Gilat Satellite Networks Ltd. · NASDAQ:GILT
Gilat Satellite Networks — Investor Presentation (February 2019)
34 slides from Gilat Satellite Networks's investor presentation, Feb 13, 2019
Slide 1: Gilat Satellite Networks Company Overview February 2019
Gilat satellite NetworksCompany Overview February 2019 NASDAQ, TASE: GILT
Slide 2: Forward Looking Statements Disclaimer
Forward Looking Statements Disclaimer Certain statements made in this presentation that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words "estimate", "project", "intend", "expect", "believe" and similar expressions are intend
Slide 3: Gilat – Boundless Communications
Gilat – Boundless Communications MOBILITY MOBILE Air Land Enterprise Consumer 4G/5G Sea MOST ADVANCED TECHNOLOGYTerrestrial-grade user experience END-TO-END SERVICEMost stringent service levels GLOBAL PRESENCE20 sales offices BROADBAND 2G/3G Established 1987 NASDAQ / TASE: GILT ~1,100 employees
Slide 4: Global Footprint – Expanding a Diverse Customer Base
Global Footprint – Expanding a Diverse Customer Base 300+ customers 500+ Networks 90+ countries SYSTEM INTEGRATORS GOVERNMENTS SATELLITE OPERATORS CARRIERS & SERVICE PROVIDERS
Slide 5: Booming capacity – GEO + LEO/MEO
Booming capacity – GEO + LEO/MEO Global HTS Bandwidth Supply, Demand and Price per Mbps $/Mbps/Month Gbps ~16 times today Source: Euroconsult, NSR, 2017 ABUNDANCE OF CAPACITY UNLOCKS NEW MARKETS
Slide 6: Affordable Internet Everywhere is Becoming a Birth Right
Affordable Internet Everywhere is Becoming a “Birth Right” WE ALL WANT BROADBAND Everywhere. Anytime. Affordable. WE ALL WANT BROADBAND Everywhere. Anytime. Affordable. Mobility Broadband Mobile SATELLITE DELIVERS Affordable, Plentiful, Terrestrial-grade User Experience
Slide 7: Accelerating Connectivity – Growth Areas
Accelerating Connectivity – Growth Areas Mobile Cellular Backhaul,Network Resilience, Public Safety Mobility In the Air, at Sea, on the Ground Broadband Broadband to the Unserved and Underserved
Slide 8: Mobile
Mobile
Slide 9: Leading the Fast Growing Satellite Backhaul Market
Leading the Fast Growing Satellite Backhaul Market $790M(2017) $3,300M(2027) Satellite Backhaul Market “Gilat continues to unlock new opportunities and capture a bigger share of the pie…” Source: NSR, April 2018
Slide 10: Global End-to-End Services
Global End-to-End Services Affordable true LTE Backhaul Enabling “Terrestrial-grade” User Experience Delivering “terrestrial-grade” User Experience Rapid network deploymentExpanding coverage to: rural, highways, islands, tourist centers, campuses, metro-edge and metro areasReplacing leased lines and
Slide 11: World's Fastest Broadband for LTE Backhaul
World’s Fastest Broadband for LTE Backhaul 11 | Proprietary and Confidential
Slide 12: Metro Area - A Live Example
12 | Proprietary and Confidential METRO AREA - A LIVE EXMPLE
Slide 13: Mobility
Mobility
Slide 14: Mobility – Superior Passenger Experience Drives Demand
MOBILITY – Superior Passenger Experience Drives Demand Satellite Broadband Connected Aircrafts 5,200(2017) 27,800(2027) Source: EuroConsult, July 2018 Commercial Aircrafts 500(2017) 8,800(2027) Source: EuroConsult, July 2018 Business Aircrafts
Slide 15: One Network Delivering Superior Passenger Experience
One Network Delivering Superior Passenger Experience >2,200 aircrafts World’s Fastest SpeedIn-Flight Connectivity Global Coverage Over 25 Satellites 15 Teleports
Slide 16: Leading Performance Solutions for All In-Flight Connectivity
Leading Performance Solutionsfor All In-Flight Connectivity Modules Ku and KaTransceivers Dual BandKu/Ka Antenna 400MbpsModem ESA/PAA 16 | Proprietary and Confidential
Slide 17: Broadband
sa BROADBAND 417 | Proprietary and Confidential
Slide 18: Delivering Core Infrastructure for National Broadband
Delivering Core Infrastructure for National Broadband Broadband to unserved & underserved Bridging the digital divide Connecting communities and individuals to the world via broadbandInnovating to deliver plentiful affordable Consumer and Enterprise solutions Gazprom Providing broadband connectivity
Slide 19: NGSO
NGSO 19 | Proprietary and Confidential
Slide 20: Constellations and networks are getting more complex
