Ovzon presentation 2018-05-23 AGENDA Ovzons offering Ovzons - PowerPoint PPT Presentation

Ovzon presentation 2018-05-23

AGENDA  Ovzon´s offering  Ovzon´s market  Financial position  Strategy and outlook

OVZON AT A GLANCE Ovzon is a next generation satellite service provider with a proven value proposition – combining high bandwidth satellite communication services with highly mobile terminals. UNIQUE END-TO-END SERVICE LEASED SATELLITES 4 KEY CUSTOMER GROUPS 5 GOVERNMENTS NGO’S MEDIA OTHER SALES, MSEK 3 OFFICES 12 YEARS OF BUSINESS 2014 – STOCKHOLM, SWE LAUNCH 209 201 – 2014 TAMPA, FLORIDA, US DEVELOPMENT BETHESTA, MARYLAND, US 112 2006 52 FOUNDED 2014 2015 2016 2017

EXPERIENCED MANAGEMENT TEAM AND ORGANIZATION Long and successful track record in developing and introducing disruptive satcom systems on the world market and building up global companies within the satcom industry

COMMUNICATION METHODS “Mobile” “Fixed” Satellite (Requires local infrastructure) 5G  Wireless communication methods  Terrestrial based communication such as Bluetooth, WiFi and  Satellite communication Description methods such as cable and fibre 3G/5G  Global coverage  Highly mobile Advantages  High bandwidth  Secure  Developed technologies ( From customer’s  Low cost per transmission  Not dependent on land based perspective) infrastructure  Low coverage and reach  Fixed, dependent on local Disadvantages  Coverage limited to populated infrastructure ( From customer’s areas  Expensive to launch  Not secure perspective)  Requires investment in local infrastructure

OVZON VALUE PROPOSITION  Ovzon enables a combination of the mobility of mobile satellite telephony and the broadband capacity of fixed satellite systems  Significantly higher speed and lower end-customer prices Time required to upload 1GB (approx.) TX Bandwidth 1min +20 MBPS FSS/Ka Ovzon Offering Intelsat, Eutelsat, SES Global (direct) New Ku Ka initiatives: GX, Ka-sat, EPIC 18min FSS 1h Maritime VSAT 2 MBPS 5h 0.5 MBPS FSS MSS (Data) SES SS Inmarsat, Thuraya 37h 64 KBPS MSS (Voice) Iridium, Globalstar, Thuraya, MSV, ACeS 238h 10 KBPS Mobility Fixed Transportable Larger Mobile Mobile/On-the-move

LARGE EXISTING MARKET OVZON’S ADDRESSABLE MARKET GLOBAL SATELLITE SERVICES REVENUE (1) USD Bn What is included? Size (1) CAGR (3) Addressable 140 127,7 127,4 Earth observation  Limited for relevance with 122,9 $2.0Bn 12.2% current offering 118,6 Remote sensing (2) 120 112,5 107,8 101,3 100  Customers will be attracted by MSS the potential of higher Mobile data and $3.6Bn 7.8% bandwidth communication to voice transmission a lower cost 80 FSS Transponder 60  Customers will be attracted by the potential of higher mobility agreements and $17.4Bn 2.5% to a lower cost managed network services 40 Consumer  Limited for relevance with 20 Satellite TV, radio $104.7Bn 3.9% current offering and broadband 0 2010 2011 2012 2013 2014 2015 2016 New market opportunities: Large portion of the market is currently not served or severely underserved:  Insufficient bandwidth  Lack of mobility  High costs 1) State of the Satellite Industry Report 2017, SIA (Satellite Industry Association) 2) Scanning of the Earth by satellite for the purpose of data collection (e.g. monitoring deforestation in certain areas 3) SIA 2017. 2010-2016 CAGR

