Globalstar, Inc. · NASDAQ:GSAT
Globalstar — Investor Day (December 2024)
83 slides from Globalstar's investor day presentation, Dec 12, 2024
Slide 1: Slide 1
Slide 2: Analyst & Investor Day
Analyst & Investor Day December 12, 2024 Connect Smarter Proprietary & Confidential
Slide 3: Disclaimer
Certain statements contained in this presentation other than purely historical information, including, but not limited to, expectations regarding future revenue, financial performance, financial condition, liquidity, projections, estimates and guidance, statements relating to our business plans, obj
Slide 4: Today’s Globalstar Speakers
Today’s Globalstar Speakers Paul Jacobs Rebecca Clary Mersad Cavcic Chief Executive Officer Chief Financial Officer Chief Marketing Officer Alex Katko Kyle Pickens Tamer Kadous Tim Taylor Vice President of Vice President of Strategy Vice President of Vice President of Finance, Product Engineering Te
Slide 5: Agenda
Topic Speaker(s) Start Time (ET) Speaker Introductions Jason Bernstein 9:00 AM CEO Overview Paul Jacobs 9:05 AM Today’s Terrestrial Wireless Kyle Pickens / Tamer Kadous 9:40 AM Agenda MSS Subscribers Mersad Cavcic / Alex Katko 10:30 AM Break 11:15 AM Government Mersad Cavcic 11:30 AM Wholesale Consu
Slide 6: CEO Overview
CEO Overview Proprietary & Confidential /
Slide 7: Enabling mission critical connectivity
Enabling mission critical connectivity 9
Slide 8: Recent highlights: new constellation, updated services agreement, XCOM RAN
New Satellite constellation Commercial availability Updated Services Agreement of XCOM RAN deployed by with Wholesale Customer major global retailer First 5G RAN over n53 Parsons mission-critical solution tailored for radio frequency congested environments partnership Proprietary & Confidential /
Slide 9: Globalstar at a glance
IoT Globalstar, Inc. is the next generation Government mobile satellite and communications services provider Retail Consumer Spectrum 340+ 175+ L: 8.725 MHz S: 16.5 MHz (11.5 Wholesale Consumer Employees across Patents MHz Band n53) 15 countries C: 339 MHz 30+ Years in Business 120+ Countries Servic
Slide 10: Global Footprint & Ground Infrastructure
Global Footprint & Ground Infrastructure Globalstar International Terrestrial Status Nemea, Greece Kilingi-Nomme, Estonia Dublin, Terrestrial Authority Obtained Wasilla, AK Ireland High River, Canada Terrestrial authority in U.S., Canada, Brazil, Spain & Mexico is 11.5 MHz. Authority over Smiths Fal
Slide 11: Business platform: flexible connectivity, spectrum, financial strength
IoT Government Bent Pipe Flexible connectivity platform for affordable and mission critical applications Retail Consumer Wholesale Spectrum Spectrum Consumer Capital asset to allow innovative market approach Financial Strength Recurring revenue with limited capex XCOM RAN Band n53 funding needs 13
Slide 12: Spectrum Update
Spectrum Update • The FCC approved an extension of existing authorization by 15 years to operate − Reaffirms our exclusive rights within the license portion of the Big LEO Band • The Commission explicitly acknowledged the essential nature of our voice and data communications services, particularly h
Slide 13: Globalstar’s Satellite System
Globalstar’s Satellite System How it Works Key Benefits • Mid-band spectrum for mobility • Allows for small, lower cost and energy efficient terminals C-Band S-Band • Bent pipe architecture offers flexibility for L-Band ground upgrades • Satellite coverage across ~99% of PSTN world’s population Inte
Slide 14: Constellation as a platform for innovation
• Constellation as a platform for innovation IoT Limited investment capital allows for pathfinding opportunities • Multiple technologies and business models using available Retail 15% capacity Consumer − Commercial IoT (currently one-way, two-way in alpha testing) − SPOT for consumer and enterprise
Slide 15: IoT: Parsons partnership and SPOT
