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RigNet Investor Update
November 2020 Update
Enabling Intelligence.
Delivering Results.
2222 Enabling Intelligence. Delivering Results.
Forward-looking statements and non-gaap measures
Certain statements made in this presentation may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private
Securities Litigation Reform Act of 1995 — that is, statements related to the future, not past, events. Forward-looking statements are based on current expectations and include any
statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address our expected future business and financial performance,
and often contain words such as "anticipate," "believe," "intend, “will”, "expect," "plan" or other similar words. Forward-looking statements in this presentation include, without limitation,
statements regarding the current outlook for our segments, expected future sites to which we provide service, future revenue from project backlog, and expectation of loan forgiveness
through the Paycheck Protection Program. These forward-looking statements involve certain risks and uncertainties that ultimately may not prove to be accurate. Actual results and
future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from those contemplated in our forward-looking
statements include, among others: impact of COVID-19 or other pandemics on our business; adverse changes in economic conditions in the markets we operate; the extent, timing and
overall effects of competition in our industry; the impact of new, emerging or competing technologies; material changes in the communications industry that could adversely affect vendor
relationships with equipment and network suppliers and customer relationships with wholesale customers; unfavorable results of litigation or intellectual property infringement claims
asserted against us; unanticipated increases or other changes in our future cash requirements; the effects of federal and state legislation, and rules and regulations governing the
communications industry; the impact of equipment failure, natural disasters or terrorist acts; and those additional factors set forth under the caption “Risk Factors” and other factors
described in our filings with the SEC, including under the section “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Form 10-K for the
fiscal period ended December 31, 2019, and under the section “Risk Factors” in our Form 10-Q for the fiscal periods ended March 31, June 30, and September 30, 2020, which are
incorporated by reference herein.
RigNet undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this presentation.
You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation.
All forward-looking statements are qualified in their entirety by this cautionary statement.
In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP measures are in addition to, not a substitute for or superior to,
measures of financial performance prepared in accordance with GAAP. Definitions of these non-GAAP measures and reconciliations between certain GAAP and non-GAAP measures
are included in the appendix to this presentation.
2
3333 Enabling Intelligence. Delivering Results.
RigNet at a GlanceManaged Communications (MCS) Apps & IoT Systems Integration (SI)
1,190 remote communications sites
> 50 countries and 500 customers
Onshore and offshore
Largest over-water owned multi-
layer infrastructure
2019 Revenue: $165 MM (68%)
11,000 IoT/SCADA sites
Intelie real-time machine learning
Enhanced cybersecurity services
Crew welfare and morale
Safety and surveillance
2019 Revenue: $35 MM (15%)
Large-scale onshore and offshore
telecom projects
Design, procure, assemble, test
Fire and gas risk control
$12.4 MM project backlog (9/30/20)
