RKLB 2q 2024 financial presentation

RKLB 2q 2024 financial presentation

• 1. rocketlabusa.com August 8, 2024 Q2 2024 Investor Update Rocket Lab USA, Inc.

• 2. 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 Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, contained in this press release, including statements regarding our expectations of financial results for the third quarter of 2024, strategy, future operations, future financial position, projected costs, prospects, plans and objectives of management, are forward-looking statements. Words such as, but not limited to, “anticipate,” “aim,” “believe,” “contemplate,” “continue,” “could,” “design,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “suggest,” “strategy,” “target,” “will,” “would,” and similar expressions or phrases, or the negative of those expressions or phrases, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are based on Rocket Lab’s current expectations and beliefs concerning future developments and their potential effects. These forward-looking statements involve a number of risks, uncertainties (many of which are beyond Rocket Lab’s control), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Many factors could cause actual future events to differ materially from the forward-looking statements in this release, including risks related to delays and disruptions in expansion efforts; delays in the development of our Neutron rocket; our dependence on a limited number of customers; the harsh and unpredictable environment of space in which our products operate which could adversely affect our launch vehicle and spacecraft; increased competition in our industry due in part to rapid technological development; technological change in our industry which we may not be able to keep up with or which may render our services uncompetitive; average selling price trends; general economic uncertainty and turbulence which could impact our customers’ ability to pay what we are owed; failure of our launch vehicles, spacecraft and components to operate as intended either due to our error in design, in production or through no fault of our own; launch schedule disruptions; supply chain disruptions, product delays or failures; design and engineering flaws; launch failures; natural disasters and epidemics or pandemics; any inability to effectively integrate recently acquired assets; a US government shutdown or delays in government funding; changes in governmental regulations including with respect to trade and export restrictions, or in the status of our regulatory approvals or applications; or other events that force us to cancel or reschedule launches, including customer contractual rescheduling and termination rights; risks that acquisitions may not be completed on the anticipated time frame or at all or do not achieve the anticipated benefits and results; and the other risks detailed from time to time in Rocket Lab’s filings with the Securities and Exchange Commission (the “SEC”), including under the heading “Risk Factors” in Rocket Lab’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 28, 2024 and elsewhere. There can be no assurance that the future developments affecting Rocket Lab will be those that we have anticipated. Except as required by law, Rocket Lab is not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Use of Non-GAAP Financial Measures To supplement our unaudited consolidated financial statements presented on a basis consistent with GAAP, we disclose certain non-GAAP financial measures, including non-GAAP gross margin, operating expenses, research and development expenses, and non-GAAP net selling, general and administrative expenses. These supplemental measures exclude the effects of (i) stock-based compensation expense; (ii) amortization of purchased intangible assets and favorable lease; (iii) non-cash income tax benefits and expenses (iv) depreciation; (v) transaction costs; (vi) change in fair value of contingent consideration; (vii) performance reserve escrow; (viii) provision for income taxes; (ix) loss (gain) on foreign exchange; (x) accretion of marketable securities purchased at a discount; (xi) (gain) loss on disposal of assets; and (xii) employee retention credit. We also supplement our unaudited historical statements and forward-looking guidance with the measure of adjusted EBITDA, where adjustments to EBITDA include share-based compensation, warrant expense related to customers and partners, foreign exchange gains or losses, acquisition related performance reserve and escrow, and other non-recurring gains or losses. These non-GAAP measures should only be viewed in conjunction with corresponding GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance. Non-GAAP financial measures are not in accordance with and do not serve as an alternative for the presentation of our GAAP financial results. We are providing this information to enable investors to perform more meaningful comparisons of our operating results in a manner similar to management's analysis of our business. We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our GAAP results of operations. We encourage investors to review the detailed reconciliation of our GAAP and non-GAAP presentations in our Earnings Release dated August 8, 2024 available on our website at investors.rocketlabusa.com. We have not provided a reconciliation for the forward-looking non-GAAP financial measures because, without unreasonable efforts, we are unable to predict with reasonable certainty the amount and timing of adjustments that are used to calculate these non-GAAP financial measures, particularly related to stock-based compensation and its related tax effects. FORWARD LOOK ING STATEMENTS 2

