Company Overview 4QFY2017 0 ir@pdvWireless.com Safe H Harb rbor - - PowerPoint PPT Presentation

company overview 4qfy2017
SMART_READER_LITE
LIVE PREVIEW

Company Overview 4QFY2017 0 ir@pdvWireless.com Safe H Harb rbor - - PowerPoint PPT Presentation

A RECOGNIZED LEADER IN MOBILE WORKFORCE COMMUNICATIONS AND LOCATION-BASED SOLUTIONS Company Overview 4QFY2017 0 ir@pdvWireless.com Safe H Harb rbor or S Statement ent This presentation contains forward-looking statements about


slide-1
SLIDE 1

A RECOGNIZED LEADER IN MOBILE WORKFORCE COMMUNICATIONS AND LOCATION-BASED SOLUTIONS

Company Overview 4QFY2017

ir@pdvWireless.com

slide-2
SLIDE 2

This presentation contains forward-looking statements about pdvWireless, Inc., (the “Company” or “pdvWireless”). These statements relate to future events or to our future plans, operations, performance or achievements, and involve known and unknown risks, uncertainties and other factors that may cause actual events or our actual results, operations, performance or achievements to be materially different from any future events, results, operations, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” or “continue” or the negative of these terms or other comparable terminology. The following factors, among others, may cause future events or our actual results, operations, performance or achievements to differ materially from any future events, results, performance or achievements expressed or implied by these forward-looking statements: the Company has a limited operating history with respect to its recently launched DispatchPlus business; the Company has had net losses each year since its inception and may not achieve or maintain profitability in the future; the Company’s indirect sales model may not be successful; customers may not adopt the Company’s technology or service offerings as quickly as anticipated or in sufficient numbers; the Company’s spectrum and other initiatives and opportunities, including its Joint Petition for Rulemaking, may not be successful on a timely basis or at all, and may continue to require significant time and attention from its senior management team and the expenditure of significant resources; the wireless communication industry is highly competitive and the Company may not be able to compete successfully; and government regulation could adversely affect the Company’s business and prospects. These and other factors that may affect the Company’s future results or operations are identified and described in more detail in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended March 31, 2017, filed with the SEC on June 6, 2017. You should not place undue reliance on these forward-looking statements, which speak only as of the date that they were made. Except as required by applicable law, we do not intend to update any of the forward-looking statements to conform these statements to reflect actual results, later events or circumstances or to reflect the occurrence of unanticipated events.

Safe H Harb rbor

  • r S

Statement ent

slide-3
SLIDE 3

pdvWire irele less ( (Nasdaq aq: : PDVW)

2

 Founded in 2004; priva

vate w e wirel eless communi unications ns c carrier and provider of mobile workforce management solutions

 Executive team previously established and helped

develop Next xtel C Communicatio ions along with highly successful mobile communications companies

 Ra

Raised appr pproxim ximately $ $300M i in n equi quity and listed

  • n NASDAQ in February 2015

 Purchased na

nationwide ide pr prim ime s spe pectrum in n 900 MHz z ba band nd; provides significant business opportunities

slide-4
SLIDE 4

3

Experi erienced ed L Lead aders ership ip T Team eam

John C. Pescatore Tim Gray, CPA Rob Schwartz

President and Chief Executive Officer Chief Financial Officer Chief Strategy & Development Officer

NeoWorld Communications, EVP and

Chief Operating Officer

MedImmune, SVP and Chief Financial

Officer

CEO of STI Brasil, LLC Expanets, Inc., EVP of Operations AOL, VP Finance, International & Access Managing Director of Unison Site

Management

Nextel Communications, President of the

Two-Way Radio Division

Nextel Communications, Director,

Corporate Financial Planning & Analysis

Executive Vice President of IDT Telecom Nextel Communications, Vice President

  • f the Two-Way Radio Division

Director of Corporate Development of

Nextel

Brian McAuley Morgan O’Brien

Executive Chairman of the Board Vice Chairman of the Board

NeoWorld Communications, Founder,

President and CEO

Global Telecom and Technology, Inc.

(NYSE: GTT), Founding Director

Sold NeoWorld to Nextel in 2003 ($273M) Nextel Communications, Co-founder and

Chairman

Nextel Communications, Co-founder,

President and CEO

FCC Mobile Services Division United Rentals (NASDAQ: URI), Director Named by FierceWireless as one of the

top wireless innovators of all time

slide-5
SLIDE 5

Curre rrent I Init itiat iativ ives

4

Dispat atch chPlus us

Workforce management solution with added power

  • f one-touch, push-to-talk

technology

FCC regu egula lator

  • ry p

proc

  • ces

ess

Joint Petition for Rulemaking to the FCC proposing the realignment of a portion of our 900 MHz band from narrowband to broadband

Strategic gic O Oppor

  • rtunities

ies

Leveraging our spectrum for enterprise use and wireless service opportunities

slide-6
SLIDE 6

Dispatch chPlu lus: O : Overv rvie iew

5

Wide-ar

area, a, t two-way r radio n

  • networ
  • rks
  • ffering PTT communications services to dispatch-

centric businesses

Commercially l

launched across 7 major

market areas with national licensed coverage expansion opportunities

Value-added b

business s solutions, including

wide area PTT and propri rietary ry workforce management solutions

Various s

sale les s strategie ies in in pla lace targeting

qualified business leads across many verticals

slide-7
SLIDE 7

Dispatch chPlu lus: : Mark rket E Economic ics

6

►Per Market

et V Variabl bles es:

