Gilat Satellite Networks Ltd. · NASDAQ:GILT
Gilat Satellite Networks — Investor Presentation (February 2018)
40 slides from Gilat Satellite Networks's investor presentation, Feb 13, 2018
Slide 1: Gilat Satellite Networks Company Overview February 2018
Gilat satellite NetworksCompany Overview February 2018 NASDAQ, TASE: GILT
Slide 2: Forward Looking Statements Disclaimer
Forward Looking Statements Disclaimer Certain statements made in this presentation that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words "estimate", "project", "intend", "expect", "believe" and similar expressions are intend
Slide 3: Gilat – Boundless Communications
Gilat – Boundless Communications MOBILITY MOBILE Air Land Enterprise Consumer 4G/5G Sea MOST ADVANCED TECHNOLOGYTerrestrial-grade user experience END-TO-END SERVICEMost stringent service levels GLOBAL PRESENCE20 sales offices RURAL BROADBAND 2G/3G Established 1987 NASDAQ / TASE: GILT ~1,100 employee
Slide 4: Global Footprint – Expanding a Diverse Customer Base
Global Footprint – Expanding a Diverse Customer Base 300+ customers 500+ Networks 90+ countries SYSTEM INTEGRATORS GOVERNMENTS SATELLITE OPERATORS CARRIERS & SERVICE PROVIDERS
Slide 5: Booming capacity – GEO + LEO/MEO
Booming capacity – GEO + LEO/MEO Global HTS Bandwidth Supply, Demand and Price per Mbps $/Mbps/Month Gbps ~16 times today Source: Euroconsult, NSR, 2017 ABUNDANCE OF CAPACITY UNLOCKS NEW MARKETS
Slide 6: Affordable Internet Everywhere is Becoming a Birth Right
Affordable Internet Everywhere is Becoming a “Birth Right” WE ALL WANT BROADBAND Everywhere. Anytime. Affordable. WE ALL WANT BROADBAND Everywhere. Anytime. Affordable. Mobility Rural Broadband Mobile SATELLITE DELIVERS Affordable, Plentiful, Terrestrial-grade User Experience
Slide 7: Accelerating Connectivity – Growth Areas for Gilat
Accelerating Connectivity – Growth Areas for Gilat Mobile Cellular Backhaul,Network Resilience, Public Safety Rural Broadband Broadband to the Unserved and Underserved Mobility In the Air, at Sea, on the Ground
Slide 8: Mobile
Mobile
Slide 9: MOBILE – Leading the Fast Growing Satellite Backhaul Market
MOBILE – Leading the Fast Growing Satellite Backhaul Market $720M(2016) $2,900M(2026) Satellite Backhaul Market Gilat is the fastest growing playerin the vertical. It recently won large projects, boosting its market share…” “ Source: NSR, March 2017
Slide 10: MOBILE – Enabling Terrestrial-grade User Experience
Global End-to-End Services Affordable true LTE Backhaul MOBILE – Enabling “Terrestrial-grade” User Experience Delivering “terrestrial-grade” User Experience Rapid network deploymentExpanding coverage to: rural, highways, islands, tourist centers, campuses, metro-edge and metro areasReplacing leased
Slide 11: World's Fastest Broadband for LTE Backhaul
11 | Proprietary and Confidential World’s Fastest Broadband for LTE Backhaul
Slide 12: Metro Area – A Live Example
12 | Proprietary and Confidential METRO AREA - A LIVE EXMPLE
Slide 13: T-Mobile Cellular Backhaul Project
T-MobileCellular backhaulProject
Slide 14: T-Mobile Coverage Map
70 Million subscribers, 308 million POP50,000 employees2016 revenues: $37.2 BillionOver 1M net adds per quarter, 17 quarters in a row T-Mobile Coverage Map(as of December 31, 2016) T-Mobile Coverage Map(as of December 31, 2017)
Slide 15: Multi-year Managed Satellite-based LTE Backhaul Service
Multi-year Managed Satellite-based LTE Backhaul Service Scope: Expanding T-Mobile’s 4G/LTE coverage throughout the USRural areas, destinations and highways where fiber delivery is challengingEmergency response and disaster recovery – Miami, Puerto RicoSelection criteriaTechnology leadership - Succes
Slide 16: Mobility
Mobility
Slide 17: MOBILITY – Superior Passenger Experience Drives Demand
MOBILITY – Superior Passenger Experience Drives Demand 3,800(2016) 28,400(2026) Satellite Broadband Connected Aircrafts Source: NSR, May 2017 $280M(2016) $590M(2026) Aero Satellite Equipment Market
Slide 18: MOBILITY – Delivering Superior Passenger Experience
MOBILITY – Delivering Superior Passenger Experience ~2,000 aircrafts World’s Fastest SpeedIn-Flight Connectivity
Slide 19: Leading Performance Solutions for All In-Flight Connectivity Modules
Leading Performance Solutionsfor All In-Flight Connectivity Modules Ku and KaTransceivers Dual BandKu/Ka Antenna 400MbpsModem ESA/PAA
Slide 20: Rural Broadband
sa RURAL BROADBAND 20 | Proprietary and Confidential
Slide 21: RURAL BROADBAND – Delivering Core Infrastructure Supporting Nation Building
RURAL BROADBAND – Delivering Core Infrastructure Supporting Nation Building Growing service revenues Target:Recurring revenues >$50M / year, profitable, starting 2019 Broadband to unserved & underserved Bridging the digital divide Connecting communities and individuals to the world via broadbandInno
