THIRD QUARTER 2021 EARNINGS CALL - November 3, 2021
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THIRD QUARTER 2021 EARNINGS CALL November 3, 2021
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This presentation and associated earnings release, conference call and webcast, which includes a business update, discussion of the financial results as of Sept 30,
2021, 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.
© 2021 Maxar Technologies Company Proprietary – External Recipients 2
KEY HIGHLIGHTS FROM THE QUARTER
1. Solid Revenue growth and Adj. EBITDA1 margin performance
− Revenue +5% without the effect of EV Deferred
− Adj. EBITDA1 margins +380bps without the effect of EV Deferred
2. Robust bookings
− Book-to-bill of 2.2x
− Two GEO awards, EVFO2 renewal, large technology company, numerous other US and International government awards
3. Positive Free Cash Flow3 and improving credit metrics
− Free cash flow positive in 3Q and YTD
− Bank defined leverage of 3.8x
4. Guidance
− Increased outlook for Adj. EBITDA and cash flow
is a non-GAAP financial measure. Refer to section “Non-GAAP Financial Measures” in the Appendix to these earnings slides. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of revenues.
1 This
2 EVFO is the EnhancedView Follow-On
3 Free Cash Flow is defined as cash provided by operating activities - continuing operations adjusted for the purchase of property, plant and equipment and development or purchase of software.
© 2021 Maxar Technologies Company Proprietary – External Recipients 3
YTD PROGRESS ON 2021 PRIORITIES
▪ Key wins: Across all three verticals: USG, international government, and commercial
1 Win in Earth Intelligence ▪ WV-Legion sales: First capacity sale to int’l gov’t; five DAF upgrades signed YTD
▪ Execution: Solid book-ship revenue and margin performance
▪ Key wins: NASA contract mods., National Security Studies and 2 GEO awards
2 Establish a firm foundation for ▪ Investments: Mission architecture and payload strategies
growth at Space Infrastructure
▪ Execution: Continued margin improvement
▪ March ’21 Equity issuance: To reduce leverage and future interest costs
3 Maintain financial flexibility ▪ Liquidity: Sufficient to support growth
▪ Leverage: On a path toward longer-term targets
© 2021 Maxar Technologies Company Proprietary – External Recipients 4
WORLDVIEW LEGION
PROGRAM
▪ First launch expected March to June
2022
▪ Key phases of six-satellite program
remaining:
− Hardware from supply chain
− Hardware integration
− Initial performance testing
− Environmental testing
− Software validation
− Launch campaign
− In-orbit testing
© 2021 Maxar Technologies Company Proprietary – External Recipients 5 Hardware and integration for first Legion satellite substantially complete
WORLDVIEW LEGION REPLACES AND GROWS CAPACITY
BROAD AREA TO FUEL 3D
COVERAGE AT SCALE
© 2021 Maxar Technologies Company Proprietary – External Recipients 6
EARTH INTELLIGENCE: 2020 REVENUE BY CUSTOMER TYPE
USG and agencies Commercial customers
$143 M
$694 M
FY 2020 Rev:
$1,081 M
$164 M
$80 M International defense and intelligence
Roughly a dozen US Allies, including:
USG (EV Deferred)
Note: For comparative analysis, FY 2019 revenue of $1,085M is made up of the following customer types: USG and Agencies: $670M, USG (EV Deferred): $120M, International
Defense and Intelligence: $152M, and Commercial: $143M.
© 2021 Maxar Technologies Company Proprietary – External Recipients 7
MAXAR PROVIDES THE HIGHEST QUALITY DATA COLLECTION, WHICH FUELS
SUPERIOR DERIVED-INFORMATION PRODUCTS AND ANALYTICS POWERED BY
ARTIFICIAL INTELLIGENCE
Our advanced satellite constellation collects consistent imagery where it matters.
Our data fuels diverse AI/ML applications that accurately detect and extract features of
interest with greater consistency.
Our trusted 2D and 3D products provide a realistic view of the world that empowers the
technologies of tomorrow.
