Gilat Satellite Networks Ltd. · NASDAQ:GILT
Gilat Satellite Networks — Investor Presentation (August 2023)
23 slides from Gilat Satellite Networks's investor presentation, August 2023
Slide 1: Gilat Satellite Networks Investors Presentation August 2023
GILAT SATELLITE NETWORKS Investors Presentation AUGUST 2023 1 | Proprietary and Confidential
Slide 2: Forward Looking Statements Disclaimer
FORWARD LOOKING STATEMENTS DISCLAIMER Certain statements made herein 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 intended to identify
Slide 3: A World Leader in Satellite Communications
A WORLD LEADER IN SATELLITE COMMUNICATIONS Cellular Backhaul Aero / IFC 2G 3G 4G 5G Telecom infrastructure Maritime & services Government Land INNOVATIVE Enterprise Defense GROUND EQUIPMENT Consumer TECHNOLOGY ~1,000 Employees 1987 Founded 15 Sales Offices 6 R&D Centers 3 NOC Centers GILT NASDAQ /TA
Slide 4: Leading Global Customer Base
LEADING GLOBAL CUSTOMER BASE BASE SATELLITE OPERATOR mPOWER mPOWER SERVICE PROVIDERS & MNO’s 100+ 100+ COUNTRIES COUNTRIES 300+ 300+ CUSTOMERS CUSTOMERS HUNDREDS HUNDREDSOF OF NETWORKS NETWORKS SYSTEM INTEGRATORS 4 | Proprietary and Confidential
Slide 5: Value Chain
VALUE CHAIN SATELLITE MANUFACTURER SATELLITE OPERATOR GROUND EQUIPMENT SERVICE PROVIDER END USERS 5 | Proprietary and Confidential
Slide 6: Uniquely Positioned to Unlock Growth Opportunities
UNIQUELY POSITIONED TO UNLOCK GROWTH OPPORTUNITIES 1 VHTS & NGSO Constellations - Abundance of Capacity IFC, Maritime, Cellular Backhaul, Enterprise, Social Inclusion 2 Strong Tailwinds in Defense Increased focus on military SATCOM networks 3 Peru Terrestrial Networks "Investment" Shifting to Operat
Slide 7: VHTS/NGSO Constellations - Abundance of Capacity
VHTS/NGSO CONSTELLATIONS - ABUNDANCE OF CAPACITY LARGE CAPITAL SPENDING IN SATELLITE INDUSTRY Capacity Supply & Price 450,000 $300 400,000 $250 350,000 GEO 300,000 $200 35,786 km 250,000 $150 200,000 ~550msec 150,000 $100 HTS/VHTS 100,000 ~50-500 Gbps ~50-500 $50 50,000 MEO 0 --$ $ 2022 2023 2024 20
Slide 8: SkyEdge IV – Industry Leading Ground Platform for VHTS & NGSO
SKYEDGE IV – INDUSTRY LEADING GROUND PLATFORM FOR VHTS & NGSO 8 | Proprietary and Confidential
Slide 9: Post COVID-19 IFC Rebound Includes Free WiFi Tailwind
POST COVID-19 IFC REBOUND INCLUDES FREE WIFI TAILWIND LONG TERM IFC INVESTMENT CYCLE 1 Aero Antennas 400Mbps Modem Superior Passenger Experience Transceivers Ground Equipment ENABLING LARGE IFC GLOBAL NETWORK Expanding Fleets GLOBAL COVERAGE | > 30 SATELLITES | COMMERCIAL AIRCRAFT BUSINESS JETS (Ka/
Slide 10: Maritime
MARITIME 1 ACTIVE VSAT TERMINALS 2021 2031 46,100 20,800 MERCHANT 2,350 710 PASSENGER 11,800 3,900 LEISURE 10,500 4,000 FISHING Euroconsult 2022 10 | Proprietary and Confidential
Slide 11: 4G/5G Ubiquitous Connectivity Bridging the Digital Divide
4G/5G UBIQUITOUS CONNECTIVITY BRIDGING THE DIGITAL DIVIDE 1 OF SATELLITE BACKHAUL 4G/LTE MARKET SHARE NSR & GILAT ESTIMATION, 2022 GILAT CONTINUES TO LEAD IN SHIPMENTS WITH BIG WINS AND BUSINESS EXPANSIONS WORLDWIDE EQUIPMENT CAPACITY, SERVICE & EQUIPMENT ~$440M ~$6.4B (2031) (2031) ~CAGR 13% ~CAGR
Slide 12: 4G/5G Ubiquitous Connectivity Bridging the Digital Divide
4G/5G UBIQUITOUS CONNECTIVITY BRIDGING THE DIGITAL DIVIDE 5G TOTAL ADDRESSABLE MARKET EXPANDING DRAMATICALLY 1 HIGH SPEED Speeds Innovative >1Gbps Wideband Technology FLEXIBLE Satellite Ground Utilize SDN/NFV, NETWORK Segment Integration Cloud, Edge Computing Global CPE Revenues $450 ARCHITECTURE In
