Rocket Lab Corporation · NASDAQ:RKLB
Rocket Lab — Rocket Lab USA — SPAC Merger (August 2021)
64 slides from Rocket Lab's SPAC merger presentation, Aug 3, 2021
Slide 1: Rocket Lab USA: Space Is Open for Business
Rocket Lab USA SPACE IS OPEN FOR BUSINESS Investor Presentation August 2021 rocketlabusa.comRocket Lab USA SPACE IS OPEN FOR BUSINESS Investor Presentation August 2021 rocketlabusa.com
Slide 2: 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 3: Disclaimer and Forward Looking Statements
DISCLAIMER AND FORWARD LOOKING STATEMENTS This presentation (this “Presentation”) was from the forward-looking statements in the owners of such trademarks, copyrights, represents Rocket Lab’s future operations Non-GAAP Financial Measures. The financial relevant documents filed or that will be filed
Slide 4: Today's Presenters
Today’s Presenters Peter Beck Adam Spice Shaun O'Donnell Lars Hoffman Founder, CEO, Chief Engineer Chief Financial Officer EVP – Global Operations SVP – Global Launch Services Shaun D'Mello Ehson Mosleh Richard French David Ramazetti Director – Business Development and VP - Launch Chief Engineer – S
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 SECTION 01 02 03 04 05 Rocket Lab Overview Launch Space Systems Vertical Integration Transaction Overview & Introduction & Financials 6 Rocket Lab USA CONTENTS SECTION SECTION SECTION SECTION SECTION 01 02 03 04 05 Rocket Lab Overview Launch Space Systems Ver
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 1In 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 ND 20 3 2 2 8 104 Space Systems: Manufacturing satelli
Slide 10: Rocket Lab is way out in front
Rocket Lab is way out in front 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 1 › M arket forecast to grow to $1.4T by 2030 › One o
Slide 11: $350B+ TAM forecast to grow to $1.4T by 2030
$350B+ TAM forecast to grow 1 to $1.4T by 2030 Uniquely positioned to exploit a growing market 1 2 3 Launch SPACE SYSTEMS SPACE APPLICATIONS 1 Electron & Neutron Photon TAM ~$320B 2 2 TAM ~$10B TAM ~$20B › TAM growth driven › S ignic fi ant growth in › Market growth driven by historic levels small s
Slide 12: World Leading Technology
WORLD LEADING TECHNOLOGY Large technology moat st st st st 1 1 1 1 3D printed Electric-pump Fully carbon And private rocket engine -fed rocket composite orbital engine launch vehicle launch site ROCKET Unique Only FIRST that converts Kick Stage Reusable Private to a satellite enabling small launch i
Slide 13: 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 Lars Hoffman Estelle Curd Jennifer Jeffries Director of People & Culture (US) VP
Slide 14: Our Execution History
Our execution 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 frequent cadence into raised rocket per we
Slide 15: Launch
SECTION 02 LAUNCH 15 Rocket Lab USA Section 2SECTION 02 LAUNCH 15 Rocket Lab USA Section 2
Slide 16: 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 Frequent Launch launch On dem
Slide 17: Meet Electron
Meet Fairing electron Payload plate SIGNIFICANT technology Kick stage moats SECOND stage RUTHERFORD VACUUM ENGINE INTERSTAGE st 104 1 132 200 Satellites Carbon Launch slots 3D printed deployed to composite possible engines FIRST STAGE orbit to date orbital launch every year delivered vehicle in acro
Slide 18: Kicking the Space Junk Habit
Kicking The Space Junk Habit Responsible orbital deployment with the Kick Stage After deploying customer satellites, the Kick Stage can lower its orbit and speed up its own deorbiting With more Rocket stage Enables: Standard satellites debris is a large on every › Plane changes and mega contributor
Slide 19: 2nd most frequently launched rocket in the U.S.
