march 2021 investor presentation · 2021. 3. 9. · geospatial insights mission ready geospatial...

March 2021 Investor Presentation

© 2021 Maxar Technologies 2

This presentation and associated earnings release, conference call and webcast, which includes a business update, discussion of the financial results as of December 31, 2020, financial outlook and question and answer session (collectively, the “Earnings Information”), contain certain “forward-looking statements” or “forward-looking information” under applicable securities laws. Forward-looking terms such as “may,” “will,” “could,” “should,” “would,” “plan,” “potential,” “intend,” “anticipate,” “project,” “target,” “believe,” “plan,” “outlook,” “estimate,” “guidance” or “expect” and other words, terms and phrases of similar nature are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

Forward-looking statements are based on certain key expectations and assumptions made by the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Any such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results and expectations to differ materially from the anticipated results or expectations expressed in the Earnings Information. The Company cautions readers that should certain risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected.

The risks that could cause actual results to differ materially from current expectations include, but are not limited to those Risk Factors set forth in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available online under the Company’s EDGAR profile at www.sec.gov or on the Company’s website at www.maxar.com, as well as the Company’s continuous disclosure materials filed from time to time with Canadian securities regulatory authorities, which are available online under the Company’s SEDAR profile at www.sedar.com or on the Company’s website at www.maxar.com. The risk factors detailed in the foregoing are not intended to be exhaustive and there may be other key risks that are not identified that are not presently known to the Company or that the Company currently deems immaterial. These risks and uncertainties are amplified by the global COVID-19 pandemic, which has caused and will continue to cause significant challenges, instability and uncertainty.

The forward-looking statements contained in the Earnings Information are expressly qualified in their entirety by the foregoing cautionary statements. All such forward-looking statements are based upon data available as of the date of the Earnings Information or other specified date and speak only as of such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements herein as a result of new information, future events or otherwise, other than as may be required under applicable securities law.

Caution concerning forward-looking statements


Driving top-line growth Expanding government and commercial businesses; aligned well with National Defense Strategy

Unique capabilities and franchises across Earth Intelligence and Space Infrastructure

Flexible and agile commercial approach to move fast in addressing customer requirements

Levers to expand margins and cash flow Re-engineering and variablizing cost structure

Improving mix and productization of services

Moving toward a lower capital-intensive model that can drive ROIC higher Smaller capital footprint across manufacturing and satellite operations

Lower cost WorldView Legion constellation nearing launch

Rapid Access, SecureWatch, G-EGD, etc.

Committed to maintaining financial flexibility in order to address growth opportunities Expected to have minimal growth/expansionary CapEx post WorldView Legion build

Focus on reducing leverage over time

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Key Takeaways

© 2021 Maxar Technologies 44© 2021 Maxar Technologies 4© 2021 Maxar Technologies 4

Maxar is a world leading space technology and intelligence company.We unlock the promise of space to help customers solve problems on Earth and beyond.


Maxar TodayGlobal Footprint and Capabilities4,300 employees across 20 locations globally,

serving customers in over 70 countries worldwide

Overview

$1.7B 2020A Revenue

$422M 2020A Adj. EBITDA

Leader in Earth Intelligence and Space Infrastructure

Multifaceted capabilities across geospatial data and analytics, satellites, space robotics and space infrastructure

Long-standing relationships with government and commercial customers globally

Strong alignment with U.S. government, international defense, civil government and commercial customers

International LocationsTokyo, Japan

Singapore, Singapore

London, U.K.

HQ: Westminster,Colorado

Linkoping, Sweden


Satellites, Space Programs and Robotics

1300-class spacecraft bus

Modular satellite architectures

Power & Propulsion Element

Imagery EnhancedView

Direct/Rapid Access

3D and AR Clouds

Basemaps

Platform and Analytics SecureWatch

Global-EGD

One World Terrain

Services SBIR Phase III

NOME

Project Kelly

DORE

Space Infrastructure Earth Intelligence

Highest quality geospatial data & products

Analytics platforms

Geospatial services, analytics and solutions

COMPONENTS SYSTEMSSUBSYSTEMS DATA / PRODUCTS SERVICES / SOLUTIONS

Satellite hardware

Space robotics

Satellite integration

System integration

MAXAR FRANCHISE PRODUCTS / CONTRACTS

Integrated Solutions Across the Customer Value Chain

Psyche (planetary exploration)