IoT • Parsons exclusive partnership to support the public, government, and defense sectors Retail • SPOT continues to be a significant revenue stream Consumer despite direct-to-device ("D2D") progress • Scaling Commercial IoT with new and expanding customers and applications in various industry vert
Slide 16: Wholesale Consumer: smartphone innovation cycle
• Scale driven by smartphone innovation cycle • Validation of Globalstar's business model Wholesale − Existing network architecture Consumer − Global dedicated spectrum − Operating excellence • Handset Original Equipment Manufacturer (OEM) share gain and replacement cycle 18
Slide 17: Updated Services Agreement with Wholesale Customer
• Updated Services Agreement with Wholesale Customer − Expanded services to customer over a new mobile satellite services network − New satellite constellation Wholesale − Expanded ground infrastructure Consumer − Increased global MSS licensing • Globalstar will retain control and operate network −
Slide 18: Band n53 deployable in 12 countries
• 3GPP band deployable in 12 countries for terrestrial use − 100% coverage over the U.S., Canada & Mexico • Platform to expand business dimensions Band n53 − US: Mission critical applications aggregated with CBRS − Anchor for unlicensed cellular − Global private networks • Scaling through solution p
Slide 19: Mexico terrestrial authorization for Band n53
• Globalstar received 10-year terrestrial authorization from the IFT to deploy and operate Band n53 in Mexico Band n53 • Globalstar Band n53 footprint now covers nearly 1B POPs over 12 countries • Band n53 Spectrum ecosystem and partners keeps growing and building revenue opportunities 21
Slide 20: XCOM RAN high performance 5G architecture
• High performance 5G architecture to enable new use cases / verticals − Automation − Industrial 5G XCOM RAN − Critical Infrastructure • Ease of deployment for mission-critical applications • Organic development by team of world class experts 22
Slide 21: XCOM RAN commercial availability
• Commercial availability of XCOM RAN since Mobile World Congress (MWC) February 2024 XCOM RAN • Solution being deployed by major global retailer with ongoing deployment in 2025 • First live 5G Radio Access Network over n53 23
Slide 22: Journey of Innovation – XCOM RAN
Journey of Innovation – XCOM RAN From Product Market Fit to Scale up Customer #3 Customer #2 MVP Customer #1 (internally defined) 24
Slide 23: TAM $B (in 2030)
TAM $B (in 2030) $16 IoT Government Consumer Retail $14 Government $12 Retail $10 Consumer Wholesale Spectrum Consumer $8 Commercial IoT $6 $4 Private Networks (Target) XCOM RAN Band n53 $2 $0 Total Addressable Market (TAM) Sources: • Private Networks: SNS Telecom & IT Report 2024 • Commercial IoT:
Slide 24: Partnership for Global Reach
Partnership for Global Reach Paul Jacobs Strive Masiyiwa Chief Executive Officer Founder & Executive Chairman 27
Slide 25: Terrestrial Wireless
IoT Government Retail Terrestrial Wireless Consumer Wholesale Spectrum Consumer (Band n53 & XCOM RAN) XCOM RAN Band n53
Slide 26: Band n53 Overview
Band n53 Overview • Band n53 is a uniform and increasingly “borderless” spectrum resource • Provides reliable connectivity − Important and high-value use cases • A rare swath of mid-band spectrum not owned by a wireless operator − "Goldilocks" spectrum – propagation allows for building penetration a
Slide 27: Band n53 Market Opportunity
Band n53 Market Opportunity • Clean spectrum resource available for any wireless use case • Carriers or cable companies could add Band n53 to their spectrum inventory across their networks or at heavily used locations • Band n53 private 5G networks provide easy to deploy, campus-wide wireless connec
Slide 28: Band n53 Milestones Met – Driving the Ecosystem
Band n53 Milestones Met – Driving the Ecosystem • Regulatory – FCC approval • Standardization – 3GPP • Chipset inclusion – Qualcomm, GCT • Radios – Nokia, Airspan, CableFree • Modules – Global Telecom, Quectel, Telit Cinterion • Band n53 MHz – now integrated with XCOM RAN 33