• 3. 1 Highlights 2 Electron 3 Neutron 4 Space Systems 5 Financial Highlights and Outlook 6 Q&A and Upcoming Events Agenda 3 Q2 | 2024 EARNINGS

• 4. The Ride ROCKETS To use space, first you have to get there. THE END USE CASE SPACE DATA & SE RVICES If you own the rocket and the spacecraft, you can deliver the most valuable part of the space chain - data and services from orbit. It powers our world and demand for it continues to grow. COMPLETE The TOO LS SPACECRAF T The satellites and spacecraft, including their many components and software, that do the doing in space. COMPLETE FUTURE 1 2 3 Uniquely positioned to be a leading end-to-end space company. Right now we deliver launch and spacecraft to those who provide space data and services. We’re positioning ourselves to own that too. By owning the ride to orbit and the spacecraft, we’re at a distinct advantage for establishing our own in-space capabilities. Building an end - toend space company 4 Section 1 | INTRODUCTION

• 5. Section 1 | HIGHLIGHTS 5 $106m Second quarter revenue. Highest revenue quarter to date. 15% 71% $ 1,067M Quarter-on-Quarter revenue increase Year-On-Year revenue increase Backlog as of Q2 2024 Revenue growth driven by increase in launches and significant growth in our space systems business. B iggest quarter in company h istory

• 6. Key accomplishments ELECTRON SECTION

• 7. TIME BASED BILLING Electron Billing 10% 20% 30% 30% 10% Contract Signed L-9 Months L-6 Months L-3 Months Launch Day Electron BUSINESS MODEL Electron delivers what rideshares or other small rockets can’t. This is what drives customers to Electron, but it means launch dates are ultimately driven by customer readiness. PROVEN & RELIABLE LAUNCH ON DEMAND SCHEDULE CONTROL TAILORED ORBITS MULTIPLE LAUNCH SITES 7 MILESTONE BASED BILLING Contract Signed Documentation Delivered Spacecraft Fit Check Mission Readiness Review Launch Day We collect the majority of cash long before lift-off, but only recognize the revenue at launch. Section 2 | Electron

• 8. Section 2 | Electron 8 In a year plagued by launch anomalies and delays across the industry, Electron continues to deliver trusted and reliable access to space. $141m total contract value. increase in launch rate from 2H 2023 to 1H 2024. 100% Electron accounts for of all non-SpaceX orbital U.S. launches in 2024 so far. most launched frequently rocket 64% globally in 2024 (previously 4th). 3rd 17 new Electron launches signed YTD.

• 9. Undisputed leader in small launch Section 2 | Electron 9 Back-to-back NASA launches within 11 days. Tailored constellation deployment. First of 5 booked launches. Rideshare deployed two customers’ satellites to unique orbits 500km apart. 2x dedicated launches building out a constellation for return customer on accelerated timeline. Across nine launches year-to-date we’ve demonstrated differentiated capabilities that show why many satellite operators are prepared to pay a premium for Electron. Highly complex mission launching a satellite to rendezvous with an old rocket body in orbit for a space junk removal demo. NRO launch delivered thorugh a streamlined, commercial approach. Precise deployment to enable Space Situational Awareness mission.

