EchoStar : Investor Overview

EchoStar Corporation Investor Overview

November 2020

Safe Harbor Statement

This presentation may contain statements that are forward looking, as that term is defined by the Private Securities

Litigation Reform Act of 1995. These forward-looking statements are based on management's beliefs as well as

assumptions made by, and information currently available to, management. When used in this presentation, the words "believe," "anticipate," "estimate," "except," "intend," "project," "plans," and similar expressions, and the use of future dates are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. We assume no responsibility for the accuracy of forward-looking statements or information or for updating forward-looking information or statements. These statements are subject to certain risks, uncertainties, and assumptions. See "Risk Factors" in EchoStar's Annual Report on Form 10-K for the year ended December 31, 2019 and EchoStar's Annual Report on Form 10-Q for the quarter ended June 30, 2020 as filed with the Securities and Exchange Commission and in the other documents EchoStar files with the Securities and Exchange Commission from time to time.

Slide 2 ECHOSTAR PROPRIETARY

State of Our Business

TTM Revenue of $1.9b, Net

$

Loss of $112m, and

Adjusted EBITDA of $632m

Strong balance sheet

with no net debt

S-Band Licenses over

Europe and Mexico

with terrestrial access

Global NGSO

S-Band Rights

HTS satellite (Jupiter 3) under construction that will more than double sellable Ka-band capacity

1.6	Million HughesNet
subscribers

Offering

consumer service

in the US and Latin America

Diversified Enterprise

Business with

substantial backlog

Existing fleet of 7 owned and 3 leased Ka, Ku, and S-band payloads/satellites

Slide 3 ECHOSTAR PROPRIETARY

Our Global Presence

EchoStar Corporate: Englewood, Colorado

EchoStar Satellite Services: Englewood, Colorado

Hughes Network Systems: Germantown, Maryland

Worldwide Offices

G65675a P 09/16/20

~ 2,500 employees across theworld

Slide 4 ECHOSTAR PROPRIETARY

Our Goals

• Connecting People, Enterprises, and Things
• Deliver essential broadband services and solutions largest high-throughput satellite network over the the lowest cost per bit
• Complement our GEO fleet with NGSO/LEO capacity technologies to extend coverage to our customers significantly increase the size of the market we
• Continue as a trusted partner for technology
  services globally that support ubiquitous connectivity
• Develop and monetize our portfolio of spectrum variety of ways including full integration of S-band into 5G networks

Slide 5 ECHOSTAR PROPRIETARY

Our Business Segments

EchoStar Corporation

HSS Corp

Corporate and Other

Hughes

• Consumer satellite broadband with 1.580m subscribers in the Americas
• Leading provider of satellite broadband network solutions to enterprises and governments
• #1 global VSAT provider with four decades of networking expertise
• OneWeb (LEO) technology partner
• Joint Venture equity investment with YahSat to provide broadband services in Africa, the Middle East, and SW Asia

EchoStar Satellite

Services (ESS)

• E9 and E105 FSS satellites
• Advanced satellite programs and spectrum management

• Shared Services (IT/Legal/Finance/etc) organization
• EchoStar Global and EchoStar Mobile and associated S-Band spectrum
• E24 / J3 satellite construction
• Joint Venture Equity Investments
• Other Strategic Investments

Slide 6 ECHOSTAR PROPRIETARY

Recent Highlights

• Revenue of $474m in Q3-20 and $1,399m YTD
• Net Income of $23m in Q3-20 and Net Loss of $49m YTD
• Adjusted EBITDA of $167m in Q3-20 and $476m YTD
• Free Cash Flow, defined as Adjusted EBITDA minus Capital Expenditures, of $69m in Q3-20 and $181m YTD-20
• Q3-20net subscriber additions of 38,000 driven by LatAm markets
• Strong balance sheet - Cash and Marketable securities of $2.5b with net debt of zero
• Agreed in principle to invest in OneWeb (LEO) and continue as technology and distribution partner
• Filed application to participate in Federal Communications Commission Rural Digital Opportunity Fund (RDOF)
• Strategic collaboration with Inmarsat for inflight connectivity

Slide 7 ECHOSTAR PROPRIETARY

Revenue ($m)

$2,000

$1,900

$1,800

$1,700

$1,600

$1,500

$1,400

$1,300

$1,200

$1,100

$1,000

	$1,886
	$1,763
		• 9% 3-Year CAGR (2016 - 2019)
		for consolidated EchoStar
	$1,525
$1,447		• 10% 3-Year CAGR for Hughes
		segment (2016 - 2019)

