Slide 1: Q2 2024 Investor Update
Rocket Lab USA, Inc. Q2 2024 Investor Update August 8, 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: Agenda
Q 2 | 2 0 2 4 E A R N I N G S Agenda 1 Highlights 2 Electron 3 Neutron 4 Space Systems 5 Financial Highlights and Outlook 6 Q&A and Upcoming Events 3
Slide 4: Building an end-to-end space company
S e c t i o n 1 | I N T R O D U C T I O N 1 COMPLETE Building an end-to- The Ride e n d s pa c e c o m pa n y ROC K ETS To use space, first you have to get there. Uniquely positioned to be a leading end-to-end space company. Right now we deliver launch and spacecraft to those 2 who provide space dat
Slide 5: Biggest quarter in company history
S e c t i o n 1 | H I G H L I G H T S B i g g e s t q u a r t e r i n c o m pa n y h i s t o r y $106m 15% 71% $ 1 , 0 67 M Revenue growth driven by increase in launches and significant growth Second quarter Quarter-on-Quarter Year-On-Year Backlog as of in our space systems revenue. revenue increase
Slide 6: Electron
SECTION Key accomplishments ELECTRON
Slide 7: Electron Business Model and Billing
S e c t i o n 2 | E l e c t r o n Electron BUSINESS Electron Billing MODEL Electron delivers what rideshares or other small rockets can’t. This is We collect the majority of cash long before lift-off, but only recognize the what drives customers to Electron, but it means launch dates are revenue at
Slide 8: Electron launch rate and contract value
S e c t i o n 2 | E l e c t r o n Electron 3rd accounts for most frequently launched rocket 64% globally in 2024 of all non-SpaceX (previously 4th). orbital U.S. launches in 2024 so far. 17 In a year plagued by new Electron launch anomalies launches signed YTD. and delays across 100% the industry, $
Slide 9: Undisputed leader in small launch
S e c t i o n 2 | E l e c t r o n Undisputed leader in small launch Across nine launches year-to-date we’ve demonstrated differentiated capabilities that show why many satellite operators are prepared to pay a premium for Electron. Back-to-back NASA launches within 11 days. Tailored constellation de
Slide 10: Strong demand from commercial customers
S e c t i o n 2 | E l e c t r o n Strong demand from commercial customers Multi-launch contracts signed with commercial constellation operators. 10 Launches: Synspective • Earth-observation constellation. • Largest Electron launch contract to date. • Repeat customer - Rocket Lab has been the sole la
Slide 11: Critical enabler to the DoD
S e c t i o n 2 | E l e c t r o n Critical enabler to the DoD Strong demand with three new contracts further strengthening Rocket Lab’s position as a trusted partner to the DoD for launch and space systems. VICTUS HAZE: Selected to design and build a spacecraft, then launch it on Electron with just
Slide 12: Reached 50 launches faster than any commercially developed rocket
S e c t i o n 2 | E l e c t r o n Reached 50 launches fa s t e r t h a n a n y c o m m e r c i a l ly developed r o c k e t i n h i s to r y On track for Fa s t e s t to 1 0 0 12
Slide 13: Pinpoint deployment accuracy
S e c t i o n 2 | E l e c t r o n P i n p o i n t d e p l oy m e n t accuracy Industry margin for deployment is typically, ~15 kilometers. Electron delivered within 8 meters. Demonstrates why Electron is sought-after for the most complex and unique small launch missions: • Rendezvous and proximity o
Slide 14: Neutron
SECTION Key accomplishments neutron
Slide 15: Neutron: the rocket solving the medium launch shortage
S e c t i o n 3 | n e u t r o n Neutron The rocket solving the medium launch shortage ROCKET DEVELOPMENT TIMELINES Electron 2.8 years NEUTRON* 4.3 years • The medium launch monopoly needs breaking. Falcon 9 4.8 years • Demand is strong and growing. From constellations alone, more than 10,000 satelli
Slide 16: Development status
S e c t i o n 3 | n e u t r o n D e v e l o p m e n t s tat u s VEHICLE infrastructure Flight hardware in production and qualification for 100% of the vehicle. We’ve built the machine that builds the machine. Fairing and Canards Flight Computers and Avionics Engine & Avionics Production Composites a
Slide 17: Archimedes engine testing
S e c t i o n 3 | N E U T R O N Archimedes engine Testing Hundreds of critical engine tests completed successfully Activation Completed check-out of all test stand systems including propellant flow tests. Spin Primes Turbopump spun up with timed commands of propellant valves. Ignition Tests Ignition
Slide 18: Hot fire completed
S e c t i o n 3 | N E U T R O N Hot fire completed Major program milestone achieved. Engine performing at 102% throttle. 18 18 18
Slide 19: Next engines in production
S e c t i o n 3 | N E U T R O N Next engines in production • Engine #2 coming off the production line. • Next five engines in production. • Doubled additive manufacturing capacity for large-scale parts. • Developed additive materials to optimize for production rate and cost. • Increased CNC machine
Slide 20: Structures
S e c t i o n 3 | N E U T R O N Structures Fairing Flight hardware fairing panels in manufacture and assembly. Stage 1 Tank Cure of full-scale tank components completed successfully. Stage 2 Tank All components in final stage of manufacturing ahead of assembly and integration to qualify design impro
Slide 21: | N E U T R O N
S e c t i o n 3 | N E U T R O N 21
Slide 22: Automated composites production
