Iridium Communications Inc · NASDAQ:IRDM
Iridium Communications — Investor Day (December 2010)
94 slides from Iridium Communications's investor day presentation, Dec 16, 2010
Slide 1: 2010 Analyst Day
Exhibit 99.1 2010 Analyst Day Iridium Communications Inc. December 16, 2010
Slide 2: Welcome & Agenda
Welcome & Agenda Steve E. Kunszabo, Exec. Director Investor Relations December 16, 2010
Slide 3: Forward-Looking Statements
Forward-Looking Statements Safe Harbor Statement This presentation contains statements about future events and expectations known as “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exch
Slide 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reporting Entity For comparison purposes, we have presented the operating results of Iridium Holdings LLC and Iridium Communications Inc. on a combined basis for the year ended December 31, 2009 along with the Iridium Holdings LLC operating results for 2008. The combined
Slide 5: Agenda
Agenda Welcome & Agenda Steve Kunszabo Exec. Director, Investor Relations Corporate Strategy Matt Desch Chief Executive Officer Commercial Business Don Thoma EVP, Marketing Government Business Gen. John Campbell EVP, Government Programs Iridium NEXT Scott Smith EVP, Iridium NEXT Hosted Payloads Don
Slide 6: Corporate Strategy Overview
Corporate Strategy Overview Matthew J. Desch, Chief Executive Officer December 16, 2010
Slide 7: Delivering Value for Our Shareholders
Delivering Value for Our Shareholders • Fast growing target markets in key commercial sectors and government Attractive and growing markets • Favorable competitive dynamics with high barriers to entry • Need for mobility in absence of terrestrial coverage • 100% global coverage and unique mesh archi
Slide 8: Iridium Communications Overview
Iridium Communications Overview Secondlargestprovider of mobile voice and data servicesvia 66 in- orbit satellites to commercial and government customers • Serving 413,000+ customers across the land-based handset, maritime, aviation, machine-to- machine (M2M) and government markets • Anchor U.S. DoD
Slide 9: A Transformative Period in Our History
A Transformative Period in Our History We now have tremendous flexibility to execute our business plan • GHL Acquisition Corp. acquired Iridium Holdings LLC in September 2009 and changed name to Iridium Communications Inc. • Relisted on the NASDAQ Stock Market, paid off historic debt and provided co
Slide 10: Attractive and Growing MSS Market
Attractive and Growing MSS Market MSS 2009 Network Core Markets Provider Revenue(2) Architecture • MSS market generated $1.3 billion in 2009 revenue (1) GEO with no polar Maritime & Land Inmarsat $695M(3) coverage, bent Broadband, • MSS industry revenue CAGR of pipe architecture Aviation 10% expecte
Slide 11: Favorable Competitive Dynamics & Positioning
Favorable Competitive Dynamics & Positioning Maritime Aviation Government Land/Mobile Machine-to-Machine Fastest Growing Value Provider for Mission-Critical Foundation for Fastest Growing Value Provider General Aviation; Partner Success as Market Premium Provider Commercial Leader Opportunity • Larg
Slide 12: Iridium's Growth Pillars
Iridium’s Growth Pillars Expanding Provide New, Hosted Licensing Distribution Lower Cost Payloads New Markets Network Products Established and proven business model provides foundation for new growth opportunities
Slide 13: Network Leadership Fuels Global Usage
Network Leadership Fuels Global Usage Diverse network traffic with significant growth opportunities M2M (SBD) Data Transmission Voice Call High-Speed Data Traffic Note: One week plot of M2M/SBD session, voice call and high-speed data origination points for the week of 11/7/10 to 11/13/10 (commercial
Slide 14: Revenue Quality & Significant Operating Leverage
