Slide 1: The Premier High-Growth, Pure Play Industrial Robotics Investment
SARCOS® THE PREMIER HIGH-GROWTH, PURE PLAY INDUSTRIAL ROBOTICS INVESTMENT Analyst Day Presentation Ben Wolff – Chief Executive Officer August 2021
Slide 2: Disclaimer
DISCLAIMER • Legal Disclaimer • This presentation is for informational purposes only to assist interested parties in making their own evaluation with respect to the potential business combination between Sarcos Corp. (“Sarcos”) and Rotor Acquisition Corp. (“Rotor”) (the “Potential Business Combinati
Slide 3: Disclaimer
DISCLAIMER •The information contained herein is provided only as of the date on which this presentation is made and is subject to change.However, while Sarcosand Rotor may elect to update these forward-looking statements in the future, each of Sarcosand Rotor is not under any obligation, and express
Slide 4: Disclaimer
DISCLAIMER •Additional Information •In connection with the Potential Business Combination, Rotor has filed with the SEC a definitive proxy statement relating to theProposed Business Combination and mailed the definitive proxy statement to stockholders on August 9, 2021. This presentation does not co
Slide 5: How Does Work Get Done When There Aren't Enough Workers to Go Around?
HOW DOES WORK GET DONE WHEN THERE AREN’T ENOUGH WORKERS TO GO AROUND? Barrons.com, Census.gov, CNN.com, IndustryWeek.com SARCOS PROPRIETARY 5 SARCOS®
Slide 6: The Answer: A Fleet of Industrial Robots That Augment Instead of Automate
THE ANSWER: A FLEET OF INDUSTRIAL ROBOTS THAT AUGMENT INSTEAD OF AUTOMATE FOR NON-REPETITIVE JOBS The Robot-as-a-Service offering is expected to provide next generation, scalable labor force multiplier with an immediate ROI for industrial and military customers Guardian®️ XT™ Avatar Robot Guardian®️
Slide 7: 30+ Years of Development: Sarcos Evolution
30+ YEARS OF DEVELOPMENT SARCOS EVOLUTION Air Force XO contract XO program begins (DARPA) 2nd XO hydraulic(DARPA) 1stXO hydraulic(DARPA) US SOCOM XO contract XO debut at CES GS multi-unit sale to US DoD US Navy XT contract Raytheon buys Sarcos Industry Advisory Group established Marine Corp XO contr
Slide 8: Global Need Drives Demand
GLOBAL NEED DRIVES DEMAND WORKER SHORTAGE, INJURY, AND FATIGUE = KEY DRIVERS OF OPPORTUNITY $100 billion spent annually on back injuries in the U.S. Spine Research Institute & OSHA $136 billion annual costs in lost production due to fatigue OSHA, 2007 Falls from height #4 most disabling & costly inj
Slide 9: $147 Billion Annual Target Market in the US Alone
$147 BILLION ANNUAL TARGET MARKET IN THE US ALONE SCALE & EFFICIENCY TRANSCEND INDUSTRIES & APPLICATIONS, OFFERINGBLUE OCEAN OPPORTUNITY LARGE ADDRESSABLE MARKET1 END MARKETS & APPLICATIONS Total Addressable US Market: $147b Serviceable Obtainable US Market:$15b >16 million people employed in the U.