© 2021 Maxar Technologies Company Proprietary – External Recipients 8
OUR EARTH INTELLIGENCE PRODUCTS SATISFY A WIDE RANGE OF GEOSPATIAL
NEEDS
SATELLITE GEOSPATIAL PRECISION ON-DEMAND
ACCESS FOUNDATION MAPPING INTELLIGENCE
Direct collection requests and Highest quality satellite Accurate, up-to-date datasets to Industry-leading technology, data
access to Maxar’s imaging imagery, basemaps and 3D create high-quality maps and expertise to solve the most
satellite constellation data over any location on Earth complex geospatial challenges
© 2021 Maxar Technologies Company Proprietary – External Recipients 9
GEOSPATIAL FOUNDATION
Only Maxar provides the trusted geospatial
foundation needed for any mission, at any scale.
▪ Highest resolution, multispectral satellite imagery
▪ Analysis-ready data
▪ Global imagery basemaps
▪ Globe in 3D
© 2021 Maxar Technologies Company Proprietary – External Recipients 10EMERGENT COMMERCIAL INDUSTRIES RELY ON MAXAR’S GEOSPATIAL FOUNDATION
TO SOLVE BUSINESS-CRITICAL CHALLENGES
Automotive and Consumer Risk management and Telecommunications Metaverses,
logistics mapping monitoring simulation and gaming
Enabling high-definition Powering a superior Identify and quantify Next-gen 3D data for the Powerful visualization in
maps customer experience risk at scale networks of tomorrow fully immersive 3D
▪ High-Definition mapping ▪ Highest resolution satellite ▪ Asset monitoring ▪ Highest quality 3D geodata ▪ High-resolution and
▪ Change detection imagery ▪ Near real-time insights ▪ Global coverage accurate 3D models
▪ AI-enabled analytics and ▪ Global coverage ▪ AI/ML workflows ▪ Change detection ▪ AR/VR for simulation and
feature extraction ▪ Up-to-date maps ▪ Daily updates training
15 cm HD1 Imagery basemaps Analysis-Ready Data (ARD)
3D Telco Suite Globe in 3D
Imagery Basemaps SecureWatch SecureWatch
1 15 cm HD is created by applying our proprietary HD technology to our native 30 cm imagery
© 2021 Maxar Technologies Company Proprietary – External Recipients 11DRIVING AUTONOMOUS
TECHNOLOGY FORWARD
High-quality geospatial data is critical to realizing
the vision of safe autonomous vehicles. We help
automotive and logistics partners create their own
high-definition maps or enrich their existing
navigation data to support program development
for improved safety and customer experience.
15 cm HD1 - Maxar is the first company to deliver
native 30 cm resolution and derived 15 cm high-
definition imagery, delivering clearer, richer images
that empower better decision-making through
improved situational awareness.
1 15 cm HD is created by applying our proprietary HD technology to our native 30 cm imagery
© 2021 Maxar Technologies Company Proprietary – External Recipients 121215 CM HD1 IS UNIQUE IN THE MARKETPLACE AND ENABLES CUSTOMERS TO
BETTER EXTRACT MORE MEANINGFUL INFORMATION
▪ Improved aesthetics
▪ Increased usability
▪ Improved feature identification
▪ Increased precision with machine learning algorithms
1 15 cm HD is created by applying our proprietary HD technology to our native 30 cm imagery
© 2021 Maxar Technologies Company Proprietary – External Recipients 13UNLOCKING LOCATION INTELLIGENCE
Reliable, up-to-date digitized maps are key for
location-based services such as 911 emergency
response, ride-hailing and delivery businesses.
Accuracy matters for mobile apps based on location
search features. And with the explosion of local
search, having the best map is more important
than ever.
Vivid imagery basemaps provide a visually
consistent, predictable foundation to extract
ground features, update and expand maps that
reflect reality for local projects or missions that
cross the globe.
© 2021 Maxar Technologies Company Proprietary – External Recipients 1414MAXAR’S VIVID IMAGERY BASEMAPS PROVIDE
UNPARALLELED QUALITY
Solutions from city- to global-scale:
▪ Better than 5 m CE90 global accuracy supports
reliable maps and data layers
▪ 30 cm native resolution with advanced processing
provides beautiful, clear basemaps
▪ Minimum annual basemap refreshes offer
current imagery layers with year-over-year
consistency
▪ Rapid processing and flexible delivery options ensure
a seamless integration into products and workflows
© 2021 Maxar Technologies Company Proprietary – External Recipients 1515MONITORING CHANGING GROUND
CONDITIONS
Natural disasters, including storms, fire and
earthquakes, and infectious diseases such as COVID-
19 have caused some of the biggest losses year after January 28, 2020 May 9, 2020
year, which is why it has become so important to
understand events in real time with high-cadence and
high-resolution satellite imagery and analytics.
