GILAT SATELLITE NETWORKS COMPANY OVERVIEW November 2019 NASDAQ, TASE: GILT
FORWARD LOOKING STATEMENTS DISCLAIMER Certain statements made in this presentation that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words "estimate", "project", "intend", "expect", "believe" and similar expressions are intended to identify forward- looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of Gilat to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to Gilat's products, inability to obtain financing and/or timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat's products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key OEM partners, inability to attract and retain qualified personnel, inability to protect the Company's proprietary technology and risks associated with Gilat's international operations and its location in Israel. Gilat undertakes no obligation to update or revise any forward- looking statements for any reason. For additional information regarding these and other risks and uncertainties associated with Gilat's business, reference is made to Gilat's reports filed from time to time with the Securities and Exchange Commission. Unaudited/Non-GAAP Financial Measures This presentation includes financial data that is not audited and financial data that was not prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Non-GAAP financial measures appearing in this presentation consist of GAAP financial measures adjusted to exclude, non cash share-based compensation expenses, impairment of goodwill and long lived assets, amortization of acquired intangible assets, restructuring, trade secrets litigation expenses, tax expenses under amnesty program, deferred tax benefit that was recorded for the first time and other non-recurring expenses and net income or loss from discontinued operations. Gilat believes these non- GAAP financial measures provide consistent and comparable measures to help investors understand Gilat ’ s current and future operating performance. However, our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read in conjunction with Gilat ’ s consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. 2 | Proprietary and Confidential
GILAT – BOUNDLESS COMMUNICATIONS 4G/5G 2G/3G Air Sea Land Consumer Enterprise MOBILE MOBILITY BROADBAND GLOBAL PRESENCE MOST ADVANCED TECHNOLOGY END-TO-END SERVICE 20 sales offices Terrestrial-grade user experience Most stringent service levels Established 1987 NASDAQ / TASE: GILT ~900 employees 3 | Proprietary and Confidential
GLOBAL FOOTPRINT – EXPANDING A DIVERSE CUSTOMER BASE SATELLITE OPERATORS CARRIERS & SERVICE PROVIDERS SYSTEM INTEGRATORS GOVERNMENTS 300+ Customers 500+ Networks 90+ Countries 4 | Proprietary and Confidential
ABUNDANCE CAPACITY – GEO + LEO/MEO Global HTS Bandwidth Supply, Demand and Price per Mbps $/Mbps/Month Gbps 1,000 1,000 20,000 10,000 900 900 9,000 18,000 ~16 times today 800 800 8,000 16,000 700 700 7,000 14,000 ABUNDANCE 600 12,000 600 6,000 OF CAPACITY 500 500 10,000 5,000 UNLOCKS 400 400 8,000 4,000 NEW MARKETS 300 6,000 300 3,000 200 200 2,000 4,000 100 100 2,000 1,000 - 0 - 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 GEO-HTS Global Demand GEO-HTS Global Supply GEO-HTS Global Demand GEO-HTS Global Supply Weighted Avarage GEO-HTS Price Non-GEO HTS Global Supply Weighted Avarage GEO-HTS Price Source: Euroconsult, NSR, 2017 5 | Proprietary and Confidential
INTERNET IS BECOMING A “ BIRTH RIGHT ” WE ALL WANT BROADBAND Everywhere, Plentiful, Affordable Everywhere. Anytime. Affordable. 6 | Proprietary and Confidential
ACCELERATING CONNECTIVITY – GROWTH AREAS Mobile Mobility Broadband Cellular Backhaul, Broadband to the In the Air, at Sea, on the Ground Network Resilience, Public Safety Unserved and Underserved 7 | Proprietary and Confidential
MOBILE 8 | Proprietary and Confidential 8 | Proprietary and Confidential
LEADING THE FAST GROWING 4G/LTE SATELLITE BACKHAUL MARKET SATELLITE BACKHAUL MARKET “ For the first time, Gilat gets to the pole “ Service , Equipment & Capacity position in shipment Source: NSR, April 2019 $3,790M (2028) $820M “ Being able to differentiate with a compelling managed service offer is key “ (2018) to gain business and defend healthy margins Source: NSR, April 2019 Source: NSR, April 2019 Market Leader With 35% of Market Share in Modem Shipments Source: NSR, April 2019 9 | Proprietary and Confidential
