Slide 1: 2009 Earnings Call Investor Presentation
Globalstar 2009 Earnings Call Investor Presentation March 11, 2010
Slide 2: Safe Harbor Language
Safe Harbor Language This presentation contains certain statements that are, or may deemed to be, “forward-looking statements” within the meanin; of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of assumptions, risks and uncertainties, many of which a
Slide 3: Conference Call Agenda
Introduction Conference Call Agenda 1. Introduction 2. Key 2009 Highlights — Peter Dalton (Chief Executive Officer) 3. Current and Second-generation Constellation Update — Tony Navarra (President, Global Operations)’ 4. Quarterly Finance Review — Fuad Ahmad — Sr. Vice President and Chief Financial O
Slide 4: Key 2009 Highlights: Financing of Second-Generation Satellites
Key 2009 Highlights Globalstar Financing of Second-Generation Satellites On July Ist Globalstar 2 . . ThalesAlenia ariaf@ipace announced completion of snmirmmemeee"SDGCE service & solutions a $738 million financing. 1. The financing funds the manufacture, delivery and launch of the Company’s first 2
Slide 5: Key 2009 Highlights: First to Utilize ATC Spectrum Authority
Key 2009 Highlights Globalstar First to Utilize its ATC Spectrum Authori In January 2009 Globalstar announced that its broadband service partner, Open Range Communications Inc. had closed on its $267 am. million Rural Utilities Service loan and its Globalstar equity financing of $100m _openrange—__
Slide 6: Key 2009 Highlights: Acquisition of Axonn assets
Key 2009 Highlights In December Globalstar acquired assets of Axonn, L.L.C. - Axonn is a leading developer and manufacturer of GPS asset-tracking and messaging products including the SPOT Satellite GPS Messenger™. Axonn also designs and markets enterprise satellite M2M products including the AXTrack
Slide 7: Expanding Globalstar's Consumer Market Presence
Key 2009 Highlights Expanding Globalstar’s Consumer Market Presence Globalstar further established its retail consumer market presence by . ‘ = introducing new products and : i services and expanding to over pot 10,000 retail points of distribution LWE fH TRUE Ir for the SPOT Satellite GPS Messenger
Slide 8: Globalstar — The World's First MSS Consumer Products Company
lobalstar — The World’s First MSS Consumer Products Company 2011 and beyond SPOT™ Satellite GPS Messenger - SPOT 2.0 Commercial Availabilit SPOT HUG SPOT Delorme Satellit} GPS Communicator Commercial Availabilit) SPOT Assist ~ Roadsid} and Maritime Services Commercial Availability @ Products in Deve
Slide 9: New Consumer Products
Key 2009 Highlights NEW Consumer Products SPOT Satellite GPS Messenger The new SPOT Satellite GPS Messenger (SPOT 2) is approxunately 30 percent smaller and lighter than the original award-winning product. Globalstar HUG HUG is a satellite-based security theft- recovery and messaging product designe
Slide 10: Post-Quarter Key Highlight: Handheld GPS and Satellite Communicator
Post-Quarter Key Highlight NEW Consumer Product — World’s First Handheld GPS and Satellite Communicator Delorme PN-60w with SPOT Communicator: * Target: Outdoor users * combines GPS navigation utility with custom messaging ‘and SPOT emergency notification * Product delivery expected late spring 2010
Slide 11: Ground Network Upgrades
Key 2009 Highlights Ground Network Upgrades Simplex 2.0 Network Ugpgrades Software upgrades were installed at gateways equipped with Simplex data appliques Expands the SPOT M2M Asset Tracking messaging capacity by 10X and the network’s receiver sensitivity Ground Segment CDR Hughes Network Systems c
Slide 12: Coverage Expansion
Key 2009 Highlights Coverage Expansio! Nigeria Gateway Opens - In late 2009 the Nigeria gateway became operational expanding coverage into central and western Africa - Globalstar independent service provider Globaltouch (West Africa) Limited operates the gateway located in Kaduna. Globalstar owns a
Slide 13: Globalstar Subscriber Growth
Key 2009 Highlights Globalstar Subscriber Growth Significant Simplex data and SPOT Satellite GPS Teese Messenger subscriber growth —ae throughout 2009. eal: The Company completed the period “So00n ended December 31, 2009 with 2007 2008 ” 2008 390,594 subscribers or 46,264 more than it had at Decembe
Slide 14: Current and Second-generation Constellation and Network Update
Current and Second-generation Constellation and Network Update B
Slide 15: First-Generation Constellation Status
FIRST-GENERATION CONSTELLATION STATUS * Current constellation continues to perform better than expected ¢ 44 satellites in service * Simplex data performance continuing at 98 plus percent messaging reliability * Duplex data and voice customers now using improved web-based call times availability too
Slide 16: Second-Generation Satellite Constellation
SECOND-GENERATION SATELLITE CONSTELLATION Globalstar Launch window opens in less than four months — First six Globalstar second- ion sate ie i this) summer, oN Globalstar 5 ThalesAlenia = Space a ria pace Service & Solutions
Slide 17: Second-Generation Constellation Status