• 10. Strong demand from commercial customers 4 Launches: Confidential Commercial Customer 10 Launches: Synspective • Earth-observation constellation. • Largest Electron launch contract to date. • Repeat customer - Rocket Lab has been the sole launch provider for Synspective to date. • Constellation operator. • Vertical integration: Rocket Lab separation system to be used on all launches. Section 2 | Electron Note: Includes contracts signed after the Q2 2024 close Multi-launch contracts signed with commercial constellation operators. 10

• 11. Critical enabler to the DoD VICTUS HAZE: Selected to design and build a spacecraft, then launch it on Electron with just 24 hours’ notice for the USSF’s Space Systems Command. Validation of our model as an end-to-end space company. 11 STP-S30: A $14.49 mission for the USSF’s Space Systems Command, scheduled to launch within 24 months from Rocket Lab Launch Complex 2 in Virginia. Strong demand with three new contracts further strengthening Rocket Lab’s position as a trusted partner to the DoD for launch and space systems. Section 2 | Electron New Haste Contract: Dedicated suborbital mission for U.S. Government customer. Seven HASTE missions now on the manifest, confirming growing market demand for hypersonic test launches.

• 12. 12 Section 2 | Electron Reached 50 launches faster than any c omm e r c i a l ly developed rocket in h istory On track for Fastest to 100

• 13. 13 P inpo int deployment accuracy Industry margin for deployment is typically, ~15 kilometers. Electron delivered within 8 meters. Demonstrates why Electron is sought-after for the most complex and unique small launch missions: • Rendezvous and proximity operations, • Efficient constellation deployment, significantly reducing phasing time, • Constellation replenishment, • Multiple deployments on same launch to different planes and altitudes, • Customized orbits. Section 2 | Electron

• 14. Key accomplishments neutron SECTION

• 15. Section 3 | neutron 15 Neutron The rocket solving the medium launch shortage • The medium launch monopoly needs breaking. • Demand is strong and growing. From constellations alone, more than 10,000 satellites need launch services by 2030. • Our proven track record, market-led design, and established infrastructure make Neutron the strong choice of new medium rocket. • Neutron plays a critical role in realizing our mission to being an end-to-end space company launching our own satellites. • With Neutron, we’re well-positioned to capitalize on an ~$10B launch TAM in record time. 1 1 Quilty Space “Satellite Demand Outlook 2023”. Excludes Starlink and Chinese/Russian constellations. ROCKET DEVELOPMENT TIMELINES Electron NEUTRON* Falcon 9 New Glenn* 4.8 years 4.3 years 2.8 years 8.1 years 9.2 years 11.0 years Vulcan Ariane 6 YEARS BETWEEN ANNOUNCEMENT AND LAUNCH *Projected first launch date

• 16. 16 D ev e lo pm en t s tat u s Fairing and Canards Stage 2 Tanks Archimedes Engine Hardware in the Loop Testing Stage 1 Tanks VEHICLE infrastructure Engine & Avionics Production Final Assembly and Integration Composites and Structures Production Test Facilities Stage 1 Structure Flight Computers and Avionics Section 3 | neutron Flight hardware in production and qualification for 100% of the vehicle. We’ve built the machine that builds the machine. Launch Pad

• 17. 17 17 Hundreds of critical engine tests completed successfully Activation Completed check-out of all test stand systems including propellant flow tests. Spin Primes Turbopump spun up with timed commands of propellant valves. Ignition Tests Ignition system tested with oxygen flowing. Start-up / Shut-down Ox-rich pre-burner test to characterize start-up and shutdown transients. Archimedes engine Testing 17 Section 3 | NEUTRON

• 18. 18 1818 Section 3 | NEUTRON Major program milestone achieved. Engine performing at 102% throttle. Hot fire completed

• 19. 19 19 Next engines in production • Engine #2 coming off the production line. • Next five engines in production. • Doubled additive manufacturing capacity for large-scale parts. • Developed additive materials to optimize for production rate and cost. • Increased CNC machine utilization – focus on staffing, process efficiency, equipment uptime. • Engine production line gearing up – leveraging process, tooling, quality successes from over 500 Rutherford engines produced & flown to date. 19 Section 3 | NEUTRON

