Slide 1: Q4 & Full Year 2023 Investor Update
Rocket Lab USA, Inc. Q4 & Full Year 2023 Investor Update February 27th, 2024 rocketlabusa.com
Slide 2: Forward Looking Statements
F O R WA R D L O O K I N G S TAT E M E N T S Forward Looking Statements This presentation may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securit
Slide 3: Today's Presenters
T O D AY ’ S PRESENTERS Peter Beck Adam Spice Founder, Chief Executive Officer, Chief Engineer Chief Financial Officer 3
Slide 4: Agenda
Agenda 1 Key Accomplishments Q4 2023 2 Interim Accomplishments Q1 2024 3 Financial Highlights and Outlook 4 Q&A and Upcoming Events 4
Slide 5: Key accomplishments Q4 2023: Launch
SECTION Key accomplishments Q4 2023 LAUNCH
Slide 6: Successful return to flight in Q4
Successful return to flight in Q4 Completed detailed anomaly investigation, quickly securing FAA approval to return to flight Implemented new enhanced testing and robust new mitigations to stage 2 to prevent similar failures in future Successfully launched, deploying SAR satellite to orbit for Japan
Slide 7: New Launch Record
New Launch Record Second highest number of launches for a U.S. Launch provider annually, behind only SpaceX 10 launches in 2023, besting previous annual record of nine Only small launch provider to launch more than one orbital mission in 2023 Three successful missions from new LC-2 pad First HASTE l
Slide 8: Record year for new launch deals
Record year for new launch deals 25 new launch deals signed in 2023 18 Electron launch contracts + 7 HASTE launch contracts US and NZ launch sites now both operational, enabling increased launch cadence Contracts signed with diverse customer base including civil, defense and national security govern
Slide 9: Key accomplishments Q4 2023: Space Systems
SECTION Key accomplishments Q4 2023 Space Systems
Slide 10: Awarded $515M contract by SDA
Awa r d e d $ 5 1 5 m contract by SDA Establishes Rocket Lab’s position as a leading satellite prime contractor, providing supply chain diversity to the Department of Defense Rocket Lab will design, build, test, and operate 18 Tranche 2 Transport Layer-Beta satellites for the Space Development Agenc
Slide 11: Globalstar constellation in production
G l o b a l s ta r c o n s t e l l at i o n in production Flight hardware coming off the production line Structural build underway on the first flight frame for constellation of 17 spacecraft for Globalstar and MDA. Up next: components & subsystems built Rocket Lab teams in Albuquerque, Littleton, T
Slide 12: ESCAPADE mission to Mars
E S C A PA D E M I S S I O N TO MARS Twin Rocket Lab spacecraft preparing for launch in Q3 Both propulsion decks welded and complete Pre-environmental review for both spacecraft complete. First spacecraft ready for environmental testing with the second close behind Next up: Launch site ground operat
Slide 13: Additional accomplishments as of February 2024
SECTION ADDITIONAL accomplishments As of 27 February 2024
Slide 14: Path to First Flight
Pat h t o F i r s t F l i g h t Critical Neutron development milestones achieved in Q4 2023 + Q1 2024, plus anticipated Q2 & Q3 2024 Q4 2023 + Q1 2024 Archimedes Program Critical Test Stand Build Design Review Interstage Build Stage 2 Build First hardware- Archimedes LC-3 Concrete & in-the-loop Pre-
Slide 15: Vehicle Development
Vehicle Development Key Avionics Milestones: • Successful Hardware-in-the-Loop (HITL) simulated flight to orbit + landing • Real flight software running on real Neutron hardware • “Testing as we fly” from operator consoles through to fluids valves • Flight 1 engine & stage controllers now in product
Slide 16: Vehicle Development
Vehicle Development Stage 1 Upper Module Structures: • Fairing tooling complete, part production is underway with first parts expected Q1/Q2 2024 • Interstage tooling in final preparation and first parts expected in Q2 2024 Stage 1 & Stage 2 composite tank structures: • All long-lead Stage 1 tank to
Slide 17: Archimedes Development
ARCHIMEDES Development First engine build nearing completion in preparation for first hot fire • Single-element pre-burner test campaign complete. Test campaign has successfully proved out element design across the full throttle range which has been incorporated into the full-scale pre-burner. • All
Slide 18: Launch Infrastructure
Launch Infrastructure Key LC-3 Construction Milestones: • Major concrete and civil works well underway across the launch site • Construction activities running in parallel over the next quarter include: • Water tower • Propellant storage foundations • Gas storage foundations • Long lead procurements
Slide 19: Test Infrastructure
Test Infrastructure Key Archimedes Test Stand Milestones: • Test stand construction is substantially complete undergoing activation in preparation for engine arrival. • Achieved significant capital and speed efficiencies by utilizing infrastructure from the NASA A3 test stand. 19
Slide 20: Production Infrastructure
