Inmarsat plc – Investor Day Aviation opportunity

Miranda Mills

Vice President Aerospace Global Xpress Programme

09 October 2012

Passenger connectivity growth potential

Source: IMS Research

Aug 12

0

5,000

10,000

15,000

20,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Cellular only Wi-fi only Cellular & wi-fi

Total Connected Aircraft* No. of aircraft at 1st January

Emerging opportunity to provide in-flight passenger

connectivity that offers tremendous growth potential

* Commercial passenger aircraft

Airlines embrace in-flight connectivity

Stimulated by passenger behaviour

Facilitated by new technologies

Being embraced by major airlines in near term

When will wi-fi connectivity be available for passengers to use during flights with your airline?

Available 12%

Within 2 years 41%

In 2-5 years 35%

> 5 years 12%

Source: IMS Research Aug 12

Step change in aviation services with GX

GX Aviation is: • Designed for mobility

• Offers unparalleled coverage of airline routes

• High quality service & reliability

• Design fundamentals drive attractive pricing

Proliferation of applications will require more & faster bandwidth

• GX brings flexible, upgradeable bandwidth options for passenger & airline services

• Supports live television and real-time television content

• Customisable content, tailored by airlines to their specific customer base

• Base service provides multicast channels of business, news and sports

Challenges to achieve market opportunity

Consumer driven market

Long-term business acquisition cycle

Stringent regulatory requirements

Relatively small number of players

Market dynamics

Airlines often select connectivity in conjunction with In-Flight Entertainment (IFE) equipment:

2 main players in the market:

• Panasonic Avionics Corporation (PAC)

• Thales

• PAC is the current market leader with around 70% market share

OEMs and most airlines prefer to have competition in the market

Our distribution ecosystem is responsive to

this:

• 2 initial commercial air transport VARs

• Several DPs in business aviation

• Partnering with Thales to support specific campaigns, at airline request

Competitive landscape

PAC is currently offering packaged IFE solutions, including Ku based connectivity services

• Available on the market today

• Protecting IFE market leadership position

• Leasing costly Ku transponder capacity,

• previous approach of Connexion by Boeing

• Proposing future services over the Intelsat EPIC satellites

Intelsat EPIC

• Relatively new to aviation services

• 1 satellite recently ordered

• 2016 forecast market entry

• Long term Ku costing is not clear

• Coverage limited to North Atlantic

Honeywell partnership

Aerospace facts

Revenues of $11.5 billion in 2011

Headquartered in Phoenix, Ariz.

38,000 employees worldwide, based at nearly 100 manufacturing and service sites

Strengths

Market leader in aviation terminals

Partnered with Inmarsat for over 20 years

Key capabilities in system certification

Worldwide sales & services network

Aerospace

Exclusive terminal provider

Honeywell partnership

Fuselage & tail mounted designs for commercial air transport, business aviation & Government markets

ARINC 791 compliant, to support line fit with Airbus and Boeing

On schedule for Q1 2015 entry into commercial service

KANDU + KRFU Antenna Positioner / Control + Antenna Amplifier

MODMAN Terminal /Modem

RADOME + FUSELAGE MOUNT ANTENNA – Includes mounting plate / adapter / doubler

Hardware solutions developed in partnership since Jan 2012

Gulfstream

Dassault Falcon Jet

Cessna

Hawker Beechcraft

Embraer

Bombardier

Pilatus

Epic Aircraft

Harbin Aircraft

Viking

Key Customers • Propulsion systems

• APUs and power generation

• Integrated avionics systems

• Advanced safety systems and applications

• Synthetic vision systems

• Flight management systems

• Cabin management systems and services

• Cockpit displays

• Satellite communications systems

• Digital flight guidance systems and controls

• Digital radio systems

• Environmental Control Systems

Key Products

• Digital radio systems

• Environmental Control Systems

• On-Board Inerting Gas

• Generation Systems

• General Aviation panel mount and portable avionics

• Required Navigation

• Performance Special

• Aircraft and Aircrew

• Authorization Required

• (RNP SAAAR) Services

• Flight support services

• Maintenance service plans, avionics warranty plans, and remote diagnostic services

• Global Asset Rental Banks

• Electronic flight bags

Our ideal partner for Business Aviation distribution

Honeywell partnership

Business & General Aviation customers, products & services

Currently providing services to 15,000 BA tails

Key Products

GX distribution strategy

Announced 8 October 2012

Capacity commitment constitutes material new GX presales

Honeywell anticipates additional growth opportunity through the channel

Deal is strategically important to Honeywell Aerospace’s strategy, by:

• Strengthening the current Terminal partnership

• Reinforcing commitment to current products

Business Aviation market is an early-adopter & high user market

Honeywell’s experience managing global channel partner network ensures level playing field for Distribution Partners and high quality services delivery to subscribers

Inmarsat distribution partners are short-listed for GX

Business Aviation Master Distribution Agreement

Our ideal partner for Business Aviation distribution

GX distribution strategy

Collaborative partnerships with the two leading connectivity players:

• Alternate business models ensure GX will be bid for the full range of airline opportunities

• Partners have global reach & regional focus

OnAir Value Added Reseller (VAR) Agreement

• Announced on 17th September 2012

Inmarsat has signed an MOU with Gogo

• Expect to conclude a VAR Agreement

Commercial air transport

GX distribution strategy

Established in 2005 by SITA & Airbus

230 equipped aircraft, 1050 orders in backlog

46% global market share for connectivity

Regulatory approval in 85 countries

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OnAir, a global partner

Partnering with major airlines worldwide

to provide connectivity solutions

GX distribution strategy

1 millionth Gogo customer

1000th Commercial Aircraft system installed

Gogo Launch Airline

Aircell Formed

11/2011

6/2012

1991 – 2007 2008 2011 2012 2009 2010

11/2009

8/2008

12/2008

5/2009

12/2011

5/2010

3/2010

International

> 1,600 GOGO commercial aviation tails installed

> 6,000 GOGO daily flights

> 24.5M GOGO connectivity sessions

> 525M Commercial airline passengers served

GOGO goes global

Providing connectivity and entertainment solutions

direct to passengers, generating ancillary revenues

and branding opportunities for airlines

1991

GX aviation summary

The market is now active & growing

Passenger connectivity represents material incremental opportunity for GX

Some connectivity market estimates exceed $1bn in annual satellite airtime during I-5 lifetime

GX ideally suited to aviation connectivity

We have the a strong team of partners

Together we aim to set GX as the reference in the market