NextNav Inc. · NASDAQ:NN
NextNav — SPAC Merger (June 2021)
42 slides from NextNav's SPAC merger presentation, Jun 10, 2021
Slide 1: Welcome to Next Generation GPS
Welcome to Next Generation GPS
Slide 2: Disclaimer
Disclaimer Disclaimer and Cautionary Note Regarding Forward-looking Statements Trademarks projected financial information with respect to NextNav; (v) risks related to the rollout of NextNav’s This presentation (together with oral statements made in connection herewith, this “Presentation”) All righ
Slide 3: Unique sponsor & target partnership
Unique sponsor & target partnership SPARTACUS Strong Strategic Partner • Extensive history with NextNav’s people and assets Experienced Leadership Team • Nearly three decades of telecom experience Impressive Track Record • A history of transformational investments in wireless Robust Business Plan •
Slide 4: Today's presenters
Today’s presenters NextNav Spartacus Gary Ganesh Chris Peter Neil Parsons Pattabiraman Gates Aquino Subin CHAIRMAN CO-FOUNDER, PRESIDENT & CEO CFO CHAIRMAN & CEO CIO, MILFAM 3
Slide 5: GPS impact on the US economy approaching $1 Trillion annually
GPS impact on the US economy approaching $1 Trillion annually and doubling every 2-3 years GPS is a single point of failure—we rely on it for aviation, agriculture, telecommunications, power grids, financial transactions, maps and more. Source: NextNav extrapolation of NIST sponsored study, conducte
Slide 6: Industry needs have evolved beyond tech created in the 60's
Industry needs have evolved beyond tech created in the 60’s Increased accuracy and availability in urban environments We need Indoor tracking and mapping Altitude data (3D location) Increased resilience and redundancy Increased security 5
Slide 7: Today's economy requires Next Generation GPS
Today’s economy requires Next Generation GPS • Apps—rideshare, delivery, and others • Indoor mapping • Autonomous vehicles, eVTOLs and UAVs • Critical infrastructure • Public Safety 6
Slide 8: NextNav is Next Generation GPS
NEXTNAV IS NEXT GENERATION GPS MORE AVAILABLE MORE RESILIENT MORE ACCURATE 7
Slide 9: NextNav is targeting a >$100 Billion addressable market
NextNav is US OPPORTUNITIES GLOBAL OPPORTUNITIES targeting a >$100 Billion addressable market today $4 Billion $24 Billion >$50 Billion Mission-critical public Mass market, mobile Upside from safety and e911 apps, and data analytics global expansion(1) $10 Billion $11 Billion Autonomous vehicles, En
Slide 10: Making smart cities safe cities
MARKET OPPORTUNITY: Making smart cities safe cities • Partners with AT&T and FirstNet to provide real time, 3D situational awareness to First Responders • NextNav technology proven to exceed FCC’s e911 vertical location accuracy mandate 240 MILLION 911 calls rely on GPS annually Source: NENA 9
Slide 11: NextNav enables the app economy
MARKET OPPORTUNITY: NextNav enables the app economy • Inaccurate location and spoofing plagues apps today • First solution to provide floor level accuracy • Augmented reality requires precise location data • Large universe of apps utilize location data to enhance user experience and target advertisi
Slide 12: Autonomous vehicles require resilient and precise location data
MARKET OPPORTUNITY: Autonomous vehicles require resilient and precise location data • More precise and resilient navigation, particularly in urban areas • Liability concerns influence fail-safe system design • Quicker detection and more precise correction of sensor driven error • In-vehicle systems
Slide 13: eVTOLs and UAVs raise the stakes higher
MARKET OPPORTUNITY: eVTOLs and UAVs raise the stakes higher • Reliable navigation in urban areas requires precise location awareness • 3D situational awareness required for urban air mobility • Selected by NASA for Urban UAV operations 350 MILLION eVTOL TRIPS in the US per year in the near future(1)
Slide 14: The enterprise IoT will be powered by Next Generation GPS
MARKET OPPORTUNITY: The enterprise IoT will be powered by Next 1.2 BILLION IoT connections Generation GPS in the US by 2024(1) • Asset tracking & IoT require precise 3D location • Tracking high-value assets • Smart warehouses • Lone and industrial worker productivity and safety (1) Projection from A
Slide 15: Bringing resiliency to critical infrastructure