CLEAR BENEFITS TO MANY POTENTIAL CUSTOMER GROUPS Commercial Government / NGO’s Media Land mobile aeronautics and Defence maritime Example customers  Ground/aerial  Mobile broadband  Communication on the  Aeronautic and maritime,  Real-time HDTV resolution from on-site fixed/mobile sensor communications in move passenger vessels, such communication emerging / disaster as airplanes, merchant reporting using laptop-  Mobile tracking situations, e.g. famine maritime, fishing sized or smaller  Use by single soldiers,  Fleet management terminals used by non- areas, refugee camps, on moving platforms,  Onboard data and voice etc.  Voice and data tech persons, e.g. Applications including tactical to provide "more" to reporters vehicles, vessels and  Network extension and passengers or leisure UASs (border control, resilience segment owners ISR, disaster relief)  Security backups Ovzon focus

KEY DIFFERENCES WHEN LEASING AND OWNING OUR SATELLITES Leased satellites First own satellite Regional coverage Cover 1/3 of Earth Coverage (Parts of Middle East, Africa & Europe) Up to 10 Mbps/40 Mbps Up to 80 Mbps/100 Mbps Bandwidth (up/down) (up/down) T5 terminal, laptop sized From 3.5” terminals Mobility By running service from an Ovzon satellite even higher bandwidth and Expected available bandwidth Expected available bandwidth Capacity mobility is possible ~1 GHz ~2 GHz

VALIDATING OVZON’S VALUE PROPOSITION Ovzon is uniquely positioned to benefit from the explosive growth in mobile broadband traffic. Value proposition Core satellite and Market potential Pricing and benefits terminal technology and demand • Strong demand for • >50 terminals delivered • Clear and large interest • Limited pressure service that offers high gauged from key experienced since x • Working with bandwidth and high customer groups launch customers to develop mobility next generation • Customers already • Both wholesale and per • Service seen as a terminals asking for capacity on minute models tested complete game Ovzon 3 successfully • Satellite build based on changer flight proven technology

FINANCIAL TRACK-RECORD THAT PROVIDES VALIDITY OF VALUE PROPOSITION SALES (SEKm) Adj. EBITDA (SEKm) and margin (%) 19% 19% 250 50 40,8 37,7 209,2 201,1 4% 200 25 150 5,0 112,0 0 100 51,7 -25 50 -39,0 0 -50 2014 2015 2016 2017 2014 2015 2016 2017

STRONG BOARD OF DIRECTORS IN PLACE FOLLOWING IPO Lennart Hällkvist Kennet Lejnell Patrik Tigerschiöld Nicklas Paulson Magnus René Peter Näslund Current position: Current position: Current position: Current position: Current position: Current position: Chairman and COO Board member and Chairman of Bure CEO of Investment Former CEO of Partner, DLA Piper • • • • • • of Ovzon CTO of Ovzon Equity, Mycronic and AB Öresund Arcam AB Cavotec • Board member of Bilia AB and Bulten AB Selected experience: Selected experience: Selected experience: Selected experience: Selected experience: Selected experience: • CEO of Nordic • CTO and CSO of • CEO of Bure Equity • Investment banking • Vice-president of • Board member of Satellite AB and Swe-Dish Satellite AB at Carnegie Hogia and Vice- Swe-dish Satellite various management Systems Investment Bank president och System • Board member of positions at Ericsson Mycronic Stockholm University 13

KEY INVESTMENT HIGHLIGHTS Positive market outlook x • Large existing market Solid and favorable market drivers • Protected by significant intangible assets • Significant patent portfolio x • Global coverage assured by Ovzon’s six orbital positions and frequency licenses Superior value proposition: Satellite communication with high mobility and bandwidth x • Combining the benefits of high bandwidth and mobility Clear benefits to many potential customer groups • • Seriously disrupting the satellite market Management team with deep experience in driving new business models, innovation, disruptive x technologies and technical and business expertise • Experienced team and organization Proven technology and business model • Long-term strategy in place • Service with revenues of c. SEK 200m and EBITDA x margin of approx. 25% and growing significantly • Validated technology, market potential, price levels and customer demand

Thank you!