Constellations and networks are Getting more complex GEO MEO LEO Multi-satellite 1K-10K/constellation Multi-orbit GEO/MEO/LEO Multi-beam Thousands per satellite Multi-band Ku, Ka, C MEO 2,000-10,000 km GEO 35,786 km LEO500-2,000 km Next-Gen Technologies Needed – Complex NMSs, Strong Modems, ESA 20 |
Slide 21: NGSO is materializing
NGSO is materializing Opportunity is both baseband as well as ESA antennasIFC demo – Telesat/GEE Maritime connectivity demo – Telesat/Tier-1 Maritime service provider Gilat involved in a number of them Several constellations in advanced stages: SpaceX, OneWeb, Telesat, mPower O3b mPOWER
Slide 22: 5G-ready satellite solution
5G-ready satellite solution Service Ubiquity Service to regions without terrestrial networke.g. rural/remote, public safety, disaster, IoT Service Continuity Continuity between terrestrial and satellite networkse.g. aero, maritime, land Service Scalability Media servicee.g. global feed, video backha
Slide 23: Financial Indicators and Analysis
Financial Indicators and Analysis
Slide 24: 2018 Annual Profit and Loss Highlights
2018 annual Profit and Loss Highlights US$ millions Revenues$266.4M ($282.8M)(6%)YoY Gross ProfitGAAP 35% (29%)Non GAAP 36% (31%) Revenues w/o Terrestrial Infra$241.4M ($204.5M)18% YoY Mobility RevenuesMainly IFC$97.2M ($88.4M)10% YoY OPEXGAAP $72.8M ($71.6M)Non GAAP $71.9M ($68.8M) Operating Profit
Slide 25: Annual Profit and Loss Highlights
annual Profit and Loss HighlightsUS$ millions, except per share data * Include tax amnesty, goodwill impairment, restructuring cost and trade secrets litigation expenses (income)** Adjustments reflect the effect of non-cash stock based compensation as per ASC 718, amortization of intangible assets r
Slide 26: 2019 Guidelines and Outlook
2019 guidelines and outlook – increased profitability US$ millions Revenues$275M-$295M ($266.4M)3%-11% YoY >60%of 2019 revenues from current backlog Revenues w/o Terrestrial Infra$252M-$265M ($241.4M)4%-10% YoY Mobility RevenuesMainly IFC$101M-$107M ($97.2M)4%-10% YoY Operating ProfitGAAP $23M-$27M
Slide 27: Executing Profitable Growth Strategy
Executing Profitable Growth Strategy Annual Revenues Adjusted EBITDA Revenues: $275M - $295MGAAP Operating Profit: $23M - $27M Adjusted EBITDA: $38M - $42M GAAP Operating Profit 2019 Management Objectives (US$ millions)
Slide 28: Gilat Revenues & Terrestrial Infrastructure Breakdown
Gilat revenues & terrestrial infrastructure breakdown US$ millions $283M $266M $275M-$295M
Slide 29: Annual Revenue per Segment
Annual Revenue per Segment US$ millions $283M $266M $275M-$295M
Slide 30: Q4 2018 Profit and Loss Highlights
Q4 2018 Profit and Loss Highlights US$ millions Revenues$69.7M ($82.7M)(16%) YoY Gross Profit/MarginGAAP $26M – 37% ($25.2M – 31%)Non GAAP $26.3M – 38% ($26.4M – 32%) Mobility RevenuesMainly IFC$29.6M ($32.6M) OPEXGAAP $18.5M ($19.6M)Non GAAP $18.4M ($19.4M) Operating Profit/MarginGAAP $7.5M – 11% (
Slide 31: Quarterly Profit and Loss Highlights
Quarterly Profit and Loss Highlights US$ millions, except per share data GAAP Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Revenues 82.7 67.4 66.5 62.8 69.7 Gross Profit 25.2 21.4 22.4 24.2 26.0 Gross Margin 31% 32% 34% 39% 37% R&D, net 8.2 8.0 7.9 8.2 8.9 S&M 6.6 5.4 6.3 5.5 5.5 G&A 5.0 4.3 4.1 4.6 4.3 Other expe
Slide 32: Balance Sheet Highlights
Balance Sheet HighlightsUS$ millions 1) Including cash and cash equivalents, restricted cash and net of short term bank credits2) DSO calculation excludes Terrestrial Infrastructure Projects Segment3) Q4-18 (Q3-18) Cash and equivalents1$104.2 ($103.3) DSO271 days (73 days) Total Assets$394.7 ($391.3
Slide 33: In Summary – Uniquely Positioned for Unlocking Opportunities
In Summary – Uniquely Positioned for Unlocking Opportunities Demand for plentiful affordable broadband, anywhere anytime, is soaring Product leadership and innovation Leading in the main growth areas – Mobile Backhaul & IFC Mobility Oversupply of capacity unlocks new markets Focused on strategy exec
Slide 34: Thank You
HANK YOU Gilat Satellite Networks | info@gilat.com | www.gilat.com
Gilat Satellite Networks — Investor Presentation (February 2019) on 6ix