Gilat Satellite Networks Ltd. · NASDAQ:GILT
Gilat Satellite Networks — Investor Presentation (May 2018)
32 slides from Gilat Satellite Networks's investor presentation, May 16, 2018
Slide 1: Form 6-K cover
FORM 6 – K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report on Foreign Issuer Pursuant to Rule 13a – 16 or 15d – 16 of the Securities Exchange Act of 1934 For the Month of May, 2018 Gilat Satellite Networks Ltd. (Translation of Registrant’s Name into English) Gilat House, Yegia Kapay
Slide 2: Form 6-K signature page
Attached hereto is Registrant’s IR presentation as posted on Registrant’s website. Signature Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized. Gilat Satellite Netwo
Slide 3: Gilat Satellite Networks Company Overview
Slide 4: Forward Looking Statements Disclaimer
400 a FORWARD LOOKING STATEMENTS DISCLAIMER al 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 a
Slide 5: Gilat - Boundless Communications
400 CS GILAT —- BOUNDLESS COMMUNICATIONS itl «Pp ~7 ately °o ‘oO ae a MOBILE MOBILITY RURAL BROADBAND MOST ADVANCED TECHNOLOGY END-TO-END SERVICE GLOBAL PRESENCE Terrestrial-grade user experience Most stringent service levels 20 sales offices Established 1987 NASDAQ / TASE: GILT ~1,100 employees
Slide 6: Global Footprint - Expanding a Diverse Customer Base
et GLOBAL FOOTPRINT — EXPANDING A DIVERSE CUSTOMER BASE SATELLITE OPERATORS SES‘ A aha satcom » @° eutelsat jnmarsat SYNERTONE BP IN TELSAT Gi YMG) i 1S hispasat CARRIERS & SERVICE PROVIDERS Sprint > ‘E - Mobile: SoftBank OPTUS MDDI @& Globe 8 ao grge BTe bharti ce) Felofinica i 6 orange vodafone SY
Slide 7: Booming Capacity - GEO + LEO/MEO
“4 BOOMING CAPACITY — GEO + LEO/MEO Global HTS Bandwidth Supply, Demandand Price per Mbps $/Mbps/Month 1,000 900 ~16 times today 800 700 600 500 400 300 200 100 2011 2012 2013 2014 2015 2016 2017 @=m GEO-HTS Global Demand mmm Non-GEO HTS Global Supply 2018 2019 2020 2021 2022 2023 2024 mm GEO-HTS Gl
Slide 8: Affordable Internet Everywhere
YF 3 AFFORDABLE INTERNET EVERYWHERE ath IS BECOMING A “BIRTH RIGHT” WE ALL WANT BROADBAND SATELLITE DELIVERS Everywhere. Anytime. Affordable. Affordable, Plentiful, Terrestrial-grade User Experience i) Self-actualization Creativity. Problem Solving. Authenticity, Spontaneity yr N Esteem Self-Esteem,
Slide 9: Accelerating Connectivity - Growth Areas for Gilat
ade ~ ACCELERATING CONNECTIVITY — GROWTH AREAS FOR GILAT ath Rural Broadband Cellular Backhaul, In the Air. at Sea. on the Ground Broadband to the Network Resilience, Public Safety , ‘ Unserved and Underserved
Slide 10: Mobile
Slide 11: Mobile - Leading the Fast Growing Satellite Backhaul Market
YT =i MOBILE — LEADING THE FAST GROWING SATELLITE BACKHAUL MARKET ist Satellite Backhaul Market $2,900M “Gilat is the fastest growing player in the vertical. It recently won large projects, 2026 . : ” ee boosting its market share...” Source: NSR, March 2017 $720M (2016)
Slide 12: Mobile - Enabling Terrestrial-Grade User Experience
ade ~ MOBILE — ENABLING “TERRESTRIAL-GRADE” USER EXPERIENCE ath Affordable true LTE Backhaul © Delivering “terrestrial-grade” User Experience © Delivering comprehensive services © Rapid network deployment i T ‘lh © Expertise in integrating ground and sat networks Experience with tier-1 MNOs worldwid
Slide 13: Proprietary and
Proprietary and Confidential
Slide 14: UBER
UBER PICKUP LOCATION Go To Pin Word For The World MEINE C Plaza , Christian Fellowship CEMEEENENS Tower” x, Sia - Cheap Thrills (Lyric Video) = — ‘ Reie* ft. Sean Paul 2 : 5 “Se Philippine Bank of = 4 A ~ Communications al Center, Tower 1 LTE Discovery LTE LOG Washington Sycip Park SIGNALS SAN LOREN
Slide 15: Expanding 4G/LTE Coverage
400 . EXPANDING 4G/LTE COVERAGE ‘I - «Mobile: Multi-year Managed Satellite-based LTE Backhaul Service T-Mobile Coverage Map (as of December 31, 2016) © T-Mobile US © 70 Million subscribers, 308 million POP > 50,000 employees © 2016 revenues: $37.2 Billion © Over 1M net adds per quarter, 17 quarters
Slide 16: Mobility
Slide 17: Mobility - Superior Passenger Experience Drives Demand