• 20. Structures Fairing Flight hardware fairing panels in manufacture and assembly. Section 3 | NEUTRON Stage 1 Tank Cure of full-scale tank components completed successfully. Stage 2 Tank All components in final stage of manufacturing ahead of assembly and integration to qualify design improvements of the flight tank. Interstage Interstage panels in production to support qualification program 20

• 21. 21 Section 3 | NEUTRON

• 22. 22 22 Automated Fiber Placement machine completed factory trials and installation is underway at Rocket Lab’s Space Structures Complex in Middle River, MD. Establishing this capability in parallel to manual lay up of Neutron structures enables scale up of production rate by end of year. Saving ~150,000 hours per vehicle. A u tomat e d composites production 22 Section 3 | NEUTRON

• 23. 23 23 Launch pad construction continues with fluid systems installation including water tower, gas storage farms, electrical and power equipment. Beginning receipt of long lead cryogenic systems. Offsite fabrication of major launch pad structures and mechanisms in progress. Second integration building for Neutron on track for occupancy in October, exterior building complete. Launch Complex 3 23 Section 3 | NEUTRON

• 24. Key accomplishments Space Systems SECTION

• 25. Section 4 | Space Systems 25 Mo r e t han $ 7 20M in con t ra c t va l u e o f sat e l l i t e s in d ev e lo pm en t , P ro d u c t ion an d O p e rat ion Rocket Lab satellites are increasingly sought after within national security, civil and commercial space programs. 1 Spacecraft VICTUS HAZE Rendezvous and Proximity Operations 2 Spacecraft Mars ESCAPADE Interplanetary 18 Spacecraft Proliferated Warfighter Space Architecture 17 Spacecraft Next generation communications constellation 3 Spacecraft In-space manufacturing and Earth re-entry 1 Spacecraft In orbit spacecraft refueling depot 1 Spacecraft Data Relay Services

• 26. Production Complete on Tw in SAT E L L I T E S FOR NASA MARS MISSION Two tailored satellites designed, built, and tested in just over three years from contract award. 26 Vertical integration strategy at work: Both satellites include our solar cells, reaction wheels, star trackers, separation systems, radios, and flight software. Section 4 | Space Systems Scheduled for launch on Blue Origin’s New Glenn rocket before the Mars transit window closes later this year. Once again, Rocket Lab delivers satellites on time and on budget.

• 27. Expand ing space solar manufactur ing Proposed investment would: • Enable Rocket Lab to further expand in New Mexico, • Increase manufacturing capacity of space-grade solar cells - important components for national defense and security satellites, • Create 100+ new manufacturing jobs. 27 Our Albuquerque, New Mexico facility already produces solar cells and panels for critical space programs incl. • Missile awareness systems, • Flagship science missions including the James Webb Space Telescope, NASA’s Artemis program, Ingenuity Mars Helicopter, and the Mars Insight Lander. • Commercial constellations incl. OneWeb broadband internet satellite constellatio Section 4 | Space Systems Agreed to preliminary terms for $49.4m in proposed federal and state local incentives, including CHIPS Act funding.

• 28. Enabling in- space pharmaceutical processing W2 scheduled for launch in coming months, followed by Earth re-entry and landing in Australia. 28 Program milestones: W2 • Final flight software released. • Completed re-entry trajectory design for landing pre-ship review complete. Program milestones: W3 • Propulsion and avionics decks completed. • Up next: System Integration Review. Section 4 | Space Systems Next Pioneer spacecraft to support commercial pharmaceutical processing in orbit for Varda Space Industries nears completion.

• 29. Con s t e l lat ion p ro d u c t ion u p dat e s 29 Scorpius: $515 million prime contract with Space Development Agency to build 18 spacecraft • Completed successful System Requirements Review/System Design Review. • All major payload and subcontractor suppliers under contract. • Program proceeding on schedule. • Up next: Preliminary Design Review. Section 4 | Space Systems Thunder: $143 million subcontract with MDA to build 17 spacecraft buses for Globalstar constellation • Successfully completed Integration Readiness Review • Power on of the bus completed. • First customer delivery of a full flatsat.

