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Filed Pursuant to Rule 433
Registration No. 333-195680
February 22, 2016
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Gilat Satellite Networks
Corporate Presentation
Corporate Presentation
February, 2016
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.
We undertake 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.
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.
We undertake 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.
2
Gilat - Boundless Communications
SOTM
Commercial
Rural
Broadband
Broadband
E2E Services
Cellular
Backhaul
Backhaul
Enterprise
& Consumer
broadband
broadband
Improved
Profitability
3
Providing Full Network Management and Equipment for SATCOM
• Driving the satellite industry since 1987
• More than 1.2million terminals globally
• 2016 expected revenues: $290M-$310M
• Global presence :
Gilat at a Glance
R&D Center
NOC
Sales office
~1,000 Employees Worldwide
5 R&D Centers
4 NOCs (Network Operation Centers)
20 Sales Offices
90 Countries
4 NOCs (Network Operation Centers)
20 Sales Offices
90 Countries
500 + active networks
Diverse Customer Base and Partners
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Satellite Companies
Telcos / MNOs
Satcom Operators and ISPs
System integrators
Governments
Key Market Growth Drivers
• Satellite on-the-Move
– In-Flight Connectivity (IFC)
– Maritime and Trains
• Broadband (BB) Demand in Rural areas
– Increasing demand in rural developing countries
(FB investment in BB4Africa)
(FB investment in BB4Africa)
• Cellular Backhaul
– Role out of LTE,3G and small cell in rural areas
• HTS (High Throughput Satellite)
– Reduced space segment cost
– The new growth prospect for the satellite industry
– Need for a strong network partner
INTERNET EVERYWHERE, ANYTIME
Broadband Satellite Market Service & CPE
Revenues by Region
Revenues by Region
Revenue to be added in the next 10 years to
the combined CPE and Service revenues of 2014:
the combined CPE and Service revenues of 2014:
• Satellite broadband access: ~$8.4 Billion
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The HTS revolution - Enabling more applications
More capacity
More markets
Access to more applications
Enterprise
Telcos
Mobility
Consumer
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Satellite Operators are looking for strategic partners
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Vertical integration
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Enterprise
Telcos
Rural Experience
Gilat’s Main Assets
• Cutting-edge Technology
– Best network management
(X- Architecture)
(X- Architecture)
– Best-in-class terminals for all applications
(IFC, Maritime, Trains, Cellular Backhaul,
Enterprise, Consumers)
(IFC, Maritime, Trains, Cellular Backhaul,
Enterprise, Consumers)
• End-to-end (E2E) Services Capabilities
– NBN managed services
– Colombia and Peru E2E vast experience
• Global presence and high reputation
SkyEdge II-c Capricorn
Dual band ER-6000A
Aerostream
Transceiver (Ka/Ku)
Transceiver (Ka/Ku)
Full Terminal
Growth Drivers
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Growth Drivers
• Mobility, mainly IFC
• China
• Broadband Internet in Rural Areas
• Cellular Backhaul
• HTS
• End-to-End Services
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Mobility - Mainly IFC
• Current activity: Defense and Land Mobile
• Main growth driver: In-Flight Connectivity (IFC)
• Potential growth drivers: Trains, Maritime
• Future applications for breakthrough technology: Phased Array
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In-Flight Connectivity
• Market forecasted to grow and generate $3.2 B in
retail revenues by the end of 2024 (Source: NSR)
retail revenues by the end of 2024 (Source: NSR)
• Wavestream the “de facto” standard transceiver
for IFC
for IFC
• Breakthrough technology (200 Mbps and KUKA)
• A contract with a major satellite BB provider -
Dual-band antenna development project
Dual-band antenna development project
• PAA development project for System integrator
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China
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Major Breakthrough in 2015:
• HTS in China = Gilat
o China Satcom
o Synertone
• X Architecture network for multiple
applications. (fix, IFC, Trains,
Maritime)
applications. (fix, IFC, Trains,
Maritime)
• A Partner of Choice of CRRC
Broadband Internet in Rural Areas
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• Markets & Applications:
Developing countries, Broadband and communications coverage
Developing countries, Broadband and communications coverage
• Driving Growth: Bridging the digital divide
• Customers: Governments, ISPs, NGOs
• Ongoing long term projects: Fitel Peru and alike
Cellular Backhaul for Telcos
• Enable MNOs to connect to LTE and 3G network via satellite
• Super-fast LTE Backhaul made possible with SkyEdge II-c Capricorn:
200Mbps - the world’s fastest TDMA VSAT
200Mbps - the world’s fastest TDMA VSAT
• Unique added value proposition to MNOs: “Rapid deployment of LTE
in suburbs to capture market share”
in suburbs to capture market share”
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Partner of Choice of HTS Providers
• Need for a key partner
– For all the beams
– For all the applications (fix, IFC, etc.)
