Rocket Lab Corporation · NASDAQ:RKLB
Rocket Lab — Rocket Lab USA — SPAC Merger (March 2021)
40 slides from Rocket Lab's SPAC merger presentation, March 2021
Slide 1: Space Is Open for Business
Rocket Lab USA SPACE IS OPEN FOR BUSINESS Investor Presentation March 2021 rocketlabusa.com
Slide 2: Disclaimer and Forward Looking Statements
DISCLAIMER AND FORWARD LOOKING STATEMENTS This presentation (this “Presentation”) was based on Vector’s and Rocket Lab’s current are not undertaking any obligation to update and unanticipated events may occur that non-GAAP measures to compare Rocket statement, the proxy statement/prospectus prepared
Slide 3: From the Founder
FROM THE FOUNDER Space has defined some of humanity’s greatest achievements, and it continues to shape our future. I’m motivated by the enormous impact we can have on Earth by making it easier to get to space and to use it as a platform for innovation, exploration, and infrastructure. We go to space
Slide 4: Today's Presenters
Today’s Presenters ROCKET LAB VECTOR ACQUISITION CORPORATION Peter Beck Adam Spice Alex Slusky Founder, CEO, Chief Engineer Chief Financial Officer CEO, Vector Acquisition Corporation CIO, Founder, and Managing Director, Vector Capital 4 Rocket Lab USA
Slide 5: Vector Capital Overview
Vector Capital Overview OUR PEDIGREE Our Value Add for Rocket Lab Tech-only Investment Fund Executing Accretive Acquisitions $320M SPAC 25-Year Track Record Sales, Operations, Strategy HIGHLIGHTS $3B+ 40+ 100+ 39% Capital Under Investing and Operating Tech Companies Gross IRR Since Management Profes
Slide 6: Contents
CONTENTS SECTION SECTION SECTION SECTION 01 Rocket Lab Overview 02 Launch 03 Space Systems 04 Transaction Overview & Introduction & Financials 6 Rocket Lab USA
Slide 7: Rocket Lab Overview & Introduction
SECTION 01 ROCKET LAB OVERVIEW & Introduction 7 Rocket Lab USA Section 1
Slide 8: Only two private companies have delivered regular access to orbit
In the history of spaceflight, only two private companies have delivered regular and reliable access to orbit & 8 Rocket Lab USA Section 1
Slide 9: Rocket Lab at a Glance
Rocket lab at a glance A vertically integrated provider of small launch services, satellites and spacecraft components Delivering end-to-end IN UNDER 6 YEARS space solutions Launch: Proven rocket delivering dedicated access to orbit for 3+ years Space Systems: Manufacturing satellites and best-in-cl
Slide 10: Rocket Lab is way out in front
Rocket Lab is way out in front ELECTRON LIFT-OFF LAUNCH COMPLEX 1 Uniquely compelling investment opportunity in a generational space leader › Unprecedented commercial investment and government expenditures are driving Large, Rapidly rapid growth in the space economy Growing Market › Market forecast
Slide 11: $350B+ TAM forecast to grow to $1.4T by 2030
$350B+ TAM forecast to grow ROCKET LAB PRODUCTION COMPLEX to $1.4T by 20301 Uniquely positioned to exploit a growing market PHOTON 1 2 3 Launch SPACE SYSTEMS SPACE APPLICATIONS Electron & Neutron Photon TAM ~$320B1 TAM ~$10B2 TAM ~$20B2 › TAM growth driven › S ignificant growth in › Market growth dr
Slide 12: World Leading Technology
WORLD LEADING TECHNOLOGY Large technology moat AUCKLAND, NEW ZEALAND PRODUCTION COMPLEX 1 st 3D printed 1 st Electric-pump 1 st Fully carbon 1 st And only rocket engine -fed rocket composite private orbital engine launch vehicle launch site PHOTON ENCAPSULATION LAUNCH COMPLEX 1, 2020 LAUNCH COMPLEX
Slide 13: Vertically Integrated Space Company
vertically integrated space company From raw material to orbit 1 2 1 2 5 6 Rocket Lab HQ inclair S Auckland Mission Control Space Systems Interplanetary Production New Zealand Mission Control U.S. by Rocket Lab Complex 3 4 5 6 3 4 7 8 Global Tracking aunch L ropulsion Test P aunch L Systems Complex
Slide 14: Proven Team Led by Industry Veterans
PROVEN TEAM led by industry veterans EXECUTIVE LEADERSHIP Peter Beck Adam Spice Shaun O’Donnell Lachlan Matchett Founder, CEO, Chief Engineer Chief Financial Officer EVP – Global Operations VP – Propulsion Shaun D’Mello Doug Sinclair Lars Hoffman Shane Fleming, VP – Global VP – Launch Space Systems
Slide 15: Our Execution History
Our execution MAHIA, NEW ZEALAND ELECTRON LIFT-OFF history We do what we say we will do Launch 6 YEARS 2014 2018 2020 1st venture NZ launch 1st flight Factory built First NRO U.S. launch Successful 4th most Monthly launch capital site built to orbit to support 1 launch site built reuse mission frequ
Slide 16: Launch
SECTION 02 LAUNCH 16 Rocket Lab USA Section 2
Slide 17: Dedicated Small Launch Is Critical
dedicated small launch is critical Not all space access is the same Rocket Lab delivers the first dedicated ride to orbit for small satellites, providing customers control over launch schedule and enabling tailored orbits that cannot be matched by large rocket rideshare Launch Frequent On demand lau
Slide 18: Meet Electron
Meet electron LAUNCH COMPLEX 1 Fairing ELECTRON SIGNIFICANT Payload plate technology Kick stage moats SECOND stage RUTHERFORD VACUUM ENGINE ELECTRON ON LAUNCH PAD INTERSTAGE 97 1st 132 180 LAUNCH COMPLEX 1 Satellites Carbon Launch 3D printed deployed to composite opportunities engines orbit to date
Slide 19: 2nd Most Frequently Launched Rocket in the U.S.