2019 Revenue: $43 MM (18%)
4444 Enabling Intelligence. Delivering Results.
RigNet’s Strategic Transformation
4
Offshore drilling rigs
Production sites
Land sites
International expansion
Systems Integration
Up the stack
Across the value
chain
2016-20192013-2015To 2013 2020+ Vision
Vertical diversification
Core MCS growth
Apps & IoT expansion
5555 Enabling Intelligence. Delivering Results.
Transformation Driving Business Performance
5
164,238 171,574 164,857
105,971
15,626
25,713 35,368
25,915
25,028
41,567 42,706
28,988
29,669 34,793 41,100
25,588
-
50,000
100,000
150,000
200,000
250,000
300,000
2017 2018 2019 9M 2020
Managed Services Apps & IoT SI AEBITDA
204,892
238,854 242,931
18%
15%
68%
17%
11%
72%
12%
8%
80%
18%
16%
66%
160,874
2017 – 2019 Top-line growth of 19%
Protect the Core MCS
• Steady contribution from MCS
Move up the Stack & Diversify
• Growing contribution from Apps & IoT
• 2017 – 2019 absolute revenue growth
of 126%
• From 8% of total revenue in 2017 to
15% of total revenue in 2019
Improve SI performance
• 2017 – 2019 SI revenue growth 71%
2017 – 2019 Growth in AEBITDA
margin from 14% to 17%
Note: Percentages may not total 100% due to rounding
1st 9 Months
Revenue
6666 Enabling Intelligence. Delivering Results.
RigNet 3Q20 Financial Highlights
Net Loss
Earnings per share
Adjusted Net Loss*
Adjusted Earnings per Share*
Total Revenues
Segment** Operating Income
Gross Margin***
Adjusted EBITDA***
3Q20 vs. 3Q192Q20 vs. 2Q20
($5,537)
($0.25)
($1,701)
($0.08)
$48,721
$8,610
38.4%
$7,536
1,021%
1,150%
244%
300%
20%
36%
309 bps
32%
28%
19%
61%
62%
9%
7%
153 bps
22%
$ Thousands, except Earnings
per share
* Excludes impact of $3.8 million non-cash goodwill impairment in 3Q20
** Segments defined as MCS, Apps/IoT, SI; values are rounded; excludes impact of $3.8 million non-cash goodwill impairment in 3Q20
*** See Appendix for definitions and calculation of non-GAAP metrics Segment Operating Income, Adjusted EBITDA, and Gross Margin
Numbers subject to rounding
3Q19
($494)
($0.02)
($494)
($0.02)
$60,993
$13,555
41.5%
$11,010
($4,322)
($0.21)
($4,322)
($0.21)
$53,391
$9,249
36.9%
$9,701
7777 Enabling Intelligence. Delivering Results.
Short-term Outlook for RigNet’s Segments
• MCS
• IoT
• Intelie
• Other Apps
• SI
7
• Offshore drilling activity slowed in 1Q and 2Q, but appears to have steadied; a
number of contractors are restructuring, but no noticeable impact to RigNet
• Offshore and Middle East production operations remain strong; FPSO investment
continues, though installations have been pushed farther into 2021
• US Land activity at a historic low, but not a core part of RigNet’s business
• Little change to IoT environment in the mid-stream; business relatively steady
• New project decision-making has slowed
• R&D spend by Brazilian oil companies reduced as a function of lower oil revenues
leading to lower R&D requirements
• AVI inquiries up as customers looking to do more remotely
• Cybersecurity continues to be an important customer topic
• Existing construction projects have continued despite COVID-19
• Significant bidding activity, but few awards – many projects deferred to 2021
• Change orders on existing projects continue
8888 Enabling Intelligence. Delivering Results.
Managed Communications Services (MCS)
191 184 185 182 184 185 196 194 176
332 347 368 375 384 385 386 343 359
187 181 180 183 184 171 177 165 173
640 611 627 644 634 599 592527 482
0
200
400
600
800
1000
1200
1400
1600
3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Quarterly Site Count
Offshore Rigs Offshore Production Maritime Other
1,386 1,2291,350
• 66% of 9M20 total revenues; 36% gross
margin
• End-to-end service assuring maximum
uptime, reliability and security that
enables:
– Fully-managed voice and data networks
– Video surveillance and collaboration
– Real-time operational monitoring
– Software Defined Wide Area Network (SD-
WAN)
– Global 24/7 NOC
• Own and install communications
infrastructure
• Satellite backhaul with L, C, Ka, and Ku
bands, O3B, fiber, microwave, and LTE
1,323 1,360 1,384
68%
32%
Jackups Floaters
RigNet’s 3Q20
Offshore Rig Split
43
140
RigNet Other
RNET’s Share of
FPSO Market*27%
33%
0%
10%
20%
30%
40%
50%
60%
Jackups Floaters
RigNet’s 3Q20Offshore Global
Rig Market Share
* Note: Rig market share based on addressable market based on marketed rigs. FPSO market share
includes 11 FPSOs committed, but not yet generating revenue. Source: Company, RigLogix
1,340 1,351 1,190
9999 Enabling Intelligence. Delivering Results.
Managed Communications Services (MCS)
15%
34%
30%
23%
15%
10%
41%20%
13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Percentage of Site Count Percentage* MCS Revenue
Site Count Contribution to MCS Revenue3Q20 MCS Revenue = $31.9 MM (66% of Total)
Total Sites
1,190
* Percentages may not total 100% due to rounding
Source: Company
Offshore Rigs
Maritime
Production
(platforms, FPSOs)
Non-site specific
(Equip. sales, etc.)
Other
30%
23%
47%
US Land Drilling
& Production
International Drilling &
Production
Misc. Sites
(remotes offices, etc.)