Production Infrastructure Key Production Infrastructure Milestones: Space Structures Complex, Middle River MD • Took over facility November 2023. Large scale production equipment being installed Q1/Q2 2024. • AFP (Automated Fiber Placement machine) is nearing completion, enabling autonomous producti
Slide 21: Two successful launches in Q1 so far
Two successful l a u n c h e s i n q 1 s o fa r Complex missions that required precision accuracy and responsive mission design LAUNCHES COMPLETE 31 Jan 2024 | 4 Satellites Dedicated launch for Spire Global & NorthStar Launch Complex 1, New Zealand 19 Feb 2024 | 1 Satellite Dedicated launch for Astr
Slide 22: Electron Reusability progress
Electron Reusability progress Electron first stage recovered in best condition yet Electron recovered in record time and in best condition yet. Currently assessing suitability of reflying. Next milestone: Launching a mission with a full set of nine pre-flown Rutherford engines. 22
Slide 23: First Rocket Lab spacecraft re-entry mission
First Rocket Lab s pa c e c r a f t r e - e n t r y mission Successful re-entry of a capsule from orbit. Only SpaceX and Rocket Lab deliver this capability commercially. Rocket Lab designed and built the spacecraft, operated it on orbit for more than eight months, then successfully re-entered it to
Slide 24: Introducing The Rocket Lab Spacecraft Family
Introducing The Rocket Lab S pa c e c r a f t Fa m i ly Updated family of advanced spacecraft platforms deliver speed, affordability, performance, and configurability for a range of mission profiles and customers. Expanding beyond Photon with full suite of standard spacecraft bus platforms. By shari
Slide 25: Financial highlights and outlook
SECTION Financial highlights and outlook
Slide 26: Review of Revenue and Gross Margins
REVIEW OF REVENUE AND GROSS MARGINS Full year 2023 revenue increase of about 16%, or $33.6M, driven by an increase of launches from nine $244.6M 1 5 .9 % to ten as well as growth in our Space Systems Revenue in FY 2023 Year-on-Year revenue increase business, driven primarily by our component busines
Slide 27: Review of Backlog
REVIEW OF Backlog Year-on-Year $1,046M 1 0 7 .7 % Year ending backlog increase of 108%, or $542.5M, was partially driven by an over 2x increase in our Backlog as of Q4 2023 Year-on-Year backlog increase launch services segment, driven by multi launch deals with commercial and government partners, al
Slide 28: Review of Operating Expenses (Year-on-Year)
R E V I E W O F O P E R AT I N G EXPENSES Year-on-Year GAAP SG&A expense increased primarily due to GAAP & Non-GAAP increases in facility costs related to the purchase R&D vs. SG&A Spending of the Engine Development Center paired with modest increases in staff costs. $70 $60 Non-GAAP SG&A expense in
Slide 29: Review of Operating Expenses (Quarter-on-Quarter)
R E V I E W O F O P E R AT I N G EXPENSES Quarter-on-Quarter GAAP SG&A expense decreased primarily due to reduction in performance escrow related to our ASI acquisition, partially offset by an increase in GAAP & Non-GAAP change in contingent consideration related to our R&D vs. SG&A Spending Planeta
Slide 30: Ending Cash and Non-GAAP Free Cash Flow Metrics
Ending Cash and Non-GAAP Free cash flow metrics Quarter-on-Quarter $327.9M in cash and cash equivalents, marketable securities and restricted cash, end of period in Q4 2023. Cash consumed from purchases of property, Non-GAAP Free Cash Flow Activities equipment and software decreased $10.6M Q3 2023 Q
Slide 31: Profitability Trends
P r o f i ta b i l i t y t r e n d s Trailing Four Quarter Revenue growth and gross margin expansion are enabling meaningful improvements in the model. Improving gross profit trends are helping to close the Profitability Trends gap to adjusted EBITDA break-even. $80 $68 40% $62 29% $60 $55 32% 32% W
Slide 32: Closed Upsized Offering of $355 Million Convertible Senior Notes
Closed Upsized Offering of $355 Million Convertible Senior Notes Net Shares Issued Upon Conversion1 MM Net Shares Issued 100% above 25.0 Conversion Stock Price Price at Issue 22.9 Strategic decision to add funding to the Rocket 20.0 18.6 Lab balance sheet at what we view as cost- effective and share
Slide 33: Financial Outlook
FINANCIAL OUTLOOK Q1 2024 Revenue Q1 2024 GAAP and Non-GAAP Q1 2024 GAAP and Non-GAAP Q1 2024 Adjusted EBITDA Outlook Gross Margins Operating Expense • Expect revenue to range • Expect GAAP gross margin to • Expect GAAP Operating • Expect Interest Expense between $92 million to $98 range between 24
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Slide 35: Upcoming Investor Events
UPCOMING Investor Events Roth MKM Growth Bank of America 2024 KeyBanc Stifel Cross Sector Conference Industrials Industrials Insight Conference Conference 2024 Conference March 19, 2024 May 15, 2024 May 29, 2024 June 6, 2025 Adam Spice Adam Spice Adam Spice Adam Spice CFO CFO CFO CFO 35
Slide 36: Rocket Lab
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