Revenue Quality & Significant Operating Leverage Growing cash flow driven by recurring service revenue and largely fixed-cost business model • Fast-growing enterprise and ($ in millions) government subscriber base $350 • Predictable and expanding $300 service revenue $250 • Incremental sales at a hi
Slide 15: Iridium NEXT Positions Us for the Future
Iridium NEXT Positions Us for the Future Fully funded approximately $3 billion plan that supports our success for many years • Compatibility with existing network and devices • Seamless network transition and customer continuity • 66 new operational satellites, 6 in-orbit spares and 9 ground spares
Slide 16: YTD 2010 Financial Performance
YTD 2010 Financial Performance Strong financial results highlighted by record service revenue and OEBITDA in the third quarter of 2010 Iridium Communications Service - Commercial YTD10 YOY Growth YTD10 YOY Growth Revenue $260M 7% Service Revenue $133M 11% OEBITDA $117M 13% Subscribers 371,000 21% OE
Slide 17: Comparative Valuation Considerations
Comparative Valuation Considerations 12/06/10 Share Price $9.29 $10.67 Outstanding Shares(1) 74 489 Market Capitalization $687 $5,218 Faster Total Gross Debt(2) $158 revenue $1,353 Less: Cash & Equivalents(2) $111 growth rates $185 Net Debt $47 $1,168 Enterprise Value $734 $6,386 More room Divided b
Slide 18: Why Will Iridium Continue to Win?
Why Will Iridium Continue to Win? Attractive and Favorable competitive dynamics growing markets in evolving markets… …with a healthy current constellation and Network leadership fully funded plan for Iridium NEXT… …and a track record of execution –- recurring Significant operating service revenue bu
Slide 19: Commercial Business Overview
Commercial Business Overview Don Thoma, EVP Marketing December 16, 2010
Slide 20: Commercial Service/Market Growth Is Driven by...
Commercial Service/Market Growth Is Driven by... Expanding Distribution Network New Geographic Markets Diverse and Growing Product Set Accelerated by Licensing Technology #1 or #2 Position in Each of Our Core Markets Attractive Market Opportunity Superior Network 20
Slide 21: Long-Term Track Record
Long-Term Track Record Focus on recurring service revenue growth and profitable equipment contribution • 2005-2010E commercial ($ in millions) service revenue CAGR of 24% $300 • 2005-2010E government $250 service revenue CAGR of 6% $200 $150 $100 $50 $0 2005 2006 2007 2008 2009 2010E Commercial Serv
Slide 22: Significant Network Advantage
Significant Network Advantage • Global coverage and consistency -- pole to pole • True mobility –- communications on the move • Very reliable & resilient • Inherently secure –- valued by government customers 22
Slide 23: Strong Position in Growing Market
Strong Position in Growing Market • Attractive MSSmarket generating $1.3 billion in 2009 revenue (1) • MSS industry revenue expected to grow at a CAGR of 10%between 2010 and 2015(1) Total MSS Market Share 2001 Total MSS Market Share 2009 Other 3% Orbcomm2% Globalstar 7% Other4% Thuraya – 10% Inmarsa
Slide 24: Mission Critical Communications for Customers
Mission Critical Communications for Customers Market Key Iridium Growth Position Growth Competitors Advantage Strategy Land M2M Maritime Aviation Government (1) Northern Sky Research (2010) for MSS L-Band market 24
Slide 25: Accelerating Growth Through Service Innovations
Accelerating Growth Through Service Innovations 43% of cumulative service revenue growth from new products during the last three years Iridium Aero OpenPort Pre-NEXT Devices Iridium OpenPort Iridium High 9505A U.S. DOD Functionality Tactical Radio Handset Original Iridium (Netted) Motorola Voice 955
Slide 26: Technology Licensing Strategy – Iridium Connected
TechnologyLicensingStrategy – Iridium Connected • Enabling valuable partner solutions by licensing core technology -- Iridium Connected • Accelerating recurring revenue streams • Accessing new markets with a wide array of applications 26
