Inmarsat Aviation Conference

Aviation Conference Day 1 Inmarsat Aviation Conference Lisbon, June 8-9 2015

AVIATION Conference Lisbon, June 2015 Inmarsat corporate update Rupert Pearce Chief Executive Officer

Our markets Explosive growth in global mobile broadband bleeding into satcomms Source: Cisco VNI Mobile 2014 Global Internet traffic increasing Petabytes per month 51 76 132 2013 2015 2018 Fixed and mobile network deployment continuing globally Need for more capacity and services Capacity and speed Data-rich solutions and apps Need for ubiquitous, reliable connectivity Security On the move In remote areas As back-up Increasing bandwidth and services by connection Increasing satellite communications connections

Our strategy is unchanged Four complementary infrastructure platforms to deliver sustained profitable growth L-band platform Grow value in core markets Innovate to expand growth rate Extend geographic footprint Reposition alongside GX Ka-band platform Next step for current heavy L-band users Diversification into VSAT markets Leadership in aviation passenger connectivity and military Ka services S-band platform European passenger connectivity Unique hybrid satellite/atg network Complements GX aviation (LAN/WAN) Inmarsat-4 Core L-band services Safety Resiliency Inmarsat-5 Core Ka-band services Coverage EU Aviation Network Hybrid S-band network Capacity Global Xpress GX Capacity Highly mobile, agile and resilient High capacity, high speed Passenger Connectivity Inmarsat Gateway delivering value-added solutions for end users Solutions platform leveraging own and third party infrastructure

How are we doing in 2015? Solid performance and good progress in development of growth opportunities Strong end to the year in Q4 14 spilled over into slightly slower Q1 15 Revenues up 1.9% in 2014 and 1.1% in Q1 15 (year-on-year) Maritime, Aviation and Enterprise growth offset by Government contraction Aviation is the star performer 2014 revenue growth 37% Q1 15 revenue growth 22% Strong EBITDA performance (over $700M in 2014) and FCF generation Low peak leverage (under 3x net debt/ebitda) Returning to the FTSE100 this month market cap 4.5 billion

L-band developments Continuing commitment to L-band growth Alphasat fully operational over EMEA Significantly enhanced L-band capabilities across our highest traffic region Platform for delivering new and enhanced services (eg LAISR, Swift Xpress) Creating 4th L-band region (MEAS) by end of 2015 Additional capacity for our highest growth region (eg China, Russia and India) Increase in global capacity for L-band network en route to Inmarsat-6 Inmarsat-6/ICE programmes progressing well Globalisation programme continues 28 new countries in 24 months Product and service innovation accelerating (RFIC/BRM, smart antenna ) Commitment to safety services undimmed (aviation 'trifecta')

GX developments Strong progress delayed by launch programme Successful launch of 5F2 in February Now deployed successfully into geostationary orbit IOT complete and now on way to final orbital location Strong early sales and demos on 5F1 Coverage from West Africa to mid-australia Excellent feedback from early customers and trials Good progress in all other areas Ground stations, idirect, Cisco VAR appointments, training and readiness Terminal developments (eg Honeywell GX aviation terminals) We're ready when 5F3 is ready!

5F3 update Centenario (MexSat) launch failure delays 5F3 Awaiting result of Russian State Commission and ILS FROB reports and recommendations Early signs suggest rapid turn-around and RTF Probably a known problem encountered previously Probably a quick work around solution We probably have the opportunity to be the RTF payload Estimated launch delay 3-4 months We are developing other options if delay is longer or Proton is withdrawn from market 5F4 on track for Q2 2016 for launch Q3 2016

S-band developments Strong progress for revolutionary EU network Satellite programme on track for Q4 2016 launch ACGC technology and network partnering decisions imminent aiming for early 2017 CSI Regulatory risk retirement on track Strong airline industry support and discussions ACGC for short-haul paxcon GX/ACGC for wider area needs