WORLD ’ S FASTEST BROADBAND FOR LTE BACKHAUL 10 | Proprietary and Confidential 10 | Proprietary and Confidential
METRO AREA - A LIVE EXMPLE 11 | Proprietary and Confidential 11 | Proprietary and Confidential
MOBILITY 12 | Proprietary and Confidential 12 | Proprietary and Confidential
MOBILITY – SUPERIOR PASSENGER EXPERIENCE DRIVES DEMAND Satellite Broadband Connected Aircrafts Commercial Aircrafts Business Jet Aircrafts 27,800 5,300 (2028) (2028) 7,200 ~850 (2018) (2018) Source: NSR, April 2019 Source: NSR, April 2019 13 | Proprietary and Confidential
Leading Performance Solutions for All In-Flight Connectivity Modules 400Mbps Aero Antennas Modem Transceivers 14 | Proprietary and Confidential 14 | Proprietary and Confidential
GILAT ENABLES THE LARGEST IFC NETWORK The largest IFC provider with >2,450 aircrafts World ’ s fastest speed ~1,500 commercial aircraft installed and activated with satellite In-Flight connectivity More then 1300 with Gilat Aero modem +850 backlog Sep 2019 The largest single network Global Coverage Over 25 Satellites 16 Teleports Free Wi-Fi Trend Represent Significant Opportunity for Gilat 15 | Proprietary and Confidential
AERO ANTENNAS - NEXT GROWTH ENGINE Global Aero Flat Panel Antenna (Cumulative) TMA Business Jet Aviation First project – aero parabolic antenna “ The aero vertical will Generate $8.4B in cumulative equipment revenues, with Strategic agreement with Tier-1 aviation ~29,000 units forecasted to be shipped, by service provider 2028 ” Expansion into business aviation Source: NSR, Feb 2019 Best in class product 16 | Proprietary and Confidential
ESA AERO ANTENNAS - NEXT GEN ANTENNA Horizon 2020 - Joint Development Project An established player in the Phased Array Antenna (PAA) for the defense (UAV) market Developing an ESA (Electronically Steered Antenna) Won a Technology Demonstrator project with Airbus ESA Represents a Significant Growth Engine to Gilat Mobility Business 17 | Proprietary and Confidential
BROADBAND 18 | Proprietary and Confidential
LEADING PROVIDER FOR GROUND BROADBAND NETWORKS PROGRAMS Broadband Network HTS & VHTS Peru – PRONATEL (FITEL) Bridging the digital divide projects Connecting communities and A $2B+ program to build individuals to the world via terrestrial broadband networks across Peru Innovating to deliver plentiful, 14 Regional Projects awarded affordable Consumer and so far – 6 to Gilat (~$548M) Enterprise solutions o ~$333M construction revenue o ~$215M in operational revenue over ten years Target: Recurring revenues >$50M / year, profitable, starting 2020 19 | Proprietary and Confidential
NGSO & 5G 20 | Proprietary and Confidential
NGSO IS MATERIALIZING CONSTELLATIONS ARE BECOMING Opportunity in Both Baseband and ESA REALITY Several constellations in various stages: SpaceX, OneWeb, Telesat, mPower and GEO 35,786 km Amazon Successfully demonstrated: MEO o IFC demo – Telesat/GEE 2,000-10,000 km o Maritime connectivity demo – SES/O3B ~1.2 Tbps Telesat/Tier-1 Maritime service 27 Satellites LEO 500-2,000 km provider o First ever successful demonstration of 5G connectivity – Telesat SpaceX Amazon Telesat OneWeb ~ 23.7 Tbps & ~9 Tbps ~4.5 Tbps 4425 Satellites others … 512 Satellites 600 Satellites HAPs 10-50 km Next Growth Engine 21 | Proprietary and Confidential
PAVING THE PATH TO 5G PAVING THE PATH TO 5G Innovative High Speeds over wideband Speed Gbps technology Order of Low magnitude Leverage our reduction in NGSO baseband Latency latency Utilize Satellite ground Flexible SDN/NFV, segment Network Cloud, Edge integration into computing & Architecture 5G eco-system Network Slicing Significant Investment in R&D 5G Maintaining Gilat ’ s 4G Superiority on the Path to 5G 22 | Proprietary and Confidential
FINANCIAL INDICATORS HIGHLIGHTS 23 | Proprietary and Confidential 23 | Proprietary and Confidential
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