Exhibit 99.2
Exhibit 99.2
INTRODUCING IRIDIUM PRIMESM
A New Vision for Hosted Payloads
Iridium Press Conference
September 9, 2013
Overview
Iridium is introducing an exciting new business today, based on our success with AireonSM and auxiliary hosted payloads on Iridium NEXT.
Hosted payloads have become essential to providing affordable options for space missions, and opportunities are expanding
Iridium is introducing a bold new vision for hosted payloads that we believe will positively disrupt the satellite industry, offering far more cost-effective access to space
All Systems Go! For Iridium NEXT
In Development/Production and on Budget
Over $1B spent to-date – and the project is on budget
Ground infrastructure upgrades continue for mid-2014 readiness Broadband service development underway – in space, on ground, and in user terminals
Key Mission Team Partners
Excellent collaboration across Iridium NEXT Mission Team, led by Thales Alenia Space SpaceX is making excellent progress on our launch program
Launch Timeline
First launch accelerated to February 1, 2015 target Constellation expected to be complete in 2017
Iridium NEXT Hosted Payload Opportunity
Iridium offered the world a unique value pr
Unprecedented coverage (100% of globe) Ideal altitude: close to earth (700km) rather than far away (36,000km) User control of the hosted payload Very cost-effective (compared to stand-alone) No ground infrastructure required
And we sold out the space!
Hosted Payload Volume
Iridium NEXT
Hosted Payload Target Specifications
Weight 50 kg
Payload Dimensions 30cm x 40cm x
70cm
50 W orbit
Payload Power average; 200 W
peak
Payload Data Rate <1 Mbps, Orbit
average ~100Kbps
Aireon – Iridium NEXT’s Primary Hosted Payload
Aireon -> Next Generation Air Traffic Control
Key Potential Benefits
More efficient aircraft routing and management
$6-$8 billion in fuel savings to airlines over 12 years based on industry analysis
Reduced emissions and environmental impact from optimal routing
Aireon Business Case
A potential $500 million opportunity
Key Future Milestones
Long-term data contracts with Air Navigation Service Providers (NAV CANADA complete; FAA and others to follow)
Additional debt financing to be arranged and secured by long-term data contracts
Successful launch of Iridium NEXT and Aireon
Potential Financial Value for Iridium
$200 million in one-time hosting fees between 2014 and 2017 Potential $300 million in data fee revenue over the life of Iridium NEXT Substantial ownership interest represents significant potential value
Iridium NEXT Hosted Payload Success
Harris is using remaining Iridium NEXT hosted payload capacity to host small auxiliary payloads
The auxiliary payloads could represent up to another $45M in hosting/data service revenue to Iridium over the life of Iridium NEXT
These Iridium NEXT hosted payloads represent a small fraction of the many opportunities that Iridium explored over the past five years. Many may have been feasible but could not be closed in time for the Iridium NEXT launch
What Did We Learn?
Examples—Hosted Payload Opportunities Pursued for Iridium NEXT
There were over 30 distinct payload opportunities pursued for Iridium NEXT Potential customers recognized the value of hosting their payloads on Iridium NEXT, but were constrained due to:
The commercial pace of the Iridium NEXT launch schedule Alignment with customers’ technology and budget decision-making process, particularly government customers Satellite design technical specification requirements, such as:
Volume, mass, power, data rates
Potential radio frequency interference with the primary Iridium communication payload
Awareness Services
Proprietary Automatic ID Systems
Communications, (AIS) – Ship Based
Tracking, & Wideband
Monitoring Real-Time Monitoring
Control & Terrestrial Surveillance
Communication at Various Optical
w/Other Space Assets Wavelengths
Scientific and
Space Weather Climate Monitoring
Applications
Despite strong demand for Iridium NEXT hosted payload space the main thing customers needed was more TIME
Hosted Payloads Remain a Great Opportunity
Tight budgets require new approaches
Requirements growing for hosted payload applications
Example: US Air Force Space & Missile Command issuing RFP for Hosted Payload Solutions (HoPS), creating a recurring contract vehicle for USG hosted payloads Public/Private Partnership Opportunities Industry still in infancy and successes so far have been opportunistic “Driven by budget constraints, government agencies throughout the world are increasingly open to adopting the hosted payload concept” – EuroConsult – Hosted Payloads Report 2012
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INTRODUCING
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Why Now?
