Norsat International Inc.Developing nations and communities Remote and/or harsh environments (e.g. Oil & Gas or Mining camps) Transportation/Maritime industries (e.g. On the Move applications)

Copyright © 2014 Norsat International Inc.

Norsat International Inc. Annual General Meeting

May 7, 2014


Chairman of the Board Fabio Doninelli


Norsat International Inc. Annual General Meeting

May 7, 2014


Innovative Communication Solutions

Agenda

• Corporate Update

• Financial Review

• Outlook and Growth Strategy

• Question and Answers

• Words from the Chairman

• Closing Remarks

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Corporate Update Dr. Amiee Chan, President & CEO



Forward Looking Statements

Statements in this presentation relating to matters that are not historical fact are

forward-looking statements.

These are based on current expectations, forecasts and assumptions that involve risks and

uncertainties that could cause actual outcomes and results to differ materially from those

outlined in the forward-looking statements.

Factors that could cause or contribute to such differences include, but are not limited to:

general economic conditions, changes in technology, reliance on suppliers, managing rapid

growth, global sales risks, limited intellectual property protection, competition, mergers and

strategic transactions by competitors, the continued availability of existing bank loans and

credit facilities and other risks and uncertainties described in Norsat’s public filings with

securities regulatory authorities.

While all efforts are made to ensure the accuracy of the information, Norsat assumes no

liability for incorrect, incomplete, or missing information from this presentation. Past

performance is not necessarily indicative of future performance.

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7

To be the premier provider of innovative communication

solutions for remote and challenging applications.

Vision Statement



The Market Opportunity is Significant

8

Total Internet Users as of March 31, 2011

www.internetworldstats.com

Norsat connects the “Unconnected World” through highly valuable applications

Connected

World*

2 Billion

People

Unconnected

World

5 Billion

People




Infrastructure Non-existent/Insufficient Military theatre

Developing nations and communities

Remote and/or harsh environments (e.g. Oil & Gas or Mining camps)

Transportation/Maritime industries (e.g. On the Move applications)

Infrastructure Damaged Disaster relief and response

Mission Critical Communications Public Safety

Transportation

Security and defense

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Photo: Norsat NewsLink System Used after 2010 Haiti Earthquake



The Norsat Platform

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| Land Mobile Radio | WiFi | Satellite | WiMax | LTE | M2M |



Microwave Components

Products:

• Market leading receivers (LNB)

ground, marine, and airborne applications

• Transmitters (BUCs and SSPAs) incl.

the compact & powerful ATOM series

• Growing portfolio including airborne

receivers, high efficiency BUC/SSPA, and

Ka band Rx and Tx solutions

Markets Served:

system integration, marine, broadcasting,

military, government, education

Revenue: 20-25% of total

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Receive

Transmit

Microwave components used in satellite user ground stations enable the transmission & reception of

microwave radio signals to & from satellites for audio, video, or digital processing.



Satellite Solutions

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Products:

• C, X, Ku, Ka band flyaway terminals

(0.45 to 4.5m antennas)

• Maritime stabilized antennas

• “Satcom on the Move”

• Remote Network Solutions

• Emergency Response Tool Kits

Markets Served:

military, government, broadcasting,

maritime, enterprise, natural resources

Revenue: 10-20% of total

Norsat fly-away satellite terminals deliver video, voice, and data connectivity in challenging applications

and environments around the globe.



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Products:

• 700/800 MHz, Aviation, VHF/UHF, Tetra

Band Antennas, Filters & Systems

• Comshel® heavy-duty antenna housings

Markets Served:

public safety, defense, national and local

security communications networks,

military, utilities, natural resources,

transport (road, rail, air, marine, etc.)

Revenue: 50 – 55% of total

Sinclair Technologies

For over 60 years, Sinclair Technologies has been the industry leader in providing high reliability antennas,

and RF conditioning products and solutions for wireless communications in extreme environments.



Sinclair Products Overview

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Low PIM Dipole Antennas

High performance fiberglass collinear antennas

Enclosed dipole array antennas

Panel antennas

Excelsior Mobile Antennas

Yagi Antennas

High performance transport antennas

Excaliber rail and transport antennas

Log periodic/data antennas

Expandable multi-couplers

Compact combining solutions

Mobile duplexers

Base Station duplexers

Tower top amplifiers

Cavity ferrite and trunking transmitter

combiners

Receiver multi-couplers

Custom antenna combining systems

Antennas & RF Conditioning Products



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New Growth Initiatives: M2M Solutions

Sentinel RMC features:

• Turnkey solution including hardware,

web-based interface & data storage

• Real time stats from multiple

monitoring inputs

• Global data access

• System monitors and alarms

• Choice of backhaul options

Markets Served:

oil & gas, natural resources,

telecommunications, public safety,

governments, utilities

Norsat’s M2M Solution, Sentinel RMC offers customizable, real time monitoring and control for remote

sites around the world.