“Other” Sites Revenue
Contribution to Category
• Offshore rigs represent the smallest number of sites, but
largest revenue contribution
• “Other” sites represent 41% of sites, but only 20% of
revenue
• US land drilling and production site contribution has held
up well despite the current oil price environment
• In 3Q20, US Land & Production represented only about
6% of total of MCS revenue and < 4% of total revenue
10101010 Enabling Intelligence. Delivering Results.
20%
22%
24%
26%
28%
30%
32%
34%
12/31/2016 12/31/2017 12/31/2018 3/31/2020 6/30/2020 9/30/2020
RigNet Global Market Share Trends – Offshore Rigs
10
20%
22%
24%
26%
28%
30%
32%
34%
12/31/2016 12/31/2017 12/31/2018 3/31/2020 6/30/2020 9/30/2020
Jackups Floaters
Source: Company, RigLogix. Based on # of units that were actively marketed
Decline in jackup market share in 3Q20 largely attributable to a
number of rigs warm stacking in Mexico due to local oil company
issues. These rigs remain RigNet customers and when activity
resumes, we expect to restart service.
Increase in floater market share in 3Q20 largely attributable to
RigNet’s strong presence in markets where activity remains strong
despite the current oil price environment.
11111111 Enabling Intelligence. Delivering Results.
FPSOs Contribute to MCS Growth
11
Brazil
Australia
West
Africa
US
GOMSE
Asia
North
Sea
Canada
11
* Including operational and installed with future activations through 12/31/20; not including FLNG
Source: Company, RigLogix
1
2
7
11
4
FPSO*s as of
September 30, 2020
3310
140
10
Current RigNet
Non RigNet
Future
Contracted
RigNet
~23%
Global
Market
Share
Current RigNet FPSO
Future Contracted RigNet FPSO
Current RigNet FLNG
Future RigNet FLNG
Source: Company, RigLogix
Generally big bandwidth requirements: 10-20 Mbps upload / 10 – 20 Mbps download
1
7
12121212 Enabling Intelligence. Delivering Results.
Global FPSO Market Planned Expansion through 2024
12
1
4
1
4
2
4
11
5
6
6
2
4
6
3
5
1
2
1
12
2
1
32
2
9
23
16 1617
0
5
10
15
20
25
2020 2021 2022 2023 2024
Africa APAC Latin/South America ME NAM Europe
• 81 FPSOs are currently
scheduled to be installed
over the next 5 years
• Most significant locations
are in Latin and South
America (predominantly
Brazil) and APAC
• Significant future
opportunities for RigNet
across our three business
segments
Source: RigLogix
13131313 Enabling Intelligence. Delivering Results.
Petrobras FPSO Revenue Startup (MCS)
13
FPSO 1
FPSO 2
FPSO 3
FPSO 4
FPSO 5
FPSO 6
FPSO 7
FPSO 8
FPSO 9
FPSO 10
Feb. Mar.Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan.
2020 2021
• 10 FPSOs in Brazil set to come online; 2 current and 7 expected to commence before end of
1Q21
• Resilient even in current price environment, but timing has slipped ~6 months due to oil price
shock combined with COVID-19 impact on construction, installation, and commissioning
• O3B service which requires a 30-day consecutive ‘burn-in’ test before service “officially” starts
