Investor Presentation December 2019 Disclaimer
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Investor Presentation December 2019 Disclaimer This presentation 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” 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. © 2019 Maxar Technologies 2 Table of Contents . Introduction . Maxar Today . Segment Overview . Financial Performance . Appendix © 2019 Maxar Technologies 3 Maxar Today © 2019 Maxar Technologies Overview of Maxar Today Imagery REV: $845M Services Adj. EBITDA: $518M REV: $266M . Leader in Earth Intelligence and Space Systems, Adj. EBITDA: $25M 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 FY18 customers Revenue − Evolving requirements of civil government customers $2.1B − Pursuit of innovation with commercial customers Customer Type 1 Offering Type 1 Geography 1 Space Systems US Gov’t Int’l Gov’t Products U.S. 64% 4% REV: $1,129M 42% 40% Adj. EBITDA: $5M 7% 60% 1% 54% Other 6% Canada Services 6% 16% South Commercial America Europe Asia © 2019 Maxar Technologies 5 1 Figures shown per 2018 results as disclosed in MAXR’s FY2018 SEC Form 10-K. Large and Growing Addressable Markets US International Commercial Government Governments . Persistent global security . Persistent global security . Strong imagery demand driven threats threats by new use cases enabled by Artificial Intelligence (AI) and . Rising defense budgets . Rising budgets Machine Learning (ML) . Increasingly seeking to use . Imagery and insights in great . Space-based remote-sensing viable commercial alternatives demand pipeline experiencing growth . Imagery and insights in great . Space is a focus of investment . LEO constellations underway demand (OneWeb) and in the pipeline . Nascent but growing services (Telesat) . Space is a focus of investment opportunities © 2019 Maxar Technologies 6 Hundreds of Diverse and Complex Customers Globally Government Customers Commercial Customers © 2019 Maxar Technologies 7 We are a Market Leader, Serving Customer Missions with our Industry-Leading Capabilities 1 Customer Value Chain Components SubsystemsSystems Data/Products Services/Solutions 2 Space Systems Earth Intelligence (MDA & Space Solutions) (Imagery & Services) Satellite Space Satellite System Ground Highest Quality Geospatial Platforms Hardware Robotics Integration Integration Systems Geospatial Data Services, & Products Analytics and Solutions 3 Maxar Franchise Products / Contracts Antennas Robotics Satellites Imagery GEOINT Platforms Services LEO / GEO - Canadarm - 1300 Class - EnhancedView - SecureWatch - SBIR Phase III - Psyche - Legion Class - Direct Access - Global-EGD - Restore-L - Radar Satellites - Rapid Access - Mosaics - Optical / SAR Images © 2019 Maxar Technologies 8 Segment Overview © 2019 Maxar Technologies Imagery Overview Key Business Metrics . Native 30cm resolution imagery . Delivering high-resolution imagery and radar data sourced from Satellite . Advanced multispectral capabilities 2018 Revenue: Maxar’s own advanced satellite constellation and third-party providers Imagery including short-wave infrared (SWIR) $845M . Global leader: Highest-resolution, commercially-available imagery . 18-year, 100 petabyte image archive with 100 petabyte historical image library . Platform: Integrated into customer workflows Adj. EBITDA . Scalable cloud-based environment Margin: . Reducing capital intensity: WorldView Legion constellation build 61.3% . Extending technology lead: Higher revisit, more insights at scale . Machine learning and computer vision Analytics algorithms . Content sources: Maxar EO Satellites, Landsat, RADARSAT-2 SAR . Advanced Elevation Suite Information . Building Footprints Products . Telco Geodata . Global - Enhanced Geospatial Delivery Subscription . SecureWatch Access . Spatial on Demand © 2019 Maxar Technologies 10 Maxar Has the Market-Leading Capabilities Resolution Geolocation Accuracy Revisit Collection Capacity / Scale / Agility . High resolution enables . Radial distance from the true . Increased collection . Contributing factors in determining the number customers to see objects geo-location coordinates, opportunities of orbital passes required to collect an area of invisible to other providers reducing the need for over areas of highest interest, interest verification unlocking monitoring and change-detection capabilities 100km x 100km (~Denver metro area) Resolution Native Accuracy ~1 pass to Maxar (WorldView) 30-50cm Maxar < 5m Maxar <60 min capture Denver Airbus (Pleiades) 70cm Airbus (Pleiades) <10m Closest competitor < 90 min with WV-2 Planet (SkySats) 80cm Planet (Doves) > 100m Planet (Doves) 3-5m 5m 15m 25m ~250 to 400 points to capture with SmallSat competition Requires 40-80 satellite passes to image all of Denver Resolution quality provides Future constellation improves Best-in-class geolocation Leading agility, enabling mission flexibility strong competitive current revisit times, while accuracy (i.e. both targets and mapping) advantage relative to peers maintaining quality © 2019 Maxar Technologies 11 Key Competitive Advantage of Image Resolution Quality of Image Resolution Matters – Comparison to Peers Planet Labs Image (tweeted by Secretary Pompeo) Maxar Image WV-1) © 2019 Maxar Technologies 12 Highlights of Key Programs by Customer Market US Government International Governments EnhancedView Follow-On SBIR III Predictive Analytics Data Products . $300M/year Service Level Agreement (SLA) contract for . Supporting efforts across NGA . Customers maintain a complete, current understanding of their full access to Maxar high-resolution imagery that provides to enable rapid collaborative region of interest through the purchase of country to continent scale steady, predictable revenue mapping for thousands of mosaics, elevation models, and other data sets credentialed users and apply . At time of transfer, NRO added three more option years to machine learning and data the contract (through August 2023) analytics to satellite imagery to SecureWatch automate and augment intelligence analysis . Online, subscription service for defense and intelligence customers, Global EGD delivering web-based access to Maxar’s complete optical imagery library and RADARSAT-2 images over select global sites . Provides easy access to Maxar’s full archive of imagery for Janus Geography . Subscribers have access to fresh imagery as it is collected, the ability Warfighters, first responders, and map-makers in a ready-to- to integrate the service via APIs into their workflow, exploit imagery via use format on unclassified and classified networks . Maxar was one of ten companies that won a Prime proprietary algorithms, and order imagery for offline delivery . SLA with predictable revenue of roughly $44M/year contract for Janus during 2018. The IDIQ contract, with a 10- . Maxar recently negotiated a four-year contract