Confidential and proprietary information
This presentation constitutes proprietary and confidential information of Gilat Satellite Networks Ltd. This presentation may
not be disclosed, used or duplicated, in whole or in part, without the prior written consent of Gilat Satellite Networks Ltd.
Gilat Satellite Networks Doron Elinav – VP Strategic Accounts
April 2012
Confidential and proprietary information
Forward-Looking Statements This presentation contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are outside our control. These forward-looking statements include statements about our business strategy, objectives, and expectations, our future operating results, projections of capital expenditures, competitive pressures, revenues, growth prospects, product development, financial resources and other financial matters. The inclusion of forward-looking statements should not be regarded as a representation by us that any of our plans will be achieved. Actual results may differ materially from those set forth in this presentation due to the risks and uncertainties inherent in our business including, without limitation, slower than anticipated growth in the wireless communications markets; failure to win or maintain large-scale contracts; difficulties or delays in developing, producing and marketing new products, applications and services; competition from other network communications companies; our ability to control our expenses; and other risks detailed in the “Risk Factors” section of our latest Annual Report on Form 20-F.
You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and we undertake no obligation to revise or update information herein to reflect events or circumstances after the date hereof.
Information regarding market and industry statistics contained in this presentation is based on information available to us that we believe is accurate. It is generally based on industry publications and reports that are not produced for purposes of securities offerings or economic analysis.
Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
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Confidential and proprietary information
Gilat 1987
Confidential and proprietary information
Gilat Today…
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Vision: Lead the Satcom Industry with Innovative
Commercial & Defense Products and
Solutions, Enabling our Customers to
Excel
Growth Strategy: Ka-band broadband services
SOTM for defense and homeland security
Employees: ~1400 employees worldwide
Financials:
2011 Revenues: $339.2M
2011 EBITDA: $33.5M
Management
Objectives:
2012 Revenues: $340 - $350 million
2012 EBITDA: 10%
Confidential and proprietary information
Annual Financial Indicators ($M)
Annual Revenues
EBITDA
233.0
339.2
2010 2011
14.2
33.5
2010 2011
Non GAAP GAAP
(6.2)
(12.3)
2010 2011
1.3
17.5
2010 2011
Operating Income
Backlog
232.1
264.6
2010 2011
Confidential and proprietary information
Worldwide Presence
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USA & CAN 46%
LATAM 30%
EMEA 9%
APAC 15%
Revenue Breakdown
5 R&D Centers; 6 NOCs (Network Operation Centers);
20 Sales Offices 90 Countries 430 networks
>1,000,000 VSATs shipped
R&D Center
NOC
Sales office
Confidential and proprietary information
Satellite Communications
● Satellite communication is growing – both in market size and
importance
● DTH and an enabler for HDTV
● Satellite Radio
● Broadband satellite services
● NextGen Ka Band satellites are opening new markets
● Stronger and higher capacity, at relatively lower cost
● NBN Ka Band satellites
are examples of this
Confidential and proprietary information
Where is Satellite used? Some typical examples
8 Main antenna
RF and antenna
Hub
Indoor unit
Confidential and proprietary information
Where is Satellite used?
● Broadcast / Multicast
● Satellite TV
● Stock Market
● High availability
● Lottery
● Banking
● Ubiquitous Broadband
● Schools
● UAV
● Rapid deployment
● Emergency response
● Elections
Some typical examples
9 Main antenna
RF and antenna
Hub
Indoor unit
Confidential and proprietary information
Ka Band Market
● Typical spot-beam satellites
cost $400M-$500M
(vs $150M-$250M for
traditional satellites)
● Spot-beam satellites provide
40Gbps-90Gbps
(vs 2Gbps-6Gbps for
traditional satellites)
● Spot-beam satellites promise
to drive growth by enabling
capacity at about 1/10th the
cost of traditional capacity!
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Source: Comsys 2011
Satellite Capacity by Band
Eutelsat’s Ka-SAT coverage
Source: Eutelsat
Confidential and proprietary information
GESAC – bringing Internet to Brazil
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Confidential and proprietary information
Russian Elections
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Confidential and proprietary information
Strengths in the Commercial Market
● Focus on Technology and System Integration
● Solutions for Consumer, Enterprise,
ISP and Governments
● Focus on Emerging Markets
● Ka Band Solutions
● Leading Ka Band Technology
● Credibility
● Local presence and partnerships
● Flexibility and customization
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Consumer:
Aries
Government & Enterprise:
WebEnhance
ISP and Trunking:
Accent
Confidential and proprietary information
Why is Satellite used in Defense & Security?
