Corporate Presentation Q Gilat Satellite Networks September 2014

Transcription

1 Corporate Presentation Q Gilat Satellite Networks September

2 Gilat Boundless Communications Gilat at a Glance Gilat Business Units Financial Indicators Enterprise & Consumer broadband Cellular Backhaul SOTM Commercial SOTM Defense Finance Gilat Summary 2

3 Who We Are Gilat at a Glance 3

4 Driving the Satellite Industry for Over 25 Years Growth Strategy - Leading provider of satellite-based communications products and services Broadband driven by HTS satellites with low cost bandwidth Satellite On-The-Move (SOTM); Commercial and Defense Designer and manufacturer of ground segment and networking communications equipment, including VSAT systems Defense and HLS satcom terminals Low-profile antennas SSPAs and Bucs Management Objectives for 2014 Revenue range $240m-$245m EBITDA approximately 9% 4

5 Ka-Band Ku-Band Wide Range of Products and Integrated Solutions VSAT Network System BUCS & SSPAs SOTM Antennas Terminals Hubs SkyEdge II & IP Remote Units Ground Airborne SR 71 BlackRay 71 WebEnhance CellEdge SR 250/300 SatTrooper Pro SkyEdge II-c Taurus Ground Airborne ER 5000/6000 Accent SR 5000 BlackRay Parabolic NetEdge Multi-Star Gateway Gemini X-Band Custom Integration ER 7000 Capricorn NOC Operation Turnkey Projects 5

6 Global Presence, Local Support R&D Center NOC Sales office 930 Employees Worldwide 5 R&D Centers 3 NOCs (Network Operation Centers) 21 Sales Offices 90 Countries active networks Revenue By Geographies

7 Diverse Customer Base and Partners Satellite Companies: Teco s / MNOs: ISPs: System integrators: Governments 7

8 Gilat Business Units Commercial Division Defense & Mobility Division Services Division 8

9 Commercial Division Markets and customers: Enterprise, Government, Cellular Backhaul and Broadband Internet From satellite communication technology to full network operation HUBs and VSATs Turnkey projects, NOC operations 9

10 Market Trends and Growth Drivers Global Trends Total HTS capacity demand by vertical market HTS replacing traditional satellites Wide beam Multi-spot-beam 1-2 Gbps 50 Gbps Video distribution Internet access Traditional capacity cost Reduced to 10-15% of cost Limited capacity Greatly increased capacity HTS drives low cost bandwidth for: Broadband Internet 3G/LTE Cellular Backhaul Satellite On-The-Move (SOTM) Source: EuroConsult 2013 Gilat is well positioned to take advantage of these market trends 10

11 Partnering with HTS Providers Agreements in place with SES, Thaicom, Inmarsat and O3B Ground equipment, VSATs, HUBs and Gateways Self-install VSAT Collaborative sales and distribution System allows multiple ISPs to configure own business offering Flexible business models Actively pursuing creative partnerships with other leading satellite providers 11

12 Ka Band Leaders - Gilat and SES SBBS Project Our SkyEdge II-c hubs and consumer equipment support SES s Ka-band service 20Mbps 30 euros/month Tens of thousands of Consumer Premise Equipment already delivered (and more on the way) "Gilat's advanced VSAT technology allows us to optimize our service proposition and increase our competitive advantage. Patrick Biewer Managing Director of SES Broadband Service 12

13 Cellular Backhaul Growth of 3G/LTE Growth of Small Cell 13

14 Super-fast 3G/LTE Backhaul Made Possible With Capricorn SkyEdge II-c Capricorn: 200Mbps the world s fastest TDMA VSAT Enable MNOs to connect to LTE network via satellite Quick deployment for market penetration of LTE 14

15 Small Cell Satellite Backhaul Fully integrated 3G solution: VSAT and energy solution optimized for low cost, rapid deployment First deployment of CellEdge 3G system at Leading Operator in Brazil Turnkey solution for 20 remote sites in under 2 months, including site survey and acquisition, equipment delivery, installation and activation of the network 15

16 Defense and Mobility Division Markets and customers: Defense Agencies and Airlines Satellite On-The-Move and On-The-Pause products and solutions Small terminals (SWAP); Gilat develops all elements and integrated terminals 16

17 Rugged Antennas On-The-Move RaySat ER

18 SOTM for Emergency Vehicles Deploys quickly to maintain communication when existing infrastructures go down or are unavailable SR5000 Low Profile Antenna 18

19 Tiny Terminals for UAVs BlackRay Integrated System 19

20 Airborne Connectivity The global aeronautical satcom market will reach 77,500 in-service units and generate $2.7 B in retail revenues by the end of NSR. Commercial Mobility via Satellite, 10th Edition 2014 Ka-Band AeroStream Transceiver The combination of field experience and innovative technology was a critical factor in our selection of Wavestream s Ka-band transceivers for integration into our Global Xpress antenna system. Chris Webster Honeywell Aerospace 20

21 Passenger Broadband Connectivity RaySat ER

22 Manpack On-The-Pause SatTrooper - Highly integrated (Ka, Ku-band) broadband terminal supports military operations Light weight: 13.5 Kg Set up: within minutes, with automatic pointing, and no special tools required for assembly Data rates over 2Mbps (depends on link budge) Power consumption: 40W 22

23 Services Division - Gilat Peru and Gilat Colombia Markets and customers: Government Service providers for public telephony and Internet services to rural areas, using our hubs and VSAT equipment Licensed telecommunications operator in Build-and-Operate government projects 23

24 Services Division: Gilat Peru $30m project by Fitel to enable Internet and telephony services in 70 communities in the Loreto region Contract signed 12/13 with revenues starting 2H14 Government expected to issue more projects like this over next 2 years $12.8m project for Ministry of Education in implementation phase Law passed allowing Gilat to act as a Rural Mobile Infrastructure Operator 24

25 Services Division: Gilat Colombia $99m project from Colombia s MINTIC: ~6-month deployment + 3 years service Contract signed 12/13 with service revenues starting 2H14 Internet and educational services to 1,900 rural communities and schools 25

26 Financial Indicators 26

27 Profit and Loss Highlights - Non GAAP* Three months ended US$ millions, except per share data June 30, 2014 March 31, 2014 Revenues Gross Profit Gross Margin 38.1% 41.8% R&D net S&M G&A Operating Income (loss) Net Income (loss) 0.6 (0.6) Diluted EPS 0.01 (0.01) EBITDA * Adjustments reflect the effect of non-cash stock options expenses as per ASC 718, amortization of intangible assets related to acquisition transactions and net income (loss) from discontinued operations. 27

28 Profit and Loss Highlights - GAAP US$ millions, except per share data Three months ended June 31, March 31, Revenues Gross Profit Gross Margin 35.7% 39.3% R&D net S&M G&A Operating Income (loss) (0.5) (1.5) Net Income (loss) (1.4) (2.6) Diluted EPS (0.03) (0.06) EBITDA

29 Balance Sheet Highlights US$ millions June 30, 2014 March 31, 2014 Cash Balances * Total Assets Total Debt Shareholders equity * Including cash and cash equivalents, restricted cash and net of short term bank credits. 29

30 Summary 30

31 Pursuing Our Growth Strategy HTS satellites create a significant change in the market Need for broadband connectivity when on the move driving OTM terminal growth Government of Peru increasing project spending on telecom in rural areas Gilat well positioned to exploit the market growth 31

32 Thank You Gilat Satellite Networks