Inmarsat — Investor Day (October 2012)
19 slides from Inmarsat's investor day presentation, Oct 9, 2012
Slide 1: Inmarsat plc – Investor Day: GX Strategy Overview
Inmarsat plc – Investor Day GX Strategy Overview Leo Mondale Managing Director, Global Xpress 9th October 2012
Slide 2: Global Xpress – strategic vision
Global Xpress – strategic vision VSAT market valued at $1.9bn 10%+ CAGR projected for 2012-2017 period GX will be the first global Ka-band VSAT system, global service launch by EOY 2014 GX has long-term performance and cost advantages vs. incumbent Ku-band VSAT afforded by: • Ka-band technology • In
Slide 3: Global Xpress – commercial strategy
Global Xpress – commercial strategy GX product and service offerings tailored for each target market segment Go-to-market strategy and personnel in place on a market-by-market basis Well positioned to capture growth: • Integrated L-band/Ka-band GX offering is setting the new standard for the Maritim
Slide 4: GX will be first and alone
GX will be first and alone Initiated in 2010, fully funded, on plan - first satellite launch set for Q3 2013, global service launch by EOY 2014 GX is the only announced global Ka system optimized for VSAT GX will be unique in the market for years, even if competing system emerges GX has provoked rea
Slide 5: Ka-band will outperform Ku-band in the VSAT market place
Ka-band will outperform Ku-band in the VSAT market place Ka-band has 9.0x the available bandwidth of Ku-band • Equivalent satellite costs vs. C or Ku-bands mean lower unit cost for data delivery Ka-band is far more suited to sharply defined spot beams than Ku-band • Higher throughputs to smaller ter
Slide 6: Comparison of ITU satellite spectrum allocations
Comparison of ITU satellite spectrum allocations Availability for Mobility 2500 2000 1500 MHz 1000 500 0 L-band S-band C-band X-band Ku-band Ka-band Uplink (MHz) Downlink (MHz) Even after accounting for regional variations, sharing requirements, and other regulatory considerations, spectrum availabl
Slide 7: GX vs. typical Ku VSAT
GX vs. typical Ku VSAT GX designed from the outset as a uniform quality global mobility broadband • Single carrier operation for maximum output power Ku-band mobility is a patchwork of differing quality beams – claimed peak performance lower than GX, and only available in a few locations • Performan
Slide 8: Global Xpress coverage
Global Xpress coverage GX service available over at least 99% of the coverage area Extended GX coverage via GX steerable beams L-band back up to ensure global coverage 8
Slide 9: Intelsat coverage, including IS-29e EPIC
Intelsat coverage, including IS-29e EPIC Intelsat EPIC available only in a very limited coverage area for HTS Remaining Intelsat coverage has low performance compared to GX 9
Slide 10: Ku-band competitive response comparison
Ku-band competitive response comparison GX Ka-band Ku mobility network QoS • Single, validated system architecture for • A patchwork of satellites not designed for mobility mobility • Seamless beam switchover, minimal outage • Complex delivery value chain lowering (<45 sec) during satellite switchov
Slide 11: GX vs. other Ka-band systems
GX vs. other Ka-band systems A variety of high throughput satellites (30 to 120 Gbps theoretical capacity): Jupiter (Hughes), Viasat, Ka-Sat (Eutelsat), Yahsat: • Regional systems designed for consumer broadband, no ocean coverage • Ground segment, satellite architecture optimized for throughput and
Slide 12: Updated view on VSAT market size
Updated view on VSAT market size 2008 - $1.4bn* 2010 - $1.9bn* Maritime Maritime VSAT Space VSAT Segment, Space Energy $145m , Segment, Energy VSAT Space 8% $135m, VSAT Segment, US DoD, 10% Space $168m , Segment, US DoD, 9% ROW ROW Gov't, Gov't, $152m, 11% commercial commerci FSS, al FSS, $643m , $5
Slide 13: The path to $500m in GX wholesale revenues by 2019
The path to $500m in GX wholesale revenues by 2019 Wholesale VSAT market revenue estimated at $1.9bn in 2010, with established growth Sharp focus on segments most suited to GX advantages: • Clear coverage requirement • Remote activity (Maritime, Aviation, Energy) • Unpredictable and remote coverage
Slide 14: GX distribution strategy - Maritime
GX distribution strategy - Maritime Deliver the strongest product and service in the industry • Ka+L-band integrated service • Sold wholesale as high-quality managed service subscription • Aggressive development of applications environment Leverage Inmarsat market leadership to attract a new breed o
Slide 15: GX distribution strategy – Government
GX distribution strategy – Government GX HCM/HCX capabilities designed specifically to complement and enhance, NOT compete with WGS, milsatcom capability Secure, accredited GX Gateways, unique value particularly to sensor platforms Inmarsat created an entirely new government marketing capability in
Slide 16: GX distribution strategy – Aviation
GX distribution strategy – Aviation Master Distribution Agreement with Honeywell for business aviation leverages broad Honeywell presence in market for equipment and locks-in material GX capacity commitment Emerging opportunity to provide airline passenger connectivity offers tremendous growth poten
Slide 17: GX distribution strategy – Energy
GX distribution strategy –Energy GX coverage, performance, and economics will present compelling advantages in the Energy VSAT market over time, but a period of trials and demonstrations will be required to establish Ka-band suitability for the market environment Inmarsat Enterprise Energy business
Slide 18: GX distribution strategy – Enterprise
GX distribution strategy –Enterprise Enterprise “Super-Segment” offers a wide variety of opportunities via myriad channels specific to certain applications and geographies. Current focus is on distribution related to material early revenue opportunities. Smaller and/or later opportunities are being
Slide 19: GX: a compelling value proposition
GX: a compelling value proposition Faster broadband services to smaller, cheaper user equipment Optimized for coverage and mobility - main drivers to target markets Backed up by the industry standard L-band service Long-term performance and cost advantages vs. Ku-band GX programme on track: • Satell