Gogo Inc. · NASDAQ:GOGO
Gogo — Bank of America Leveraged Finance Conference 2016
29 slides from Gogo's conference presentation, Nov 30, 2016
Slide 1: Bank of America Leveraged Finance Conference
November 30, 2016 Bank of America Leveraged Finance Conference Exhibit 99.1
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: Who We Are
Who We Are Our Competitive Advantage Strong Execution And Path To Profitability GOGOAIR.COM | Why Invest In Gogo
Slide 4: Transforming the Aviation Industry
TRANSORMING THE AVIATION INDUSTRY 1) As of 9/30/2016 2) Based on management estimates, public filings and trade publications of broadband IFC installations as of 9/30/2016 Gogo is the global leader in providing broadband connectivity solutions and wireless entertainment to the aviation industry ~7,0
Slide 5: While Delivering Enormous Value
WHILE DELIVERING ENOURMOUS VALUE Passenger Experience Passenger Connectivity & Entertainment Aircraft Operational Efficiencies Rebooking Travel Baggage Tracker Digitized Attendants Turbulence Avoidance Lower Fuel Costs Maintenance Savings Turbulence Avoidance Internet Streaming Movies IPTV
Slide 6: Relentless Innovation
RELENTLESS INNOVATION Peak Speed (Mbps) ATG Ku 2Ku 50 100 Proprietary Non-Proprietary Next Gen ATG Analog ATG 2Ku w/ Spot Beam HTS ATG-4 Note: Expected results and availability based on management estimates. Iridium (L-band) JetConnex (Ka-band) Swift Broadband (L-band) 200 150
Slide 7: Most Planes in the Industry
MOST PLANES IN THE INDUSTRY Gogo CA - Satellite Gogo BA - ATG Gogo CA – ATG Note: Data based on management estimates, trade publications and other public sources as of 9/30/2016 and include both commercial and business broadband connected aircraft where specified Q3’16 Number of Aircraft Online
Slide 8: Large Global Aircraft Opportunity
LARGE GLOBAL AIRCRAFT OPPORTUNITY Note: Data based on management estimates, trade publications and other public sources as of 9/30/2016 and include both commercial and business broadband connected aircraft where specified Commercial Aviation 30,000 by 2025 37,000 by 2025 Uncommitted Uncommitted Broa
Slide 9: Industry Leading Accomplishments
Network Technology Aircraft Operations1 INDUSTRY LEADING ACCOMPLISHMENTS 2016 Airline Wins 2Ku – industry leading satellite-based connectivity launched and flying on 50 aircraft Next generation ATG technology announced Satellite capacity secured on Intelsat and SES satellites Next generation modem a
Slide 10: Competitive Advantage
Who We Are Competitive Advantage Strong Execution And Path To Profitability GOGOAIR.COM | Why Invest In Gogo
Slide 11: Key Differentiators Drive Industry Leadership
Airline support on four continents 1,000+ annual installations1 Large and growing STC portfolio KEY DIFFERENTIATORS DRIVE INDUSTRY LEADERSHIP 91% BA North American and 53% CA global market share2 INDUSTRY LEADERSHIP NETWORK TECHNOLOGY PRODUCT & SERVICE PLATFORMS AIRCRAFT OPERATIONS Based on net inst
Slide 12: Leading Technology Platforms for All Aircraft
1) Next Gen ATG expected to be available in 2018 and expected to deliver 100 Mbps 2) Global commercial aircraft estimate from Boeing Market Outlook 2016-2035, excluding regional jets 3) Includes North American business jets and turboprops estimate from JetNet iQ Report Q4 2015 and commercial regiona
Slide 13: 2Ku Brings 100+ Mbps Globally in 2017
2Ku BRINGS 100+ Mbps GLOBALLY IN 2017 2015 Early 2017 Today Late 2017 2Ku 2Ku 2Ku 2Ku 1 1) Expected results and availability based on management estimates 25 Mbps 50 Mbps 70+ Mbps 100+ Mbps 1
Slide 14: Next Gen ATG Brings 100+ Mbps to North America in 2018
1) Expected results and availability based on management estimates 1 3 Mbps 10 Mbps 100+ Mbps Uniquely integrates licensed and unlicensed spectrum Leverages existing ground and airborne infrastructure Overnight installation Targeted for smaller aircraft NEXT GEN ATG BRINGS 100+ Mbps TO NORTH AMERICA
Slide 15: Leading Global Operational Capabilities