Generating revenue
Scheduled – subject
to delay
Beyond
Source: Company
1414 Enabling Intelligence. Delivering Results.
FPSOs Also Key Contributors to RigNet’s SI
37 Different network
design projects for
FPSOs since 2010
19
12
2
2
2Brazil
West Africa
Europe
APAC
NAM
Photo: FleetMon.com
Source: Company
15
Intelie Live Platform – Real-Time Operations Centers for FPSOs
CRUDE FLOW
SEPARATION
FLARE GAS
SAFETY SYSTEMS
16161616 Enabling Intelligence. Delivering Results.
Systems Integration (SI)• 18% of 9M20 total revenue; 17% gross margin
• $12.4 million in project backlog as of 9/30/20
• Design, Engineering, Procurement, Assembly, Testing, and in some
cases, Construction
• Fully-managed turnkey capital integration projects
– Voice and data communications, radio, safety, and security subsystems
– Early Works and Permanent Plant systems/infrastructure
– Onshore and Offshore – for new and existing assets
– Platforms, FPSOs, Refineries, LNG and Ethane Cracker facilities
EPCsOperators
17171717 Enabling Intelligence. Delivering Results.17
Apps & IoT: RigNet’s Fastest Growing Segment
6.5
14.1
20.4
20.2
12.8
1.5
5.3
15.1
13.1
0
5
10
15
20
25
30
35
40
2016 2017 2018 2019 9M20
Apps & IoT Revenue Growth
15.6
25.7
35.4
Apps
IoT
25.9
$ million
+141%
+65%
• 15% of 2019 total revenue; 16% of 9M20 total
revenue
• Segment margins at 50%+; individual SaaS
solutions can exceed 70%
• 3Q20 Split: 52% Apps / 48% IoT
• 13 of Top 20 Customers purchased an Apps &IoT
solution in addition to MCS or SI
• Competitively distinctive, particularly with respect
to Intelie (real-time machine learning) and
Enhanced Cybersecurity Services
• Excellent entrée into customers – initial Intelie
rollout led directly to recent global fleet MCS win
+38%
18181818 Enabling Intelligence. Delivering Results.
0
5
10
15
20
25
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Vo
lum
e p
er
in-u
se
SIM
(M
B/m
on
th)
Ag
gre
ga
te V
olu
me
(M
B/m
on
th)
BGAN M2M Usage by Month
RigNet’s IoT Business• Revenue: $20.2 MM in 2019; $12.8 MM
through 9M20
• Gross margins range from ~35% - ~50%
• Multi-network capabilities including BGAN M2M, ThurayalIP, global cellular, and VSAT provides data and voice capabilities
• Services available globally, but largely concentrated in North America
• Wide range of terminals for both mobile and fixed applications providing two-way IP data connectivity for low-volume, high frequency bursts
• Capable of integrating with apps like AVI to allow remote video monitoring
• OneView360 provides detailed, transparent visibility of the spend and usage across multiple platforms
18
Over 11,000
IoT/SCADA sites
19191919 Enabling Intelligence. Delivering Results.
RigNet’s App Business
• Revenues: $15.1 MM in 2019; $13.1 MM through 9M20
• RigNet’s fast growing segment: +907%from 2017 - 2019
• SaaS-based revenue
• Gross margins 70%+
• Includes RigNet’s
◦ AVI – Advanced Video Intelligence
◦ CrewConnectivity Suite – CrewFlix, CrewTainement, CrewHotSpot, CrewWiFi
◦ MetOcean – Real-time offshore weather monitoring
◦ Enhanced Cybersecurity Services –including Cyphre, our real-time hardware-based unassailable encryption
◦ Intelie – Real-time stream analytics with advanced intelligence
19
20202020 Enabling Intelligence. Delivering Results.
Cybersecurity: RigNet’s ECS Protects Critical Infrastructure
20
External threats are multiplying and arecompounded by the fast-growing threat ofransomware attacks. In the energy sectorthey are being complicated by the relativelyhigh level of in-direct attacks (frompartnerships and joint ventures breaches,for example).
Source: Accenture
3,280
3,025
1,671
1,716
3,087
1,6181,321
1,178
32 67 68 105 94 60 116 94
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Jan Feb Mar Apr May Jun Jul Aug
RigNet’s ECS Intervention in Sample Customer(# incidents)
Direct customer help to stop attack
RigNet SOC
handled w/o
customer
https://www.accenture.com/us-en/blogs/accenture-energy/why-safeguarding-the-internet-against-cyber-resilience-is-important-for-energy-industry-growth
https://www2.deloitte.com/us/en/insights/industry/oil-and-gas/cybersecurity-in-oil-and-gas-upstream-sector.html
(cumulative 2019-2023, $Bn)
Energy Under Cyber Attack
21212121 Enabling Intelligence. Delivering Results.
What Is RigNet’s Intelie?
• Real-time stream analytics tool enabling operations, engineering, executives, etc. to optimize critical operations
• Acquired in 2018, but serving customers since 2008
• Collects data from any source, then filters, time-syncs, correlates, and transforms it into actionable intelligence
• Able to process millions of data inputs per second
• Intelie Pipes is one of the world’s most advanced stream processing and query languages
• Customers license the platform and then subscribe to ‘apps’
• Applicable to any industry, not just oil and gas
21
More than 45 Intelie apps in the Intelie Marketplace are already
available for Offshore and Onshore Drilling, Frac’ing Operations, Well
Planning, Fuel Optimization, Bank Fraud Detection, Mining
Operations, etc.
Or match your SME with our Data Scientists and build your own app!
