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29 February 2012
NewSat Corporate Presentation
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Company Overview
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NewSat (ASX:NWT) is Australia’s leading independent satellite service provider specialising in global
satellite communications
Market capitalisation of ~A$125m
Current Teleport Business
NewSat runs an established and profitable Teleport business
Operates as a reseller of third-party satellite capacity using owned Teleports in Adelaide and
Perth, Australia
Provides remote and temporary sites with fast, secure and reliable Internet, voice, data and
video communications
EBITDA of A$1.8m, FY11
Transformation Underway—to Satellite Owner
Through it’s Jabiru project, NewSat is transforming its business from a “reseller” of satellite capacity
to an “owner” of satellites
Creating a step-change in earnings and dramatically increasing EBITDA margins (typically
80%-85% for satellite business)
Jabiru-1 satellite to be financed by mid 2012 with planned launch in 2H2014
Additional Jabiru satellite projects in design stage
Stage 1 Solutions Provider
Stage 3 Satellite Operator
Stage 2 Teleport Operator
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Current Teleport Business
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Owns and operates two Australian based state-of-the-art Teleports in Adelaide and Perth, providing
full range of C- and Ku- band services
Provides remote and temporary sites with fast, secure and reliable Internet, voice, data and video
communications
Robust track record of delivering growth over the last 3 financial years
Two of the best Teleports in the Southern Hemisphere with a reputation for reliability, providing
global satellite coverage to governments and enterprises through broad satellite network of 12
satellites
Accredited to supply services to the Australian and US Defense forces
Currently supports more than 4,000 (VSAT) satellite telecommunications services in Australia and
abroad
Current customers include: Australian Defence Force, ExxonMobil, Woodside, Barrick, Chevron,
SingTel, GE Satcom, Verizon, and SES
(1.0)
1.8
FY2009 FY2011
19.9
28.7
FY2009 FY2011
(0.03)
0.9
FY2009 FY2011
Revenue EBITDA Operating Cash Flow
CAGR 20%
+A$2.8m +A$0.9m
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Jabiru-2 is a payload on a satellite currently
under construction
Provides highly targeted Ku-band coverage over
Australia, Timor Leste and PNG
Satisfies the growing demand from oil, gas,
mining and government markets for cost-
effective communication solutions in and around
Australia
Expected to launch in Q4 2013
Current Business - Jabiru-2
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Highly targeted Ku-band coverage over Australia, Timor Leste and PNG
Jabiru-2’s Orbital Footprint
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Transformation Underway
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NewSat has acquired the
rights to 3 premium
orbital slots with an
option over an additional
4 slots - “Beach front
property in the sky”
These premium orbital
slot locations are aligned
with Jabiru’s focus on
high value customers in
high growth markets
Each orbital slot has
Ka-band spectrum,
appropriate for high
data intensity
applications
Orbital slots can
accommodate multiple
satellites and are the
platform for all Jabiru
satellites
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Over 175 Years of Combined Relevant Experience
Adrian Ballintine Founder and CEO
Over 30 years in the technology industry
Founder of NewSat and its current teleport
business and directed the strategic shift into
satellite ownership
Previous experience in driving a number of
NASDAQ and ASX based technology start-
ups
The architect of the current strategy to
deploy multiple satellites in recently acquired
orbital slots
Michael Hewins Chief Operating Officer
Over 30 years in global space industry
Joined September 2011
Previously Chief Commercial Officer at AON
/ International Space Brokers
Responsible for business strategy,
operations and productivity
David Ball Chief Technology Officer
25 years in the telco, media and technology sectors
Joined April 2011
Previously Managing Director of Intelsat Asia
Pacific
Leads design, strategy and development of
Jabiru-1
Adam Shapiro Chief Financial Officer / Company Secretary
Over 10 years financial sector experience
Joined May 2007
Previously with Ernst & Young in
Assurance and Advisory
Responsible for business performance
and long term business plan
Len McGoldrick VP – Engineering and Operations
25 years in satellite operations
Joined July 2008
Previously with British Telecom
commissioning satellite networks for oil
and gas customers
Responsible for operation of teleports
Mike Kenneally VP – Satellite Strategy
Over 30 years in global ICT and satellite experience
Joined September 2006
Former Australian Trade Commission’s
ICT Export Advisory Board Member and
Chairman of industry group Spatial
Australia
New product and business development
Andrew Matlock VP – Sales
25 years in satellite operations
Joined February 2001
Previously Regional Manager for
Calcomp Inc (a division of Lockheed
Martin), VP Sales for Double Impact
and previous successful start-up
business ventures
Sales and development of sales team