Analysis-Ready Data (ARD) delivers time-series
imagery ready for immediate use, accelerating
understanding of the situation on the ground,
uncovering trends and patterns and expediting September 16, 2020 January 5, 2021
decision-making.
Maxar’s analysts ran a car detection analysis to track how
COVID-19 testing activity at Dodger Stadium changed over
the course of the pandemic. The consistency of the images
within the Analysis-Ready Data (ARD) stack allows Maxar’s
algorithms to produce accurate car counts for each image. March 18, 2021 June 6, 2021
© 2021 Maxar Technologies Company Proprietary – External Recipients 1616HIGHER CONFIDENCE IN AI/ML
OUTPUTS FROM MAXAR’S ANALYSIS-
READY DATA (ARD)
▪ Accelerated pixel-to-answer workflows
▪ More accurate results
▪ Lower training data generation costs
▪ Increased usable content
▪ On-demand ordering
© 2021 Maxar Technologies Company Proprietary – External Recipients 1717NEXT-GEN 3D GEODATA
FOR NEXT-GEN NETWORKS
Cities are rapidly growing—as are customer
expectations around wireless connectivity and signal
reliability. The 5G networks of tomorrow will rely on a
signal so sensitive it can be blocked by the palm of
your hand, which makes network planning even
more complicated.
Maxar’s next-gen 3D suite provides cost-effective,
current, accurate and highly detailed geodata
optimized for improving or planning modern networks.
© 2021 Maxar Technologies Company Proprietary – External Recipients 1818MAXAR IS LEADING THE WORLD IN TRANSITIONING FROM 2D MAPPING
TO 3D IMMERSIVE EXPERIENCES
CLUTTER CLASSES VECTOR BUILDINGS 3D SURFACE MODEL DIGITAL SURFACE MODEL DIGITAL TERRAIN MODEL
© 2021 Maxar Technologies Company Proprietary – External Recipients 19FROM SIMULATIONS AND TARGETING EXERCISES IN WHICH SOLDIERS NEED A
LIFELIKE VIEW OF THE THEATER OF OPERATIONS
Faced with sophisticated adversaries, today’s warfighter
requires familiarity with an area before deployment.
Training, planning and rehearsal demand realistic 3D
situational awareness—as well as the ability to
georegister disparate information sources. Visualization
is critical to success, yet traditional approaches are
limited in scale and/or quality.
Maxar’s accurate and realistic 3D representation
enables lifelike flight simulations and precise
environments to train and simulate mobility and tactical
planning. As proof of the importance of a synthetic
training environment to the modern military, Maxar was
awarded a $95 million contract to support its One World
Terrain program.
© 2021 Maxar Technologies Company Proprietary – External Recipients 2020TO THE NAVIGATION PLANS OF
AUTONOMOUS VEHICLES, WHERE
REAL-WORLD OBSTRUCTIONS
INFORM THE SAFEST ROUTES
FOR DRONE DELIVERIES AND
SURVEYING MISSIONS.
Maxar’s highly detailed and dynamic 3D data
delivers the accuracy and precision needed for
drones to deliver critical medical resources to
communities and on-ground teams.
© 2021 Maxar Technologies Company Proprietary – External Recipients 2121AND BEYOND THE VIEW OF MORE
TRADITIONAL GEOSPATIAL USE
CASES, THE SELF-AWARE
TECHNOLOGIES OF TOMORROW
ARE IRREFUTABLY TIED TO 3D
DIGITAL TWINS.
The Globe in 3D provides a foundational
dataset for building experiences in
simulation, gaming and extended reality.
© 2021 Maxar Technologies Company Proprietary – External Recipients 2222THE REALISTIC, ACCURATE AND CONSISTENT 3D VIEW PROVIDED BY MAXAR IS
THE ONLY ONE THAT CAN RELIABLY SUPPORT THESE SIMULATION AND
PLANNING NEEDS GLOBALLY.