MARKET OPPORTUNITY: Bringing resiliency to critical infrastructure • Resilient timing/location services for critical infrastructure is a national security priority • Active Congressional legislation and Presidential directives create opportunity for Next Generation GPS enablement • Significant oppor
Slide 16: NextNav's long-term vision
NextNav’s long-term vision NextNav Next Generation GPS will be the global gold standard for location and timing services • Irreplaceable deployed nationwide network • Vital and fully integrated service • Critical for safety and the mobile economy Resulting in a robust long-term financial profile wit
Slide 17: NextNav is Next Generation GPS
SOLUTION PROFILE: NextNav is Next Generation GPS 16
Slide 18: Pinnacle
SOLUTION PROFILE: Pinnacle • Vertical location +/- 3 meter “floor level” accuracy 94% of time • Ubiquitous Network Coverage (90% of 3+ story structures in 4,400 cities today) “ NextNav’s Pinnacle is the most reliable z-axis service available.” -Scott Agnew ASSISTANT VICE PRESIDENT OF PRODUCT MARKETI
Slide 19: TerraPoiNT
SOLUTION PROFILE: TerraPoiNT • 3D performance of 2.3m(1) • Only solution to deliver 3D positioning, navigation and timing among 11 technologies tested by DOT • Highest performing Next Generation GPS solution provider as determined by DOT • Initial operations in 47 markets “All vendors demonstrated s
Slide 20: Sequential go-to-market plan
Sequential go-to-market plan 3 Global Standard Provider of highly reliable, critical, location services Service 2 Proliferation Become key provider of location services to a wide range of apps Market 1 Penetration Partnership with AT&T to launch NextNav services across US for FirstNet > 200 OPPORTUN
Slide 21: The NextNav opportunity set is global
MARKET OPPORTUNITY: The NextNav opportunity set is global • Target developed markets with similar characteristics to the US • Includes certain markets in the Americas, Western Europe, and East Asia • Near-term vertical opportunities in Canada, EU and Japan • Joint venture with Metcom (Sony and Kyoce
Slide 22: Deep competitive moat
Deep competitive moat 100+ Patents 2.4bn MHz-PoPs 4,400 Cities Global intellectual One-of-a-kind nationwide Covered by NextNav property portfolio spectrum license portfolio deployed network 21
Slide 23: Spectrum license at core of competitive advantage
Spectrum license at core of competitive advantage 902 928 US Location and Monitoring Services (LMS) Band NextNav freq (MHz) 900 MHz 900 MHz 8 MHz Broadband Contiguous Broadband 919.75 927.75 Virtually nationwide, covering 93% of US population Sole commercial licensee / operator in LMS band Generous
Slide 24: NextNav Management
NextNav Management PIONEERS IN LOCATION-BASED SERVICES Ganesh Pattabiraman Arun Raghupathy Chris Gates CO-FOUNDER, CEO, PRESIDENT CO-FOUNDER & SVP OF CFO ENGINEERING David Knutson Dan Hight SVP OF NETWORK OPS AND VP OF SALES & BUSINESS DEPLOYMENT DEVELOPMENT 23
Slide 25: Board of Directors
Board of Directors Current investors drawn from leaders in mobile technology Gary Parsons Ganesh Pattabiraman Peter Barris Bandel Carano CHAIRMAN CO-FOUNDER, CEO, DIRECTOR DIRECTOR PRESIDENT Managing General Partner, Managing Partner, Former Chairman of NEA Oak Investment Partners Sirius/XM Radio, S
Slide 26: Massive operating leverage results in highly attractive unit economics
Massive operating leverage results in highly attractive unit economics Incremental dollar of revenue Incremental expense Low variable cost to add incremental network traffic $0.89 Incremental EBITDA per dollar of incremental revenue Source: Management estimates. 25
Slide 27: Total revenue forecast
Total revenue forecast Key commentary $ IN MILLIONS • Mass Market apps becomes 2026E largest driver of revenue in International Mission-critical public 2022E 17% safety and e911 6% $506 • Revenue opportunity significantly expands once TerraPoiNT network build-out Enterprise, IoT, is complete in 2025
Slide 28: Financial projections overview
Financial projections overview $ IN MILLIONS 2021E 2022E 2023E 2024E 2025E 2026E Total revenue $2 $24 $75 $162 $308 $506 % Growth NM 857% 215% 115% 90% 64% (-) COGS (2) (6) (47) (103) (132) (138) Gross margin $0 $18 $28 $59 $176 $367 Expected long- term gross profit % Margin 18% 75% 37% 36% 57% 73%
Slide 29: Transaction summary