● Provide Video from/to the battlefield
● UAVs and other sensors
● Real-time communication
● Network-Centric Warfare
● Tactical units need connectivity
that radio cannot provide everywhere
● Independence from terrestrial networks
● Cannot depend on existing
infrastructure
● Security
● Control over network
Some typical examples
Confidential and proprietary information
Israel Magen David Adom Exercise
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Confidential and proprietary information
Fox News
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Confidential and proprietary information
Panama Panama
Gilat Colombia and Gilat Peru
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● Colombia
● 2,000 telephony and Internet Sites
● Won School connectivity project and
extensions of existing Compartel
contracts ($34.5 million)
● Deployment of School connectivity
project underway to 1600 schools
● Peru
● 8,000 telephony and Internet Sites
● Won Fitel 10 ($14.5 million)
● Project Implementation underway
to 770 communities
Confidential and proprietary information
USA Services Leadership
● Providing seamless End-to-End Services and Solutions
● Focused on Enterprise and Government
● Service to >130,000 sites
● High quality of service
● Highly reliable services
● Growth in Managed Network Services
● Technology agnostic broadband solutions
● Wins in the retail market: Dollar General
● Leveraging on CICAT acquisition
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Confidential and proprietary information
Gilat and Australia
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Confidential and proprietary information
Gilat in Australia
● Our local office was established in 1996 in
Melbourne
● We employ Australian staff
● provide training overseas
● subcontract to local companies service
● Provide comms solutions to the Pacific
● Gilat value: improving the quality of life
through affordable broadband service
anywhere under the sky
Confidential and proprietary information
Gilat in Australia
We provide solutions to variety of customers:
● Consumer market – FRSS NBN (Interim), transitioning HIBIS
\ABG customer base to higher speeds
● Emergency - Victoria Police, LSE, NSW-Fire Brigade, NZ IGNS
● Education - School of the air and DEET
● Corporate – FORD intranet,
● Optus is our biggest customer in the region
● Shipped >35,000 VSATs to date
● From Australian office, we support the
Pacific region; Indonesia, Malaysia, Papua
New Guinea, Fiji, etc…
Confidential and proprietary information
Australian NBN Interim Satellite Service
● Agreement with Optus for Australian
Government’s National Broadband
Network Company’s Interim Satellite Service
● Optus Ku Band capacity and
iPSTAR Ka/Ku Band multi-spot
beam capacity
● SkyEdge II VSAT network
● 11 hubs and 20k VSATs, to be deployed within 3 years
● Installation, operation and maintenance for 5 years
● Expansion of hubs and up to 48k VSATs - dependant on
uptake
● Potential value up to A$120M
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Australia: HiBIS installation
Confidential and proprietary information
Australian NBN Interim Satellite Service
One of the first pilot installations for NBN Co
Ranch in Wallaloo – a
suburb of Victoria
Hubs in Kalgoorlie
Collocated antenna
in Kalgoorlie
Confidential and proprietary information
Why was Gilat chosen?
● Excellent product and technology
● Local presence –
Australians working on the project
● Ability to work as a partner –
Optus and iPSTAR
● Tight integration with Optus’s OSS/BSS system –
Long lasting relationship between the companies
● Willing to set up local operations and take
broader responsibilities
● Manage network and installations for Optus
● Relocation of experts from US to Australia
Pre-NBN award…
now staffing 24 people and growing
Confidential and proprietary information
Summary
● Gilat was founded with two thoughts in mind:
● Utilizing Israeli ingenuity, entrepreneurship, and innovation
as a basis for a successful company
● To make a positive impact globally
Providing communications to regions that otherwise would
not have access to high quality Internet or telephony
● Gilat has been successful in both aspects!
● $340M in sales, with ~1400 employees
● Leading technology and solutions provider
● Bringing affordable broadband to regions that otherwise,
would not benefit from advanced communications
Confidential and proprietary information
Thank You
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