α - X i r t S | e v i t c e p s n y S r o c k 2nd most frequently launched rocket in the U.S. 5 1 SPACEX 2 ROCKET LAB MAY JANUARY NOVEMBER DECEMBER MARCH MAY 2017 2018 2018 2018 2019 2019 4th most frequent launcher globally JUNE AUGUST OCTOBER DECEMBER JANUARY JUNE JULY 2019 2019 2019 2019 2020 2020
Slide 20: Our Customers
Our customers ~50% 20 missions, 104 satellites deployed C O M M E R C IAL 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% ~30% C I VI
Slide 21: Unrivaled launch infrastructure
Unrivaled launch infrastructure 3 launch pads across 2 countries Launch Complex 1 New Zealand Launch Complex 2 Virginia, U.S. Potential for 132 slots Critical national Dedicated annually (more than infrastructure asset integration and all U.S. ranges for U.S. government control facilities 1 combined
Slide 22: Strong Growth Strategy: Launch
Strong growth strategy Launch Qualie fi d to compete for USG multi year launch programs › D epartment of Defense (DoD) ($968M* opportunity over 10 years) › National Reconnaissance Ofc fi e (NRO) ($700M* opportunity over 10 years) › NASA ($300M* opportunity over 5 years) Capabilities address Space De
Slide 23: Pipeline: future launch opportunities
Pipeline – future launch opportunities Sum: $2.4B Prospecting 1.5B Qualica fi tion 624M 244M Proposal Negotiation Review 50M 23 Rocket Lab USA Section 2 FLIGHT 18 'ANOTHER ONE LEAVES THE CRUST' MAHIA, NEW ZEALAND LAUNCH COMPLEX 2 VIRGINIA, U.S.
Slide 24: Reusability: Boosting Profitability
REUSABILITY Boosting profitability 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 orbital- booster already without for 2022 cl
Slide 25: Investing in our people and communities
Investing in our people and communities Creating career and education opportunities Supporting local causes Championing regional development LOCAL SCHOOL VISIT AT LAUNCH COMPLEX 1 MAHIA, NEW ZEALAND $80K 100+ $20k $200k awarded in volunteer hours annual sponsorships raised for scholarships for commu
Slide 26: Small Launch was the beginning; the market needs a constellation launcher
Small Launch was the beginning The market needs a constellation LAUNCHER of the small satellites launched by 2028 will be 1 83% constellation missions 2 Example: Commercial Broadband Constellation 1 2 3 4 8t There is currently Constellation An analysis of large 220 20 11 7.7 no commercial satellites
Slide 27: Next Step: Neutron solves medium launch
Next Step Rocket Lab solved small launch with Electron Neutron solves medium launch 27 Rocket Lab USA Section 2Next Step Rocket Lab solved small launch with Electron Neutron solves medium launch 27 Rocket Lab USA Section 2
Slide 28: Electron and new rocket development: Neutron
63M Next Step 98% E LECT RO N & NEW ROCKET DEVELOPMENT N E UT RO N C L AS S 8-Ton PAYLOAD CAPACITY › Rocket Lab solved small launch with Electron 40M Rocket Lab › Neutr on solves medium launch can lift 98% of all satellites forecast to launch through 1 2029 Tailored for Anticipated highly Direct com
Slide 29: Cost-effective launch for mega-constellations and human spaceflight
Cost-effective launch for mega-constellations and human spaceflight Highly re-usable Low-cost Leveraging platform with materials and proven low ongoing manufacturing technology. OPEX methods for Low risk expendable development elements roadmap 29 Rocket Lab USA Section 2Cost-effective launch for meg
Slide 30: Leveraging existing technology and experience
Leveraging existing technology and experience Hardware rich Agile systems Test like you fly, program – engineering, safety fly like you test – concurrent and mission barrage of testing design, build assurance approach early and often and test for foresight on end-customer requirements from day 1 30
Slide 31: Program Development Progressing at Pace
Program Development Development Progressing Breakdown at Pace Large Infrastructure (Test & Launch) Avionics (HW, GNC, SW) Test & Launch Ops. Several critical technologies New developments leverage and capability scale well rich flight proven heritage with size of launch vehicle + Propulsion Telemetr
Slide 32: Proven execution history at Wallops
Proven execution history at Wallops Demonstrated track record of securing funds and delivering on large infrastructure projects Launch pad constructed in less than 11 months Integration & control facillity designed and built in 8 months Rocket Lab is well integrated with State of Virginia, Virginia
Slide 33: US Production, Assembly, Integration and Test Facility