Slide 13: Defense & Government
DEFENSE & GOVERNMENT INCREASED FOCUS ON MILITARY SATCOM NETWORKS 2 Secure & Resilient SATCOM Technology for Today’s Net-Centric Battlefield End-to-end in-house capabilities for land, sea and air missions Ruggedized antennas, VSATs, modems and SSPAs Enable mission-critical COMMs/C5ISR operations over
Slide 14: Full Portfolio of Defense Solutions for Multiple Segments
FULL PORTFOLIO OF DEFENSE SOLUTIONS FOR MULTIPLE SEGMENTS 2 Military SATCOM Networks o SkyEdge IV with Aquarius family of VSATs o Next generation point to point modem with cyber protection capabilities SkyEdge IV SkyEdgeIV Modems GLT Modems Gateway SSPA platform Aquarius & Taurus o Network SSPAs for
Slide 15: Acquisition of DataPath
ACQUISITION OF DATAPATH 2 DataPath is a market leader in trusted communications for the US DoD Military and Government sectors, generating annual revenues of ~$50M and profitable The acquisition is a strategic step in Gilat’s initiatives to increase its presence in the growing defense markets High S
Slide 16: Peru Terrestrial Networks: Investment Shifting to Operations
PERU TERRESTRIAL NETWORKS "INVESTMENT" SHIFTING TO OPERATIONS RECURRING REVENUE MODEL 3 Annual recurring revenues >$50M Pronatel Terrestrial Projects Six regions awarded to Gilat (~$550M) • ~$350M Construction revenue - 96% recognized by June 30, 2023 • ~$200M Operation revenue over ten years • five
Slide 17: Financial Indicators Highlights
FINANCIAL INDICATORS HIGHLIGHTS 17 | Proprietary and Confidential
Slide 18: Q2 2023 Profit and Loss Highlights
Q2 2023 PROFIT AND LOSS HIGHLIGHTS US$ MILLIONS Q2/23 Q1/23 Q4/22 Q3/22 Q2/22 Revenue 67.6 59.0 72.6 60.4 55.5 Gross Margin 38% 42% 38% 38% 36% GAAP Operating Expenses 20.1 17.7 21.6 19.6 18.3 Operating Income 5.5 7.0 6.1 3.4 1.5 Net Income / (Loss) 4.3 5.6 (6.0) 2.1 0.5 Adj. EBITDA 9.2 8.4 10.1 7.3
Slide 19: H1 Profit and Loss Highlights
H1 PROFIT AND LOSS HIGHLIGHTS US$ MILLIONS H1/2023 H1/2022 Revenue 126.6 106.9 Gross Margin 40% 34% GAAP Operating Expenses 37.8 35.7 Operating Income 12.5 0.5 Net Income / (Loss) 9.9 (2.0) Adj. EBITDA 17.6 7.8 Non-GAAP Operating Expenses 39.1 34.2 Operating Income 11.3 2.1 Net Income / (Loss) 8.8 (
Slide 20: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS US$ MILLIONS Q2/23 Q1/23 Q4/22 Q3/22 Q2/22 Cash1 87.8 89.7 87.1 69.9 71.5 DSO2 63 77 72 89 95 Cash from operations 2.0 6.2 16.8 4.7 (3.3) Equity 255.4 250.0 244.1 248.6 245.7 1) Cash includes Cash and cash equivalents and restricted cash 2) DSO excluding construction in Peru
Slide 21: Executing Profitable Growth Strategy
EXECUTING PROFITABLE GROWTH STRATEGY Updated 2023 Market Guidelines (US$ millions) Revenues Adjusted EBITDA GAAP Operating Income 15% 39% 101% Revenues: $265M - $285M GAAP Operating Income: $18M - $22M Adjusted EBITDA: $33M - $37M 21 | Proprietary and Confidential
Slide 22: Summary
SUMMARY UNIQUELY POSITIONED TO UNLOCK GROWTH OPPORTUNITIES VHTS and NGSO Opening New Markets SkyEdge IV is a leading VHTS and NGSO Platform Leading in Main Growth Areas – Cellular Backhaul (4G, 5G) & In-Flight Connectivity Increased Focus on Military SATCOM Networks Focused on Profitable Growth 22 |
Slide 23: Thank You
THANK YOU YOU Gilat Gi Gillat Satellite Sat atel elllite Networks Net Network works s | info@gilat.com iinf nfo@gi o@gillat at..com | www.gilat.com www. www.gi gillat at..com
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