Slide 1: Q3 2009 Earnings Call Presentation
aN Globalstar Q3 2009 Earnings Call Presentation November 5, 2009
Slide 2: Safe Harbor Language
ZN Safe Harbor Language Globalstar This presentation contains certain statements that are, or may deemed to be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of assumptions risks and ‘uncertainties, m
Slide 3: Introduction
Introduction iN Introduction Quarterly Operational Highlights — Peter Dalton (Chief Executive Officer) Current and Second-generation Constellation Update — Tony Navarra (President, Global Operations) Quarterly Finance Review — Fuad Ahmad — Sr. Vice President and Chief Financial Officer Closing Comme
Slide 4: Key Operational Highlights
Key Operational Highlights Globalstar’
Slide 5: Operational Highlights: $738 Million Financing
Operational Highlights rte a Globalstar’ Key Th 1. On July 1st Globalstar announced completion of a $738 million financing. Alenia “Space ariaf@¥pace Service & Solutions - The financing funds the manufacture, delivery and launch of the Company’s first 24 second-generation satellites - Also provides
Slide 6: Second-Generation Network Provides Superior Functionality at Approx 10% of the Cost
Second-Generation Network Provides Superior Functionality aN at Approx 10% of the Cost of First-Generation Network* Giobalstar ® Second-generation satellites are designed to secure Globalstar space segment beyond 2025 15 years ™ Once deployed, the second- generation constellation is $4.5 billion | $
Slide 7: Operational Highlights: Subscriber Growth
Operational Highlights Fale av Globalstar ghlights and Events 2. Significant Simplex data and SPOT Satellite GPS Messenger subscriber growth during the third quarter of 2009. - The Company completed the period ended September 30, 2009 with 382,313 subscribers - 52,925 more than it had at September 3
Slide 8: Operational Highlights: SPOT Orders and Distribution
Operational Highlights an,” 3. K Events Qua As of November 5, 2009 Globalstar had received orders to ship more than 175,000 SPOT Satellite GPS Messenger units to distributors around the world UWE TOTELLABOUTIT SPOT Satellite GPS Messenger aay distribution agreements were completed with Best Buy Co.,
Slide 9: Operational Highlights: New Consumer Product
Operational Highlights we \ Globalstar" Key Third Quarter Events 5. NEW Consumer Product - Initial limited quantities of its new enhanced SPOT Satellite GPS Messenger began in September. - The new SPOT device is approximately 30 percent smaller and lighter than the original revolutionary and award-w
Slide 10: Post-Quarter Operational Highlight: SPOT HUG
Post-Quarter Operational ge hi Highlight Globalstar’ Satellite-based security, theft- recovery and messaging product for the recreational maritime market - Introduced on October 29% ace, oye at the 2009 Ft. Lauderdale Sate” gu International Boat Show - HUG monitors the boat’s location and sends “una
Slide 11: SPOT HUG: How it Works
Post-Quarter Operational Highlight SPOT HUG combines the functionality of asset protection and recovery with the SPOT Satellite GPS communication features. How it Works gone, © Mision, 1160S stelites provide signals {2SPOT HUG Base Statins onward GPS chip daterrines the asset’ GPS lation and sends t
Slide 12: Globalstar — The World's First MSS Consumer Products Company
Globalstar’ Globalstar — The World’s First MSS Consumer Products Company vt rarernet B: me =» b . GPS *NOTE: Globalstar product image depicted above is 2 concet only "
Slide 13: Operational Highlights: Simplex 2.0 Network Upgrades
Operational Highlights 6. Quarter Simplex 2.0 Network Upgrades - The software upgrades are installed at gateways equipped with Simplex data appliques - enhance the overall customer messaging capacity by 10X. - increase the data receiver sensitivity - installation expected to be completed in mid Nove
Slide 14: Current and Second-generation Constellation and Network Update
Current and Second-generation Constellation and Network Update 8 Globalstar’
Slide 15: First-Generation Constellation Status
First-Generation Constellation Status | Current constellation continues to perform as expected > Simplex data performance continuing at 98 percent messaging reliability ® Duplex data and voice customers now have access to a new and improved web-based call times tool or CIT > provides customers with
Slide 16: First-Generation Constellation Status
First-Generation Constellation Status ® First-generation satellites > used for verification testing of Thales’ second-generation satellite control center software ® Spare Satellites Launched in 2007 > Continue to operate and perform as expected ® Expect no Further Degradation of Voice and Duplex Dat
Slide 17: Second-Generation Satellite Constellation and Launch Status
Second-Generation Satellite Constellation “ and Launch Status oe ®& A major earthquake in Italy in April 2009 damaged its satellite component fabrication facility in TV Aquila, Italy, but not any Globalstar components. ® Thales Alenia Space informed us that delivery of our initial satellites may be