US PRODUCTION, Assembly, Integration and Test FACILITY Aggressive and Expect to Facility competitive break ground expected site selection in Q4 2021 to be ready process nearing to support completion operations by Q4 2022 33 Rocket Lab USA Section 2US PRODUCTION, Assembly, Integration and Test FACILI
Slide 34: Neutron Reveal Coming Soon
S I G N I F I C ANT N E U TR O N R E V E AL C O M I N G S O O N 34 Rocket Lab USA Section 2S I G N I F I C ANT N E U TR O N R E V E AL C O M I N G S O O N 34 Rocket Lab USA Section 2
Slide 35: Space Systems
SECTION 03 SPACE SYsTEMS 35 Rocket Lab USA Section 3SECTION 03 SPACE SYsTEMS 35 Rocket Lab USA Section 3
Slide 36: Space Systems Mandate
Space Systems MANDATE Satellites 1 as a Service From LEO constellations to high-complexity deep space and interplanetary missions Satellite 2 COMPONENTS Anything that goes to space should have a Rocket Lab logo on it SPACE 3 APPLICATIONS Uniquely positioned to access expanding space applications TAM
Slide 37: 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 chain Strengthened by Disruptive high-volume of high performance the acquisition manufacturing of critical
Slide 38: Photon
PHOTON Launch, satellite, ground services, and on-orbit mission operations in a turn-key package Cong fi urable spacecraft for Evolved from Electron’s Kick Stage, missions in LEO, MEO, GEO, lunar building on signic fi ant flight history. PHOTON PATHSTONE and planetary Primary propulsion, reaction co
Slide 39: Space Systems Growth Strategy
Space Systems Growth Strategy C ong fi urable, high performance › Focus on large quantity space systems to discriminate constellation opportunities against commodity satellites › Leverage launch relationships › Vertically integrated, end to and secure facility plans to end mission solutions includin
Slide 40: Photon 'First Light'
PHOTON ‘FIRST LIGHT’ Successfully deployed to orbit in August 2020 Exploiting high launch rate to rapidly mature Photon capabilities with hosted payload missions Successfully Operating on orbit High flight rate is demonstrated as a testbed for supporting rapid tech solar arrays, power flight and gro
Slide 41: Photon 'Pathstone'
PHOTON ‘PATHSTONE’ Successfully deployed to orbit in March 2021 Pathstone mission is de-risking Rocket Lab's deep space mission approach for PHOTON F19, MARCH 2021 upcoming mission to the Moon for NASA Risk reduction Demonstrated rapid Demonstrating mission for the integration of Photon upgraded avi
Slide 42: Upcoming Mission: LOXSAT-1
Upcoming Mission: LOXSAT-1 Photon to be used for an in-orbit propellant depot mission for NASA Demonstrates the value of integrated launch + satellite solutions to affordably meet challenging mission requirements Rocket Lab Electron Dedicated 9-month 125 kg payload launch vehicle and mission to test
Slide 43: NASA Mission to the Moon
NASA Mission to the Moon Bringing interplanetary missions within reach Launching the first mission of the Artemis program on a lunar trajectory in 2021 HYPER CURIE ENGINE HOT FIRE TEST CAPSTONE Electron launch Launching in late High energy Photon, or mission mission + Photon 2021, Photon will ‘Photo
Slide 44: NASA Mission to Mars
NASA Mission to Mars First NASA-funded Rocket Lab planetary science mission Awarded contract to design twin Photons to orbit at Mars and study the atmosphere Two Photon spacecraft in Launching as a rideshare Mars orbit to understand mission for NASA Science the structure, composition, Mission Direct
Slide 45: Mission to Venus
Mission to Venus Decadal-class Science with Small Spacecraft and Dedicated Launch Rocket Lab is leading the first privately funded mission to Venus to explore habitability of the cloud layer Photon spacecraft Hyperbolic Collaborating with launched by trajectory with leading university Electron rocke
Slide 46: New Mission: MethaneSAT
New Mission: Methanesat Monitoring methane emissions from space, Mission Operations by Rocket Lab Rocket Lab is providing payload operations, satellite operations management, tracking and collision avoidance services, orbit determination, flight dynamics, and ground Credit: Ball/BCT/MLLC station ope
Slide 47: 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, 1 further unlocking the ~$1.4T TAM by 2030 Rocket Lab’s
Slide 48: Vertical Integration
SECTION 04 Vertical integration From raw material to orbit Vertical integration 48 Rocket Lab USA Section 4
Slide 49: Vertically integrated space company
vertically integrated space company From raw material to orbit 1 2 1 2 5 6 Rocket Lab HQ Si nclair 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 La unch Pr opulsion Test La unch Systems Complex