2nd most frequently launched rocket in the U.S. 5 1 SPACEX 2 ROCKET LAB MAY 2017 JANUARY 2018 NOVEMBER 2018 DECEMBER 2018 MARCH 2019 MAY 2019 4th most frequent launcher globally JUNE AUGUST OCTOBER DECEMBER JANUARY JUNE 2019 2019 2019 2019 2020 2020 1 CHINA 4 ROCKET LAB 2 RUSSIA 5 EUROPE 3 SPACEX 6
Slide 20: Rocket Lab Scaled to a Monthly Launch Cadence
only two private companies are delivering regular and reliable access to orbit Rocket Lab scaled to a Rocket Lab is the monthly Small Launch LEADER launch Successful Satellites Capital In-house cadence faster Company Orbital Delivered Raised Satellite Launches to Orbit to Date1 Program Rocket Lab 16
Slide 21: Our Customers
Our customers 18 missions, 97 satellites deployed ~50% COMMERCIAL for more than 20 organizations 2 Missions 1 Mission 1 Mission 2 Missions 1 Mission (upcoming) 1 Mission 3 Missions 1 Mission 4 Missions 2 Missions 3 Missions 1 Mission 1 Mission 1 Mission 1 Mission 2 Missions ~20% CIVIL ~30% DEFENSE 2
Slide 22: State of the Art Manufacturing
STATE OF THE ART MANUFACTURING AUCKLAND, NEW ZEALAND PRODUCTION COMPLEX Production facilities capable of producing a rocket every week LONG BEACH, U.S. PRODUCTION HQ R&D and Extensive ll production A ~90% vertically manufacturing automation incl. scaling integrated. Engines, facilities across 3D pri
Slide 23: Unrivaled Launch Infrastructure
Unrivaled launch infrastructure 3 launch pads across 2 countries MAHIA, NEW ZEALAND LAUNCH COMPLEX 1 Launch Complex 1 New Zealand Launch Complex 2 Virginia, U.S. 132 launch slots Critical national Dedicated annually (more than infrastructure asset integration and all U.S. ranges for U.S. government
Slide 24: Reusability: The Key to Launch Frequency
REUSABILITY THE KEY TO LAUNCH FREQUENCY ELECTRON RECOVERY TESTING NOVEMBER 2020 Electron is the only reusable orbital-class small rocket One of only two Components Enables First re-flight companies to from first higher launch of a full booster successfully bring recovered frequency scheduled back an
Slide 25: Small Launch Was the Beginning
Small Launch was the beginning The market needs a constellation LAUNCHER 83% of the small satellites launched by 2028 will be constellation missions1 Example: Telesat Lightspeed broadband constellation2 1 2 3 4 8t There is currently no commercial Constellation satellites need to be An analysis of la
Slide 26: Next Step: Neutron
Next Step: 63M NEUTRON 98% NEW ROCKET DEVELOPMENT ELECTRON & NEUTRON CLASS 8-Ton PAYLOAD CAPACITY › Rocket Lab solved small launch with Electron 40M Rocket Lab ›N eutron solves medium launch can lift 98% of all satellites forecast to launch through 20291 Tailored for Highly disruptive lower Direct c
Slide 27: Space Systems
SECTION 03 SPACE SYsTEMS 27 Rocket Lab USA Section 3
Slide 28: Space Systems Mandate
Space Systems MANDATE 1 Satellites PHOTON PATHFINDER 1 as a Service AUGUST 2020 From LEO constellations to high-complexity deep space and interplanetary missions 2 Satellite COMPONENTS Anything that goes to space should have a Rocket Lab logo on it 3 SPACE APPLICATIONS PHOTON - CAPSTONE Uniquely pos
Slide 29: Photon: Satellites as a Service, Low Earth Orbit
SATELLITES AS A SERVICE PHOTON: LOW EARTH ORBIT PHOTON FIRST LIGHT MISSION Customers no longer have to build their own satellite. They can buy a launch, satellite, ground services and AUGUST 2020 on-orbit management in a turn-key package Operational Photon Every time Rocket Lab Forms the satellite s
