Global Government Andy Start President

Global Government is a $126m business serving needs of a wide range of governments in over 100 nations outside the USA

EU & Coalition Nations traditionally largest customers but progressively diversifying

Business is Indirect in all but 4 countries (Aus, Can, NL, NZ)

Support partners to provide integrated solutions as well as wholesale airtime

Global Government business at a glance Mission: We Connect Those Who Protect

Serving the needs of over 100 nations across all areas of government

Defence Emergency Services

Coastguard Border Security

Healthcare Education Public Works

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Overall market (outside US) $2.7bn; CAGR of 11% expected over next 10 years

Budget issues remain front and centre in North America & Western Europe

• EU drawdown from Afghanistan flattened market in 2012-14

• Coalition reticence to engage is reducing Middle-East usage, leading to over-supply

• Increasing global instability may make coalition position untenable in medium term

Market opportunity A large and growing market, despite drawdown from Afghanistan

All Statistics NSR 2012 GMSC10 Global Forecast

Revenues generated in Asia and Latin America expected to grow faster than in North America and Europe

• Asia and LATAM particularly strong - 13% CAGR expected

Focus on coverage, mobility & agility in all segments

• Strong underlying demand for more bandwidth

• ISR and UAVs will drive demand

Significant opportunities to connect the unconnected

• Many nations still have limited comms capability

• Market expansion is as important as market share

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Fixed VSAT COTM UAVs COTM Aeronautical COTM Land-MobileCOTM Maritime COTP MSS Narrowband

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NAM LAM EU MEA ASIA AOR IOR POR

Global GMSC revenues by Application Platform Global GMSC revenues by Geography

Source : NSR

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COTM: Comms on the Move, COTP: Comms on the Pause NAM: North America, LAM: Latin America, AOR: Atlantic Ocean Region, IOR: Indian Ocean Region, POR: Pacific Ocean Region

Number 11 in Government MSS market

MSS/FSS market converging

• Number 3 to 51 in converged market (depending on measures)

Government spend on national systems both a threat and opportunity

• WGS, Skynet 5, Syracuse, Athena Fidus key examples of overlapping national systems

• National Milsatcom systems consume budgets but stimulate awareness of benefits

• Opportunities in complementary capability, lower priority users and emerging nations

Governments buy solutions

• Creates a complex environment of “Competimates”

• Airbus largest partner but also sells X-band solutions

Inmarsat offering highly differentiated

• L-band frequency optimised for mobility and covert operations

• GX offers the only seamless high capacity global service at compelling price. Architecture optimised for government

Competitive landscape Well positioned to take market share in merging MSS/FSS Government market

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2 2 2 1 Inmarsat

Iridium

Globalstar

Thuraya

LightSquared

Orbcomm

Worldwide mobile satellite services operations Government/Military market share (%)

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Source : NSR

1. Company estimate

Ka-band

Majority of Governments prefer local service providers

Business is Indirect in all but 4 countries (Aus, Can, NL, NZ)

• Direct business in markets that expressed firm wish to continue to operate direct

• Affords opportunities to develop products with deep end-user understanding

Distribution through 20 major multinational partners and their Service Providers, and over 100 niche market partners

Key distribution selection criteria:

• End customer intimacy

• Capability

• Open collaborative behaviours

6 GX distribution partners signed

• Majority of other Government partners expected to also sell Government Subscription Service

Overview of route to market Primarily indirect reflecting government’s desire for local support

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Europe represents largest proportion of historic revenue

• Broadly spread across Western Europe

• European market declining, but revenue held flat through innovation and adding new customers

Asia & LATAM anticipate strongest market growth and market expansion

•Market expansion reducing exposure to individual nations

Revenue well split through Land/Sea/Air products

• Air anticipated to be highest growth sector, driven by increased use of ISR and UAVs

Split of current revenue Well balanced revenue between Land, Sea & Air

13% 3%

56%

28% Americas (non US)

Africa/CAMENA

Europe

AsiaPac

2014 H1 revenue by region

9%

43%

48%

Air

Land

Sea

2014 H1 revenue by product

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Source : Company Data

Strategy is to protect the core revenues through new products:

• Dominate small terminal ‘Comms on the Move’ and ‘Comms-on-the Pause’ with L-band

• Aggressively promote L/Ka as superior solution for medium & large terminals

• Host 3rd party Government applications to drive up ARPU as price per bit falls

Strategy is to grow in new markets:

• Grow non-defence Government verticals

• Grow profitable countries through small Inmarsat teams supporting local partners

Strategic growth plan developed in 2012; performance to date tracking closely to plan

• Existing countries being held flat by offering innovative new solutions

• Good progress in moving into Emergency Services & Border protection. Next move into Critical National Infrastructure

• Sales teams established to support partners in 10 additional countries (In 2012, 80% Global Government revenue derived from only 6 countries). More country teams planned

Global Government strategy

2012

2016

Strategy: substantial growth through new products & entering new markets

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Government specific products

L-TAC Ruggedised BGAN Military Ka GX

Government specific products Enhancing the capabilities of standard products & delivering integrated solutions

Government specific solutions

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Countries with significant existing revenue

Group wide initiatives Countries of significant interest

Countries with new sales teams established

Countries and regions of interest Substantial opportunity for market expansion

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Global Government - Summary

The G2 team’s mission is to “Connect those who Protect”.

Strong underlying market demand and unmet need

Competitively very well positioned to take market share

Business is robust and diversified across different regions of the world

Strategy to deliver growth through new products & new markets

We are 2½ years into executing strategy.

The strategy appears to be working.

• Expert team has delivered growth over the last 3 years

• Strong pipeline which bodes well for the future.