Inmarsat — Investor Day (September 2014)
10 slides from Inmarsat's investor day presentation, September 2014
Slide 1: S-band and ACGC: Powering Aviation Connectivity
S-band and ACGC: Powering Aviation Connectivity Leo Mondale President, Aviation
Slide 2: Worldwide passenger connectivity expected to grow into $1bn business within the next 5 years
Worldwide passenger connectivity expected to grow into $1bn business within the next 5 years Addressable aviation connectivity market Connectivity is the fastest growing segment in the “Passenger Experience” marketplace • Projected to grow to ~$1.7bn by 2023 from a base of ~$0.4bn (retail value) • 3
Slide 3: Strength of passenger demand now proven
Strength of passenger demand now proven US ATG is setting expectations in Aviation Connectivity Gogo’s rapid growth since the roll out of their Strong Commercial Aircraft revenue growth ATG network in North America has illustrated significant demand for in-flight connectivity: • 30% YoY revenue grow
Slide 4: Opportunity to replicate US ATG success in European market
Opportunity to replicate US ATG success in European market Growth through conversion and expansion of the short-haul fleet European aircraft fleet projected to almost double by 2032 with 7,450 new European fleet growth aircraft • Single aisle fleet make up larger share of the total, growing to ~ 75%
Slide 5: Inmarsat can deliver a connectivity solution to suit any aircraft in any region
Inmarsat can deliver a connectivity solution to suit any aircraft in any region GX: The reference solution for long haul aircraft with global Cabin Connectivity requirements S-band: L-band: Broadband Cabin Worldwide Cabin Connectivity over EU Connectivity, Safety & Operations Services ACGC: Compleme
Slide 6: S-band meets demand over EU's high traffic routes
S-band meets demand over EU’s high traffic routes Complements GX and L-band global solutions Source: Company estimate Perfect complement to Very high capacity Superior performance and economics GX for airlines with mixed over EU for for aircraft operating in high traffic fleets or where enhanced reg
Slide 7: 4 key deliverables to secure S-band / ACGC opportunity
4 key deliverables to secure S-band / ACGC opportunity 1. Regulatory approval required to confirm use of S-band spectrum for MSS services and aviation complementary ground component • MSS applications filed in 22 member states – secured in 13 • Engagement with regulatory authorities in all EU member
Slide 8: 4 key deliverables to secure S-band / ACGC opportunity
4 key deliverables to secure S-band / ACGC opportunity 3. Deliver lightweight, low cost Satellite and ACGC OnBoard Equipment (OBE) • Specification for S-band OBE underway with avionics providers and airlines to ensure the right technical and functional specifications from the outset • Will work with
Slide 9: Programme timeline
Programme timeline Y/E Y/E Y/E Y/E 2014 2015 2016 2017+ Regulatory MSS Licences filed and Significant proportion of CGC principles agreed for CGC licences secured on satisfactory Continued negotiation to achieve full list of MS licences with Member terms States Satellite build Design Spacecraft manu
Slide 10: Securing the leadership position
Securing the leadership position Growing demand across an expanding product and service portfolio complement Inmarsat’s leading position in the Aviation connectivity market Inmarsat is the industry standard for satellite-based Safety and Operations Services and for business aviation connectivity Air