OSAM-1 (on-orbit refueling and

assembly)

Mars Robotic Arms


Communications and Earth observation satellites

Space exploration mission spacecraft

On-orbit satellite servicing vehicles

Robotics for ongoing space operations and planetary exploration

Multi-year contracts and support services

Electro-optical, high-resolution satellite imagery

Sensor and ground system optimization for near real-time geospatial insights

Mission ready geospatial intelligence (GEOINT)

Largely recurring, multi-year contracts

Big data platform and tools

Machine learning/AI and data analytics at global scale

Multisource data enrichment and analysis

Geodata layers and information products

Largely recurring, multi-year contracts

Space Infrastructure 40%2020A Rev.

What We Do:Data Generation, Data Analytics / Platforms and Space Infrastructure

Data Analytics / PlatformsEarth Intelligence 60%

2020A Rev.Data Generation


Segment Scale and Profitability(1)

(Revenue / Adj. EBITDA(2) Margin)Customer Mix(1)

Earth Intelligence $1,081M / 47.5%

Space Infrastructure $721M / (0.4)%(3)

Notes: (1) Profitability and customer mix shown as of FY2020. (2) This is a non-GAAP financial measure. Refer to section “Non-GAAP Financial Measures” in the Appendix to these slides.(3) 2020 revenues impacted by $27M of estimated COVID-19 related EAC growth during the period. These costs are considered incremental and separable from normal operations.

U.S. Federal Gov’t and Agencies

Commercial and Other

We Serve the Most Discriminating Government and Commercial Customers in More Than 70 Countries

72%

28%

Government

CommercialU.S. Federal Gov’t and Agencies

Commercial and Other

60%

40%

28%

72%

http://www.intelsat.com/


EARTH INTELLIGENCE SPACE INFRASTRUCTURE

AddressableSegments

U.S. Government –International Government – Commercial Commercial – National – Civil

Maxar’sGrowth Strategy

Expand relationship across the U.S. government

Grow installed base and penetration of international government customers

Grow with and expand the installed base of commercial customers across product breadth, including services

Leverage 3D data and 3D capabilities

Grow U.S. national programs Deepen penetration of U.S. government

civil exposure Provide flexible solutions to commercial

customers Leverage communication expertise and volume

production heritage to capture demand in GEO and LEO

Investments Madeto Drive Growth

WorldView Legion Vricon acquisition Data platforms + AI/ML

Space robotics Solar electric propulsion Modular architecture / Smaller spacecraft

buses

Summary of Our Growth StrategyFocused on Growing Segments Where We Can Be #1 or #2


U.S. Government International Governments Commercial

Maxar is Well-Positioned to Support the Customers We Serve

Largest buyer of C4ISR and space

National Defense Strategy outlines importance of space, AI and ML

Aggressive investment by other nations is eroding U.S. competitive advantage across IC and DoD

NASA is investing in Earth science and space exploration

Buyers are embracing commercial approaches to save time and money

Foreign partner nations are facing similar mission challenges as the U.S. government

Lack the IP and human capital to rapidly modernize space and ISR architectures

U.S. policies for space encourage partnerships with allied nations

Maxar’s playbook for building strong imagery and ground businesses can be extended into value-added services

Ubiquitous mobility and IoT are driving demand for global mapping and communications solutions

Technology and autonomous navigation companies have global mapping aspirations that cannot be met by traditional methods (unmanned aerial vehicle and street-level imagery)

There is a race to provide high-speed, low-latency broadband connectivity across the globe

