DFW Aerospace Defense Forum XCOR CORP December 2015
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The Aerospace & Defense Forum Dallas/Ft. Worth Chapter December 10, 2015 The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. DFW Aerospace Defense Forum XCOR CORP December 2015 MARKET OVERVIEW 1 The Aerospace & Defense Forum Dallas/Ft. Worth Chapter December 10, 2015 HISTORY OF THE SPACE MARKET Early space market government driven • Missions were limited to government priorities Traditional Aerospace • Frequency was driven by single customer (government) High cost infrastructure with few customers, low launch • Cost a non issue rate, high cost per flight Applications Technology was determined by government (Missions) • Type of missions, launch and frequency • Disposable launch • Vertical launch and limited recovery Platform (Launch vehicles) High cost mission programs • Reusability impossible Infrastructure (Regulatory, Launch pads, etc.) Market Limiting due to cost, safety, capabilities and availability CURRENT/NEAR TERM MARKET FOR SPACE Current generation technology is focused on several areas • Using private enterprises to make established, government and scientific missions more affordable • Commercial efforts to advance technology for space platforms and missions Multiple market segments are seeing opportunities in space • Communications • Science • Manufacturing Cost, capabilities and • Security frequency remain limiting • Mining factors to opening the • Tourism market to other potentially • Space maintenance viable missions. • Medical • Point to point capabilities 2 The Aerospace & Defense Forum Dallas/Ft. Worth Chapter December 10, 2015 FUTURE WINNERS WILL COMBINE LOW COST WITH HIGH FLEXIBILITY FUTURE WINNERS History History During the 80s and 90s the cost Most rocket launches are very HighHigh of launching was secondary (e.g. costly and designed to carry Cost per kg to Low Earth Orbit at large freight. Launch lead time ~$ 15K/kg - $ 30K/kg range) can take years, and smaller freights often share rides making Flexibility Future timing and destination inflexible MOST LowLow TRADITIONAL NEW SPACE Enablers of the future space INITIATIVES industry are in a 'race' to drive Future down the cost to launch (e.g. Reusable launch vehicles will cost per kg to LEO is currently at make launch schedules much a fraction of prior costs for more flexible and a process of HighHigh LowLow SpaceX and will further weeks/days rather than years decrease by future initiatives) Launch costs OUR FIT IN THE MARKET Traditional Aerospace New Space High cost infrastructure with Applications Low cost infrastructure, high flight rate, few customers, low launch (Missions) opens many new markets for large rate, high cost per flight numbers of customers Applications (Missions) XCOR XCOR’s platforms are more changes the Platform game (Launch vehicles) capable, accessible, affordable and serviceable. Platform (Launch vehicles) Infrastructure (Regulatory, Launch pads, etc.) Infrastructure Infrastructure(Regulatory, Launch (Regulatory,pads, etc.) Launch pads, etc.) 3 The Aerospace & Defense Forum Dallas/Ft. Worth Chapter December 10, 2015 THE NEW SPACE INDUSTRY XCOR THE COMPANY 4 The Aerospace & Defense Forum Dallas/Ft. Worth Chapter December 10, 2015 SPECIFIC MARKET OPPORTUNITIES FOCUS ON SPECIFIC MARKET OPPORTUNITIES: - Rocket engines With diverse, highly profitable revenue streams, the Company will - Wet Leases of spacecraft be positioned to either continue to expand its cash generating - Payloads and scientific market business model or be a potential acquisition target for financial or strategic buyers. - Space tourism - Ancillary revenue streams (*) - Orbital markets (*) * Future markets and opportunities for XCOR u XCOR VISION XCOR VISION Frequent - Space offers boundless technology and business opportunities Lessons Flights Learned - To open market: frequency must increase, costs drop and capabilities dramatically