Inmarsat plc – Investor Day GX Strategy Overview

Leo Mondale

Managing Director, Global Xpress

9th October 2012

Global Xpress – strategic vision

VSAT market valued at $1.9bn

10%+ CAGR projected for 2012-2017 period

GX will be the first global Ka-band VSAT system, global service launch by EOY 2014

GX has long-term performance and cost advantages vs. incumbent Ku-band VSAT afforded by:

• Ka-band technology

• Integrated L-band backup

• Strategic technology partnerships

GX programme on track across all technical, regulatory and commercial plans

Global Xpress – commercial strategy

GX product and service offerings tailored for each target market segment

Go-to-market strategy and personnel in place on a market-by-market basis

Well positioned to capture growth:

• Integrated L-band/Ka-band GX offering is setting the new standard for the Maritime satcom market – speed and reliability in one package

• Government users depend increasingly on data, but lack funding for new government satellite programmes

• Market for air passenger connectivity is emerging, major incremental revenue opportunity for GX

• Significant market opportunities in Energy, Media, Enterprise and other smaller segments, offer further upside

GX will be first and alone

Initiated in 2010, fully funded, on plan - first satellite launch set for Q3 2013, global service launch by EOY 2014

GX is the only announced global Ka system optimized for VSAT

GX will be unique in the market for years, even if competing system emerges

GX has provoked reaction among incumbent Ku-band VSAT providers, endorses GX strategy

Ku-band spot beam response not planned for launch before 2015/2016, doesn’t change basic competitive positioning

Ka-band will outperform Ku-band in the VSAT market place

Ka-band has 9.0x the available bandwidth of Ku-band

• Equivalent satellite costs vs. C or Ku-bands mean lower unit cost for data delivery

Ka-band is far more suited to sharply defined spot beams than Ku-band

• Higher throughputs to smaller terminals than C or Ku-bands

• Much higher throughputs to equivalent terminals

Ka-band is relatively lightly populated and free of interference

• Ku-band is increasingly congested, substantial interference issues

Greater bandwidth and superior reuse capability have always been associated with increased performance and improved economics in radio communications

Comparison of ITU satellite spectrum allocations

0

500

1000

1500

2000

2500

L-band S-band C-band X-band Ku-band Ka-bandUplink (MHz) Downlink (MHz)

Even after accounting for regional variations, sharing requirements, and other regulatory considerations,

spectrum available to GX is several times that available for satellite operations in Ku-band

MH

z

Availability for Mobility

GX vs. typical Ku VSAT

GX designed from the outset as a uniform quality global mobility broadband

• Single carrier operation for maximum output power

Ku-band mobility is a patchwork of differing quality beams – claimed peak performance lower than GX, and only available in a few locations

• Performance variation of more than 10:1 across beams and satellites

• Transponder sharing requires further output power reduction

• Ku-band is very saturated with users – high and rising interference risk

Increase in rain fade between Ku and Ka is more than offset by the increase in RF performance of GX vs. Ku-band

GX operates with pooled capacity and power

• Rain margin “converted” to increased throughput most of the time

• Only a small fraction of users are in rain fade at any time

Many Ku-band links operated in dedicated carrier mode – can optimize for throughput or rain margin, but not both

GX has significant advantages over Ku-band on a stand alone basis - when integrated with L-band, advantages increase

Global Xpress coverage

8

Extended GX coverage via GX steerable beams

GX service available over at least 99% of the coverage area

L-band back up to ensure global coverage

Intelsat coverage, including IS-29e EPIC

9

Remaining Intelsat coverage has low performance compared to GX

Intelsat EPIC available only in a very limited coverage area for HTS

GX Ka-band Ku mobility network

QoS • Single, validated system architecture for mobility

• Seamless beam switchover, minimal outage (<45 sec) during satellite switchover

• A patchwork of satellites not designed for mobility

• Complex delivery value chain lowering availability and accountability

• 5 to 60 min outage for satellite switchover

Coverage • Near global coverage (fully global with L-band) with homogeneous spot beams

• Partial coverage with a collection of regional or semi-global beams from many satellites

Capacity • High frequency reuse

• Separate fwd and rtn transponders

• Steerable beam overlay capacity

• Coherently expandable system

• Reduced capacity per area vs equivalent GX coverage

• Satellite resources shared with broadcasting

• Shared transponder

Spectral Efficiency

• High spot beam performance

• Low interference (Ka not crowded)

• Adaptive coding & modulation ensure high availability even in rain, + L-band back-up

• Lower performance on regional beams

• Interference-limited (Ku crowded)

• Comparable rain performance, but without integrated back-up system

Ku-band competitive response comparison

GX vs. other Ka-band systems

A variety of high throughput satellites (30 to 120 Gbps theoretical capacity): Jupiter (Hughes), Viasat, Ka-Sat (Eutelsat), Yahsat:

• Regional systems designed for consumer broadband, no ocean coverage

• Ground segment, satellite architecture optimized for throughput and capacity, not for coverage or mobility

• No steerable beams

• No or very limited tuning to military Ka-band spectrum

Multiple gateways required (eg 8 for Ka-Sat, 4 for Yahsat, 20 each for Viasat-1 or Jupiter)

