Inmarsat — Investor Day (June 2009)
100 slides from Inmarsat's investor day presentation, Jun 19, 2009
Slide 1: Inmarsat plc Investor Day Presentation
Inmarsat plc (LSE: ISAT) Investor Day Presentation 19th June 2009 99 City Road London EC1Y 1AX
Slide 2: Forward-looking statements
Forward-looking statements Certain statements in this presentation may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual re
Slide 3: Inmarsat management and speakers
Inmarsat management and speakers Andrew Sukawaty Rick Medlock Perry Melton Jim Parm CEO and Chairman CFO Chief Operating Officer President and CEO, Stratos David Coiley Chris D’Aguiar James Collett Aeronautical Services Director Vice President, Senior Director, Sales and Marketing Commercial Solutio
Slide 4: Inmarsat Investor Day – Agenda
Inmarsat Investor Day – Agenda 08.30 Corporate Update Rick Medlock - Chief Financial Officer 08.45 Maritime review Chris D’Aguiar - Vice President Sales and Marketing 09.10 BGAN review James Collett - Senior Director Commercial Sales 09.35 Aero Services Update David Coiley - Aeronautical Services Di
Slide 5: Corporate Update
Corporate Update Rick Medlock Chief Financial Officer
Slide 6: Q1 Highlights
Q1 Highlights Inmarsat Core revenue up 10.5% Inmarsat Core EBITDA up 13.2% Stratos revenue up 6.1%, EBITDA up 7.8% Growth across business sectors Continued resilience to economic conditions Strong cash flow Growth objectives for 2009 reiterated
Slide 7: 2009 Operational Status Report
2009 Operational Status Report Strategic investment in Skywave announced Stratos acquisition completed New distribution agreements signed and implemented 2000 FleetBroadband active terminals milestone reached Janice Obuchowski appointed as non-executive director FleetBroadband 150 launched S&P Credi
Slide 8: Stratos reporting update
Stratos reporting update Consolidated in Inmarsat plc results since FY 2007 Detailed quarterly reporting at Inmarsat Holdings and Stratos will continue for foreseeable future Inmarsat plc consolidated Interim Management Statement at Q1 and Q3 Management team led by Jim Parm reporting to Andrew Sukaw
Slide 9: Distribution agreement changes
Distribution agreement changes Operational impact 2008 FY total volume discount paid was $64m Volume discounts restructured over two years • ~$20m redirected to strategic pricing reductions • ~$20m retained as channel incentive programme • ~$10-11m retained in Inmarsat (consolidated) Total discount
Slide 10: Inmarsat / Stratos Profile
Inmarsat / Stratos Profile 2008 Financial Year US$m 1,100.0 Inmarsat Core Stratos $996.7m 1,000.0 900.0 800.0 362.0 700.0 600.0 $531.2m 500.0 99.6 400.0 300.0 634.7 $235.5m 200.0 431.6 24.4 100.0 211.1 - Revenue EBITDA Capex Note: Stratos figures post consolidation adjustments
Slide 11: Maritime Business Update
Maritime Business Update Chris D’Aguiar Vice President, Sales and Marketing
Slide 12: Maritime Business Update
Maritime Business Update Overview Maritime growth drivers FleetbroadBand progress FB150 market opportunity Competitive assessment
Slide 13: Maritime Business
Maritime Business Continued momentum Inmarsat Revenues - US$ Million 700 600 Maritime Other 500 333 400 310 251 267 285 300 200 286 100 208 205 207 236 86 75 0 2004 2005 2006 2007 2008 2009 Q1 162,000 maritime terminals in service as at end Q1 2009 YoY growth of >7% (2008 v 2007)
Slide 14: Maritime Business
Maritime Business Continued momentum Maritime Revenues by Service - US$ Million 350 300 57 61 250 63 Other 67 71 Data 200 171 147 Voice 121 150 75 98 100 13 50 105 102 101 103 105 47 26 0 2004 2005 2006 2007 2008 2009 Q1 YoY growth of >7% (2007 v 2008) Revenues from data services almost 70%, growing
Slide 15: The Economic Environment
