Gogo Inc. · NASDAQ:GOGO
Gogo — Investor Presentation (September 2017)
24 slides from Gogo's investor presentation, Sep 20, 2017
Slide 1: September 2017 Investor Presentation
September 2017 Investor Presentation Exhibit 99.2 GOGOAIR.COM | ©2017 Gogo Inc. and Affiliates. Proprietary & Confidential.
Slide 2: Safe harbor statement
Safe harbor statement This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are based on management’s beliefs and assumptions and on information currently available to manage
Slide 3: Today's speakers
Today’s speakers GOGOAIR.COM | Michael Small President and Chief Executive Officer Barry Rowan Executive Vice President and Chief Financial Officer Varvara Alva Vice President, Investor Relations and Treasurer
Slide 4: Transaction Overview / Who We Are / Strong Execution / Why Invest In Gogo
GOGOAIR.COM | Transaction Overview Who We Are Strong Execution And Path To Profitability Why Invest In Gogo
Slide 5: Transforming the aviation industry
Transforming the aviation industry 1) As of 6/30/2017 2) Based on management estimates, public filings and trade publications of broadband IFC installations as of 6/30/2017 7,500+ 50% 92% North America market share in Business aviation2 Broadband aircraft online1 Global market share in Commercial av
Slide 6: Gogo's inflight internet leadership
Gogo’s inflight internet leadership Network Solutions Software & Platform Support Services Deliver industry-leading connectivity performance to global aviation Satellite: 2Ku & Ku Air-to-ground: - Next-Gen ATG - ATG - ATG4 Enable customizable experiences for passengers and support aviation operation
Slide 7: Industry leading accomplishments
Industry leading accomplishments Network Technology Aircraft Operations 2017 Airline Wins Next generation modem is introduced increasing throughput capability by 16 times on satellite connectivity systems 4G systems started shipping in Business Aviation Next generation ATG technology development is
Slide 8: Most planes and expanding opportunities
Most planes and expanding opportunities Gogo CA - Satellite Gogo BA - ATG Gogo CA – ATG Note: Data based on management estimates, trade publications, Boeing Current Market Outlook 2016-2035, JetNet iQ Report Q1 2017, and other public sources as of 6/30/2017 and includes both commercial and business
Slide 9: Leading connectivity technology for all aircraft
Leading connectivity technology for all aircraft (2) (3) 2Ku 100+ Mbps and global coverage High availability Network Redundancy Live TV Flying on 250+ aircraft globally Global – Satellite (2) Addressable Aircraft Next Gen ATG ATG, ATG-4 North American coverage Overnight installs High speed & low lat
Slide 10: Growing satellite aircraft connectivity awards
Growing satellite aircraft connectivity awards Note: 2Ku awards include both signed contracts and letters of intent 2015 2016 2014 50 500 1,500 1,800+ 2017
Slide 11: 2Ku is changing the customer experience
2Ku is changing the customer experience Expected results and availability based on management estimates. High speed, everywhere, all the time 15+ Mbps per passenger 98% coverage of global flight hours 98% service availability
Slide 12: Portfolio of business aviation solutions
* Source: JetNet iQ Report Q1 2017 and Gogo estimates as of June 2016 Large Jets ~3,000 Aircraft * * * * PURCHASE MOTIVATION + Bandwidth Applications + GLOBAL: JX/SBB SBB SBB SBB REGIONAL: ATG/4G/ Next Gen ATG ATG/4G/ Next Gen ATG ATG/4G ATG/4G/ Next Gen ATG Medium Jets ~4,000 Aircraft Light Jets ~5
Slide 13: Strong Execution And Path To Profitability
GOGOAIR.COM | Transaction Overview Who We Are Strong Execution And Path To Profitability Why Invest In Gogo
Slide 14: Strong revenue and profitability growth
Strong revenue and profitability growth Note: Minor differences exist due to rounding (1) Please see reconciliation of Adjusted EBITDA in appendix 22% CAGR CA-ROW Segment Loss Adjusted EBITDA Revenue ($M) Adjusted EBITDA ($M) (1)
Slide 15: Profitability path for all segments
#1 MORE BANDWIDTH Profitability path for all segments 17% margin 44% margin Note: Note market share is based on installed aircraft from public sources, trade publications, management estimates and other public sources as of 6/30/2017 CA-NA CA-ROW BA 2,791 Aircraft Online 66% Market Share 318 Aircraf
Slide 16: Strategic priorities
Strategic priorities (1) Free cash flow is defined as cash flow from operating activities less consolidated capital expenditures. Expand technology leadership • Extend global 2Ku roadmap • Deploy next gen ATG solution • Invest in our industry-leading IFC and IFE platforms Scale globally • Install 2K
Slide 17: Grow Stakeholder Value
Grow Stakeholder Value MORE AIRCRAFT Significant backlog Growing market Leading market share DECLINING INVESTMENT PER AIRCRAFT ARPA GROWTH MARGIN IMPROVEMENT Decreasing installation time Lower airborne equipment costs Higher airborne equipment proceeds Leverage STC portfolio Increase network capacit
Slide 18: Why Invest In Gogo
GOGOAIR.COM | Transaction Overview Who We Are Strong Execution And Path To Profitability Why Invest In Gogo
Slide 19: Diverse capital structure backed by valuable assets
Diverse capital structure backed by valuable assets Note: Minor differences exist due to rounding 1) As of 6/30/2017 2) Based on stock price of $14.20 per share on 9/18/2017 CAPITALIZATION ($M) Cash, Cash Equivalents, and Short Term Investments1 380 Senior Secured Notes1 590 Convertible Notes1 362 T
Slide 20: Positioned for success
Positioned for success Leading position, experience & scale Large opportunities for growth Technology leadership Clear path to free cash flow
Slide 21: Appendix
Appendix
Slide 22: Pro forma corporate structure
Pro forma corporate structure Gogo Intermediate Holdings LLC+ Gogo Inc.* Gogo International Holdings LLC Holding Company AC BidCo LLC* Holds Spectrum License 100% 100% 100% 100% 100% 100% Market capitalization of $1,152M as of September 19, 2017 $362M 3.75% Convertible Senior Notes due 2020 Gogo Fin
Slide 23: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation ($M) 2011 2012 2013 2014 2015 2016 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 Net Income (18) (96) (146) (85) (108) (125) (40) (33) (27) (41) (44) Interest Income (0) (0) (0) (0) (0) (2) (0) (1) (1) (1) (1) Interest Expense 1 9 29 33 59 84 18 25 25 27 27 Income Tax Provis
Slide 24: Superior global satellite network
Superior global satellite network Future Ku HTS coverage Current Ku coverage Access to most global satellite capacity including HTS Ability to integrate next generation satellite constellations seamlessly Providing capacity when and where airline partners need it