Gogo Inc. - FORM 8-K - EX-99.1

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8-K - 8-K - Gogo Inc.	d923325d8k.htm

May 11, 2015

Investor

Presentation

Exhibit 99.1

SAFE HARBOR STATEMENT

This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act

of 1934 that are based on management’s beliefs and assumptions and on information currently available to management. Most forward-looking statements contain words

that identify them as forward-looking, such as “anticipates,” “believes,” “continues,” “could,” “seeks,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,”

“projects,” “should,” “will,” “would” or similar expressions and the negatives of those terms that relate to future events. Forward-looking statements involve known and

unknown risks, uncertainties and other factors that may cause Gogo’s actual results, performance or achievements to be materially different from any projected results,

performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent the beliefs and assumptions of Gogo only

as of the date of this presentation and Gogo undertakes no obligation to update or revise publicly any such forward-looking statements, whether as a result of new

information, future events or otherwise. As such, Gogo’s future results may vary from any expectations or goals expressed in, or implied by, the forward-looking

statements included in this presentation, possibly to a material degree.

Gogo cannot assure you that the assumptions made in preparing any of the forward-looking statements will prove accurate or that any long-term financial or operational

goals and targets will be realized. In particular, the availability and performance of certain technology solutions yet to be implemented by the Company set forth in this

presentation represent aspirational long-term goals based on current expectations. For a discussion of some of the important factors that could cause Gogo’s results to

differ materially from those expressed in, or implied by, the forward-looking statements included in this presentation, investors should refer to the disclosure contained

under the headings “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K filed with the SEC on

February 27, 2015.

Note to Certain Operating and Financial Data

In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), Gogo also discloses in this

presentation certain non-GAAP financial information, including Adjusted EBITDA and Cash CapEx. These financial measures are not recognized measures under GAAP,

and when analyzing our performance or liquidity, as applicable, investors should (i) use Adjusted EBITDA in addition to, and not as an alternative to, net loss attributable

to common stock as a measure of operating results, and (ii) use Cash CAPEX in addition to, and not as an alternative to, consolidated capital expenditures when

evaluating our liquidity.

In addition, this presentation contains various customer metrics and operating data, including numbers of aircraft or units online, that are based on internal company data,

as well as information relating to the commercial and business aviation market, and our position within those markets. While management believes such information and

data are reliable, they have not been verified by an independent source and there are inherent challenges and limitations involved in compiling data across various

geographies and from various sources.

WHY INVEST IN GOGO

LARGE GROWTH OPPORTUNITY

HIGH BARRIERS TO ENTRY

EXPERIENCE & SCALE

LEADING POSITION

ATTRACTIVE ECONOMICS

MARKET & COMPANY

OVERVIEW

AVIATION INTERNET TRENDS

Connected

aircraft

transform

global

aviation

–

the

last

frontier

internet

connectivity

Cost, coverage, capacity and reliability are just now reaching critical

inflection points

Next gen technologies expected to increase speeds from 10 to 100Mbps

within 5 years with a comparable reduction in costs

More bandwidth drives demand from business traveler connectivity

today

every

person

and

most

‘things’

aircraft

years

Airlines will demand ‘Always Available Everywhere for Every Plane’

CA -

North America

(“CA-NA”)

CA -

Rest of World

(“CA-ROW”)

(1) Source:

Boeing

Current

Market

Outlook

2014

–

2033,

excludes:

cargo

aircraft.

(2) Source: JetNet iQ Report Q4 2014; General Aviation Manufacturers Association 2014 Statistical Databook, excludes Rest of World turbo props.

ADDRESSABLE CONNECTED AIRCRAFT

Commercial Aviation (“CA”)

Business Aviation (“BA”)

2.6x size

of CA-NA

A LARGE AND GROWING GLOBAL

CONNECTED AVIATION MARKET

The connected aircraft industry is worth up to $30 billion

5,300

7,300

2013

2033F

13,900

32,000

2013

2033F

30,300

37,800

2014

2024F

(1)

(2)

1.4x

2.3x

1.2x

Largest Market Share in CA-NA

GOGO’S IMPRESSIVE SCALE AND REACH

Largest Market Share in BA

68% of connected aircraft

Note:

Data

based

management

estimates,

trade

publications

and

other

public

sources

3/31/2015

(1) Gogo satellite business aircraft includes 5,402 aircraft online comprised of 5,353 Iridium equipped aircraft and 49 SwiftBroadband equipped aircraft as of 3/31/15