Slide 18: Second-Generation Satellite Constellation and Launch Status
Second-Generation Satellite Constellation Pa \ and Launch Status Globalstar ® System Validation Testing and Operational “fit checks” have been completed , ThalesAlenia ® Final Assembly Integration : and Testing (AIT) of Flight Model satellites has already commenced at Thales’ Rome facility ® Qualifi
Slide 19: Ground Network Update: Nigeria
Ground Network Update ak, ® Nigeria Update — Globalstar has completed construction of the gateway > coverage in Nigeria, the surrounding portions of Western and Central Africa, and parts of the coastal Atlantic and Gulf of Guinea maritime region. > Globaltouch (West Africa) Limited (GWAL) based in L
Slide 20: Ground Network Update: Hughes CDR
Ground Network Update wey Globalstar HUGHES. connect to the future ® Ground Segment CDR > Hughes Network Systems completed critical design review of the Globalstar RAN (radio access network) portion of the next-generation ground segment in August ® Satellite Interface Chipset CDR > Hughes also compl
Slide 21: Q3 2009 Finance Review
cia Q3 2009 Finance Review 20
Slide 22: Aggressive Cost Management Has Yielded Breakeven Results in Recent Quarter
Aggressive Cost Management Has Yielded <Brealiev i x Breakeven Results in Recent Quarter Globalstar (in Thousands) 90.000 $25,000 $20,000 15.000 10,000, $5,000 ry ai08 208 03.08 808 ats 203 3.08 41/ Please see Appendix A to this presentation for the definition of Adjusted EBITDA. a
Slide 23: Continued EBITDA and Adjusted EBITDA Improvement
Continued EBITDA and Adjusted EBITDA Improvement Revenue Operating Expenses Operating Income/(Loss) Other Incomel(Expense) Net Income/(Loss) EBITDA Adjustments to EBITDA Adjusted EBITDA Globalstar (Sin Thousands) Three Months Ended March 31, June 30, Sept 30, 2009 2009 2009 15163 $ 15,716 $ 17,521 3
Slide 24: Low Retail Monthly Churn Coupled With Stable ARPU
Low Retail Monthly Churn Coupled With Stable ARPU Low Monthly Retail Churn Globalstar’ Stable ARPU 23
Slide 25: Demonstrated Subscriber Growth
Demonstrated Subscriber Growth aX, Globalstar’ YOY Growth 15% pase seat 5598 09.73 sists a 7% 0% 54% 1.08 azos eos Reta GOST 24 at-03 2.03
Slide 26: Fully Funded Business Plan With Substantial Cushion
(Sin Mitions) Fully Funded Business Plan With Substantial Cushion (Sin mitions) September 30, 2009 mF $400 g Globalstar’ Liquiaity as of 0973072003 sat ‘2nd Generation Constellation Capex ‘Thales Alenia Space. $138 ‘Asanespace sit CGreund Segment 9) $36 Launch insurance: sa coz) Remaining Liquidity
Slide 27: Proven Historical Performance
fx Proven Historical Performance Globalstar: Total Revenue (n 60003) Sunscsiers (in 000s) 03.06 Avg Growth was 20% 03.08 409 growth 23.6% {Total Revenue (in| | Subscribers (in| 8000s) et 000s) Post frst 1001 Post ft. gen satelite A} gen satelite degradation 50; degradation eto pers 2003 2005 2007 20
Slide 28: Closing Remarks
a ss Globalstar Closing Remarks a
Slide 29: Globalstar funding paves way for launch of second-generation satellites
Globalstar funding paves way for launch of second-generation satellites and continues development of next-generation ground segment ThalesAlenia ‘Space thiainhen > arial Space HUGHES. conve: ioits tive” "NOTE: Globalstar product mage depicted above is 3 concent only
Slide 30: Globalstar — The World's First MSS Consumer Products Company
ae Globalstar Globalstar — The World’s First MSS Consumer Products Company “ey 2. “B: 8 = @ GPS "NOTE: Globalstar product mage depicted above is 3 concent only
Slide 31: Globalstar — Integrated Consumer Satellite Solutions for Tomorrow
KN Giobalstar Globalstar — Integrated Consumer Satellite 2_ - wf N Giobalstar Solutions for Tomorrow Imbedded or integrated OEM for other oy a” ™ manufacturers SIC “Satellite Interface Chip -High Performance -Low Cost *ALLStar S -ALL Handsets -ALL Places HUGHES. conto niior Globalstar Next- Generati
Slide 32: Monetizing our ATC/CGC Spectrum for Terrestrial Consumer Solutions
covalsar Globalstar — Monetizing our ATC/CGC Spectrum for Terrestrial Consumer Solutions Lan heal 9; Nrange = v -S r%\ oP =Seeriens = x 4G WiMAX Wireless Globalstar Broadband to over 17 States at 31
Slide 33: Globalstar - Value Drivers
Globalstar - Value Drivers x N Globalstar 1. MSS Core Business 2006 30% EBITDA with Beppon fos Eat re ‘Margin at $200m-S250m $140m in revenue - ran of recurring revenue Sane generating $100m-S125m_ + of annualized EBITDA 2. Consumer Retail Business Received orders to ship 500,000 activated units 7 m
Slide 34: 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 35: Appendix A: Definition of Terms and Reconciliation of Non-GAAP Financial Measures
Appendix A Definition of Terms and Reconciliation of Non-GAAP Financial Measures We utlize cars nancial measures that are widely used in the tlecomnmuncatons industry rd are not calclated based on GAAP. A reconclition ofthese measures 10 GAAP ard a ascussion of ceran the’ operating metrics used inth
Slide 36: Appendix A (continued)
Appendix A (continued) Low Nee 1, EBITDA represents eamings 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 t