Slide 29: Band n53 Increasingly Borderless
Band n53 Increasingly Borderless 12 countries 13.4 million square miles 4 continents All major countries in North America ~1 billion POPs covered 10 billion+ MHz POPs ~4 billion MHz POPs in the United States 34
Slide 30: Selected U.S. Spectrum Precedent Transactions
Band n53 Selected U.S. Spectrum Precedent Transactions (US $ in millions, except spectrum metrics) 600 700 800 900 MHz MHz MHz MHz AWS (1.7-2.1 GHz / PCS (1.9 GHz) 3.6-3.7 GHz 3.7-4.0 GHz 7 $3.16 5 $2.71 $2.31 9 $2.05 $/MHz-POP 3 $1.74 $1.73 8 $1.51 $1.29 $1.07 $1.10 10 $0.96 4 $1.10 $0.92 2 $0.82 $
Slide 31: Spectrum Value – The Big Question
Band n53 Spectrum Value – The Big Question • Based on historical transactions Globalstar's Band n53 spectrum could be worth between $0.5 and $2 per MHz-POP in the US alone − Implying value between $1 and $4 per share for just this spectrum • Bands with complete ecosystems trade at higher values • Th
Slide 32: Band n53 Summary
Band n53 Summary Perpetual Demand Flexibility Recurring No Resource We can meet the We can Revenue Restrictions Spectrum is a need for spectrum take different Long term lease No build out perpetual resource, anywhere there approaches model, high recurring requirements and we have is demand for it in
Slide 33: Band n53 Panel
Band n53 Panel Kyle Pickens Tamer Kadous Deborah Simpier Neset Yalcinkaya VP of Strategy VP of Terrestrial Co-Founder & CEO SVP of America Sales 39
Slide 34: Spectrum + Technology = Unmatched Differentiation
XCOM RAN Spectrum + Technology = Unmatched Differentiation • Band n53 + XCOM RAN: Unique interlocked advantage − Global solution − Mission critical applications • Supercell: Radios constructively collaborate − No handover - homogenous coverage − Multifold increase in capacity • Revolutionary for pri
Slide 35: Pioneer New Markets & Compete Efficiently in Existing Ones
XCOM RAN Pioneer New Markets & Compete Efficiently in Existing Ones wihtout • 5G Private Network (PN) hype − “Best efforts” served by enterprise Wi-Fi − 5G (like 4G PN) does not enable new use cases • New apps (Automation, XR, Mission Critical): − Demand enhanced performance − Limited by shared spec
Slide 36: XCOM RAN Market Opportunity
XCOM RAN Market Opportunity • Warehouse automation / dense industrial 4.0 − AI and autonomous industrial use cases will drive need for density solutions • Retail, fulfillment, and distribution centers • Enterprise, mining, campus networks, extended reality, energy platforms, stadiums, and campuses F
Slide 37: Early Market Validation
XCOM RAN Early Market Validation • Major global retailer Micro-Fulfillment Center (MFC) robotics − Systems sales + recurring revenue • Homogenous high performance in harsh environment 44
Slide 38: Market Segments Targets
XCOM RAN Market Segments Targets High-end automation and enterprise − High value prop, low competition, perfect product-market alignment, sizable General enterprise use cases − Expansion opportunities within existing customer base available to pursue Opportunistic − More development not the focus un
Slide 39: Targeted Market Segments
XCOM RAN Targeted Market Segments Targeted Market Segments TAM in $B $16.0 $14.0 $12.0 30% CAGR $9.6 $10.0 $8.0 $7.6 $6.0 $6.0 $4.0 $4.7 Target Opportunity: $3.7 $5.5 $3.9 35% of TAM $2.8 $2.8 $2.0 $2.1 $1.1 $1.5 $0.0 2025 2026 2027 2028 2029 2030 Target Oportunistic Rest of TAM Target (25% of TAM):
Slide 40: XCOM RAN Building Blocks
XCOM RAN Building Blocks NMS API & Dashboard Dashboard Health Monitoring Performance Radio Units Measurements Log Management Standard Software & Configuration APIs Management • Open-RAN • Stack evolution • Developed own radio • End-to-end solution XCOM RAN Technology partnering with core BBU = Serve
Slide 41: First Live 5G Demo on Band n53 with XCOM RAN
XCOM RAN First Live 5G Demo on Band n53 with XCOM RAN Tamer Kadous Ashar Zia VP of Terrestrial Head of SI&T 49