(2) Based on management estimates as of 3/31/2015

(3) Includes Gogo awarded aircraft as of 5/7/2015

Broadband

Narrowband

#1 Global in-flight connectivity provider

Leader in North America and expanding internationally

Untapped CA-ROW market

88% of broadband aircraft

63% of Iridium satellite aircraft

(2)

2Ku –

Leading global satellite technology

–

300+ aircraft to be installed w/ 2Ku

2,200

524

349

154

2,983

400

318

10,700

5,353

3,144

LONG-TERM PARTNERSHIPS WITH OUR MAJOR

AVIATION PARTNERS

North America

Original Equipment Manufacturers

Fractional Jet Operators

Commercial Aviation

Business Aviation

International

WHY WE WIN

Specialize in aviation and telecom

Excellent reliability

Superior technology & economics

End-to-end service provider

WE SPECIALIZE IN AIRCRAFT AND HAVE

A TRACK RECORD OF INNOVATION

EXPERTISE IN INTERNET, AVIATION AND TELECOM

ATG / ATG-4

generation

technology

North America coverage

2Ku

generation

technology

Global coverage

Intellectual

Property

100+ patents globally

Other Aviation

Innovations

Leader in wireless in-flight entertainment: 1,800+ aircraft

installed

Other industry leading IFC & IFE product innovations: Crew

Connect, Text & Talk, Universal Cabin System, and others

GOGO’S TECHNOLOGY AGAIN

DISRUPTS THE

GLOBAL AVIATION INDUSTRY

ATG-4: North America coverage

2Ku: Global coverage

ATG-4 Antenna

2Ku Antenna

70 Mbps at launch, 100 Mbps when spot beam Ku-band

satellites are launched

Low

cost

producer

–

estimated

half

the

bandwidth

cost

compared to other satellite solutions

Most complete global coverage

Half

the

height

traditional

antenna

–

lower

drag,

fuel

savings

Leverages Gogo’s existing Ku-band network and future high

throughput Ku satellites

10 Mbps regional solution, North

America coverage

Proprietary solution enabling overnight

installs

Years of experience delivering

broadband service

Gogo is the only ATG solution

provider: network, equipment, service

Technology

Region

Peak

Speed

Key Attributes

Iridium

Global

2.4 Kbps

Low data speeds

Swift Broadband

Global

432 Kbps

Low data speeds

ATG / ATG-4

Regional

3.1 / 9.8

Mbps

Overnight install

Suits all aircraft types

Lower latency vs.

satellite

2Ku

Global

70-100

Mbps

2x spectrally efficient

vs. Ku / Ka band

Lower profile radome

More robust and

reliable

Expected

2015

Launch

Ku Band

Global

50 Mbps

Global coverage

Multiple suppliers

Ka Band

Global

50 Mbps

Spot beam

technology

Next Generation

Expected

2015

Launch

Expected

2015

Launch

(Regional)

Expected

2015

Launch

Broadest suite of technologies and full fleet connectivity solutions

Proprietary 2Ku technology: higher peak speed (70-100 Mbps) than competitors at half the bandwidth cost

ATG / ATG-4: fastest deployment time (overnight) and lightest equipment

LARGEST TECHNOLOGY PORTFOLIO

EXCELLENT RELIABILITY

75+ million

sessions

7,800+ flights

per day

98% +

ATG End-to-End

System Availability

Source: Company information

THE MOST COMPLETE END-TO-END

AVIATION SERVICE PROVIDER

Operations-focused connectivity

services for airlines and crew

Dedicated customer support services

Network monitoring and bandwidth

management

Airborne equipment for ATG and

satellite

Certification, installation,

maintenance, etc.

Connectivity and wireless

entertainment services across a

range of passenger devices

ATG / ATG-4 for North America

2Ku / Ku / Ka for global satellite service

Passenger Services

Equipment and Equipment

Related Services

Airline / Owner / Operator

Services

Operations-Oriented

Communications Services

Global Network Solutions

FINANCIALS

GROWING REVENUE DRIVES PROFITABILITY

Note: Minor differences exist due to rounding

(1) Please see reconciliation of Adjusted EBITDA in appendix

Adjusted EBITDA

(1)

($MM)

$49

CA-ROW

Segment Loss

Revenue

($MM)

$89

Adjusted EBITDA

$93

$37

$160

$328

$408

$428

2009

2011

2013

2014

Q1 2015

LTM

($89)

($1)

