Viasat, Inc. · NASDAQ:VSAT
Viasat — Merger or Acquisition (November 2021)
30 slides from Viasat's merger presentation, November 2021
Slide 1: Viasat + Inmarsat
/ PRIVILEGED AND CONFIDENTIAL Viasat + Inmarsat C O N N EC T I N G T H E WO R L D + — NOVEMBER 2021
Slide 2: Today's Participants
MARK DANKBERG — Executive Chairman, Co-Founder RICK BALDRIDGE RAJEEV SURI T O D AY ’ S — — PA R T I C I PA N T S Chief Executive Officer Chief Executive Officer — SHAWN DUFFY TONY BATES — — Chief Financial Officer Chief Financial Officer VIASAT INMARSAT 2
Slide 3: Transaction Overview
STRUCTURE & OWNERSHIP OVERVIEW — TRANSACTION › Inmarsat shareholders to receive total consideration of $3,956mm, including • $850mm of cash, subject to adjustments • 46.36mm newly issued unregistered Viasat shares valued at $3,106mm(1) › Values Inmarsat at ~10x CY’21E EBITDA excluding synergies or ~
Slide 4: Together We Are
$4.1bn $1.4bn — $14.8/$8.3bn — — CY’21E Revenue CY’21E Adj. EBITDA(4) Enterprise Value(5)/ Market Cap(6) TOGETHER 19 10 45% WE ARE — — — — Satellites In Service(7) Satellites Under Construction CY’21E Government Service Revenue(8) 8K+ — 90+ — 2,500+ — Global Employees Global Offices Patents(9) 4
Slide 5: Transaction Rationale
TRANSACTION RATIONALE New and better services for — customers, creating more choice in fragmented and highly competitive sectors Enhanced growth and innovation opportunities Increased financial through fusion of strength, supporting complementary Heritage of innovation, assets and international inve
Slide 6: Enhanced Growth: Broadband and IoT Industry Tailwinds
ENHANCED GROWTH B R O A D B A N D A N D I O T G E N E R AT I N G P O W E R F U L I N D U S T R Y TA I LW I N D S Energy Aviation Fixed Control Tracking & Analytics Government Maritime Monitoring SURGING DEMAND FOR BROADBAND INDUSTRY M U LT I - B A N D I O T O P P O R T U N I T Y DRIVERS NEW GLOBAL O
Slide 7: Unlocking New Opportunities for Expanded Services
ENHANCED GROWTH U N L O C K I N G N E W O P P O R T U N I T I E S F O R E X PA N D E D S E R V I C E S ($ IN BILLIONS) GOVERNMENT PREMIUM SERVICES 2020A 2030E US DoD US DoD US Gov. Internet of US DoD International Comms Cyber Cyber Battlefield Command & MILCOM & Cyber $ 8 1 (10) ~ $ 1 3 0 (10) +5% C
Slide 8: Complementary Assets: Flexible, Hybrid, Multi-Layered Network
C O M P L E M E N TA R Y A S S E T S F L E X I B L E , H Y B R I D , M U LT I - L AY E R E D N E T W O R K D R I V I N G G L O B A L C O V E R A G E T O D AY Global fleet of 19 satellites(7) › 10 Ka-band satellites › 8 L-band satellites › 1 S-band satellite L- and Ka-band capabilities can be integra
Slide 9: Opportunities for L-Band Revitalization and Innovation
C O M P L E M E N TA R Y A S S E T S S I G N I F I C A N T O P P O R T U N I T I E S F O R L - B A N D R E V I TA L I Z AT I O N A N D I N N O VAT I O N › Ideally suited for mission-critical, all-weather secure comms and connectivity for commercial and government › I-6 constellation launching soon ›
Slide 10: Driving Greater Customer Choice
DRIVING GREATER CUSTOMER CHOICE — A combined Viasat and Inmarsat will be positioned to provide our customers with a compelling offering, including: › More bandwidth, more affordably at higher speeds › Global, layered multi-band resilient coverage › Global operations and support footprint with local
Slide 11: Government: Strong Service-Centric Recurring Revenue
STRONG SERVICE -CENTRIC CY’21E GOVERNMENT REVENUE BY TYPE RECURRING REVENUE GOVERNMENT — V I A S AT — • Balanced mix of product and recurring services V I A S AT revenue + I N M A R S AT • Strong relationships with allied nations • Unique portfolio of technologies to develop novel, secure, real-time
Slide 12: Maritime Mobility
41k+ Broadband and • Strong and diverse franchise with narrowband-enabled global distribution vessels MOBILITY • Opportunity to enhance services to MARITIME existing customer base — • Enhanced network enables 40+ Value-added application A LEADER service providers P O S I T I O N E D TO offerings for
Slide 13: Aviation Mobility: Scale and Diversification
~2.4k MOBILITY In-Service IFC Aircraft AVIATION — ~2.9k S C A L E A N D D I V E R S I F I C AT I O N Backlog IFC Aircraft • Broader, more diverse range of service offerings 9k • Immediate hybrid global In-Service Cockpit Comms coverage, including future polar coverage • Enhanced ability to densely 1
Slide 14: Aviation: Matching Supply with Global IFC Demand