Solutions platform developments First Inmarsat Developer Conference a roaring success Initiated new, open technology strategy Opening up Inmarsat platforms to developers Encouraging new ideas that add value for customers and drive airtime traffic First conference held in London with over 300 developers attending Strong focus on opportunities created by GX platform Gateway programme remains on track for CSI at GX global CSI

GX testing underway First flights flown SB-Safety certification on the way Hawaiian airlines Boeing trials ADS-C flight tracking Australasian implementation 2015 is already an exciting year for Aviation GX successfully tested in flight over Honeywell s Jet-Wave hardware Hawaiian Airlines signs contract to test SB-Safety over Cobham Aviator terminals on its Boeing 767 fleet. FAA certification expected early 2016 High Data Rate capability for SwiftBroadband launched doubling the speed available through existing Honeywell and Eclipse equipment Airservices Australia implements flight tracking using ADS-C with Qantas and Virgin Australia New Zealand also joined Business unit growth from less than 40 in 2014 to over 80 by year end 2015

Aviation is highly strategic for Inmarsat High growth potential for the foreseeable future Enormously exciting opportunities loom Next generation cockpit/aos products and services Internationalisation and growth in BAS Next generation safety and related services Emergence of CAT paxcom as new substantial global market We will continue to invest to support long-term success You our partners are vital to us to ensure success

AVIATION Conference Lisbon, June 2015 Inmarsat Aviation: your partner for Aviation connectivity Leo Mondale President, Inmarsat Aviation

Aviation is ready for Broadband We are well positioned to deliver Right time: Broadband is transitioning from want to need Right place: We have been in aviation for decades. Right offerings: BGA, SOS and CAT Right partners: Infrastructure,technology, service, value-adds

Business Aviation is a growth story Number of aircraft installed with SwiftBroadband has grown 112% CAGR from 2009 to 2014 Data usage has grown 18% CAGR from 2012 to 2014 The future: Upgrade paths for SwiftBroadband Solutions built for the Rotary, GA, UAV segments Technology developments to enhance performance and customer value

Safety and Operational Services Powering Aviation Safety Secure, Global, Informed Expand Inmarsat s position as the thought leader for aviation safety and operations Classic Aero is the recognized global leader SwiftBroadband - Safety is the aviation standard for the future, up and running today! Secure safety networks Inform worldwide flight operations with real time information

What the customer wants Quality, consistency, value Today s customer expects exactly the same connectivity experience in the sky as on the ground They will want tomorrow s technology into today s skies Quality driven by availability, speed, coverage, consistency Services have to offer value for money

Inmarsat has the commitment and the ability to invest now to meet future need Continuous investment and technology developments will be key to success Our networks are designed and built specifically for global mobility We can, and are, investing in our networks to ensure they meets the needs of the aviation markets today and in the future Connectivity driven technology will align better with aviation technology Inmarsat has the focus, the tools, and the drive to lead in the aviation connectivity market

Over $2bn in investment and innovation for the future We re committed to aviation financially and structurally Technology innovation GX Gateway Cisco-developed platform Technology developments: Kymeta antenna HDR antenna for business aviation SwiftBroadband Safety $1.5bn investment +F4 on its way Global Xpress Commercial service worldwide in 2015 A single network backed up with a two receiver handover system to ensure we never cut off or drop out Revolution in cabin and flight deck communications EU Aviation Network Fit for purpose solution for high density routes over Europe S-band MSS and air-to-ground component 4G LTE technology will deliver superior performance to passengers. Over 25Gbps across EU Low total cost of ownership small lightweight terminals + capacity augmentation Commercial service in late early 2017

We are different Partnership will be a differentiator

Cabin Cockpit An eco-system of partners The best solution to meet airline needs We re accountable for delivering the quality of service the market needs Our market leadership is founded on the strengths of our partners from infrastructure and equipment, installation and maintenance to value-added services, network systems and customer service... We are accountable for the ultimate quality of the experience for the passenger, for the crew, the pilots, the air traffic providers. This is our guarantee Business Aviation Airlines Together, we deliver the best overall connectivity solution to our customers Passengers

