Matthew O’Connell, CEO May 28th, 2009 Matthew O’Connell, CEO May 28th, 2009.
Transcript of Matthew O’Connell, CEO May 28th, 2009 Matthew O’Connell, CEO May 28th, 2009.
Matthew O’Connell, CEOMay 28th, 2009
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Key Enablers for SuccessfulPublic-Private Partnership
• Favorable Regulatory Framework• Committed, long-term, “Anchor
Tenant” – To help attract outside investors
• Viable channels for commercialization of excess capacity
• Commitment to High Service Levels• Good availability of skilled and well
educated people• Mutual trust and long term outlook
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Key U.S. Satellite Laws and Policies
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Advantages of Commercial Satellite Imagery to Government Programs
• Provides more “eyes in the sky” – originally, defense/intelligence• Reduces taxpayer burden - commercializes excess capacity and
provides cost-effective Remote Sensing. • Quickly provides capabilities that typically take longer for
Government programs to supply.• Promotes healthy competition that aides innovation and
accelerates the introduction of new services.– Disaster relief; Environmental and agricultural monitoring; etc.
• Broadens the knowledge and user base beyond Government defined needs.– More exposure to diverse user solutions and needs.
U.S. Government Investment in Industry
Initial NGA Investment
Incremental NGA Investment
2004 - 2009
$435$500$350
$150
$500
April 2003: The President signed the "U.S.
Commercial Remote Sensing Policy", which says
that all Federal agencies should use commercial
imagery to the maximum extent practical.
ClearView Program(2003-2007)
ClearView Program(2003-2007)
NextView -1 Vendor(2003 Award)
NextView -1 Vendor(2003 Award)
NextView-2 Vendor(2004 Award)
NextView-2 Vendor(2004 Award)
2003
• The US Government has invested over $2.0 billion in the commercial imaging satellite industry post 9-11
• IKONOS satellite was a substantial provider under ClearView contract• Under the NextView contract, NGA funded half of the development of two next-
generation, high-resolution imaging satellites, including our GeoEye-1
• The US Government has invested over $2.0 billion in the commercial imaging satellite industry post 9-11
• IKONOS satellite was a substantial provider under ClearView contract• Under the NextView contract, NGA funded half of the development of two next-
generation, high-resolution imaging satellites, including our GeoEye-1
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NextView program
• US Government funded half the cost of two next generation satellites – response to 9/11 and desire to establish robust imagery industry for other purposes
• In return, US Government got source of imagery that supplements US Government systems at a very reasonable price.
• Funding for GeoEye - 1– Half the cost of the satellite: $217 MM – paid over 4 year construction
period according to milestones– Committed to minimum imagery purchase – $197 MM over 18 months;
since revised to flat $12.5 MM per month– GeoEye raised $250 MM debt (Credit Suisse and Deutsche Bank) and $107
MM equity – Element in award decision: Viable Commercial Model
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GeoEye Today• Locations
– Headquarters: Dulles, Virginia– Operation Facilities
• Thornton, Colorado• St. Louis, Missouri• Mission, KS
– 4 Secure Facilities• Employees: 500+
– High percentage with advanced degrees• Imagery from diverse platforms
– GeoEye-1– IKONOS– Aerial– OrbView-2
• Value-added production services• NASDAQ: GEOY
– Profitable, growing, well capitalized– Revenue: 1st quarter 2009 up 26% over 2008; 2008
full year $149MM
A leading global provider of location-
based intelligence services.
To enable timely, accurate and accessible
location intelligence.
Who we areWho we are
Our MissionOur Mission
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Aerial SensorsAerial SensorsAerial SensorsAerial Sensors
GeoEye ConstellationGeoEye Constellation
Satellite SensorsSatellite SensorsSatellite SensorsSatellite Sensors
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Revenue Mix
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Production/Processing Expansion• St. Louis – “source
agnostic” – increasingly important as more satellites are launched– Expanded facility by 50%
• Thornton– Tripling size available for
classified production• Expanding web-based
delivery of products and services
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GeoEye’s Milestones
• GeoEye acquires aerial company and invests in China
• GeoEye acquires Space Imaging• GeoEye begins trading on NASDAQ
• Predecessor company founded
• Launch of OrbView-2 satellite
• Launch of IKONOS satellite
• GeoEye Wins $500M DoD NextView contract
• Launch of GeoEye-1 satellite
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2009• NGA signs Service Level Agreement with GeoEye ($12.5M per mo)
• IKONOS Servicing ClearView Contract2002
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Increase in Financial Value
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2003 2009
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Equity Value
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Equity Value
$32 MM
$673 MM
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Enterprise Value
$32 MM
$673 MM
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Headcount Growth
“Only by attracting the best people will you accomplish great deeds”
“In a brain based economy, your best assets are your people”
Gen. Colin Powell, “Advice on Leadership”
2004
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2009500+
20052006
20072008
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GeoEye-1 Half-Meter Imagery - Jan. 30, 2009 - Eiffel Tower, France