitor, manage and connectivity performance experiences for maintain connectivity solutions to global aviation passengers and support aviation Installatio

  5. Slide 5: Most planes and expanding opportunities

    Most planes and expanding opportunities Market opportunity Number of aircraft online 8,000 Gogo CA - Satellite Commercial aviation 7,000 Gogo BA - ATG ~10,000 uncommitted aircraft today Gogo CA – ATG ~2,000 new aircraft delivered per year 6,000 5,000 Business aviation 4,000 ~25,000 aircraft without

  6. Slide 6: Leading connectivity technology for all aircraft

    Leading connectivity technology for all aircraft Global – Satellite Addressable Aircraft  100+ Mbps and global coverage  High availability  Network Redundancy ~18,000 (2) (2) 2Ku  Live TV (2)  Flying on 250+ aircraft globally North America – Air-To-Ground  North American coverage  Overnight i

  7. Slide 7: Growing satellite aircraft connectivity awards

    Growing satellite aircraft connectivity awards 1,800+ 1,500 500 50 2014 2015 2016 2017 Note: 2Ku awards include both signed contracts and letters of intent ©2017 Gogo Inc. and Affiliates. Proprietary & Confidential. GOGOAIR.COM | 7

  8. Slide 8: 2Ku is changing the customer experience

    2Ku is changing the customer experience High speed, everywhere, all the time 15+ 98% 98% Mbps per passenger coverage of service availability global flight hours Expected results and availability based on management estimates. ©2017 Gogo Inc. and Affiliates. Proprietary & Confidential. GOGOAIR.COM |

  9. Slide 9: Superior global satellite network

    Superior global satellite network Future Ku HTS coverage Current Ku coverage • Access to most global satellite capacity including HTS • Ability to integrate next generation satellite constellations seamlessly • Providing capacity when and where airline partners need it ©2017 Gogo Inc. and Affiliates

  10. Slide 10: Next Gen ATG brings 100+ Mbps to North America in 2018

    Next Gen ATG brings 100+ Mbps to North America in 2018 ATG ATG-4 Next Gen ATG  Uniquely 134 Mbps demonstrated in lab in integrates May 2017 Tower Upgrades licensed and unlicensed Existing + spectrum unlicensed spectrum  Leverages existing ground Hardware Hardware and airborne infrastructure  Over

  11. Slide 11: Portfolio of business aviation solutions

    Portfolio of business aviation solutions Large Jets Medium Jets Light Jets Turboprops * ~3,000 Aircraft* ~4,000 Aircraft ~5,000 Aircraft* ~8,500 Aircraft* ATG/4G/ ATG/4G/ ATG/4G/ REGIONAL: ATG/4G Next Gen ATG Next Gen ATG Next Gen ATG GLOBAL: JX/SBB SBB SBB SBB + Bandwidth PURCHASE MOTIVATION Applic

  12. Slide 12: Strong revenue and profitability growth

    Strong revenue and profitability growth (1) Revenue ($M) Adjusted EBITDA ($M) $162 $155 22% $645 CAGR $597 $113 $501 $88 $103 $408 $89 $328 $76 $49 $78 $67 $41 $59 $37 $8 $11 2013 2014 2015 2016 Q2 '17 LTM 2013 2014 2015 2016 Q2 '17 LTM Adjusted EBITDA CA-ROW Segment Loss Note: Minor differences exi

  13. Slide 13: Profitability path for all segments

    Profitability path for all segments PROFITABILITY DRIVERS MORE BANDWIDTH MORE AIRCRAFT MORE AIRCRAFT CA-NA CA-ROW BA 2,791 Aircraft Online 318 Aircraft Online 4,453 ATG Aircraft Online #1 Market Share 66% 13% Market Share 92% Market Share 392 ~620 Awarded but not yet installed aircraft 215 17% 44% m

  14. Slide 14: Strategic priorities

    Strategic priorities 1 Expand technology leadership 2 Scale globally 3 Achieve profitability • Extend global 2Ku roadmap • Install 2Ku aircraft awards • Scale CA-ROW segment • Deploy next gen ATG solution efficiently and aggressively to profitability • Invest in our industry-leading • Achieve 2Ku OE

