Slide 1: Redwire 101
Redwire 101 August 2023 1. Insert Footnote
Slide 2: Disclaimers
Disclaimers Industry and market data used in this Presentation have been obtained from third-party industry publications and sources as well as from research reports prepared for other purposes. Redwire has not independently verified the data obtained from these sources and cannot assure you of the
Slide 3: Non-GAAP Financial Information
Non-GAAP Financial Information This Presentation contains financial measures that have not been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). These financial measures include Adjusted EBITDA, Pro Forma Adjusted EBITDA, Free Cash Flow, and Comparabl
Slide 4: Redwire 101: Investment Highlights: Pure-Play Space Company With Revenue and Scale
Redwire 101: Investment Highlights: Pure-Play Space Company With Revenue and Scale Proven performance, history and deep relationships with dependable space customers Revenue driven by critical missions for government customers such as NASA, DoD and ESA National security infrastructure and clearances
Slide 5: Redwire 101: The Redwire Mission
Redwire 101: The Redwire Mission is accelerating humanity’s expansion into space by delivering reliable, economical and sustainable infrastructure for future generations (Credit: NASA) Redwire provides the fundamental building blocks of space operations 5
Slide 6: Redwire 101: What Does Redwire Do?
Redwire 101: What Does Redwire Do? Redwire has 3 primary areas of focus . . . 1) Integrated Mission Enabler 2) Exploring, Living, and Working in Space 3) Multinational Mission Support . . . for 3 main customer types • Civil: Civilian space agencies such as NASA and ESA • Commercial: Predominantly ma
Slide 7: Redwire 101: How Does Redwire Do It?
. Redwire 101: How Does Redwire Do It? 1. Integrated Mission 2. Explore, Live and Work in Space 3. Supporting Ambitious, Enabler for the Benefit of Humanity Multinational Missions Power generation, antennas, deployable Microgravity payloads, platforms, and in- International operations and products t
Slide 8: Redwire 101: 1) We are a Key Mission Enabler
Redwire 101: 1) We are a Key Mission Enabler The Building Blocks of Space • Our products are relevant to almost every space Structures mission Power Software • Operating as a merchant supplier across a diverse customer base provides resiliency to our revenue • Our proven products and space heritage
Slide 9: Redwire 101: 2) We are critical for people to explore, live and work in space
Redwire 101: 2) We are critical for people to explore, live and work in space • Provided 11 cameras for the Artemis I space mission around the Moon and currently on contract for Artemis missions 2 through 5 • Provided 6 roll out solar arrays that have been installed on the ISS and announced the awar
Slide 10: Redwire 101: 3) We support ambitious multinational space exploration
. Redwire 101: 3) We support ambitious multinational space exploration • The European Space Agency has approved a 17% increase in their 2023-2025 space budget compared to their last budget cycle • Redwire has ~150 engineering and technical personnel and two engineering facilities with more than 80,0
Slide 11: Redwire Revenue 101: Representative Profile of our Fixed Price Revenue Streams
Redwire Revenue 101: Representative Profile of our Fixed Price Revenue Streams • Redwire revenue is generated through program contracts – with ~80% being fixed price and generally ~2 years in length Launch • Revenue is based on contract program progress with revenue recognized as contract percentage
Slide 12: Backlog Growth Demonstrates the Heritage + Innovation Demand and Differentiation