Slide 10: Innovation, Experience, and IP Enable a True Blue Ocean Opportunity
INNOVATION, EXPERIENCE, AND IP ENABLE A TRUE “BLUE OCEAN” OPPORTUNITY PROPRIETARY INNOVATIONS DEEP ROBOTICS PATENT PORTFOLIO COMPETITIVE STRENGTHS Energetic Autonomy Reduced power from 6,800 to 500 watts Optimized power utilization –elastic recovery Modelled after human movement; designed to human b
Slide 11: Guardian XO: An Industry 4.0 Workforce Multiplier
GUARDIAN®XO®:AN INDUSTRY 4.0 WORKFORCE MULTIPLIERWITH REDUCED RISKS OF INJURY EXPONENTIAL PRODUCTIVITY FOR THE FULLY-BURDENED COST OF A SINGLE EMPLOYEE Up to 200 lblift capacity Hot-swap batteries, near-continuous operation Capable of up to 100% load relief < 30 seconds to don or doff Pricing of ~$9
Slide 12: Guardian XO: An Exoskeleton in a Class of Its Own
GUARDIAN®️ XO®️: AN EXOSKELETON IN A CLASS OF ITS OWN INDUSTRIAL PARTIAL BODY UNPOWERED FORTIS EKSO ZERO G INDUSTRIAL PARTIAL BODY POWERED SAMSUNG PANASONIC REHABILITATION HONDA REWALK CYBERDYNE EKSO BIONICS FULL-BODY POWERED SARCOS PROPRIETARY 12 SARCOS®
Slide 13: Guardian XO: Example Use Case, Inspection & Maintenance
GUARDIAN®️ XO®️ : EXAMPLE USE CASE INSPECTION & MAINTENANCE RESULTS Prevent fatigue-related downtime Reduce the risk of back, neck, and shoulder injuries Equalize the workforce Extend frontline workers’ career span AVIATION AIRCRAFT MAINTENANCE C H A L L E N G E S Heavy components handling: Frontlin
Slide 14: Guardian XO: Example Use Case, Logistics
GUARDIAN®️ XO®️ : EXAMPLE USE CASE R E S U L T S Prevent fatigue-related downtime Reduce the risk of back, neck, and shoulder injuries Equalize the workforce Extend frontline workers’ career span LOGISTICS LAST-MILEDELIVERY HEAVY PARCEL BAG HANDLING CHALLENGES Heavy, ergonomically challenging tasks:
Slide 15: Guardian XT: Highly Dexterous Robotic Avatar
GUARDIAN®️ XT™: HIGHLY DEXTEROUS ROBOTIC AVATAR Optimize productivity for precise tasks in dangerous environments Reduce at-height and overhead fatigue, Reduce injury & exposure to hazardous conditions Mitigate risks and associated costs Reduce insurance premiums & hazard pay BENEFITS Lift and manip
Slide 16: Guardian XT: Example Use Case, Construction
GUARDIAN®️ XT™: EXAMPLE USE CASE C O N S T R U C T I O N CHALLENGES Reduce idle and downtime due to worker fatigue Eliminate humans doing elevated and at-height work Eliminate worker exposure to hazmat (welding fuel gas, silica, cement dust, etc.) Reduce safety equipment and infrastructure costs for
Slide 17: Guardian XT: Example Use Case, Power Utility
GUARDIAN®️ XT™: EXAMPLE USE CASE INSPECTION & MAINTENANCE RESULTS Hazardous conditions: High voltage power line work at-height and in all-weather conditions Potentially life-altering injuries and events: High risk of electrocutions, burns, and falls from height Human cost and downtime: The average c
Slide 18: CYTAR: Cybernetic Training for Autonomous Robots
CYTAR: CYBERNETIC TRAINING FOR AUTONOMOUS ROBOTS THE PROBLEM: Autonomy in weakly structured environments is difficult: • Traditional machine learning requires a time-consuming and expensive trial-and-error approach • Existing AI/ML solutions are environment specific and hard to replicate as conditio
Slide 19: CYTAR: Generalizable Autonomy in Robot Manipulation
CYTAR: GENERALIZABLE AUTONOMY IN ROBOT MANIPULATION TOWARDS HUMAN AUGMENTATION CYTAR VISION: A robotic system that combines human intelligence, instincts, and judgment with the strength, endurance, and precision of machines to: •augment human performance and awareness, and •operate autonomously when
Slide 20: How Do We Do It?