Slide 42: Demo Setup
XCOM RAN Demo Setup • Over the Air: four radios x four devices on Globalstar Band n53 PN • Three device vendors: Quectel, Telit Cinterion, iPhone • 2,400 sq ft: High density • Demo story: Streaming with background traffic with and without XCOM technology 50
Slide 43: Retail Consumer & IoT
IoT Government Retail Retail Consumer Consumer Wholesale Spectrum Consumer & IoT XCOM RAN Band n53
Slide 44: Retail Consumer Overview
Retail Consumer Overview • ~260,000 active subscribers responsible for $44M in 2023 annual service revenue • 10,000 rescues celebrated in 2024 • Strong brand in outdoor/adventure segment with loyal customer base • Established distribution channels 53
Slide 45: Marketing Opportunity
Retail Consumer Marketing Opportunity • Making targeted, strategic investments in growth segments • Maintaining profitable customer base • Looking ahead: − Enhanced product capabilities − Enterprise market expansion − Selective consumer focus 54
Slide 46: Market Insights
Retail Consumer Market Insights Importance of durability and ruggedness Importance of the battery life of your of your satellite communications device? satellite communications device? 10% 3% 12% 28% 61% 85% Very Important Important Somewhat Important Not Important Very Important Important Somewhat
Slide 47: IoT Market Opportunity ~$2.5B
IoT Market Opportunity Such as: ~$2.5B • Transportation & supply chain logistics TAM through • Fleet management various verticals • Mining & mineral exploration • Animal health monitoring and tracking • Infrastructure projects in remote regions • Utilities • Automotive IoT 57
Slide 48: IoT Market Opportunity
IoT Market Opportunity Growing from 13M connected devices in 2024 to over 80M connected devices in 2032, driven by expansion in transportation and logistics, animal tracking, and automotive IoT verticals Satellite IoT 2024 Satellite IoT 2032 $2.4B $6.1B Autonomous Systems Machine-to-Person Smart Env
Slide 49: Globalstar IoT Overview
IoT Globalstar Overview • Globalstar's LEO satellite constellation delivers cost-effective global asset connectivity • Enables tracking and monitoring to help reduce downtime, drive efficiency, prevent loss and more ~481,000 ~94,000 $23M Average active devices Net adds from 2020 to 2023 Annual 2023
Slide 50: IoT Technology
IoT Technology Unmatched advantages in Cost, Size, Weight and Power consumption with one-way technology: • STX-3 modem • 2.87cm x 2.06cm • 0.14 oz (4 grams) • Multiple years on AAA batteries • Cellular IoT modem price point 60
Slide 51: Subscriber Diversity
IoT Subscriber Diversity Subscriber Count by Region Subscriber Count by Vertical 1% 6% 4% 5% 6% Asia Agriculture 13% 18% Animal Tracking 8% Australia General Telematics Brazil 50% Government Canada 11% Oil and Gas 20% Europe Transporation and Logistics USA Utilities 47% 1% 10% Source: Subscriber cou
Slide 52: Strong VAR Channel
IoT Strong VAR Channel VAR Partner Count by Vertical 1 Closer look at Animal Tracking 4 5 Agriculture • Unlocking this market vertical with 4 Animal Tracking breakthrough in TCO from Globalstar: 9 General Telematics 4 Government − Currently tracking ~83,000 animals Oil and Gas − Four partners leadin
Slide 53: Panel Discussion: Redefining sustainability with Globalstar
IoT Panel Discussion Redefining sustainability with Globalstar Mersad Cavcic Jeff Palmer David Smith Halvor Mjøen Chief Marketing Officer Founder and CEO Global CEO and Co-Founder CTO FindmyAS Satellite Engineering Ceres Tag 64
Slide 54: Next Phase of Growth with New Technology
IoT Next Phase of Growth with New Technology Technology Upgrade Extend current simplex technology to include FWD link, maintain TCO focus with Cost, Size, Weight and Power consumption: • Support command, control, and acknowledgement messages leading to new use cases and market verticals • Half the p
Slide 55: Next Phase of Growth with New Technology