Slide 27: Expanding Distribution Network Ensures Market Reach
Expanding Distribution Network Ensures Market Reach • Wholesale distribution model lowers costs and risks • Growing channel of hundreds Value Added Specialized of distribution partners VADs Solutions End Customers • Partners provide “outsourced VAMs EVERYWHERE Global R&D” to develop specialty Distri
Slide 28: Pursuing Access to Large New Markets
Pursuing Access to Large New Markets New Geographic Opportunities Licenses recently received Major Opportunities • Distribution presence in over 100 countries • Potential distribution presence in certain countries offering large growth opportunity: Russia, China, India -- population of 2.7 billion (
Slide 29: Growth in Core Markets
Growth in Core Markets LAND AVIATION MARITIME M2M GOVERNMENT 29
Slide 30: Land/Mobile Market – The Market Leader
Land/Mobile Market –The Market Leader Evolving Market Iridium is the Market Leader • Need for connectivity by remote • Premium product and service enterprise, emergency responder, and • Unmatched performance government customers advantage over competition • Re-emerging competition • True mobility, g
Slide 31: Portfolio Strategy Drives Service Revenue
Portfolio Strategy Drives Service Revenue Expanding product portfolio Multiple Growth Paths sustains leadership • Introduce premium phone for the Iridium high-end segment • Enhance value through new location-based and data services • Defend price sensitive segment with less feature-rich phone Premiu
Slide 32: M2M Market – Fastest Growing, Premium Provider
M2M Market –Fastest Growing, Premium Provider Large, Expanding Market Premium Service Provider • Fastest growing segment piggybacking • Significant network advantage on terrestrial wireless data market -- • Coverage “The Internet of Things” • Latency • Diverse value-added solutions for enterprise cu
Slide 33: M2M Device Strategy Fuels Growth
M2M Device Strategy Fuels Growth Accelerate Customer Growth Growth Opportunities • Introduce smaller, lower-cost Iridium modems -- decrease cost of access • License technology to increase breadth and depth of applications 9601 • Partners developing new, unique applications across a variety of Enhanc
Slide 34: Maritime Market – The Value Provider
Maritime Market – The Value Provider Growth Driven by Data Fastest Growing, #2 Player • Internet connectivity, regulatory • Historic growth in voice and mandates, crew communications low-speed data • <25% of 220,000 ship addressable • Attractive value proposition to market have adopted high speed da
Slide 35: Driving Growth in Maritime High-Speed Data
Driving Growth in Maritime High-Speed Data Iridium OpenPort Data Growth Opportunity • Expanding data services into larger, underserved markets • Crew calling drives revenue • Enables backup solution for VSAT Maritime Inmarsat FB 500 VSAT Iridium < 1 Mbps < 512 kbps < 128 kbps Circle size = size of t
Slide 36: Aviation Market – The Value Provider
Aviation Market – The Value Provider Connectivity Driving Demand The #1 Value Provider • <20% of addressable market have satcom • Leading provider to general aviation and helicopter fleets • Need for cost-effective tracking and cockpit communications (voice and data) • Competitive advantage in size,
Slide 37: Expanding the Aviation Market
Expanding the Aviation Market Growth in Cockpit and Cabin Supports New Growth • Attractive value proposition drives growth in air transport safety communications • Iridium Aero OpenPort -- enables VSAT cost-effective access to fast < 1 Mbps growing broadband market ~$500,000 • Blackberry on airplane
Slide 38: The Iridium Ecosystem - A Powerful Growth Engine
The Iridium Ecosystem -A Powerful Growth Engine 38
