Slide 1: Q1 2023 Investor Presentation
Q1 2023 Investor Presentation May 10, 2023
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 press release 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 Comparab
Slide 4: Agenda
Agenda Presenters 1 Key Accomplishments 5 2 Financial Highlights 17 3 Remainder of 2023 Outlook 22 4 Q&A 24 Peter Cannito Jonathan Baliff Chairman & Chief Executive Officer Chief Financial Officer & Director 1. Insert Footnote 4
Slide 5: Key Accomplishments
Key Accomplishments Peter Cannito, Chairman and CEO 1. Insert Footnote 5
Slide 6: Integrated Pureplay Space Company with Three Primary Focus Areas
Integrated Pureplay Space Company with Three Primary Focus Areas 11 22 33 Integrated Space Explore, Live and Multinational Mission Enabler Work in Space Space Leadership Solving our customers' supply Developing breakthrough Providing multinational chain issues by providing commercial Intellectual Pr
Slide 7: Q1 2023 Most Successful in Redwire History
Q1 2023 Most Successful in Redwire History $57.6M $4.3M $(7.3)M Record revenue Positive Adjusted EBITDA** in Net Loss in Q1 2023 in Q1 2023 Q1 2023 $286.8M 3 Contracted Backlog* Infrastructure Solutions, Systems, going into Q2 2023 and Payloads on 2 launches in Q1 2023 1. Insert Footnote Unless othe
Slide 8: Revenue Growth Continues
Revenue Growth Continues . . . Q1 2023 $57.6M Revenues by Q1 2023 revenues Customer Type (%) 75.3% 37.9% 7.3% Year-over-year Sequential growth Year-over-year increase in revenues, Q4 2022 to Q1 increase in revenues excluding Space NV* 2023 1. Insert Footnote Unless otherwise noted, financial informa
Slide 9: with Significant Financial Momentum
. . . with Significant Financial Momentum Net Loss decreased from $(17.3)M in Q1 2022 to $(7.3)M in Q1 2023, or: +$10.0M Adjusted EBITDA increased from $(4.7)M in Q1 2022 to $4.3M in Q1 2023, or: +$9.0M 1. Insert Footnote Credit: NASA Unless otherwise referred to as Comparable Revenues, financial in
Slide 10: Integrated Mission Enabler: Reliable Navigation on Orbit
Q1 Integrated Mission Enabler: Reliable Navigation on Orbit 2 Complete Redwire Fine Sun Sensor systems on the GPS III SV06 satellite, each consisting of 4 Fine Sun Sensor Heads and 2 Processor Electronics 12,550 miles Distance above the earth of the Credit: Lockheed Martin operational orbit of the G
Slide 11: Powering Critical Space Missions Now and in the Future
Q1 Integrated Mission Enabler: Powering Critical Space Missions Now and in the Future 2 Additional Roll-Out Solar Array (ROSA) wings 5 and 6 for ISS delivered in Q1 20-30% Improvement in the overall power-generating capability of the ISS from the combined ROSA arrays once installed 1. Insert Footnot
Slide 12: Discovering a New Type of Electronics System
Q1 Explore, Live and Work in Space: Discovering a New Type of Electronics System 20 Days of on-orbit experiments completed with the Pore Formation and Mobility Investigation facility as part of the Asymmetric Sawtooth and Cavity- Enhanced Nucleation-Driven Transport (PFMI- ASCENT) investigation 5 On
Slide 13: Collaborating to inspire future generations
Q1 Explore, Live and Work in Space: Collaborating to inspire future generations zune.net Taking the fiction out of science fiction, Redwire and Microsoft, in collaboration with Marvel Studios' "Guardians of the Galaxy Vol. 3," teamed up to create STEM educational materials and conduct a space-based
Slide 14: Integrating Formation Flying Satellites
Q1 Multinational Space Leadership: Integrating Formation Flying Satellites 2 Number of ESA PROBA-3 spacecraft that were fully integrated by Redwire in Belgium and included Redwire's Advanced Data and Power Management Systems to control the vehicles as the on-board computer system Credit: ESA 1. Inse
Slide 15: Advancing Tissue Manufacturing Capabilities at Redwire Space NV
Q1 MultinationaI Space Leadership: Advancing Tissue Manufacturing Capabilities at Redwire Space NV €14M Completed 1st technical milestone on a €14M contract awarded to Redwire Space NV in Q4 2022 under a program of and funded by the Exploration Programme of the European Space Agency* to design, deve