Slide 30: Photon: Interplanetary Spacecraft as a Service
spacecraft AS A SERVICE PHOTON: Interplanetary FOR NASA CAPSTONE LUNAR MISSION 2021 PHOTON INTERPLANETARY SPACECRAFT Rocket Lab goes everywhere in the solar system. Interplanetary Photon is a high-energy stage capable of going to the Moon, planets, asteroids and beyond 1 No other small, Photons can
Slide 31: Venus, Moon and Mars Interplanetary Missions
interplanetary missions Missions awarded and spacecraft developed first to DISRUPTING Displacing the moon THE MARKET LEGACY SPACE VENUS MOON MARS Awarded NASA Rocket Lab’s Private mission CAPSTONE mission mission to Venus to to Mars to the moon search for life Launching 2024 Launching 2021 Launching
Slide 32: Satellite Components
Satellite Components Mission-critical components for small and mega constellations Solar Panels Reaction Wheels Everything that goes to space should have a Rocket Lab logo on it Secures supply Strengthened by Disruptive high- Torque Rods Fibre Optic Network Switches chain for Rocket the acquisition
Slide 33: Uniquely Positioned to Create a New Multi-Billion-Dollar Business Vertical
Uniquely positioned to create a new multi-billion-dollar business vertical Rocket Lab is in a unique position to complete the final move up the value chain to provide data and services to the market by leveraging Electron, Neutron, and Photon, further unlocking the ~$1.4T TAM1 by 2030 Rocket Lab’s i
Slide 34: Transaction Overview & Financials
SECTION 04 Transaction Overview & Financials 34 Rocket Lab USA Section 4
Slide 35: Transaction Overview
Transaction overview ›F ully diluted pro forma enterprise value Sources $M Pro Forma Valuation of $4.1B, representing 5.4x 2025E Existing Rocket Lab Shareholders 3,960 Share Price at Closing $10.00 revenue of $749M Vector SPAC Cash in Trust1 320 PF Shares Outstanding (M) 4, 5, 6 482.7 ›E xisting Roc
Slide 36: Financial Model Summary: Revenue
FINANCIAL MODEL SUMMARY Historical and projected revenue › Current bookings for 2021 represent 90% of forecast revenue1 Space Systems ($M) $1,571 Launch ($M) ›E xisting customer relationships, frequency of repeat business and active opportunity pipeline of ~$2.2B provide confidence in long-term plan
Slide 37: Financial Model Summary: Adjusted EBITDA and UFCF
FINANCIAL MODEL SUMMARY Historical and projected adjusted EBITDA ($M) ›A djusted EBITDA breakeven is $505 expected in 2023E with significant $340 EBITDA ramp thereafter as the company scales operations $168 $119 ($32) ($24) ($36) ($48) ($20) $26 2018 2019 2020E 2021E 2022E 2023E 2024E 2025E 2026E 20
Slide 38: Highly Compelling Opportunity
highly compelling OPPORTUNITY $74.0 › R ocket Lab represents a unique opportunity for public investors to invest in the market-leading small launch and space systems company $4.1 $3.2 $2.3 $2.2 $1.2 $2.1 = TEV ($B) = Current TEV ($B) Total payload deployment DATA NOT revenue to date1 $0 $0 $0 $105M
Slide 39: Valuation and Operational Benchmarking
valuation and operational benchmarking Leading Technology SPACs SPACE SPACs TEV ($B): $4.1 $8.6 $8.8 $23.6 $3.4 $4.4 $8.4 $1.4 $3.2 $2.2 $2.1 TEV / 2025E Revenue 18.0x MEDIAN: 7.4X MEDIAN: 2.1x 11.6x 8.9x 7.4x 5.4x 6.6x 1 .7x 2.5x 2.1x 1.1x 0.8x 1 2 1 3 1 1 1 1 Revenue CAGR 67.6% 149.8% 68.6% 807.2%
Slide 40: For more information watch the Rocket Lab story
PLAY For more information watch the Rocket Lab story here VIDEO