Demo QR for
phones
22222222 Enabling Intelligence. Delivering Results.
Commercializing
22
Intelie LIVE Platform for real-time, advanced analytics“Intelie is to real-time, machine learning what Excel is to financial analysis”
Safety/Environment Operations
Non-EnergyEnergy
Hourly/daily sales
predictions
2010
ATM fraud detection
2010
Mud weight prediction
in pre-salt
2013
Planning
Basic Well Design
2016
Maritime vessel fuel
prediction, fuel loss
prevention
2015
Drilling ROP prediction
2016
Emissions monitoring
and prediction
2016
Drilling NPT reduction/
problem insight
2016
Drilling safety
enhancement
2018
Pressure pumping
monitoring and
maintenance
2018
Drillship DP monitoring
2018
People and asset
tracking
2018
BOP negative pressure
testing
2018
Car rental monitoring
2013
Manufacturing utilities
monitoring and
optimization
2019
a RigNet company
Intelie
Plus:• Multiple additional Super-majors
• Major onshore pressure pumping
company
• Non-energy companies
SEEDS Drilling,
Workover & Completion
2017
Well Barrier
2018
Not comprehensive
“A
pp
s”
0
5
10
2018 2019
$ m
illio
n
Intelie Revenues
7.7
3.2
+141%
23232323 Enabling Intelligence. Delivering Results.
Intelie Use Cases
23
Three specific use cases:
- Diagnostics for subsea
BOPs
- Fuel management for
seagoing vessels
- Pressure integrity at the
wellhead
Intelie can not only be
accessed in the office or a
real-time operations center,
live dashboards can be
accessed directly from a
user’s Apple or Android
phone.
For a demonstration, use
your phone to take a
picture of the QR code and
go to the website.
24242424 Enabling Intelligence. Delivering Results.
• Awarded 5-year U.S. General Services Administration (GSA) Multiple Award Schedule (MAS) for Information Technology Professional Services contract
◦ Renewable for up to 20 years total
◦ Enables US Federal, State, and Local government agencies to access networking solutions, cybersecurity, and machine learning solutions
◦ Key critical first step to becoming an approved US government supplier
• RigNet’s Cyphre, our ultra-secure, hardware-based cybersecurity solution, was awarded Federal Information Processing Standard 140-2 (FIPS 140-2) security validation
◦ Recognized worldwide as one of the highest standards for security validation
◦ Significant interest in US and Internationally in RigNet’s Enhanced Cybersecurity Services
◦ Cyphre also awarded new patent on protecting session keys from common memory attacks by ‘blackening’ them
• Opportunities
◦ Successful technical proof of concept for a secure government phone system
◦ Successful Cyphre POVs demonstrated in several regions in the Middle East
◦ Significant interest in US and Internationally in RigNet’s Enhanced Cybersecurity Services including a fully staffed Security Control Center (SOC)
◦ Partnership agreements with prime contractors
24
RigNet’s Expansion into Government
25252525 Enabling Intelligence. Delivering Results.
RigNet’s Partnership with CACI
25
CACI’s SteelBox is a
secure mobile
communications solution
that provides encrypted
instant text messaging and
calling between two
devices where each is
running the app.
RigNet provides “BreakOut”The “Break Out” feature allows users to make
encrypted calls to devices without the
SteelBox app. The SteelBox end of the call
remains encrypted and secure for calls made
to users in the continental United States.
• RigNet’s first contract to provide services to the U.S. Government through a partnership with CACI, a $5 billion defense contractor
• SteelBox designed to help protect Controlled Unclassified Information (CUI) flows between government-issued mobile devices; replaces other less secure social media communications channels
• FIPS 140-2 compliant; FedRamp-certified
• Backed by partnerships with Microsoft and Blackberry…and RigNet
• The BreakOut feature, provided over RigNet’s secure MPLS backbone, allows Government users to call devices (mobile or land) not on the Government network
• CACI is responsible for sales efforts
• RigNet receives a per-subscriber fee
Addressable market of > 4 MM
Government-issued mobile devices*
* Source: CACI press release dated 7.23.20 https://investor.caci.com/news/news-details/2020/CACI-
Expands-SteelBox-App-Secure-Mobile-Communications-Connectivity-with-RigNet-Partnership/default.aspx
26262626 Enabling Intelligence. Delivering Results.
Capitalized Labor / Internal Use
Success Based
Maintenance
Capital Expenditures through September 30, 2020
• Tied to new revenue generation
• Antennas, routers, switches, IoT devices, etc. to be installed at customer sites
26
$6.3 MM
$2.3 MM
$0.1 MM
2020 YTD Total:
$8.8 MM
• Largely capitalized software development related to Intelie
• Corporate IT initiatives
• 2019 Total: $25.5 MM
• 2020 has so far been a year of significantly reduced activity resulting in less capital spending