Transaction summary $ AND UNITS IN MILLIONS, EXCEPT PER SHARE VALUES Sources Pro forma valuation SPAC cash in trust (assumes 100% roll)(1) $203 Pro forma FDSO(6) 121 Target rollover equity(2) 750 Illustrative share price $10.00 PIPE(3) 205 Pro forma market cap $1,205 (-) Pro forma cash(7) (308) Tota
Slide 30: Operational benchmarking
Operational benchmarking CY2021E – CY2026E REVENUE CAGR Y2020E – CY2022E REVENUE CAGR (2) MEDIAN: 235% MEDIAN: 38% MEDIAN: 8% (1) 629% 400% (3) 296% (2) 272% 189% 198% 96% (3) 57% 38% 23% 23% 14% 9% 7% 0% CY2026E UFCF CONVERSION CY2021E UFCF CONVERSION CY2026E EBITDA MARGIN 46% NA 11%(4) 21%(4) 13%
Slide 31: Attractive entry valuation
Attractive entry valuation TEV / CY2026E EBITDA TEV / CY2021E EBITDA MEDIAN: 10.2X MEDIAN: 13.3X MEDIAN: 14.9X 43.4x (1) 22.0x (1) 22.4x 20.7x 19.6x 13.3x 11.2x (1) 10.4x 10.2x 9.2x 9.0x 7.2x 4.2x 5.6x 3.9x TEV / CY2026E UFCF TEV / CY2021E UFCF MEDIAN: 15.5X MEDIAN: 18.3X MEDIAN: 18.2X (2)(4) 43.4x
Slide 32: Transaction represents attractive discount to peers
Transaction represents Summary attractive discount to peers of approach $ IN MILLIONS • 2026E UFCF includes benefit $8,848(2) of TerraPoiNT network, but with robust growth thereafter $4,989 as network utilization continues to ramp Discounted back 4.5 years at 20% discount rate • The applied multiple
Slide 33: Investment highlights
Investment highlights Next Generation GPS solution Sequential will sit at the core of deployment the app economy limits risk Competitive >$100 Billion moat total addressable market deepened by IP, spectrum, and network Unrivaled Growing list of capabilities Blue-chip customers powered by bullet incl
Slide 34: Next Generation GPS is here.
N NEXTNAV Next Generation GPS is here.
Slide 35: NextNav + AT&T FirstNet
NextNav + AT&T FirstNet • NextNav has partnered with AT&T to bring full 3D situational awareness From this To this to first responders • Vertical location is essential to incident management and responder safety • Enhances applications and, as early adopter, improves core FirstNet LTE service differ
Slide 36: NextNav + Gimbal
NextNav + Gimbal • NextNav is working with Gimbal to bring enhanced 3D experiences to their customers and consumers • Gimbal provides enhanced location products to approximately 150mm monthly average users through their SDK across retail, restaurants, hospitality and sports/events venues • NextNav’s
Slide 37: NextNav + Joby
NextNav + Joby • NextNav is working with Joby Aviation to deploy TerraPoiNT technology on Joby Aviation aircraft • GPS degradation and vulnerabilities (e.g., jamming, spoofing) drives need for positioning source, including accurate altitude • TerraPoiNT’s encryption and 100,000x signal strength comp
Slide 38: DOT report rankings
DOT report rankings TIMING(1) POSITIONING(2) TIMING(3) PNT(4) TIMING(5) PNT(6) Ground Ground Performance Performance Broadcast Broadcast broadcast broadcast Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score UHF terrestrial RF (920-928 MHz) 11 91 11 91 11 82 11 82 11 82 11 82 LEO comm
Slide 39: e911 reporting
e911 reporting • Rigorous testing has been performed during the past Distribution function (CDF) all data decade to evaluate the suitability of various vertical 1.0 location technologies as solutions to the FCC’s 9-1-1 Location Accuracy Report & Order 0.8 • The FCC Order mandates that wireless carri
Slide 40: NextNav's unparalleled technology as an evolution to GPS
NextNav’s unparalleled technology as an evolution to GPS BACK-END APPLICATION + LOCATION ANALYTICS INFORMATION Cloud platform OTHER MAPS & Device/software DATASETS BUILDING DATA Next Generation GPS 39
Slide 41: GPS impact on the US economy approaching $1 Trillion annually
GPS impact on the US economy approaching $1 Trillion annually $ IN BILLIONS YOY GROWTH RATE: (33%) 20% 8% 8% 7% 20% 17% 10% 9% 4% 27% 36% 78% 56% 28% 31% 24% 17% 24% 24% 24% 24% $700 $600 $500 $400 $300 $200 $100 - Pre-2000 2000A 2001A 2002A 2003A 2004 A 2005A 2006A 2007A 2008A 2009A 2010A 2011A 201
Slide 42: Relevant spectrum data points
Relevant spectrum data points $2.32 $897mm TEV $1.62 ÷ 8 MHz ÷ 300mm POP $1.02 $1.07 $0.93 $0.80 $0.81 $ / MHz-POP $0.65 $0.37 Buyer / Seller VARIOUS VARIOUS VARIOUS @ Deal Value @ Public @ Private @ 600 MHz @ 3.8 - 3.9 GHz @ Private @ 3.7 - 3.8 GHz @ Private Market Value Market Value Auction C-Band