Bigbear.ai, Inc. · NYSE:BBAI
Bigbear.ai — GigCapital4 — SPAC Merger (September 2021)
47 slides from Bigbear.ai's SPAC merger presentation, Sep 22, 2021
Slide 1: BigBear.ai to Become Publicly Traded Company via Merger with GigCapital4
BIGBEAR.AI TO BECOME PUBLICLY TRADED COMPANY VIA MERGER WITH GIGCAPITAL4 September 2021 Investor Presentation DATA-DRIVEN DECISION DOMINANCE © 2021 BigBear.ai. All rights reserved | BigBear.ai Proprietary.BIGBEAR.AI TO BECOME PUBLICLY TRADED COMPANY VIA MERGER WITH GIGCAPITAL4 September 2021 Investo
Slide 2: Safe Harbor
Safe Harbor This investor presentation (“Presentation”)is forinformational purposes only to assist interested parties in making theirown evaluation with respect to theproposed Business Combination (the “Business Combination”) between GigCapital4,Inc. (“GigCapital4”) and BigBear.ai Holdings, LLC (f/k
Slide 3: Safe Harbor (cont.)
Safe Harbor (cont.) USE OF PROJECTIONS This Presentation contains projected financial information with respect to BigBear.ai, namely theCompany’s projected revenue, products sold,gross profit,Adjusted EBITDA and Adjusted EBITDA margin for 2021-2025. Such projected financial information constitutes f
Slide 4: Today's Presenters
Today’s Presenters RELEVANT EXPERIENCE ⚫ 30+ years of experience as a science and technology innovator Dr. Reggie ⚫ Former CTO of Peraton, Under Secretary for S&T at DHS, and Dep Asst Sec Defense for Research Brothers ⚫ Awarded the Wash100, an award for the most influential leaders in the Chief Exec
Slide 5: Our Mission
Our Mission Your World is a Battleground. Know your World. Shape your World. Data-Driven Decision Dominance. Operationalizing AI at Scale. 5Our Mission Your World is a Battleground. Know your World. Shape your World. Data-Driven Decision Dominance. Operationalizing AI at Scale. 5
Slide 6: AI & Machine Learning to Augment Human Decision Making
AI & Machine Learning to Augment Human Decision Making BIGBEAR.AI’S END-TO-END SOFTWARE PRODUCTS AND TECHNOLOGY TRANSFORM RAW DATA INTO KNOWLEDGE ▪ BigBear.ai augments – not eliminates – the human decision-making process using AI / ML ▪ Enables AI assisted decision making in a realistic data environ
Slide 7: Battle Tested to Perform in Complex, Real Time Environments
Battle Tested to Perform in Complex, Real Time Environments BigBear.ai’s platform generates critical insights into complex situations where the cost of failure is significant Predicted Russian invasion of Crimea Detected fuel smuggling Product leveraged by CENTCOM to from Libya shape Iranian engagem
Slide 8: BigBear.ai Company Snapshot
BigBear.ai Company Snapshot Machine driven AI / ML enables decision making dominance $277M 61% ~$500M (1) FY’22E Total Revenue FY’22E Revenue Growth Contracted Backlog 100K $4.5B 21 Enterprise Decision Makers and Near-Term Pipeline Years in Operation Analysts Relying on Our Software 6M+ 93% 300K Pre
Slide 9: Customers Grappling with Complex, Unforgiving Data Sets
Customers Grappling with Complex, Unforgiving Data Sets The proliferation of data, if harnessed through AI / ML, could result in a global economic gain of ~$16T by 2030 – organizations that don’t leverage AI / ML may pay a steep cost Problems Faced by Companies: ▪ Organizations have spent billions t
Slide 10: Large and Rapidly Growing Addressable Market
Large and Rapidly Growing Addressable Market (1) Broader AI / ML market projected to grow at ~40% CAGR over the next 5 years to reach ~$310B by 2026 Near-Term Commercial Expansion Currently Underway MARITIME SPACE TRANSPORTATION & ENERGY RETAIL LOGISTICS Offerings include: Offerings include: Offerin
Slide 11: We Provide Customers With Mission Critical Solutions
We Provide Customers With Mission Critical Solutions Highly Customizable Capabilities Compelling Product Applications ▪ Location Intelligence: Global situational awareness and impact analysis across multiple domains reduces surprises and Data Ingestion, Artificial Predictive Full Spectrum informs de
Slide 12: Strategic Hiring Supports a Specialized Workforce
