Virgin Galactic Holdings, Inc. · NYSE:SPCE

Virgin Galactic — Q1 2021 Earnings Presentation

18 slides from Virgin Galactic's earnings presentation, May 10, 2021

  1. Slide 1: First Quarter 2021 Investor Update

    FIRST QUARTER 2021 INVESTOR UPDATE 05.10.2021

  2. Slide 2: Disclosures

    DISCLOSURES FORWARD‐LOOK ING STATEMEN TS This presentation contains certain forward‐looking statements within the meaning of federal securities laws with respect to Virgin Galactic Holdings, Inc. (the "Company"), including statements regarding the Company’s expected spaceship rollout and flight sche

  3. Slide 3: Michael Colglazier, CEO

    MICHAEL COLGLAZIER CEO FIRST QUARTER 2021 INVESTOR UPDATE P — 3

  4. Slide 4: Strategic Priorities

    STRATEGIC PRIORITIES ▪ Fleet Readiness ▪ Fleet Expansion ▪ Customer Experience & Commercial Strategy FIRST QUARTER 2021 INVESTOR UPDATE P — 4

  5. Slide 5: Suborbital Spaceflight Markets

    SUBORBITAL SPACEFLIGHT MARKETS ▪ Private Astronaut ▪ Microgravity Research ▪ Professional Astronaut Training FIRST QUARTER 2021 INVESTOR UPDATE P — 5

  6. Slide 6: EMI Corrective Actions

    Horizontal EMI CORRECTIVE ACTIONS Stabilizer Actuators Rocket Motor Computer Suppress EMI Generated by the Flight Control Computer ▪ Added Electronic Components to Filter and Prevent the Generation of EMI Dampen Stray EMI Generated by the Ship’s Wiring ▪ Improved Harness Shielding and Added Componen

  7. Slide 7: Flight Test Program

    FLIGHT TEST PROGRAM ▪ FIRST FLIGHT  Currently re‐evaluating launch timing  Rocket‐powered spaceflight with two pilots onboard ▪ SECOND FLIGHT  Two pilots and full cabin of mission specialists ▪ THIRD FLIGHT  Demonstrates private astronaut experience  Manifest includes Sir Richard Branson ▪ FOUR

  8. Slide 8: Fleet Expansion

    FLEET EXPANSION ▪ Unveiled VSS Imagine, first SpaceShip III Class Vehicle, on March 30, 2021 ▪ Ground testing followed by flight testing ▪ Focused on scaling design and development capabilities: ▪ Spaceships ▪ Rocket motors ▪ Motherships FIRST QUARTER 2021 INVESTOR UPDATE P — 8

  9. Slide 9: Customer Experience

    CUSTOMER EXPERIENCE ▪ Building a consumer business on top of an aerospace company  Commercial Strategy  Brand Architecture and Marketing Strategy FIRST QUARTER 2021 INVESTOR UPDATE 99 P P— — 9

  10. Slide 10: Financial Strategy

    FINANCIAL STRATEGY ▪ Aligning Financial Planning with Operational Objectives:  Private Astronaut Market  ~600 Future Astronaut Reservations  Plan to re‐open ticket sales around Sir Richard Branson flight  Microgravity Research & Professional Astronaut Training  Introductory Flight  1st Full Re

  11. Slide 11: Financial Results

    FINANCIAL RESULTS (Amounts in thousands) THREE MONTHS ENDED March 31, 2021 March 31, 2020 Net Loss $ (129,694) $ (376,826) Adjusted EBITDA (1) $ (55,945) $ (52,740) 1. Virgin Galactic uses adjusted EBITDA as a key measure of its performance. Adjusted EBITDA excludes stock‐based compensation and non‐

  12. Slide 12: Capital Allocation

    CAPITAL ALLOCATION CAPITAL ALLOCATION PRIORITIES CASH & CASH EQUIVALENTS ▪ Maintain a Strong Balance Sheet and Cash Position ▪ Invest Organically for Growth $666M ▪ Opportunistically Access the Capital Markets $617M $419M FREE CASH FLOW (1) ▪ Q1 2021: $(50) Million  Capital Expenditures of $1 Milli

  13. Slide 13: Summary

    SUMMARY F O U R T H Q U A FR ITRESRT AQNUDA RF TU EL RL 2Y E0 A 2 1R I2N0V2 E0 S ITNOVRE SUTPODRA TUEP D A T E 13 PP — — 13

  14. Slide 14: Q&A

    Q&A F O U R T H Q U A FR ITRESRT AQNUDA RF TU EL RL 2Y E0 A 2 1R I2N0V2 E0 S ITNOVRE SUTPODRA TUEP D A T E PP — — 14

  15. Slide 15: Appendix

    APPENDIX F O U R T H Q U A FR ITRESRT AQNUDA RF TU EL RL 2Y E0 A 2 1R I2N0V2 E0 S ITNOVRE SUTPODRA TUEP D A T E 15 PP — — 15

  16. Slide 16: Reconciliation to Non-GAAP Measures

    RECONCILIATION TO NON‐GAAP MEASURES (Amounts in thousands) T H R E E M O N T H S EN D E D March 31, 2021 March 31, 2020 Net Loss $ (129,694) $ (376,826) Income tax benefit (expense) (43) 46 Interest expense 7 9 Depreciation & amortization 2,869 2,105 Non‐capitalized transaction costs* ‐ 697 Stock‐ba

  17. Slide 17: Reconciliation to Non-GAAP Measures

    RECONCILIATION TO NON‐GAAP MEASURES (Amounts in thousands) T H R E E M O N T H S EN D E D March 31, 2021 March 31, 2020 Selling, general, and administrative expenses $ 44,914 $ 26,755 Stock‐based compensation 18,038 2,870 Non‐capitalized transaction costs* ‐ 697 Non‐GAAP selling, general, $ 26,876 $

  18. Slide 18: Reconciliation to Non-GAAP Measures

    RECONCILIATION TO NON‐GAAP MEASURES (Amounts in thousands) T H R E E M O N T H S EN D E D March 31, 2021 March 31, 2020 Net cash used in operating activities $ (48,769) $ (56,313) Capital expenditures (819) (4,036) Free cash flow $ (49,588) $ (60,349) FIRST QUARTER 2021 INVESTOR UPDATE P — 18

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