Inmarsat is the winning partner for the long-term Success in aviation connectivity will require major, long term investment in infrastructure and enabling technologies That is not enough quality of the end to end service and value for money are also indispensable Customer and partner relationships will be long-term and will require constant recommitment With Inmarsat you chose a partner who delivers now and will also deliver quality consistency and cost-efficiency in 20 years time Powering Aviation Connectivity

AVIATION Conference Lisbon, June 2015 Global Xpress David Schoen SVP, Aviation Technology

Inmarsat-5 global coverage Over 20 GHz of Globally Distributed Bandwidth An additional 5 GHz of steerable high capacity payload Atlantic Ocean Lino Lakes (US) and Winnipeg (CA) Indian Ocean Fucino (IT) and Nemea (GR) Including 4th GX Satellite being built for launch, availability in 2016 I5-F3 I5-F2 I5-F1 Pacific Ocean Warkworth and Auckland (NZ) I5-F3

High availability ground network Six SAS sites two in each satellite region, fully redundant only one SAS active at a time to run the network Redundant network connecting all GX ground stations, operations centers and I-4 gateways For all user communities through Meet Me Point (MMP) connections Ensures uniform and global service idirect leading delivery of ground network and core modules for user equipment Fucino, Italy Nemea, Greece

GX network milestones Satellites I-5 F1 IOR Operational I-5 F2 AOR Expected operational in August 2015 I-5 F3 POR Launch date to be confirmed Service operational in 2015 Services Activate, provision, fulfil, bill, support (assurance) change and terminate (partners, VARs, application providers, customers, and subscribers) Subscription service packages are defined and purchased from a product catalogue within the reseller portal for an operator

GX Program Timeline 2013 2014 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Spacecraft F1 Launch F1 Launch F1 test F1 in service F2 Launch 01 Feb F2 park, test, drift F3 Launch F2 avail GX CSI F4 Launch F4 test Ground stations IOR AOR POR Complete Terminals First Lab Unit CDR Prototype Unit Terminal Test Qual/Cert Test System Test Trials Trials STC, CTA, OTAT, FTA Prod Term Black label hardware 31 July 6 VAR Readiness I&T planning with VARs complete GX Gateway Integration Complete VAR Readiness Training Beta Testing E2E

GX is ready for Maritime Thoroughly tested at sea

GX is ready for Broadcasters From the field to cover major news stories First Live News Broadcast From the Greek Elections January 2015 And recently from Nepal

GX is ready for Government Rugged and reliable

Flight tests underway

Aviation GX ready for service Launch capabilities GX Gateway Integrated Services Targeted Support

Flexible integration architecture Start with standard portals, then integrate workflow into existing systems Full Set of APIs Gateway portals Partner BSS

Extensive performance testing campaigns Results meet or exceed expectations

AVIATION Conference Lisbon, June 2015 European Aviation Communications Mario Franci VP, European Aviation Communications

Inmarsat EU Aviation Network (EUAN) One part of a unique global portfolio For high-capacity connectivity for Europe, Inmarsat will combine an S-band satellite infrastructure with a ground component of the network (Aviation Complementary Ground Component, ACGC) The EU Aviation Network is a 4G LTE mobile terrestrial network: Exploits Inmarsat s 30MHz (2x 15MHz) S-band spectrum allocation in all 28 EU member states i.e. double spectrum of Ka-band satellite, 10x Gogo USA air-to-ground Adapted to work with fast-flying devices Phased roll-out of 200-400 cell sites across EU Available from 1Q17 Integrated with Inmarsat s wider Ka-band satellite network and ISP/back office solutions The EU Aviation Network will be built in partnership with a Tier-1 Telco operator, network technology suppliers and OBE manufacturers

Inmarsat EU Aviation Network (EUAN) One part of a unique global portfolio S-band High speed cabin connectivity over EU L-band Worldwide safety and operations to the cockpit Ka-band GX Ideally suited to larger, long haul aircraft with global cabin connectivity requirements EUAN (ACGC) Complementary S-band ground network over EU and roaming agreements with other regional ATG providers Fit-for-purpose connectivity solutions for any aircraft, anywhere

The advantage of A2G made simple With the possibility to re-use the same spectrum on adjacent cells, and to multiply the cells based on demand, the same spectrum can provide much more capacity than a satellite beam Adding coverage or capacity to a ground network is a relatively cheap task Several options exist to address increasing demand without incurring significant costs: more sites, more site sectors, scalable SW license and dynamic load balancing A corresponding capacity increase for satcom requires an extra satellite = illustrative A2G site coverage = illustrative satellite beam

EU Aviation Network perfect for Europe 4G LTE network technology > Operating at S-band > High performance, high efficiency > Integrated with S-band satellite Superior passenger experience due to high throughput and capacity > Over 25Gbps across the EU > Average 70Mbps per cell > Low operating cost > Low latency > Scalable Superior total cost of ownership > Lightweight, low cost equipment > 90pct (over 100kg) lighter than Ku or Ka-band satellite! > High reliability, low maintenance

Key deliverables and planned programme time line Y/E 2014 Y/E 2015 Y/E 2016 2017and beyond Regulatory MSS Licences filed and principles agreed for licences with key MS Significant proportion of CGC licences secured on satisfactory terms Satellite build Design phase Launch On board equipment Supplier/ technology selection Installation of hardware onto aircraft Ground network and ISP services Supplier/ technology selection Phased roll out based around key anchor customer

S-band satellite progress The investment in the S-band satellite to support the aviation connectivity strategy is a sign of Inmarsat s commitment Inmarsat and Hellas-sat jointly contracted Thales to build an S/Ku/Ka-band satellite S-band payload provides coverage over mainland Europe and Cyprus using 3 spot beams Satellite scheduled to launch in Q4 2016 and currently on track

Flight registers across Europe and density spread Air traffic over mainland Europe is very concentrated around and between large metropolitan areas, with similar patterns for individual airlines

Pan-European coverage to be reached in phases Flight analyses and predictions Roll-out phases (illustrative) Textbox Basic coverage Headline Extended coverage

Example of route coverage A flight path London to Marseille would require about 8 sites to be covered

Capacity to serve customer expectations Coverage is half of the story: to provide the right quality of service you need also capacity, and the capacity requirements can be estimated from usage patterns and users distribution Video Throughput profile (Mbps) 3 Minimum throughput (Mbps) 0.75 Concurrency profile 1:X 4 Expected share 30% Data/ Std. browsing Throughput profile (Mbps) 1 Concurrency profile 1:X 20 Expected share 70% * Illustrative analysis

Service provision components 2 3 1 Authentication Portal and content management OnBoard WiFi /GSM 5 4 Branding Pricing 6 7 8 9 10 Gateway to open Web Billing Customer care Roaming Reporting

EU Aviation Network as a part of a larger picture > The network itself > Airlines engagement and commitment > A viable business model (along the value chain) > An end-to-end solution (OBE, cabin, IFE) > A service proposition (price, value, customer experience) Business to Business to Consumer model > A communication / marketing strategy

AVIATION > Text > Text Airline connectivity: the challenges and opportunities David Coiley VP Europe

Connectivity drives passenger satisfaction NOW Over 50% CAT aircraft will be connected by 2024 10,000+ new connectivity installs in next 10 yrs

What passengers want Quality, consistency, where and when they want it Today s passenger expects exactly the same connectivity experience in the sky as on the ground They will want tomorrow s technology in today s skies This means not just the same quality, but also the same consistency To provide that, you need seamless coverage everywhere