SECOND-GENERATION CONSTELLATION STATUS aig Globalstar ThalesAlenia Space (Right) Globalstar and Thales Alenia ‘Space officials in front of a Globalstar second-generation production satellite. * Initial second-generation satellites are nearing completion at Thales Alenia Space facility in Rome, Italy
Slide 18: Second-Generation Satellite Timeline
SECOND-GENERATION SATELLITE TIMELINE - Five Years of Planning and Execution of Milestones Space Operations Milestones con Sytem POR Sytem co, waa 2k Key PDR: Preiminary Design Review (CDR; Crities! Design Review CNF: Control Nenvork Facility TOU: Telemetry and Commané Unit SAT: Satelite Sapeoq MOpuT
Slide 19: 2009 Finance Review
2009 Finance Review
Slide 20: Fully Funded Business Plan
Fully Funded Business Plan December 31, 2009 $450 Liquidity as of 12/31/2009 S$ 390 $400 2nd Generation Constellation CapEx Thales Alenia Space $137 Arianespace $ 59 Ground Segment !1 $ 36 Launch Insurance $ 40 sat Remaining Liquidity H1_ Not essential to 2nd generation satellite deployment Complete
Slide 21: Quarterly Adjusted EBITDA
Quarterly Adjusted EBITDA (Sin Thousands) Three Months Ended “Warch31, June30, ~~ Sept30,_.-—~=~—~SsdDec 37, 2009 2009 2009 2009 Revenue $ 15163 $ 15716 $ 17521 $ 15,879 Operating Expenses $ 32804 $ 28317 $ 29,198 $ 27,751 Operating Income/(Loss) Ss (764) “S (12,601) “S (11677) “S (11,872) Other inc
Slide 22: Aggressive Cost Management Continues to Yield Near Breakeven Results
Aggressive Cost Management Continues to Yield Near Breakeven Results (Sin Thousands) $30,000 $27,322 $2441 $24,157 $2000 ($4797) ($2277) ($4,158) ($5,956) $20,000 Adjusted EBITDA ($6,843) $18,015 $17,852 (81,973) $15,000 wean $15,716 $15,879 $10,000 $5,000 $0 atos 208 03.08 24.08 at-o9 2-09 93.09 [A
Slide 23: Low Retail Monthly Churn Coupled With Stable ARPU
Low Retail Monthly Churn Coupled With Stable ARPU Low Monthly Retail Churn I i a : Stable ARPU 22
Slide 24: Demonstrated Subscriber Growth
Demonstrated Subscriber Growth 450,000 425,000 YOY Growth 13% 400,000 375,000 360,000 325,000 300,000 218,897 275,000 169,875 en 165,196 seiall se 115381 363 225,000 Wh a% a% 45% 47% 51% 200,000 5% 175,000 + 150,000 125,000 + 100,000 75,000 50,000 25,000 0 Qt08 02.08 03.08 04.08 1.09 Duplex BIGO aSi
Slide 25: Closing Remarks
Closing Remarks
Slide 26: Summary - Financing
SUMMARY - FINANCING Globalstar $738 million financing fully funds manufacture and launch of 24 new satellites and deployment of second-generation satellite constellation. Paves way tor continued deyelopment of next-generation ground segment Globalstar ie “NOTE: Globalstar product image depicted abov
Slide 27: Summary - Satellite Partnership
SUMMARY - SATELLITE PARTNERSHIP a ThalesAlenia — rman SCE SOCIETE GENERALE Corporate & Investment Banking ariaf@bpace Service & Solutions @% CREDIT AGRICOLE cae = LY aie Globalstar HUGHES. connce: to the turer a NaTIXIS LT HERIVIO} coface® 26
Slide 28: Globalstar — The World's First MSS Consumer Products Company
Globalstar — The World’s First MSS Consumer Products Company with more than 10,000 retail points of distribution Globalstar GPS S Fin Eg Mean noveNTE URES” very 0015 a |-@° “NOTE: Globalstar product images depicted above are concepts only and are not to scale J HU a
Slide 29: Summary - Strategic Acquisition
SUMMARY - STRATEGIC ACQUISITION Globalstar acquisition of Axonn secures critical supply chain and intellectual property rights for SPOT Satellite GPS) Messenger and asset tracking solutions, It also proyides the ability to offer developers, and open source technology standard needed to integrate Glo
Slide 30: Summary - Satellite Spectrum Holdings
SUMMARY —- SATELLITE SPECTRUM HOLDINGS Jobalstar has more than 25 MHz of global satellite spectrum. Industry interest in acquiring spectrum for wireless broadband is once again increasing. Globalstar is the first and only MSS company to have utilized its ATC spectrum authority with the FCC, having a
Slide 31: Summary - Globalstar Value Drivers
SUMMARY —- GLOBALSTAR VALUE DRIVERS 1. MSS Core Business ; 2006 30% EBITDA with Approx 5000 EBITDA : Margin at $200m-S250m. $140m in revenue 5 Gad of recurring revenue —— generating $100m-$125m 1 of annualized EBITDA 2. Consumer Retail Business New GPS products and ; ; services, secured IP and suppl
Slide 32: Globalstar
Globalstar www.globalstar.com www.findmespot.com For additional investor information please contact Dean Hirasawa - Director, Public and Investor Relations (408) 933-4006 dean.hirasawa@globalstar.com
Slide 33: Appendix A: Definition of Terms and Reconciliation of Non-GAAP Measures
Appendix A Definition of Terms and Reconciliation of Non-GAAP Financial Measures We utilize certain financial measures that are widely used in the telecommunications industry and are not calculated based on GAAP. A reconciliation of these measures to GAAP and a discussion of certain other operating
Slide 34: Appendix A (continued)
Appendix A (continued) EBITDA represents earnings before interest, income taxes, depreciation and amortization. EBITDA does not represent and should not be considered as an alternative to GAAP measurements, such as net income, and the Company's calculations thereof may not be comparable to similarly