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© 2021 Maxar Technologies 1© 2021 Maxar Technologies
MaxarMarch 2021 Investor Presentation
© 2021 Maxar Technologies 2
This presentation and webcast, which includes a business update, discussion of the financial results as of December 31, 2020, financial outlook and question and answer session, 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
© 2021 Maxar Technologies 3
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.
© 2021 Maxar Technologies 5
Maxar TodayGlobal Footprint and Capabilities4,300 employees across 20 locations globally,
serving customers in more than 70 countries worldwide(3)
Overview(1)
$2.6B / $5.1B(2) Mkt. Cap / EV
$1.7B 2020 Revenue
$422M 2020 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
Note: (1) Market data as of 05-Mar-2021. (2) Debt for EV purposes is calculated as the sum of the outstanding amounts of the Term Loan B + 2023 Bonds + 2027 Bonds + Revolving Credit Facility Drawn + Finance Leases + Liability balance related to the Space Infrastructure Sales-Leaseback transaction consummated in December 2019. (3) As of 31-Dec-20.
Linköping, Sweden
© 2021 Maxar Technologies 6
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
© 2021 Maxar Technologies 7
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
Artificial Intelligence and Machine Learning (AI/ML) and data analytics at global scale
Multisource data enrichment and analysis
Geodata layers and information products
Largely recurring, multi-year contracts
Space Infrastructure 40%2020 Rev.
What We Do:Data Generation, Data Analytics / Platforms and Space Infrastructure
Data Analytics / PlatformsEarth Intelligence 60%
2020 Rev.Data Generation
© 2021 Maxar Technologies 8
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 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%
© 2021 Maxar Technologies 9
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
© 2021 Maxar Technologies 10
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
© 2021 Maxar Technologies 11
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
© 2021 Maxar Technologies 12
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
© 2021 Maxar Technologies 13
Overview Capabilities Real-World Results
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
© 2021 Maxar Technologies 14
Overview Capabilities Real-World Results
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
Space Infrastructure
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
© 2021 Maxar Technologies 15
EVFO Next WorldView Legion Launches
Space Infrastructure
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
16© 2021 Maxar Technologies
Earth Intelligence
© 2021 Maxar Technologies 1717© 2021 Maxar Technologies 17© 2021 Maxar Technologies 17
EARTH INTELLIGENCEWe collect, process and analyze location data to deliver geospatial intelligence.
125 700+ 1,700+ 3.8M+ 1.4BPetabytes of data in our archive, gathered over 20 years
Software developers on staff
Cleared personnel supporting the U.S. Government
Square kilometers of Earth imagery capacity each day
Square kilometers of Earth imagery capacity each year
Data generation 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 contractsData analytics Big data platform and tools Artificial intelligence/machine learning (AI/ML) and data analytics at scale Multisource data enrichment and analysis Geodata layers and information productsLargely recurring, multi-year contracts
60%of 2020 Revenue
© 2021 Maxar Technologies 18
Our U.S. Government Partnership: The EnhancedView Contract
The U.S. government is Maxar’s largest customer for Earth Intelligence and our relationship has strengthened and expanded over the last decade
The EnhancedView contract was signed in 2010 and is a performance obligation to deliver assured and secure access to our constellation and platforms
In 2018, Maxar signed a multi-year contract extension through August 2023
• Maxar has completed 10 successful annual reviews and is currently executing the 11th annual renewal option
• Additional funding was added for further integration and interoperability between the U.S. government and Maxar’s current and future ground and space architectures
WorldView Legion construction is on track and can deliver industry-leading imagery to meet the future requirements of the U.S. government
Sole SourceThe only company delivering on the EnhancedView Follow On program
20+ YearsNumber of years USG has been a customer
13 YearsLength of EV contract – 2010 to 2023
3.5B Square KilometersProduced and delivered in 2020 (~24x the Earth’s total landmass)
© 2021 Maxar Technologies 18
© 2021 Maxar Technologies 19
On-Demand Access To Geospatial Intelligence
G-EGD400,000 analysts, warfighters and first responders in the U.S. Government rely on Global Enhanced GEOINT Delivery (G-EGD) to make decisions when lives are on the line.
SecureWatch 241 customers and growing as international governments and commercial organizations use SecureWatch subscription service to provide a reliable picture of on-ground conditions.
1,200+ 94 184 19.4BTerabytes downloaded in 2020
U.S. Government portals streaming G-EGD
Organizations using the platform
Square kilometers streamed in 2020
Our platforms provide a one-stop shop for the most current imagery available for defense and intelligence, mapping, monitoring and disaster response.
199 2,600 205MTerabytes downloaded in 2020
Platform users Square kilometers streamed in 2020
19
Note: Data as of 31-Dec-2020.
© 2021 Maxar Technologies 20
BUILT FOR CUSTOMER MISSIONSIn sun-synchronous and mid-inclination orbits, WorldView Legion will image the Earth’s most active areas around the clock and from diverse angles, giving customers the ability to track and monitor change and make faster and more informed decisions.
SERVING OUR BUSINESSWorldView Legion will adapt to changing demand over time, reducing idle time and increasing asset utilization. And the satellites will be more capital efficient than previous Maxar satellites.
The result will be higher quality product, finely tuned to the demands of our customers, produced faster and at a lower cost.
We Will Extend Our Lead with WorldView Legion
© 2021 Maxar Technologies 21
21March 3, 2020Large area collection over I-580 corridor, California
• One satellite (WorldView-3)• One of multiple strips in a single orbital pass• 2,707 square kilometers collected• 30-cm resolution from San Francisco to Tracy, California
Ferry Building, San Francisco Bulk carrier, Oakland
Livermore airport
Highway exchange, Ulmar
Tracy High School, TracySFO airport21© 2021 Maxar Technologies
© 2021 Maxar Technologies 22
More Area Collection, Higher Accuracy and Better Revisit Maximizes Revenue Opportunities Business continuity – drives demand for the most
discerning customer base in the world, who requires high-quality resolution and positional accuracy
Increase capacity in high demand areas – focused on where change is happening:
>50% of population lives on <1% of land 95% of population lives between ±50° latitude
Higher revisit for more use cases
Constellation Capabilities Including WorldView Legion(1)
Unique Points/Day | NIIRS 4 (~1 meter resolution)
0100020003000
Blacksky Planet Skysat Maxar 1 m 70 cm
Note: (1) Data based on internal Maxar targets.
30 cm
© 2021 Maxar Technologies 23
The Digital Globe™ Enables New Products that Place Maxar in a Leadership Position in Growing Segments
The geospatial reference standard of our changing planet.
Maxar has a 20-year head start building the most accurate commercial geospatial foundation that exists.
We are integrating and snapping together multiple sources to create a precise, living digital twin of the planet in all dimensions.
The Digital Globe™
Precision Mapping
Change Detection
Predictive Modeling
Targeting Synthetic Training
Environments
GPS DeniedNavigation
© 2021 Maxar Technologies 24
AI/ML Work Better on High-Quality,Geo-Registered Foundation Producing More Accurate Insights, Faster
Artificial Intelligence can’t pull detail out of lower resolution pixels because the information simply isn’t there—similar to how the facial recognition algorithms on your phone can’t recognize you unless you’re right in front of it.
ML on 60 cm imagery – identified 31 cars
ML on 50 cm imagery – identified 244 cars
ML on 30 cm imagery – identified 1,267 cars
Only Maxar has the high-resolution data to provide the level of detail required for fast, reliable outputs.
© 2021 Maxar Technologies 25
Global Leader in 3D CapabilitiesVricon Acquisition has Expanded Maxar’s 3D Analytics PlatformWorld leader in situational awareness and decision-making for military applications Battlefield visualization Warfare planning Aerial navigation and planning Targeting/weapon guidance Line-of-sight/concealment analysis Equipment movement/mobility planning Enemy surveillance Helicopter landing site evaluation
Network planning for telecommunications RAN planning for coverage and capacity Fixed wireless, line-of-sight analysis Microwave backhaul
Consumer gaming & virtual reality Geospatial and digital twin technologies 3D modelling capabilities
26© 2021 Maxar Technologies
Space Infrastructure
© 2021 Maxar Technologies 2727© 2021 Maxar Technologies 27© 2021 Maxar Technologies 27
SPACE INFRASTRUCTUREWe design, manufacture and operate: Communications and Earth observation satellites Space exploration spacecraft Solar electric propulsion On-orbit satellite servicing vehicles Robotics for ongoing space operations and explorationMulti-year contracts and support services
Our 60-year heritage of innovation and reliability in space is trusted by our customers.
90 99.9971% 285+ 2,750Maxar-built geostationarysatellites currently in service
GEO satellite availability Maxar-built spacecraft launched
Combined years on orbit
40%of 2020 Revenue
Source: Statistics above as of 31-Dec-2020.
© 2021 Maxar Technologies 28
Maxar-Built Satellites Help Shape Today’s World
Meteorological satellitesDigital audio radio satellites Digital multimedia satellites
Direct broadcast satellites Two-way broadband satellitesEarth observation satellites
Capabilities Satellite design Satellite integration Spacecraft hardware, software and
components LEO and GEO spacecraft buses Ground systems Solar electric propulsion Space robotics
Differentiation Price, performance and quality Power and propulsion Flexible, modular spacecraft Mission-proven space robotics
28© 2021 Maxar Technologies
© 2021 Maxar Technologies 2929© 2021 Maxar Technologies 29© 2021 Maxar Technologies
THE MOON, MARS AND BEYOND
Maxar is ahead of the curve in space exploration and continues to help NASA make history.
RETURNING ASTRONAUTS TO THE MOONAs part of the Artemis program, Maxar is building the Power and Propulsion Element (PPE) for the lunar Gateway that will send the first woman to the moon.
POWERING THE SEARCH FOR LIFE ON MARSMaxar built six robotic arms for Mars landers and rovers, including for the recently landed Perseverance rover.
© 2021 Maxar Technologies 30© 2021 Maxar Technologies
POWER AND PROPULSION ELEMENTWe are building the first key component of Gateway, the Power and Propulsion Element. Gateway will serve as an orbiting command module, supporting human missions in space.
Provides power, thrust and critical communications
Developed on Maxar's proven 1300 platform More powerful than existing solar
electric propulsion systems Robotics for ongoing space operations and
exploration
30
© 2021 Maxar Technologies 31
SERVICING A SATELLITE ON ORBIT
Maxar is providing the spacecraft and three robotic arms for NASA’s OSAM-1 mission to refuel and service a low-Earth orbit satellite and demonstrate on-orbit assembly.
MISSION TO PSYCHEEXPLORING A NEW KIND OF ASTEROID
A Maxar-built spacecraft enables NASA’s mission to explore 16 Psyche, an asteroid believed to be made of metal. The mission could offer insight into how the Earth formed.
REFUELING AND SERVICING
32© 2021 Maxar Technologies
Financial Performance and Outlook
© 2021 Maxar Technologies 33
Financial Overview (1/2)
Notes: (1) $1,723M net of $79M in intersegment eliminations. (2) $422M net of $27M in intersegment eliminations and $61M in corporate and other expenses.(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.
FY ’20 REVENUE BY SEGMENT FY ’20 ADJ. EBITDA BY SEGMENTFY ’20 BACKLOG BY SEGMENT
$422(2)
Space Infrastructure $(3)(3)
Earth Intelligence $513
Space Infrastructure $721
Earth Intelligence $1,081
$1,723(1)
(US$ millions)
$1,904
Earth Intelligence$880
Space Infrastructure $1,024
© 2021 Maxar Technologies 34
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: Guidance as issued on 2/24/2021 (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 $80M in deferred revenue and adjusted EBITDA for 2020. (3) Midpoint of financial outlook – 2021. (4) Free cash flow is defined as operating cash flows minus capital expenditures, excluding insurance proceeds.
Financial Overview (2/2)
Adjusted EBITDA(1) Margin % (Without Effects of EV Deferred(2))
(US$ 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 %
2019A 2020A 2021E Guidance
$ 314 $ 308 $ 248
2019A 2020A 2021E Guidance
$(56) $(65)
$ 18
2019A 2020A 2021E Guidance
(3)
(3) (3)
(3)
© 2021 Maxar Technologies 35
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: Guidance as issued on 2/24/2021 (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.
© 2021 Maxar Technologies 36
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 ~$325M
Clear visibility to long-term cash flow growth
Note: Guidance as issued on 2/24/2021 (1) Free cash flow is defined as operating cash flows minus capital expenditures, excluding insurance proceeds.
© 2021 Maxar Technologies 37
Uses ($mm)
Principal Repayment (2023 Notes) $ 350
Equity Clawback Costs (2023 Notes) 34
Estimated Transaction Fees 25
Total $ 409
31-Dec-20 As Adjusted
($ in millions) Amount x Mult Adj. Amount x Mult Coupon Maturity
Cash & Cash Equivalents $ 27 $(9) $ 18
Revolver due 2023 ($500mm) - - L(0) + 350 Dec-23
Term Loan B 1,444 - 1,444 L(0) + 275 Oct-24
Senior Secured Notes due 2023 850 (350) 500 9.750% Dec-23
Senior Secured Notes due 2027 150 150 7.540% Dec-27
Total Secured Debt $ 2,444 5.8 x $ 2,094 5.0 x
Net Secured Debt 2,417 5.7 2,076 4.9
Other Debt Items (Incl. Finance Leases) $ 95 $ 95
Total Debt $ 2,539 6.0 x $ 2,189 5.2 x
Net Debt 2,512 6.0 2,171 5.1
LTM Adjusted EBITDA (31-Dec-20) $ 422 $ 422
Sources ($mm)
Common Equity Issuance $ 400
Cash From Balance Sheet 9
Total $ 409
Maxar CapitalizationAfter Recent $400 Million Common Equity Offering
Capitalization
Transaction Sources
Transaction Uses
Proceeds from offering used to repay $350M of Senior Secured Notes due 2023
Reduces LTM Net Leverage to 5.1x (Adj. EBITDA)
(US$ millions)
© 2021 Maxar Technologies 38
Evolution of Liquidity and DebtNet Debt(1) ($M)
Liquidity: As Adjusted Cash on Hand: $18M(2)
Revolver: $469M available(3)
As Adjusted Total: $487M
Net debt decreased by offering
Net debt / Adj. EBITDA reduced from 6.0x (at 31-Dec-2020) to 5.1x following the $400M offering
Maturity schedule: Dec 2023: Revolving Credit Facility Dec 2023: $500M of Remaining 9.750% Notes Oct 2024: $1.4B Term Loan B Dec 2027: $150M Notes
$3,114 $2,957 $3,040
$2,485 $2,512
$2,171$2,500(4)
3Q'19 4Q'19 1Q'20 2Q'20 3Q'20 4Q'20 4Q'20(As Adj.)
Notes: (1) Net Debt is calculated on the last day of the applicable period as the sum of the outstanding amounts of the Term Loan B + 2023 Bonds + 2027 Bonds + Revolving Credit Facility Drawn + Finance Leases + Liability balance related to the Space Infrastructure Sales-Leaseback transaction consummated in December 2019. The total debt is then netted against outstanding cash.(2) As adjusted cash on hand is net of existing cash used to repay outstanding Senior Secured Notes due 2023(3) Revolver availability equals the total capacity ($500M) – borrowings – outstanding and undrawn letters of credit.(4) In June 2020, Maxar entered into $150M 2027 Notes for the Vricon acquisition, which was not completed until July 1, 2020. As a result, cash on hand included $140M for the Vricon acquisition. The yellow box removes the impact of that additional cash for comparative purposes.
Adjusted for Proceeds From Recent Equity
Offering
© 2021 Maxar Technologies 39
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 Flow and Recent Equity RaiseSpace 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
40© 2021 Maxar Technologies
Appendix: Supplemental Information
© 2021 Maxar Technologies 41
Non-GAAP Financial MeasuresIn 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 (loss) 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 Enhanced View Deferred Revenue.
We define Free Cash Flow as cash provided by operating activities from 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.
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Other Noteworthy Items‒ Depreciation and Amortization: ~$270M‒ Interest Expense: ~$160M‒ Tax Rate:~0%, before discrete items‒ Share Count: ~62M‒ Bank-defined leverage ratio: < 6x
Amortization on Finite-lived Intangibles
Major Guidance Assumptions
In $ millions
Amortization of acquired intangible assets is based on the period over which the Company expects to receive benefit from those assets. Assets are generally amortized on a straight-line basis.
• No reduction in funding of major programs
• Continuation of current social distancing restrictions related to COVID-19 through spring 2021
• Financial outlook reflects the Company’s judgment based on the information available to the Company at the time of this release, however, the ultimate impact of COVID-19 on the Company’s financial outlook for 2021 remains uncertain
• Guidance does not include any potential impacts related to damage to SiriusXM’s SXM-7 satellite. Refer to subsequent event disclosure in our Form 10-K.
• Refer to the additional discussion on COVID-19 and other potential risks in our Form 10-K
Notes: Guidance as issued on 2/24/2021 (1) This is a non-GAAP financial measure. Refer to section “Non-GAAP Financial Measures” in the Appendix to these slides.(2) We are unable to provide guidance for net income due to uncertainties relating to the size of adjustments that may be necessary as well as factors that could affect our interest, taxes, depreciation and amortization.
2021 2022 2023 2024 2025 After
$190 $176 $80 $65 $54 $330
Revenue 2021 Outlook
Earth IntelligenceSpace InfrastructureIntersegment eliminations
$1,050M - $1,095M$800M - $835M
(~$45M)
Total Revenue $1,805M – 1,885M
Adjusted EBITDA(1)
Earth IntelligenceSpace InfrastructureIntersegment eliminationsCorporate and other expenses
$440M - $470M$75M - $95M
(~$16M)(~$80M)
Total Adjusted EBITDA(2) $420M to $470M
Operating Cash Flow $240M to $290M
CapEx
$205M to $230M(excluding roughly $30M of capitalized interest)
$235M to $260M(including roughly $30M of capitalized interest)
Financial Outlook – 2021
© 2021 Maxar Technologies 43
Adjusted EBITDA Reconciliation
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© 2021 Maxar Technologies
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