HOW DO WE DO IT? CONTROL Multi-modal sensors-motor skills Sensory-Motor Skills Primitives AI-BASED PLANNING Skill sequencing and compositional planning Sequential Tasking AI-BASED PERCEPTION Complex task structure Complex Task Structure DATA FOR CYTAR Expert needs to demonstrate, not label Demonstra
Slide 21: Robot-as-a-Service (RaaS) Model
ROBOT-AS-A-SERVICE (RAAS) MODEL EXPECTED TO ACCELERATE ADOPTION AND DELIVER RECURRING REVENUES RAAS INTENDED TO OFFER ECONOMIC ADVANTAGES AND A UNIQUE VALUE PROPOSITION BENEFITS OF RAAS RA A S V S . B UY Maintenance and servicing covered by Sarcos ✓ Lowers barriers to deployment due to no CapEx outl
Slide 22: Target Industries and Customers
TARGET INDUSTRIES AND CUSTOMERS LEAD PROSPECTIVE CUSTOMERS HAVE IDENTIFIED INITIAL NEEDS RANGING FROM 100-TO- 3,000 UNITS PER CUSTOMER LOGISTICS F O O D S E R V I C E S RE PRE S ENTAT IV E TARGE T CUS TOMERS Beta Unit Trials (2-4 weeks) Mid-2022 EXPECTED CUSTOMER JOURNEY AND TIMING DOD / GOVERNMENT
Slide 23: Illustrative Per Unit Economics
ILLUSTRATIVE PER UNIT ECONOMICS (6-YEAR SERVICE LIFE, AS OF 2026) XO DX / XT RE V ENUE COS T CASH FLOW n Setup n Repair n Amortization $600 Cumulative $175 Cumulative $425 Cumulative REVENUE $360 Cumulative COS T $90 Cumulative CA SH F LOW $270 Cumulative P A YB ACK P ERIOD PAYBACK PERIOD ~8 MONTHS
Slide 24: Financial Projections (as of January 2021)
FINANCIAL PROJECTIONS (AS OF JANUARY 2021) *PANDEMIC EFFECT ON SUPPLY CHAIN AND STAFFING NOW ANTICIPATED TODELAY COMMERCIAL LAUNCH BY ~6 MONTHS, IMPACTING MEDIUM-TERM FINANCIAL METRICS IN 2021-2023 PERIOD. LONGER TERM OUTLOOK REMAINS UNCHANGED $8 $9 $22 $166 $438 $1,229 $2,714 2020A 2021E* 2022E* 20
Slide 25: Transaction Structure and Pro Forma Equity Ownership
TRANSACTION STRUCTURE AND PRO FORMA EQUITY OWNERSHIP TRA NS A CT ION S TRUCTURE The transaction is expected to close in Q3 2021 Post-closing, the combined company is expected to be listed on the Nasdaq, will be named “Sarcos Technology and Robotics Corporation” and will trade under the symbol STRC V
Slide 26: Sarcos – An Attractive Valuation Paradigm for Investors
SARCOS – AN ATTRACTIVE VALUATION PARADIGM FOR INVESTORS Pro Forma Enterprise Value $1.3 billion E V / A DJ . E B I TDA EV / REVENUE 2025E Revenue $1,229 million Illustrative Discounted Enterprise Value3 $6.3 billion – $9.0 billion Adj. EBITDA1 $753 million Illustrative Adj. EBITDA Reference Range2 2
Slide 27: Q&A
Q&A SARCOS
Slide 28: Appendix
SARCOS’ APPENDIX
Slide 29: Non-GAAP Reconciliation as of January 2021
NON-GAAP RECONCILIATION AS OF JANUARY 2021* ($ IN MILLIONS) Adjusted EBITDA 2020A 2021E 2022E 2023E 2024E 2025E 2026E Net Income/(Loss) ($17.9) ($51.6) ($63.8) $3.6 $126.1 $352.4 $929.6 Depreciation and Amortization 1.6 1.1 0.7 0.3 0.4 0.5 0.6 Interest Income/(Expense) 0.1 - - - - - - Other Income/(