Slide 50: Auckland Production Complex (APC)
AUCKLAND PRODUCTION COMPLEX (APC) 6.6 ACRES Greenfield Site Mission Operations Team, Warehousing Neutron and Engineering Development Composites, Avionics, Electron Assembly, R&D, Design, Engineering, Test, Mission Engineering Control, and Admin Development, Spacecraft Machine Shop 50 Rocket Lab USA
Slide 51: Rocket Lab Headquarters
Rocket Lab Headquarters 2.1 acres Avionics Production Engine Production Mission Management Business Development Mission Control Space Systems Development 51 Rocket Lab USA Section 4Rocket Lab Headquarters 2.1 acres Avionics Production Engine Production Mission Management Business Development Mission
Slide 52: Propulsion Test Complexes
PROPULSION TEST COMPLEXES PROPULSION TEST COMPLEX 1 NEW ZEALAND 250 acres of licensed land dedicated to test activity 12 acres of test stands and ancillary support buildings Dedicated test stands for cryogenic oxygen component testing: – T win Rutherford engine test bays for higher volume engine tes
Slide 53: State of the Art Manufacturing
STATE OF THE ART MANUFACTURING Production facilities capable of producing a rocket every week R&D and Extensive All production ~90% vertically manufacturing automation incl. scaling integrated. Engines, facilities across 3D printing and investments and vehicle structures, the U.S., NZ custom robotic
Slide 54: Factory of the Future
factory of the future In-house Wireless Visual step- Digital NEW MACHINE SHOP developed tablets and by-step signature APC, NEW ZEALAND, JULY 2021 manufacturing touch instructions signoff and software to control screen PC peer review shop floor interface authentication for technicians Accurately logs
Slide 55: High Volume Spacecraft Component Manufacture
High Volume Spacecraft Component Manufacture Bringing Value to Acquisitions Semi automated assembly line in development to enable high rate manufacture of reaction wheels for large constellation customer Leveraging Sinclair Interplanetary heritage and Rocket Lab’s existing experience with high rate
Slide 56: Production Growth
Production Growth ELECTRON SHIPMENTS 30 25 20 15 10 5 0 2017 2021 56 Rocket Lab USA Section 4 CUMULATIVE LAUNCH VEHICLE PRODUCTION ELECTRON ROCKETS ASSEMBLE APC, NEW ZEALAND, JULY 2021Production Growth ELECTRON SHIPMENTS 30 25 20 15 10 5 0 2017 2021 56 Rocket Lab USA Section 4 CUMULATIVE LAUNCH VEHI
Slide 57: Mission Assurance Cycle
07 01 Component Flight Inspection 06 02 Hardware in Component The Loo0p Acceptance MISSION ASSURANCE CYCLE 05 03 Engine Test Stack Testing 04 Integrated System Testing 57 Rocket Lab USA Section 407 01 Component Flight Inspection 06 02 Hardware in Component The Loo0p Acceptance MISSION ASSURANCE CYCL
Slide 58: Engineering is at our core
Engineering is at our core Across three countries... 270+ 210+ Engineers Manufacturing technicians › Space Avionics Engineering › Operational Data › Manufacturing engineering › Space Software Engineering › Fabrication and Machining › Operations Software › Space Operations › Final Integration › Integ
Slide 59: Supply Chain
SUPPLY CHAIN › V ertical integration reduces reliance on external suppliers › Pr otected from shortages through diversity of vendors and maintaining safety stock levels COVID has not had a profound impact on our supply base › NZ opera tion continue without disruption. No stay-at-home orders in place
Slide 60: Financial
SECTION 05 Financial 60 Rocket Lab USA Section 5SECTION 05 Financial 60 Rocket Lab USA Section 5
Slide 61: Growth Drivers
SERVICE AVAILABLE MARKET Growth Drivers Launch Space Systems $18.0 Building momentum across $16.0 multiple growth vectors $14.0 $12.0 $10.0 $8.0 1. Electron leadership and heritage $6.0 – Capitalizing leadership position in gr owing market for dedicated $4.0 small satellite launch $2.0 – Enabling en
Slide 62: Creating Profitability and Operating Leverage
Creating Profitability and Operating Leverage Driving ruthless efficiency into everything we do VEHICLE COST COMPONENTS VEHICLE COST PER LAUNCH TREND Bill of Materials & Launch Related Expenses Direct Labour & Overhead (THOUSANDS) $8,246 $6,557 $5,491 CURRENT FUTURE 2019 2020 Q1 2021* 8% annualized
Slide 63: Path to Target Model
PATH TO TARGET MODEL Keys to creating Operating Leverage SG&A R&D COGS Establishing a new business model in New Space 68% 54% 39% 37% Cost of Revenue: Research and Sales, General and increases in launch Development: Administrative: 26% 39% vehicle build rate disciplined and leverage legacy enable gr
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