Globalstar, Inc. · NASDAQ:GSAT
Globalstar — Global Opportunities Conference (September 2013)
19 slides from Globalstar's conference presentation, Sep 19, 2013
Slide 1: Global Opportunities Conference (Corrected)
+ GlobalStar* Global Opportunities Conference (CORRECTED) September 19, 2013 GlobalStar*
Slide 2: Safe Harbor Language
Safe Harbor Language This presentation contains certain statements that are “forward-looking statements’ within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncert
Slide 3: Recent Accomplishments / Highlights
Recent Accomplishments / Highlights Duplex Restoration & New Product Rollout * With all second-gen satellites in service, Duplex coverage has continued to improve materially and has been fully restored * In Q2.2013, Duplex minutes of use increased 41% over the prior year period * In May 2013, SPOT G
Slide 4: Globalstar's Successful Launch Campaign
Globalstar’s Successful Launch Campaign Globalstar is the first MSS provider to successfully launch a second-generation constellation of LEO satellites, years ahead of its competition Launch 1 — Oct 10 Launch 2— July ‘11 Launch 3 — Dec ‘11 Launch 4—Feb ‘13 * Four successful launches Launch All new s
Slide 5: Globalstar's Addressable Market
Globalstar’s Addressable Market GlobalStar* < . in * Provides altemative network * Provides low cost altemative to \dustries that may require access in areas of political international roaming charges them to be outside cellular instability when traveling abroad The mapriy of ie word's reach, such a
Slide 6: Globalstar Capacity is Fungible Across User Types
Globalstar Capacity is Fungible Across User Types Globalstar’s Second-Generation constellation and network have the capacity to accommodate 34 billion text messages, M2M transmissions or other small-bit messages or 19 million voice or data minutes per day. Globalstar’s network architecture (bent-pip
Slide 7: Broadening MSS Relevance
Broadening MSS Relevance New Products Launched This Year New Product Pipeline Over Next Two Quarters & id ‘SPOT Global SPOT Gen3 Miniature M2M Universal Kit | Consumer Asset _ Phi Tr itt SPOT Gen3 one ie eSaeaRE: Tracker Bluetooth + smatlightweignt, |+ Bateyife2xsPoT2 | * Smalestandmost | * Features
Slide 8: Revolutionizing MSS
Revolutionizing MSS ) a $100 MASS MARKET SOLUTION 2 BILLION PEOPLE 7 OUT OF CELLULAR COVERAGE \ Consumers around the \ globe will depend on fb / GLOBALSTAR for their yA communication needs 75% LANDMASS NOT SERVED 8 GlobalStar*
Slide 9: Distribution Strategy to Support Consumer Take-Up
Distribution Strategy to Support Consumer Take-Up + Historically, the mobile satellite industry has relied on indirect sales channels such as dealers / resellers to distribute products to predominately enterprise users ‘+ Globalstar revolutionized the sector with its push into the consumer segment —
Slide 10: 5.75% Notes Exchange
5.75% Notes Exchange On May 20th, 2013, Globalstar successfully completed a refinancing of its 5.75% notes by entering into an Exchange Agreement with the holders, resolving the April 1, 2013 put ¢ Thermo invested $25 million into Globalstar to facilitate the transaction and an additional $5 million
Slide 11: COFACE Facility Successfully Amended
COFACE Facility Successfully Amended Facility Amendment reduces near-term principal obligations and materially improves financial covenants * Consent Agreement executed May 20, 2013 and Amended and Restated Facility Agreement effective August 22, 2013 * First principal repayment date will be deferre
Slide 12: Globalstar Worldwide Spectrum Allocation
Globalstar Worldwide Spectrum Allocation Globalstar’s spectrum allocation is the world’s best model for globally harmonized spectrum, representing the only globally harmonized spectrum position of this size in the world. * Globalstar holds worldwide authority from the ITU for 25.225 MHz of MSS spect
Slide 13: Globalstar's Spectrum Plan
Globalstar’s Spectrum Plan ‘+ Near-Term Plan: Obtain regulatory authority to provide terrestrial wireless services, including mobile broadband services such as TLPS and LTE, within Globalstar's exclusively licensed 2.4 GHz spectrum + Long-Term Plan: Add Uplink spectrum within the AWS-5 Terrestrial l
Slide 14: TLPS
TLPS TLPS provides immediate solution to acute “Wi-Fi Traffic Jam” — 2.4 GHZ unlicensed spectrum is exhausted without an alternative solution “The Nation's demand for unlicensed services has increased so dramatically that we need more spectrum to support these services. The 2.4 GHz band, while criti
Slide 15: Historical Financial Summary
Historical Financial Summary * Post-Thermo acquisition in 2003, and up through 2006, after which constellation issues presented challenges, Globalstar operated a high growth and high margin business * Globalstar was able to leverage the highest quality voice service and least expensive equipment and
Slide 16: Recent Financial Performance
Recent Financial Performance Duplex ARPU Highest Since Q4 2009 32300 ) $2241 se200 its Gaile Nee e100 i somo sd sear ites sie0 $1833 gi7e9 S895 5349 steo0 sur a Ke i i am Mia I sro00 con Gud (eel ie lend Gul man asi i Lt ery ee ADJUSTED EBITDA“ uo eee ae rns pines om as Operational Inflection Point
Slide 17: Globalstar Value Drivers
Globalstar Value Drivers * Debt refinancing provides financial flexibility and eliminates near-term financial uncertainty Operational * Second generation system provides significant cost benefits and network performance improvements — enhancements years before our competitors & Second-Gen Benefits *
Slide 18: Annex A — Reconciliation of Annual Adjusted EBITDA
Annex A — Reconciliation of Annual Adjusted EBITDA inmitions) Net loss Intrestincome and expense, nat Dematve (gan ss Income tx expense (benef) Ganon exingushmert of debt Depreciaton, amrtzaton, and acreton Other noome (expense) EBITDA, Reduction nth val of ese, vert & impsiments ‘Stock Compensaton
Slide 19: Annex B — Reconciliation of Quarterly Adjusted EBITDA
Annex B — Reconciliation of Quarterly Adjusted EBITDA ° GlobalStar*
Globalstar — Global Opportunities Conference (September 2013) on 6ix