Virgin Galactic Holdings, Inc. · NYSE:SPCE
Virgin Galactic — FY2020 Earnings Presentation
27 slides from Virgin Galactic's earnings presentation, Feb 25, 2021
Slide 1: Fourth Quarter and Full Year 2020 Investor Update
FOURTH QUARTER AND FULL Y E A R 2 0 2 0 I N V E S T O R U P D AT E 02.25.2021
Slide 2: Disclosures
DISCLOSURES FORWARD -L OO K IN G STATEM E N T S 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 flig
Slide 3: Michael Colglazier, CEO
MICHAEL COLGLAZIER CEO FOURTH QUARTER AND FULL YEAR 2020 INVESTOR UPDATE P — 3
Slide 4: 2020 Achievements
2020 ACHIEVEMENTS ✓ Transitioned spaceflight operations to ✓ Future Astronaut community Spaceport America, New Mexico remained at approximately 600 ✓ Conducted two successful ✓ Strengthened the balance sheet glide flights with successful fundraise ✓ Cleared seven additional FAA ✓ Conducted test flig
Slide 5: Flight Test Program Update
FLIGHT TEST P R O G R A M U P DAT E FIRST FLIGHT SECOND FLIGHT THIRD FLIGHT ▪ Rocket-powered spaceflight with two pilots onboard ▪ Aim to complete data for final two FAA verification reports ▪ Revenue-generating payloads under NASA Flight Opportunities Program FOURTH QUARTER AND FULL YEAR 2020 INVES
Slide 6: Flight Test Program Update
FLIGHT TEST P R O G R A M U P DAT E FIRST FLIGHT SECOND FLIGHT THIRD FLIGHT ▪ Rocket-powered spaceflight ▪ Full cabin of mission specialists and two pilots onboard FOURTH QUARTER AND FULL YEAR 2020 INVESTOR UPDATE P — 6
Slide 7: Flight Test Program Update
FLIGHT TEST P R O G R A M U P DAT E FIRST FLIGHT SECOND FLIGHT THIRD FLIGHT ▪ Rocket-powered spaceflight ▪ Sir Richard Branson’s first spaceflight ▪ Demonstrate private astronaut experience FOURTH QUARTER AND FULL YEAR 2020 INVESTOR UPDATE P — 7
Slide 8: First Test Flight
FIRST TEST FLIGHT ▪ December 12, 2020: ▪ February 2021: o Flight delivered learnings and success, despite o Uncovered additional EMI impacts not reaching space during pre-flight preparations for o Demonstrated strong, safety-first culture and February 13th flight safety of the spaceflight system o A
Slide 9: Markets
MARKETS ▪ Our spaceflight system is built to serve three markets: o Private Astronaut o Microgravity Research (both human tended and payload only) o Professional Astronaut training ▪ Announced the confirmation of Italian Air Force Flight o Demonstrates our capabilities for both human tended research
Slide 10: Slide 10
Slide 11: Fleet Expansion
FLEET EXPANSION ▪ Rollout of second spaceship, SpaceShip III, on March 30, 2021 ▪ Second spaceship starts ground testing after rollout and goes into flight test in the summer ▪ Begin assembly of second vehicle in the SpaceShip III class ▪ Implement a series of vehicle enhancements in preparation for
Slide 12: Scaling Manufacturing and Build to Put Plan into Action
SCALING MANUFACTURING AND BUILD TO PUT PLAN INTO ACTION ▪ Pivot from R&D to manufacturing to achieve multi- year effort that will target flying 400 flights per year, per spaceport o Investing in manufacturing facilities, processes, and partnerships ▪ Commence design efforts on new class of Spaceship
Slide 13: Aerospace Leadership
AEROSPACE LEADERSHIP Swami Iyer Stephen Justice President of Aerospace Systems Vice President of Engineering ▪ Over 20 years of experience in commercial and highly ▪ 40 years at Lockheed Martin Skunk Works® classified aerospace, defense, and cyber industries ▪ Leads and grows a world-class team of E
