Full Year Results 2016 8 March 2017 INMARSAT > Preliminary - PDF document

INMARSAT > Preliminary Results 2016 Full Year Results 2016 8 March 2017

INMARSAT > Preliminary Results 2016 Business Review 2016 & Key Priorities for 2017 Rupert Pearce Chief Executive Officer

Sound core business and material growth potential Strong L-band franchise Growing additional Broadband capability $800m revenue per annum I-5 F-1, F-2 and F-3 satellites Launched 8 satellites currently in orbit I-5 F-4 satellite launch expected in Q2 2017 One of only two global L-band satellite operators European Aviation Network to be operational in H2 2017 Long- term underpin to “digital society” opportunities Commercial In-Flight Connectivity remains major long term opportunity in Aviation Substantial spectrum assets globally Maritime supported by significant Fleet Xpress Ligado distributor commitments Established distribution capability Government supported by long term relationships with major distributors 3

2016 Operational Highlights Continuing to deliver the foundations for long-term growth ˃ 2016 Group revenue up 4.3% to $1,329.0m, with EBITDA, up 9.5% to $794.8m ˃ GX gaining market traction, generating revenue of $78.5m in 2016 ˃ Strong performance in Government, both US and RoW, despite budgetary constraints ˃ Further growth in Aviation and foundations being laid for IFC opportunity ˃ Maritime markets remained challenging but material commitments to Fleet Xpress from major distribution partners ˃ Weaker revenue in Enterprise due to continued depression in Oil & Gas and decline in legacy products ˃ New Ligado structure in place – stability through 2018 ˃ $1.05bn of new capital raised, further lengthening tenure of Group’s debt profile – debt levels remain within gearing policy 4

2016 Operational Highlights By Business Unit Maritime Government Aviation Enterprise Market remains challenging Underlying environment remains Core business growing - Key markets under pressure, in difficult 16,000 aircraft installed for particular Oil & Gas VSAT growing strongly BGA & SOS GX take-up by USG - Boeing ToP Aid & Media continue to be First successful installations Key mandates won competitive of Fleet Xpress CSSC contract won in IFC, with 3,000 aircraft in M2M seeing some growth Major strategic distribution Operational tempo stabilising pipeline deals signed Slow growth in GSPS Innovation Building internal capability FleetBroadband revenues growing On-going focus on new Diversification Continued development slowly with ARPU gains opportunity areas of EAN infrastructure Internationalisation Launch of Fleet One CAP performance 5

Q4 2016 Operational Highlights Performance ahead of expectations ˃ Group revenue up 7.0% to $358.1m, ˃ Maritime supported by VSAT revenue with EBITDA up 9.2% to $221.8m growth and ARPU accretion in FleetBroadband, but offset by continued ˃ Significant impact from GX in Government, revenue decline from legacy products reflecting take-or-pay contract with primary channel partner and a one-off contract ˃ Initial GX installation revenue generated in IFC, with core BGA/SOS business continuing ˃ Short term revenue pressure in Enterprise, to grow due to weak demand in challenging markets & legacy product decline 6

Maritime The market opportunity Maritime satcoms market expected to nearly double in next 8 years Wholesale airtime revenue forecast by technology Future milestones: 1,200 Total MSS Total VSAT Inmarsat share Column1 Major distribution 1,000 agreements • VSAT CAGR 2017-20: 17% commitments 800 • MSS CAGR 2017-20: 3% delivered ($m) 600 Fleet Xpress transition 400 CAP programme 200 established - Fleet One 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 roll-out Inmarsat well positioned to maintain strong market share in L-band Source: Euroconsult and drive market share growth in VSAT 7

Aviation: The market opportunity – BGA & SOS Continued growth expected in both legacy sectors Business and General Aviation market: Safety & Operations Services Future Number of connected business aircraft in 2025 vs 2015 milestones: Europe ˃ Cockpit satcom market to grow North America CAGR: 12% CAGR: 4% from $400m to $1b over next SB-Safety 5,400 20 years established 22,700 1,800 ˃ Key market areas include Successful aircraft health monitoring ($3b) delivery of Jet 2,700 15,700 and flight ops/planning ($2b) Xpress 1,400 800 IRIS ˃ Inmarsat SB-Safety is the only 600 opportunity Latin America product to meet performance 1,800 CAGR: 7% and security standards set by realised the industry Middle East Asia Pacific 900 and Africa CAGR: 14% CAGR: 9% Source: Euroconsult 2016 8

