First Quarter 2020 Earnings Calls22.q4cdn.com/683266634/files/doc_financials/2020/...available online under the Company’s SEDAR profile at or on the Company’s website at . The

May 11, 2020

First Quarter 2020 Earnings Call

© 2020 Maxar Technologies 2

This presentation and associated earnings release, conference call and webcast, which includes a business update, discussion of the financial results as of March 31, 2020, financial outlook and question and answer session (collectively, the “Earnings Information”), contain certain “forward-looking statements” or “forward-looking information” under applicable securities laws. Forward-looking terms such as “may,” “will,” “could,” “should,” “would,” “plan,” “potential,” “intend,” “anticipate,” “project,” “target,” “believe,” “plan,” “outlook,” “estimate,” “guidance” or “expect” and other words, terms and phrases of similar nature are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

Forward-looking statements are based on certain key expectations and assumptions made by the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Any such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results and expectations to differ materially from the anticipated results or expectations expressed in the Earnings Information. The Company cautions readers that should certain risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected.

The risks that could cause actual results to differ materially from current expectations include, but are not limited to those Risk Factors set forth in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available online under the Company’s EDGAR profile at www.sec.gov or on the Company’s website at www.maxar.com, as well as the Company’s continuous disclosure materials filed from time to time with Canadian securities regulatory authorities, which are available online under the Company’s SEDAR profile at www.sedar.com or on the Company’s website at www.maxar.com. The risk factors detailed in the foregoing are not intended to be exhaustive and there may be other key risks that are not identified that are not presently known to the Company or that the Company currently deems immaterial. These risks and uncertainties are amplified by the global COVID-19 pandemic, which has caused and will continue to cause significant challenges, instability and uncertainty.

The forward-looking statements contained in the Earnings Information are expressly qualified in their entirety by the foregoing cautionary statements. All such forward-looking statements are based upon data available as of the date of the Earnings Information or other specified date and speak only as of such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements herein as a result of new information, future events or otherwise, other than as may be required under applicable securities law.

Caution concerning forward looking statements

© 2020 Maxar Technologies 3Company Proprietary – Internal Use

Highlights

1. Balance Sheet: Closed MDA divestiture on April 8, 2020

2. Earth Intelligence: Solid revenue year-over-year growth of +7%

3. Space Infrastructure: Book-to-bill of over 2.5x

4. Total Company Adj. EBITDA: Negatively impacted by $32M in charges related to COVID-19 and anomaly detected in final satellite test procedure

5. Free Cash Flow: Consumption of $73M vs. $158M in 1Q19

6. Bookings: Book-to-bill of 1.1x and ~90% of 2020 revenue expectation now in backlog

7. Guidance: Reduced Adj. EBITDA to absorb COVID-19 related and testing charges taken in 1Q

© 2020 Maxar Technologies 4Company Proprietary – Internal Use

Progress on 2020 priorities

Capital Structure Closed MDA Divestiture and reduced debt levels Debt-to-EBITDA leverage ratio of 4.7 vs. covenant of 7.50 $494M of liquidity at end of quarter

Position Earth Intelligence for long-term growth Key wins: JANUS, HERE and Toyota Legion update: Budget and timeline on track Performance: Solid growth and flat Adj. EBITDA margins

Continue re-engineering and diversification of Space Infrastructure

Key 1Q wins: NASA & Intelsat 40e drove 2.5x book-to-bill YTD Bookings: $700M+ including recent multi-satellite win Re-engineering update: Facility densification in process Performance: Revenue growth and Adj. EBITDA affected

by $32M unexpected charge for COVID-19 & test anomaly

1

2

3


Moving business forward during COVID-19

Company Proprietary – Internal Use

ACTIONS TO DATE

Work-from-Home (WFH)

Essential business status

Worker safety measures

Force majeure notices Financial items:

‒ Merit pay increases deferred

‒ Travel restrictions‒ WFH stipends

Use of geospatial data to support governments, NGOs and the media

KEY RISKS MITIGATION STRATEGY

Space Infrastructure

Supply chain

Utilization / Productivity

Earth Intelligence

Elongating sales cycles / customer productivity

Workforce productivity / fulfilling US Government services contracts

Close monitoring and workflow modifications Second sources Make vs. buy

Worker safety measures Workers balanced across multiple shifts WFH stipends

Focused on meeting critical customer missions Product flexibility, e.g. DAF for RAP Analyzing pipeline for opportunities and risks

Worker safety measures Use of WFH & corporate secure environments CARES Act / assuring customer alignment

© 2020 Maxar Technologies 6 Company Proprietary – Internal Use

REVENUE PROFILEData generation, data analytics/platforms, and space infrastructure

40%

31%

29% Communications and Earth observation satellites Space exploration spacecraft On-orbit satellite servicing vehicles Robotics for ongoing space operations and

exploration Multi-year contracts and support services

Electro-optical, high-resolution satellite imagery Sensor and ground system optimization for near real-

time geospatial insights Mission ready geospatial intelligence (GEOINT) Largely recurring, multi-year contracts