The Economic Environment Limited impact to date on Inmarsat utilisation Average Vessel Daily Earnings and Inmarsat Vessel Earnings 000s Inmarsat Maritime Revenues - US$ Revenues 80 1,200 70 1,000 60 800 50 40 600 30 400 20 200 10 0 0 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Weighted Average Earning
Slide 16: Fleet and FleetBroadband
Fleet and FleetBroadband The demand for data continues to drive growth Maritime Revenues - US$ Millions 400 4 Commissioning rates 300 21 42 65 97 129 remain strong 200 • Fleet 9.6 per day 100 230 225 220 212 198 2 • FB 6.5 per day 37 47 0 HSD traffic up 19% 2004 2005 2006 2007 2008 2009 Q1 • FY 2008
Slide 17: New Ship-build Activity
New Ship-build Activity Sustaining the worlds fleets Merchant Ships over 5,000 GRT Annual New Builds Since 1990 2,500 2,000 1,500 1,000 500 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Source: Lloyds Register Fairplay
Slide 18: Fleet Broadband
Fleet Broadband Market Performance Fleet F77 and & FleetBroadband Daily Commissioning Rates 10 8 FleetBroadband Fleet 77 6 4 2 0 0 2 4 6 8 10 12 14 16 18 Months After Service Launch Service launched November 2007 2,000 commissionings to date, uptake exceeds previous launches • Retro-fits in addition
Slide 19: FleetBroadband 150
FleetBroadband 150 A globally deployable, low cost solution
Slide 20: Estimated Vessel Penetration
Estimated Vessel Penetration End 2008, by sub-sector Source: Lloyds Register Fairplay for Merchant, Fishing, Offshore & Passenger 25,000 Est. total 80,000 20,000 Inmarsat Vessels 15,000 10,000 5,000 0 Large Medium Small Large Medium Offshore Offshore Pass' Pass' Super Leisure Merch Merch Merch Fishi
Slide 21: FleetBroadband 150
FleetBroadband 150 A globally deployable, low cost solution Response to emerging market requirement • and robust positioning against competitive threat Migration path for low-end existing user base • Towards IP data (eg Inm-B and mini-M) Enabling both defence and growth in under- served sectors • Co
Slide 22: Competitive Assessment
Competitive Assessment Inmarsat remains well positioned in core sectors Ku Band VSAT Implications for Inmarsat Revival of the ‘CbB concept’ and VSAT successes generally in improved technology bandwidth-hungry sectors • Coverage improving – N hemisphere now almost global Reduced exposure to competiti
Slide 23: Maritime Business Update Summary
Maritime Business Update Summary The demand for data continues Overall global economic downturn may soften market growth in large merchant sector We may see some limited VSAT success in bandwidth hungry sectors Through FleetBroadband (FB150, 250 and 500) Inmarsat remains well positioned • To maintai
Slide 24: BGAN Update
BGAN Update James Collett Senior Director, Commercial Solutions
Slide 25: BGAN revenues and subscribers
BGAN revenues and subscribers Solid growth from launch BGAN revenue by quarter $25m Inmarsat’s fastest $20m growing service Quarterly revenue $15m Builds on pedigree and $10m legacy of GAN and $5m Regional BGAN - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Mobile broadband data 2006 2007 2008 2009 commun
Slide 26: BGAN revenue by region
BGAN revenue by region Q1 2009 Europe Europe/North America – Discrete 16% 9% compliance testing, disaster and redundancy comms Asia-Pacific Discrete – government sub-sector 5% Americas South America – civil government, 6% extraction Middle East 41% Africa – all sectors Asia-Pacific – media, civil Af
Slide 27: Asia-Pacific growth
Asia-Pacific growth Benefiting from third I4 satellite BGAN daily traffic in the AsiaPac region 2,000 Standard IP Streaming IP Circuit Switched Data Daily traffic (in MB / mins) 1,500 Voice 1,000 500 - Prior During Post repositioning repositioning repositioning Jan-09 Feb-09 Mar-09 Apr-09 May-09 Imm