IoT Next Phase of Growth with New Technology Technology Upgrade Satellite IoT Subscriber Market Share Pursuit of validated market opportunity Iridium worth $250-350M Orbcomm* a year: 35% 40% ~$250M • Beta trials expected Total Serviceable Globalstar in Q1'25 Market Annual Myriota • Gaining market sh
Slide 56: Panel Discussion: Command, Control, Acknowledge, Grow
IoT Panel Discussion Command, Control, Acknowledge, Grow Alex Katko David Goldstein Jamie Williams Vice President of President and CEO President Product Engineering Asset Link Global TGI Connect 68
Slide 57: IoT at Scale with Automotive
IoT IoT at Scale with Automotive eCall Telemetry Voice call Map tile + Live Video Call Internet Data Data w/ eCall Traffic Navigation Technology Segment Satellite Primary Hybrid Cellular Primary 5 Mbps (1080P) Data Usage 125 bytes/incident * 1 KB/day per vehicle 10 Kbps 32 Kbps 65 Kbps (256x256 pixe
Slide 58: Fireside Chat: Winning Connected Card from Space
IoT Fireside Chat Winning Connected Card from Space Mersad Cavcic Reinhard Kromer-von Baerie Chief Marketing Officer CIO, Peiker Holding GmbH 71
Slide 59: Four Modes of Growth
IoT Four Modes of Growth 1 One-way differentiation (cost, size, weight, power) 2 New technology introduction (two-way ) 3 Increased ARPU (new capabilities) 4 Growth of the market itself (12% CAGR) Scale through automotive IoT 72
Slide 60: 10 Minute Break
10 Minute Break Proprietary & Confidential /
Slide 61: Agenda
Topic Speaker(s) Start Time (ET) Speaker Introductions Jason Bernstein 9:00 AM CEO Overview Paul Jacobs 9:05 AM Today’s Terrestrial Wireless Kyle Pickens / Tamer Kadous 9:40 AM Agenda MSS Subscribers Mersad Cavcic / Alex Katko 10:30 AM Break 11:15 AM Government Mersad Cavcic 11:30 AM Wholesale Consu
Slide 62: Government & Wholesale Consumer
IoT Government Retail Government & Wholesale Consumer Wholesale Spectrum Consumer Consumer XCOM RAN Band n53
Slide 63: Fireside Chat with Parsons
Government Fireside Chat Paul Jacobs Mike Kushin Chief Executive Officer President, Defense and Intelligence Parsons 77
Slide 64: Wholesale Consumer Overview
Wholesale Consumer Overview In 2022, we announced service with our Customer to provide direct to handset connectivity. Globalstar has allocated 85% of satellite capacity to support the following phases of this service: Current Next Future Existing Satellites Extended MSS Network constellation with s
Slide 65: Extended MSS Network
Wholesale Consumer Extended MSS Network • In November 2024, announced extension to its current service agreement with its Customer where Globalstar will provide: − New satellite − Expanded ground − Increased global constellation infrastructure MSS licensing • Extended MSS Network will be owned by Gl
Slide 66: Overview of Economics
Wholesale Consumer Overview of Economics • Customer fees include a recurring service fee, payments relating to certain service-related operating and capital expenditures, and bonus payments subject to satisfaction of certain licensing, service and related criteria. • 2021 Prepayment Agreement: $94.2
Slide 67: Overview of Economics (continued)
Wholesale Consumer Overview of Economics (continued) • 2024 Prepayment Agreement: $1.1 billion (Infrastructure Prepayment) to fund Extended MSS Network and $219 million (Current Debt Repayment) to retire the Company’s outstanding 13.00% 2029 Senior Notes. Prepayment balance reduced over time through
Slide 68: SPE – Organizational Structure
Wholesale Consumer SPE – Organizational Structure 100% of all terrestrial Globalstar, Inc and MSS revenue 80% Customer Globalstar Domestic & 20% Globalstar SPE International Subsidiaries Ground Station Regulatory Satellite New Assets & Assets Licenses Spectrum Regulatory Licenses 83
Slide 69: Extended MSS Network – Economics
Wholesale Consumer Extended MSS Network – Economics • Total Customer investment of $1.7 billion, including capex prepayments, debt repayment and equity investment • Repayment and redemption terms − Full paydown of the 2024 Prepay Agreement and redemption of the 20% equity investment are expected to