Backlog Growth Demonstrates the Heritage + Innovation Demand and Differentiation 1 Contracted Backlog Detail ~$3.7B ~$489M $273 Pipeline as of 2023 Year-to-Date submitted bids as June 30, 2023 of June 30, 2023 $162 68.3% $45.6M 1.49x Q2 2023 Q2 2023 LTM Contract Awards Book-to-Bill1 6/30/2022 6/30/2
Slide 13: Appendix: Recent Financial Information
Appendix: Recent Financial Information 13
Slide 14: Accelerating Revenue Growth
Accelerating Revenue Growth 45.6% Increase in LTM revenues to $208.7 for Q2 2023 vs $143.4 for Q2 2022 • 4.3% increase in revenues from Q1 2023 to Q2 2023 Sequential Quarterly Revenues • 63.6% increase in Q2 2023 vs. $70.0 Quarter-to-Date Revenues (in millions) Q2 2022 $60.0 $57.6 $60.1 $53.7 • 24.9
Slide 15: 2023 Year-to-Date Revenues
2023 Year-to-Date Revenues • 31.0% increase over H1 2022, 69.1% Increase over H1 2022 excluding Space NV1 H1 2022 to H1 2023 Revenues • H1 2023 Revenues by customer $125.0 $26.5 $117.7 type were 45.4% from Civil, 33.5% Year-to-Date Revenues (in millions) from Commercial, and 21.0% from $100.0 $21.6
Slide 16: Quarterly Adjusted EBITDA
Quarterly Adjusted EBITDA • Nominal improvement in Q2 2023 vs. Q1 2023 +$8.4M or 207.4% improvement in Adjusted EBITDA in Q2 2023 vs. Q2 2022 • Primarily driven by revenue Quarterly Adjusted EBITDA growth and our "excellence in $5.0 $4.3 $4.4 execution" initiatives that Quarter-to-Date Adjusted EBIT
Slide 17: Quarterly Free Cash Flow and Liquidity
Quarterly Free Cash Flow and Liquidity Q2 2023 Free Cash Flow,1 $1.1M sequential improvement of 107.4% $36.2M Ending liquidity as of June 30, 2023 1 Quarterly Free Cash Flow Quarterly Total Available Liquidity $5.0 $1.1 $60.0 $53.3 Quarter-to-Date Total Liquidity (in Quarter-to-Date Free Cash $2.8 $
Slide 18: Q2 2023 Quarter-to-Date Performance
Q2 2023 Quarter-to-Date Performance Three Months Ended $ Change from prior % Change from prior ($ in thousands, except percentages) June 30, 2023 June 30, 2022 year period year period Revenues $ 60,098 $ 36,728 $ 23,370 64 % Cost of sales 44,194 29,746 14,448 49 Gross margin 15,904 6,982 8,922 128 O
Slide 19: Q2 2023 Year-to-Date Performance
Q2 2023 Year-to-Date Performance Six Months Ended $ Change from prior % Change from prior ($ in thousands, except percentages) June 30, 2023 June 30, 2022 year period year period Revenues $ 117,703 $ 69,595 $ 48,108 69 % Cost of sales 87,582 57,442 30,140 52 Gross margin 30,121 12,153 17,968 148 Ope
Slide 20: Supplemental Non-GAAP Information
Supplemental Non-GAAP Information Adjusted EBITDA and Pro Forma Adjusted EBITDA Adjusted EBITDA and Pro Forma Adjusted EBITDA are not measures of results under Six Months Ended generally accepted accounting principles in the United States. (in thousands) June 30, 2023 June 30, 2022 Adjusted EBITDA i
Slide 21: Supplemental Non-GAAP Information, Continued
Supplemental Non-GAAP Information, Continued i. Redwire incurred acquisition costs including due diligence, integration costs and Three Months Ended additional expenses related to pre-acquisition activity. (in thousands) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 ii. Redwire recorded adjustments relate
Slide 22: Supplemental Non-GAAP Information, Continued
Supplemental Non-GAAP Information, Continued Six Months Ended Free Cash Flow (in thousands) June 30, 2023 June 30, 2022 Free Cash Flow is computed as net cash provided by Net cash provided by (used in) operating activities $ (11,204) $ (15,584) (used in) operating activities less capital expenditure
Slide 23: Key Performance Indicators
Key Performance Indicators Contracted Backlog We view growth in backlog as a key measure of our business growth. Contracted backlog represents the estimated dollar value of firm funded executed contracts for which work June 30, December 31, (in thousands) 2023 2022 has not been performed (also known