geoeye & digitalglobe merger simulation

Martin AlnesMartin AlnesAurore CassinAurore Cassin

Daria ChebatariovaDaria ChebatariovaIndra Pratama Indra Pratama

Qiong QiQiong Qi

E-mails from NGA

Because of EnhencedView

cuts, we need you for 3 more

months

Because of EnhencedView

cuts, we need you for 3 more

months

We ‘ll renew your contract for a

whole year

We ‘ll renew your contract for a

whole year

Overdependence risk

They had to merge because of EV’s downsizing and spreading budgetary constraints.The new entity may decide to considerably increase its revenues from commercial end-users.

May 4, 2012 - GEOY proposes acquisition of DGI May 6, 2012 - DGI rejects unsolicited acquisition

proposal by GEOY July 23, 2012 - DGI and GEOY approves definitive

merger agreement December 3, 2012 – GEOY & DGI special shareholders

meeting

EV(mil) Ebitda/REV EBIT/REV EV/EBITDA EV/EBIT EV/REV REV/empDigitalGlobal 1079,79 42,53 % - 3,17 - 3,18 480

GeoEye 806 48,18 % 27 % 4,75 8,31 2,37 480Gilat 160,27 11,33 % - 4,07 - 0,46 256

Echostar 1651 18,08 % 2,93 % 3,31 20,43 0,6 657LORAL 1178,83 11,77 % 8,85 % 9,04 12,03 1,06 382

GLOBCOM 182,15 10,25 % 6,94 % 4,66 6,87 0,48 767Orbital 725,58 8,36 % 5,93 % 1,14 1,6 1,13 384Adtran 1764,3 27,97 % 26,30 % 8,79 9,32 2,46 412

Trimble Nav 5695,59 16,08 % 9,51 % 21,98 36 3,46 310Bae systems 14930,21 13,03 % 8,83 % 4,16 6,13 0,54 206

Orbcomm 60,62 12,91 % 2,13 % 10,14 61,54 1,3 340

Iridium 845,18 45,43 % 20,04 % 4,84 10,98 2,42 1768

Avg. 1565,4 23,26 % 13 % 6,33 15,72 1,73 496,44

*Finacial reports

Original merger offer with a 34% premium over last trading price.

Operating synergies

Extension of market share

Maintaining of 3 satellites

The benefits for the customers

from an optimized constellation

Enabling of new solutions due to

extensive archive and collection capacity

combined with value added production and

advanced analytics

Expected higher returns for

shareholders

Efficiency gain

The source: www.digitalglobe.com

The source: www.digitalglobe.com

Revenue enhancements (387 millions to 600 millions in 2012)

Cost saving Decrease of capital expenditures (200 millions) Increase of the free cash flow profile Debt capacity Same currency

Resources: Yahoo Finance, DigitalGlobe

Diversify Customer Base

CAPEX Efficiency

New offering (services, products)