What passengers want

What passengers want To be connected! Connectivity that works Connectivity that evolves Quality and value

The connected aircraft: market trends and features In-flight PED use and gate to gate connectivity Step changes in bandwidth provision Hardware performance and TCO improvements Convergence of IFE and Connectivity; wireless IFE Content/media streaming Inflight sales/ecommerce/ Credit Card Authorisation Business models E-enabled cockpit Mandates such as DLS-IR in Europe FANS, GFT/GADSS and BBiC Satellite-based ATS e.g. IRIS Precursor

What is Inmarsat doing about it? A unique, fit-for-purpose global portfolio designed for Aviation users S-band High speed cabin connectivity over EU L-band Worldwide safety and operations to the cockpit Ka-band GX Ideally suited to larger, long haul aircraft with global cabin connectivity requirements EUAN (ACGC) Complementary S-band ground network over EU and roaming agreements with other regional ATG providers Fit-for-purpose connectivity solutions for any aircraft, anywhere

Drilling down L-band Classic Aero SwiftBroadband SwiftBroadband Safety Ka-band Global Xpress S-band EU Aviation Network

Inmarsat GX global, mobile, reliable Optimised Ka-band satellite coverage! From a single network provider Power optimised for coverage Atlantic Ocean Lino Lakes (US) and Winnipeg (CA) Indian Ocean Fucino (IT) and Nemea (GR) Pacific Ocean Warkworth and Auckland (NZ) Spot beam architecture with frequency re-use to maximize efficiency Reliable and robust links for the users with diversity, under sole Inmarsat control Seamless handovers with mobility protocols Five times the spectrum at Ka than Ku Access entire Ka-band throughout the coverage area Steerable beams to follow demand hour by hour

EU Aviation Network perfect for Europe 4G LTE network technology > Operating at S-band > High performance, high efficiency > Integrated with satellite Superior passenger experience due to high throughput and capacity > Over 25Gbps across the EU > Average 70Mbps per cell > Low operating cost > Low latency > Scalable Superior total cost of ownership > Lightweight, low cost equipment > 90pct (over 100kg) lighter than Ku or Ka-band satellite! > High reliability, low maintenance

The flight deck - operational and safety data VDL Mode 2 augmentation Enabled 4D trajectory based operations Lead aircraft average monthly data use (kb) per aircraft Air traffic flow management Increased efficiency, fuel savings Black box in the cloud On demand data delivery B767 B777 B787 Real time weather Fewer diversions, reduced turbulence injury Engine and airframe monitoring Predictive maintenance Dynamic electronic flight bag Real time insights

Capacity to serve customer expectations Coverage is half of the story: to provide the right quality of service you need also capacity, and the capacity requirements can be estimated from usage patterns and users distribution Video Throughput profile (Mbps) 3 Minimum throughput (Mbps) 0.75 Concurrency profile 1:X 4 Expected share 30% Data/ Std. browsing Throughput profile (Mbps) 1 Concurrency profile 1:X 20 Expected share 70% * Illustrative analysis

IFEC service provision 2 3 1 Authentication Portal and content management OnBoard WiFi /GSM 5 4 Branding Pricing/Packaging 6 7 8 9 10 Gateway to open Web Billing Customer care Roaming Reporting

Superior passenger experience what does it mean? Availability, reliability, easy, meets passenger needs Meet the demands of the business traveller and the tourist flexible service packages for specific and changing customers needs and demographics No traffic jams meet peaks in dense route and hub areas No breaks or outages Built for mobility. A fully redundant network delivering consistent, reliable, global coverage Doesn t penalise your best customers - Inmarsat s intelligent network management adjusts to the user without unnecessary throttling Working together, to maximise passenger satisfaction - Service packaging, operation, management and evolution Future proofing Inmarsat is committed to continuously developing our networks and services