27272727 Enabling Intelligence. Delivering Results.
Debt Structure and Liquidity at 9/30/20
14.0 12.0
92.488.7
2.32.1
6.36.3
115.0109.1
0
20
40
60
80
100
120
Column1
PPP
Vendor Finance/Other, Net
Revolver
Term Loan
27
• February 2020 – Amended and extended existing credit agreement
◦ Created new term loan: $16 MM
› Amortizing $2 MM per quarter beginning 2Q20
› Maturity 3/31/2022
◦ Expanded revolver: $100 MM
› Maturity 8/31/2022
◦ Leverage and fixed charge covenants
› Leverage: 3.25X Adjusted EBITDA through 3Q20, stepping down to 3.00X through 2Q2021, stepping down to 2.75X through maturity
› Fixed charge: Minimum 1.25
› Ratios at 6/30/20: 3.03 Leverage, 2.32 Fixed charge
◦ Interest: maximum of LIBOR + 325 bps
• Total debt at 9/30/20: $109,077 k including
◦ Term balance: $ 12,000
◦ Revolver: $ 88,700
◦ Vendor finance arrangement: $ 2,328
◦ Paycheck Protection Program: $ 6,298
◦ Lease and unamortized costs, net ($ 250)
• Current maturities included in total debt at 9/30/20: $8,836 k
$ million
• PPP expected to be fully
forgiven
• Waiver from Bank group to
exclude PPP funds from Bank
Indebtedness secured in
September.
• Waiver valid through
forgiveness or 1Q21, but we
believe extendible if
forgiveness decision delayed.
6/30/20 9/30/20
28282828 Enabling Intelligence. Delivering Results.
RigNet and Corporate Responsibility Internally Focused…
• Focused on Safety
◦ Over 943 k employee hours worked through 3Q20 with 0 Recordable and 0 Lost-time incident
◦ Our HSE management system is ISO 9001, 14001, and 45001 certified
◦ Smooth transition to work from home during COVID-19
28
…While Enabling Our Customers Success
• Our redundant, critical managed communications services are designed to ensure that our customers are always in communication with field offices, headquarters, and government agencies in the event of emergencies
• Our IoT monitoring of pipeline infrastructure not only helps to secure valuable infrastructure, but provides customers with opportunities to monitor and mitigate potential environmental concerns
• Intelie, our real-time, machine learning, optimizes processes and operations to increase efficiency and productivity while saving money and eliminating waste. For example: Intelie helped one deepwater drilling customer reduce NPT (non-productive time) by 2.5%. Benefits include:
◦ Cost savings by reducing fuelconsumption and accompanyingemissions
◦ Increased revenue acrossthe fleet by millions of $$which should fall directlyto the bottom line
• Focused on Quality
◦ RigNet is ISO 14001 certified in the UK and Brazil
• Focused on Employee Engagement
◦ Our engagement scores, according to the internationally recognized Gallup survey, have increased > 160% since 2017
• Focused on Providing Opportunities
◦ We recently partnered with the U.S. Special Operations Command(“USSOCOM”) Warrior Care Program - Care Coalition to place transitioning Special Operation Forces service members in fellowships at RigNet
29292929 Enabling Intelligence. Delivering Results.29
Digital transformation strategies driving
increased need for “ultra-secure” bandwidth and
actionable intelligence
Unique, holistic, end-to-end solutions provider
with a growing portfolio of advanced technology
& software, services, and expertise
Leading position in oil and gas with growing
presence in other verticals
Global footprint with expanding universe of
significant long-term, regional partnerships
Rapidly growing Apps & IoT differentiation
Focus on deleveraging and strengthening
balance sheet
RigNet: Well-Positioned for Further Success
RigNet delivers the advanced software,
optimized industry solutions, and ultra-
secure communications infrastructure
that allows the oil and gas industry, and
others, to finally realize the business
results of digital transformation.
Enabling Intelligence. Delivering Results.
15115 Park Row, Suite 300 |Houston, TX 77084 | USA
www.rig.net
NASDAQ: RNET
Investor Contact:
Lee M. Ahlstrom
SVP & CFO
281.674.0100
3131 Enabling Intelligence. Delivering Results.
RigNet Non-GAAP ReconciliationAdjusted EBITDA
Adjusted EBITDA is a financial measure that is not calculated in accordance with generally accepted accounting principles, or GAAP. We refer you to the Company’s recent 10-K filing for the
year ended December 31, 2019 for a more detailed discussion of the uses and limitations of Adjusted EBITDA.
