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

UNIQUE END-TO-END SERVICE GOVERNMENTS NGO’S MEDIA OTHER 3 OFFICES STOCKHOLM, SWE TAMPA, FLORIDA, US BETHESTA, MARYLAND, US 4 KEY CUSTOMER GROUPS LEASED SATELLITES

5

Ovzon is a next generation satellite service provider with a proven value proposition – combining high bandwidth satellite communication services with highly mobile terminals.

12 YEARS OF BUSINESS 2006

FOUNDED

–2014

DEVELOPMENT

2014–

LAUNCH

SALES, MSEK

52 112 209 201 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”

(Requires local infrastructure)

“Fixed” Satellite

Description

• Wireless communication methods

such as Bluetooth, WiFi and 3G/5G

• Terrestrial based communication

methods such as cable and fibre

• Satellite communication

Advantages

(From customer’s perspective)  Highly mobile  Developed technologies  High bandwidth  Low cost per transmission  Global coverage  Secure  Not dependent on land based infrastructure

Disadvantages

(From customer’s perspective)  Low coverage and reach  Coverage limited to populated areas  Requires investment in local infrastructure  Fixed, dependent on local infrastructure  Not secure  Expensive to launch

5G

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

Transportable Larger Mobile Mobile/On-the-move Fixed 10 KBPS 64 KBPS 0.5 MBPS 2 MBPS +20 MBPS

TX Bandwidth Mobility

Ovzon Offering

FSS Maritime VSAT FSS SES SS MSS (Data) Inmarsat, Thuraya MSS (Voice) Iridium, Globalstar, Thuraya, MSV, ACeS FSS/Ka Intelsat, Eutelsat, SES Global (direct) New Ku Ka initiatives: GX, Ka-sat, EPIC 1min 18min 1h 5h 37h 238h Time required to upload 1GB (approx.)

LARGE EXISTING MARKET

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

What is included? Size(1) Addressable USD Bn CAGR(3)

New market opportunities: Large portion of the market is currently not served or severely underserved:  Insufficient bandwidth  Lack of mobility  High costs

Earth observation Remote sensing(2)

• Limited for relevance with

current offering $2.0Bn 12.2%

101,3 107,8 112,5 118,6 122,9 127,4 127,7 20 40 60 80 100 120 140 2010 2011 2012 2013 2014 2015 2016 Consumer Satellite TV, radio and broadband

$104.7Bn

• Limited for relevance with

current offering 3.9%

FSS Transponder agreements and managed network services

$17.4Bn

• Customers will be attracted by

the potential of higher mobility to a lower cost 2.5%

MSS Mobile data and voice transmission

$3.6Bn

• Customers will be attracted by

the potential of higher bandwidth communication to a lower cost 7.8%

GLOBAL SATELLITE SERVICES REVENUE(1) OVZON’S ADDRESSABLE MARKET

CLEAR BENEFITS TO MANY POTENTIAL CUSTOMER GROUPS

Applications Ovzon focus Example customers Government / Defence

• Ground/aerial

fixed/mobile sensor communication

• Use by single soldiers,
• n moving platforms,

including tactical vehicles, vessels and UASs (border control, ISR, disaster relief)

• Security backups

NGO’s

• Mobile broadband

communications in emerging / disaster situations, e.g. famine areas, refugee camps, etc.

• Network extension and

resilience

Commercial aeronautics and maritime

• Aeronautic and maritime,

passenger vessels, such as airplanes, merchant maritime, fishing

• Onboard data and voice

to provide "more" to passengers or leisure segment owners

Land mobile

• Communication on the

move

• Mobile tracking
• Fleet management
• Voice and data

Media

• Real-time HDTV

resolution from on-site reporting using laptop- sized or smaller terminals used by non- tech persons, e.g. reporters

KEY DIFFERENCES WHEN LEASING AND OWNING OUR SATELLITES

First own satellite

Mobility T5 terminal, laptop sized From 3.5” terminals Capacity Expected available bandwidth ~1 GHz Expected available bandwidth ~2 GHz Coverage Regional coverage (Parts of Middle East, Africa & Europe) Cover 1/3 of Earth Bandwidth Up to 10 Mbps/40 Mbps (up/down) Up to 80 Mbps/100 Mbps (up/down)

Leased satellites

By running service from an Ovzon satellite even higher bandwidth and mobility is possible

VALIDATING OVZON’S VALUE PROPOSITION

x

• Strong demand for

service that offers high bandwidth and high mobility

• Service seen as a

complete game changer

• >50 terminals delivered
• Working with

customers to develop next generation terminals

• Satellite build based on

flight proven technology

• Clear and large interest

gauged from key customer groups

• Customers already

asking for capacity on Ovzon 3

• Limited pressure

experienced since launch

• Both wholesale and per

minute models tested successfully

Value proposition and benefits Core satellite and terminal technology Market potential and demand Pricing

Ovzon is uniquely positioned to benefit from the explosive growth in mobile broadband traffic.

FINANCIAL TRACK-RECORD THAT PROVIDES VALIDITY OF VALUE PROPOSITION

51,7 112,0 209,2 201,1 50 100 150 200 250 2014 2015 2016 2017

SALES (SEKm)

• 39,0

5,0 40,8 37,7

• 50
• 25

25 50 2014 2015 2016 2017

• Adj. EBITDA (SEKm) and margin (%)

4% 19% 19%

STRONG BOARD OF DIRECTORS IN PLACE FOLLOWING IPO

13

Lennart Hällkvist

Current position:

• Chairman and COO
• f Ovzon

Selected experience:

• CEO of Nordic

Satellite AB and various management positions at Ericsson

Kennet Lejnell

Current position:

• Board member and

CTO of Ovzon Selected experience:

• CTO and CSO of

Swe-Dish Satellite Systems

Patrik Tigerschiöld

Current position:

• Chairman of Bure

Equity, Mycronic and Cavotec Selected experience:

• CEO of Bure Equity

AB

• Board member of

Stockholm University

Nicklas Paulson

Current position:

• CEO of Investment

AB Öresund

• Board member of

Bilia AB and Bulten AB Selected experience:

• Investment banking

at Carnegie Investment Bank

Magnus René

Current position:

• Former CEO of

Arcam AB Selected experience:

• Vice-president of

Hogia and Vice- president och Mycronic Current position:

• Partner, DLA Piper

Peter Näslund

Selected experience:

• Board member of

Swe-dish Satellite System

x x x x

KEY INVESTMENT HIGHLIGHTS

Positive market outlook

• Large existing market
• Solid and favorable market drivers

Superior value proposition: Satellite communication with high mobility and bandwidth

• Combining the benefits of high bandwidth and mobility
• Clear benefits to many potential customer groups
• Seriously disrupting the satellite market

Proven technology and business model

• Service with revenues of c. SEK 200m and EBITDA

margin of approx. 25% and growing significantly

• Validated technology, market potential, price levels

and customer demand Management team with deep experience in driving new business models, innovation, disruptive technologies and technical and business expertise

• Experienced team and organization
• Long-term strategy in place

x

Protected by significant intangible assets

• Significant patent portfolio
• Global coverage assured by Ovzon’s six orbital

positions and frequency licenses

Thank you!