Growing popularity in gaming driving potential use cases


Space & Cyber C4ISR Missile Defense Joint Lethality Forward Force Resilience

AutonomousSystems

Resilient space assets and operations

Gain and exploitinformation

Layered missile defense

Ability to strike

Ability to operate in all domains Autonomy, AI/ML

Satellite design and manufacturing

Space robotics Space infrastructure Solar electric

propulsion Cyber-secure systems Modular architecture

High-resolution Imagery

AI/ML providing change detection

Space-based sensors Direct downlink Analytics / cloud-

based products

AI/ML providingchange detection for early warning

Affordable and secure satellite buses

Sensor platforms

High resolution elevation models

Real-time Geo-positioning

3D Imagery Shareable GEOINT Analytics / cloud-based

products

High resolution Imagery

Direct downlink Crosslinks / interfaces Living maps 3D/P3DR/Point

Cloud capabilities AR/VR for simulation

and training

High resolution imagery Co-registered mapping

data Space robotics AI/ML providing change

detection 3D/P3DR/Point

Cloud capabilities AR/VR for simulation

and training

Our Capabilities Solidly Align With the U.S. National Defense Strategy

Maxar Capabilities


Overview Capabilities Real-World Results

Earth Intelligence

Persistent global security threats

Rising budgets

Imagery and insights in great demand

Space is a focus of investment

Nascent but growing services opportunities

Geospatial data and products

Machine learning and analytics

Defense services and solutions

Ground systems

Growing International Defense and Intelligence Demand



Earth Intelligence

NASA science efforts focused on better understanding our planet

Other civil agencies focused on emergency preparedness and response, urban planning and regulatory compliance benefit from Maxar's capabilities

Geospatial data and products

Machine learning and analytics

Space Infrastructure

NASA exploration efforts focused on deep space align well with Maxar’s capabilities

Space robotics

Solar electric propulsion

Spacecraft buses

Multifaceted Opportunities With Civil Agencies



EarthIntelligence

Autonomous applications

Wireless networkplanning

Resource and logistics planning

Risk management and Mitigation

High-resolution imagery Mapping Change detection Data analytics and machine

learning Gaming, virtual reality and 3D

applications


Voice and data Communications

Imagery Remote sensing Video distribution Broadband Digital radio services

Satellite design Satellite integration LEO and GEO spacecraft

buses Ground systems Solar electric propulsion

Commercial Demand Driven By Innovation and New Use Cases


EVFO Next WorldView Legion Launches


Transformation3D / Platforms /

Products

2020

Driving growth across the U.S. Government, International U.S. Allied Nations and Large Commercial Tech

$25+ Billion

Five-Year Pipeline Across Earth Intelligenceand Space

Infrastructure

2021Sustained

Growth$1.9B in Bookings

Robust 5-Year Pipeline

Out-years


Revenue and Adj. EBITDA(1) Margins Revenue and Adj. EBITDA(1) Margins Without Effects of EV Deferred(2)

Capital Expenditures Free Cash Flow (“FCF”)(4)

Notes: (1) Adjustments include items such as income from discontinued operations, net of tax, restructuring, transaction and integration related expense, impairment loss, including inventory, satellite insurance recovery, gain (loss) on sale of assets, CEO severance and gain on re-measurement of Vricon equity interest. For a reconciliation to Adj. EBITDA, please see the appendix. (2) Excludes $120M in EV deferred revenue and adjusted EBITDA for 2019 and $80M in deferred revenue and adjusted EBITDA for 2020. (3) Midpoint of financial outlook – 2021. (4) Free cash flow is defined as operating cash flows minus capital expenditures, excluding insurance proceeds.

Financial Overview

Adjusted EBITDA(1) Margin % (Without Effects of EV Deferred (2))

(US$ millions)

Adjusted EBITDA(1) Margin %

$ 1,666 $ 1,723 $ 1,845

25 % 24 % 24 %

2019A 2020A 2021E Guidance

$ 1,546 $ 1,643

$ 1,845

19 % 21 % 24 %


$ 314 $ 308 $ 248


$(56) $(65)

$ 18


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3 3

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Financial Outlook – 2023 Adj. EBITDAEvent Adj. EBITDA(1) impact2020 Adjusted EBITDA $422M

EV Deferred Revenue ~(80M)

2020 Adjusted EBITDA without effects of EV deferred ~$340M

Earth IntelligenceLegion capacity, including WV-4 replacement (~50%)Product and services, in part driven by Legion capabilities (~50%)

+165M

Space InfrastructureMix shift / Run off of underperforming contracts ($43M)Mix shift from intercompany work(2) ($25M)Non-recurring COVID-19 impact ($27M)

+95M

CorporateCorporate expense

(20M)

Total Adjusted EBITDA growth +240M

2023 Target ~$580M

Well positioned and driving toward significant Adjusted EBITDA(1) growth Notes: (1) This is a non-GAAP financial measure. Refer to section “Non-GAAP Financial Measures” in the Appendix to these slides.(2) Reduction of Intersegment eliminations driven by completion of WorldView Legion constellation and those earnings being replaced by third party sales.


