Anterix Inc. · NASDAQ:ATEX
Anterix — Investor Presentation (November 2020)
22 slides from Anterix's investor presentation, November 2020
Slide 1: Investor Presentation
oe ee Investor Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement FORWARD-LOOKING STATEMENTS Certain statements contained in this presentation, other than purely historical information, including, but not limited to, estimates, projections, statements relating to our regulatory initiatives, business plans, objectives and expected operating re
Slide 3: Anterix is focused on delivering transformative private broadband
Anterix is focused on delivering transformative private broadband that enables the modernization of critical infrastructure for multiple sectors of our economy including energy, transportation and logistics. As the largest holder of licensed spectrum in the 900 MHz band, with nationwide coverage thr
Slide 4: Powering Private Communications for Critical Infrastructure Industries and Enterprises
Powering Private Communications for Critical Infrastructure Industries and Enterprises 1 Premium 900 MHz spectrum 2 Growth opportunities 3 Strong leadership • Largest holder of 900 MHz spectrum in the U.S. • Large and growing total addressable market • Nextel co-founders and industry veterans • Reco
Slide 5: Nationwide 900 MHz Licensing Landscape
1 Nationwide 900 MHz Licensing Landscape* Existing CII1 13% Together, Anterix and the FCC represent 74% of the FCC 900 MHz nationwide band. 22% (vacant) 52% SMR PRIVATE ENTERPRISE 6% 7% Composition of 900 MHz 5x5 Band *Based on calculated MHz-Pops from currently available FCC ULS license data, 2010
Slide 6: Potential for Spectrum Realignment
Potential for Spectrum Realignment 1 1 The 900 MHz band is a contiguous 5 x 5 MHz block of spectrum separated into 40 interleaved blocks; each block holds 10 channels of paired 12.5 kHz channels allocated for either SMR or B/ILT use. 896.0 897.5 900.5 901.0 A B C D E F G H I J K L M N O P Q R S T Na
Slide 7: Why is 900 MHz Spectrum so Valuable?
1 Why is 900 MHz Spectrum so Valuable? • Nationwide low-band licensed spectrum • Global Standards based • Minimum of 3 MHz paired • Enables secure, private LTE networks 7
Slide 8: Low-Band Spectrum Advantages
1 Low-Band Spectrum Advantages Illustration of Better Propagation and Coverage of Low-band Compared to Mid-band Spectrum Distance (radius) Geographic coverage (area) 900 MHz 900 MHz 2.5x 5x 2.5 GHz 2.5 GHz 1x 1x 8
Slide 9: Lower Total Cost of Ownership
1 Lower Total Cost of Ownership Anterix estimated costs of a private LTE network (67 vs. 333 sites) Relative 10-Year Capex & Opex of low-band vs. mid-band spectrum to cover 10,000 sq. km Capex (cost per site) 10-yr Opex (cost per site / mo) 100% 5x LOWER 71% OPERATING COSTS THAN AT 5x higher 2.5 GHz
Slide 10: Spectrum Comparables
1 Spectrum Comparables Implied nationwide 6 MHz valuation 1 $1.8B $2.9B $5.2B $3.00 $2.00 $ / MHz-Pop $2.69 $1.00 $1.50 $0.93 $0.00 2 3 4 600 MHz incentive auction Avg. valuation of low band spectrum AWS-3 auction Significant value of 900 MHz band implied by comparables 1 Represents the estimated na
Slide 11: Retuning Snapshot
1 Retuning Snapshot Medium Systems • Typically single site • ~120 systems each with +6 channels Large Systems Lg Med Sm • Multi-site Small Systems • ~60 systems of which • Single site 6 are complex • ~220 systems with 5 or less channels 60 220 Excludes MTA licensees and railroads and systems with 65
Slide 12: Bull's Eye Focus
2 Bull’s Eye Focus We are sharply focused on the electric utilities industry with opportunities in other verticals Mining Oil & Gas Utilities Transportation Water 12
Slide 13: Why Investor Owned Utilities ("IOUs")?
2 Why Investor Owned Utilities (“IOUs”)? Regulated Rate of IOU Industry Return Opportunity Prudent spend Investments for customer in capital Large addressable benefit improvement market 13
Slide 14: Private LTE Market Opportunity: Attractive & Growing
2 Private LTE Market Opportunity: Attractive & Growing Anterix is well positioned in a large Secular trends provide strong tailwinds: and rapidly growing market Systemic risk of cyber invasions $30B California wildfire mitigation Increased demand for data-rich applications Decarbonization / Renewabl
Slide 15: Growing set of use cases Private LTE can solve for
2 Growing set of use cases Private LTE can solve for Grid automation efforts place more stringent requirements on network performance and reliability. Transmission Automation Distribution Substations Distribution Automation • Tension line monitors • RTUs • Reclosers • CCTV Cameras • Capacitors Banks
Slide 16: Proposed Business Model Focused on Long-term Value
2 Proposed Business Model Focused on Long-term Value 20+ year lease terms High credit quality customer base Seeking to build a lease portfolio with investment-grade Annual escalators counterparties and long-term escalating cash flows Renewal options Low servicing costs 16
Slide 17: Anterix Contracted Revenue Projection
2 Anterix Contracted Revenue* Projection Annual Run Rate Additional $500M Opportunities Increased Utility Penetration $250M Penetration into Other Vertical Markets $150M $125M Network of Networks and Other Services Other Spectrum Opportunities Year 5 Year 10 (FY2024) (FY2029) *Contracted Revenue is
Slide 18: Two-pronged Market Strategy
2 Two-pronged Market Strategy Our “Go-to-market” strategy utilizes both Bottom-Up and Top-Down approaches Drive industry adoption Top-Down Bottom-Up Driving utility industry Identifying demand regulators to support our through account initiative management 18
Slide 19: Diversified Opportunities for Growth
2 Diversified Opportunities for Growth Myriad of growth opportunities Additional private broadband platform opportunities Other spectrum • Oil & gas opportunities Increase adoption • Mining within utility industry Access other Contracted vertical • Transportation revenue markets Develop “network of
Slide 20: Our Proven Experience
3 Our Proven Experience: A history of similar experiences backed by proven expertise Underutilized spectrum (800 MHz) Underutilized spectrum (900 MHz) FCC rule modification FCC rule modification Private Enterprise (iDEN) Private Enterprise (LTE) 20
Slide 21: Experienced Leadership Team
3 Experienced Leadership Team PAST EXPERIENCE INDUSTRY / ROLE EXPERIENCE Morgan O’Brien • Co-founder and Chairman of Nextel Communications 40+ Chairman of the Board Rob Schwartz • Career telecommunications innovator with executive experience in the mobile and President & Chief Executive Officer 25+
Slide 22: Financial Snapshot
Financial Snapshot Balance Sheet ($ millions) As of June 30, 2020 Cash $124.8 Intangible Assets 115.8 Accounts Payable and Accrued Expenses 4.0 Noncurrent Deferred Revenue 2.6 Stockholders’ Equity Additional Paid-in Capital 455.4 Accumulated Deficit (221.0) Shareholders’ Equity $234.4 22