$11

$14

$41

$78

$80

2009

2011

2013

2014

Q1 2015

LTM

62%

CAGR

CA -

NA: REVENUE AND SEGMENT PROFIT GROWTH

Note: Minor differences exist due to rounding

(1) We define ARPA as the aggregate service revenue for the annual period divided by the number of aircraft online during that period

Revenue ($MM)

Annualized ARPA

(1)

($000s)

Segment Profit

($MM)

11%

Margin

Aircraft Online

(End of Period)

102 Q/Q

Increase

$11

$251

$266

$24

$121

$127

2009

2014

Q1 2015 LTM

2009

2014

Q1 2015 LTM

692

2,098

2,200

2009

2014

Q1 2015

$(91)

$26

$30

2009

2014

Q1 2015 LTM

BA: HIGH-MARGIN SERVICE REVENUE DRIVES

PROFITABILITY AND CASH FLOW

$26

$156

$159

Equipment Revenue

Service Revenue

Revenue ($MM)

Segment Profit

($MM)

Segment Profit Margin

Segment Profit

ATG Aircraft Online

(End of Period)

186 Q/Q

Increase

ATG Units Shipped

Note: Minor differences exist due to rounding.

43%

CAGR

116 aircraft online as of 3/31/2015

Near global Ku-band satellite network

2Ku technology selected by 6 airlines

for trial or adoption

(1) Figures reflect aircraft under non-binding agreements

(2) Includes Gogo awarded aircraft as of 5/7/2015

International Aircraft Wins

(cumulative)

Executing Our International Expansion

CA-ROW Segment Loss ($MM)

International Partners

CA -

ROW: FOCUS ON INTERNATIONAL EXPANSION

(1)

(2)

116

180

257

293

318

2012

2013

2014

Q1 2015

Aircraft Online (end of period)

Cumulative Aircraft Awards

$14

$41

$78

$80

2012

2013

2014

Q1 2015 LTM

NORMALIZED CAPEX MODEL

(1) Please see reconciliation of Cash CapEx in the Appendix

Gross CapEx

Capitalized

software

Airborne

equipment

Network

equipment

Over the past two

years, Gogo’s Cash

CapEx has been

stable at ~$100

million

Equipment proceeds received from airlines

and landlord incentives

Cash CapEx

(1)

Why Does Gogo Win?

Specialize in aviation and telecom

End-to-end service provider

Superior technology and cost

Deliver excellent reliability

Focused Strategy

Gain global share

Grow ARPA

Increase bandwidth to aircraft

Deliver consistent execution

GOGO -

A COMPELLING INVESTMENT OPPORTUNITY

Gogo is a leading aero communications service provider

for the global aviation industry

Q&A

APPENDIX

ADJUSTED EBITDA RECONCILIATION ($MM)

2009

2010

2011

2012

2013

2014

2015

Net Income

(142)

(140)

(18)

(96)

(146)

(17)

(19)

(25)

(24)

(20)

Interest Income

(0)

Interest Expense

–

Income Tax Provision

–

Depreciation & Amortization

EBITDA

(91)

(106)

(49)

(60)

Fair Value Derivative

Adjustments

–

(59)

(10)

–

Class

A and Class B Senior

Convertible Preferred Stock

Return

–

Accretion of Preferred Stock

–

Stock-based Compensation

Expense

Loss on Extinguishment of

Debt

–

Write Off of Deferred Equity

Financing Costs

–

Amortization of Deferred

Airborne Lease Incentives

–

(1)

(4)

(8)

(3)

(4)

Adjusted EBITDA

(89)

(45)

(1)

Note: Minor differences exist due to rounding

CASH CAPEX RECONCILIATION ($MM)

2009

2010

2011

2012

2013

2014

2015

Purchases of

Property and

Equipment

(69)

(33)

(67)

(105)

(32)

(28)

(35)

(37)

(53)

Acquisition of

Intangible Assets

(Capitalized

Software)

(8)

(7)

(10)

(12)

(16)

(4)

(5)

(3)

(4)

Consolidated Capital

Expenditures

(77)

(40)

(43)

(79)

(121)

(36)

(33)

(41)

(40)

(57)

Change in Deferred

Airborne Lease

Incentives

–

Amortization of

Deferred Airborne

Lease Incentives

–

Landlord Incentives

–

Cash CapEx

(77)

(30)

(31)

(58)

(104)

(29)

(27)

(30)

(12)

(32)

Note: Minor differences exist due to rounding

Gogo Inc. - FORM 8-K - EX-99.1 - May 11, 2015

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