Non-Geostationary : O3b

• Coverage limited to 40 relatively small beams between 40°N and 40°S

• Main target is telco trunking

• MSS requires a high-cost terminal with two tracking antennas

Maritime

VSAT

Space Segment,

$135m, 10%

Energy

VSAT

Space Segment,

$152m, 11%

Enterprise

Consumer

, Retail, Other

Segments, $576m,

42%

US DoD,

ROW

Gov't, commerci

al FSS, $502m,

37%

Maritime VSAT Space

Segment, $145m ,

8%

Energy

VSAT Space

Segment, $168m ,

9%

Enterprise,

Consumer,

Retail, Other

Segments, $944m ,

50%

US DoD, ROW Gov't,

commercial FSS,

$643m , 34%

VSAT wholesale satellite capacity purchases

2008 - $1.4bn*

Updated view on VSAT market size

2008 to 2010 CAGR • Maritime ~4%

• Energy ~5%

• Government ~13%

2010 - $1.9bn*

VSAT wholesale satellite capacity purchases

* $1.4bn for 2008 and $1.9bn for 2010 represent the total VSAT wholesale satellite capacity purchases for the year indicated. These estimates are based on the Comsys VSAT Report (11th and 12th editions, respectively), taking total Service Revenue ($5.4bn and $7.3bn, respectively) adjusted for managements’ estimates of hardware revenue, retail mark-up and value added services.

Historical growth rates • Maritime ~22%

• Energy ~9%

• Government ~7%

Growth in VSAT markets since GX announced

The path to $500m in GX wholesale revenues by 2019

Wholesale VSAT market revenue estimated at $1.9bn in 2010, with established growth

Sharp focus on segments most suited to GX advantages:

• Clear coverage requirement

• Remote activity (Maritime, Aviation, Energy)

• Unpredictable and remote coverage requirements (Government)

• Currently served by Ku-band VSAT

• Based on FSS capacity VSAT economic model (Maritime, Energy)

• Already moving to Ka-band (Government)

• Markets emerging (Airline Passenger Connectivity)

Pre-committed traffic: Boeing, installed own VSAT, Honeywell

20% of cumulative plan revenues through

2019 are now either on network or contractually committed

GX distribution strategy - Maritime

Leverage Inmarsat market leadership to attract a new breed of distribution partner

• Already embedded within the maritime industry

• Disciplined focus on value added services powered by or enhanced by connectivity

• Service orientation vs. infrastructure

Focus on segments of the market that most benefit

• Have adopted, or are considering adoption of Ku-band

Deliver the strongest product and service in the industry

• Ka+L-band integrated service

• Sold wholesale as high-quality managed service subscription

• Aggressive development of applications environment

GX distribution strategy – Government

Inmarsat created an entirely new government marketing capability in 2010

Unprecedented access to USG market, especially restricted market, via partnership with Boeing

Boeing teaming with Artel, plus Inmarsat Government US ensure at least two GX bids to every relevant request for proposals under the principal US DoD satellite capacity procurement vehicle, the Future Commercial Satcomms Acquisition contract

Outside of US, GX will be a key component of major worldwide marketing and sales effort by Inmarsat

GX HCM/HCX capabilities designed specifically to

complement and enhance, NOT compete with

WGS, milsatcom capability

Secure, accredited GX Gateways, unique value

particularly to sensor platforms

GX distribution strategy – Aviation

Emerging opportunity to provide airline passenger connectivity offers tremendous growth potential. Highly specialized and regulated environment

Successful business model not yet established, but past experience by others in Ku-band signal that caution is warranted

Collaborative partnership with two leading players, representing alternate business models ensures GX will be bid for virtually any qualified airline opportunity worldwide

OnAir a committed GX Value Added Reseller (VAR) as of September, 2012

Discussions ongoing with other qualified VAR candidates. Additional announcements expected in Q4

Master Distribution Agreement with Honeywell for business aviation leverages broad Honeywell presence in market for equipment and locks-in material GX capacity commitment

GX distribution strategy –Energy

Inmarsat Enterprise Energy business unit is currently #3 in the Energy VSAT market, and has begun introducing GX to its customers and others in the segment. Additional investment is planned to expand and accelerate this process along with GX availability

Negotiations are ongoing with several Energy VSAT providers, notably those focused primarily on Value Added Services (VAS) rather than communications only, and less driven by sunk investment in ground infrastructure

Discussions are also underway with major providers of non-telecoms services to the industry, to identify specific opportunities to support applications and VAS not previously susceptible to remote operations via satellite

GX coverage, performance, and economics will present compelling advantages in the Energy VSAT market over time, but a period of trials and demonstrations will be required to establish Ka-band suitability for the market environment

GX distribution strategy –Enterprise

Enterprise “Super-Segment” offers a wide variety of opportunities via myriad channels specific to certain applications and geographies. Current focus is on distribution related to material early revenue opportunities. Smaller and/or later opportunities are being developed

Traditional Inmarsat segments, such as Media, will be served primarily through existing Inmarsat sales relationships and partners

GX consistent global broadband offering enables a standard telecommunications service equivalent to wireline offerings completely independent of location. Discussions are underway with major corporate network outsource providers to include GX in their roster of standard offerings

Targeting regional and major country specific partnerships and capacity sales - wireless backhaul, corporate and industrial networks

GX: a compelling value proposition

Faster broadband services to smaller, cheaper user equipment

Optimized for coverage and mobility - main drivers to target markets

Backed up by the industry standard L-band service

Long-term performance and cost advantages vs. Ku-band

GX programme on track: • Satellites and launch

• Network and ground segment

• User terminals in all major categories

• Regulatory approvals

• Product and service offerings tailored to target segments

• Channel to market

Dedicated world-class team and strong industry and reseller

partnerships in all target markets committed to deliver on time