• 30. Introduced Next - G en e rat ion Sat e l l i t e Dispenser 30 • Advanced Satellite Dispenser (ASD) unveiled at the Small Satellite Conference in Logan, Utah. • Cost-effective, versatile, and reliable deployment mechanism for small satellites. • Builds upon our heritage Canisterized Satellite Dispenser (CSD) technology, which has deployed more than 60 satellites over 11 years. • Provides customers with the option to fly with or without canisterization, affording satellite designers increased flexibility to adapt payloads to mission needs. Section 4 | Space Systems Continued innovation from our merchant component businesses.

• 31. Growth s t rat e g y an d appetite supports our vision to be end - to- end space company 31 • Customers want complete mission solutions - launch, satellite design, satellite components and bus manufacture, on-orbit operations management. • Continually evaluating robust pipeline of complementary targets, while being selective and strategic. • Seek to fill gaps in our mission solution offering incl. high value satellite components, payloads. • Focusing on opportunities that enable: − Platform expansion delivering more value to our customers. − Geographic expansion enabling new customer acquisition. − Meaningful revenue scale and profit. Section 4 | Space Systems Satellite Radios Reaction Wheels In-space Propulsion Composite Structures Solar Arrays Star Trackers Flight Software Separation Systems

• 32. 32

• 33. Financial highlights and outlook SECTION

• 34. REVIEW OF REVENUE AND GROSS MARGINS Revenue increased 71% or $44.2M year-on-year, driven by an increase of launches from three to four as well as significant growth in our Space Systems business. Sequential revenue increase of 15%, or $13.5M, driven by growth in our Space Systems business, primarily driven by revenue from our MDA and SDA contracts. Q2 gross margin down slightly sequentially due to a weaker mix in Space Systems 34 71% Year-on-Year revenue increase $39.6 $60.0 $76.9 $22.5 $32.7 $29.4 $0 $20 $40 $60 $80 $100 $120 Q2 2023 Q1 2024 Q2 2024 Revenue and GAAP / Non-GAAP Gross Margin Space Systems ($M) Launch ($M) GAAP GM% - 23.5% Non-GAAP GM% - 31.8% GAAP GM% - 26.1% Non-GAAP GM% - 31.7% GAAP GM% - 25.6% Non-GAAP GM% - 30.7% Section 5 | FINANCIAL OUTLOOK $106M Revenue in Q2 2024 15% Quarter-on-Quarter revenue increase

• 35. 35 $799.7 $772.6 $215.6 $294.0 $0 $200 $400 $600 $800 $1000 $1200 Q1 2024 Q2 2024 Backlog by Segment Space Systems ($M) Launch ($M) Sequential backlog increase quarter-over-quarter of 5%, or $51.3M, driven by strong bookings in our launch business, partially offset by a step up in Space Systems revenue recognition We expect approximately 44% of this backlog to be recognized within 12 months with the remaining 56% to be recognized beyond 12 months. $ 1 ,0 67M 5% Backlog as of Q2 2024 Quarter-on-Quarter backlog increase Section 5 | FINANCIAL OUTLOOK REVIEW OF Backlog

• 36. Chart $38.5 $39.9 $34.3 $34.7 $28.8 $30.5 $22.1 $23.8 $0 $10 $20 $30 $40 $50 $60 $70 $80 Q1 2024 GAAP Q2 2024 GAAP Q1 2024 Non-GAAP Q2 2024 Non-GAAP GAAP & Non-GAAP R&D vs. SG&A Spending R&D ($M) SG&A ($M) 36 GAAP SG&A expense increased primarily due to increases in staff costs and stock-based compensation following our annual merit cycle Non-GAAP SG&A expense increased due to the above reasons, minus stock based compensation GAAP R&D expense increased due to a step up in Neutron development spending, due to ramp-up of Archimedes testing and development along with continued investment in composite structures Non-GAAP R&D expense increased due to the above reasons Section 5 | FINANCIAL OUTLOOK REV IEW OF OPERAT ING EXPENSES Quarter-on-Quarter