Slide 28: BGAN usage by service type
BGAN usage by service type Multiple revenue streams Stream Voice ing IP 2% Standard IP supports most user 10% applications. The ‘bread & butter’ service Circuit Subscriptions represent a data Standard IP secured revenue stream: 10% 51% • Monthly subscriptions • User allowance plans • Shared corporat
Slide 29: ARPU development
ARPU development Little sign of dilution to date Chinese earthquake Beijing Olympics BGAN ARPU trend $350 $300 $250 Monthly ARPU $200 $150 $100 $50 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 BGAN $250/month ARPU is $75/month better than RBGAN Might anticipate some ARPU dilution going forward as ne
Slide 30: BGAN X-Stream
TM BGAN X-Stream Advancing a unique capability 32 Launched in EMEA 64 kbps kbps 20th April 2009 256 128 Global service introduction kbps kbps 15th June 2009 Beta testing concluded with 492kbps leading broadcasters: CNN, BGAN Al Arabiya and SABC X-Stream TM (Minimum 384 kbps) Retail pricing of $24/mi
Slide 31: BGAN X-Stream
TM BGAN X-Stream The benefit 256 38 8 12 4 512 0 Speed: 0kbps
Slide 32: BGAN X-Stream
TM BGAN X-Stream The benefit 256 38 8 12 4 512 0 Speed: 128kbps
Slide 33: BGAN X-Stream
TM BGAN X-Stream The benefit 256 38 8 12 4 512 0 Speed: 256kbps
Slide 34: BGAN X-Stream
TM BGAN X-Stream The benefit 256 38 8 12 4 512 0 Speed: 384kbps
Slide 35: BGAN X-Stream
TM BGAN X-Stream The benefit 256 38 8 12 4 512 0 Speed: 450kbps
Slide 36: New Distribution Partners
New Distribution Partners Driving new business opportunities BGAN revenue $25m $20m $15m $10m $5m $m Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 Established New Established = primary distributors that were formerly a Land Earth Station Operator (LESO) New = Distribution Partner only (not LESO) New DPs
Slide 37: Service migration
Service migration Opportunities remain Average daily traffic for land services 80 70 60 '000s MBs per day 50 40 30 20 10 - Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 GAN RBGAN BGAN GAN remains a valuable revenue stream, complementary to BGAN GAN users
Slide 38: BGAN opportunities and challenges
BGAN opportunities and challenges Focused growth plan New geographies with improved regulatory market access: • Brazil • Canada • China Committed plan to explore new sector opportunities, e.g. transportation, banking, etc However: • Poor funding of aid & relief operations • Oil & gas exploration and
Slide 39: Aeronautical Services Business Update
Aeronautical Services Business Update David Coiley Aeronautical Services Director
Slide 40: Contents
Contents Business highlights Services Markets SwiftBroadband Looking forward
Slide 41: Inmarsat Aeronautical Services
Inmarsat Aeronautical Services Proven and looking forward Mature and successful Aero business Global coverage and safety services remain fundamental Inmarsat-4s and SwiftBroadband: a step change Established and expert Partnership Inmarsat and Partners continue to meet customer needs and will evolve
Slide 42: Revenue highlights
Revenue highlights Aeronautical services revenue on budget Revenues proving robust against prevailing market conditions New services and applications gaining momentum 1Q09 revenues grew 32% over 1Q08 Swift 64 continues to underpin terminal and revenue grow • 12% growth in total active terminals • 27
Slide 43: Business highlights
Business highlights Aeronautical Revenues $m Classic Aero Swift 64 70 60 50 40 50.5 30 31.1 20 17.2 10.3 10 13.2 12.4 13.4 13.2 13.9 0 3.6 2005 2006 2007 2008 Q1 2009 Aeronautical Terminals Classic Aero Swift 64 12000 10000 2451 2551 8000 1815 1241 782 6000 4000 7685 7757 6434 7068 6058 2000 0 2005
