1. Gilat Satellite Networks Corporate Presentation
Gilat Satellite Networks | Erez Antebi, CEO
March 2015

2. Driving the Satellite Industry for Over 25 Years
Leading provider of satellite-based communication products and services
Designer and manufacturer of ground segment and networking communication equipment, including…
VSAT systems (Very Small Aperture Terminals = modems)
Small mobility terminals
#1 or #2 worldwide VSAT market share outside of North America
#1 (or #2) Satcom provider in all satellite segments
Shipped over 1.2M terminals to date
Growth Strategy
Broadband driven by High Throughput Satellites (HTS) with low cost bandwidth
Satellite On-The-Move (SOTM); Commercial and Defense
2015 Management Objectives Update:
Revenue: between $250 and $260 million
EBITDA: between $26 and $28million

3. Global Presence, Local Support
930 Employees Worldwide
5 R&D Centers 3 NOCs (Network Operation Centers) 21 Sales Offices 90 Countries
500 + active networks
R&D Center
NOC
Sales office
Revenue By Geographies 2013

4. Among Our Diverse Customer Base and Partners
Satellite Companies
Telcos / MNOs
Satcom Operators and ISPs
System integrators
Governments

5. Four Main Satellite Market Trends
HTS CAPACITY IS GROWING
PRICE TRENDS BY REGION
HTS
Abundance of capacity
Price erosion
Broadband (BB) Demand
BB Penetration rates are increasing
Cellular Coverage and Networks
Coverage is increasing
Moving from 2G to 3G/LTE
Satellite on-the-Move
Mobility needs are growing
Source: Comsys 2014
© Euroconsult 2013
TOTAL HTS CAPACITY DEMAND BY VERTICAL MARKET
Source: EuroConsult 2013 5
NSR. Commercial Mobility via Satellite, 10th Edition 2014

6. Gilat Business Units Commercial Division Mobility Division
Services Division

7. Commercial Division
Markets & Applications: Broadband Internet, Cellular Backhaul, Enterprise connectivity
Customers: MNOs, Telcos, Satellite Operators
Driving Growth: Ubiquitous broadband demand, lower-cost bandwidth (HTS), cellular coverage needs

8. Partnering with HTS Providers
Agreements in place with SES, Thaicom, Inmarsat and O3B
Value Proposition:
Multiple applications on same platform (Broadband, Enterprise, Cellular Backhaul, Mobility,..)
Strategic position as technology partner
Open System: Multiple ISPs can configure own business offering
Flexible business models: Risk sharing OPEX model
Ground equipment, VSATs, HUBs, Gateways and Network Operations
Collaborative sales and distribution
Actively pursuing creative partnerships with other leading satellite providers
JCP

9. HTS and Wide-beam Gilat SkyEdge II-c Supports All Applications
Libra
Gemini-i
Gemini
Capricorn
Capricorn Pro
Low-cost Consumer
Consumer
Enterprise
3G/LTE Cellular Backhaul
IP Trunking & Mobility
NEW!!!
Total NMS - Network Management

10. Ka Band Leaders - Gilat and SES
SBBS Project
Our SkyEdge II-c hubs and consumer equipment support SES’s Ka-band service
20Mbps 30 euros/month
Tens of thousands of Consumer Premise Equipment already delivered (and more on the way)
"Gilat's advanced VSAT technology allows us to optimize our service proposition and increase our competitive advantage.”
Patrick Biewer
Managing Director of SES Broadband Service

11. CellEdge: Small Cell Coverage for Unserved Areas
Fully integrated 2G/3G solution: VSAT and energy solution optimized for low-cost, rapid deployment
Value proposition to MNOs: “Tell us where you want coverage and within a few months you will have it.”
Example: TIM Brasil
Turnkey solution for 20 remote sites in under 2 months, including site survey and acquisition, equipment delivery, installation and activation of the network
Repeat order for additional 30 sites
RuralCom Canada
Sites running along the Canada – Alaska highway

