4Q17 and Full Year Results February 22, 2018 Full year pro forma - PowerPoint PPT Presentation

4Q17 and Full Year Results February 22, 2018

Full year pro forma financial results Pro-forma Revenue* Adj. EBITDA* and Adj. EBITDA Margin $800 $738 $739 $2,408 $2,500 $700 $2,308 Flat $600 -4% $500 $2,000 32.0% $400 30.7% $300 $1,500 $200 $100 $1,000 $- 2016 2017 2016 2017 * In USD Millions * In USD Millions  Revenues driven by growth in Imagery and Services, offset by headwinds in Space Systems  Solid margin performance driven by pricing discipline and cost controls 2

2017 Key highlights  Completed DigitalGlobe acquisition Adj. Free Cash Flow* — Integration activities in full swing $131.0 $130.0  US Access Plan progressing $80.0 — Key wins announced and security clearance in Palo Alto achieved $30.0  Added key wins to the backlog $(1.0) — Across all three segments $(20.0) 2016 2017  Solid cash generation * In USD millions. 2017 excludes $99M in acquisition related expenses — Working capital discipline Pro forma 2017 Revenues $2.3B  Debt-to-EBITDA finished the year at 4.0x — Well within covenant ceiling Imagery  Made key operating hires $802M — Dario Zamarian, President of SLL Space Systems $1.2B — Mike Greenley, President of MDA in Canada  New operating segments & reporting currency Imagery $260M — To better align with served markets 3

Business environment  Space Systems — GEO Comsat market remains challenged near-term — RCM program winding down — LEO comms. and E/O opportunities continue — US Access plan progressing  Imagery — Commercial driven by increasing use cases — International Defense & Intelligence remains robust — USG stable  Services — DoD and Classified budgets appear well supported — Pipeline continues to build 4

Strategic priorities for 2018  Integration of MDA and DigitalGlobe — Cost and revenue synergies — Still on target to achieve $55M to $110M USD (i.e. $75M to $150M CAD )  US Access Plan to address largest available space market — Develop DoD and classified pipeline — Continue bid and proposal activity in Civil Space  Reposition Space Systems for longer-term revenue and profit growth — Right size facilities for the current GEO market environment — Invest in new payloads and electronics to drive future opportunities — Pursue LEO communications and earth observations markets — Support Canadian defense and space priorities  Continue to invest in Imagery capacity and future growth drivers — WorldView – Legion — Platform and machine learning  Drive growth in our Services business — Leverage our increased scale and breadth — Commercialize existing capabilities 5

Q4 pro forma financial results Adj. EBITDA* and Adj. EBITDA Margin Pro-forma Revenue* $700 $200 $185 $185 Flat $595 $600 $552 $150 -7% $500 33.5% $100 $400 31.1% $50 $300 $200 $- 4Q16 4Q17 4Q16 4Q17 * In USD Millions * In USD Millions  Revenues driven by growth in Imagery offset by GEO Comsat weakness in Space Systems  Margin performance driven by mix and cost containment 6

Imagery – Q4 pro forma results  Rev growth driven by WV-4 utilization from 4Q Proforma Revs* & Adj. EBITDA Margin DAP installed base, commercial, and platform $250 $207 $193 $200  Margin expansion driven by synergies and cost +7% containment $150 65.0 % $100  Key wins with tech, defense, and auto 64.0 % customers in core and adjacent markets $50 $-  Multiple International Defense & Intelligence 4Q16 4Q17 wins; pipeline remains robust * In USD Millions  Continued Legion constellation planning and investments in commercial and platform 2017 Pro-forma Revenue* and Adj. EBTIDA Margins products $1,000 $802 $765 $800  Key product / contracts in development +5% $600 — Third party Legion pipeline remains robust — Telco product rollout progressing well $400 64.8% — Auto market penetration getting started 63.8% $200 leveraging platform, elevation, and $- imagery products 2016 2017 * In USD Millions 7

Space Systems – Q4 pro forma results  Revenue driven by lower GEO Comsat activity and 4Q Pro-forma Revs* and Adj. EBITDA Margins RCM wind-down, partially offset by increases in $400 Small Sat and US government $335 $350 $284 $300  Margins driven by lower volume, offset by cost $250 -15% containment $200 18.1% $150 16.5% $100  Fair share of GEO comm. orders; solid civil orders; $50 pipeline growing $- — Deep Space Gateway, Star One D2 4Q16 4Q17 * In USD Millions  US Access Plan progressing — Palo Alto facility clearance 2017 Pro-forma Revenues* and Adj EBITDA Margins $1,500 $1,400 $1,247  DigitalGlobe Legion -11% — Synergies being realized $1,000 18.4%  Future opportunities 17.4% $500 — Canadian Surface Combatant — GEO & LEO comm / Earth observation $- 2016 2017 * In USD Millions 8

Services – Q4 pro-forma results 4Q Revs* and Adjust EBITDA Margins  Rev. decline driven by tough comps & contract delays $68 $70 $61 $60 -10 %  Margins driven by mix $50 $40 17.5 % $30  USG driven by Predictive Analytics and Machine 15.5% $20 Learning for both DoD and IC $10 $-  ID&I growth driven by 3D feature extraction and 4Q16 4Q17 analytic services * In USD Millions  Continued to invest and develop in the cloud 2017 Pro-forma Revenues* and Adj. EBITDA Margins — Multisource intelligence collection and data $260 analytics in Amazon C2S environment $260 $243 +7% $220  Commercialization of Data & Analytics Services 13.8% $180 — Via apps like DigitalGlobe SecureWatch 12.4% $140  Chasing revenue synergies $100 2016 2017 — Optical and radar imagery utilizing the combined capabilities of Maxar * In USD Millions 9

Cash flow Adj. Free Cash Flow* $200 $169  Collections of vendor financing on legacy $150 contracts $100  Better working capital management $42 $50  Cash deployed to support growth of business and manage debt levels $- 4Q16 4Q17 * In USD millions. 4Q17 excludes $78M in acquisition related expenses 10

Net debt balances Net Debt* $3,500 $2,976  Net debt increased y/y to fund DigitalGlobe $3,000 acquisition $2,500 $2,000  Debt-to-EBITDA of 4.0x well within covenant $1,500 restrictions $1,000 $600 $500  No material debt maturities until 2020 $- 2016 2017 * In USD millions 11

Financial outlook – 2018 Total Revenue Growth -4% to -2% Imagery 5% to 7% Space Systems -12% to -11% Services 9% to 11% Total Segment Adj. EBITDA Margin ~ 34.0% Imagery ~ 63.5% Space Systems ~ 16.5% Services ~ 12.0% Corporate Expenses (in millions) ($31) to ($35) Net Interest Expense (in millions) ($200) to ($210) D&A (excluding acquisition amort., in millions ) ($217) to ($219) Adjusted EPS $4.50 to $4.70 Operating Cash Flow* (in millions) $300 to $400 Capital Expenditures (in millions) $300 to $350 Tax Rate 13% to 15% Sharecount (millions) ~ 57M * Cash provided by operating activities, excluding acquisition expense, less net interest and securitization payments, and other 12