© 2021 Maxar Technologies Company Proprietary – External Recipients 23Q3 FINANCIAL RESULTS Q3 Rev. (in millions) and Adj. EBITDA1 Margins
$500
$436 $437 $437
$416
▪ Q3 Results without effects of EV Deferred1
− Revenue up 5% y/y $300 25.9% 25.9%
25.7%
22.1%
− Driven by recent commercial awards at SI,
growth at EI $100
Q3'20 Q3'21
− Adj. EBITDA1 margin up 380 bps y/y
As Reported Without Effects of EV Deferred
− Earth Intelligence and Space Infrastructure margin
expansion
YTD Q3 Rev. (in millions) and Adj. EBITDA1 Margins
▪ Q3 Net Income of $14M and Diluted EPS of $ 0.19 $1,400 $1,302 $1,302
$1,256
$1,176
▪ YTD Results without effects of EV Deferred
$1,000
− Revenue up 11% y/y
24.0% 24.0%
26.0%
− Adj. EBITDA margins up 300 bps y/y $600 21.0%
$200
YTD Q3'20 YTD Q3'21
As Reported Without Effects of EV Deferred
1 Theseare non-GAAP financial measures. Refer to section “Non-GAAP Financial Measures” in the
Appendix to these earnings slides.
© 2021 Maxar Technologies Company Proprietary – External Recipients 24 24EARTH INTELLIGENCE – Q3 Q3 Rev. (in millions) and Adj. EBITDA1 Margins
$300
RESULTS $274
$254
$271 $271
$200 46.7% 45.8% 45.8%
▪ Q3 Results without effects of EV Deferred1 42.5%
− Revenue up 7% y/y
− Driven primarily by increases from commercial, as well $100
Q3'20 Q3'21
as international defense and intelligence customers
As Reported Without Effects of EV Deferred
− Offset modestly by decrease in revenue with the U.S.
government
YTD Q3 Rev. (in millions) and Adj. EBITDA1 Margins
− Adj. EBITDA1 margins up 330 bps y/y $900
$823 $804 $804
− Margin expansion on contracts with commercial and $743
international defense and intelligence customers
▪ YTD Results without effects of EV Deferred $600 49.5% 45.0% 45.0%
44.0%
− Revenue up 8% y/y and Adj. EBITDA margins consistent
− Growth driven by increases from international defense and
$300
intelligence and commercial customers YTD Q3'20 YTD Q3'21
As Reported Without Effects of EV Deferred
1 Theseare non-GAAP financial measures. Refer to section “Non-GAAP Financial Measures” in the
Appendix to these earnings slides.
© 2021 Maxar Technologies Company Proprietary – External Recipients 25 25SPACE INFRASTRUCTURE – Q3 Q3 Rev. (in millions) and Adj. EBITDA1 Margins
RESULTS
$200 $181 $180
▪ Revenue down 1% y/y
− Reduction in revenues for U.S. government $100 7.8%
contracts, partially offset by an increase in volumes 6.6%
on commercial programs
▪ Adj. EBITDA1 margins up 120 bps y/y $0
Q3'20 Q3'21
− Improved profit profile on recent awards and
decrease in negative EAC impacts YTD Q3 Rev. (in millions) and Adj. EBITDA1 Margins
$600
− Offset by modest indirect and SG&A cost increases $541
$497
▪ YTD Results
− Revenue up 9%
$300
− Adj. EBITDA margins up 860 bps driven primarily by 5.4%
profitability of commercial programs, offset by Sirius (3.2%)
XM-7 charges and an increase in indirect and SG&A
costs $0
YTD Q3'20 YTD Q3'21
is a non-GAAP financial measures. Refer to section “Non-GAAP Financial Measures” in the
1 This
Appendix to these earnings slides.