• 37. $546.8M in cash and cash equivalents, marketable securities and restricted cash, end of period in Q2 2024. 37 Cash consumed from purchases of property, equipment and software decreased $3.8M sequentially, due to the timing of delivery and of equipment associated with Neutron research, testing and production infrastructure. Cash consumed from Operations increased $10.4M sequentially, driven primarily by working capital Adj EBITDA loss improved $0.5M sequentially due to record revenues, largely offset by increased Neutron program costs Note: Non-GAAP free cash flow is defined as GAAP operating cash flow reduced by purchases of property, equipment and software. Consistent with past practice, we have defined adjusted EBITDA to reflect adjustments for stock-based compensation, transaction costs, depreciation and amortization, FX gains and losses, interest expense, warrant expense, taxes, acquisition related performance reserve escrow, and other recurring and non-recurring items. A reconciliation of our GAAP and non-GAAP presentations in our Earnings Release dated August 8, 2024 Section 5 | FINANCIAL OUTLOOK Non-gaap free cash flow and Adj EBITDA Quarter-on-Quarter -$19.2 -$15.3 -$2.6 -$13.0 -$21.7 -$21.2 -$30 -$25 -$20 -$15 -$10 -$5 $0 Q1 2024 Q2 2024 Q1 2024 Q2 2024 Non-GAAP Free Cash Flow and Adj EBITDA Purchases of property, equipment and software ($M) GAAP Operating Cash Flow ($M) Adj EBITDA Q1 Non-GAAP Free Cash Flow $(21.8M) Q2 Non-GAAP Free Cash Flow $(28.3M)

• 38. Q3 2024 Revenue Outlook • Expect revenue to range between $100 million to $105 million. • Expect Space Systems revenue of $79 million to $84 million. • Currently anticipate Launch Services revenue of approximately $21 million. 38 *Consistent with past practice, we have defined adjusted EBITDA to reflect adjustments for stock-based compensation, transaction costs, depreciation and amortization, FX gains and losses, interest expense, warrant expense, taxes, acquisition related performance reserve escrow, and other recurring and non-recurring items. Note: For a description of other Non-GAAP measures used herein, see our Earnings Release dated August 8, 2024 contained on our website at investors.rocketlabusa.com. `We have not provided a reconciliation for the forward-looking non-GAAP financial measures because, without unreasonable efforts, we are unable to predict with reasonable certainty the amount and timing of adjustments that are used to calculate these non-GAAP financial measures, particularly related to stock-based compensation and its related tax effects. Section 5 | FINANCIAL OUTLOOK Q3 2024 GAAP and Non-GAAP Gross Margins • Expect GAAP gross margin to range between 25 - 27%, driven by favorable mix between Launch and Space Systems, offset by reduced launch cadence. • Expect Non-GAAP gross margin of 30 - 32%. Q3 2024 Adjusted EBITDA • Expect Interest Expense (Income), net: $1 million. • Adjusted EBITDA loss of $31 million to $33 million.* • Basic Weighted Average Shares Outstanding of 498 million. Q3 2024 GAAP and Non-GAAP Operating Expense • Expect GAAP Operating Expenses of $80 million to $82 million. • Expect Non-GAAP Operating Expenses of $69 million to $71 million. FINANCIAL OUTLOOK

• 40. UPCOMING Investor Events 40 Peter Beck CEO World Space Business Week September 16-20, 2024 KeyBanc Virtual NDR September 26, 2024 Adam Spice CFO Adam Spice CFO Morgan Stanley Laguna Conference September 11 - 13, 2024 Adam Spice CFO Satellite Innovation October 22, 2024 Adam Spice CFO