Virgin Galactic Holdings, Inc. · NYSE:SPCE
Virgin Galactic — Q1 2020 Earnings Presentation
29 slides from Virgin Galactic's earnings presentation, May 5, 2020
Slide 1: First Quarter 2020 Investor Update
First Quarter 2020 Investor Update May 5, 2020
Slide 2: Disclosures
Disclosures Forward-Looking Statements This presentation contains certain forward-looking statements within the meaning of federal securities laws with respect to Virgin Galactic Holdings, Inc. (the "Company"), including statements regarding the Company’s spaceflight systems, markets and expected pe
Slide 3: Virgin Galactic Investment Highlights
Virgin Galactic Investment Highlights 1 First and Only Public Company Focused on Commercial Human Spaceflight 2 Sizeable and Growing Market for High End Luxury Experiences 3 Highly Engaged Customer Base with Demonstrated Willingness to Pay 4 Attractive Business Model with Reusable, Scalable Design 5
Slide 4: Impact of COVID-19
Impact of COVID-19 The health and safety of our employees and local communities remain our top priorities Temporarily suspended on-site operations at our facilities in Mojave and at Spaceport America in March Resumed limited operations in April in accordance with our classification within the
Slide 5: COVID-19 Relief Efforts
COVID-19 Relief Efforts Partnering with NASA to develop innovative solutions to the problems facing healthcare workers on the frontlines Developing negative pressure enclosures Developing low-cost breathing hoods (PPB Hoods) that provide oxygen-rich positive pressure to patients in need Prod
Slide 6: Milestones
3 Pa. GAaLacrTric Milestones
Slide 7: 2019 Highlights
2019 Highlights f ioe Galactic i 7
Slide 8: January 8, 2020
January 8, 2020 Second spaceship achieved Weight on Wheels Milestone Third spaceship achieved 50% completion of structure and systems fabrication 8
Slide 9: Update on Build Program
Update on Build Program Completed numerous structural and mechanical installations on SS2 Installed landing gear doors Installed feather actuator structure Installed feather flap hinges Completed feather horn to torque tube attachment Fabricated high temperature nose cone Finalized cri
Slide 10: February 13, 2020
February 13, 2020 Relocated first spaceship, VSS Unity, from Mojave, CA to Spaceport America, NM 10
Slide 11: Spaceport America Milestones
Spaceport America Milestones Completed transition of all Virgin Galactic operations personnel from Mojave, CA to New Mexico, bringing current total number of staff in New Mexico to 178 people Completed the first and second floors at Spaceport America Continued to build out the third floor at S
Slide 12: Update on FAA Approval Process
Update on FAA Approval Process FAA previously issued Reusable Launch Vehicle License to allow Virgin Galactic to conduct spaceflight missions The path to final approval is a Verification and Validation (V&V) program that contains 29 elements Virgin Galactic cleared four new V&V provisos during
Slide 13: Test Program Update
Test Program Update Successfully completed glide flight of VSS Unity from Spaceport America Remain focused on completing the test flight program as soon as possible Testing and optimizing the end-to-end customer experience Readying the vehicles for long-term, high rate service 13
Slide 14: Glide Flight May 1, 2020
Glide Flight May 1, 2020 Watch the video of the glide flight here 14
Slide 15: Glide Flight May 1, 2020
Glide Flight May 1, 2020 mt saLactic - . 15
Slide 16: Glide Flight May 1, 2020
Glide Flight May 1, 2020 = Pey> GALACTIC rg
Slide 17: Space Act Agreement with NASA to Advance High Mach Technologies
Space Act Agreement with NASA to Advance High Mach Technologies Agreement enables collaboration between NASA, Virgin Galactic and The Spaceship Company to advance US efforts to produce technically feasible, high Mach vehicles Initial focus will be vehicle thermal management and propulsion system
Slide 18: One Small Step Initiative
One Small Step Initiative Launched “One Small Step” initiative on February 26, 2020 Prospective customers can secure their place at the front of the line for future ticket reservations when ticket sales re-open Initiative marks a significant milestone as we prepare to re- open ticket sales $
Slide 19: Direct Sales Funnel
Direct Sales Funnel LEADS Scalable end-to-end customer pipeline for direct sales Total Addressable Market = 2.01M HNW individuals[1] Prospect pool reached 9,160 as of April 29, 2020 Continued growth in registrations of interest, with registrations increasing by ~1,200, up 15% PROSPECTS Desire to
Slide 20: Financials
3 Pa. GAaLacrTric Financials
Slide 21: First Quarter 2020 Financials
First Quarter 2020 Financials Strong cash position, with cash and cash equivalents of $419 million as of March 31, 2020 Revenue of $238,000, generated by providing engineering services Net loss of $60 million First Quarter GAAP SG&A expenses of $27 million. Non-GAAP SG&A expenses of $23 mill
Slide 22: Income Statement
Income Statement Amounts in thousands ($) Three Months Ended March 31, 2020 2019 Revenue $ 238 $ ,782 Cost of revenue 173 1,006 Gross profit 65 776 Selling, general, and administrative expenses 26,755 12,295 Research and development expenses 34,282 31,424 Operating loss (60,972) (42,943) Interest in
Slide 23: Cash Flow Statement
Cash Flow Statement Amounts in thousands ($) Three Months Ended March 31, 2020 2019 Cash flows from operating activities Net loss $ (59,930) $ (42,593) Stock-based compensation 4,425 — Depreciation and amortization 2,105 1,610 Other operating activities, net 1 (117) Change in assets and liabilities
Slide 24: Looking Ahead
Looking Ahead 24
Slide 25: on Galactic
@ aa J — | | on Galactic
Slide 26: Appendix
3 Pa. GAaLacrTric Appendix
Slide 27: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Amounts in thousands ($) Three Months Ended March 31, 2020 2019 Net Loss $ (59,930) $ (42,593) Income tax (benefit) expense (46) 25 Interest expense 9 1 Depreciation & amortization 2,105 1,610 EBITDA (57,862) (40,957) Non-capitalized transaction costs* 697 - Stock
Slide 28: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Amounts in thousands ($) Three Months Ended March 31, 2020 2019 Selling, general, and administrative expenses $ 26,755 $ 12,295 Stock-based compensation 2,871 - Non-capitalized transaction costs* 697 - Non-GAAP selling, general, administration expenses $ 23,187 $
Slide 29: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Amounts in thousands ($) Three Months Ended March 31, 2020 2019 Research and development expenses $ 34,282 $ 31,424 Stock-based compensation 1,554 - Non-GAAP research and development expenses $ 32,728 $ 31,424 29
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