© 2021 Maxar Technologies Company Proprietary – External Recipients 26 26Q3 CASH FLOWS Q3’21 Operating Cash Flow & CapEx (in millions)
$150 $136
▪ Q3 Cash provided by operations of $136M $75
▪ Q3 Capital expenditures of ($51M) $0
− Driven by WorldView Legion program
($51)
($75)
▪ YTD Results Op. Cash Flow CapEx
− Cash provided in operations of $186M
YTD Q3’21 Operating Cash Flow & CapEx (in millions)
− Capital expenditures of ($156M) $200 $186
$0
($156)
($200)
Op. Cash Flow CapEx
© 2021 Maxar Technologies Company Proprietary – External Recipients 27 27Q3 LIQUIDITY AND DEBT
▪ Liquidity:
− Cash on hand: $36M
− Revolver: $472M available2 Net Debt1 ($M)
− Total: $508M
▪ Leverage ratio of ~3.8x well below covenant ceiling $3,000
of 7.50x $2,485 $2,512
$2,189 $2,224
▪ Maturity schedule: $2,140
$2,000
− Dec 2023: Revolving Credit Facility
− Dec 2023: $500M Notes
− Oct 2024: $1.4B Term Loan B
− Dec 2027: $150M Notes $1,000
Q3'20 Q4'20 Q1'21 Q2'21 Q3'21
▪ Debt Rating: B2 / B 1 We define Net Debt as the sum of total debt from our balance sheet excluding debt discount and issuance
costs plus the lease liability balance related to the Space Infrastructure sale leaseback transaction
consummated in December 2019 netted against cash and cash equivalents.
2Revolver availability equals the total capacity ($500M) – borrowings –outstanding and undrawn letters of
credit
© 2021 Maxar Technologies Company Proprietary – External Recipients 28 28FINANCIAL OUTLOOK – 2021
Revenue 2021 Outlook Other Noteworthy Items
▪ Depreciation and Amortization: ~$295M
▪ Interest Expense: ~$165M (Includes $41M extinguishment)
Earth Intelligence $1,060M - $1,085M ▪ Tax Rate:~0%, before discrete items
Space Infrastructure $740M - $760M ▪ Weighted Average Share Count: ~71M Basic, ~73M Diluted
Intersegment eliminations (~$65M) ▪ Bank-defined leverage ratio: < 6x
Total Revenue $1,735M – 1,780M
Amortization of Finite-lived Intangibles
In $ millions
Adjusted EBITDA1
2021 2022 2023 2024 2025 After
$190 $176 $80 $65 $54 $330
Earth Intelligence $465M - $475M
Space Infrastructure $45M - $65M Amortization of acquired intangible assets is based on the period over which the
Intersegment eliminations (~$25M) Company expects to receive benefit from those assets. Assets are generally amortized
on a straight-line basis. Table as presented in 2020 Form 10-K.
Corporate and other expenses (~$80M)
Total Adjusted EBITDA2 $405M to $435M
Major Guidance Assumptions
▪ No reduction in funding of major programs
▪ Financial outlook reflects the Company’s judgment based on the
Operating Cash Flow $260M to $290M
information available to the Company at the time of this release,
however, the ultimate impact of COVID-19 on the Company’s
$190M to $210M financial outlook for 2021 remains uncertain
(excluding roughly $30M of capitalized interest) ▪ Refer to the additional discussion on COVID-19 and other potential
CapEx risks in our Form 10-Q
$220M to $240M
(including roughly $30M of capitalized interest)
1 This is a non-GAAP financial measure. Refer to section “Non-GAAP Financial Measures” in the Appendix to these earnings slides.
2 We are unable to provide guidance for net income due to uncertainties relating to the size of adjustments that may be necessary as well as factors that could affect our interest, taxes, depreciation and amortization as noted under Other Noteworthy Items above.
© 2021 Maxar Technologies Company Proprietary – External Recipients 29APPENDIX
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, Adjusted EBITDA margin, Adjusted EBITDA Without Effects of EV Deferred, Adjusted EBITDA Without Effects of EV Deferred margin, Free Cash
Flow and Net Debt.
We define EBITDA as earnings before interest, taxes, depreciation and amortization, Adjusted EBITDA as EBITDA adjusted for certain items affecting the comparability of our ongoing operating results as
specified in the calculation and Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. Certain items affecting the comparability of our ongoing operating results between periods include
restructuring, impairments, satellite insurance recovery, gain (loss) on sale of assets, 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 that may result in a different calculation therein.