• EchoStar 17/ Jupiter 2 in service Q2-17

2016			2017	2018	2019
		Hughes		ESS		Corporate and Other

Slide 8 ECHOSTAR PROPRIETARY

Adjusted EBITDA ($m)

$800

$700						$555	$583
$600
			$451
$438
$500
$400
$300
$200
$100
$-
$(100)
2016			2017	2018	2019
			Hughes		ESS		Corporate and Other

• 10% 3-year CAGR (2016 - 2019) for consolidated EchoStar
• 12% 3-year CAGR for Hughes segment (2016 - 2019)
• EchoStar 17/ Jupiter 2 in service Q1-17
• Corporate and Other includes equity of unconsolidated affiliates which causes some variability

Slide 9 ECHOSTAR PROPRIETARY

Capital Expenditures ($m)

$800 $700

$600	$593	$566
		$477
$500

$418

$400

$300

$200

$100

$-

2016

2017

2018

2019

• 2016 estimated for continuing operations post BSS transaction which was completed in 2019

• Main categories of capital expenditures include consumer premise, new satellites and associated infrastructure, enterprise solutions, and other corporate needs

Slide 10 ECHOSTAR PROPRIETARY

Free Cash Flow ($m)

$400

					• Free Cash Flow defined as
$300					Adjusted EBITDA less
					capital expenditures
$200			$78	$165
$100
$-
$(100)
	($115)
$(200)	($154)
2016	2017	2018	2019

Slide 11 ECHOSTAR PROPRIETARY

Liquidity and Leverage ($m)

		HSS			Echo
		Corp			Corp
Cash and Marketable Securites	$	1,862	$	2,506
Debt
Sr. Unsecured 7.625% Due 2021	$	900	$	900
Sr. Secured 5.25% Due 2026	$	750	$	750
Sr. Unsecured 6.625% Due 2026	$	750	$	750
In-Orbit Incentives, Cap Lease, Other *	$	33		$	57
	$	2,433	$	2,457
Net Debt	$	571	$	(49)
Indebtedness to Cash Flow *
Gross - Secured		1.1x
Gross - Total		3.5x
Net		0.8x

* HSS Corp based on covenant definitions

• All public debt resides at HSS Corporation
• HSSC Covenants:
• • Secured is 3.5x
  • Total is 5.5x
• Intent is to repay $900m of Sr. Unsecured 7.625% due June of 2021
• Data as of 9/30/20

Slide 12 ECHOSTAR PROPRIETARY

Hughes Segment

Slide 13 ECHOSTAR PROPRIETARY

Hughes

Hughes

Consumer

• ~ 71% of revenues in Q3-20
• 1.216m US subscribers as of 9/30/20
• 364k subscribers in Brazil, Colombia, Peru, Ecuador, Chile, and Mexico
• High incremental margins driven by owner economics on satellites
• Community Wi-Fi with Facebook
• US constrained until J3 launch but available LatAm capacity expected to drive growth
• Brazil operations - 80% ownership of JV with YahSat

Enterprise

• ~ 29% of revenues in Q3-20
• Backlog of $1.1 billion as of 9/30/20
• Managed service provider for Enterprises and Governments on a global basis
• Operating service entities in the US, Brazil (80%), Europe, and India (85%)
• Equipment and Infrastructure sales in more than 100 countries
• OneWeb LEO technology partner
• Mobile Satellite services group focused on IOT and mobility applications

Other

• JV with YahSat to provide satellite broadband services across Africa, the Middle East, and SW Asia. 20% ownership included in equity in unconsolidated affiliates
• 43% ownership in Hughes Systique, a provider of R&D software services, included in consolidated results

Slide 14 ECHOSTAR PROPRIETARY

Hughes Consumer - US Addressable Market

• 138m Households (H/H) in the United States: ~ 14.5m currently included in addressable market
• By only requiring low cost CPE to be installed at the service location, Hughes provides broadband services to areas that are financially unattractive to other technologies

H/H (m)

21.0

18.0

15.0

12.0

9.0

6.0

3.0

-

H/H Count (m)

Expansion with J3 Service

Hughes - Incremental H/H's with speeds of < 25 Mbps

FCC - Speeds of < 25 Mbps

• FCC 477 file represents 6.7m H/H have no access or access to speeds <25 Mbps
• We estimate an additional 7.9m H/H that have access to speeds <25 Mbps based on internal estimates and third party research
• We anticipate an expansion of our addressable market with the J3 launch due to the ability to better compete with 3m DSL H/H that have access to service between 25 and 50 Mbps