Slide 44: Market conditions
Market conditions Traffic holding in current climate Economic situation impacting on Business Aviation and Air Transport sectors Government sector budgets stable in near term Limited reduction in traffic/revenue growth Clear evidence of operators planning for recovery phase • New aircraft installs S
Slide 45: Aero Services Portfolio
Aero Services Portfolio Addressing multiple needs across aviation SwiftBroadband Inmarsat-4 constellation Up to 432kbps IP data per channel; multi channel systems Systems optimised for narrow and wide body aircraft Higher data rate Standard and Streaming IP Option for additional ‘Classic’ voice and
Slide 46: Inmarsat Aeronautical markets
Inmarsat Aeronautical markets Principal markets today Market Segments Government Head of State/VIP Military UAV Intelligence Surveillance Civilian UAV Reconnaissance Military Transport Rotary Wing Business and Bizliner/Long Range Medium General Aviation Small/VLJ Rotary Wing General Aviation Air Tra
Slide 47: SwiftBroadband
SwiftBroadband More capability - now and for the long term Global coverage Expanding choice of SwiftBroadband avionics ‘SwiftBroadband - future platform for safety services More than 250 SwiftBroadband channels already in operation in Government, Business Aviation and Air Transport
Slide 48: SwiftBroadband
Aero I Aero H Aero H+ SwiftBroadband Global, flexible, cost-effective SwiftBroadband It is different by design • Global seamless always on connectivity Aero I Swift 64 • No more paying for un utilized bandwidth Aero H Mini-M Aero H+ Upgrade from existing Inmarsat systems Smaller lighter avionics for
Slide 49: SwiftBroadband in Business Aviation
SwiftBroadband in Business Aviation Key programs: • Featured on manufacturers’ option lists • New hardware is opening new markets • Integrated as part of cabin systems Currently • User cost savings and performance gains • New installations and upgrade of Swift 64 systems are taking place • Certifica
Slide 50: SwiftBroadband in Government
SwiftBroadband in Government Key Programs: • US Navy: EP-3, P-3 AIP, P-8 • US Air Force: VIPSAM, KC-10, Tanker X, AWACS (comms/avionics upgrade) • US Army – UH-72 (Eurocopter) • European maritime operations
Slide 51: SwiftBroadband in Air Transport
SwiftBroadband in Air Transport Over 20 airline SwiftBroadband programmes underway Basis for majority of ‘GSM on Board’ Programmes • Voice, text messaging and GPRS data • ‘Critical mass’ and learning effects evident • "early indications prove that consumers love this service and penetration rates co
Slide 52: What next?
What next? Ensuring Inmarsat Aero maintains market leadership We appreciate that aircraft operators may have a choice… • Inmarsat’s portfolio and capabilities • Partnership • Commercial viability and Return on Investment • Longevity New service and market opportunities • Address competitive threat E
Slide 53: Inmarsat Aeronautical
Inmarsat Aeronautical Strengthening Global Market Leadership Classic and Swift 64 underpin continued success SwiftBroadband is the platform for Aero services in the longer term Safety services and global coverage are key USPs and remain central to our plans now and in the future Numerous product and
Slide 54: Global Satellite Phone Service (GSPS) Programme Update
Global Satellite Phone Service (GSPS) Programme Update Perry Melton Chief Operating Officer
Slide 55: Satellite Phone Service (SPS) Today
Satellite Phone Service (SPS) Today 1st Generation IsatPhone Leveraged collaboration with ACeS A key step toward…. • modernised handset • global service This map depicts Inmarsat’s expectations of coverage post repositioning of its I-4 satellites. This map does not represent a guarantee of service.