12. Super-fast LTE Backhaul Made Possible With Capricorn
SkyEdge II-c Capricorn: 200Mbps – the world’s fastest TDMA VSAT
Enable MNOs to connect to LTE network via satellite
Value proposition to MNOs:
“Rapid deployment of LTE in suburbs to capture market share”
Initial orders received for Tier-1 Asian operator

13. Mobility Division
Markets & Applications: Broadband-on-the-Move, Aviation, Defense, Broadband-on-the-Pause
Customers: System Integrators, Airborne Service Providers, Defense Integrators
Driving Growth: Broadband demand, Lower-cost bandwidth (HTS), Airborne connectivity

14. Airborne Connectivity - Today
Ka-Band AeroStream™ Transceiver
“The combination of field experience and innovative technology was a critical factor in our selection of Wavestream’s Ka-band transceivers for integration into our Global Xpress antenna system.”
Chris Webster
Honeywell Aerospace

15. Airborne Connectivity - Tomorrow
Full Terminal

16. Tiny Terminals for UAVs
BlackRay Integrated System

17. Rugged Antennas On-the-Move
RaySat ER5000

18. Passenger Broadband Connectivity
RaySat ER7000

19. Manpack On-The-Pause
SatTrooper

20. Services Division - Gilat Peru and Gilat Colombia
Markets & Applications: Developing countries, Broadband and communications coverage
Customers: Government USO entities
Driving Growth: Bridging the digital divide

21. Services Division: Gilat Peru
Awarded $285 Million BOT Regional Telecommunications Infrastructure project by Fitel in Peru. 3 bids won for 3 regions
Fiber-optic Transport Network - Build and operate for 1 year
Wireless Access Network - Build and operate for 10 years
Bringing high quality connectivity to rural villages in need of broadband services. Connecting more than 600 government institutions
Additional revenues expected from selling capacity on new network to Telco’s and MNO’s
IAL project operational
Providing telephony and internet services to 9,000 villages
Government expected to issue more projects like this over next 2 years

22. Services Division: Gilat Colombia
$99m project from Colombia’s MINTIC:
Deployment finished and operational
3 years’ service (2 quarters of service in 2014)
Internet and educational services to 1,900 rural communities and schools

23. Financial Indicators

24. Annual Financial Indicators ($M)
Annual Revenues
EBITDA
Operating Income (loss)
GAAP
Non GAAP 24

25. Quarterly Financial Indicators ($M)
Quarterly Revenues
EBITDA
Operating Income (loss)
Non GAAP 25

26. Profit and Loss Highlights - Non GAAP*
US$ millions, except per share data
Three months ended
December 31,
Year ended
Revenues
73.1
55.7
235.1
234.9
Gross Profit
27.0
21.5
88.7
84.6
Gross Margin
37.0%
38.5%
37.7%
36.0%
R&D net
6.0
7.4
24.7
27.4
S&M
6.9
8.2
31.1
30.9
G&A
6.6
19.7
21.9
Operating Income (loss)
7.5
(0.1)
13.1
4.4
Net income (loss)
(1.0)
(1.1)
Diluted EPS
0.10
(0.02)
0.17
(0.03)
EBITDA
10.4
2.5
23.4
16.3
* Adjustments reflect the effect of non-cash stock options expenses as per ASC 718, amortization of intangible assets related to share acquisition transactions and net income (loss) from discontinued operations.

27. Balance Sheet Highlights – Quarter to Quarter
US$ millions
December 31,
2014
September 30,
Cash Balances *
53.5
46.7
Total Assets
364.9
352.1
Total Debt
30.9
31.1
Shareholders’ equity
225.1
222.6
* Including cash and cash equivalents, restricted cash and net of short term bank credits.

28. 2015 Management Objectives
Revenues between $250M to $260M
EBITDA between $26M to $28M
H2 expected to be significantly stronger than H1

29. Summary
Satellite communication needs will significantly increase in the near future
HTS
Mobility
Cellular
Significant opportunities in Government funded rural telecom infrastructure projects
Gilat is well-positioned to take advantage of these markets
Financial situation
Significant improvement in profitability
Healthy balance sheet
Continued growth expected

30. Gilat Satellite Networks | info@gilat.com | www.gilat.com