Slide 1: Globalstar First Quarter 2010 Earnings Call Investor Presentation
Globalstar First Quarter 2010 - Earnings Call Investor Presentation May 6.201000 |
Slide 2: Safe Harbor Language
Safe Harbor Language of the Private S l Ref of 1995, Sf sand of our products and new Si including our SPOT™ S Messenger: our ability to retain and migrate our auch or 1 fa lites, including the . groundsbs facilites operated by us or by independent g sperators; our ability ducts and the pace nd avail
Slide 3: Introduction
Introduction Conference C: gend: 1. Introduction 2. Key Quarterly 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
Slide 4: Globalstar — The World's First MSS Consumer Products Company
Globalstar — The World’s First MSS Consumer Products Company 2009 2010 2011 and beyond... ‘SPOT™ Satellite GPS ‘Messenger - SPOT SPOT HUG ‘SPOT Delorme Satelit GPS Communicator SPOT Assist ~ Roadsig} ‘and Maritime Serviced Future SPOT and ‘Simplex Consumer Devices @ aes Commercial Availability NOTE:
Slide 5: First Quarter Highlights
First Quarter Highlights NEW Consumer Product — World’s First Handheld GPS and Satellite Communicator Delorme PN-60w with SPOT Communicator: + Target: Outdoor GPS users * combines GPS navigation utility with custom messaging and SPOT emergency notification + Product delivery expected late spring 201
Slide 6: First Quarter Highlights
First Quarter Highlights anding Glo! Market Presence Globalstar further established its retail consumer market presence with the resumption of shipping of the new SPOT Satellite GPS Messenger™ Globalstar has received orders for more than 230,000 SPOT consumer units to the more than 10,000 retail poi
Slide 7: First Quarter Highlights
First Quarter Highlights Consolidation of Axonn LLC - Solidifies Globalstar’s retail consumer messaging and tracking back-office platform to drive the development of applications hardware by M2M developers Axonn is a leading developer and manufacturer of GPS asset-tracking and messaging products inc
Slide 8: First Quarter Highlights
First Quarter Highlights Globalstar Asia Pac rean Gateway Operatoi In February Globalstar announced a joint venture agreement with Korean-based Globalstar maritime satellite services provider Arion Communications Co., Ltd €rion Globalstar Asia Pacific will operate the Globalstar gateway ground stati
Slide 9: First Quarter Highlights
First Quarter Highlights Continued Globalstar Subscriber Growth Thanks to our Simplex data and original SPOT Satellite GPS Messenger initiatives during the quarter, Globalstar still exhibited modest Simplex data subscriber growth 2008 2009 2010 The Company completed the period ended March 31, 2010 w
Slide 10: First Quarter Highlights
First Quarter Highlights ThalesAlenia oy — ae Globalstar ariaf@dpace Service & Solutions
Slide 11: 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 First -generation constellation has been re-positioned to accommodate the launch of the second-g
Slide 12: Summary - Satellite Partnership
SUMMARY - SATELLITE PARTNERSHIP oa ThalesAlenia sss Space [BU SOCIETE GENERALE Garporate vestet daring ariaf@pace Service & Solutions @% CREDIT AGRICOLE CE HUGHES. §conncc:ioino turer WS NATIXIS
Slide 13: Second-Generation Satellites
SECOND-GENERATION SATELLITES oN Media and investors Alena Space manufacring ThalesAlenia manne Space
Slide 14: Second-Generation Satellites
SECOND-GENERATION SATELLITES A : Globalstar will conduct four launches of six satellites each using the highly reliable Soyuz launch vehicle. Soyuz has been used for eight previous suecessful Globalstar launches First 90-day launch window is scheduled to open July 5, 2010 Launch of first six satelli