• Providing differentiated customer experience
via end-to-end solutions
via end-to-end solutions
• Gilat is uniquely positioned for HTS
• Positive momentum
End-to-End Services for Profitable Growth
• Adding more services to our offering
• Provide complete turnkey solutions
• Increase value for customers
• Long term relationships
• Initial focus on Telcos
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Financial Indicators
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Quarterly Financial Indicators
US$ millions
US$ millions
Revenues
EBITDA
Non GAAP
Operating Income (loss)
* Adjustments reflect the effect of non-cash stock based compensation as per ASC 718, amortization of intangible assets related to shares
acquisition transactions, impairments, restructuring costs and net income (loss) from discontinued operations.
acquisition transactions, impairments, restructuring costs and net income (loss) from discontinued operations.
Quarterly Profit and Loss Highlights - Non GAAP*
US$ millions, except per share data
US$ millions, except per share data
Annual Financial Indicators
US$ millions
US$ millions
EBITDA
Non GAAP
2016 Management Objectives:
Revenues: $290M - $310M
EBITDA: $18M - $24M
(4.2)
* Adjustments reflect the effect of non-cash stock based compensation as per ASC 718, amortization of intangible assets related to shares
acquisition transactions, impairments, restructuring costs and net income (loss) from discontinued operations.
acquisition transactions, impairments, restructuring costs and net income (loss) from discontinued operations.
Profit and Loss Highlights - Non GAAP*
US$ millions, except per share data
US$ millions, except per share data
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2014
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2015
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Revenues
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235.1
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197.5
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Gross Profit
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88.7
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59.2
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Gross Margin
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38%
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30%
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R&D net
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24.7
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22.0
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S&M
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31.1
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23.7
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G&A
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19.7
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17.7
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Operating Income (loss)
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13.1
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(4.2)
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Net income (loss)
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7.4
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(12.6)
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Diluted EPS
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0.17
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(0.29)
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EBITDA
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23.4
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5.3
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December 31,
2015
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September 30,
2015
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December 31,
2014
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Cash Balances *
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120.9
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88.4
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53.5
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Total Assets
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370.8
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343.9
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364.9
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Total Debt
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26.0
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26.2
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30.9
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Shareholders’ equity
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178.1
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183.2
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225.1
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Balance Sheet Highlights
US$ millions, except per share data
US$ millions, except per share data
* Including cash and cash equivalents, restricted cash and net of short term bank credits.
Questions & Answers
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Gilat - A Partner of Choice
q Driving unique advantage in the growing Airborne market, leveraging the new dual band
Ka/Ku terminal, our fastest air modem, as well as our uniquely developed Phased Array
antennas
Ka/Ku terminal, our fastest air modem, as well as our uniquely developed Phased Array
antennas
q Leveraging our breakthrough into China to a multi application fast profitable growth
q Providing solutions to rural customers building on Gilat’s proven experience in
delivering complex BB Internet solutions in Rural areas
delivering complex BB Internet solutions in Rural areas
q Driving forward our unique , fastest Modem for LTE Cellular Backhaul
q Leveraging Gilat’s leading technology and breadth of services to deploy and operate
the ground segment in a multi-beam, multi applications HTS environment
the ground segment in a multi-beam, multi applications HTS environment
q Driving value to customers through SLA based turnkey managed services offering,
including space segment, NOC operations; field support; Installations; network
planning; OSS/BSS.
including space segment, NOC operations; field support; Installations; network
planning; OSS/BSS.
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Thank You
We have filed a registration statement with the Securities and Exchange Commission, or SEC, for the offering to which this communication relates. Before you invest, you should read the registration statement and base prospectus dated May 9, 2014 and the prospectus supplement dated February 18, 2016 and the other documents that we have filed with the SEC for more complete information about us and this offering. You may get these documents for free by visiting EDGAR on the SEC web site at www.sec.gov.