Slide 16: Backlog Growth Demonstrates the Heritage + Innovation Demand and Differentiation
Backlog Growth Demonstrates the Heritage + Innovation Demand and Differentiation ~$3.4B ~$220M Pipeline as of 2023 Year-to-Date March 31, 2023 submitted bids as of March 31, 2023 108.8% $29.7M 1.76x 2023 Year-to-Date Q1 2023 LTM Contract Awards Book-to-Bill* 1. Insert Footnote * Contracted Backlog a
Slide 17: Financial Highlights
Financial Highlights Jonathan Baliff, Chief Financial Officer 1. Insert Footnote 17
Slide 18: Quarterly Revenues
Quarterly Revenues • 75.3% increase in Q1 2023 vs. 7.3% Increase in revenues from Q4 2022 to Q1 2023 Q1 2022 • 37.9% increase in Q1 2023 vs. Q1 2022, excluding Space NV* • LTM revenues increased 33.5% to $185.3M for Q1 2023 vs $138.8M for Q1 2022 • Over 85% of revenues from Government and Marquee cu
Slide 19: 2023 Year-to-Date Revenues
2023 Year-to-Date Revenues • 37.9% increase over Q1 2022, 75.3% Increase over 2022 Q1 excluding Space NV* • Q1 2023 Revenues by customer type were 45.2% from Civil, 36.4% from Commercial, and 18.4% from National Security • All customer type revenues increased in Q1 2023 vs. Q1 2022 with Commercial c
Slide 20: Quarterly Adjusted EBITDA
Quarterly Adjusted EBITDA Improvement in Adjusted • +$9.0M or 193.0% improvement +$5.1M EBITDA in Q1 2023 vs. Q4 2022 in Q1 2023 vs. Q1 2022 • Primarily driven by revenue growth and our "excellence in execution" initiatives that improved Gross Margin from 15.7% to 24.7% and Gross Profit from $5.2M t
Slide 21: Quarterly Free Cash Flow and Liquidity
Quarterly Free Cash Flow and Liquidity Q1 2023 Free Cash Flow impacted by Net Working $(14.8)M Capital increases supporting growth and timing of $36.3M Ending liquidity as of March 31, 2023 milestone collections * 1. Insert Footnote Unless otherwise referred to as Comparable Revenues, financial info
Slide 22: Remainder of 2023 Outlook
Remainder of 2023 Outlook Peter Cannito, Chairman and CEO Credit: Redwire 1. Insert Footnote 22
Slide 23: Remainder of 2023 Outlook
Remainder of 2023 Outlook • Global Revenue Growth +46% ◦ Redwire affirms that it expects revenues to be in a range of $220M-$250M ◦ 46% year-over-year growth, at the mid- point of the range ◦ 25% of forecasted midpoint revenues achieved in Q1 • Excellence in Execution ◦ Gross margin improvement ◦ Co
Slide 24: Questions & Answers
Questions & Answers 1. Insert Footnote 24
Slide 25: Appendix
Appendix 25
Slide 26: Q1 2023 Quarter-to-Date Performance
Q1 2023 Quarter-to-Date Performance Three Months Ended $ Change from prior % Change from prior ($ in thousands, except percentages) March 31, 2023 March 31, 2022 year period year period Revenues $ 57,605 $ 32,867 $ 24,738 75 % Cost of sales 43,388 27,696 15,692 57 Gross margin 14,217 5,171 9,046 175
Slide 27: 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 Three Months Ended generally accepted accounting principles in the United States. March 31, March 31, (in thousands) 2023 2022 Adjusted EBIT
Slide 28: Supplemental Non-GAAP Information, Continued
Supplemental Non-GAAP Information, Continued i. Redwire incurred acquisition costs including due diligence, integration costs and (in thousands) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 additional expenses related to pre-acquisition activity. Net income (loss) $ (17,293) $ (77,028) $ (10,423) $ (25,8
Slide 29: Supplemental Non-GAAP Information, Continued
Supplemental Non-GAAP Information, Continued Three Months Ended Free Cash Flow (in thousands) March 31, 2023 March 31, 2022 Free Cash Flow is computed as net cash provided by Net cash provided by (used in) operating activities $ (14,048) $ (11,446) (used in) operating activities less capital expendi
Slide 30: Key Performance Indicators
Key Performance Indicators Contracted Backlog We view growth in backlog as a key measure of our business growth. Contracted backlog March 31, December 31, represents the estimated dollar value of firm funded executed contracts for which work (in thousands) 2023 2022 has not been performed (also know