Ann: 2019 Results Presentation, page-43

This is without any growth in the Space Segment business.

This is my understanding of what could be going on in the Space business. I am in no way an expert about this stuff, so please correct me if you can see anything wrong.

The US military are in the process of replacing all the GPS satellites in MEO. This project is way behind, and the project for new Earth stations is even further behind. Completion looks like it will be some time after 2022, many believe it could be 2024. EOSDS have stated they want to be in space in 2022.

This project is still utilising microwave technology and thus the project will require anywhere from 24 to 30 MEO satellites, I recall reading somewhere a while ago they are launching 29, but I could be wrong on the number. At a cost of around $US500 million each (this cost could be much higher I am not sure of the cost) the project cost is massive. I believe about ~8 satellites have been launched to date.

Now why the US military will be looking at what EOS can offer.

Using EOS laser technology, the security of the transmissions is much better, this matters greatly to the military, just google about satellite communication breaches in the past.

More importantly will be the cost. In the presentation after the space announcement, the CEO was asked by a broker how many satellites would be required. The CEO stated that with the current number of customers that have expressed initial interest, the capacity needed requires 3 satellites, so in order for global coverage they will need to launch 4. Yes global coverage with 4 satellites, whereas microwave needs at least 4 per quadrant.

Why is this, the weather. EOS have developed technology to circumvent weather events and thus only require 4 satellites in total.

Bring on the EOSDS approvals and hopefully in a few years the share price will need to be a lot lot higher to get a PE of 20... I suspect the PE will be much higher though.