We define Adjusted EBITDA as net loss plus (minus) interest expense; income tax expense (benefit); depreciation and amortization; impairment of goodwill, intangibles, property, plant and
equipment; foreign exchange impact of intercompany financing activities; (gain) loss on sales of property, plant and equipment, net of retirements; stock-based compensation expense;
restructuring charges; change in fair value of earn-outs and contingent consideration; executive departure costs; acquisition costs; the GX Dispute; GX Dispute Phase II costs and non-
recurring items.
Gross Margin
We define Gross Margin for any period as the difference between Revenues and Costs of Revenues (excluding Depreciation and Amortization); that difference divided
by Revenues.
Segment Operating Income
We define Segment Operating Income for any period as the sum of reporting segment Revenues less the sum of segment Cost of Revenue, Depreciation and
Amortization, and SG&A, excluding any impairment charges.
RIGNET, INC.
Reconciliation of Net Loss to Adjusted EBITDA
(Unaudited)
32323232 Enabling Intelligence. Delivering Results.
Strong Executive Management Team
32
Steve PickettCEO & President
Joined May 2016
Brendan SullivanCTO, CIO, Cybersecurity
Business LeadJoined May 2017
Brad EastmanSVP, General
CounselJoined November 2017
Errol OlivierSVP, Chief Operating
OfficerJoined January 2020
Ed TraupmanSVP Products & Services
Joined November 2016
Egbert ClarkeSVP, Operations
Joined July 2017
Lelio SouzaVP, Intelie
Joined March 2018
Jackson MarkleyVP, Corporate
DevelopmentJoined June 2018
Lee M. AhlstromSVP & CFO
Joined August 2018
Keith FrederickChief Information Security
OfficerJoined November 2017
Jamie Barnett Rear Admiral USN (Retired)
SVP, Government ServicesJoined January 2019
33333333 Enabling Intelligence. Delivering Results.
O I L & G AS D R I L L I N G O I L & G AS O P E R AT O R S C O N T R AC T O R S S E R V I C E C O M P AN I E S O T H E R
RigNet Major Global Customers
34343434 Enabling Intelligence. Delivering Results.34
RigNet’s Apps & IoT: Why Invest?Addressable Digital Oilfield Market
Significant scale: “…the digital oilfield market is poised to
surpass US $30.7 billion by 2020, with
a compound annual growth rate
(CAGR) of 5% from 2015.”1
Customer Value
Fewer people: “… the changes could reduce the number
of jobs [done by a well logger] by more than
25%...”2
Better decisions: “what we’re trying to do is help the
people who make the decisions to make
those decisions with additional support
from the intelligence that we’ve created.”3
Lower costs: “The company’s production unit … has
reduced its noncontractor workforce by
40%, largely through technology updates,
and has cut lease operating expenses 48%
since 2014.…”2
1 https://www.ogj.com/articles/ogfj/print/volume-14/issue-9/features/the-next-generation-
digital-oilfield.html
2 https://www.wsj.com/articles/oils-new-technology-spells-end-of-boom-for-roughnecks-
1531233085
3 https://www.forbes.com/sites/bernardmarr/2019/01/18/the-incredible-ways-shell-uses-
artificial-intelligence-to-help-transform-the-oil-and-gas-giant/#29c278392701
4 https://www.bcg.com/publications/2019/digital-value-oil-gas.aspx
Opportunity for Savings in Upstream Alone is Significant4
35353535 Enabling Intelligence. Delivering Results.
RigNet’s
Cyphre Products:
RigNet’s Cyphre technology delivers next generation network and
data security
CyphreLINK CyphreLOCK
CyphreCERTCyphreKeymanagement
Cyphre Enterprise Channel Partners: • Unique, fully-managed service providing powerful encryption for data in-transit,
data at-rest, and encryption keys
• Delivers best-in-class encryption on all network types (satellite, public internet,
private WAN, cloud, etc.)
• In satellite applications, hardware solution saves ~20 - 40% bandwidth over
traditional software encryption solutions with ultra-low latency
• Always-on protection with “set and forget” administration
• No switching costs; easily integrated into existing data protection technologies
Channel partners reselling
Cyphre in USA, AsiaPacific, and
MENA