Slide 1: Second Quarter 2022 Results
Second Quarter 2022 Results TRUSTED WHEREVER THE MISSION LEADS August 9, 2022 Q2’22 Earnings Presentation \\ 1
Slide 2: Disclaimers
Disclaimers FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), and Section 27A of the Securities Act of 1933, as amended (the Securities Act), and the Private Securi
Slide 3: Call Participants
Call Participants Chuck Prow Susan Lynch President and Chief Executive Senior Vice President and Chief Officer Financial Officer Q2’22 Earnings Presentation \\ 3
Slide 4: Agenda
Agenda 1 Introducing V2X A leader in Critical Mission Solutions 2 V2X Leading Indicators 3 V2X Second Half 2022 Guidance 4 Vectrus Second Quarter 2022 Financial Results 5 Merger Integration Update Q2’22 Earnings Presentation \\ 4
Slide 5: Introducing V2X, a Leader in Critical Mission Solutions
Introducing V2X, a Leader in Critical Mission Solutions Pro forma 2022 Estimates1 Increased & Enhanced Diversification4 Client Diversification Geographic Diversification ~$3.6B ~$290M Other 18% OCONUS Army 42% CONUS Air Force 41% 58% Revenue Adjusted EBITDA2 19% Navy 22% Contract Type Diversificatio
Slide 6: V2X’s Unique & Comprehensive Capabilities
V2X’s Unique & Comprehensive Capabilities 1945 1975 Founded as ITT Founded by Beech Federal Aerospace Services Capabilities: Supply Chain Management Operations & Logistics Base Operations Security Sustainment Defense Maintenance Services Aerospace Integration & Sustainment
Slide 7: V2X Notable Contract Wins in 2022
V2X Notable Contract Wins in 2022 Naval Test Wing Atlantic AIMD C-12 Navy $850M $250M $165M 7 years, Fixed-Price, New 7 years, Fixed-Price, Recompete 7 years, Fixed-Price, Recompete Air Force Global Strike Spectrum Management KC-130J Command $130M $60M $54M 5 years, Various, New 5 years, Cost-Plus,
Slide 8: V2X Leading Growth Indicators
V2X Leading Growth Indicators Trailing 12-month awards of ~$6 billion Expansion of current contract base remains strong during continuing resolution — Over $500 million of Q2’22 awards tied to expansion from current Vectrus programs — >$300 million of potential future awards related to INDOPACOM gro
Slide 9: V2X Additional Growth Catalysts
V2X Additional Growth Catalysts Operations & Aerospace Training Technology Logistics • Supply Chain Management • • Defense Training • Sensor & Platforms Defense Maintenance • Base Operations • Life Cycle Support • Mission Support Services • Security • • Engineering & Digital Integration & Sustainmen
Slide 10: V2X Second Half 2022 Guidance
V2X Second Half 2022 Guidance1 2H 2022 ($M, except per share data) Guidance Revenue $1,900 - $1,940 Adjusted EBITDA2 $140 - $150 Adjusted Diluted Earnings Per Share2 $1.94 - $2.19 Net Cash Provided by Operating Activities Excluding M&A Costs2,3 $130 - $150 2022 guidance assumptions include: • Capita
Slide 11: V2X Cash Flow Strength and Delevering Profile
V2X Cash Flow Strength and Delevering Profile Net Leverage1 Strong cash flow generation 4.0x Net debt at July 5th of $1.3 ~3.0x billion ~2.0-3.0x Low capex business model ~$12 billion of pro forma backlog2 expected to provide over three years of Pro Forma at Close Pro Forma 2023 YE Target Long-Term
Slide 12: Vectrus Q2’22 Financial Results
Vectrus Q2’22 Financial Results TRUSTED WHEREVER THE MISSION LEADS Q2’22 Earnings Presentation \\ 12
Slide 13: Vectrus Standalone Q2’22 Highlights
Vectrus Standalone Q2’22 Highlights 1 • Revenue of $498M (+6% y/y, +9% seq) • Growth in INDOPACOM continues (9% of — LOGCAP V momentum and world affairs driving solid revenue rev) with expanding footprint in the region performance • Q2 Operating Results: • Supporting contingency efforts for — Operat
Slide 14: Vectrus Expanding in the Pacific & Europe