MOBILITY AVIATION — Geographic distribution of • 0.0 to 25.0 • 25.0 to 50.0 M AT C H I N G S U P P LY W I T H ~3bn annual global • 50.0 to 75.0 GLOBAL IFC DEMAND passenger minutes • 75.0 to 100.0 14
Slide 15: A Track Record of Innovation
A TRACK RECORD OF INNOVATION Introducing new Accelerating solutions focused on pace of customer needs: right innovation place, right time, at the right price Bringing together complementary assets to deliver a Increasing customer choice network with: Creating for internet-centric additional high- se
Slide 16: Heritage of International Cooperation
H E R I TA G E O F I N T E R N AT I O N A L COOPERATION › Heritage of international aviation and maritime safety yields responsibility and opportunity — › Furthers Viasat’s corporate commitment to space sustainability and peaceful cooperation among nations › As a result of the combination, Viasat in
Slide 17: Financial Overview
FINANCIAL OVERVIEW — 17
Slide 18: Foundation for Sustained Future Growth
F O U N D AT I O N F O R S U S TA I N E D F U T U R E G R O W T H — REVENUE Mid-teens revenue growth(16) expected to be driven by Mobility and Government, with greater diversity and resilience ADJ. EBITDA Mid-teens Adj. EBITDA(16) growth expected to be driven by operating leverage and synergies UPSI
Slide 19: Double-Digit Revenue and Adjusted EBITDA Growth
D O U B L E - D I G I T R E V E N U E A N D A D J U S T E D E B I T D A G R O W T H (16) — V I A S AT I N M A R S AT V I A S AT + I N M A R S AT CY’21E ~$2.7bn ~$1.3bn ~$4.1bn REVENUE CY’21E ~$600mm ~$740mm ~ $ 1 . 4 b n (4) ADJ. EBITDA CY’21E ~22% ~55% ~35% EBITDA MARGIN P O I S E D T O G E N E R A
Slide 20: Complementary, Diverse and Resilient Portfolio
C O M P L E M E N TA R Y, D I V E R S E A N D R E S I L I E N T P O R T F O L I O V I A S AT I N M A R S AT COMBINED C Y ’ 2 1 E R E V E N U E B Y G E O G R A P H Y (17) • 70% N. America • 17% Europe • 10% APAC • 3% RoW V I A S AT I N M A R S AT COMBINED C Y ’ 2 1 E R E V E N U E B Y A P P L I C AT
Slide 21: Anticipated Annual Run-Rate Synergies Driving Value Creation
A N T I C I PAT E D A N N U A L R U N - R AT E S Y N E R G I E S D R I V I N G M AT E R I A L VA L U E C R E AT I O N — REVENUE SYNERGIES COST SYNERGIES CAPEX SYNERGIES NPV › Satellite fleet capital efficiencies $1.5bn (long-term) _ › New tiered services › Cost of goods sold, enabled by global inclu
Slide 22: Committed Financing Obtained for Transaction
C O M M I T T E D F I N A N C I N G O B TA I N E D F O R T R A N S A C T I O N — SECURED FINANCING COMMITMENTS FOR $2.3BN AT T R A C T I V E C R E D I T P R O F I L E W I T H P L A N T O R A P I D LY D E L E V E R A G E › Acquisition funding and expenses — › Adds liquidity at closing with revolving
Slide 23: Transaction Rationale
TRANSACTION RATIONALE New and better services for — customers, creating more choice in fragmented and highly competitive sectors Enhanced growth and innovation opportunities Increased financial through fusion of strength, supporting complementary Heritage of innovation, assets and international inve
Slide 24: Q&A
Q&A — 24
Slide 25: Viasat + Inmarsat
Viasat + Inmarsat C O N N EC T I N G T H E WO R L D +
Slide 26: Appendix
APPENDIX — 26
Slide 27: Inmarsat Standalone Financials
S TA N D A L O N E I N M A R S AT ( 2 0 ) — ($ in millions) CY 2020A CY 2021E(21) Maritime $491 $503 Government 443 482 Enterprise 114 112 Aviation 178 231 Central Services and Other 14 12 Total Revenue $1,239 $1,340 % Growth 8% Adj. EBITDA (Pre-SBC) $665 $743 % Margin 54% 55% Cash Capex 288 340 27
Slide 28: Inmarsat Standalone Capitalization as of September 30, 2021
I N M A R S AT S TA N D A L O N E C A P I TA L I Z AT I O N A S O F S E P T E M B E R 3 0 , 2 0 2 1 ( 2 1 ) — Standalone $ in millions Maturity Rate 9/30/21A Cash $462 Inmarsat First Lien Term Loan 2026 L + 350 1,724 Inmarsat Senior Secured Notes 2026 6.750% 2,075 Inmarsat Capitalized Leases – – 48
Slide 29: Endnotes
as of 9/30/21 and $39mm of pro forma www.cable.co.uk/broadband/pricing/world minority interest. widecomparison/, ITU Broadband Access ENDNOTES 7. Includes lifetime leases. Report, 2020, Telegeography , Satellite Connectivity and Video Market, Euroconsult, 8. Government service revenue as a percentag
Slide 30: Disclaimer
Cautionary Statement Regarding Forward-Looking Statements Financial Information This presentation contains forward-looking statements regarding future events that are subject to the safe harbors created This presentation includes both stand-alone and combined financial information of Viasat and Inma