Slide 56: Global Satellite Phone Services (GSPS)
Global Satellite Phone Services (GSPS) The product family Product Description Planned launch date Handheld satellite phone Q2 2010 IsatPhone Dual mode satellite / GSM TBD Secure version TBD FleetPhone Maritime satellite phone 2011 LandPhone Fixed satellite phone 2011
Slide 57: GSPS programme update
GSPS programme update Handset development Contract transferred to Sasken in January 2009 Product Design Review completed First prototype under test Ground network Lockheed Martin on site in Paumalu On track for completion in Q3 2009 Handset manufacturing Elcoteq selected as manufacturing partner Con
Slide 58: Sasken Communications Technologies
Sasken Communications Technologies Lead development partner Twenty years experience in the communications sector Have been involved in GSPS UT development programme since the beginning Development sites for GSPS programme • Bangalore, India – software • Finland – hardware Experience • Worked for 5 o
Slide 59: Handheld Competitors
Handheld Competitors Current Situation Subscribers Revenue Profit (end 2008) (FY 2008) (FY 2008) 320,000 $320m $108m Iridium (234,000 - 2007) ($260m - 2007) ($77m - 2007) 240,000 $160m Thuraya NA (241,000) ($156m) 344,000 $86m -$68M Globalstar (284,000) ($98m) (-$28m) Note: Revenue and Subscriber nu
Slide 60: GSPS - Summary
GSPS - Summary One-stop shop for global MSS IsatPhone global commercial service: Q2 2010 Global handheld completes our portfolio We offer the broadest range of global services in the MSS industry – across land, sea and air
Slide 61: Government Market
» inmarsat Government Market The mobile satellite company’
Slide 62: Agenda
Agenda Inmarsat Government market Government Requirements Case studies Market reach Summary Inmarsat confidential
Slide 63: Government and Commercial revenues
Government and Commercial revenues Indicative breakdown Government 37% Commercial 63% Source: Inmarsat Q1 2009 estimate
Slide 64: Government revenue by sector
Government revenue by sector Indicative breakdown Navigation Maritime 1% 9% Leases 35% Land 36% Aero 19% Source: Inmarsat Q1 2009 estimate
Slide 65: Long Term Realities
Long Term Realities…… The Government user demands workplace services that parallel commercial services • Capacity • Reliability • Mobility • Modern/bundled services • Affordability These services are central to Commercial providers Inmarsat is well positioned to continue to capitalize on these trend
Slide 66: Government Requirements
Government Requirements Worldwide/Global coverage High Mobility Everything Over IP (EOIP)/IPv6 Situational Awareness Information Assurance Multi-cast/Netted communications Reliable and easy to use system Capacity and high data rates Interoperable coalition communications Affordability - cost-effecti
Slide 67: USCG Cutter Dallas (WHEC-716)
USCG Cutter Dallas (WHEC-716) FB-500 Maritime Field Evaluation (MFE) Operational deployment: • FleetBroadband pilot during operational deployment • Atlantic Ocean – Mediterranean Sea: April – October 2008 Equipment: • Thrane & Thrane FB-500 Terminal Operational experience: • Up to 470 kbps • Average
Slide 68: Closed User Group (CUG)
Closed User Group (CUG) Senior Leadership Communication System: Swift64 Operational deployment: • U.S. Government VIP aircraft – 25+ aircraft • Requirement for assured access Equipment: • Swift64 • EMS HSD-400 series SATCOM terminals • Rockwell Collins is developing software modification to access C
Slide 69: USAF C-17/C-130
USAF C-17/C-130 Secure En-Route Communications Package – Improved (SECOMP-I) Swift 64/SwiftBroadband Operational deployment: • Communications system designed for use by U.S. Corps/JTF/Army Force Commanders and staff while deploying to a theatre of operations Equipment: • 70+ C-17s modified with addi
Slide 70: UN Peacekeeping
UN Peacekeeping Chad, Africa Operational deployment: • Irish Defence Forces peacekeeping forces in Chad (MINURCAT) – voice and data reachback communications to IDF HQ in Ireland. Equipment: • BGAN T&T E500 and E700 terminals over I-4 satellite. Operational experience: • 99th Infantry Battalion of th
Slide 71: First Responder
First Responder Non-profit agencies humanitarian response NetHope, a consortium of technology providers and major relief organizations “The foremost requirement, calls beyond rescue and treatment of survivors, is the ability of aid workers to communicate …for coordination of the relief effort. Local
Slide 72: Global Opportunities