Slide 70: Extended MSS Network – Economics (continued)
Wholesale Consumer Extended MSS Network – Economics (continued) • Globalstar’s incremental service fees tied to the cost of the Extended MSS Network, fees for providing new services to Customer, fees tied to expenses incurred for the provision of such services and performance bonuses • Agreements al
Slide 71: Financials
Financials Proprietary & Confidential /
Slide 72: Financial Overview
Financial Overview $189M YTD $105M YTD 56% $52M 2024 Total 2024 Adjusted YTD Adjusted EBITDA Cash and Cash Revenue (2) EBITDA(1)(2) Margin(2) Equivalents (2) (1) Refer to reconciliation of Net Income (Loss) to Adjusted EBITDA in Appendix (2) Results shown as of or for the year –to-date period ended
Slide 73: Financial Performance
Financial Performance Total Revenue Adjusted EBITDA $247.5 $134.0 $223.8 $116.7 $148.5 $124.3 $57.4 $38.7 2021 2022 2023 2024 Guidance 2021 2022 2023 2024 Guidance Midpoint Midpoint • From 2021 to 2023, increased revenue at a • From 2021 to 2023, increased Adjusted EBITDA at compounded annual growth
Slide 74: Balance Sheet & Liquidity Highlights
Strengthened Balance Sheet Balance Sheet Improved Reduced Net Leverage from & Liquidity Cash Flows 10x in 2020 to Highlights Increased OCF 3x YTD 2024 from $22m in 2020 to $99m YTD 2024 ~$1.8 billion global net operating loss tax carryforward expected to reduce cash taxes 90 Note: 2024 amounts above
Slide 75: Strategic Actions
Nasdaq Uplisting • Globalstar announced in November 2024 that the Company will uplist to the Nasdaq Global Select Exchange • Expect to begin trading on the Nasdaq in first quarter 2025 Recent Reverse Stock Split Strategic • Increase the per share market price to improve marketability and liquidity •
Slide 76: Strategic Investments Scaled to Opportunities
Strategic Investments Scaled to Opportunities Band 53 Commercial XCOM IoT RAN MSS 15% Capacity Government Market Utilization SPOT Retail Investment Incremental spending in the near-term to drive long-term shareholder value 92
Slide 77: Forecast Updates
Forecast Updates 2024 2025 Longer Term Reaffirming our 2024 forecast Introducing our 2025 forecast 1st Full Year of Extended MSS Network Service $million except % Forecast $million except % Forecast $million except % Forecast Total Revenue $245 – $250 Total Revenue $260 – $285 Total Revenue > $495 A
Slide 78: Q&A Session
Q&A Session Paul Jacobs Rebecca Clary Mersad Cavcic Chief Executive Officer Chief Financial Officer Chief Marketing Officer Alex Katko Kyle Pickens Tamer Kadous Tim Taylor Vice President of Vice President of Strategy Vice President of Vice President of Finance, Product Engineering Terrestrial Networ
Slide 79: Appendix
Appendix Proprietary & Confidential /
Slide 80: Capital Structure
Capital Structure (in millions, except for per share price) As of September 30, 2024 (except for share price) Share Price (as of December 10, 2024) $2.28 Basic Shares Outstanding 1,892.3 Plus: Treasury Method Shares 105.5 Adjusted Total Shares Outstanding 1,997.8 Market Capitalization $4,554.98 Debt
Slide 81: Net Income (Loss) to Adjusted EBITDA Reconciliation
Net Income (Loss) to Adjusted EBITDA Reconciliation YTD Through (in millions) Full Year 2024E September 30, 2024 Net Income (Loss) ($12.9) ($23.3) Interest income and expense, net 10.3 13.7 Derivative loss 0.8 1.1 Income tax expense 1.9 2.6 Depreciation, amortization, and accretion 66.5 88.6 EBITDA
Slide 82: Operating Cash Flow to Free Cash Flow Reconciliation
Operating Cash Flow to Free Cash Flow Reconciliation YTD Through (amounts in thousands) 2020 September 30, 2024 Net cash provided by operating activities $22,215 $98,535 Net cash used in investing activities (14,536) (107,719) Less: network related capital expenditures (1) - 91,753 Adjusted net cash
Slide 83: Investor Relations
Contact Us Investor Relations Connect Smarter investorrelations@globalstar.com Proprietary & Confidential /