Slide 39: A Growth Business
A Growth Business • Attractive position in growing markets • Competitive landscape is known -- we have unique advantages and new entrants are unlikely • Solid product portfolio with many new products fueling growth and leading the transition to Iridium NEXT • Scalable distribution network that lever
Slide 40: Commercial Business Q&A Panel
Commercial Business Q&A Panel Matt Desch Chief Executive Officer Don Thoma EVP Marketing
Slide 41: Morning Break and Product Marketing Table
Morning Break and Product Marketing Table
Slide 42: Government Business Overview
Government Business Overview Lt. Gen. John H. Campbell, USAF (Ret.) EVP Government Programs December 16, 2010 42
Slide 43: Evolution of the U.S. Government Relationship
Evolution of the U.S. Government Relationship A ten-year track record of growth from a niche supplier of phones to an integral element in the communications infrastructure • A unique value proposition ($ in millions) (global, secure) that is not easily duplicated • Expanding service portfolio • Sign
Slide 44: U.S. Government Services Market Overview
U.S. Government Services Market Overview Remains a large and important customer that complements growth in our commercial markets • Serves all DoDbranches, other USG agencies and foreign governments • Five-year (1) contract signed in 2008 • Simple fixed-fee voice and tiered data pricing structure •
Slide 45: U.S. Government Product Portfolio
U.S. Government Product Portfolio Data: Circuit-switched and low-latency M2M services deployed for asset/personnel tracking, unattended sensors and specialized applications Paging M2M 4% 138% DoD Gateway: Ties it all together in a secure package Netted 3600% Handset 4% 2010E Subscribers Netted: Dist
Slide 46: Netted Iridium: Expeditionary Communications
Netted Iridium: Expeditionary Communications DoD’sinvestment in Netted Iridium is indicative of long-term commitment as key element of its communications architecture • Newest and fastest growing USG service --greater than 5,300 fielded in 2010 • Funded operational priority by DoDwith significant R&
Slide 47: Strength of Government Relationship
Strength of Government Relationship Highly scalable, low-cost approach to product development and distribution minimizes our investment VALIDATED PRODUCTION/DEPLO USER NEED DEVELOPMENT FUNDED PROGRAM OPERATIONS SUSTAINMENT REQUIREMENT YMENT USG –Funded Development, Competition, Acquisition Partner F
Slide 48: Solutions & Partners
Solutions & Partners Secure Voice & Data Push-to-Talk Personal Comms. Personnel Tracking Blue Force Tracking Over-the-Horizon A/C Comms. Medical Support Logistics Support 48
Slide 49: The Future
The Future Unique value proposition not likely to be challenged • Increasingly viewed as a mission-critical partner for DoD expeditionary communications infrastructure • Embedded applications are “sticky” • New and innovative products like Netted Iridium provide enhanced capabilities • Increasing de
Slide 50: Network Leadership & Iridium NEXT
Network Leadership & Iridium NEXT S. Scott Smith, EVP Iridium NEXT December 16, 2010 50
Slide 51: Iridium's Long Term Competitive Advantage
Iridium’s Long Term Competitive Advantage Our satellite network provides a superior and differentiated experience for our customers • A unique LEO constellation sets it apart from MEO and GEO systems -- shorter distance to satellites results in a better customer experience • Cross-linked and overlap
Slide 52: Current Constellation Health
Current Constellation Health Our current constellation is viable and healthy for years to come and is supported by in-orbit spares End-of Life Source Status Applicability to Iridium Expendables (e.g. Fuel load in operational Unlikely satellites expected to last until propellants) Iridium NEXT deploy
Slide 53: What Is Iridium NEXT?