Global Opportunities Expanding our Reach EMEA • NATO Countries • Middle East / Africa The Big Three • India, China, and Russia Asia Pacific • Japan, Australia, and South Korea Latin America • Brazil, Chile and Colombia
Slide 73: Introduction to Stratos
Introduction to Stratos Inmarsat Investor Day June 19, 2009 73
Slide 74: Stratos Highlights
Stratos Highlights Stratos has grown organically as well as through acquisitions to become the world leader in remote communications. Headquartered in Washington, DC; registered office in St. John’s, Newfoundland, Canada. Over 750 employees and over 20 sales offices offering local support arou
Slide 75: Historical Timeline
Historical Timeline 700 2006 Acqusition 600 Xantic BV Revenue (in millions USD) 2005 Acquisitions 500 Plenexis HoldingsGmbH Navarino (49% interest) 400 2000 Acquisitions BT (Aero & Maritime) 300 Shell Offshore Services 4% % Rig Telephones (Datacom) A G GRR:: 224 C e C A enuue 200 Seven Seas arr RRee
Slide 76: Stratos' Business Model
Stratos’ Business Model Suppliers Suppliers Customers Customers Satellite Distribution Distribution Satellite Operators Operators (On Government Government // Wholesale Capacity (On Demand, Demand, Leasing) Leasing) Inmarsat, Inmarsat, Iridium, Iridium, Agreements Military Intelsat, Military Intelsa
Slide 77: Stratos' Business Strategy
Stratos’ Business Strategy 77
Slide 78: An Experienced Team Leads the Way
An Experienced Team Leads the Way James Parm President and Chief Executive Officer Paula McDonald Richard Harris John Mackey Executive VP and Chief Senior VP, Senior VP and Chief Financial Officer Corporate Secretary Technology Officer and Chief Legal Officer Ronald Spithout Bob Roe John Prentice Se
Slide 79: Key Competitive Advantages
Key Competitive Advantages Maritime Navarino, Seatrade, Hapag Lloyd, The Shipping Corp of India, Cosco Government & Military Departments of Defense - US, Australia, UK, Canada New Zealand, Netherlands and Japan; US and Canada Coast Guards Offshore Oil & Gas Exploration & Production (“E&P
Slide 80: Global Footprint with Local Support
Global Footprint with Local Support Locations Australia Darwin, Morayfield, Perth, Sydney | Brazil Niterói | Canada Ottawa ON, St. John’s NL | Equatorial Guinea Malabo Germany Hameln | Hong Kong Hong Kong | India Mumbai | Italy La Spezia | Japan Tokyo | Kenya Nairobi | The Netherlands Burum, The Hag
Slide 81: Multi-Technology Product Offerings
Multi-Technology Product Offerings Mobile Satellite Services (MSS) offer lower bandwidth but are truly mobile and global. These solutions are mobile or highly portable which offer complete office telecommunications functionality, including voice, fax and HSD connectivity. – The Inmarsat product li
Slide 82: Integrating Value-Added Services with Core Communications Technologies
Integrating Value-Added Services with Core Communications Technologies 82
Slide 83: A World of Value from Stratos
A World of Value from Stratos The Stratos Advantage™ - Getting the most from your remote communications MANAGE & CONTROL SECURITY PRE-PAID MESSAGING Stratos Dashboard™ or Stratos Trench™ - a Stratos ChatCard Data™ AmosConnect™ - StratosAccess™ - on-line personal firewall with - prepaid voice or e- i
Slide 84: Vertical Market Strategy
Vertical Market Strategy As part of its strategy, Stratos has focused on the most valuable remote communication solutions verticals. Revenue Revenue by by Vertical Vertical Market Market LTM LTM at at March March 31, 31, 2009 2009 Oil & Gas Government 15% & Military 34% Other 16% Maritime 35% As
Slide 85: Industry Overview – Maritime
Industry Overview – Maritime Stratos, in addition to facilitating shipping Services operations, plays a vital role in ensuring maritime safety. We offer unparalleled coverage and flexibility in maritime communications technology. Technology Inmarsat (Maritime, Leasing) and Iridium Services support
Slide 86: Industry Overview – Government and Military
Industry Overview – Government and Military Secure communication services including Services telephony, internet, intranet, e-mail and video Inmarsat (Land, Maritime, Aeronautical, Technology Leasing), Fixed Satellite Services Combination of military and commercially sourced satellite communicatio
Slide 87: Industry Overview – Offshore Oil & Gas E&P
Industry Overview – Offshore Oil & Gas E&P Stratos supplies data and voice communication Services services to oil and gas exploration, production, drilling and pipeline operations with a need for “extended office” connectivity to remote locations around the world (GoM – US; North Sea – UK; Russia).