  15. Slide 15: Why invest in Gogo?

    Why invest in Gogo? • Leading position, experience & scale • Large opportunities for growth • Technology leadership • Clear path to free cash flow ©2017 Gogo Inc. and Affiliates. Proprietary & Confidential. GOGOAIR.COM | 15

  16. Slide 16: Appendix

    Appendix ©2017 Gogo Inc. and Affiliates. Proprietary & Confidential. GOGOAIR.COM | 16

  17. Slide 17: Growing Shareholder Value: Path to profitability

    Path to profitability  Significant backlog MORE  Growing market AIRCRAFT  Leading market share Growing Shareholder Value  Decreasing installation time DECLINING  Lower airborne equipment costs INVESTMENT  Higher airborne equipment proceeds PER AIRCRAFT  Leverage STC portfolio  Increase netwo

  18. Slide 18: CA-NA: Strong revenue and segment profit growth

    CA-NA: Strong revenue and segment profit growth Revenue ($M) Segment Profit ($M) Profit Margin $72 $67 23% CAGR $372 $392 Segment $311 Profit $42 $251 $26 $199 19% 17% 13% 10% -1% ($1) 2013 2014 2015 2016 Q2 '17 2013 2014 2015 2016 Q2 '17 LTM LTM (1) Aircraft Online Annualized ARPA ($k) (End of Peri

  19. Slide 19: CA-ROW: Strong ARPA growth and increased aircraft online

    CA-ROW: Strong ARPA growth and increased aircraft online Revenue ($M) Segment Loss ($M) $39 $25 ($41) $12 ($78) ($76) $2 $2 ($88) ($103) 2013 2014 2015 2016 Q2 '17 2013 2014 2015 2016 Q2 '17 LTM LTM (1) Aircraft Online Annualized ARPA ($k) (End of Period) 318 $226 267 $202 202 $174 $172 $145 85 1 20

  20. Slide 20: BA: High margin service revenue drives profitability

    BA: High margin service revenue drives profitability Revenue ($M) Segment Profit ($M) 36% 16% Total Service 18% $95 CAGR CAGR $200 $215 CAGR $83 $179 $72 $156 $63 $63 $127 $67 $51 $79 $84 $75 $152 $100 $133 $52 $72 2013 2014 2015 2016 Q2 '17 2013 2014 2015 2016 Q2 '17 Service Equipment LTM LTM Month

  21. Slide 21: 2Ku: Proprietary solution that stands apart from the competition

    2Ku: Proprietary solution that stands apart from the competition 2Ku Differentiators ANTENNA Open Architecture 2Ku Gimbaled Reliability Ka (1) (2 to 5) SATELLITE Speed (~180 in orbit Capacity (2) today) Ku Cost Coverage Aero Performance Record market acceptance, 1,800+ awarded aircraft, brings relia

  22. Slide 22: Gogo installed and awarded aircraft

    2 Gogo installed and awarded aircraft Gogo Aircraft Online & Awarded Aircraft Aircraft Online CA-NA CA-ROW Total ATG Aircraft Online1 845 - 845 ATG-4 Aircraft Online 1,783 - 1,783 Ku Aircraft Online - 261 261 2Ku Aircraft Online 163 57 220 Total Aircraft Online 2,791 318 3,109 2Ku Aircraft Installed

  23. Slide 23: Adjusted EBITDA reconciliation ($M)

    Adjusted EBITDA reconciliation ($M) 2016 2016 2016 2017 2017 2011 2012 2013 2014 2015 2016 Q2 Q3 Q4 Q1 Q2 Net Income (18) (96) (146) (85) (108) (125) (40) (33) (27) (41) (44) Interest Income (0) (0) (0) (0) (0) (2) (0) (1) (1) (1) (1) Interest Expense 1 9 29 33 59 84 18 25 25 27 27 Income Tax Provis

Gogo — Investor Presentation (September 2017) on 6ix