Slide 1: Fourth Quarter & Full-Year 2023 Results
Fourth Quarter & Full-Year 2023 Results TRUSTED WHEREVER THE MISSION LEADS March 5, 2024 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: V2X for Everyone
V2X for Everyone Integrity, Professionalism, Respect, Responsibility Leveraging diversity to drive business outcomes. ~16,000 Total Global Employees Employees who Employees who Employees who Employees who self- Employees who disclose personal self-identify as a self-identify as a identify as a perso
Slide 4: Transforming to Lead an Evolving Market
Transforming to Lead an Evolving Market 2020* 2023 2020* 2023 Aerospace Solutions Revenue $1.4B $4.0B Other Army Other Army 41% 5% 69% 14% Air Force Adj. EBITDA1 $56M $294M 21% Air Force 14% Navy Navy 31% 5% Operating $64M $188M US 24% Europe US 58% Cash Flow Europe 5% 10% Asia Asia 7% 1% Backlog $5
Slide 5: Q4’23 and Full-Year Highlights
Q4’23 and Full-Year Highlights $1.04B • FY’23 revenue +8% y/y to $4.0B; Q4’23 revenue +6% y/y to $1.0B • INDOPACOM growth of 31% y/y in Q4’23 and 18% in CENTCOM Q4’23 Revenue 1 1 • FY’23 Adjusted EBITDA of $294M; Q4’23 Adjusted EBITDA of $82M • 1 Strong YTD adjusted operating cash flow of $159M; Rec
Slide 6: Foreign Military Sales (FMS) Gaining Traction
Foreign Military Sales (FMS) Gaining Traction Foreign Military Sales Our multi-year campaign and strategy to grow Foreign Military Sales is Campaign gaining traction and yielding favorable results Strategy: Recently selected to start the transition for our largest FMS opportunity to - Leverage geogr
Slide 7: Positive Leading Growth Indicators
Positive Leading Growth Indicators 1 Backlog Provides solid topline visibility ~$12.8B 2 Bids Supports further >$9.0B Submitted backlog growth 3 NTM Enables future organic revenue ~$14.9B Pipeline growth 4 Limited Solidifies revenue <5%1 Recompetes base and reduces risk 1. Based on 2024 revenue guid
Slide 8: Q4’23 Financial Results
Q4’23 Financial Results Revenue ($M) Adjusted EBITDA1 ($M) +6% Revenue $1,040.3 $82.3 $82.1 $978.2 Q4'22 Q4'23 Q4'22 Q4'23 Adj. EBITDA 7.9% margin1 Adj. EPS1 Adj. OCF 1,2 ($M) $75.9 $1.22 $0.97 Adj. NI 195% Conversion1,3 $4.5 Q4'22 Q4'23 Q4'22 Q4'23 1 See appendix for reconciliation and definitions
Slide 9: FY’23 Financial Results
FY’23 Financial Results Revenue +8% Revenue Revenue ($M) Adjusted EBITDA1 ($M) Adj. EBITDA $3,669.6 $3,963.1 $278.0 $293.9 Adj. EBITDA 7.4% margin margin1 1 1 PF'22 FY'23 PF'221 FY'23 Adj. NI 135% Conversion1,2 1 See appendix for reconciliation and definitions of non-GAAP measures 9 2 FY’23 adjusted
Slide 10: Momentum Achieving Leverage Target
Momentum Achieving Leverage Target 4.0x 3.7x Net leverage ratio1,2 at 3.3x 3.3x ≤ 3.0x Net Leverage ratio1 improved by 0.4x in 2023 Driven by net debt reduction of $137.1M in 2023 Mid-term target of 2.0-3.0x net leverage ratio1 Merger Q4'22 Q4'23 2024E Close Clear Path to Deleveraging ≤ 3.0x in 2024
Slide 11: 2024 Guidance
2024 Guidance 2024 2024 ($M, except per share data) Guidance Mid-Point Revenue $4,100 - $4,200 $4,150 Adjusted EBITDA1 $300 - $315 $308 Adjusted Diluted Earnings Per Share1 $3.85- $4.20 $4.03 Adjusted Net Cash Provided by Operating $145 - $165 $155 Activities1 2024 guidance assumptions include: • Ca
Slide 12: Creating Value for Shareholders
Creating Value for Shareholders V2X Value Creation Flywheel generates shareholder value through profitable growth, strong operating cash flow, low capex, and disciplined capital management 1 Continued conversion of backlog Generate EBITDA and profit into revenue growth from execution of current
Slide 13: Appendix
Appendix TRUSTED WHEREVER THE MISSION LEADS 13
Slide 14: Key Performance Indicators and Non-GAAP Measures
Key Performance Indicators and Non-GAAP Measures This presentation includes certain non-GAAP financial measures, including adjusted net income, adjusted diluted earnings per share, adjusted operating income, adjusted EBITDA, adjusted EBITDA margin, pro forma revenue and adjusted net cash provided by
Slide 15: Reconciliation Of Non-GAAP Measures
Reconciliation Of Non-GAAP Measures ($K, except per share data) Three Months Ended Twelve Months Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Revenue $ 1,040,307 $ 978,167 $ 3,963,126 $ 2,890,860 Net income (loss) $ (492) $ (10,619) $ (22,573) $ (14,330) Plus: Income
Slide 16: Trusted Wherever the Mission Leads
TRUSTED WHEREVER THE MISSION LEADS 16