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Highly Experienced Management Team
Responsible For Positioning NewSat’s Shift Into Satellite Ownership
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A Unique Investment Opportunity
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Strong Satellite Industry Fundamentals Global data growth supports investment case for Ka Band capacity 1
Focus on High Growth Geographic Segment Jabiru Project satellite footprints focused on high growth regions for military and commercial applications 2
Mission Critical To Customers Established reputation for quality and service with blue-chip customers through existing Teleport business 3
De-Risking Project Execution With Experienced Partners Key contracts committed with reliable and experienced partners 4
Robust Financial Metrics Shift to satellite ownership expected to deliver EBITDA margins in excess of 80%, consistent with the broader industry 5
Access To Premium Orbital Slots Underpins Multi Asset Strategy Planning and design stages underway for additional satellites to utilise portfolio of premium orbital slots 6
Experienced Management Team Over 175 years of combined relevant experience 7
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88.8
121.7144.4
160.9 168.1
105.5
0
50
100
150
200
2005 2006 2007 2008 2009 2010
The Satellite Industry
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World satellite industry revenue US$168.1Bn in
2010
Satellite services made up US$101.3Bn
Average annual growth of 11.2% for the period
2005 through 2010
Growing Global Satellite Market
Revenue (US$Bn)
19%
15%
19%
11% 5%
Critical Service To Growing Industries
Intelsat - 53 satellites and US$2.5Bn revenue
per year
SES - 43 satellites and US$2.5Bn revenue per
year
Eutelsat - 23 satellites and US$1.5Bn revenue
per year
Remote communications from military
(surveillance / unmanned vehicles)
Resources (telemetry, robotics)
Telco (3G / 4G deployments)
Government (nation-building, NGO, emergency
services, e-learning, e-medicine)
Major Satellite Operators
Source Satellite Industry Association
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Jabiru-1 Satellite Overview
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Significant progress made to launch Australia’s first independently owned commercial satellite
Lockheed Martin is currently constructing Jabiru-1
Meets the growing demand for high throughput and secure capacity from military, resources and telco markets
Targets enterprise and government customers with “raw” capacity
Flexible payload, with a mix of spot, shaped and steerable beams
A single Jabiru satellite provides bandwidth equivalent to 6 standard Ku-band satellites
Over A$2.0Bn of high margin revenue over 15 year life expected
Significant pre sales of capacity
Leverages NewSat’s world-class Teleport facilities
High-Powered Ka-Band Coverage Over The High Growth Middle East, Asia And Africa Regions
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Robust Customer Contracts and Strong Pipeline
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To date, NewSat has signed over US$520m of binding pre-launch take-or-pay contracts for Jabiru-1 satellite capacity
US$180m contract with MEASAT
To service multiple transponders covering South Asia and South East Asia for the 15 year life of the Jabiru-1 satellite
US$105m contract with TrustComm
To service government and commercial agencies in Afghanistan, Iraq and the Middle East
US$134m contract with 3A Technology
To service government and enterprise customers in Pakistan and Afghanistan, including Mobilink, Pak Datacom and the Government of Pakistan
US$40m contract with Quicklink Communications
To service government and enterprise customers in Iraq, Saudi Arabia and other parts of the Middle East and Africa
US$67m contract with a Middle Eastern telecommunications company
To provide high-speed Internet and data services across a range of high demand regions within the Middle East
Plus a substantial pipeline of mid to high-stage opportunities for military and enterprise clients
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NewSat is Mission Critical To Customers
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Ma
jor
Pa
rtn
ers
NewSat’s satellite assets are critical business components in diverse industries and landscapes around the world
Established reputation as a partner of choice and is accredited to supply services to Australian and US Defense Forces
Simultaneously building a customer-platform for Jabiru, with many of our Teleport customers set to become Jabiru customers in the future
Oil and Gas
Government
Mining
Communications
Military and Defence
Disaster Recovery
Construction
Media and Broadcastin
g
NewSat Focus On Resilient High Value Markets With Support Of High Quality Blue-chip Partners / Customers
Hig
h V
alu
e M
ark
ets
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Experienced Partners
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Global leader in defence and space Have commenced build pre-financial close First class commercial satellite build partner and currently has
37 Lockheed Martin commercial A2100 satellites in-orbit
Signed launch agreement with Arianespace to reserve launch slot Widely considered the most reputable satellite launcher globally,
