Gilat Satellite Networks Ltd. · NASDAQ:GILT
Gilat Satellite Networks — Investor Day (November 2019)
31 slides from Gilat Satellite Networks's investor day presentation, Nov 26, 2019
Slide 1: Gilat Business Update – Investors Day
Gilat Business updateInvestors Day CEO Yona Ovadia November
Slide 2: 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 ~900 employees
Slide 3: 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 HTS/VHTS/NGSO Broadband to the Unserved and Underserved Developed, not developing world Introducing the concept of recurring revenue Increased inve
Slide 4: Gilat five main pillars – growth engines
Gilat five main pillars – 3 growth Engines HTS/VHTSNGSO 5G WavestreamSSPAs Peru Mobility AeroBaseband Antenna Cellular BackhaulEnt, consumer Broadband Mobile Mobility Recurring Revenue Positively impact on Gilat’s performance and bright future:NGSO, and the mPower winAero and free wi-fiProgress in C
Slide 5: Broadband: Evolution, revolution
Broadband:Evolution, revolution
Slide 6: Satellites HTS/VHTS: Evolution
Satellites HTS/VHTS: Evolution Telesat~9 Tbps 512 Satellites GEO EVOLUTION: WIDE BEAM HTS VHTS HTS Evolution NGSO Revolution Commercial GEO Satellite Orders Manufacturing Orders Although less GEO satellites are built, they are more powerful WIDE BEAM (X Gbs) HTS (10X Gbs) VHTS (100X Gbs) Sat
Slide 7: Satellite revolution: NGSO is a reality
Satellite revolution: NGSO is a reality MEO 5,000-10,000 km~120msec GEO 35,786 km~550msec LEO200-2,000 km~15msec SES/mPOWER~2 Tbps 22 Satellites OneWeb~4.5 Tbps 600 Satellites SpaceX~20Tbps 4425 Satellites HAPs10-50 km~5msec HTS/VHTS~100-500 Gbps Telesat~9 Tbps 300 Satellites Amazon~20Tbps 3236 Sate
Slide 8: NGSO is materializing
NGSO is materializing Gilat is engaged with several NGSO operators : SES/mPower, Telesat, OneWeb, SpaceX, and AmazonWon mPower:Significant revenue opportunitySeveral successful demonstrations with Telesat's LEO Satellite: Opportunity in Both Baseband and ESA mPower positions us well in the vast mark
Slide 9: Our vision of abundance capacity is materializing
Our vision of Abundance capacity (GEO + NGSO) is materializing 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 10: Paving the path to 5G
Paving the path to 5G Maintaining Gilat’s 4G Superiority on the Path to 5G Paving the path to 5G Significant Investment in R&D 5G
Slide 11: Mobility
Mobility
Slide 12: Mobility – Superior Passenger Experience Drives Demand
MOBILITY – Superior Passenger Experience Drives Demand Satellite Broadband Connected Aircrafts 7,200(2018) 27,800(2028) Source: NSR, April 2019 Commercial Aircrafts ~850(2018) 5,300(2028) Source: NSR, April 2019 Business Jet Aircrafts
Slide 13: One of the largest single networks – GOGO
One of the largest single network Gilat enables GOGO - the largest IFC Network The largest IFC provider with >2,450 aircrafts World’s fastest speedIn-Flight connectivity ~1,500 commercial aircraft installed and activated with satellite More then 1300 with Gilat Aero modem +850 backlogSep 2019 Gilat`
Slide 14: Aero connectivity and the free Wi-Fi opportunity
Aero connectivity and the free Wi-Fi opportunity Free Wi-Fi Trend Represent Significant Opportunity for Gilat “ We did conduct two weeks of tests, it was on a limited scale. We learned a lot about the technical capacity challenges when you want to open up Wi-Fi free with great broadband capabilities
Slide 15: Aero Antennas – accelerating growth