What Is Iridium NEXT? • Fully replaces the current constellation and updates the ground system with new features and capabilities • Retains 66 satellite LEO architecture supported by 6 in- orbit spares and 9 ground spares • Scheduled deployment between early 2015 and 2017 via 8 Falcon 9 launches (9
Slide 54: Planned Evolution to Iridium NEXT Constellation
Planned Evolution to Iridium NEXT Constellation A continuous and deliberate evolution from the current constellation to Iridium NEXT • Customer products evolution –- building on a strong track record of new and enhanced products since 2001 • Customer services evolution -- new and advanced data servi
Slide 55: Iridium NEXT Service Phased Deployment Approach
Iridium NEXT Service Phased Deployment Approach Expanded and enhanced product portfolio supports ongoing growth • Iridium NEXT satellites provide superior processing power compared to the current constellation –- 9x improvement in throughput and 125x improvement in memory capacity • Many new service
Slide 56: A World Class Development Team
A World Class Development Team • Iridium NEXT team • 25 seasoned aerospace and telecommunications engineers and managers • Hundreds of years of collective experience with significant expertise directly applicable to building the current constellation • Thales Alenia Space France (Prime contractor fo
Slide 57: Iridium NEXT Development Schedule
Iridium NEXT Development Schedule 2010 2011 2012 2013 2014 2015 2016 2017 Requirements Flowdown & Prelim Design Detailed We are Design here Segment Development Vehicle Integration & 81 SVs (Total) Testing Constellation Deployment 72 SVs Launched 57
Slide 58: Spacecraft Overview (Stowed Configuration)
Spacecraft Overview (Stowed Configuration) Earth-facing side Main Mission Antenna of satellite L-band Hosted Payload Stowed Solar Array Feeder link antennas Ka-band • Mass –850 kg • Dimensions – 3m x 2.4m x 1.5m Cross link antennas K-band 58
Slide 59: A Lasting Value Proposition For Our Customers
A Lasting Value Proposition For Our Customers • Superior network architecture provides a sustainable competitive advantage • A healthy current constellation supports ongoing growth and takes us to the Iridium NEXT era • Fully funded and on schedule development plan for Iridium NEXT -- outstanding ne
Slide 60: Hosted Payloads Overview
Hosted Payloads Overview Don Thoma, EVP Marketing December 16, 2010
Slide 61: Iridium NEXT Hosted Payloads
Iridium NEXT Hosted Payloads • New business opportunity to host third-party payloads on Iridium NEXT • Payload customer shares infrastructure of the Iridium NEXT satellite and global networked communications architecture • Significant interest from government and industry for cost-effective space mi
Slide 62: A Unique Value Proposition on Iridium NEXT
A Unique Value Proposition on Iridium NEXT • Unprecedented coverage -- 66 interconnected satellites see entire globe • Low latency -- Real-time relay of data to and from payloads • User control -- Two-way secure communications with payload • Cost-effective -- Access to space at a fraction of the cos
Slide 63: Hosted Payload Opportunity
Hosted Payload Opportunity Tracking a growing pipeline of 15-20 potential missions Mission Overview US Government Mission • Communications mission US Government Mission • Full 66 satellite mission using 20% of capacity SensorPOD– Scientific Sensor • Fractional 5 Kg science missions (similar to cubes
Slide 64: Weather Data Monitoring
Weather Data Monitoring • NOAA requirement for long-term atmospheric data by measuring GPS signals • No cost-effective plan for obtaining data after 2014 • Sensors on Iridium NEXT Current Data Capability constellation provide high quality measurements at 50% of the cost • NOAA plans procurement for
Slide 65: Space Debris Monitoring
Space Debris Monitoring • DoDand commercial satellite operators need improved debris information to protect satellite fleets • Iridium NEXT provides excellent platform for detecting orbital debris • Iridium NEXT capability complements planned DoD system • Provides early warning • Enhances survivabil
Slide 66: Global Aircraft Monitoring From Space