Strategic Hiring Supports a Specialized Workforce Several recent hires support sales growth and go-to-market strategy with skilled, mission-focused employees SPECIALIZED WORKFORCE 30%+ 75 100+ 90%+ 65%+ Secret+ Projected Growth New Hires Anticipated Employee Cleared Employees of Workforce in in 1H20
Slide 13: AI Powered Products for Decision Dominance
AI Powered Products for Decision Dominance OBSERVE ORIENT DOMINATE Collect and conflate big “Low Code” AI Visual interactions and real-time sources into generates insights advice for decisions in informative reports and predictions complex situations Change Detection Course of Action Impact Optimize
Slide 14: Agility and Differentiation from a Composable Foundation
Agility and Differentiation from a Composable Foundation BigBear.ai’s highly modular IP can be used alone or grafted onto a customer's existing technology to quickly produce customized solutions that meet the unique needs of the customer and the end market ADVANTAGES OF DOMINATE OBSERVE ORIENT OUR A
Slide 15: Existing Software Solutions Apply to Commercial Use Cases
Existing Software Solutions Apply to Commercial Use Cases BigBear.ai's IP, originally designed for defense and intelligence customers, can be used today within a wide range of commercial applications across every industry vertical DEFENSE USE CASE EXAMPLES: COMMERCIAL USE CASE EXAMPLES: Location ▪ D
Slide 16: Case Study: U.S. Intelligence Agency
Case Study: U.S. Intelligence Agency AI harnessed to ingest and enrich vast amounts of data to discover, characterize and alert analysts to activities of interest ▪ Real-time global tracking of entities 110+ Years of Labor Costs Saved ▪ Began with Observe and were able to Through Use of BigBear.ai u
Slide 17: Case Study: Large Public Transportation and Logistics Firm
Case Study: Large Public Transportation and Logistics Firm BigBear.ai provides a SaaS maritime intelligence portal to enhance awareness, safety, efficiency, and competitiveness ▪ Near real-time analysis and modeling of vessel telemetry, 1K Miles Identified Vessels that cargo, weather, events, and co
Slide 18: Well Situated Between Competitive Offerings
Well Situated Between Competitive Offerings BigBear.ai’s differentiated platform offers end-to-end integration with a comprehensive suite of products and capabilities to address unmet, critical needs AI for course of action generation and optimization Portability and modularity to fit into existing
Slide 19: Growth Strategy
GROWTH STRATEGYGROWTH STRATEGY
Slide 20: Multiple Growth Vectors
Multiple Growth Vectors Contracted and near-term opportunities provide visibility into achieving forecasted growth Opportunities for Inorganic Growth and Horizontal Expansion Expand Presence in Commercial Market ▪Continue to identify and acquire Pursue Near-Term ▪Continue recent momentum strategic M
Slide 21: Commercial Go-To-Market Overview & Strategy
Commercial Go-To-Market Overview & Strategy Targeted go-to-market strategy is driving momentum with new and existing customers STRATEGIC INITIATIVES • Onboarding space, transportation, and energy sales teams in Q3 2021E • Actively building channel strategy for space, transportation, and infrastructu
Slide 22: Recent Wins Highlight Growing Momentum
Recent Wins Highlight Growing Momentum Significant recent wins support confidence in 2021E and 2022E revenue projections ▪ Recent notable wins account for over $150M+ in total contract value and include: $150M+ Total Contract Value of • Landmark business analytics contract projected to generate $140
Slide 23: New Strategic Partnership: Virgin Orbit
New Strategic Partnership: Virgin Orbit BigBear.ai has entered into a transformational strategic partnership to solve four complex problems: $350B Size of the Global (1) Economy Today ▪ Process data from every launch to generate interpretable insights in support of effort to reduce time from request
Slide 24: New Strategic Partnership: UAV Factory
New Strategic Partnership: UAV Factory BigBear.ai has entered into a strategic partnership with the 57 manufacturer and designer of unmanned aerial vehicles to: Number of Countries with UAV Factory Clients ▪ Expand BigBear.ai’sdistribution channels and go-to-market strategy by selling BBAI software
