Corporate update
Leo MondaleManaging Director; Growth, Management and Support
Agenda
Business overview
Our strategy
Inmarsat MSS markets
Network and route to market
Global Xpress® overview
Inmarsat benefits
Market leader in MSS today moving into VSAT markets
Strong core business and investment in new growth
Today (for last 33 years): Tomorrow (from end 2013):
Market leaderGlobal coverage, L-bandMission critical customer needsEBITDA margin 70%
Entering established marketsGlobal coverage, Ka-bandFuture proof existing businessFully-funded plan
Mobile Satellite Services (MSS)
VSAT ‘Global Xpress’ Services
Business overview
Inmarsat-4
Continued growth in core L-band services
Our strategy
Each strategic element reinforces the others
Successfully launch Global Xpress services
For new core Ka-band services
Capacity & Speed
Inmarsat-5
Empower solutions by investing in and building a (multi-network) solutions platform
Resilience & Safety
Inmarsat MSS markets18% of MSS revenue161,000 subscribers~60% government businessDrivers:Military special ops
International aid agenciesMedia: on-the-spot reporting
14% of MSS revenue15,000 subscribers~70% government businessDrivers:Military, VIP aircraft
Business jetsIn-flight passenger connectivity
56% of MSS revenue188,000 subscribersDrivers:Ship management
Automation cost savingsCrew welfare / accessSmaller vessel adoption
Market leader in all sectorsStrong subscriber growthMission critical remote connectivitySafety servicesGlobal coverageSatellite lifetimes to 2023Wholesale EBITDA margin >70%
MaritimeRevenues have grown 17% year on yearData services revenues have grown 24% year on yearMore than 32,000 FleetBroadbandsubscribers - with both ARPU and ADU climbing
A year of strong performance
Commercial maritime marketRepresents 75,421 vesselsTotal addressable market today 20,000 vesselsOnly 5,247 have VSAT installed todayOther potential maritime marketsFishing: 32,669 vesselsInland: 18,033 vesselsLeisure: 1,028,000 vessels
Maritime market can grow in MSS and VSAT
Significant fleets committing to XpressLinkMulti-year agreements – 5 years standard>330 installations at 31 December 2012Total installed VSAT base 1,186 ships (XL and legacy Ship Equip)Revenue $65-70m pa, EBITDA margin 15-20%
XpressLink has become a market leading service
in less than a year
LandThrough focus on a wider and more diverse utilisation of BGAN in Enterprise solutions, BGAN SIM installed base continues to grow in 2012 despite 2012 being a ‘non eventful’ year
BGAN subscriber growth still strong, with 7,000+
net adds in Q1’13
IsatPhone Pro >84,000 active subscribers>10% market share by unitsStrong Q4 with >13,000 net addsIsatPhone outsold market leader in Q4 and cumulatively over first two yearsReignited growth in land voice revenue after years of decline
IsatPhone Pro taking market share from competitors
High growth market opportunity>$250mStrategic partnership with SkyWaveSuited to L-band networkCompetitor market share opportunitySignificant product development completed
Further growth options in M2M Services and HDR BGAN
Global coverage complete in 2014 Future proof global MSS franchiseExpansion of activities into established, growing adjacent VSAT markets$1.9bn established market opportunitySignificant capacity pre-commitment from Boeing & Honeywell20% of cumulative 5-year plan revenues securedDistribution agreements signedService Enablement Platform investment$700m of financing from Ex-Im Bank
Global Xpress overview
Global coverage
2014
$1.9bn market
size
50 MB/s speed
$1.2bncost
3 satellites Ka-band
World’s first global mobile VSAT service
000
0
Network and route to market Established model for existing and future services
Direct / Channel partners
Inmarsat Solutions
InmarsatMaritime
InmarsatGovernment
InmarsatEnterprise
0 VSAT servicesMSS services
Inmarsat-4 satellitesInmarsat Global
Lifetimes to 2023Inmarsat-5 satellites
Lifetimes to 2028
Satellite network
Servicesportfolio
Direct & indirect
distribution
Customer markets
0InmarsatAviation
PoweringGlobal
Connectivity
Fully funded$1.5 billion liquidity and
FTSE 250 status
Multi-bandL, Ka, Mil-Ka and Ku
capabilities Innovative$3B invested into our next
generation networks
GlobalSeamless global coverage and in-orbit redundancy
MobileA network specifically
built for mobility
BreadthUnrivalled product and service
range from M2M to Global Xpress
SecurityHighly secure networks
ReachGlobal distribution
network
History33 years and 5 fleet
generations of reliability
Inmarsat benefits
SafetyUnique long-term commitment
to safety services
“In these tough times, I’d rather be partnered with Inmarsat
than anyone else in our industry”
Thank you