With Iridium NEXT, Iridium can fly more than 66 satellites in our unique, cross-linked, global constellation After designing and building 81 satellites (operational and spares), additional satellites will have a very low incremental cost Once Iridium NEXT is complete in 2017, we can launch additional satellites/payloads into our network when they are ready Our Iridium NEXT ground support systems are designed to fly more than 140 satellites at a time
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The Iridium PRIMESM Advantage
Designed to leverage Iridium’s established space-based global mesh network, ground infrastructure, and flexible bus design to enable more affordable and responsive space payload accommodations
Highly flexible accommodations; ability to place one or more hosted payloads on up to 66 new Iridium PRIME satellites
Greater control over payload development, schedule and operations
Cost-effective to operate compared to stand alone payloads
“Turnkey” hosted payload missions can be launched into LEO as early as 2017
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Iridium PRIMESM Description
Iridium PRIME satellites will not have Iridium NEXT L-band main mission hardware and software
Significantly expanded space, power, weight and data rates for expanded mission possibilities Low-cost Iridium PRIME buses take advantage of $3B Iridium NEXT investment
Significant flexibility on timing – Iridium will put together missions for lowest cost and launch when customers are ready Reuses SEAKR Engineering OBP (On Board Processor) power for added customer flexibility New Hosted Payload Controller to support diverse and varied payloads on the same satellite
Iridium’s “once in a lifetime” opportunity has been extended!
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Iridium PRIMESM Specifications
Creates a turnkey platform for hosted payloads that will cost less than 50% of the cost of creating a stand-alone satellite mission
Payload Location Available PRIME Payload Area
Payload Power
Payload Data Rate
50 Watts (200 W peak)
Up to 1 Mbps
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Iridium PRIMESM – Potential Financial Impact
Key Business Assumptions:
Hosting License Fees
Iridium receives “hosting license fees” in addition to actual satellite, launch and insurance costs for Iridium PRIME missions
R&D/Hosted Payload Mission Development
Iridium earns return from R&D and hosted payload mission development
Customer Economies of Scale
Iridium consolidates opportunities to allow customers to share and reduce costs
Significant Hosting and Data Service Revenue Opportunity
An average of 2—6 satellites launching per year would contribute materially to our funding profile for Iridium NEXT and be a new revenue source
Potentially significant new business for Thales Alenia Space and their technology partners
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Iridium PRIMESM – Next Steps
Introducing David A. Anhalt—Vice President & General Manager, Iridium PRIME
Iridium is working with Thales Alenia on Iridium PRIME bus procurement and potentially partnering for European payloads
Discussions underway with key aerospace partners who can market the capability and develop customer payload opportunities
Pricing approach that is fair, simple and optimized for payload customers missions
Initial Interest From Potential Payload Partners Has Been Excellent
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The “Iridium PRIME” Vision
Leveraging our established space-based global mesh network, ground infrastructure, and flexible bus design, Iridium will become THE premier provider of affordable and responsive turnkey space payload accommodations
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Questions?
www.iridium.com/IridiumPRIME
Forward-Looking Statements
Safe Harbor Statement
This meaning presentation of Section contains 27A of the statements Securities about Act future of 1933, events as amended and expectations (the “Securities known Act”), as “forward-looking and Section 21E statements” of the Securities within the Exchange and the information Act of 1934, currently as amended available (the to “Exchange us. Act”). The Company has based these statements on its current expectations the Forward-looking development statements of and transition in this to presentation the Iridium include NEXT constellation; statements regarding features the of the expected Iridium duration NEXT system; of the expected existing constellation; Iridium NEXT project Aireon and costs auxiliary and deployment hosted payloads schedule; to Iridium; the capabilities the development and benefits of Iridium of the PRIME Aireon satellites; system; the and expected demand potential for hosted value of payloads. “projects,” Other “intends,” forward-looking “likely,” “will,” statements “to be” and can other be identified expressions by that the words are predictions “anticipates,” of or “may,” indicate “can,” future “believes,” events, “expects,” trends or the prospects. actual results, These forward-looking performance or statements achievements involve of Iridium known to and differ unknown materially risks, from uncertainties any future and results, other factors performance that may or cause achievements to, uncertainties expressed regarding or overall implied Iridium by such NEXT forward-looking development statements. and costs, potential These risks delays and uncertainties in the Iridium include, NEXT deployment, but are not levels limited of payloads, demand the for development mobile satellite of and services market (MSS), for the the Iridium development PRIME of hosted and market payloads, for demand the Aireon for hosted hosted payload payloads and generally auxiliary and the company’s economic conditions, ability to maintain and competitive, the health, legal, capacity governmental and content and of technological its satellite factors. constellation, Other as factors well as that general could industry cause actual and “Risk results Factors” to differ in materially the Company’s from Form those 10-K indicated filed with by the the forward-looking Securities and Exchange statements Commission include those (“the factors SEC”) listed for the under year the ended caption There December is no 31, assurance 2012, filed that with Iridium’s the SEC expectations on March 5, will 2013, be realized. as well as If other one or filings more Iridium of these makes risks or with uncertainties the SEC from materialize, time to time. or if Iridium’s projected. underlying assumptions prove incorrect, actual results may vary materially from those expected, estimated or Readers unless otherwise are cautioned indicated. not to The place Company undue undertakes reliance on no these obligation forward-looking to release statements, publicly any which revisions speak to only any forward-looking as of the date hereof statements after the date they are made, whether as a result of new information, future events or otherwise.
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