Aviation is a $100m business focused on the mobile satellite communication needs of the commercial aviation industry; from safety & operations services to passenger connectivity
• SwiftBroadband (SB), largely for cabin connectivity, is 55% of revenue. Classic Safety and cockpit services (28%), leasing (12%) and Swift 64 (5%) make up the remainder
• Revenue is currently both Business Aviation and Commercial Air Transport (CAT). Demand for passenger connectivity is expected to drive CAT growth exponentially 2016-2025
Our distribution partner network delivers services to over 11,000 aircraft worldwide, effectively serving the global business aviation community, and including major airlines such as Emirates, Qatar, United, Air Asia, Air Malaysia, Singapore Airlines, etc.
Inmarsat Aviation business at a glance Powering Aviation Connectivity
Meeting the connectivity needs of any aircraft in any geography:
cockpit, cabin and the airplane
Cockpit & Airline Cabin
Inmarsat On-board Network
ACGC & ATG
Cockpit
Electronic Flight Bag
Maintenance
Internet access
W-IFE/ Entertainment /
Applications
Engine monitoring
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The commercial aviation satellite-based connectivity
market at ~$0.6bn (retail) has significant growth
potential:
• 55% of all wide-body aircraft will be connected by 2023
• Single-aisle aircraft numbers double between 2013 and 2033; 40% of aircraft will be connected
• There will be 50% growth in connected business jets
Source: Euroconsult 2014, Prospects for IFE & Connectivity
Commercial Air Transport (CAT) market is thriving Every region holds opportunity
300% increase in connected aircraft expected in next decade
Source: Boeing 2014
Source: Euroconsult 2014, Prospects for IFE & Connectivity
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Demand for connectivity is growing strongly Passengers demand Wi-Fi in flight as on the ground
Source: Honeywell Aerospace Wi-Fi Survey July 2014
Business & Consumers
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Market dynamics Vigorous Competition in a Growing Market
Gogo leads the overall cabin connectivity market with its US ATG system, but is facing strong ATG competition in the US, and for satellite services worldwide
OnAir: Owned by SITA. Early CAT market entrant with significant installed base and backlog of SwiftBroadband installations
Rockwell Collins: Major aerospace player, acquired Arinc, principal competitor to SITA and also a major distributor of Inmarsat Classic Aero Safety and Operations Services. Now distributes the full range of Inmarsat satellite services
Thales: Second largest player in the IFE market, seeking to aggressively increase presence in connectivity via expansion of its relationship with Inmarsat, acquisition of LiveTV
Panasonic: Leads the substantial IFE market, offers connectivity as an extension of IFE, based on nearly-global Ku-band satellite coverage
Global Eagle Entertainment/Row 44: Independent public company with bundled content/ connectivity solution. Ku-band satellite service deployed on Low Cost Carriers in the US and Europe
Viasat: Seeking to leverage its U.S. satellite assets and a partnership with Eutelsat to penetrate US/EU/North Atlantic Aviation markets, diversify from consumer broadband
Iridium: Inmarsat leads the Safety and Operational Services market, but Iridium also actively targeting the segment with Next/Aireon satellite-based ADSB service
61% 15%
9%
15% Gogo
Panasonic
Inmarsat
Row 44
Viasat
Satcom & ATG
Cabin connectivity market
Satcom
Cockpit connectivity market
2%
98%
Iridium
Inmarsat
Source: Management estimates based on number of aircraft end of year 2013
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CABIN & COCKPIT CABIN COCKPIT
Airlines Airlines
Commercial Air Transport Business Aviation
Bus Jet Operators
L-band and GX distribution channels Strong partnerships are enabling Inmarsat’s market penetration
Our vision is to build an airline-centric eco-system that delivers value to all in the distribution network
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Inmarsat is best positioned to capture the rapidly growing passenger connectivity market through strategic relationships to deliver a quality service at an attractive price. New safety services will leverage our leadership position in the cockpit, while new products will expand our markets
• Cement and grow our leadership in Safety and Operations Services; Launch of SB Safety – Dedicated IP connectivity to the flight deck as well as free tracking to airlines in association with our distribution partners
• New products being made available to expand into new markets - GX+, SB Safety, Hybrid L & Ka-band and ACGC
• Working with aircraft OEM partners (Boeing and Airbus) to provide installation during the aircraft build for longer-term payback. Investing in GX certification process to accelerate time to market
• Developing an airline centric eco-system with strategic partners to enable multiple revenue streams from the cockpit, cabin and airline/aircraft operations
CAT growth strategy Position Inmarsat as the global leader in passenger and cockpit connectivity
Own the Safety and Operations market
leadership position; deliver nose to tail services
Expand product portfolio to offer solutions for any size
aircraft, anywhere
Capture global, international long-haul
passenger services market with GX; partner with other
ATG providers to offer seamless, cost effective
solution
Dominate regional, short-haul with S-band/Aviation
Complementary Ground Component (ACGC)
An integrated product portfolio to best serve the connectivity needs of all aircraft types in any fleet
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With our overall portfolio spanning SB, GX and ACGC and SB Safety, coupled with our innovative service partners constantly improving their value added services, and our technology partners upgrading and expanding the hardware catalogue, Inmarsat is best positioned to continue leadership of the Business Aviation segment
• Driving development into lighter less expensive, higher performance equipment to meet high capacity demand; ACGC is a new option for smaller aircraft in EU
• Working through partners with aircraft OEM partners, such as Bombardier, to provide installation during the aircraft build
• Strengthening our distribution partnerships to expand into new markets with new offerings
• Strategic relationship with Honeywell, includes expansion via Bendix King into general aviation product
Business Aviation growth strategy Extend our market leader position
Maintain leadership in safety and operations
services: SB + GX + ACGC
New product and service offerings to all segments of business aviation markets:
SB, GX, ACGC
Extend very successful partner relationships with
Satcom Direct, Arinc Direct, Honeywell. Add new
channels: Satcom 1, Aircell
Enter general aviation market with right
hardware and price
Effective distribution channels and strategic partnerships, combined with expanded product and service portfolio support continued growth
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Product portfolio approach Meeting needs of all aircraft, anywhere
bandwidth
Aircraft size and capacity need
General Aviation
Business Aviation Super
midsize
Bizliner Narrow Body CAT
Wide Body CAT
Business Aviation
Large Cabin
Business Aviation Midsize
Light Jets
SwiftBroadband (L-band) range
Hybrid services
S-band/ACGC
GX (Ka-band)
GX +
Existing product
Planned product
Opportunity
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