improve - Keys to commerciality of space are reusability Lower Cost Safer Flight - Engines and vehicles must have high usage rates, low serviceability requirements (quick turn times) and long lifespan High tempo flight operations are Diverse capabilities, accessibility and affordability will enabled by true reusability, rapid drive mission development. deployment and minimal maintenance 5 The Aerospace & Defense Forum Dallas/Ft. Worth Chapter December 10, 2015 XCOR MISSION XCOR MISSION NEW SPACE Through developing and producing highly reusable, and affordable engines and vehicles with low service requirements, XCOR provides platforms to HighHigh dramatically increase the viability of space missions and opportunities across diverse markets Flexibility MOST LowLow TRADITIONAL NEW SPACE > INSTANT REUSABILITY INITIATIVES HighHigh LowLow Launch costs HIGHLIGHTS IN THE HISTORY OF XCOR Candidate for ULA agreement for ACES Development of Development of upper stage engine EZ-Rocket X-Racer (exp. Jan ‘16) 1999 2001 2003 2005 2007 2009 2011 2013 2015 Founded in 1999 Further developed Completing 65+ Production Near future: rocket engine manned rocket agreement with Lynx Mark II and (e.g. LOX/Methane flights, including 7 Space Florida XCOR Orbiter Engine) flights in one day 6 The Aerospace & Defense Forum Dallas/Ft. Worth Chapter December 10, 2015 PRODUCT EVOLUTION XCOR ENGINES XCOR SUBORBITAL LYNX Low cost, reusable (current) Carries people, payloads and scientific experiments to 100km XCOR EZ- XCOR ORBITAL (near future) ROCKET Two stage air launched fully Demonstrated cost reusable orbital launch system per flight at $900 XCOR X-RACER Our team has accumulated over 4,000 engine firings and 7 flights in one day with has safely flown a piloted rocket operated demonstrator 10 minute turnaround. aircraft 66 times without a single incident. Safety has our Technology proven highest priority . for Lynx system. Evolutionary step by step approach. BUSINESS DIVISIONS ROCKET ENGINES SPACECRAFT PAYLOAD MISSIONS SPACE TOURISM (WET LEASE) 7 The Aerospace & Defense Forum Dallas/Ft. Worth Chapter December 10, 2015 PRODUCTS & SERVICES BUSINESS LINE 1: INSTANTLY REUSABLE ENGINES XCOR Aerospace position • XCOR rocket engines are pump fed, modular and demonstrated with restartability, reliability and reusability • Instant reusability: fly under rocket power, land, re- fuel, perform a check list and take off again • No use of hypergolics, but rather non-toxic bi-propellants Main competitors 8 The Aerospace & Defense Forum Dallas/Ft. Worth Chapter December 10, 2015 BUSINESS LINE 2: WET LEASE XCOR Aerospace position • Two-seat spacecraft that makes use of standard runway; Lynx can fly up to 4 times a day, every day • Engines designed to be used thousands of times • Ability to carry and launch scientific and industrial equipment (payloads) into LEO • Possibility to sell, build and operate under wet lease Main competitors THE XCOR LYNX 9 The Aerospace & Defense Forum Dallas/Ft. Worth Chapter December 10, 2015 BUSINESS LINE 3: PAYLOADS/SCIENTIFIC RESEARCH XCOR Science & Payloads position • Low cost compared to substitute competitors • Frequent access, short lead time • Multi-mission payload capabilities in one flight • Missions include: microgravity research, in-situ sampling, remote sensing, micro-satellite launches, tech development and astronaut training Main competitors BUSINESS LINE 4: TOURISM XCOR Space Expeditions position • Unlike any of the competitors passengers travel in the co-pilot’s seat • Horizontal takeoff, supersonic in T+60 sec, and Mach 2.9 at T+180 seconds • Giant canopy with nearly 360 degree view from above Main competitors 10 The Aerospace & Defense Forum Dallas/Ft. Worth Chapter December 10, 2015 LYNX FLIGHT PROFILE XCOR SPACE EXPEDITIONS: CORPORATE PARTNERS 11 The Aerospace & Defense Forum Dallas/Ft. Worth Chapter December 10, 2015 TEAM KEY MANAGEMENT CEOCOO CCO BOARD- MEMBERS TEAMS XCOR.COM /XCOR @XCOR 12.