Slide 1: Q3 2023 Investor Update
Rocket Lab USA, Inc. Q3 2023 Investor Update November 8th, 2023 rocketlabusa.com
Slide 2: Forward Looking Statements
F O R WA R D L O O K I N G S TAT E M E N T S Forward Looking Statements This presentation may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securit
Slide 3: Today's Presenters
T O D AY ’ S PRESENTERS Peter Beck Adam Spice Founder, Chief Executive Officer, Chief Engineer Chief Financial Officer 3
Slide 4: Agenda
Agenda 1 Key Accomplishments Q3 2023 2 Interim Accomplishments Q4 2023 3 Financial Highlights and Outlook 4 Q&A and Upcoming Events 4
Slide 5: Key accomplishments Q3 2023
SECTION Key accomplishments Q3 2023 5
Slide 6: Two successful launches in Q3
S E C . 1 | K E Y A C C O M P L I S H M E N T S q 3 2 0 2 3 Two successful launches in q3 Successful back-to-back recovery missions, with two first stages returned to Earth under parachute and the first successful use of a pre-flown engine. CUSTOMERS: NASA, SFL, Spire DEPLOYED: 7 Satellites In addit
Slide 7: Electron update
S E C . 1 | K E Y A C C O M P L I S H M E N T S q 3 2 0 2 3 E l e c t r o n u p d at e Rocket Lab’s investigation into the anomaly that occurred during its 41st Electron launch is extensive. Approval received from the FAA to resume Electron launches from Launch Complex 1. A review into the anomaly’s
Slide 8: Only 1.6 seconds of anomaly data
S E C . 1 | K E Y A C C O M P L I S H M E N T S q 3 2 0 2 3 O n ly 1 . 6 seconds of a n o m a ly d ata T+151.85 T+152.18 Stage 2 high voltage Stage 2 high bus drops to ~420V voltage bus rises as electrical arc back to ~508V, draws power indicating end of T+148 T+151 T+152 electrical arc T+152.66 T+1
Slide 9: The investigation
S E C . 1 | K E Y A C C O M P L I S H M E N T S q 3 2 0 2 3 ACTUAL FOOTAGE MODEL REPRESENTATION T h e i n v e s t i g at i o n Extensive analysis of the mission’s manufacturing, test, and flight data completed over 7+ weeks. 12,000+ data channels to draw from and more than 200 sub investigations lau
Slide 10: Corrective measures and return to flight
S E C . 1 | K E Y A C C O M P L I S H M E N T S q 3 2 0 2 3 Corrective measures and return to flight Rocket Lab expects to formally close its anomaly investigation in the coming weeks. Implemented redundancies include increased fidelity to vacuum testing involving higher- sensitivity instruments at
Slide 11: Electron Manifest 2024
Electron Manifest 2024 Standard Recovery HASTE 22 missions booked in 2024 Q1 Q2 Q3 Q4 5 launches 6 launches 3 launches 8 launches 11
Slide 12: Electron making profitability progress
S E C . 1 | K E Y A C C O M P L I S H M E N T S q 3 2 0 2 3 Electron making p r o f i ta b i l i t y progress Electron’s build rate continues to increase alongside recent acquisitions and continuous improvement in automation across our manufacturing processes. At 27% GAAP Launch Gross Margin in Q3,
Slide 13: Additional accomplishments
SECTION Additional accomplishments After September 30, 2023
Slide 14: Major Neutron tank milestone achieved
S E C . 2 | a d d i t i o n a l A C C O M P L I S H M E N T S M a j o r N e u t r o n Ta n k milestone achieved Stage 2 structural & cryogenic test campaign completed, including hydrostatic, cryogenic, and leakage test sequences. q More than 15 Electrons-worth of liquid nitrogen was used in the test
Slide 15: Next Neutron tanks & structures being built
S E C . 2 | a d d i t i o n a l A C C O M P L I S H M E N T S Next neutron ta n k s & s t r u c t u r e s b e i n g b u i lt Following the successful tank test, the next full- scale Neutron parts production – including tanks, first stage fixed fairing, and other critical components – is underway. q
Slide 16: Archimedes executes critical methane/LOX combustion test
S E C . 2 | a d d i t i o n a l A C C O M P L I S H M E N T S Archimedes executes critical methane/lox combustion test Achieved target pressures and a range of flight-like mixture ratios of Methane & LOX in Archimedes combustion devices testing. Producing full-scale Archimedes hardware and full asse
Slide 17: Key infrastructure scaling quickly to support schedule
S E C . 2 | a d d i t i o n a l A C C O M P L I S H M E N T S Key infrastructure s c a l i n g q u i c k ly t o support schedule Launch Complex 3 groundworks complete ahead of construction start on launch pad, facilities & support services. New engine development complex opened in Long Beach, Califo
Slide 18: Critical Neutron development milestones achieved in Q3