9/30/16 10/31/16 2017E1 2Ku Cumulative Aircraft Installs 2Ku Installation Lines Days To Install 2Ku Annual 2Ku Install Capacity 2Ku STCs Global Maintenance Locations 14 12 8 50 8 33 500+ 40+ < 3 750+ 30+ 45 45 12 3½ 360 10 33 First 2Ku OEM Installation LEADING GLOBAL OPERATIONAL CAPABILITIES 1) As r
Slide 16: Strong Execution and Path to Profitability
Who We Are Competitive Advantage Strong Execution And Path To Profitability GOGOAIR.COM | Why Invest In Gogo
Slide 17: 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 $49 33% CAGR $89 CA-ROW Segment Loss Adjusted EBITDA $113 $24 $135 Revenue ($M) Adjusted EBITDA1 ($M)
Slide 18: Profitability Path for All Segments
#1 More Bandwidth PROFITABILITY PATH FOR ALL SEGMENTS 16% margin 40% margin Note: Revenue and Segment Profit/Loss figures are LTM as of 9/30/16 Note: Aircraft online and aircraft backlog, which refers to aircraft awarded, but not yet installed, are as of 9/30/2016 Note: Note market share is based on
Slide 19: Focused on Growing Shareholder Value
Growing Shareholder Value MORE AIRCRAFT Leading market share 1,500 2Ku awards High win rate DECLINING INVESTMENT PER AIRCRAFT ARPA GROWTH MARGIN IMPROVEMENT Rapid 2Ku payback Declining install cost & time Bandwidth growth Additional services Multi-payer More & lower cost bandwidth Installs in CA-ROW
Slide 20: Strategic Priorities
Scale CA-ROW segment to profitability Further reduce 2Ku installation costs Double ARPA by 2021 Achieve free cash flow in 2020 Scale Globally Expand Technology Leadership Grow Shareholder Value 1 2 3 STRATEGIC PRIORITIES (1) 1) Free cash flow is defined as cash flow from operating activities less co
Slide 21: Why Invest in Gogo
Who We Are Competitive Advantage Strong Execution And Path To Profitability GOGOAIR.COM | Why Invest In Gogo
Slide 22: Diverse Capital Structure Backed by Valuable Assets
DIVERSE CAPITAL STRUTURE BACKED BY VALUABLE ASSETS Note: Minor differences exist due to rounding 1) As of 9/30/2016 2) Based on stock price of $9.31 per share on 11/28/16 CAPITALIZATION ($M) Cash, Cash Equivalents, and Short Term Investments1 486 Senior Secured Notes1 525 Convertible Notes1 362 Tota
Slide 23: Leverage Expected to Decline as 2Ku Awarded Aircraft Are Installed
LEVERAGE EXPECTED TO DECLINE AS 2KU AWARDED AIRCRAFT ARE INSTALLED 7.7x 3.0x Guidance range Adjusted EBITDA1 ($M) and Leverage 2Ku Installation Guidance2 1,500+ 2Ku awarded but not yet installed Note: Minor differences exist due to rounding 1) Please see reconciliation of Adjusted EBITDA in appendix
Slide 24: Why Invest in Gogo
WHY INVEST IN GOGO Leading Position, Experience & Scale Large Growth Opportunity Technology Leadership High Barriers to Entry Clear Path to Free Cash Flow
Slide 25: Appendix
Appendix
Slide 26: Ku Ecosystem Provides Large and Growing Global Capacity
KU ECOSYSTEM PROVIDES LARGE AND GROWING GLOBAL CAPACITY 1) Based on estimates by satellite capacity providers Planned Ku Supply Potential Ku Supply Planned Ku Supply Potential Ku Supply 150 250 370 730 1,000 1,050 North American Ku Bandwidth Supply (Gbps)1 Global Ku Bandwidth Supply (Gbps)1
Slide 27: 2Ku: Proprietary Solution That Stands Apart From the Competition
1) Based on management estimates and include satellites operated by Inmarsat, Viasat, Eutelsat, and Yahsat as of 12/31/2015. We estimate that there are approximately 10 Ka satellites in the world, but due to lack of interoperability between Ka satellite providers, only 2 to 5 can currently be used f
Slide 28: Gogo Installed & Awarded Aircraft as of 9/30/2016
GOGO INSTALLED & AWARDED AIRCRAFT AS OF 9/30/2016 Aircraft Online CA-NA CA-ROW Total ATG Aircraft Online 1,102 - 1,102 ATG-4 Aircraft Online 1,513 - 1,513 Ku Aircraft Online - 255 255 2Ku Aircraft Online 14 1 15 Total Aircraft Online 2,629 256 2,885 Awarded But Not Yet Installed Aircraft1 CA-NA CA-R
Slide 29: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION ($M) 2011 2012 2013 2014 2015 2015 Q4 2016 Q1 2016 Q2 2016 Q3 Net Income (18) (96) (146) (85) (108) (34) (24) (40) (33) Interest Income (0) (0) (0) (0) (0) (0) (0) (0) (1) Interest Expense 1 9 29 33 59 16 16 18 25 Income Tax Provision 1 1 1 1 1 – – – – Depreciation & A
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