We. “i MOBILITY — SUPERIOR PASSENGER EXPERIENCE DRIVES DEMAND ist Satellite Broadband Connected Commercial Aircrafts Commercial Aero Satellite Equipment Market $590M 28,400 (2026) (2026) $280M (2016) Source: NSR, May 2017 gogo Airmedia Honeywell
Slide 18: Mobility - Delivering Superior Passenger Experience
MOBILITY — DELIVERING SUPERIOR PASSENGER EXPERIENCE al World’s Fastest Speed ~2,000 aircrafts In-Flight Connectivity Ge rnomexo BAIR CANADA ue” amprances — riflesh prercanaiines™4 wastmnamans > caruavencinc = Scamavomcon = DELTA GOL wena yg = @ arava STA KLM PLATAm mueve unites} © ores 9 ona | c» g°
Slide 19: Dual Band Ku/Ka Antenna
Dual Band Ku/Ka A Ku/Ka Antenna Ku and Ka Transceivers 400Mbps Modem
Slide 20: Rural Broadband
Slide 21: Rural Broadband - Delivering Core Infrastructure
ib ~. RURAL BROADBAND —- DELIVERING CORE INFRASTRUCTURE ath SUPPORTING NATION BUILDING Broadband to unserved & underserved Large governmental projects in Peru and Colombia © Bridging the digital divide © Peru—FITEL projects GS rire o A$2B+programto build terrestrial networks across Peru © Connecting
Slide 22: National Broadband Network (NBN) - Australia
400 NATIONAL BROADBAND NETWORK (NBN) — AUSTRALIA NBN Co and Speedcast Select Gilat for Business and Enterprise Satellite Service in Australia; Valued at Tens of Millions of Dollars February 5, 2018 Gilat to deliver the satellite platform for NBN Co to serve nationwide business in regional and rural
Slide 23: Financial Indicators and Analysis
a FINANCIAL INDICATORS AND ANALYSIS
Slide 24: Q1 2018 Results Highlights
44 Net Profit GAAP $2.3M ($0.8M loss) Non GAAP $3.8M ($1.7M) *)91-18(01-17) roprietary and Confidential a Gross Profit GAAP 32% (27%) Non GAAP 34% (29%) OPEX GAAP $17.7M($17.3M) Non GAAP $17.5M ($16.1M) Operating Profit GAAP $3.7M ($0M) Non GAAP $5.1M ($2.5M) Operating Margin GAAP 5% (0%) Non GAAP 8
Slide 25: Quarterly Profit and Loss Highlights
400 QUARTERLY PROFIT AND LOSS HIGHLIGHTS US$ MILLIONS, EXCEPT PER SHARE DATA Q117 Q2 17 Q3 17 Q417 Q1 18 Revenues 63.9 66.2 69.9 82.7 67.4 Gross Profit 17.3 19.6 20.3 25.2 21.4 Gross Margin 27% 30% 29% 31% 32% R&D net 6.7 6.2 6.9 8.2 8.0 S&M 5.8 5.6 5.8 6.6 5.4 G&A 4.0 33 4.3 5.0 4.3 Other expenses
Slide 26: Balance Sheet and Liquidity
Yo: DSO? 64 days (70 days) Total Debt $13.1 ($17.1) 1) Including cash and cash equivalents, restricted cash and net of short term bank credits 2080 Te Inf Projects 3) Q1-18 (Q4-17) 24 | Proprietary and Confidential Total Assets $371.3 ($386.8) Shareholders equity $222.4M ($218.3M)
Slide 27: Executing Profitable Growth Strategy
7 EXECUTING PROFITABLE GROWTH STRATEGY 2018 Management Objectives (US$ millions) Annual Revenues Adjusted EBITDA 2796 2828 285-305 30-34 26.2 19.2 : 2016 2017 7 2018 E 2016 2017 2018E GAAP Operating Profit 17-21 10.9 at J —= 2016 2017 2018E Revenues: $285M - $305M GAAP Operating Profit: $17M - $21M
Slide 28: 2018 Guidance: Backlog, EBITDA and Operating Profit
>75% of 2018 revenues from current backlog Adjusted EBITDA Operating Margin Operating Profit $30M-$34M ($26.2M) GAAP 4% (4%) GAAP $17M-$21M ($10.9M) 15%-30% YoY Non GAAP 7% (7%) Non GAAP $21M-$25M ($18.5M ) 26 | Proprietary and Confidential
Slide 29: Gilat Revenues & Terrestrial Infrastructure Breakdown
4 GILAT REVENUES & TERRESTRIAL INFRASTRUCTURE BREAKDOWN US$ millions $285M-$305M $38M-$42M $247M-$263M 2016 2017 2018 = Satellite = Terrestrial Infra 27 | Proprietary and Confidential
Slide 30: Yearly Revenue per Segment
0, YEARLY REVENUE PER SEGMENT US$ millions 2016 2017 = Fixed =Mobility = Terrestrial Infra 28 | Proprietary and Confidential $285M-$305M $38M-$42M $98M-$103M $149M-$160M 2018
Slide 31: In Summary - Uniquely Positioned for Unlocking Opportunities
YO ey IN SUMMARY — UNIQUELY POSITIONED FOR UNLOCKING OPPORTUNITIES atl ( AM Oversupply of capacity unlocks new markets Y \ 4h Fe ; { ES Demand for plentiful affordable broadband, \ yt anywhere anytime, is soaring ( Leading in the main growth areas — " Mobile Backhaul & IFC Mobility | © Focused on st
Slide 32: Thank You
THANK YOU Gilat Satellite Networks | [email protected] | www.gilat.com
Gilat Satellite Networks — Investor Presentation (May 2018) on 6ix