Big data platform and tools Machine learning/AI and data analytics at scale Multisource data enrichment and analysis Geodata layers and information products Largely recurring, multi-year contracts

*Includes EVFO and DAF revenue

2019 Revenue MixEarth Intelligence - Data Analytics / Platforms

Earth Intelligence - Data Generation*

Space Infrastructure


Solid growth in Earth Intelligence offset by Space Infrastructure

− Revenue down ~12% y/y− Earth Intelligence driven by new contract awards and expansion

of existing programs with the U.S. government− Space Infrastructure driven by lower commercial volume and

costs associated with COVID-19 and testing anomaly

Adj. EBITDA1 Margins down 280 bps y/y− Primarily driven by revenue effects above, offset by lower

corporate and other expenses

EPS from Continuing Ops loss of ($1.30) vs. loss of ($1.14) in 1Q19

− Lower margins at SI− Impairment charge on orbital receivables− Offset by lower depreciation and amortization, SG&A costs, and

growth in Earth Intelligence

Q1 Financial Results

1 This is a non-GAAP financial measure. Refer to section “Non-GAAP Financial Measures” in the Appendix to these earnings slides.


Revenue up 7% y/y− Driven by recent awards and program expansion on

existing contracts across the US Government and a delayed international customer renewal in 2019

− WV4 loss in late 2018 impacted the first half of 2019− We were able to recover some of the WV4 revenue

in the second half of 2019

Adj. EBITDA1 Margins consistent y/y− Adjusted EBITDA1 increased y/y due to higher

revenues and a decline in SG&A expenses due to headcount reductions in the first half of 2019

Earth Intelligence – Q1 Results

1 Segment adjusted EBITDA margin is defined as segment adjusted EBITDA as a percentage of segment revenues.


Revenue down 37% y/y− Driven by lower commercial volume and costs

associated with COVID-19 and testing anomaly− Partially offset by an increase in volume in US

Government contracts

Adj. EBITDA1 Margins down 2,850 bps y/y− Primarily due to the same items driving the lower

revenues above

Space Infrastructure – Q1 Results

1 Segment adjusted EBITDA margin is defined as segment adjusted EBITDA as a percentage of segment revenues.


Q1 Cash used in operations of $13M− Working capital largest driver

Q1 Capital expenditures / intangibles of ($60M)

− Driven by Legion program and US Government infrastructure investment

Under the CARES Act, we have the ability to defer the remaining $15M in pension plan payments until January 1, 2021

We have also elected to defer the employer portion of social security payments for the remainder of 2020, which amount to approximately $18M. These payments will be due in 2021 and 2022

Q1 Cash Flows


Liquidity:− Cash on Hand: $27M− Revolver: $467M available2

− Total: $494M

Net debt increased $83M q/q

Leverage ratio of ~4.7x well below covenant restrictions of 7.50x

Proforma leverage ratio of ~4.2x had the MDA sale closed on 3/31

Maturity schedule:− Dec 2023: Revolving Credit Facility − Dec. 2023: $1.0B Notes− Oct. 2024: $2.0B Term Loan B3

Debt Rating: B2 / B

Q1 Liquidity and Debt

1 Net Debt is calculated as the sum of the outstanding amounts of the Term Loan B + 2023 Bonds + Revolving Credit Facility drawn + Finance Leases + Liability balance related to the Space Infrastructure Sales-Leaseback transaction consummated in December 2019. The total debt is then netted against outstanding cash.2Revolver availability equals the total capacity ($500M) – borrowings –outstanding and undrawn letters of credit 3This debt will be further reduced by the net cash proceeds from the sale of MDA of $680M . We paid $472M toward Term Loan B in April 2020 and presume that the remaining proceeds of $208M will go toward paying down this debt as well


$0 $0 $15

$1,035

$1,240

$0

$500

$1,000

$1,500

$2,000

2020 2021 2022 2023 2024

We will use the net proceeds of the MDA Transaction to further execute on our de-leveraging strategy

This graph assumes the 2023 senior notes do not tender. We paid down $472 million on Term Loan B in April 2020. The remaining

proceeds of $208 million will also be used to pay down debt, and we assume that these proceeds will go toward Term Loan B.

Pro forma debt maturities 3/31/2020


Financial Outlook – 2020Other Noteworthy Items‒ Depreciation and Amortization: ~$335M‒ Interest Expense: ~$170M‒ Tax Rate:~0%‒ Share Count: ~62M‒ Bank-defined leverage ratio: < 5.75x

Amortization on Purchased Intangibles

Major Guidance Assumptions

In $ millions

Amortization of acquired intangible assets is based on the period over which the Company expects to receive benefit from those assets. Assets are generally amortized on a straight-line basis.