Vectrus Expanding in the Pacific & Europe INDOPACOM Our position in the Pacific continues to expand in support of mission requirements Vectrus recently assumed responsibility for the Logistics Civil Augmentation Facility in Subic Bay, expected for the next eight years. DoD Budget (GFY’23) allocate
Slide 15: Vectrus Q2’22 Financial Results
Vectrus Q2’22 Financial Results Operating Income & Revenue ($M) Diluted EPS Adj. Diluted EPS1 Adj. EBITDA1 $498.1 $26.6 $1.35 $470.8 $24.7 $1.52 $22.6 $1.41 $0.88 $15.0 Q2'21 Q2'22 Q2’21 Q2’22 Q2'21 Q2'22 Q2'21 Q2'22 Q2’22 Earnings Presentation \\ 15 1 See appendix for reconciliation of non-GAAP mea
Slide 16: Vectrus Cash Flow and Liquidity
Vectrus Cash Flow and Liquidity YTD Operating Cash Net Debt ($M) Flow ($M) Strong Q2’22 operating cash flow generation of $46.0 million YTD Net Cash Provided by Operations of $19.6 million: $19.6 $105.2 • Includes Merger related $14.0 payments of ~$6 million & CARES Act Repayments of $58.4 ~$8 m
Slide 17: Merger Update
Merger Update TRUSTED WHEREVER THE MISSION LEADS Q2’22 Earnings Presentation \\ 17
Slide 18: Integration Governance & Framework
Integration Governance & Framework Culture Match Delivers Unified Integration V2X Integration Dashboard Joint governance structure Established cadence with joint accountability focused on results and synergy achievement Business summits conducted to harmonize processes and accelerate synergy realiza
Slide 19: Integration Timeline and Goals
Integration Timeline and Goals Through – December 2022 • Former Vertex and Vectrus operating units focus on delivering 2022 commitments • Execute integration plans and achieving 2022 synergies March 7, August 1, 2022 January 2023 January 2024 2022 Integration V2X Commercial Full cost synergy Transac
Slide 20: Key Takeaways… Investing with V2X
Key Takeaways… Investing with V2X Increased Diversification1 Client Diversification Differentiated capabilities and robust portfolio of solutions providing full life- cycle support to the most critical & enduring missions Other 18% Army Air Force 41% Geographic, client, and contract diversity with n
Slide 21: Appendix
Appendix TRUSTED WHEREVER THE MISSION LEADS Q2’22 Earnings Presentation \\ 21
Slide 22: Reconciliation Of Non-GAAP Measures/Non-GAAP Definitions
Reconciliation Of Non-GAAP Measures/Non-GAAP Definitions This presentation includes certain non-GAAP financial measures, including EBITDA and Pro forma Adjusted EBITDA. These financial measures are not prepared in accordance with accounting principles generally accepted in the United States and may
Slide 23: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Adjusted Net Income, Adjusted Diluted Earnings Per Share (Non-GAAP Measures) LOGCAP V Amortization of Three Months Ended Three Months Ended M&A, Integration, and Pre-Operational Acquired Intangible July 1, 2022 ($K, except per share data) July 1, 2022 Related Cost
Slide 24: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Adjusted Net Income, Adjusted Diluted Earnings Per Share (Non-GAAP Measures) LOGCAP V Amortization of Three Months Ended Three Months Ended M&A, Integration, and Pre-Operational Acquired Intangible July 2, 2021 ($K, except per share data) July 2, 2021 Related Cost
Slide 25: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Adjusted Net Income, Adjusted Diluted Earnings Per Share (Non-GAAP Measures) LOGCAP V Amortization of Six Months Ended Six Months Ended M&A, Integration, and Pre-Operational Acquired Intangible July 1, 2022 ($K, except per share data) July 1, 2022 Related Costs Le
Slide 26: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures Adjusted Net Income, Adjusted Diluted Earnings Per Share (Non-GAAP Measures) LOGCAP V Amortization of Six Months Ended Six Months Ended M&A, Integration, and Pre-Operational Acquired Intangible July 2, 2021 ($K, except per share data) July 2, 2021 Related Costs Le
Slide 27: Trusted Wherever the Mission Leads
TRUSTED WHEREVER THE MISSION LEADS Q2’22 Earnings Presentation \\ 27