Aviation The market opportunity – IFC In-flight connectivity remains a significant opportunity IFC revenues 2 2016 to 2025 Connected aircraft 1 Future milestones: 25 100 2015 base ~20k aircraft 2025: $4-6b Retrofit @ $300k ARPA IFC 20 80 Linefit Aircraft penetration (%) deals signed and Connected aircraft (k) Aircraft penetration ~20k aircraft installed 15 60 @ $200k ARPA 10 40 EAN build completed & 5 20 licenses obtained 2016 ~6k aircraft $0.7b @ $120k ARPA 0 0 2015 2020 2025 Sources: Notes: 1. IFC in commercial aviation (excludes business and general aviation and cargo); Valour 2016; Euroconsult 2016; Inmarsat estimates 9 2. Connectivity (airtime) revenues and ISP services, including both airlines and passenger spend; excludes hardware and apps;

Government The market opportunity Mobile HTS government satcoms spend expected to continue to grow Government funded in-service terminals by region Future milestones: North America Latin America Europe Middle East & Africa Asia Pacific 1,400 CSSC delivered In-Service Terminals (000s) 1,200 ToP contract 1,000 Further major 800 contracts won 600 New markets / 400 verticals 200 Supporting WGS 0 & MUOS 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: NSR 10

Enterprise The market opportunity Short term environment is challenging, but medium to long term outlook remains strong Future milestones: IoT opportunities grasped: Agritech Fintech Energy Media Connected car Smart agriculture Smart cities Oil & Gas Transportation Aid & Mining & recovery Development Construction 11

Key priorities for 2017 First steps off new growth foundations Maritime Government Asset base Drive FleetBroadband ARPU Internationalise, diversify and Maintain high service and and value, progress Fleet Xpress innovate to deliver further value to connectivity levels for L-band and migration from Xpress Link, scale key government customers. Deliver GX customers, deliver successful Fleet Xpress and Fleet One, CAP WGS and MUOS interoperability launches of S-band and I-5 F4 programme satellites in Q2 2017 Aviation Enterprise Organisational infrastructure Continue to grow BGA & SOS Focus on M2M, innovation and Continue investment in global services. Drive installation rates sectorisation. Grow new market functional transformation and win further customers in IFC. segments, address challenging programmes to drive efficiency Ensure EAN is operational during markets and escalate planning for and effectiveness H2 2017 medium to long term opportunities 12

INMARSAT > Preliminary Results 2016 Financial Review Tony Bates Chief Financial Officer

Group Income statement $m 2016 2015 Change Q4 2016 Q4 2015 Change Revenue 1,329.0 1,274.1 54.9 358.1 334.8 23.3 Operating costs (534.2) (548.1) 13.9 (136.3) (131.7) (4.6) EBITDA 794.8 726.0 68.8 221.8 203.1 18.7 Depreciation & Amortisation (349.4) (311.2) (38.2) (87.1) (85.1) (2.0) Other 1.7 11.6 (9.9) 0.4 0.6 (0.2) Operating profit 447.1 426.4 20.7 135.1 118.6 16.5 Net financing costs (147.9) (88.4) (59.5) (42.8) (30.7) (12.1) Profit before tax 299.2 338.0 (38.8) 92.3 87.9 4.4 Tax (55.8) (56.0) 0.2 (25.2) 0.3 (25.5) Profit for the period 243.4 282.0 (38.6) 67.1 88.2 (21.1) Free cash flow 274.5 132.4 142.1 (14.4) (77.2) 62.8 Basic EPS (cents) 54.21 62.65 (13.5%) DPS (cents) 53.96 51.39 5.0% 14

Revenue & EBITDA $m 2016 2015 Change % Q4 2016 Q4 2015 Change % Wholesale MSS revenue 904.5 832.8 71.7 8.6% 245.9 215.3 30.6 14.2% Other revenue & terminals 305.1 352.7 (47.6) (13.5%) 81.7 83.8 (2.1) (2.5%) Ligado 119.4 88.6 30.8 34.8% 30.5 35.7 (5.2) (14.6%) Total Revenue 1,329.0 1,274.1 54.9 4.3% 358.1 334.8 23.3 7.0% EBITDA ex Ligado 675.4 637.4 38.0 6.0% 191.3 167.4 23.9 14.3% Ligado 119.4 88.6 30.8 34.8% 30.5 35.7 (5.2) (14.6%) Total EBITDA 794.8 726.0 68.8 9.5% 221.8 203.1 18.7 9.2% EBITDA margin ex LN 55.8% 53.8% 58.4% 56.0% EBITDA margin 59.8% 57.0% 61.9% 60.7% 2016 Revenues include $78.5m of mainly airtime GX revenues 15