S E C . 2 | a d d i t i o n a l A C C O M P L I S H M E N T S Critical neutron development milestones achieved in q3 Engine/Stage Thermal Fairing and Upper First hardware- Stage 2 Combustion Separation Actuator Motor controller protection Module Tooling in-the-loop Tank testing device testing Lock d
Slide 19: HASTE showing strength in bookings
S E C . 2 | a d d i t i o n a l A C C O M P L I S H M E N T S HASTE showing STRENGTH in BOOKINGS 7 Secured seven HASTE launch contracts with prime hypersonic defense customers in six months. Latest contract: a HASTE mission from Virginia for the Defense Innovation Unit (DIU) to deploy a scramjet-pow
Slide 20: End-to-end satellite manufacturing
S E C . 2 | a d d i t i o n a l A C C O M P L I S H M E N T s E n d - t o - e n d S at e l l i t e m a n u fa c t u r i n g STAR TRACKERS FLIGHT SOFTWARE SPACECRAFT STRUCTURES New spacecraft order for a confidential constellation customer includes full-suite of Rocket Lab space systems products: o S
Slide 21: Globalstar production on schedule
S E C . 2 | a d d i t i o n a l A C C O M P L I S H M E N T S g l o b a l s ta r production on schedule We invoiced two significant milestones as part of the $143m contract with the completion of the spacecraft’s final design and delivery to MDA of a structural thermal model. Assembly and integratio
Slide 22: Rocket Lab solar panels powering latest NASA deep space mission
S E C . 1 | a d d i t i o n a l A C C O M P L I S H M E N T s Rocket lab solar pa n e l s p o w e r i n g l at e s t N a s a d e e p s pa c e m i s s i o n NASA’s Psyche mission successfully deployed and now on its six-year journey to reach the Psyche asteroid. Rocket Lab supported the mission with
Slide 23: Lt. Gen. (Ret) Nina Armagno added to board of directors
S E C . 2 | a d d i t i o n a l A C C O M P L I S H M E N T S Lt . g e n . ( r e t ) N i n a Armagno added to board of directors 35+ years in leadership positions across the U.S. Air Force and U.S. Space Force. First lieutenant general officer appointed to, and Director of Staff for, the U.S. Space
Slide 24: Financial highlights and outlook
SECTION Financial highlights and outlook
Slide 25: Review of Revenue and Gross Margin
REVIEW OF REVENUE AND GROSS MARGIN Quarter-on-Quarter $68M 9% Revenue in Q3 2023 Quarter-on-Quarter revenue increase Sequential revenue increase of 9%, or $5.6M, Revenue and driven by growth in our satellite business, GAAP / Non-GAAP Gross Margin primary owing to a step up in our MDA contract $80 GA
Slide 26: Review of Backlog
REVIEW OF Backlog Quarter-on-Quarter $582M 9% Backlog as of Q3 2023 end Quarter-on-Quarter backlog increase Sequential backlog increase of 9%, or $48.1M, Backlog by Segment driven by healthy bookings in our Launch business across returning commercial and HASTE $700 customers, partially offset by dec
Slide 27: Review of Operating Expenses
R E V I E W O F O P E R AT I N G EXPENSES Quarter-on-Quarter GAAP SG&A expense decreased primarily due to a decrease in the change in contingent GAAP & Non-GAAP consideration related to our Planetary R&D vs. SG&A Spending Systems Corporation acquisition. $70 Non-GAAP SG&A expense increased modestly
Slide 28: Ending Cash and Non-GAAP Free Cash Flow metrics
Ending Cash and Non- GAAP Free cash flow metrics Quarter-on-Quarter $374M in cash and cash equivalents, marketable securities and restricted cash, end of period in Q3 2023. Cash consumed from Capital Expenditures increased $10.4M sequentially, due to continued investment in Neutron research, testing
Slide 29: Profitability trends
P r o f i ta b i l i t y t r e n d s Trailing Four Quarter Revenue growth and gross margin expansion are driving meaningful improvements in the model. Profitability Trends Improving gross profit trends are helping to close the gap to adjusted EBITDA break-even, a key milestone for Rocket Lab. $80 $6
Slide 30: Financial Outlook
FINANCIAL OUTLOOK Q4 2023 Revenue Q4 2023 GAAP and Q4 2023 GAAP and Q4 2023 Adjusted Q1 2024 Revenue Outlook Non-GAAP Non-GAAP EBITDA Outlook Gross Margins Operating Expense • Expect revenue to • Expect GAAP gross • Expect GAAP • Expect Interest • Expect revenue range between $65 margin to range Ope
Slide 31: Q&A
Slide 32: Upcoming Investor Events
UPCOMING Investor Events Stifel Midwest 1x1 Roth New York Deutsche Bank Space Morgan Stanley Space Bank of America Virtual Conference Technology Summit Summit STARS Summit Conference November 9, 2023 November 15, 2023 November 15, 2023 December 5, 2023 December 15, 2023 Adam Spice Adam Spice Adam Sp
Slide 33: Rocket Lab
— ROCKETLAB