Slide 25: Proven Land and Expand Strategy
Proven Land and Expand Strategy We have demonstrated an ability to accelerate growth in our customer relationships as we release products QUADRUPLED REVENUE IN: YEAR 0 TODAY $10M $40M Revenue Revenue 7 Army Years ▪ History of getting a single 6,000 51,000 foothold with a customer Platform Users Plat
Slide 26: Strategic M&A Can Accelerate BigBear.ai's Momentum
Strategic M&A Can Accelerate BigBear.ai’s Momentum ACTIONABLE PIPELINE M&A PHILOSOPHY Pursue additive Technology to 25+ Potential Targets Identified enhance Cross-Sell Opportunities AI / ML Focus Comprises ~50% Target Adjacent Markets to of Targets Accelerate Customer Penetration $385M+ Combined Rev
Slide 27: Financial Highlights
FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTS
Slide 28: BigBear.ai is Established, Flexible, and Scalable
BigBear.ai is Established, Flexible, and Scalable 2022E 2025E Impact Total 40% Revenue $277 $764 CAGR 2022E – 2025E ($M) 75% Analytics Analytics 52% 75% Revenue (%) Revenue (%) by 2025E ~800 bps Adj. EBITDA Adj. EBITDA 13% 21% Margin (%) Margin Expansion by 2025E Refer to Safe Harbor on slides 2 and
Slide 29: Revenue by Type and End Market
Revenue by Type and End Market Revenue mix is anticipated to shift over the projected period such that Analytics will account for 75% of total revenue in 2025E (1) REVENUE BY SEGMENT FUTURE STATE REVENUE BY END MARKET ($ in millions) $764 Cyber & Engineering (“C&E”) Defense Analytics Commercial $550
Slide 30: Gross Profit by Segment
Gross Profit by Segment (1) Gross profit margin is projected to increase over the projected period as revenue mix shifts towards Analytics segment and Commercial end markets (1) FUTURE STATE GROSS PROFIT BY SEGMENT 30% 2025E Gross Profit Margin for (1) C&E 12% 71% 2025E Gross Profit Margin for (1) A
Slide 31: Cash Flow and Adj. EBITDA Detail
Cash Flow and Adj. EBITDA Detail BigBear.ai’s profitable and established operations are projected to generate healthy EBITDA margins and cash flow • Adjusted EBITDA margin expansion is bolstered by the growth in the analytics segment • With a market-tested product in place, BigBear.ai is expected to
Slide 32: Summary Financials – 1H2021A and Full Year Outlook
Summary Financials – 1H2021A and Full Year Outlook Continued growth throughout 2021E despite COVID-related contracting delays (1) Summary Financials Full Year Outlook ($ in millions) ▪ COVID-related delays for select government awards transferred revenue from 1H2021 to 2H2021, as contracts 1H2021A 2
Slide 33: Summary Financials – 1H2021A to 2021E Revenue Bridge
Summary Financials – 1H2021A to 2021E (1)(2) Revenue Bridge $200 Indicates Range $180 for Revenue $48 $185 $160 Guidance $23 $160 $140 $120 $65 $100 $80 $60 $72 $40 $20 $0 Revenue from Contracts Projected Revenue from Project Revenue from 2021E Revenue Awarded in 1H2021A Existing Contracts (Backlog)
Slide 34: Summary Financials – 2022E Revenue Bridge
Summary Financials – 2022E Revenue Bridge $300 $79 $250 $15 $200 $26 $157 $150 $277 $100 $50 $0 2022E Backlog 4Q2021 Anticipated Weighted Pipeline 2022E Revenue (as of 9/15/21) Expected Awards Commercial Contracts ▪ BigBear.ai remains confident in 2022E Revenue projections; including contracts BigBe
Slide 35: Valuation Overview & Transaction Summary
VALUATION OVERVIEW & TRANSACTION SUMMARYVALUATION OVERVIEW & TRANSACTION SUMMARY
Slide 36: Peer Group
Peer Group BigBear.ai’s capabilities position it as a powerful force in the data / analytics infrastructure peer set SELECTED PEERS DATA / ANALYTICS INFRASTRUCTURE COMPARABLES ▪ Operate in the same industry with complementary end markets ▪ Commercial and government exposure ▪ Valued on revenue multi
Slide 37: Benchmarking
Benchmarking Operational benchmarking – revenue growth and gross margin profiles Peer Average: 38.6% 87.5% Peer Median: 31.4% (1) 65.3% 60.6% Total 42.5% Revenue 39.0% 36.9% 34.1% 28.6% 27.8% 25.2% Growth MEDIAN ’22E 19.7% 18.4% (FY’21E – ’25E FY’22E) Peer Average: 73.7% 91.1% Peer Median: 76.8% 80.
