MDA Space (MDA) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase 2024 summary

Market trends and growth outlook

• Experiencing 25%-30% annual growth, expected to continue for 3-5 years as the global space market expands toward CAD 1.8 trillion by 2035.

• Lower launch costs and increased government and commercial participation are driving market expansion.

• Diversified global revenue base, with both government and commercial customers, and a strong pipeline of over CAD 20 billion in opportunities.

• Backlog has doubled since IPO in 2021, now near CAD 4.8 billion, with expectations to exceed CAD 5 billion by year-end.

• Net cash flow positive status expected this year, one year ahead of schedule, with sustained 20% EBITDA margin.

Business segments and technology focus

• Geointelligence specializes in Synthetic Aperture Radar satellites, with CHORUS, a next-gen constellation, launching within 18 months.

• Satellite Systems segment focuses on MDA AURORA, a digital satellite product for broadband, direct-to-device, and IoT communications.

• Robotics and Space Operations includes proximity sensors, space robotics (SKYMAKER), and major projects like Canadarm3 for the Gateway lunar station.

• Military applications are growing, with increased demand for resilient low Earth orbit networks and radar-based Earth observation.

• Expansion into lunar rover services and Moon-based communication networks as-a-service.

Competitive positioning and execution

• Transitioned from Maxar, gaining new satellite prime contracts due to strong performance, technical solutions, and firm fixed pricing.

• Technological edge in digital satellites, up to two years ahead of competitors, driving high pipeline conversion.

• Digital satellites offer dynamic beam forming, higher efficiency, and cost savings, enabling customers to reduce constellation size and launch costs.

• Production ramping to two satellites per day, with 240 sold for delivery over 3-4 years, and facility expansion underway.

• Backlog consists of signed, funded contracts, with unique ATP arrangements for some large projects.