Financial Outlook – 2023 FCF

Event FCF(1) impact

2020 FCF ~($65M)

Earth Intelligence earnings growth +165M

Space Infrastructure earnings growth +95M

Return to normal CapEx spend (primarily WorldView Legion) +180M

Interest savings +70M

Timing of working capital/other (120M)

Total FCF growth +390M

2023 Target ~$325M

Clear visibility to long-term cash flow growth

Note: (1) Free cash flow is defined as operating cash flows minus capital expenditures, excluding insurance proceeds.


Strategic Deals to Reduce DebtC$1B MDA divestiture

$291M Palo Alto real estate transaction

Space InfrastructureRe-engineer and diversify

Earth IntelligenceOffset revenue and Adj. EBITDA from

impact of WV4 loss

Execute on growing services backlog

Deploy New Operational ModelPeak WorldView Legion CapEx

Maxar is Positioned For Growth

Reset and Stabilize Growth Inflection Accelerate / Optimize

Successfully Completed(2019 – 2020)

Progressing(2021 – 2022)

Longer-Term(2023 and Beyond)

Top-Line Growth Acceleration Higher Imagery capacity Advanced analytics products U.S. and International services Commercial, Civil, DoD / Classified space

Margin Expansion Mix and execution Product / services adoption OpEx leverage

Lower Capital Intensity Smaller manufacturing & satellite footprint Further penetration of services/product

offering

Optimize Capital Structure

Reduce Debt With Strong Cash FlowSpace Infrastructure Position for growth by addressing

Commercial, Civil and DoD/Classified segments

Earth Intelligence Growth driven by subscriptions/products

Execute backlog + new wins driven by AI/ML

Launch of WorldView LegionCompletion of WorldView Legion CapEx and Start of CapEx Holiday


Appendix In addition to results reported in accordance with U.S. GAAP, we use certain non-GAAP financial measures as supplemental indicators of our financial and operating performance. These non-GAAP financial measures include EBITDA, Adjusted EBITDA, Adjusted EBITDA Without Effects of EV Deferred, and free cash flow.

We define EBITDA as earnings before interest, taxes, depreciation and amortization, and Adjusted EBITDA as EBITDA adjusted for certain items affecting comparability as specified in the calculation. Certain items affecting comparability include restructuring, impairments, satellite insurance recovery, gain on sale of assets, CEO severance and transaction and integration related expense. Transaction and integration related expense includes costs associated with de-leveraging activities, acquisitions and dispositions and the integration of acquisitions. Management believes that exclusion of these items assists in providing a more complete understanding of our underlying results and trends, and management uses these measures along with the corresponding U.S. GAAP financial measures to manage our business, evaluate our performance compared to prior periods and the marketplace, and to establish operational goals. Adjusted EBITDA is a measure being used as a key element of our incentive compensation plan. The Syndicated Credit Facility also uses Adjusted EBITDA in the determination of our debt leverage covenant ratio. The definition of Adjusted EBITDA in the Syndicated Credit Facility includes a more comprehensive set of adjustments.

We define Adjusted EBITDA Without Effects of EV Deferred as Adjusted EBITDA, as defined above, less EnhancedView Deferred Revenue.

We define free cash flow as cash provided by operating activities - continuing operations adjusted for the purchase of property, plant and equipment and development or purchase of software, in addition to the Satellite insurance recovery of $183M.

We believe that these non-GAAP measures, when read in conjunction with our U.S. GAAP results, provide useful information to investors by facilitating the comparability of our ongoing operating results over the periods presented, the ability to identify trends in our underlying business, and the comparison of our operating results against analyst financial models and operating results of other public companies.

EBITDA, Adjusted EBITDA, Adjusted EBITDA Without Effects of EV Deferred and free cash flow are not recognized terms under U.S. GAAP and may not be defined similarly by other companies. EBITDA, Adjusted EBITDA, Adjusted EBITDA Without Effects of EV Deferred and free cash flow should not be considered alternatives to net (loss) income as indications of financial performance or as alternate to cash flows from operations as measures of liquidity. EBITDA, Adjusted EBITDA, Adjusted EBITDA Without Effects of EV Deferred and free cash flow have limitations as an analytical tool and should not be considered in isolation or as a substitute for our results reported under U.S. GAAP.


Appendix

march 2021 investor presentation · 2021. 3. 9. · geospatial insights mission ready geospatial...

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