Investor Presentation • Feb 13, 2018
Investor Presentation
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Washington, D.C. 20549
Report on Foreign Issuer
Pursuant to Rule 13a – 16 or 15d – 16 of the Securities Exchange Act of 1934
For the Month of February, 2018
(Translation of Registrant's Name into English)
Gilat House, Yegia Kapayim Street Daniv Park, Kiryat Arye, Petah Tikva, Israel(Address of Principal Corporate Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒Form 40-F ☐
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ☐No ☒
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A Attached hereto is Registrant's IR presentation as posted on Registrant's website.
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
Gilat Satellite Networks Ltd. (Registrant)
Dated February 13, 2018
By: /s/ Yael Shofar
Yael Shofar General Counsel

6
February 2018
NASDAQ, TASE: GILT

Certain statements made in this presentation are forward-looking within the meaning of the Private Securities Ligation Reform Act of 1995. The words "estimate", "intend", "expect", "believe" and similar expressions are intended to identify forwardlooking statements. These forward-looking statements involve risks and uncertainties. Many factors could cause the actual results, performance or achievements of Gifterent from any future results, performance or achievements hat 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 Gild's to obtain financing and/or timely develop and introduce new technologies, products and applications. rapid changes in the market for Glat's products. Ioss of market share and prices resulting from competition, introduction of companies, inability to manage growth and expansion, loss of key OEM partners, inability to attract and retain qualified protect the Company's proprietary technology and risks associated with Gilat's international operation in Israel. Gilat undertakes no obligation to update or revise any forwardlooking statements for any reason. For additional information regarding these and uncertainies associated with Gial's business, reference is made to Gilat's reports filed from time to time with the Securities and Exchange Commission.
This presentation includes financial data that is not and financial data that was not prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Non-GARP financial measures appearing in this presentation consist of GAAP financial measures adjusted to exclude, non cash share-bases, imparment of goodwill and long lived assets, amortization of acquired intangible assets, restructuring, trade secrets litigation expenses under amnesty program 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 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 financialstatements prepared in accordance with GAAP financial measures may differmaterially from the non-GAAP financial measures used by other companies.



OBAL FOOTPRINT - EXPANDING A DIVERSE CUSTOMER BASE


BOOMING CAPACITY - GEO + LEO/MEO (0)


ABUNDANCE OF CAPACITY UNLOCKS NEW MARKETS








MOBILE - LEADING THE FAST GROWING SATELLITE BACKHAUL MARKET

"Gilat is the fastest growing player in the vertical. It recently won large projects, boosting its market share ... "
Source: NSR, March 2017
MOBILE - ENABLING "TERRESTRIAL-GRADE" USER EXPERIENCE






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MULTI-YEAR MANAGED SATELLITE-BASED LTE BACKHAUL SERVICE



MOBILITY - SUPERIOR PASSENGER EXPERIENCE DRIVES DEMAND



| DOWNLOAD | |
|---|---|
| (V | 112.67 Mbps |
| Data Used: 92.0 MB | |
| UPLOAD | |
| 6.61 Mbps | |
| Data Used: 6.0 MB | |
| PING | |
| 812 ms | |
| SERVER LOCATION | |
| Arlington Heights, IL | |
| CLIENT LOCATION | |
| LAT: 40.911 - LON: - 74.907 | |
| External IP: 12.130.118.0 |

| ~2,000 aircrafts | ||||
|---|---|---|---|---|
| Aer Lingus | AEROMEXICO | AIR CANADA | AIRFRANCE / | |
| American & BRITISHAIRWAYS - ADELTA CO | ||||
| IBERIA @ @JTA | ﺎ ﺗﺄﻟﻴﻔﺎ ﻓﻲ ﺃﻭﺭﻭﺑﺎ ﻓﻲ ﺍﻟﻤﺪﻳﻨﺔ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ | KL.MI virginatlantic a virginatlantic |






| Broadband to unserved & underserved | Large governmental projects in Peru and Colombia |
|---|---|
| · Bridging the digital divide | · Peru - FITEL projects o A \$2B+ program to build terrestrial networks |
| o Connecting communities and individuals to the world via broadband |
across Peru o 8 Regional Projects awarded so far - 4 to Gilat (~\$400M) - \$230M construction revenue - \$170M operational revenue over 10 years |
| • Innovating to deliver affordable Consumer and Enterprise solutions |
Growing service revenues
Target:
Recurring revenues >\$50M / year, profitable, starting 2019
21 | Proprietary and Confidential

(S)



February 5, 2018
Gilat to deliver the satellite platform for NBN Co to serve nationwide business in regional and rural Australia

NBN - NATIONAL BROADBAND NETWORKS AUSTRALIA










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| 2016 | 2017 targets |
2017 modified targets |
2017 actual |
|
|---|---|---|---|---|
| Revenue | \$280M | \$280M-\$300M \$280M-\$290M | \$283M | |
| Adjusted EBITDA | \$19.2M | \$20M-\$24M | \$22M-\$26M | \$26.2M |

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YEARLY PROFIT AND LOSS HIGHLIGHTS US\$ MILLIONS

| Revenues \$282.8M (\$279.6M) 1% YoY |
Revenues wo Terrestrial Infra \$204.5M (\$188M) 9% YoY |
Gross Profit GAAP 29% (27%) Non GAAP 31% (29%) OPEX GAAP \$71.6M (\$74.7M) Non GAAP \$68.8M (\$68.6M) |
|---|---|---|
| Mobility Revenues Mainly IFC \$88.4M (\$62.9M) 41% YoY |
Operating Profit GAAP \$10.9M (\$0.8M) Non GAAP \$18.5M (\$11.7M) Operating Margin GAAP 4% (0%) Non GAAP 7% (4%) |
|
| Net Profit GAAP \$6.8M (\$5.3M loss) Non GAAP \$14.6M (\$5.6M) |
Adjusted EBITDA \$26.2M (\$19.2M) |
30 | Proprietary and Cr

US\$ MILLIONS, EXCEPT PER SHARE DATA
| GAAP | 2015 | 2016 | 2017 | ||
|---|---|---|---|---|---|
| Revenues | 197.5 | 279.6 | 282.8 | ||
| Gross Profit | 44.1 | 75.5 | 82.5 | ||
| Gross Margin | 22% | 27% | 29% | ||
| R&D net | 22.4 | 24.9 | 28.0 | ||
| ട&M | 24.8 | 23.4 | 23.8 | ||
| G&A | 17.8 | 22.0 | 18.5 | ||
| Other expenses* | 22.7 | 4.4 | 1.3 | ||
| Operating income (loss) | (43.7) | 0.8 | 10.9 | ||
| Net income (loss) | (52.3) | (5.3) | 6.8 | ||
| Diluted EPS | (1.16) | (0.10) | 0.12 | ||
| Non-GAAP** | |||||
| Gross Margin | 30% | 29% | 31% | ||
| Operating Income (loss) | (3.4) | 11.7 | 18.5 | ||
| Net income (loss) | (11.8) | 5.6 | 14.6 | ||
| Adjusted EBITDA | 6.1 | 19.2 | 26.2 |


US\$ MILLIONS, EXCEPT PER SHARE DATA
| GAAP | Q4 16 | 01 17 | 02 17 | 03 17 | Q4 17 |
|---|---|---|---|---|---|
| Revenues | 80.3 | 63.9 | 66.2 | 69.9 | 82.7 |
| Gross Profit | 24.2 | 17.3 | 19.6 | 20.3 | 25.2 |
| Gross Margin | 30% | 27% | 30% | 29% | 31% |
| R&D net | 6.5 | 6.7 | 6.2 | 6.9 | 8.2 |
| ട&M | 6.2 | 5.8 | 5.6 | 5.8 | 6.6 |
| G&A | 4.2 | 4.0 | 5.3 | 4.3 | 5.0 |
| Other expenses (income)* | 0.9 | 0.8 | 0.7 | - | (0.2) |
| Operating income | 6.5 | 0.0 | 1.9 | 3.3 | 5.6 |
| Net income (loss) | 4.5 | (0.8) | 2.1 | 2.1 | 3.4 |
| Diluted EPS | 0.08 | (0.01) | 0.04 | 0.04 | 0.06 |
| Non-GAAP** | |||||
| Gross Margin | 32% | 29% | 31% | 31% | 32% |
| Operating Income | 9.0 | 2.5 | 4.1 | 4.9 | 7.0 |
| Net income | 7.0 | 1.7 | 4.6 | 3.6 | 4.7 |
| Adjusted EBITDA | 10.8 | 4.2 | 5.9 | 7.1 | 9.0 |
* Include tax amnesty and trade secrets litigation expenses
** Adjustments reflect the effect of non-cash stock based compensation as per ASC 718, amortization of intangible assets related to shares
acquisition transactions, impairnents, restructuring costs, trade secrets litigation expense under amnesty program
GILAT REVENUES & TERRESTRIAL INFRASTRUCTURE BREAKDOWN তি US\$ MILLIONS









* Data excludes construction of the terrestrial infrastructure in Peru


| Cash and equivalents1 | DSO2 | Total Assets |
|---|---|---|
| \$86.8 (\$111.6) | 75 days (89 days) | \$386.8 (\$383.2) |
| Cash From Operation | Total Debt | Shareholders equity |
| \$20.8M (\$10.8M) | \$17.1 (\$21.5) | \$218.3M (\$209.8M) |
1) Including cash and cash equivalents, restricted cash and net of short term bank credits 2) DSO calculation excludes services segment revenues and AR
3 2018 GUIDELINES AND OUTLOOK - INCREASED PROFITABILITY US\$ MILLIONS

| Revenues \$285M-\$305M (\$282.8M) |
Revenues wo Terrestrial Infra \$247M-\$263M (\$204.5M) 21%-29% YoY |
>60% | |
|---|---|---|---|
| 1%-8% YoY | Mobility Revenues Mainly IFC \$98M-\$103M (\$88.4M) 11%-17% YoY |
of 2018 revenues from current backlog |
|
| Adjusted EBITDA \$30M-\$34M (\$26.2M) 15%-30% YoY |
Operating Margin GAAP 4% (4%) Non GAAP 7% (7%) |
Operating Profit GAAP \$17M-\$21M (\$10.9M) Non GAAP \$21M-\$25M (\$18.5M ) |
EXECUTING PROFITABLE GROWTH STRATEGY

Annual Revenues


Adjusted EBITDA


Revenues: \$285M - \$305M
GAAP Operating Profit: \$17M - \$21M
Adjusted EBITDA: \$30M - \$34M
IN SUMMARY - UNIQUELY POSITIONED FOR UNLOCKING OPPORTUNITIES

Oversupply of capacity unlocks new markets
Demand for plentiful affordable broadband, anywhere anytime, is soaring
Leading in the main growth areas -Mobile Backhaul & IFC Mobility


Focused on strategy execution and profitability

Gilat Satellite Networks | [email protected] | www.gilat.com
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