Arianespace has proven reliability and accounts for more than half of the commercial launch contracts worldwide
Partnered with AON which is the leading global space insurance provider
Made a formal application for ECA-backed debt financing to Ex-Im Bank and COFACE; appointed Societe Generale as lead COFACE bank
ARIANESPACE
LOCKHEED MARTIN
AON
EXIM / COFACE
With a planned launch of Jabiru-1 satellite in 2H2014, NewSat has reached a number of key milestones to ensure the success of the project
NewSat has partnered with reputable parties in order to deliver the Jabiru-1 project, each with extensive industry experience and an exemplary track record
Satellite Builder
Launch Provider
Insurer
Debt Financing Providers
Role Partner Comment
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Jabiru-1 Financing Metrics
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Sources of Funds (A$m)
Export credit financing and other debt 300-340
Equity (1) 80-110
Total 380-440
Uses of Funds (A$m)
Estimated cost of satellite
380-440
Estimated cost of launch vehicle
Estimated cost of insurance
Estimated cost of financing, fees and expenses
Necessary Milestones for Financial Close
1. Premium orbital slot Secured
2. Customer contracts Over US$520m of contracts secured to date, with significant sales pipeline
3. Satellite build contract Secured
Preliminary estimate is for the project to cost
approximately A$380m-$440m
Funded through a mix of low cost export credit
financing (US Ex-Im Bank and French COFACE to
account for 75%-80% of in country
components), subordinated debt and equity
Financial close of export credit funding expected
to be achieved using the following key levers
Fully coordinated premium orbital slot
located in high demand market
Binding customer commitments in excess
of $70m per annum in years 1 – 3, and
totalling in excess of $520m
Contract from satellite builder
Note: Working estimates, subject to final confirmation
1. Equity to be raised by NewSat once all other project items are in place and in parallel with debt
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1. Sign binding cornerstone customers
2. Gather customer term sheets
3. Progress drafting IM (including market research)
4. Finalise technical specifications
5. Commence manufacturer negotiations
6. Sign binding cornerstone customers
7. Commence Coface
8. Commence Ex-Im
9. Commence financing DD (debt and equity)
10. 50 to 1 share consolidation
11. Sign manufacturer contract
12. Sign launch vehicle contract
13. Financing DD
14. Preliminary financing guarantee
15. Equity Financing
16. Debt syndication
17. Financial close
18. Launch Jabiru-1
Jabiru-1 Satellite Development Timeline
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Dec Half 2011
Jun Half 2012
2014
Newsat’s Jabiru-1
satellite project is
progressing well
according to
schedule
Increasing Jabiru’s Orbital Footprint
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Jabiru-2
Payload on a satellite currently under construction
Targeting growing demand from resource and government markets
Further satellites
Jabiru 3,4 & 5 satellites in design phase
Targeting high value markets and customers in orbital slot footprints
Premium Orbital Slots Over High Growth Areas
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Detailed Jabiru Satellite Program
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Jabiru-1 Jabiru-2 Jabiru-3 Jabiru-4 Jabiru-5
Asset Type To be owned Payload To be owned To be owned To be owned
Orbital type Geostationary Geostationary Geostationary Geostationary Geostationary
Orbital location Indian Ocean Region Indian Ocean Region Indian Ocean Region Pacific Ocean Region Atlantic Ocean Region
Target Markets Growing demand for high
throughput,
secure capacity from the
military, resources and
carrier-grade telecom markets
Growing demand from oil,
gas, mining and government
markets in and around
Australia
Increasing demand for large
bandwidth capacity from
resources, military,
government and carrier-grade
telecom. markets
Increasing demand from
naval, maritime, government
and carrier-grade telecom.
markets
Emerging demand from oil,
gas, mining, government and
carrier-grade telecom. from
the next generation of
resource rich countries
Operational life 15 years 15 years 15 years 15 years
15 years
Capacity 8.3 GHz 216 MHz >8 GHz >6 GHz >7 GHz
Bands Ka-band Ku-band Ka-band Ka-band Ka-band
Coverage Middle East, Asia, Africa and
Indian Ocean
Australia, Timor Leste and
Papua New Guinea
Africa,
the Middle East, Europe, Asia
and Indian Ocean
Pacific Ocean, North East
Asia, Japan, Australia, New
Zealand and Papua New
Guinea
Central, North and South
America, as well as Western
Africa and the Atlantic Ocean
Fixed spot beams Yes No Yes Yes Yes
Shaped beams Yes Yes Yes Yes Yes
Steerable beams Yes No Yes Yes Yes
Expected launch
date
2014 2013 2015-16 2015-16 2016
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Thank you
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Adrian Ballintine Founder & CEO
NewSat Ltd
Sydney, Australia T: +61 2 9275 8854
Gold Coast, Australia T: +61 7 5526 2841
Texas, (USA) T: +1 972 322 8082
Melbourne, Australia T: +61 3 9674 4644
Perth, Australia T: +61 8 6467 1100
Adelaide, Australia T: +61 8 8260 8300
Bangkok, Thailand T: +66 2 207 9258
Singapore, Singapore T: +65 6220 7789
Doha, Qatar T: +974 4452 8296