Slide 22: National Broadband Network (NBN) Enterprise project
National Broadband Network (NBN) Enterprise project
Slide 23: NBN Co and Speedcast Select Gilat for Enterprise Satellite Service
NBN Co and Speedcast Select Gilat for Business and Enterprise Satellite Service in Australia; Valued at Tens of Millions of Dollars February 5, 2018Gilat to deliver the satellite platform for NBN Co to serve nationwide business in regional and rural Australia
Slide 24: NBN - National Broadband Networks Australia
NBN - National Broadband Networks AUSTRALIA Established in 2009, government-owned, budget of $49B Objective is to extend broadband to rural AustraliaLaunched 2 satellites (Skymuster 1A and 1B) – 135 Gbps over 202 beams in 2016Active service to approximately 70,000 consumers
Slide 25: The Enterprise project
The Enterprise project Extending broadband connectivity to enterprises and government entities in rural Australia (agriculture businesses, banks, government service offices etc.)Speedcast (Australian service provider) as the prime vendor to provide full managed services, including: installations, ma
Slide 26: Why Gilat
Why GIlAT Solution is based on our cloud-based distributed X-architectureSingle platform for multi-applications, giving satellite operators the flexibility to expand customer-base according to market demand (Enterprise, Cellular Backhaul, Consumer, Mobility)High spectral efficiency (meaning: more ca
Slide 27: 2017 Summary
sa 2017 SUMMARY | Proprietary and Confidential
Slide 28: 2017 Summary
2017 Summary 2016 2017 2017 2017 targets modified targets actual Revenue $280M $280M-$300M $280M-$290M $283M Adjusted EBITDA $19.2M $20M-$24M $22M-$26M $26.2M Rural Broadband Mobility Mobile + more
Slide 29: Financial Indicators and Analysis
Financial Indicators and Analysis
Slide 30: Yearly Profit and Loss Highlights
yearly Profit and Loss Highlights US$ millions Revenues$282.8M ($279.6M)1%YoY Gross ProfitGAAP 29% (27%)Non GAAP 31% (29%) Revenues wo Terrestrial Infra$204.5M ($188M)9% YoY Mobility RevenuesMainly IFC$88.4M ($62.9M)41% YoY OPEXGAAP $71.6M ($74.7M)Non GAAP $68.8M ($68.6M) Operating ProfitGAAP $10.9M
Slide 31: Yearly Profit and Loss Highlights
yearly Profit and Loss HighlightsUS$ millions, except per share data * Include tax amnesty, goodwill impairment, restructuring cost and trade secrets litigation expenses** Adjustments reflect the effect of non-cash stock based compensation as per ASC 718, amortization of intangible assets related to
Slide 32: Quarterly Profit and Loss Highlights
Quarterly Profit and Loss Highlights US$ millions, except per share data GAAP Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Revenues 80.3 63.9 66.2 69.9 82.7 Gross Profit 24.2 17.3 19.6 20.3 25.2 Gross Margin 30% 27% 30% 29% 31% R&D net 6.5 6.7 6.2 6.9 8.2 S&M 6.2 5.8 5.6 5.8 6.6 G&A 4.2 4.0 5.3 4.3 5.0 Other expen
Slide 33: Gilat revenues & terrestrial infrastructure breakdown
Gilat revenues & terrestrial infrastructure breakdownUS$ millions $285M-$305M $283M $280M
Slide 34: Yearly Revenue per Segment
Yearly Revenue per Segment US$ millions 41% (11%) ~25% ~14% (10%) (~19%) $285M-$305M $283M $280M
Slide 35: Geographic revenue breakdown
Geographic revenue breakdownUS$ millions * Data excludes construction of the terrestrial infrastructure in Peru 2016 2017
Slide 36: Balance Sheet Highlights
Balance Sheet HighlightsUS$ millions 1) Including cash and cash equivalents, restricted cash and net of short term bank credits2) DSO calculation excludes services segment revenues and AR Cash and equivalents1$86.8 ($111.6) DSO275 days (89 days) Total Assets$386.8 ($383.2) Cash From Operation$20.8M
Slide 37: 2018 guidelines and outlook – increased profitability
2018 guidelines and outlook – increased profitabilityUS$ millions Revenues$285M-$305M ($282.8M)1%-8% YoY >60%of 2018 revenues from current backlog Revenues wo Terrestrial Infra$247M-$263M ($204.5M)21%-29% YoY Mobility RevenuesMainly IFC$98M-$103M ($88.4M)11%-17% YoY Operating ProfitGAAP $17M-$21M ($
Slide 38: Executing Profitable Growth Strategy
Executing Profitable Growth Strategy Annual Revenues Adjusted EBITDA Revenues: $285M - $305MGAAP Operating Profit: $17M - $21M Adjusted EBITDA: $30M - $34M GAAP Operating Profit 2018 Management Objectives (US$ millions)
Slide 39: In Summary – Uniquely Positioned for Unlocking Opportunities
In Summary – Uniquely Positioned for Unlocking Opportunities Demand for plentiful affordable broadband, anywhere anytime, is soaring Focused on strategy execution and profitability Leading in the main growth areas – Mobile Backhaul & IFC Mobility Oversupply of capacity unlocks new markets
Slide 40: Thank You
HANK YOU Gilat Satellite Networks | info@gilat.com | www.gilat.com
Gilat Satellite Networks — Investor Presentation (February 2018) on 6ix