The answers provided in Drawing on an image with TikZ can be used here; the only thing that makes this not an exact duplicate is how to add the annotations; this can be done using pins; a little example:
\documentclass{article}
\usepackage{tikz}
\usepackage{graphicx}
\begin{document}
\begin{tikzpicture}[
every pin/.style={
fill=orange!40,
circle,
minimum size=18pt,
font=\footnotesize},
every pin edge/.style={
<-,
>=latex,
thick,
orange!40,
shorten <=1pt,
}
]
\node[anchor=south west,inner sep=0]
(image) at (0,0)
{\includegraphics[width=0.7\textwidth]{example-image-a}};
\begin{scope}[x={(image.south east)},y={(image.north west)}]
\node[pin={[pin distance=1.2cm]60:1}] at (0.6,0.42) {};
\node[pin={90:2}] at (0.5,0.72) {};
\node[pin={[pin distance=2cm]160:3}] at (0.5,0.43) {};
% The coordinate grid
\draw[help lines,xstep=.1,ystep=.1] (0,0) grid (1,1);
\foreach \x in {0,1,...,9} { \node [anchor=north] at (\x/10,0) {0.\x}; }
\foreach \y in {0,1,...,9} { \node [anchor=east] at (0,\y/10) {0.\y}; }
\end{scope}
\end{tikzpicture}
\end{document}

And once the auxiliary grid is commented out:
