September 2019 Investor Presentation
© 2019 Maxar Technologies 2
This presentation and question and answer session associated with it 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” 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 this 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 set forth in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K which is 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 listed above that are not presently known to the Company or that the Company currently deems immaterial.
The forward-looking statements contained in this 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 this 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
© 2019 Maxar Technologies 3
Driving toward top-line growth− Growing government and commercial markets; 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 profit margins over time− Re-engineering and variablizing cost structure− 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− Rapid Access, SecureWatch, EarthWatch, Global-EGD, etc.
Committed to maintaining financial flexibility in order to address growth opportunities− CapEx holiday post Legion build− Target leverage of < 4.0x net debt-to-Adj. EBITDA over time
Key Take-a-ways
© 2019 Maxar Technologies 4
Leader in Earth Intelligence and Space Infrastructure providing geospatial data and analytics, satellites, space robotics, and space infrastructure to commercial and government customers globally
Strong alignment with:
− US National Defense Strategy
− Missions of International Defense and Intelligence customers
− Evolving requirements of civil government customers
− Pursuit of innovation with commercial customers
Overview of Maxar Today
Imagery$845M
Services$266M
Space Systems$1,129M
FY18 Revenue
$2.2B
© 2019 Maxar Technologies 5
Large and growing addressable markets
USGovernment
Persistent global security threats
Rising defense budgets
Increasingly seeking to use viable commercial alternatives
Imagery and insights in great demand
Space is a focus of investment
International Governments
Persistent global security threats
Rising budgets
Imagery and insights in great demand
Space is a focus of investment
Nascent but growing services opportunities
Commercial
Strong imagery demand driven by new use cases enabled by Artificial Intelligence (AI) and Machine Learning (ML)
Space-based remote-sensing pipeline experiencing growth
LEO communications programs underway (OneWeb) and in the pipeline (Telesat)
© 2019 Maxar Technologies 6
Hundreds of diverse and complex customers across the globe
Government Customers Commercial Customers
© 2019 Maxar Technologies 7
Strategy focused on Earth Intelligence & Space Infrastructure
Space Infrastructure Earth Intelligence
Components
Customer Value Chain
SystemsSubsystems Data/Products Services/Solutions
Solar ElectricPropulsion
SpaceRobotics
Satellite and Systems
integration
Satellite Hardware
Groundsystems
Geospatial data & products
PlatformsDefense services &
solutions
Maxar Franchise Products / Major Contracts
Imagery
- EV Follow-On- Direct Access- Rapid Access
GEOINT Platforms
- Earth & Secure Watch- GBDX- Global-EGD
Services
- SBIR Phase III- Multiple Classified
Satellites
- 1300 Class- Legion Class- PPE
Robotics
- Restore-L- Canadarm- Dragon Fly
1
2
3
GEOINT Products
- Basemap- Advanced Elevation- Building Footprints
Antennas
- LEO
- GEO
© 2019 Maxar Technologies 8
Solid alignment with US National Defense Strategy
Space & Cyber C4ISRMissileDefense Joint Lethality
Forward Force Resilience
AutonomousSystems
Resilient space assets and ops.
Gain and exploitinformation
Layered missile defense
Ability to strike Ability to operate in all domains
Autonomy, AI, and Machine Learning
• Satellite manufacturing
• Space Robotics• Space Infrastructure• Solar Electric - Chem
Propulsion
• Imagery• AI and ML• Space-based sensors• Direct Downlink• Products
• AI and ML for early warning
• Satellite Buses
• High resolution elevation
• Real-time Geo-positioning
• 3D Imagery
• Direct Downlink• Crosslinks / interfaces• Living Maps• Message generation
• Imagery• Co-Registered
Mapping Data• Space robotics• Change / Object
Detection
• Satellite design and manufacturing
• Space Robotics• Space Infrastructure• Solar Electric -
Chemical Propulsion• Cyber-secure
systems
• High resolution Imagery
• AI and ML providing change detection
• Space-based sensors• Direct Downlink• Analytics / cloud-
based products
• AI and ML providing change detection for early warning
• Affordable and secure satellitebuses
• 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
• High resolution Imagery
• Co-Registered Mapping Data
• Space robotics• AI / ML providing
change detection
© 2019 Maxar Technologies 9Failed Safir Rocket Launch | Imam Khomeini Space Launch Complex, Iran | Image Tweeted By POTUS on August 30, 2019
POTUS Tweeted Image
© 2019 Maxar Technologies 1010
Failed Safir Rocket Launch | Imam Khomeini Space Launch Complex, Iran | August 31, 2019 | Maxar WorldView-3 Satellite Image
WorldView-3 Image31-cm resolutionCollected at 3.6° off-nadir
Maxar Copyright 2019 | All Rights Reserved
© 2019 Maxar Technologies 1111
Failed Safir Rocket Launch | Imam Khomeini Space Launch Complex, Iran | August 29, 2019 | Maxar GeoEye-1 Satellite Image
GeoEye-1 Image41-cm resolutionCollected at 42° off-nadir
Maxar Copyright 2019 | All Rights Reserved
© 2019 Maxar Technologies 1212
Failed Safir Rocket Launch | Imam Khomeini Space Launch Complex, Iran | August 29, 2019 | Maxar WorldView-2 Satellite Image
WorldView-2 Image46-cm resolutionCollected at 33° off-nadir
Maxar Copyright 2019 | All Rights Reserved
© 2019 Maxar Technologies 1313
Failed Safir Rocket Launch | Imam Khomeini Space Launch Complex, Iran | August 29, 2019 | Planet Labs Satellite Image via NPR.org
Planet SkySat Image72-cm resolutionCollected at 10° off-nadir
© 2019 Maxar Technologies 14
Growing International Defense and Intelligence (IDI) Demand
IDI Market Environment
Persistent global security threats
Rising budgets
Imagery & insights in great demand
Space is a focus of investment
Nascent but growing services opportunities
Maxar Capabilities
Geospatial data and products
Machine Learning and Analytics
Defense services and solutions
Satellite and system integration
Space robotics
Ground systems
© 2019 Maxar Technologies 15
Multifaceted opportunities with civil agencies
NASA exploration efforts focused on deep space align well with Maxar Capabilities
• Space robotics• Solar electric propulsion• Examples: PPE and Restore-L
NASA science efforts focused on better understanding our planet
• Geospatial data and products• Machine learning and analytics• Examples: TEMPO, Psyche, and Mars Rovers,
as well as multiple geospatial data programs
Other civil agencies focused on emergency response, urban planning, and regulatory compliance benefit from company's capabilities
• Geospatial data and products• Machine learning and analytics• Examples: Multiple projects and products
deployed globally
© 2019 Maxar Technologies 16
Commercial demand driven by innovation and new use cases
Earth Intelligence Applications Capabilities
• Autonomous applications
• Wireless network planning
• Resource planning
• Risk Management and Mitigation
• High resolution imagery
• Mapping
• Change detection
• Data analytics and machine learning
Space Infrastructure Applications Capabilities
• Voice and Data Communications
• Imagery
• Remote sensing
• Video distribution
• Satellite design
• Satellite integration
• LEO and GEO
• Ground Systems
© 2019 Maxar Technologies 17
Recent challenges
Stabilization of Palo Alto/ Positioning for Growth
Temporary lull in major Canadian projects
Loss of WorldView-4 ahead of Legion
constellation in 2021
Re-engineering and optimization of operating
model post merger
High Current Leverage
© 2019 Maxar Technologies 18
Progress against near-term priorities
Reduce debt and leverage
Lower debt but higher leverage q/q in 2Q19
Continue to drive on alternatives to reduce leverage and debt levels
Re-engineer Space Solutions business (legacy SSL)
Improving operational performance and re-engineering
Expanding TAM: Commercial, Civil, DoD/Classified
Solid new wins, including PPE and a GEO Comsat
Position MDA for long-term growth
Canadian Surface Combatant started; solid pipeline
Canadarm2 performing well; Canadarm3 in pipeline
Recent win: Robotic interfaces for Canadarm3
Position Earth Intelligence businesses (Imagery and Services) for long-term growth, drive Imagery to flat revenue & Adj. EBITDA in 2019, & recover insurance proceeds for WV-4
$10M to $15M rev. shift from WV-4 under contract
Wins: study w/ NRO; Vricon OWT, new RAP customer
Full recovery of $183M in insurance proceeds
Reduce cost structure / Deploy new operating model
Material cost take outs in 1H19
On track for original merger synergy targets
On track for incremental $60M in year / $70M run rate
1
2
3
5
4
© 2019 Maxar Technologies 19
Multi-year view
Underway Medium-Term Longer-Term
Reset and S
tabili
ze
• De-lever and reduce debt
• Space Solutions (ex-SSL): Re-engineer
• MDA: Position for growth via new wins
• Imagery: Drive to flat revenue and EBITDA
• Services: Execute on growing backlog
• Deploy new operational model
• Peak satellite CapEx Retu
rnin
g to G
row
th
• De-lever and reduce debt
• Space Solutions: Position for growth by addressing Commercial, Civil, and DoD / Classified markets
• MDA: Growth driven by Canadian space and defense + commercial
• Imagery: Growth driven by subscriptions / products
• Services: Execute on backlog + new wins driven by AI/ML
• Declining satellite CapEx Accele
rate
/ O
ptim
ize
• Top-line growth• Higher Imagery capacity• Canadian space & defense• US & International services• Commercial, Civil, DoD /
Classified space
• Margin expansion• Mix and execution• Product / services adoption• OpEx leverage
• Lower capital intensity• Smaller manufacturing &
satellite capital footprint• Further penetration of services /
product offering
• Optimize capital structure
© 2019 Maxar Technologies 20
Leader in large and growing markets with technological differentiation and industrial lead
Trusted partner to the most complex and discerning government and commercial customers
Solid and growing number of long-term franchises
On a path to address near-term challenges – know what we have to do and are doing it
Summary
© 2019 Maxar Technologies 21
NON-GAAP FINANCIAL MEASURES
See supplemental financial information found on the company’s website www.maxar.com for reconciliation of the non-GAAP financial metrics found in this
presentation. 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 and Adjusted EBITDA.
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. 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 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 and Adjusted EBITDA are not recognized terms under U.S. GAAP and may not be defined similarly by other companies. EBITDA and Adjusted
EBITDA should not be considered alternatives to net income (loss) as indications of financial performance or as alternate to cash flows from operations as
measures of liquidity. EBITDA and Adjusted EBITDA 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
© 2019 Maxar Technologies 22
Financial Outlook – 2019(Issued on August 6, 2019)
Other Noteworthy ItemsDepreciation and Amortization: ~$405MInterest Expense: ~$200MTax Rate: ~0%Share Count: ~61M
Amortization on Purchased Intangibles
EV Deferred Revenue / Imputed Interest
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.
In $ millions
Revenue is reported in the Imagery segment and relates to the Enhanced View (EV) contract signed in 2010 that expires in August 2020. There are no material costs associated with this revenue.
1 This is a non-GAAP financial measure. Refer to section “Non-GAAP Financial Measures” in the Appendix to these earnings slides.
2019 2020 2021
$120 $80 $0
2019 2020 2021 2022 2023 After
$234 $203 $145 $118 $47 $353
Imagery, Services, and MDA Adjusted EBITDA1
> $550M[Including Corporate expense but excluding Space
Solutions retention]
Space Solutions Adj. EBITDA1 Approximately Breakeven
Space Solutions Eliminations (~$20M)
Space Solutions Retention (~$20M)
Total Adj. EBITDA1 >$510M
Operating Cash Flow $350M to $450M(ex Space Solutions)
Space Solutions Op. Cash Flow ($100M) to ($80M)(excluding $20M in retention payments)
CapEx < $375M(excluding roughly $20M of capitalized interest)
Debt Covenant Add BacksConversion from US GAAP to IFRS + add backs allowed for under credit agreement
Leverage Ratio for Covenant Calc. < 6.0x
© 2019 Maxar Technologies 23
Imagery: resilient business in growing market
Key Facts and Figures Pipeline and Outlook
2018: $845M in revenues with 61.3% Adj. EBITDA margins
Key Programs / Areas:⁃ EnhancedView⁃ Global-EGD⁃ Roughly a dozen DAFs⁃ 400+ commercial customers
Robust pipeline
USG: Classified and unclassified programs
IDI: SecureWatch, Legion-X, GEOINT services, etc.
Commercial: EarthWatch and other online platforms
Outlook
2019 outlook - flat y/y revenue and Adj. EBITDA
Medium-term outlook - growth driven by subscription / product adoption
Longer-term outlook - Capacity growth as Legion comes on-line in 2021
Satellite Imagery Information Products Subscription Access Analytics
Capabilities
© 2019 Maxar Technologies 24
Services: continued growth and stable margins
Key Facts and Figures Pipeline and Outlook
2018: $266M in revenues with 9.4% Adj. EBITDA margins
Key Programs / Areas:⁃ SBIR Phase III AI & Predictive Analytics ⁃ Classified Intel Mission Support ⁃ Classified Space ISR Mission ⁃ NGA Janus Geography GEOINT
Major Pipeline Pursuits:
Classified DoD Predictive Analytics
Classified GEOINT Data Processing
Army Remote Ground Terminal Program
DHS and International Defense GEOINT Prod
Outlook
2019 outlook - low single digit rev. growth and ~10% Adj. EBITDA margins
Medium-term outlook - Driven by recent growth in backlog and US government demand
Longer-term outlook - Driven by demand for insights from geospatial data and further penetration of international markets
Sensor & Ground Modernization Data to Insight Agile Intelligence
Capabilities
© 2019 Maxar Technologies 25
Space Systems: opportunities for growth & improved profitability
Key Facts and Figures Pipeline and Outlook
2018: $1.1B in revenues with 0.4% Adj. EBITDA margins
Noteworthy non-GEO Comsat programs:⁃ Restore-L⁃ OneWeb⁃ PPE for Artemis program⁃ ISS Robotics⁃ Psyche⁃ Canadian Surface Combatant
Pipeline
LEO and GEO programs
Classified Programs
Canadarm 3 for Lunar Gateway
Other civil: robotics, exploration, servicing, etc.
Outlook
2019 outlook - MDA: Mid-single digit rev. decline & several hundred bps. margin compression. Space Solutions (legacy SSL brand): Improved Adj. EBITDA and cash flow headwinds y/y.
Medium-term outlook - MDA: Driven by Canadian space and defense programs as well as commercial satellite opportunities. Space Solutions: Driven by execution, timing of milestone payments & new orders for 1300 & Legion-class buses.
Longer-term outlook - MDA: Driven by Canadian space and defense programs, penetration of export markets, and commercial satellite programs. Space Solutions: execution and new orders for 1300 and Legion-class buses.
Satellite Components &
Payloads
Satellite Ground Stations
Communications Satellites
Radar SatellitesRemote Sensing
SatellitesRobotics Defense Systems
Capabilities
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