Global Aircraft Monitoring From Space • FAA investing in future air traffic control infrastructure to improve efficiencies in air traffic routes • Spaced-based tracking extends the terrestrial infrastructure • Possible commercial joint venture to finance development in 2011 • Sell services to FAA, f
Slide 67: SensorPOD – Access for Scientific Missions
SensorPOD –Access for Scientific Missions • Capability to host small research payloads that have no cost-effective access to space • Marketing and support relationship with leading research labs • Potential for larger funded project by National Science Foundation • Incremental revenue from unused ho
Slide 68: Meaningful New Business Opportunity
Meaningful New Business Opportunity • Many programs developed during last 3 years and the pipeline is growing • Activity accelerating since announcement of satellite contract and Coface financing agreement • High probability programs have expertise of seasoned government system integrators working w
Slide 69: Government Business, Iridium NEXT and Hosted Payloads Q&A Panel
Government Business, Iridium NEXT and Hosted Payloads Q&A Panel Gen. John Campbell EVP Government Programs Scott Smith EVP Iridium NEXT Don Thoma EVP Marketing
Slide 70: Financial Overview
Financial Overview Thomas J. Fitzpatrick, EVP & Chief Financial Officer December 16, 2010 70
Slide 71: Increasing Shareholder Returns
Increasing Shareholder Returns • An established track record of rapidly growing recurring service revenue • Significant operating leverage and largely fixed-cost business model create OEBITDA margin expansion and OEBITDA growth that outpaces revenue • Organic growth opportunities in each business --
Slide 72: Revenue Quality
Revenue Quality An established track record of increasing recurring service revenue • Predictable and expanding ($ in millions) service revenue • Commercial service revenue is an important growth engine -- 50% of total revenue in 3Q10 • Voice leadership and growing contributions from M2M data 69% se
Slide 73: Significant Operating Leverage
Significant Operating Leverage Growing cash flow driven by recurring service revenue and largely fixed-cost business model • Incremental sales at a high ($ in millions) gross margin contribute to growing profitability • High-quality, recurring service revenue is cornerstone of expanding margins • Wh
Slide 74: Iridium vs. Peers 3Q10 OEBITDA Margins
Iridium vs. Peers 3Q10 OEBITDA Margins Considerable room for OEBITDA margin expansion as service revenue continues to grow (1) OEBITDA margin is calculated by dividing Operational EBITDA by adjusted revenue. Adjusted revenue excludes purchase accounting adjustments and Iridium NEXT revenue. (2) Sour
Slide 75: Organic Growth Drivers
Organic Growth Drivers Good organic growth opportunities across all of our markets 2005-2010E CAGR Market/Business Revenue Subscribers Future Prospects Strong demand across vertical Commercial markets; integral to business 24% 28% Service infrastructure of customers; M2M data services opportunity De
Slide 76: 2011 Subscriber Growth Outlook
2011 Subscriber Growth Outlook Total subscriber growth of approximately 20% for the full-year 2011 • Eight consecutive years of robust subscriber growth 76
Slide 77: 2011 Service Revenue Outlook
2011 Service Revenue Outlook Robust service revenue growth of 10% to 13% for the full-year 2011 • Sustain leadership in voice ($ in millions) 10%-13% market 11% Growth Growth • Commercial M2M data services opportunity -- robust subscriber growth; new applications • Strong contributions from Iridium
Slide 78: 2011 Equipment Revenue Outlook
2011 Equipment Revenue Outlook Equipment revenue decline of 15% to 30% for full-year 2011 (more than offset by service revenue growth) • Equipment revenue ($ in millions) 15%-30% decline meaningfully declines as a percentage of total revenue in 2011 –-slower pace of decline through 2015 • Equipment
Slide 79: 2011 OEBITDA Outlook
2011 OEBITDA Outlook Operational EBITDA between $180 million and $190 million for the full-year 2011 • Double-digit growth in service ($ in millions) revenue • Continued OEBITDA margin expansion enhanced by reduction in cost of services related to Boeing contract amendment • Building on a strong yea