Slide 38: Benchmarking (cont'd)
Benchmarking (cont’d) Peer group profitability and Rule of 40 benchmarking Peer Average: 3.3% Peer Median: 3.4% 27.3% 20.8% 16.7% 14.9% 13.0% 6.0% 5.0% Adj. 1.7% n.m. ’25E MEDIAN ’22E EBITDA (2.6%) (3.8%) Margin (FY’22E) (32.7%) Peer Average: 38.5% Peer Median: 34.2% 73.2% 65.4% 61.2% 59.8% 50.3% Ru
Slide 39: Benchmarking (cont'd)
Benchmarking (cont’d) Peer group valuation benchmarking 47.4x Peer Average: 20.5x Peer Median: 16.0x 36.7x 32.1x EV / Revenue 20.0x (FY’22E) 17.1x 14.9x MEDIAN 14.1x 8.4x 8.6x 5.4x 5.6x Source: CapIQ and FactSet; Market data as of August 31, 2021. Refer to Safe Harbor on slides 2 and 3 regarding pro
Slide 40: Benchmarking (cont'd)
Benchmarking (cont’d) BigBear.ai is priced with significant upside potential TRANSACTION PEER (1) VALUE VALUATION Summary of Approach $5,957 ▪ Peer valuation applies range of $5,233 multiples to BigBear.ai’s 2021E and $5,402 2022E management forecasted revenue $4,888 to arrive at an implied enterpri
Slide 41: Overview of GigCapital4, Inc.
Overview of GigCapital4, Inc. OVERVIEW GIGCAPITAL4 LEADERSHIP TEAM • GigCapital4, Inc. (NASDAQ: GIG) is a $358.8M publicly traded Special Purpose (1) Acquisition Company (“SPAC”) ▪ Executive Chairman and Founding Managing Partner of GigCapital Global and all its entities, including GigCapital4 • Gig
Slide 42: Transaction Overview
(1) Transaction Overview OVERVIEW ▪ BigBear.ai to become publicly traded company via merger with GigCapital4 USE OF PROCEEDS ▪ Fueling commercial growth projects, sales and marketing expansion, research and development to accelerate product offerings, and inorganic growth through accretive M&A TRANS
Slide 43: Pro Forma Valuation
(1) PRO FORMA VALUATION Transaction Detail $ IN MILLIONS Share Price $10.00 TRANSACTION HIGHLIGHTS Shares Outstanding (M) 169.7 Equity Value $1,697 ▪ PF Enterprise Value of $1,565M, implying an EV / FY2022E revenue multiple of 5.6x (3) Less: Net Cash (132) ▪ Current BigBear.ai stockholders to retain
Slide 44: Questions and Answers
Questions and AnswersQuestions and Answers
Slide 45: a BIGBEAR.AI
a BIGBEAR.AI z > ASS AK Gre Le St FX
Slide 46: Summary Financials
Summary Financials (1)(2)(3) Fiscal Year Ended December 31, ($ in millions) 2018 2019 2020 2021 2022 2023 2024 2025 (4) Cyber & Engineering $49 $74 $75 $90 $133 $153 $170 $192 (4) Analytics 39 48 64 83 145 235 379 572 Revenue $88 $122 $139 $173 $277 $388 $550 $764 Growth 26% 38% 14% 24% 61% 40% 42%
Slide 47: Thank You
DATA-DRIVEN DECISION DOMINANCE Thank You © 2021 BigBear.ai. All rights reserved | BigBear.ai Proprietary.DATA-DRIVEN DECISION DOMINANCE Thank You © 2021 BigBear.ai. All rights reserved | BigBear.ai Proprietary.