  • 10 to 12 initial sites to launch
  • Capital costs of $1.5M -$2M
  • $2.5k operating costs per

month/per site

  • 1 to 2 dedicated pdvWireless

reps covering territory

  • Indirect sales channel model
slide-8
SLIDE 8

Po Post Reali lignment

7

CU CURRENTLY: The 900 MHz band is within a contiguous 5x5 MHz block of spectrum separated into 40 interleaved segments:

(20 20) 10 10-channel blocks o

  • f paired 1

12.5 kHz z channels a allocated a and aucti tioned f for S Specialized M Mobile R Radio ( (“SMR”) u use o

  • n MTA b

basis ( s (2.5 M MHz) (20) 20) 1 10-channe nnel blocks o

  • f paired 1

d 12.5 kHz channe nnels a allocated f d for B Bus usine ness/Indu ndustrial/Land T nd Trans nsportation ( n (“B/ILT”) u use o

  • n site

te-specific b basis ( (2.5 MHz) z)

BACKGR GROU OUND: In November 2014, pdvWireless and the Enterprise Wireless Alliance filed a Joint Petition with the FCC

proposing realignment of its 900 MHz band into 3x3 MHz broadband and 2x2 MHz narrowband segments

Enhan ancin cing O g Our S Spect ectrum rum Value ue

Spec ectrum To Today

slide-9
SLIDE 9

per MHz POP ($)

Discount counted ed Spect ctrum rum P Purch chases es

8

1Average price per FCC 2Average price per FCC 3TMobile investment presentation 4FierceWireless 12/23/2011 5Represents 60% increase in spectrum value since 2008 as a result of AT&T’s 2010 purchase of Qualcomm’s 700 MHz E Block Spectrum 6Average price per FCC 7FierceWireless 2/2/2015

Note teworth thy s spectr trum t transacti tions t that h t have ta taken place from 2008 t to 2 2017:

700 MHz Digital Dividend (2008)2 700 MHz A Block (2014)3 700 MHz E Block (2008)4 PDV Sprint 900 MHz (2014) 1700 MHz AWS Spectrum Co. (2012) 1700 MHz AWS-3 Auction (2015)6 1900 MHz H Block (2014)7 600 MHz Incentive Auction (2017)1

$0.55

$0.885 current estimated value

1 GHz

slide-10
SLIDE 10

FCC J C Joint nt P Petition U Update

9

In September 2016,

2016, the F FCC C Chair irman c circula lated t to the C Commis issio ioners’ o

  • ffices a

an i item f for vote, w whic ich w we b beli lieve t to be a a draft N Notic ice o

  • f Inquir

iry, or NOI

The i

intent o

  • f an NOI i

is generally lly t to gather m more i informatio ion f for the r

  • record. T

This partic icula lar NOI i I is likely ly s seekin ing i g informatio ion o

  • n issues a

and s solutio ions r raised i in the c comments a and f filed expar arte l e let etter ers

Our c

current i item r remain ins o

  • n circula

latio ion and i is pendin ing actio ion b by the f full C Commis issio ion

Representativ

ives o

  • f pdvWir

irele less h have met w with t the C Chair irman’s o

  • ffice and t

the offices o

  • f the
  • ther C

Commissio ioners r regardin ing o g our Petit itio ion and its m merit its

We have a

e also m met with i inter eres ested parties es t to demonstrate t e the f e feasibility o

  • f worki

king t toget ether er and h have signed ed l licen ense t e tran ansfer er a agreem eemen ents

The item

em h has n no def efined ed t timel eline a e and depends o

  • n the af

e affirmative v e vote of majo jority o y of the e Commis issio

  • ioners. I

Issuance o

  • f an N

NOI w I would ld b be a step i in the process w with o

  • ur g

goal b being a an eventual F l FCC i issuance o

  • f a Notic

ice o

  • f Proposed R

Rule lemakin ing, o

  • r NRPM
slide-11
SLIDE 11

Strat rategic egic O Opport

  • rtun

unit ities es

10

►Evaluating opportunities to leverage our spectrum for enterprise use cases. Examples include:

  • Exploring leveraging existing narrowband or

wideband technologies to provide improved communications, quality and performance to businesses, that can migrate to broadband with the approval of our Joint Petition

  • Evaluating emerging business-to-business and

Industrial Internet of Things (IoT) solutions, complimentary to our existing infrastructure

slide-12
SLIDE 12

Summ mming i it U t Up

11

Prop

  • pos
  • sed E

Evol

  • lution
  • n t

to

  • Private C

Carri rrier B r Broa

  • adband

DispatchPlus

  • Dedicated network
  • National footprint
  • High-value suite of

services

  • 6.8M addressable

market / top 20 markets2

Joint Petition

  • Petition FCC
  • Realign spectrum

in the 900 MHz band

  • Repurpose 6 MHz

for broadband

Strategic Opportunities

  • Broadband

capabilities

  • Private network

dedicated to enterprise and CI

  • Acquire additional

spectrum or spectrum usage rights

1Figure is based on the initial purchase price for the 900 MHz spectrum we acquired from Sprint and the 2014 population figures for the

relevant geographic areas covered by that spectrum

2Based on Company analysis and estimates, we expect that the 20 major metropolitan areas we select will include most, but not all, or

the 20 largest MSAs

3Assumes FCC approves Petition

slide-13
SLIDE 13

Key F Fina nancials S Snapshot

12

Balance sheet

($ millions)

As of March 31, 2017 Cash $124.1 Intangible Assets 104.7 Accounts Payable and Accrued Expenses 3.4 Noncurrent Deferred Revenue 5.0 Stockholders' Equity Additional Paid-in Capital 330.6 Accumulated Deficit (102.7) Shareholders' Equity $227.9