Slide 15 ECHOSTAR PROPRIETARY

Hughes Consumer - LatAm Addressable Market

• ~ 179m households (H/H) in the major Latin America countries by 2021
• 26m upper income households are in unserved and underserved areas

12.0

10.5

	10.0
	8.0
(m)	6.8
6.0
H/H

4.0		3.5
2.0		1.6	1.4	1.1
			1.0
				0.6
0.0
Brazil	Mexico	Argentina Columbia	Chile	Peru	Ecuador	Other

Existing Retail Markets		Addressed through VARs

• Retail consumer services in Brazil, Mexico, Columbia, Chile, Peru, and Ecuador
• Other markets addressed through VARs
• Brazil accounts for 40% of addressable market of 26m
• Satellite is not only rural. Sao Paulo, Brazil, with extensive infrastructure, is the largest source of HughesNet Brazil subscribers. Other countries have similar characteristics

Slide 16 ECHOSTAR PROPRIETARY

Hughes Consumer - Subscriber Trends (000)

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

Peru &	Chile	Mexico
Ecuador

J2 In-	Colombia
Service

Dec-16Mar-17Jun-17Sep-17Dec-17Mar-18Jun-18Sep-18Dec-18Mar-19Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20

	North America		LatAm

• US nationwide service with 25 Mbps download speeds (FCC recognized) plus voice
• Supported by Jupiter 1 (E17), Jupiter 2 (E19), SPACEWAY 3, Al Yah 3, Eutelsat 65WA and Telesat T19V
• Jupiter 3, once in service, will more than double our sellable Ka capacity

Slide 17 ECHOSTAR PROPRIETARY

Hughes Enterprise

Enterprise

Managed Service Provider

• Leading provider to US large blue chip and medium/small enterprises as well internationally in Brazil, India, and across Europe
• Diversified portfolio of customers across a range of industries including Lottery, Retail, Hospitality, Restaurant, Finance and Banking, and Oil and Gas
• Utilize a variety of communication technologies including terrestrial

Equipment Sales

• Leading global supplier of satellite ground infrastructure and terminals
• #1 global VSAT provider with 50% VSAT market share
• Scalable systems allowing growth from startup to massive consumer buildouts
• Industry leading technology providing increased efficiency and profitability
• Equipment in use on more than 1,100 aircraft worldwide

Other

• OneWeb (LEO) technology partner
• Support service to IFC providers
• Government programs including Defense
• MobileSat Solutions Group

Slide 18 ECHOSTAR PROPRIETARY

GEO versus LEO

• GEO and LEO systems are expected to be complementary, and as new systems come on-line and mature, the optimal solution will be a hybrid of both
• GEO provides targeted high capacity at a low cost per bit while LEO provides ubiquitous coverage and supports low latency applications
• EchoStar agreed in principle to invest in OneWeb (LEO) and to continue as technology and distribution partner

GEO	LEO
• 100% of capacity in areas where there are	• Capacity is evenly distributed across the
customers	Earth's surface ~ 70% covered by water
• Provides speed and bandwidth at an	• Well suited for enterprise verticals including
attractive price	government and mobility applications like
• The #1 use of internet is video which is well	aeronautical and maritime
suited for GEO	• Cost of phased-array antenna not suited for
• Successful track record	consumer application
	• Modern LEO systems in testing phase
	• Regulatory / Orbital debris and collision risk

Slide 19 ECHOSTAR PROPRIETARY

Government Subsidies / Rural Digital Opportunity Fund (RDOF)

• Program:
• • The FCC has established RDOF, a 10-year, $20.4 billon subsidy effort to help close the digital divide
  • Phase 1 of the program is $16 billion or $1.6 billion per year in subsidy funding
  • Phase 1 is focused on ~ 6m households
  • Build out requirements are 40% by end of Year 3, with 20% per year after that
• EchoStar:
• • Filed an application to participate in Phase 1 bidding
  • Currently in auction quiet period
  • RDOF rules provide preference to fiber and to a lesser extent fixed wireless. Because of this, RDOF will cover far fewer H/H as the high cost to deploy fiber consumes the budget
  • We do not anticipate any negative material impact to our target market due to its size and the cost challenges of serving the low density areas where the majority of our subscribers reside
  • We see potential upside if we can ultimately secure funding

Slide 20 ECHOSTAR PROPRIETARY

EchoStar Satellite Services

Slide 21 ECHOSTAR PROPRIETARY

EchoStar Satellite Services (ESS)