S e c t i o n 3 | N E U T R O N A u t o m at e d composites production Automated Fiber Placement machine completed factory trials and installation is underway at Rocket Lab’s Space Structures Complex in Middle River, MD. Establishing this capability in parallel to manual lay up of Neutron structures
Slide 23: Launch Complex 3
S e c t i o n 3 | N E U T R O N Launch Complex 3 Launch pad construction continues with fluid systems installation including water tower, gas storage farms, electrical and power equipment. Beginning receipt of long lead cryogenic systems. Offsite fabrication of major launch pad structures and mechan
Slide 24: Space Systems
SECTION Key accomplishments Space Systems
Slide 25: More than $720M in contract value of satellites
S e c t i o n 4 | S p a c e S y s t e m s M o r e t h a n $ 7 2 0 M i n c o n t r a c t va l u e o f s at e l l i t e s i n d e v e l o p m e n t , P r o d u c t i o n a n d O p e r at i o n Rocket Lab satellites are increasingly sought after within national security, civil and commercial space prog
Slide 26: Production complete on twin satellites for NASA Mars mission
S e c t i o n 4 | S p a c e S y s t e m s Production Complete o n T w i n S AT E L L I T E S FOR NASA MARS MISSION Once again, Rocket Lab delivers satellites on time and on budget. Two tailored satellites designed, built, and tested in just over three years from contract award. Vertical integration
Slide 27: Expanding space solar manufacturing
S e c t i o n 4 | S p a c e S y s t e m s E x pa n d i n g s pa c e s o l a r m a n u fa c t u r i n g Agreed to preliminary terms for $49.4m in proposed federal and state local incentives, including CHIPS Act funding. Our Albuquerque, New Mexico facility already produces solar cells and panels for
Slide 28: Enabling in-space pharmaceutical processing
S e c t i o n 4 | S p a c e S y s t e m s E n a b l i n g i n - s pa c e pharmaceutical processing Next Pioneer spacecraft to support commercial pharmaceutical processing in orbit for Varda Space Industries nears completion. Program milestones: W2 • Final flight software released. • Completed re-ent
Slide 29: Constellation production updates
S e c t i o n 4 | S p a c e S y s t e m s C o n s t e l l at i o n p r o d u c t i o n u p d at e s Scorpius: $515 million prime contract with Space Development Agency to build 18 spacecraft • Completed successful System Requirements Review/System Design Review. • All major payload and subcontractor
Slide 30: Introduced Next-Generation Satellite Dispenser
S e c t i o n 4 | S p a c e S y s t e m s Introduced Next- G e n e r at i o n S at e l l i t e Dispenser Continued innovation from our merchant component businesses. • Advanced Satellite Dispenser (ASD) unveiled at the Small Satellite Conference in Logan, Utah. • Cost-effective, versatile, and relia
Slide 31: Growth strategy and appetite supports end-to-end vision
S e c t i o n 4 | S p a c e S y s t e m s Separation Reaction Solar G r o w t h s t r at e g y a n d Systems Satellite Radios Wheels Arrays appetite supports our vision to be end-to-end s pa c e c o m pa n y • Customers want complete mission solutions - launch, satellite design, satellite components
Slide 32: HBO oricinat :
HBO oricinat : _ WILD WILD SPA 32
Slide 33: Financial highlights and outlook
SECTION Financial highlights and outlook
Slide 34: Review of revenue and gross margins
S e c t i o n 5 | F I N A N C I A L O U T L O O K REVIEW OF REVENUE AND GROSS MARGINS 71% 15% $106M Year-on-Year Quarter-on-Quarter Revenue in revenue increase revenue increase Q2 2024 Revenue increased 71% or $44.2M year-on-year, driven by an increase of launches from three to four as well as signi
Slide 35: Review of backlog
S e c t i o n 5 | F I N A N C I A L O U T L O O K REVIEW OF Backlog $ 1 , 0 67 M 5% Backlog as Quarter-on-Quarter of Q2 2024 backlog increase Backlog by Segment Sequential backlog increase quarter-over-quarter $1200 of 5%, or $51.3M, driven by strong bookings in our $1000 launch business, partially
Slide 36: Review of operating expenses
S e c t i o n 5 | F I N A N C I A L O U T L O O K R E V I E W O F O P E R AT I N G EXPENSES Quarter-on-Quarter GAAP & Non-GAAP R&D vs. SG&A Spending GAAP SG&A expense increased primarily due to increases in staff costs and stock-based $80 compensation following our annual merit cycle $70 $60 Non-GAA
Slide 37: Non-GAAP free cash flow and Adj EBITDA
S e c t i o n 5 | F I N A N C I A L O U T L O O K Non-gaap free cash flow and Adj EBITDA Quarter-on-Quarter $546.8M in cash and cash equivalents, marketable securities and restricted cash, end of period in Q2 2024. Cash consumed from purchases of property, equipment and software decreased $3.8M sequ
Slide 38: Financial outlook
S e c t i o n 5 | F I N A N C I A L O U T L O O K FINANCIAL OUTLOOK Q3 2024 Revenue Q3 2024 GAAP and Q3 2024 GAAP and Non-GAAP Q3 2024 Adjusted EBITDA Outlook Non-GAAP Gross Margins Operating Expense • Expect revenue to range between • Expect GAAP gross margin to • Expect GAAP Operating Expenses • E
Slide 39: Q&A
Slide 40: Upcoming Investor Events
UPCOMING Investor Events Morgan Stanley World Space Business KeyBanc Virtual NDR Satellite Innovation Laguna Conference Week October 22, 2024 September 11 - 13, 2024 September 16-20, 2024 September 26, 2024 Adam Spice Peter Beck Adam Spice Adam Spice CFO CEO CFO CFO Adam Spice CFO 40
Slide 41: Rocket Lab
— ROCKETLAB