Slide 14: Introducing Doug Ahrens
INTRODUCING DOUG AHRENS CHIEF FINANCIAL OFFICER ▪ Multiple prior CFO roles at both Public and Private Companies ▪ Deep experience helping manufacturing companies grow and scale ▪ Capital Markets and M&A expertise FOURTH QUARTER AND FULL YEAR 2020 INVESTOR UPDATE P — 14
Slide 15: World-Class Advisors to Help Guide Commercial Efforts
WORLD-CLASS ADVISORS TO HELP GUIDE COMMERCIAL EFFORTS Joe Rohde Blair Rich Geoff Goodman Experience Architect Marketing and Brand Strategy Business Development and Revenue Planning ▪ Previously spent 40 years at Walt ▪ Previously President of Worldwide Disney Imagineering Marketing, Warner Bros. ▪ P
Slide 16: Space Advisory Board
SPACE ADVISORY BOARD ▪ Launched Virgin Galactic Space Advisory Board o Provide advice to senior management on commercial spaceflight service, next generation vehicles, and magnifying the positive impact of democratizing space o Serve as a forum to discuss technical, operational and experiential best
Slide 17: Financials
FINANCIALS FOURTH QUARTER AND FULL YEAR 2020 INVESTOR UPDATE 17 P P— —
Slide 18: Financial Results
F I N AN CI AL R ES U LTS FOURTH QUARTER FULL YEAR Ended December 31, 2020 Ended December 31, 2020 Net loss of $74 million, compared to $77 million Net loss of $273 million, compared to $211 million net loss in Q3 2020 net loss in 2019 Adjusted EBITDA(1) totaled $(60) million, compared to Adjusted E
Slide 19: Capital Allocation
C A P I TA L A L LO C AT I O N CAPITAL ALLOCATION PRIORITIES CASH & CASH EQUIVALENTS ▪ Maintain a strong balance sheet and cash position ▪ Invest organically for growth ▪ Opportunistically access the capital markets $742M $666M o Raised over $440 million in net proceeds via secondary stock offering
Slide 20: Summary
S U M M A RY FOURTH QUARTER AND FULL YEAR 2020 INVESTOR UPDATE 20 P P— —
Slide 21: In Summary...
IN SUMMARY… ▪ Fleet Readiness ▪ Fleet Expansion ▪ Astronaut & Consumer Experiences FOURTH QUARTER AND FULL YEAR 2020 INVESTOR UPDATE P — 21
Slide 22: Q&A
Q&A FOURTH QUARTER AND FULL YEAR 2020 INVESTOR UPDATE 22 P P— —
Slide 23: Appendix
APPENDIX FOURTH QUARTER AND FULL YEAR 2020 INVESTOR UPDATE 23 P P— —
Slide 24: Reconciliation to Non-GAAP Measures
R EC O N C I L I AT I O N TO N O N - G A A P M EA S U R ES (Amounts in thousands) THREE MONTHS ENDED YEAR ENDED December 31, 2020 September 30, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Net Loss $ (74,018) $ (76,802) $ (72,799) $ (273,035) $ (210,935) Income tax (benefit) expense (2
Slide 25: Reconciliation to Non-GAAP Measures
R EC O N C I L I AT I O N TO N O N - G A A P M EA S U R ES (Amounts in thousands) THREE MONTHS ENDED YEAR ENDED December 31, 2020 September 30, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Selling, general, and administrative expenses $ 32,854 $ 30,936 $ 37,447 $ 116,592 $ 82,166 Cash
Slide 26: Reconciliation to Non-GAAP Measures
R EC O N C I L I AT I O N TO N O N - G A A P M EA S U R ES (Amounts in thousands) THREE MONTHS ENDED YEAR ENDED December 31, 2020 September 30, 2020 December 31, 2020 December 31, 2019 Net cash used in operating activities $ (70,096) $ (54,976) $ (233,159) $ (209,111) Capital expenditures (3,540) (3
Slide 27: Thank You
| THANK YOU | SSS nat, SS
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