• Fixed Satellite Services (FSS)
• • Full and part-timeKu-band transponder capacity
  • Enterprise, broadcast, and government services applications
  • Fleet consists of two FSS Satellites:
  • • EchoStar 105: Pre-paid lease with SES. Launched in 2017 and resides in the 105 degree west slot
    • EchoStar 9: Owned satellite. Launched in 2003 and resides in the 121 degree west slot
• Advanced Satellite Programs and Spectrum Management

Slide 22 ECHOSTAR PROPRIETARY

Corporate and Other Segment

Slide 23 ECHOSTAR PROPRIETARY

Corporate and Other Segment

Corporate and Other

EchoStar Global

EchoStar	Mobile	Other

• Portfolio of attractive global spectrum
• Goal to deploy a hybrid GEO/NGSO satellite infrastructure that will support service provision on a global basis
• Support future communication standards including 3GPP/5G and narrowband applications such as IOT
• Launched two satellites in Q3-20 expected to bring rights into use

Slide 24 ECHOSTAR PROPRIETARY

• Operates a mobile satellite network with complementary ground component providing connectivity services to businesses across Europe and the North and Mediterranean Seas
• Target market is for applications in connected vehicle, industrial, fisheries, resource extraction, and environmental and Smart-Grid monitoring
• Licenses for 30 MHz of 2GHz MSS spectrum with covering 500m POP's
• Support provided by the EchoStar 21 satellite and Eutelsat 10A S-Band payload

• Shared Services Organization (IT/Legal/etc)
• Dish Mexico Joint Venture - equity investment (49%)
• Deluxe Joint Venture - equity investment (50%)
• Other Strategic Investments
• EchoStar 24 / Jupiter 3 satellite construction

Corporate and Other - S-band Strategy

• Developing a unique portfolio of global S-band spectrum rights, including rights to develop hybrid next-gen mobile satellite services integrated with complementary terrestrial rights; developing similar rights in other attractive frequency bands
• ITU priority to utilize up to 75 MHz of S-band globally for new 5G NGSO network; New networks will leverage/integrate in-orbit GEO assets and priority filings covering the Americas, Europe, Middle East and Africa
• Planned network features include:
• • Global 5G connectivity with seamless terrestrial integration
  • Fully cloud integrated open/standards-based ecosystem
  • Application focused; embedded with OEMs
• High value emerging vertical markets include:
• • Consumer 5G services
  • Aero and UAV (urban air mobility and autonomous delivery)
  • Ubiquitous 5G automotive connectivity
  • Public protection and disaster Relief
  • Health monitoring

Slide 25 ECHOSTAR PROPRIETARY

Summary

Slide 26 ECHOSTAR PROPRIETARY

Outlook

• Strong core business delivering essential broadband services and solutions
• Jupiter 3 satellite, which will more than double capacity, expected to drive robust growth in markets as well as provide additional enterprise opportunities including cellular backhaul and Wi
• Engineering expertise and technology innovator
• Evolving complex hybrid networks anticipated to size of our addressable market significantly
• Well positioned with S-band assets to participate evolution of 5G and IOT focused markets
• Strong balance sheet; continue to seek opportunities deploy cash for both organic and inorganic growth

Slide 27 ECHOSTAR PROPRIETARY

Reconciliation of GAAP to Non-GAAP Measure

Slide 28 ECHOSTAR PROPRIETARY

Adjusted EBITDA Reconciliation ($m)

		2016		2017		2018		2019		TTM
Net income (loss)	$	181	$	393	$	(39)	$	(74)	$	(112)
Interest income and expense, net		67		140		139		169		155
Income tax provision, net		33		(155)		7		20		14
Depreciation and amortization		304		386		457		491		521
Net income (loss) from discontinued operations		(136)		(271)		(94)		(39)		7
Net income (loss) attributable to noncontrolling interests		(1)		(1)		(2)		11		19
EBITDA	$	447	$	492	$	469	$	578	$	604
(Gains) losses on investments, net		(10)		(53)		13		(29)		37
Impairment of long-lived assets		-		11		65		-		-
Litigation expense		-		3		3		26		(1)
Foreign currency transaction (gains) losses, net		1		(1)		16		12		(0)
License fee dispute - India, net of noncontrolling interests		-		-		-		(3)		(8)
Vendor settlement		-		-		(10)		-		-
Adjusted EBITDA	$	438	$	451	$	555	$	583	$	632

Slide 29 ECHOSTAR PROPRIETARY