Slide 15: Second-Generation Satellite Timeline - Five Years of Planning and Execution
SECOND-GENERATION SATELLITE TIMELINE - Five Years of Planning and Execution of Milestones Space Operations Milestones Tie08 207 7008 2008 Zoi0 ie mae snr ren co serine, sara TA. shes ntl armed, coment imnpennan cezvoedtemds| | fr tafane a eee coro iil, Wind wen Tiaeable a of March 2010
Slide 16: 2009 Finance Review
2009 Finance Review
Slide 17: Fully Funded Business Plan
Fully Funded Business Plan (S in Mitfions) Liquidity as of 3/31/2010 $ 293 2nd Generation Constellation CapEx Thales Alenia Space $ 90 Arianespace $ 27 Ground Segment /1 $ 32 Launch Insurance $ 40 $ 189 Remaining Liquidity $ 104 /1 Not essential to 2nd generation satellite deployment. * From a capit
Slide 18: Quarterly Financial Summary
Quarterly Financial Summary (S in Thousands) Revenue S 15163 $1716 «SI7EQ1 «S$ SATD SAS BTI Operating Expenses S 32004 S$ 28317 S 29,198 S$ m7S1 S$ 24232 (Operating ncomei(Loss) STVTEy SR Sey Say See ther Income/Expense) S$ GIT) SB) S658 S| (R012) $25,981) Net incemai(Loss) Say ST Ss Sy EBITOA S (16
Slide 19: Aggressive Cost Management Continues to Yield Near Breakeven Results
Aggressive Cost Management Continues to Yield Near Breakeven Results (Sin Thousands) ‘0.000 $20,000 15.000 $10.00 vee ary 209 ned Opeatng Eipenees HT Revena]
Slide 20: Low Retail Monthly Churn Coupled With Stable ARPU
Low Retail Monthly Churn Coupled With Stable ARPU Low Monthly Retail Churn i Stable ARPU as aa aa ame ato
Slide 21: Demonstrated Subscriber Growth
Demonstrated Subscriber Growth YOY Growth 0% 01.08 2.08 03.08 04.08 01.09 0209 03.09 4.09 110 ap BGO Ee
Slide 22: Closing Remarks
Closing Remarks
Slide 23: Summary - Satellite Spectrum Holdings
SUMMARY - SATELLITE SPECTRUM HOLDINGS _ Globalstar lias more than 25 MHz of global satellite spectrum and more than 19 MHz of ATC spectrum authority With new wireless products and services being introduced on a regular ba: and increased demands for wireless broadband), we are seeing a heightened awa
Slide 24: Summary - National Broadband Plan
SUMMARY - NATIONAL BROADBAND PLAN In March 2010 the Federal Communica (FCC) addressed this issue when it released, “C nyanrew fing America: The National Broadband Plan. In order to help ensure i wireless spectrum tha The Plan recommended the S should grant licensees flexi der the ATC regime in the,
Slide 25: Broadband Plan - What Does This Mean for Globalstar?
BROADBAND PLAN - WHAT DOES THIS MEAN FOR GLOBALSTAR? Proposed changes may provide Globalstar with the ability to further Utilize increased ATC authority withont the current gating requirements or restrictions (spare satellite, dual more satellite devices, and other constellation requirements) The pl
Slide 26: Summary - Globalstar Value Drivers
SUMMARY - GLOBALSTAR VALUE DRIVERS 1. MSS Core Business Fara caracem ‘Approx 60% EBITDA Guia Wea Margin at $200m-S250m ae of recurring revenue Pe diel | | + generating $100m-S125m_ of annualized EBITDA 2. Consumer Retail Business New GPS products and services, secured TP and supply 500,000 activated
Slide 27: Globalstar
Globalstar’ www.globalstar.com www.findmespot.com For additional investor information please contact Dean Hirasawa - Director, Public and Investor Relations (408) 933-40 dean.hirasawa@globalstar.com
Slide 28: Appendix A
Appendix A Detinton of Terms and Reconciiation of Non-GAAP Financial Measures ‘Areconcitaton of
Slide 29: Appendix A (continued)
Appendix A (continued) taxes, depreciation, such as net ‘ther companies. interest, 4 by eliminating pricing, of that EBITD! similar industries, As indicated, expense on our capital assets or the payment operations. Because EBITD/ Because of measure operating performance. @