OSI Geospatial Inc.OSI Geospatial Inc.
Ken KirkpatrickPresident & CEO
TSX: OSIOTCBB: OSIIF
www.osigeospatial.com
www.osigeospatial.com
FORWARD LOOKING STATEMENTS
Certain statements made in this presentation that are not based on historical information are forward-looking statements which are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and Section 138.4(9) of the Ontario Securities Act. These forward-looking statements are subject to risks and uncertainties. Actual results may differ from these projections. The risks associated with the Company's business include risks related to its reliance on international government contracts; the number of large customer transactions and the related lengthy sales cycles in executing those opportunities; competitive bidding processes; uncertainties associated with contract negotiations; actions by government authorities; the effects of general economic and political conditions; changing foreign exchange rates; and challenges related to the company's ability to introduce, develop and implement new products and enhancements to existing products that respond to customer requirements in a changing, complex, technological market. A complete discussion of the company’s risk factors is presented in the company’s most recent annual reports, filed with the United States Securities and Exchange Commission (“SEC”) and the Canadian Securities Administrators (“CSA”), as well as other periodic reports filed with the SEC and the CSA. The Company does not undertake any obligation to update the forward-looking statements.
All amounts are in U.S. dollars
www.osigeospatial.com
OSI Geospatial 2007 Highlights*
• Revenue of $17.1M ($14.1M in 2006)
• Signed contracts valued at $25M
• Awarded contracts valued $19M (sign by the end of the year)
• Backlog of $70M – fixed $45M – option $35M * 2006 ending backlog of $63M
• Established new Business Sector: $3.3 M to date
*As of August 31, 2007
www.osigeospatial.com
VisionTo be a leading provider of geospatial products and
services that enable shared real-time situational awareness for military, security and safety markets.
“Our products enable our customers to integrate and visualize live data with any combination of imagery,
maps and charts.”
www.osigeospatial.com
Our Markets
MILITARY: Land, Sea, & AirMarket Leader: Surface & Subsurface Navigation
Command, Control, Communications & Intelligence
Real Time Situational Awareness
Virtual Training: Land and Air
www.osigeospatial.com
Our Markets
SECURITY & SAFETYCritical Infrastructure Protection
Port Security
Incidence Response Management
Real Time Collaboration
www.osigeospatial.com
Naval Surface and Subsurface Navigation • Leader in emerging naval surface and subsurface navigation market
(WECDIS)– Fast, accurate displays of geospatial data for mission-critical operations– Systems improve efficiency, support mission completion and help prevent
collisions and loss
• ~ 20% of market has purchased– ~ 50% of those have chosen OSI Geospatial: Eight navies
• Initial deployment requires significant infrastructure and capital investment
– Creates competitive barriers to entry – Secures 15-20% annual repeat business based on initial procurement
• Leveraging our market and technology leadership position to enter adjacent markets
• Adjacent markets are substantially larger than the WECDIS market
• Our addressable markets have grown significantly over the last 18 months
www.osigeospatial.com
Land & AirOSI has entered this market through our U.S. basedacquisition CHI Systems that was closed in Dec. 2005
Primary business focus on engineering consulting services for advancedresearch and development U.S. SSA board established to meet classified contract requirements andboard of directors in place to support development of U.S. business
Land• Command & Control technology has been under development for the U.S. Army for many
years
• Small unit situational awareness technology is now moving from R&D to operations and could lead to market leadership position
Air• Training simulation and cognitive agent technology has been under development for the
U.S. Air Force for many years
• Pilot communications training technology is now moving from R&D to operations and could lead to market leadership position
www.osigeospatial.com
Mapping Market
Providing analysis, production and distribution of digital mapping data for
government and military applications
County & City Government • Progressing well with <$500k market (25 customers)• Plan to develop >$500k market in 2007
Federal Government• Starting to develop this market and experiencing some success with USFS and
USDA• Plan to develop this high margin market aggressively in 2007
Transition to Priority Markets • Leverage systems business units to access international military and security
mapping market
www.osigeospatial.com
Security & Safety MarketUS: Homeland Security; Canada: Public Safety; UK: Home Office
AUS: Home Office – Critical Infrastructure Protection
Integrated Vulnerability Assessments (IVA)
Port Security SA Design technology solutions to address Port SA requirements
Leverage IVA and military capabilities to access market quickly
Port Security: Business Continuity Chemical and Hazmats
Transportation
Energy
www.osigeospatial.com
Our Customers
Marine Land & Air
Air Force Research Laboratory Armaments Research Development & Engineering Center ARDEC Defense Advanced Research Projects Agency DARPA NAVSEA Warfare Centers U.S. Army Battle Labs U.S. Marine Corps U.S. Navy Space and Naval Warfare Center
Homeland Security
US Department of Homeland Security
Sabine Neches, Texas Port Authority
Australia
Canada
Denmark
New Zealand
Norway
Portugal
United Kingdom
United States
www.osigeospatial.com
Our Customers
MappingUnited States Coast Guard
Canadian Hydrographic Services
United Kingdom Hydrographic Office
U.S. National Oceanic and Atmospheric
Administration
U.S. Forest Services
U.S. Department of Agriculture
All Levels of Government
www.osigeospatial.com
Our Growth Strategy• Building on four fronts:
1. Diversifying technology
• Leverage market and technology leadership
Position into adjacent markets
2. Partnering with the best
• Use technology dominance to gain entry
into major programs
• Control Intellectual Property
3. Building on customer relationships
• Leverage strong existing customer base
4. Completing acquisitions
• Gain access to key markets: NATO & Allies
• Build critical mass
• Expand product and market focus
www.osigeospatial.com
Our Financial Profile
$3.8 $5.1
$8.8 $8.1$10.4 $11.1
$24.1
$(2.7) $0.7$0.2$1.0 $0.3$0.3$0.2
$(5.0)
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
2000 2001 2002 2003 2004 2005 2006
U.S
. Do
llars
(m
illio
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)
Revenue Profit
2007 • Revenue Forecast $26M• Ending Backlog Forecast $80M
www.osigeospatial.com
Our Management Team
Kenneth Kirkpatrick
President and Chief Executive Officer
17+ years aerospace and defense market
experience; with OSI Geospatial for more
than five years, previously as COO
John Sentjens
Chief Financial Officer
25+ years of financial, consulting and operational
experience, primarily in the high-tech and
defense sectors; with OSI Geospatial for
more than four years
Wayne HoyleVice President and GM, International Operations 15+ in aerospace and defense market experience; with OSI Geospatial for more than twelve years
Wayne ZacharyVice President and GM, U.S. Operations 25+ years in aerospace and defense market experience; with OSI Geospatial for one year
Gary ManzerVice President and GM, Mapping Operations 25+ years in government mapping and services experience; with OSI Geospatial for more than five years
www.osigeospatial.com
2007 Key Objectives
• Expect revenue between $28M to $32M• Current forecast is $26M• Two key contracts shifted to early 2008
• Secure significant U.S. Department of Defense and U.K. Ministry of Defence prime contracts
• Several projects under development and expect to show progress late ’07 or early ‘08
• Establish OSI as a creditable supplier in the Homeland Defense / National Security market
• Established new business unit based in Norfolk Virginia and secured $3.3M of US DHS business in first 6 months of operations
Positioned for Aggressive Growth in 2008
www.osigeospatial.com
Thank you
TSX: OSI
OTCBB: OSIIF
www.osigeospatial.com