Buckle up! Airline and cabin connectivity, with Inmarsat We are different the best to partner with Reliability. Consistency. Availability. It s Inmarsat s DNA Fit-for-purpose technologies Packaged to meet market expectations, now and in the future

AVIATION Conference Lisbon, June 2015 Business and General Aviation: The growth continues Kurt Weidemeyer VP Business Aviation

SwiftBroadband Safety The dedicated pipe to the flight deck

Crew and operations Applications to ensure Principal arrives on time, every time

Office in the sky Office in the sky Principal continually connected from door to door

Classic Aero > Trusted and most reliable safety services > Two full constellations > Serves all long-haul FANS business jet aircraft with ICAO-approved ADS-C tracking

SwiftBroadband Safety > Trusted and most reliable safety services > Only high speed safety services link > Prioritized IP traffic for safety > Enables future flight deck applications

SwiftBroadband > Original solution for email, light web browsing and social media > The standard in business aviation > Global, consistent, managed mobile network > Real-time EFB, health management and maintenance telemetry

GX Aviation > High-speed broadband 33 Mbps for tail mount antenna on this Bombardier biz jet > Global coverage > Spot beams > Seamless handover between satellites > Optimised ground network

EU Aviation Network > Built to meet passenger s demand > Very high capacity > Affordable > Satellite scheduled to be launched by end 2016

Full range of solutions to suit the needs of any aircraft, anywhere in the world

SIMs MB The growth engine continues Business Aviation connectivity will continue rapid growth and presents an opportunity for further innovative solutions Business Aviation SwiftBroadband aircraft growth Data growth per aircraft per/yr 4,000 5,000 3,000 4,000 2,000 1,000 3,000-2009 2010 2011 2012 2013 2014 2,000 2012 2013 2014 Forward fit equipage. Fit for purpose network. Demand for connectivity

Fleet growth accelerates in all regions Industry deliveries by region 2014-2023 vs. 2024-2033 Connectivity value equation Bandwidth demand Supply/flexibility Cost to equip/serve = Growth for all of us General aviation 168,000 Aircraft* From Cessna to Phenom *Source 2013 GAMA Outlook Helicopter growth 30,428 Helos* +4,800 Deliveries by 2018 *Source 2013 EASA Outlook

Inmarsat can deliver a connectivity solution to suit any aircraft in any region S-band High capacity cabin connectivity over EU L-band Worldwide safety and operations to the cockpit GX Ideally suited to larger, long haul aircraft with global cabin connectivity requirements EU Aviation Network (ACGC) Complementary ground network over EU & roaming agreements with other regional ATG providers

Leveraging Business Aviation in other markets Although needs differ, the offerings are similar BGA mission purpose Ensure VIP gets to destination on time and in comfort to maximise VIP satisfaction CAT mission purpose Ensure flights get to destination on time, efficiently, with satisfied customers to maximise profit

Efficiency Partners provide solutions in Business Aviation that will assist with airline operations Applications developed to ensure full visibility given at all times All phases of flight have additional support Graphical weather flight planning fuel loading Fuel In/Out Crew optimisation Aircraft health / maintenance

Customer satisfaction A satisfied VIP is a satisfied passenger GSM and new voice over IP talk and text solutions IPTV solutions Bandwidth optimisation Increasing applications

The opportunity Safety and cabin drive connectivity. Applications will unlock the next wave of connectivity growth Aircraft health Operational efficiency Personal concierge Unlocking the value chain is the key to maximising the Business Aviation opportunity; made easier by the Inmarsat Gateway

Cabin Cockpit An eco-system of partners The best solution to meet airline needs We re accountable for delivering the quality of service the market needs Our market leadership is founded on the strengths of our partners from infrastructure and equipment, installation and maintenance to value-added services, network systems and customer service... We are accountable for the ultimate quality of the experience for the passenger, for the crew, the pilots, the air traffic providers. This is our guarantee. Business Aviation Airlines Together, we deliver the best overall connectivity solution to our customers Passengers