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OSI Geospatial Inc. Ken Kirkpatrick President & CEO TSX: OSI OTCBB: OSIIF www.osigeospatial.com.

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Presentation on theme: "OSI Geospatial Inc. Ken Kirkpatrick President & CEO TSX: OSI OTCBB: OSIIF www.osigeospatial.com."— Presentation transcript:

1 OSI Geospatial Inc. Ken Kirkpatrick President & CEO TSX: OSI OTCBB: OSIIF www.osigeospatial.com

2 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 companys risk factors is presented in the companys 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

3 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

4 www.osigeospatial.com Vision To 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.

5 www.osigeospatial.com Our Markets MILITARY: Land, Sea, & Air Market Leader: Surface & Subsurface Navigation Command, Control, Communications & Intelligence Real Time Situational Awareness Virtual Training: Land and Air

6 www.osigeospatial.com Our Markets SECURITY & SAFETY Critical Infrastructure Protection Port Security Incidence Response Management Real Time Collaboration

7 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

8 www.osigeospatial.com Land & Air OSI has entered this market through our U.S. based acquisition CHI Systems that was closed in Dec. 2005 Primary business focus on engineering consulting services for advanced research and development U.S. SSA board established to meet classified contract requirements and board 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

9 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

10 www.osigeospatial.com Security & Safety Market US: 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

11 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

12 www.osigeospatial.com Our Customers Mapping United 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

13 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

14 www.osigeospatial.com Our Financial Profile 2007 Revenue Forecast $26M Ending Backlog Forecast $80M

15 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 Hoyle Vice President and GM, International Operations 15+ in aerospace and defense market experience; with OSI Geospatial for more than twelve years Wayne Zachary Vice President and GM, U.S. Operations 25+ years in aerospace and defense market experience; with OSI Geospatial for one year Gary Manzer Vice President and GM, Mapping Operations 25+ years in government mapping and services experience; with OSI Geospatial for more than five years

16 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

17 www.osigeospatial.com Thank you TSX: OSI OTCBB: OSIIF www.osigeospatial.com


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