We define Adjusted EBITDA Without Effects of EV Deferred as Adjusted EBITDA, as defined above, less EnhancedView Deferred Revenue. We define Adjusted EBITDA Without Effects of EV Deferred
margin as Adjusted EBITDA margin, as defined above, less EnhancedView Deferred Revenue. Under the EnhancedView Follow-On agreement, we received advanced payments from the U.S. government
during the construction phase of the WorldView-1 satellite, which was more than one year before capacity was made available to them. The effect of imputing interest on these advanced payments was to
increase contract liabilities with an offsetting charge to interest expense. As capacity was provided to the customer, revenue was recognized and the contract liabilities balance decreased. The remaining
revenue was fully recognized as of August 31, 2020. We are presenting both revenue Without Effects of EV Deferred and Adjusted EBITDA Without Effects of EV Deferred to facilitate a year-over-year
comparison.
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.
We define Net Debt as the sum of total debt from our balance sheet excluding debt discount and issuance costs plus the lease liability balance related to the Space Infrastructure sale leaseback transaction
consummated in December 2019 netted against cash and cash equivalents.
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, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA Without Effects of EV Deferred, Adjusted EBITDA Without Effects of EV Deferred margin, Free Cash Flow and Net Debt are not
recognized terms under U.S. GAAP and may not be defined similarly by other companies. EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA Without Effects of EV Deferred, Adjusted
EBITDA Without Effects of EV Deferred margin, Free Cash Flow and Net Debt 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, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA Without Effects of EV Deferred, Adjusted EBITDA Without Effects of EV Deferred
margin, Free Cash Flow and Net Debt 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.
© 2021 Maxar Technologies Company Proprietary – External Recipients 30Three Months Ended Nine Months Ended
APPENDIX September 30, September 30,
2021 2020 2021 2020
($ millions)
Net income (loss) $ 14 $ 85 $ (25) $ 343
Income tax benefit - (22) (10) (22)
Interest expense, net 25 36 127 133
Interest income (1) (2) (2) (3)
Depreciation and amortization 74 95 221 274
EBITDA $ 112 $ 192 $ 311 $ 725
Income from discontinued operations, net of tax — (1) — (337)
Transaction and integration related expense 1 2 1 6
Impairment loss — — — 14
Reduction of gain on sale leaseback — 4 — 4
Gain on remeasurement of Vricon equity interest — (85) — (85)
Total Adjusted EBITDA $ 113 $ 112 $ 312 $ 327
Adjusted EBITDA:
Earth Intelligence $ 124 $ 128 $ 362 $ 407
Space Infrastructure 14 12 29 (16)
Intersegment eliminations (5) (7) (17) (21)
Corporate and other expenses (20) (21) (62) (43)
Total Adjusted EBITDA $ 113 $ 112 $ 312 $ 327
EnhancedView deferred revenue (recognized within Earth Intelligence segment): - (20) — (80)
Total Adjusted EBITDA Without Effects of EV Deferred $ 113 $ 92 $ 312 $ 247
Revenues:
Earth Intelligence $ 271 $ 274 $ 804 $ 823
Space Infrastructure 180 181 541 497
Intersegment eliminations (14) (19) (43) (64)
Total revenues $ 437 $ 436 $ 1,302 $ 1,256
EnhancedView deferred revenue (recognized within Earth Intelligence segment): — (20) — (80)
Total revenues Without Effects of EV Deferred $ 437 $ 416 $ 1,302 $ 1,176
Net income (loss) margin 3.2% 19.5% (1.9%) 27.3%
Total Adjusted EBITDA margin 25.9% 25.7% 24.0% 26.0%
Total Adjusted EBITDA Without Effects of EV Deferred margin 25.9% 22.1% 24.0% 21.0%
Earth Intelligence revenues Without Effects of EV Deferred 271 254 804 743
Earth Intelligence Adjusted EBITDA Without Effects of EV Deferred 124 108 362 327
Free Cash Flow:
Cash provided by operating activities - continuing operations $ 136 $ 115 $ 186 $ 181
Purchase of property, plant and equipment and development or purchase of software (51) (96) (156) (224)
Free Cash Flow $ 85 $ 19 $ 30 $ (43)
© 2021 Maxar Technologies Company Proprietary – External Recipients 31MAXAR.COM © 2021 Maxar Technologies Company Proprietary – External Recipients
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