1. GPS or GP$? A Research Presentation by Jonathan Keller A Research Presentation by Jonathan Keller

2. Commercial History  Firsts in GPS History  1985-European receiver (Thales)  1989-US handheld receiver (Thales)  1990 GPS Company goes public (Trimble)  1993 GPS 24-satellite constellation complete, reliable aviation products available (Garmin)  1995 GPS Car navigation  1998 GPS/Cell Phone combination (Garmin)  Firsts in GPS History  1985-European receiver (Thales)  1989-US handheld receiver (Thales)  1990 GPS Company goes public (Trimble)  1993 GPS 24-satellite constellation complete, reliable aviation products available (Garmin)  1995 GPS Car navigation  1998 GPS/Cell Phone combination (Garmin)

3. The Industry  Product sectors: ship, plane, car, and pedestrian navigation, cell phones, surveying equipment, weapons, shipment tracking, etc.  Main Companies US market: Garmin, Thales (Magellan products), Trimble Navigation, TomTom  Weak Oligopoly-many different specializations  Rapidly Expanding-horizontally more than vertically  Industry Size has quadrupled since 2005  Product sectors: ship, plane, car, and pedestrian navigation, cell phones, surveying equipment, weapons, shipment tracking, etc.  Main Companies US market: Garmin, Thales (Magellan products), Trimble Navigation, TomTom  Weak Oligopoly-many different specializations  Rapidly Expanding-horizontally more than vertically  Industry Size has quadrupled since 2005

4. Garmin International  Owned by Garmin Ltd  Pedestrian GPS main player  Founded in 1991, started in Aviation products  Quickly moved to handheld GPS  Privately owned by current CEO Dr. Min Kao and Gary Burrell until 2001  2003 went partially public on very stable financial standing  Very fast growing company  Owned by Garmin Ltd  Pedestrian GPS main player  Founded in 1991, started in Aviation products  Quickly moved to handheld GPS  Privately owned by current CEO Dr. Min Kao and Gary Burrell until 2001  2003 went partially public on very stable financial standing  Very fast growing company

5. Garmin Financial Information  Garmin outpaced growth projected for it by Merrill Lynch (see chart next slide)  Revenues over $1B last year and growing between 30-40% annually  Volatile stock history (see chart)  Garmin (market cap $9.4B) is now larger than the entire industry was when it went public  Garmin outpaced growth projected for it by Merrill Lynch (see chart next slide)  Revenues over $1B last year and growing between 30-40% annually  Volatile stock history (see chart)  Garmin (market cap $9.4B) is now larger than the entire industry was when it went public

6. Expected Gross values from Merrill Lynch 2001

7. Stock History

8. Garmin: A Success Story  Innovative (when stock hit low in 2004 released 44 new products in 1 quarter, 16 was the previous high for a year)  Robust R&D  Affordable Consumer Products  Rapid Expansion  80% Market Share in Handheld GPS  Innovative (when stock hit low in 2004 released 44 new products in 1 quarter, 16 was the previous high for a year)  Robust R&D  Affordable Consumer Products  Rapid Expansion  80% Market Share in Handheld GPS

9. Future of Commercial GPS  Refining of current technology:  Cell Phones (2001 FCC law), PDA’s cameras  Touch-Screen, removable car systems  Family Tracking  Introduction of New Ideas  Refining of current technology:  Cell Phones (2001 FCC law), PDA’s cameras  Touch-Screen, removable car systems  Family Tracking  Introduction of New Ideas