Gilat Satellite Networks Ltd. · NASDAQ:GILT
Gilat Satellite Networks — Investor Presentation (May 2018)
30 slides from Gilat Satellite Networks's investor presentation, May 16, 2018
Slide 1: Gilat Satellite Networks Company Overview February 2018
Gilat satellite NetworksCompany Overview February 2018 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 RURAL BROADBAND 2G/3G Established 1987 NASDAQ / TASE: GILT ~1,100 employee
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 Rural Broadband Mobile SATELLITE DELIVERS Affordable, Plentiful, Terrestrial-grade User Experience
Slide 7: Accelerating Connectivity – Growth Areas for Gilat
Accelerating Connectivity – Growth Areas for Gilat Mobile Cellular Backhaul,Network Resilience, Public Safety Rural Broadband Broadband to the Unserved and Underserved Mobility In the Air, at Sea, on the Ground
Slide 8: Mobile
Mobile
Slide 9: MOBILE – Leading the Fast Growing Satellite Backhaul Market
MOBILE – Leading the Fast Growing Satellite Backhaul Market $720M(2016) $2,900M(2026) Satellite Backhaul Market Gilat is the fastest growing playerin the vertical. It recently won large projects, boosting its market share…” “ Source: NSR, March 2017
Slide 10: MOBILE – Enabling “Terrestrial-grade” User Experience
Global End-to-End Services Affordable true LTE Backhaul MOBILE – 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
Slide 11: Proprietary and World’s Fastest Broadband for LTE Backhaul
11 | Proprietary and Confidential World’s Fastest Broadband for LTE Backhaul
Slide 12: Metro Area – A Live Example
12 | Proprietary and Confidential METRO AREA - A LIVE EXMPLE
Slide 13: T-Mobile Coverage Map – Managed Satellite-based LTE Backhaul
T-Mobile Coverage Map(as of December 31, 2017) T-Mobile Coverage Map(as of December 31, 2016) Expanding 4G/LTE coverage Multi-year Managed Satellite-based LTE Backhaul Service T-Mobile US70 Million subscribers, 308 million POP50,000 employees2016 revenues: $37.2 BillionOver 1M net adds per quarter,
Slide 14: Mobility
Mobility
Slide 15: MOBILITY – Superior Passenger Experience Drives Demand
MOBILITY – Superior Passenger Experience Drives Demand 3,800(2016) 28,400(2026) Satellite Broadband Connected Commercial Aircrafts Source: NSR, May 2017 $280M(2016) $590M(2026) Commercial Aero Satellite Equipment Market
Slide 16: MOBILITY – Delivering Superior Passenger Experience
One Network MOBILITY – Delivering Superior Passenger Experience ~2,000 aircrafts World’s Fastest SpeedIn-Flight Connectivity
Slide 17: Leading Performance Solutions for All In-Flight Connectivity Modules
Leading Performance Solutionsfor All In-Flight Connectivity Modules Ku and KaTransceivers Dual BandKu/Ka Antenna 400MbpsModem ESA/PAA
Slide 18: Rural Broadband
sa RURAL BROADBAND 18 | Proprietary and Confidential
Slide 19: RURAL BROADBAND – Delivering Core Infrastructure Supporting Nation Building
RURAL BROADBAND – Delivering Core Infrastructure Supporting Nation Building Growing service revenues Target:Recurring revenues >$50M / year, profitable, starting 2019 Broadband to unserved & underserved Bridging the digital divide Connecting communities and individuals to the world via broadbandInno
Slide 20: National Broadband Network (NBN) – Australia
National Broadband Network (NBN) – AUSTRALIA Established in 2009, government-ownedObjective: Extend broadband to rural Australia2016/17 - Launched 2 Ka satellites – 135 Gbps over 101 Beams eachActive service to approximately 70,000 consumers2018 - Extending broadband connectivity to enterprises and
Slide 21: Financial Indicators and Analysis
Financial Indicators and Analysis
Slide 22: Q1 2018 Profit and Loss Highlights
Q1 2018 Profit and Loss Highlights US$ millions Revenues$67.4M ($63.9M)5% YoY Gross ProfitGAAP 32% (27%)Non GAAP 34% (29%) Mobility Solutions RevenuesMainly IFC$20.8M ($14.9M)39% YoY OPEXGAAP $17.7M ($17.3M)Non GAAP $17.5M ($16.1M) Operating ProfitGAAP $3.7M ($0M)Non GAAP $5.1M ($2.5M) Net ProfitGAA
Slide 23: Quarterly Profit and Loss Highlights
Quarterly Profit and Loss Highlights US$ millions, except per share data GAAP Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Revenues 63.9 66.2 69.9 82.7 67.4 Gross Profit 17.3 19.6 20.3 25.2 21.4 Gross Margin 27% 30% 29% 31% 32% R&D net 6.7 6.2 6.9 8.2 8.0 S&M 5.8 5.6 5.8 6.6 5.4 G&A 4.0 5.3 4.3 5.0 4.3 Other expen
Slide 24: 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) Q1-18 (Q4-17) Cash and equivalents1$106.5 ($86.8) DSO264 days (70 days) Total Assets$371.3 ($386.8)
Slide 25: Executing Profitable Growth Strategy
Executing Profitable Growth Strategy Annual Revenues Adjusted EBITDA Revenues: $285M - $305MGAAP Operating Profit: $17M - $21M Adjusted EBITDA: $30M - $34M GAAP Operating Profit 2018 Management Objectives (US$ millions)
Slide 26: 2018 guidelines and outlook – increased profitability
2018 guidelines and outlook – increased profitabilityUS$ millions Revenues$285M-$305M ($282.8M)1%-8% YoY >75%of 2018 revenues from current backlog Revenues w/o Terrestrial Infrastructure$247M-$263M ($204.5M)21%-29% YoY Mobility Solutions RevenuesMainly IFC$98M-$103M ($88.4M)11%-17% YoY Operating Pro
Slide 27: Gilat revenues & terrestrial infrastructure breakdown
Gilat revenues & terrestrial infrastructure breakdown US$ millions $285M-$305M $283M $280M
Slide 28: Yearly Revenue per Segment
Yearly Revenue per Segment US$ millions $285M-$305M $283M $280M
Slide 29: In Summary – Uniquely Positioned for Unlocking Opportunities
In Summary – Uniquely Positioned for Unlocking Opportunities Demand for plentiful affordable broadband, anywhere anytime, is soaring Focused on strategy execution and profitability Leading in the main growth areas – Mobile Backhaul & IFC Mobility Oversupply of capacity unlocks new markets
Slide 30: Thank You
HANK YOU Gilat Satellite Networks | info@gilat.com | www.gilat.com
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