DFW Aerospace Defense Forum XCOR CORP December 2015 MARKET - - PDF document

The Aerospace & Defense Forum Dallas/Ft. Worth Chapter December 10, 2015 1

DFW Aerospace Defense Forum XCOR CORP

December 2015

MARKET OVERVIEW

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HISTORY HISTORY OF THE SPACE OF THE SPACE MARKET MARKET

Early space market government driven

• Missions were limited to government priorities
• Frequency was driven by single customer (government)
• Cost a non issue

Technology was determined by government

• Type of missions, launch and frequency
• Disposable launch
• Vertical launch and limited recovery

High cost mission programs

• Reusability impossible

Applications

(Missions)

Traditional Aerospace

High cost infrastructure with few customers, low launch rate, high cost per flight

Market Limiting due to cost, safety, capabilities and availability

Infrastructure

(Regulatory, Launch pads, etc.)

Platform

(Launch vehicles)

CURRENT/NEAR TERM MARKET FOR SPACE

Current generation technology is focused on several areas

• Using private enterprises to make established, government and scientific missions more affordable
• Commercial efforts to advance technology for space platforms and missions

Multiple market segments are seeing opportunities in space

• Communications
• Science
• Manufacturing
• Security
• Mining
• Tourism
• Space maintenance
• Medical
• Point to point capabilities

Cost, capabilities and frequency remain limiting factors to opening the market to other potentially viable missions.

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FUTURE WINNERS WILL COMBINE LOW COST WITH HIGH FLEXIBILITY

History Most rocket launches are very costly and designed to carry large freight. Launch lead time can take years, and smaller freights often share rides making timing and destination inflexible Future Reusable launch vehicles will make launch schedules much more flexible and a process of weeks/days rather than years History During the 80s and 90s the cost

• f launching was secondary (e.g.

Cost per kg to Low Earth Orbit at ~$ 15K/kg - $ 30K/kg range) Future Enablers of the future space industry are in a 'race' to drive down the cost to launch (e.g. cost per kg to LEO is currently at a fraction of prior costs for SpaceX and will further decrease by future initiatives) High High Low Low High High Low Low

Launch costs Launch costs Flexibility Flexibility

TRADITIONAL FUTURE WINNERS MOST NEW SPACE INITIATIVES

OUR FIT IN THE MARKET

Infrastructure

(Regulatory, Launch pads, etc.)

Applications

(Missions)

Platform

(Launch vehicles)

Applications

(Missions)

Infrastructure

(Regulatory, Launch pads, etc.)

Platform

(Launch vehicles) XCOR changes the game

XCOR’s platforms are more capable, accessible, affordable and serviceable.

Infrastructure

(Regulatory, Launch pads, etc.)

Traditional Aerospace

High cost infrastructure with few customers, low launch rate, high cost per flight

New Space

Low cost infrastructure, high flight rate,

• pens many new markets for large

numbers of customers

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THE NEW SPACE INDUSTRY

XCOR THE COMPANY

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SPECIFIC MARKET OPPORTUNITIES

FOCUS ON SPECIFIC MARKET OPPORTUNITIES:

• Rocket engines
• Wet Leases of spacecraft
• Payloads and scientific market
• Space tourism
• Ancillary revenue streams (*)
• Orbital markets (*)

* Future markets and opportunities for XCOR

u

With diverse, highly profitable revenue streams, the Company will be positioned to either continue to expand its cash generating business model or be a potential acquisition target for financial or strategic buyers.

XCOR VISION

XCOR VISION

• Space offers boundless technology and business opportunities
• To open market: frequency must increase, costs drop

and capabilities dramatically improve

• Keys to commerciality of space are reusability
• Engines and vehicles must have high usage rates, low serviceability

requirements (quick turn times) and long lifespan

Diverse capabilities, accessibility and affordability will drive mission development.

Frequent Flights Lessons Learned Safer Flight Lower Cost

High tempo flight operations are enabled by true reusability, rapid deployment and minimal maintenance

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XCOR MISSION

XCOR MISSION Through developing and producing highly reusable, and affordable engines and vehicles with low service requirements, XCOR provides platforms to dramatically increase the viability of space missions and opportunities across diverse markets

> INSTANT REUSABILITY

NEW SPACE

High High Low Low High High Low Low

Launch costs Launch costs Flexibility Flexibility

TRADITIONAL MOST NEW SPACE INITIATIVES

HIGHLIGHTS HIGHLIGHTS IN THE HISTORY IN THE HISTORY OF XCOR OF XCOR

1999 2001 2003 2005 2007 2009 2011 2013 2015

Further developed rocket engine (e.g. LOX/Methane Engine) Founded in 1999 Development of X-Racer Production agreement with Space Florida Completing 65+ manned rocket flights, including 7 flights in one day Development of EZ-Rocket Candidate for ULA agreement for ACES upper stage engine (exp. Jan ‘16) Near future: Lynx Mark II and XCOR Orbiter

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PRODUCT EVOLUTION

XCOR ENGINES Low cost, reusable XCOR EZ- ROCKET Demonstrated cost per flight at $900 XCOR X-RACER 7 flights in one day with 10 minute turnaround. Technology proven for Lynx system. XCOR SUBORBITAL LYNX (current) Carries people, payloads and scientific experiments to 100km XCOR ORBITAL (near future) Two stage air launched fully reusable orbital launch system

Our team has accumulated over 4,000 engine firings and has safely flown a piloted rocket operated demonstrator aircraft 66 times without a single incident. Safety has our highest priority.

Evolutionary step by step approach.

BUSINESS DIVISIONS

PAYLOAD MISSIONS ROCKET ENGINES SPACE TOURISM SPACECRAFT (WET LEASE)

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PRODUCTS & SERVICES

BUSINESS LINE 1: INSTANTLY REUSABLE ENGINES

XCOR Aerospace position

• XCOR rocket engines are pump fed, modular and

demonstrated with restartability, reliability and reusability

• Instant reusability: fly under rocket power, land, re-

fuel, perform a check list and take off again

• No use of hypergolics, but rather non-toxic

bi-propellants Main competitors

The Aerospace & Defense Forum Dallas/Ft. Worth Chapter December 10, 2015 9

BUSINESS LINE 2: WET LEASE

XCOR Aerospace position

• Two-seat spacecraft that makes use of standard

runway; Lynx can fly up to 4 times a day, every day

• Engines designed to be used thousands of times
• Ability to carry and launch scientific and industrial

equipment (payloads) into LEO

• Possibility to sell, build and operate under wet

lease Main competitors

THE XCOR LYNX

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BUSINESS LINE 3: PAYLOADS/SCIENTIFIC RESEARCH

XCOR Science & Payloads position

• Low cost compared to substitute competitors
• Frequent access, short lead time
• Multi-mission payload capabilities in one flight
• Missions include: microgravity research, in-situ

sampling, remote sensing, micro-satellite launches, tech development and astronaut training Main competitors

BUSINESS LINE 4: TOURISM

XCOR Space Expeditions position

• Unlike any of the competitors passengers travel in

the co-pilot’s seat

• Horizontal takeoff, supersonic in T+60 sec, and

Mach 2.9 at T+180 seconds

• Giant canopy with nearly 360 degree view from

above Main competitors

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LYNX FLIGHT PROFILE XCOR SPACE EXPEDITIONS: CORPORATE PARTNERS

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TEAM

CEO CCO COO

BOARD- MEMBERS KEY MANAGEMENT TEAMS

XCOR.COM /XCOR @XCOR