April 10, 2012Dear DigitalGlobe Shareowner,2011 was an eventful year for DigitalGlobe. We made a meaningful difference for our customers, our nation andthe world. We also made good progress executing our strategy and profitably growing and diversifying ourbusiness. Despite our many operational successes, we were disappointed that the U.S. government’s budgetchallenges and speculation with regard to funding for our Enhanced View contract with the National Geospatial-Intelligence Agency (NGA) negatively impacted our share price. Looking forward, we believe we have the rightstrategy and the best satellite constellation in our industry, and with continued execution we expect to delivercompelling returns to shareowners.Throughout the year, our images and analysis were at the forefront of world events – enabling high-impactdecision making, consensus building, and action. Our work related to the Arab Spring has been perhaps the mostvisible. We put a spotlight on the mass protests in Egypt, the horrific shelling of Homs, Syria and atrocities inSudan and South Sudan; and we are helping to penetrate what The President has described as “an electroniccurtain” around Iran and other areas of global concern.Our work continues to play an important role in saving lives. When Joplin, Missouri was nearly leveled by thesingle deadliest tornado to hit the United States since the 1950s, we went into action. Our satellites captured theensuing devastation. As a result, first responders were equipped with the most accurate and up-to-date imageryavailable to help coordinate the search for survivors. We’ve continued to support the on-going reconstruction andrelief efforts in Japan. We are saving lives and aiding our men and women in uniform and coalition partners inAfghanistan. What we do
.Strategically and competitively, we are in a strong position to develop the growing global market for geospatialinformation and analysis. The size and quality of our multi-spectral archive is unmatched, as is our ability toquickly refresh and revisit key points of interest at high resolution around the world. This past year, we
the size of our ImageLibrary to more than 2 billion square kilometers; and we continue to grow it at a rate of approximately 2.5 million square kilometers per day. This capability is critical to mapping and change detection.No other provider of high-resolution imagery comes close. Our operational performance has remainedunequalled against the requirements of our largest customers, including: the NGA, who is focused on helpingkeep our nation safe; international governments, who rely on us for security, mapping and resource management;and commercial customers, serving the growing demand for web-delivered location-based services.Financially, we significantly improved our performance over the course of the year. Our full-year revenue forfiscal 2011 was $339 million, up 5% compared with 2010, and our adjusted EBITDA
grew by 26% to$227 million. We exited the year with our strongest fourth quarter ever with revenue up 17%. Revenue in ourcommercial segment, where our superior constellation and ImageLibrary gives us a strong competitive edge, wasup 11% for the year. This, along with growth in our international defense and intelligence business, increaseddiversification, with nearly 40% of 2011 revenue coming from outside the U.S. Government, up from 36% in2010. Our forward 12-month backlog grew by 19% to $307 million as we exited 2011, increasing our confidencein the year ahead.Throughout the year, operating cash generation remained strong, allowing us to invest more than $175 million inour next satellite while maintaining a strong balance sheet. In 2011 we successfully refinanced our debt, upsizingour $355 million senior secured notes into a $500 million term loan but at a materially lower interest rate,providing us with financial flexibility to execute our growth strategy at modest leverage levels.Over the course of the year, we made good progress against four strategic focus areas that I established with ourleadership team when I became CEO in April 2011. First, with regard to
, we met orexceeded the NGA’s performance requirements and have delivered superior value relative to our competition, forboth our customer and the taxpayer. The fact that we alone met all of our development milestones andperformance requirements during this period and delivered more imagery for the taxpayer dollar than ourcompetition is indicative of this success.