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2 About HiSky Aims to dramatically drop satellite voice/data transmission prices to end customers Develops low bit rate satellite communication terminals for voice and data applications Voice and data service provision, based on GEO/Ka-band HTS satellites
3 Management Team CEO – Mr. Shahar Kravitz CTO – Mr. Zack BerejikVP R&D – Mr. Moti Litochevski
4 Background Most of service providers currently, use lower orbital satellites which incur high costs of operation and maintenance As of to date, price of a satellite voice call ranges $1.50-$5.00 per minute At such rates demand is restricted to high-end customers (high rank officers, oil rig managers etc.) Current customers consider satellite voice/data service as emergency/short voice calls/messages
5 Satellite services market (Voice and Data)Total Market 2014 = $6.0 Billion Satellite services market (Voice and Data) Source: SIA 2014
6 Total Market M2M satellite services and hardwareSource: (MarketsandMarkets, March 2014)
7 Competitors Market share of voice and data MSS subscribers 5.2% 43.8% 16.2% 34.8% Source: Satellite market and research and companies' report, 2014
8 Call home Just to say Hi
9 High Throughput Satellites (HTS) vs Traditional GEO Ka SatellitesWide beam Km HTS Spot beam Km
10 General System Block Diagram
11 Our Product - HiSky Blue
12 HiSky Blue Design
13 HiSky Blue Mechanical DesignRadom/External cover Antenna/Modem/CPU Case Battery case Frame Structure
14 HiSky Blue Mechanical Size125mm 25mm 80mm
15 HiSky Blue SOS emergency Button USB Input/output ChargingEexternal Antenna (Potential growth)
16 HiSky Blue - IndicatorsRSSI Bit Wifi Battery indicator
17 Hi You can call Every where Every day
18 Core Technology Phase array antennas for Transmission & ReceptionCustom RF front end and up/down converters Small size and low power consumption MODEM Network management CPU On the move tracking algorithm Battery management User device application Terminal network control via Hub base station
19 R&D Potential Growth Development of M2M TerminalsDevelopment of larger antenna for higher bit-rate
20 say Hi to the new prices
21 Call Prices vs CompetitorsBased on 200 minutes per month Competitors charge ~$0.5 per text message We offer unlimited voice & data packages per month
22 Competitive AdvantagesPrice Call quality Compatibility On the move Easy interface and innovative design
23 Alliances Production Prime Contractor Service OperatorSupply chain management Assembly and testing Inventory management and related logistics Service Operator bidirectional services from multiple small terminals hosting and operational management services complete Business Support System 24/7 global coverage Price/service quality
24 S W O T STRENGHTS WEAKNESSES OPPORTUNITIES THREATSHTS airtime is 1/10 than traditional satellites Most advanced technology to date Low overhead than competitors (no infrastructure needed) Product fully interfaces with user smartphone WEAKNESSES Dependency on a service operator Weather constraints (rain) Not a global coverage (to date) Higher latency (~550ms) than competitors OPPORTUNITIES Market is strongly entering the HTS Inmarsat's deployment of its Global Xpress $1.6B program Additional target audiences will switch to satellite service Future connectivity can allow developing a satellite based social network platform THREATS Other players may develop similar solutions Patent may not be strong enough and allow entry to competitors Regulations may impose restrictions; such as: antenna size, modem standards, etc.
25 Milestones Year1 Year2 Year3 Year4
26 Hi The revolution Is here
27 Pro-forma P&L
28 Pro-forma Cash Flow
29 Capital Requirement and use of proceedsWe are looking to raise $6.0 million to support the following: Prototype design and build-up Beta site completion Production set-up HiSky Blue launch Initiation of Marketing
30 Our Mission 'Making voice and data satellite communication services accessible to increasing audiences, by introducing innovative technology'
31 Thank you
32 Competitive Tables ProductsActivation Fee Monthly Price Minutes in Plan Additional per min. Effective per Min. Text message Iridium - $135.0 100 $1.09-$2.49* $1.22-$1.92 $0.60 Globalstar $50.0 $99.9 200 $0.99* $1.25 N/A Inmarsat $122.9 $0.99-$1.29* $1.1- $1.26 $0.65 Thuraya $45.0 $185.0 $1.49-$8.69* $1.89-$5.49 $0.59 HiSky $25.0 Unlimited $0.12