Slide 80: Long-Range Revenue Outlook
Long-Range Revenue Outlook Average service revenue growth of 9% to 13% between 2011 and 2015; expect solid total revenue growth • Fast-growing enterprise and ($ in millions) government subscriber base –- strong demand across vertical markets and government • Broadening adoption of M2M data services
Slide 81: Long-Range OEBITDA Outlook
Long-Range OEBITDA Outlook OEBITDA margins expected to expand to approximately 60% by 2015 • Recurring service revenue is cornerstone of expanding margins • Operating leverage and largely fixed-cost model expands margins and grows cash flow (1) OEBITDA margin is calculated by dividing Operational EB
Slide 82: $1.8 Billion Coface Financing Agreement
$1.8 Billion Coface Financing Agreement Attractive borrowing costs and good terms over a long period of time • Draw funds from 2010 to 2015 • Repay funds from 2017(1) to 2024 • $1.5 billion fixed tranche at 4.96% • $0.3 billion floating tranche at LIBOR +1.95% (2.4% currently) (1) Assumes substantia
Slide 83: Capital Structure and Capex Snapshot
Capital Structure and CapexSnapshot Manageable debt and leverage targets • Iridium NEXT capexthrough ($ in millions) 2011 of approximately $600 million -- Coface draw of $400 million in capex with financed interest of $40 million • Expect Net Debt/OEBITDA of approximately 2x in 2011; 3x in 2012; 4x-
Slide 84: Iridium NEXT Funding
Iridium NEXT Funding A fully funded plan for the approximately $3 billion construction of Iridium NEXT with cushion provided by potential warrant proceeds Sources of Not Considered in Fully Funding Funded Plan • Agreement with lenders on financial • $7.00 warrant proceeds of plan resulting in $1.8 b
Slide 85: Putting Cost of Iridium NEXT in Perspective
Putting Cost of Iridium NEXT in Perspective Significant cash flow potential during constellation life supports the investment • Approximately $3 billion expected total cost for constellation • Capital expenditures occur from 2010 to 2017 as OEBITDA grows • Assumes constellation provides commercially
Slide 86: Iridium's Target Profile in 2015
Iridium’s Target Profile in 2015 A strong recurring revenue business with healthy cash flows that drive rapid deleveraging after 2015 Service revenue base Approximately $400 million (1) OEBITDA margins Approximately 60% Capex Greatly reduced after 2016 Taxes No cash taxes from 2016 to 2020 Net Debt/
Slide 87: Rapid Deleveraging Magnifies Equity Appreciation
Rapid Deleveraging Magnifies Equity Appreciation Rapid, highly predictable deleveraging expected after 2015 OEBITDA growth driven by greatly reduced capex and 5-year tax shield Equity Appreciation 87
Slide 88: Comparative Valuation Considerations
Comparative Valuation Considerations 12/06/10 Share Price $9.29 $10.67 Outstanding Shares(1) 74 489 Market Capitalization $687 $5,218 Faster Total Gross Debt(2) $158 revenue $1,353 Less: Cash & Equivalents(2) $111 growth rates $185 Net Debt $47 $1,168 Enterprise Value $734 $6,386 More room Divided b
Slide 89: Why Will Iridium Continue to Win?
Why Will Iridium Continue to Win? Attractive and Favorable competitive dynamics growing markets in evolving markets… …with a healthy current constellation and Network leadership fully funded plan for Iridium NEXT… …and a track record of execution –- recurring Significant operating service revenue bu
Slide 90: Closing Remarks/Final Q&A Panel
Closing Remarks/Final Q&A Panel Matt Desch Chief Executive Officer Tom Fitzpatrick Chief Financial Officer
Slide 91: Lunch and Product Marketing Table
Lunch and Product Marketing Table
Slide 92: Appendix
Appendix
Slide 93: Non-GAAP Financial Measures
Non-GAAP Financial Measures $ in Thousands For the Year Ended December 31, YTD Sept 2005 2006 2007 2008 2009 2010 LTM Net income $ 39,595 $ 31,814 $ 43,773 $ 53,879 $ 48,535 $ 12,569 $ 7,820 Interest expense 2,580 15,179 21,771 21,094 13,180 23 374 Interest income (302) (1,291) (2,192) (1,345) (585)
Slide 94: 2010 Analyst Day
2010 Analyst Day Iridium Communications Inc. December 16, 2010 94
Iridium Communications — Investor Day (December 2010) on 6ix