First project – aero parabolic antennaStrategic agreement with Tier-1 aviation service providerExpansion into business aviationBest in class product Aero Antennas - accelerating growth Global Aero Flat Panel Antenna (Cumulative) “The aero vertical will Generate $8.4B in cumulative equipment revenues
Slide 16: ESA Aero Antennas – Next Gen Antenna
ESA Aero Antennas - Next Gen Antenna Horizon 2020 - Joint Development Project An established player in the Phased Array Antenna (PAA) for the defense (UAV) marketDeveloping an ESA (Electronically Steered Antenna)Won a Technology Demonstrator project with Airbus ESA Represents a Significant Growth En
Slide 17: Mobile
Mobile
Slide 18: Leading the Fast Growing 4G/LTE Satellite Backhaul Market
Leading the Fast Growing 4G/LTE Satellite Backhaul Market Source: NSR, April 2019 For the first time, Gilat gets to the pole position in shipment “ “ Being able to differentiate with a compelling managed service offer is key to gain business and defend healthy margins “ “ SATELLITE BACKHAUL MARKETSe
Slide 19: Japan – the Land of the Rising Sun
Japan – the "Land of the Rising Sun“ High ARPU countryGeography: islands, earthquakesRelationships of trust and loyalty CBH is one of the main sources of managed service - recurring revenues
Slide 20: Peru
Peru
Slide 21: Got approval to move to ops in R1
Got approval to move to ops in R1 21 R3:AmazonasICA R2:Cusco R1:HuancavelicaAyacuchoApurimac Q4 2019 - started selling services over the network, First $10m deal with IPT, Confident we will win more. Our target is to turn Peru into a source of profitable recurring revenue of(at least) ~$50m/year
Slide 22: Peru – political focus on the program
Peru –political focus on the program
Slide 23: Financial Indicators Highlights
Financial Indicators Highlights
Slide 24: Executing Profitable Growth Strategy
Executing Profitable Growth Strategy Annual Revenues Adjusted EBITDA Revenues: $260M - $270MGAAP Operating Profit: $23M - $27M Adjusted EBITDA: $38M - $42M GAAP Operating Profit Updated 2019 Management Objectives (US$ millions)
Slide 25: Updated 2019 guidelines and outlook
Updated 2019 guidelines and outlook – increased profitability US$ millions Revenues$260M-$270M ($266.4M)(2%)-1.4% YoY Revenues w/o Terrestrial Infra$234M-$240M ($241.4M)(3%)-0% YoY Mobility RevenuesMainly IFC$105M-$108M ($97.2M)8%-11% YoY Operating ProfitGAAP $23M-$27M ($21.3M)Non GAAP $27M-$31M ($2
Slide 26: Gilat revenues & terrestrial infrastructure breakdown
Gilat revenues & terrestrial infrastructure breakdown US$ millions
Slide 27: Annual Revenue per Segment
Annual Revenue per Segment US$ millions 283M 266M 260M-270M
Slide 28: Q3 2019 Profit and Loss Highlights
Q3 2019 Profit and Loss Highlights US$ millions Revenues$63.4M ($62.8M)(1%) YoY Gross Profit/MarginGAAP $23.3M – 37% ($24.2M – 39%)Non GAAP $23.3M – 37% ($24.5M – 39%) Mobility Revenues$27.1M ($21.8M) OPEXGAAP $16.3M ($18.2M)Non GAAP $15.8M ($18.0M) Operating Profit/MarginGAAP $7.0M – 11% ($6.0M – 1
Slide 29: Quarterly Profit and Loss Highlights
Quarterly Profit and Loss Highlights US$ millions, except per share data GAAP Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Revenues 62.8 69.7 62.1 59.7 63.4 Gross Profit 24.2 26.0 23.6 22.0 23.3 Gross Margin 39% 37% 38% 37% 37% R&D, net 8.2 8.9 8.3 7.1 7.1 S&M 5.5 5.5 5.9 5.4 5.0 G&A 4.6 4.3 4.9 4.6 4.1 Other inco
Slide 30: 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) Q3-19 (Q2-19) Cash and equivalents1$84.2M ($69.5M) DSO286 days (83 days) Total Assets$358.8M ($365.
Slide 31: Thank You
HANK YOU Gilat Satellite Networks | info@gilat.com | www.gilat.com
Gilat Satellite Networks — Investor Day (November 2019) on 6ix