• No reduction in funding of major programs• Continuation of current social distancing restrictions related to COVID-

19 through the end of the second quarter of 2020 and slow return to normal movements and activities in the second half of the year

• Financial outlook reflects the Company’s judgment based on the information available to the Company at the time of this release, however, the ultimate impact of COVID-19 on the Company’s financial outlook for 2020 remains uncertain

• Refer to the additional discussion on COVID-19 in our Form 10-Q

1 This is a non-GAAP financial measure. Refer to section “Non-GAAP Financial Measures” in the Appendix to these earnings slides.

2020 2021 2022 2023 2024 After

$203 $145 $118 $46 $46 $303

Revenue 2020 Outlook

Earth IntelligenceSpace InfrastructureIntersegment eliminations

Roughly flat, including $40M of deferred roll-offRoughly flat

~$80M

Total Revenue Roughly flat

Adjusted EBITDA1

Earth IntelligenceSpace InfrastructureIntersegment eliminationsCorporate and other expenses

47% to 49%($30M to $40M)

~$25M~$65M

Total Adjusted EBITDA1 $370M to $410M

Operating Cash Flow $150M to $250M

CapEx

$275M to $300M(excluding roughly $40M of capitalized interest)

$315M to $340M(including roughly $40M of capitalized interest)


Multiyear view

Underway Medium-Term Longer-Term

Res

et a

nd S

tabi

lize

De-lever and reduce debt MDA transaction Palo Alto real estate

transaction

Space Infrastructure: Re-engineer and diversify

Earth Intelligence: Drive imagery to flat

revenue and Adj. EBITDA Execute on growing

services backlog

Deploy new operational model

Peak satellite CapEx Ret

urni

ng to

Gro

wth

De-lever and reduce debt via growth in profits and cash flow

Space Infrastructure: Position for growth by

addressing Commercial, Civil, and DoD / Classified markets

Earth Intelligence: Growth driven by

subscriptions / products Execute on backlog + new

wins driven by AI/ML

Declining satellite CapEx and launch World-View Legion

Acc

eler

ate

/ Opt

imiz

e

Top-line growth− Higher Imagery capacity− Advanced analytics products− US & International services− Commercial, Civil, DoD /

Classified space

Margin expansion− Mix and execution− Product / services adoption− OpEx leverage

Lower capital intensity− Smaller manufacturing & satellite

capital footprint− Further penetration of services /

product offering

Optimize capital structure


Appendix In addition to results reported in accordance with U.S. GAAP, we use certain non-GAAP financial measures as supplemental indicators of our financial and operating performance. These non-GAAP financial measures include EBITDA, Adjusted EBITDA, cash Adjusted EBITDA, and free cash flow.

We define EBITDA as earnings before interest, taxes, depreciation and amortization, and Adjusted EBITDA as EBITDA adjusted for certain items affecting comparability as specified in the calculation. Certain items affecting comparability include restructuring, impairments, satellite insurance recovery, CEO severance and transaction and integration related expense. Transaction and integration related expense includes costs associated with de-leveraging activities, acquisitions and dispositions and the integration of acquisitions. Management believes that exclusion of these items assists in providing a more complete understanding of our underlying results and trends, and management uses these measures along with the corresponding U.S. GAAP financial measures to manage our business, evaluate our performance compared to prior periods and the marketplace, and to establish operational goals. Adjusted EBITDA is a measure being used as a key element of our incentive compensation plan. The Syndicated Credit Facility also uses Adjusted EBITDA in the determination of our debt leverage covenant ratio. The definition of Adjusted EBITDA in the Syndicated Credit Facility includes a more comprehensive set of adjustments.

We believe that these non-GAAP measures, when read in conjunction with our U.S. GAAP results, provide useful information to investors by facilitating the comparability of our ongoing operating results over the periods presented, the ability to identify trends in our underlying business, and the comparison of our operating results against analyst financial models and operating results of other public companies.

EBITDA and Adjusted EBITDA are not recognized terms under U.S. GAAP and may not be defined similarly by other companies. EBITDA and Adjusted EBITDA should not be considered alternatives to net (loss) income as indications of financial performance or as alternate to cash flows from operations as measures of liquidity. EBITDA and Adjusted EBITDA have limitations as an analytical tool and should not be considered in isolation or as a substitute for our results reported under U.S. GAAP.

We define cash Adjusted EBITDA as Adjusted EBITDA, as defined above, less the EnhancedView Deferred Revenue.

We define free cash flow as cash provided by operating activities - continuing operations adjusted for the purchase of property, plant and equipment and development or purchase of software, in addition to the Satellite insurance recovery of $183M.


Appendix

MAXAR.COM

© 2020 Maxar Technologies

Documents

First Quarter 2020 Earnings Calls22.q4cdn.com/683266634/files/doc_financials/2020/...available online under the Company’s SEDAR profile at or on the Company’s website at . The