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Design

& Development Supply Chain

Delivery

& Service

Support

& Warranty

Leading-edge

designs &

extensive

technology

expertise

High quality

supply chain and

ISO certified in

Canadian

facilities

Co-ordinated

logistics, infield

installation and

training

Available

technical support

and best in

industry

warranties

Complete Solutions Provider



Recent Achievements

• CVG Acquisition - Advancing our core business

Augmenting our product portfolio

Enhancing IP for our Satellite and Microwave business units

Awarded contracts in excess of $4.0M over the past year

• Awarded a $13.3M R&D program under SADI - has allowed for the development of:

ATOM and ELEMENT Series BUCs & SSPAs, TXC Series of Ceramic Combiners, Low profile

transportation antennas (SM 700), High performance broadband antenna (SE 41X)

• Signed 3 year contract with Public Works & Government Services Canada for

supply of UHF/VHF antennas for up to $1.5M

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Financial Update

Mr. Arthur Chin, CFO



Annual Revenue and Adjusted EBITDA

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$19.8

$37.8

$42.4

$36.4

$2.8 $4.2 $4.8 $5.1

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

2010 2011 2012 2013

USD

Mill

ion

s

Revenue Adjusted EBITDA

*11% *11%

* Adjusted EBITDA Margin

*14%



2014 First Quarter Summary

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(In 000’s)

March 31, 2013

March 31, 2014

Revenue $ 8,354 $ 9,117

Net Income $ 412 $ 2,117

Adjusted EBITDA $ 797 $ 1,592

EPS $ 0.01 $ 0.04



Strong Balance Sheet

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December 31,

2012

December 31,

2013

March 31,

2014

Cash and Cash

Equivalents $ 5.1M $ 3.3M $ 2.9M

Working Capital $ 7.5M $ 10.0M $ 11.4M

Debt $ 7.0M $ 4.4M $ 3.9M

Shareholders’

Equity $24.2M $26.4M $27.4M


Outlook & Growth Dr. Amiee Chan, President & CEO



Outlook

• Revenue improvement in first half of 2014 on

increased customer activity and new product

releases in the Microwave and Sinclair

divisions

• Continued challenges for Satellite Division

created by reduced military spending

• Balanced efficiency in operations with ongoing

strategic investment throughout the Company

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Longer-Term Strategy

• Broaden product and services portfolio

• Diversify into new market verticals such as:

commercial, resource, transportation and public

safety sectors

• Continue to focus on R & D

• Add recurring revenue streams

• Pursue merger and acquisition opportunities

• Maintain profitable growth

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QUESTIONS & ANSWERS


Words from the Chairman Fabio Doninelli



Growth

Addition of several new products for markets that have a

strong opportunity for growth

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SATCOM Baseband kits Microwave products for O3b

Network

New BUCs, LNBs & more Microwave Filters

M2M Solution- Remote Site

Monitoring and Control

ATOM BUCs and SSPAs Ceramic Filters

SM700, SE412



Growth- Sinclair Division

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Growth- Sinclair Division

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• State of the art,

lightweight ceramic

combiner

• Over $15M

opportunity



Growth- Microwave

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Receive

Transmit

Although already a leader in commercial LNB’s, moving

towards greater market share as leading transmitter

(BUC & SSPA) provider



Opportunities

• Focus on Mergers & Acquisitions

• Acquisition of new Assets: low cost of acquisition, easy

repayment and high value IP and assets

• A synergistic increase in product lines

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Financial Strength

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$0

$5

$10

$15

$20

$25

$30

Jan '11 Jun'11 Dec '11 Jun '12 Dec '12 Jun'13 Dec-13 Mar '14

USD

Mill

ion

s

January 21, 2011 - March 31, 2014

Cash+AR-AP Acquisition loan and promissory note Shareholders' Equity

$12.75M

$3.85M

$27.4M



Management Team

• Amiee Chan, President and CEO (2006)

• Arthur Chin, CFO (2011)

• Ken Broom, General Manager (2013)

• Brian Donnelly, VP Sales and Marketing (2012)

• Bob Reeve, VP Sales and Bus. Dev. (2014)

• Michael Schefter, Director of Engineering (2006)

• Kang Lan, Director of Engineering (2011)

• Frank So, Director of Operations (2012)


COFFEE AND REFRESHMENTS

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Documents

Norsat International Inc.Developing nations and communities Remote and/or harsh environments (e.g. Oil & Gas or Mining camps) Transportation/Maritime industries (e.g. On the Move applications)