Slide 88: Revenue by Business Segments
Business Segments Mobile Satellite Services (“MSS”) Segment by Segment 2009 31, 2009 Provides global remote communications Mobile solutions to customers beyond the reach of Satellite terrestrial networks. March 31, US$547.3M 84% Broadband Product offerings include Inmarsat, Iridium and at March
Slide 89: Financial Metrics – MSS
Financial Metrics – MSS LTM at in millions USD March 31, 2009 Revenue (approximately 45% from direct channels) $547.3 million EBITDA(1) $129.8 million EBITDA(1) % 23.7% Capital expenditures $16.5 million (1) Before corporate costs of $26.2 million. Revenue EBITDA Capital expenditures Growth from n
Slide 90: Revenue by Sector – MSS
Revenue by Sector – MSS MSS LTM at MSS Revenue Revenue by by Sector Sector in millions USD March 31, 2009 LTM LTM at at March March 31, 31, 2009 2009 Maritime Land-Voice Land-Data Aeronautical Voice services $ 129.5 million US$16.6M US$32.5M Leasing US$65.4M 3% 12% 6% US$107.5M Data services 74.5 mi
Slide 91: Reasons for Differences in Expected Growth Rates
Reasons for Differences in Expected Growth Rates Between Stratos and Inmarsat Retail pricing pressure. Product migration to new generation services yields lower growth. Allocation of Revenue Dollar between Inmarsat and Stratos Stratos Stratos % of retail revenue Inmarsat Inmarsat Existing & Evol
Slide 92: Financial Metrics – Broadband
Financial Metrics – Broadband LTM at in millions USD March 31, 2009 Revenue (virtually all from direct channels) $100.8 million EBITDA(1) $16.8 million EBITDA(1) % 16.6% $9.2 million Capital expenditures(2) $5 - $6 million (normalized) (1) Before corporate costs of $26.2 million. (2) Includes approx
Slide 93: Strategy Update
Strategy Update Andrew Sukawaty Chairman & Chief Executive Officer
Slide 94: Strategic rationale for the investment
Strategic rational for the investment SLDR market is estimated to be worth $600 million today in end user revenue from both equipment and airtime and has significant growth potential Investment in and partnership with SkyWave will develop a strong global player strategically positioned versus compet
Slide 95: SkyWave Key Functions and Applications
SkyWave Key Functions and Applications Land Marine Defence Tuna Buoy Allow end users Used in the marine greater visibility and Location-tracking industry to track, technology has control over their monitor, and control trucking and remote marine-based assets been supplied to fixed assets as well as
Slide 96: SkyWave: Deal Summary
SkyWave : Deal Summary $10m Cash Cash Investment Investment $11.3m Airtime Credit Airtime Credit In return for In return for investment investment ISAT will own SkyWave will 19% of the acquire 100% enlarged of company. Globalwave’s non-retail assets
Slide 97: S-Band Spectrum Award
S-Band Spectrum Award In May, European Commission (EC) completed S-Band selection process on time and with full support of all 27 national regulators 60MHz of MSS spectrum awarded in two 2 x 15MHz allocations • Prime unused ‘real estate’ immediately adjacent to 3G allocations • Inmarsat awarded 1980
Slide 98: S-Band Opportunity
S-Band Opportunity Various commercial opportunities: • MSS evolved - deploy satellite network for next-gen MSS applications, esp. for EU-promoted civil defence and regional/national institutional users • Mobile Broadcast – deploy integrated satellite/terrestrial network for new personal and vehicula
Slide 99: Summary
Summary Growth ahead of business plan Global network assets in place Maintain capital discipline Consider appropriate new opportunities
Slide 100: Questions & Answers
» inmarsat Questions & Answers The mobile satellite company’