#1mercury systems. 4TH QUARTER AND FULL FISCAL YEAR 2020 FINANCIAL RESULTS Mark Aslett President and CEO Michael Ruppert Executive Vice President and CFO August 4, 2020, 5:00 pm ET Conference call: Dial (877) 303-6977 in the U.S. and Canada, (760) 298-5079 in all other countries Webcast login at www.mrcy.com/investor Webcast replay available by 7:00 p.m. ET August 4, 2020#22 Forward-looking safe harbor statement This presentation contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the acquisitions described herein and to fiscal 2021 business performance and beyond and the Company's plans for growth and improvement in profitability and cash flow. You can identify these statements by the use of the words "may," "will," "could," "should," "would," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," "likely," "forecast," "probable," "potential," and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs, the timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the Company's markets, effects of epidemics and pandemics such as COVID, effects of any U.S. Federal government shutdown or extended continuing resolution, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in, or in the U.S. Government's interpretation of, federal export control or procurement rules and regulations, market acceptance of the Company's products, shortages in components, production delays or unanticipated expenses due to performance quality issues with outsourced components, inability to fully realize the expected benefits from acquisitions and restructurings, or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, increases in interest rates, changes to industrial security and cyber-security regulations and requirements, changes in tax rates or tax regulations, changes to interest rate swaps or other cash flow hedging arrangements, changes to generally accepted accounting principles, difficulties retaining key employees and customers, unanticipated costs under fixed-price service and system integration engagements, and various other factors beyond our control. These risks and uncertainties also include such additional risk factors as are discussed in the Company's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2019, and as updated by the Company's Current Report on Form 8-K filed on April 28, 2020. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made. Use of Non-GAAP (Generally Accepted Accounting Principles) Financial Measures In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the Company provides adjusted EBITDA, adjusted income, adjusted EPS, free cash flow, organic revenue and acquired revenue, which are non-GAAP financial measures. Adjusted EBITDA, adjusted income, and adjusted EPS exclude certain non-cash and other specified charges. The Company believes these non-GAAP financial measures are useful to help investors better understand its past financial performance and prospects for the future. However, these non-GAAP measures should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. Management believes these non-GAAP measures assist in providing a more complete understanding of the Company's underlying operational results and trends, and management uses these measures along with the corresponding GAAP financial measures to manage the Company's business, to evaluate its performance compared to prior periods and the marketplace, and to establish operational goals. A reconciliation of GAAP to non-GAAP financial results discussed in this presentation is contained in the Appendix hereto. © Mercury Systems, Inc.#33 Strong Q4 and FY20 against challenging backdrop Q4 FY20 VS. Q4 FY19 ■ Record bookings up 15% ■ Record backlog up 33% ■ Record revenue up 23% Organic revenue (¹) up 17% ■ Record GAAP net income up 113% ■ Record adjusted EBITDA up 31% Op cash of $28.7M; up 11% ▪ FCF of $17.2M; 35% adj. EBITDA ■ ■ © Mercury Systems, Inc. FY20 VS. FY19 ■ Record bookings up 22% ▪ Record backlog up 33% ■ Record revenue up 22% Organic revenue (¹) up 14% ■ Record GAAP net income up 83% ▪ Record adjusted EBITDA up 21% Record Op cash of $115.2M; up 18% ▪ FCF of $71.9M; 41% adj. EBITDA ■ ■ Notes (1) Organic revenue represents total company revenue excluding net revenue from acquisitions for the first four full quarters since the entities' acquisition date (which excludes any intercompany transactions). After the completion of four fiscal quarters, acquired businesses are treated as organic for current and comparable historical periods.#4COVID-19 update ▪ Mitigated supply chain risks with minimal impact to date ▪ No erosion in talent attraction cadence ▪ Adjusted workplace conditions to improve physical distancing and safety Implemented symptom checking and temperature screening protocols ▪ Mask usage mandatory, as well as face shields in certain areas ■ Contracted with Chief Medical Advisor to provide best practices guidance ▪ Majority of employees to continue to work from home through end of CY Implementing weekly onsite testing at largest manufacturing locations ■ © Mercury Systems, Inc.#55 Industry outlook ▪ Potential risks for extended continuing budget resolution in GFY21 ▪ Possible crowding out of defense spending by fiscal stimulus ▪ Diplomatic and economic tensions driving increased national security threats ▪ Non-national defense electronics supply chain and microelectronics risks rising Bipartisan commitment to defense spending © Mercury Systems, Inc.#66 Trusted microelectronics - A strategic opportunity for Mercury Uniquely positioned to provide DoD trusted, secure microelectronics solutions Aligns with DoD's #1 defense technology priority ▪ Congressional support with bipartisan American Foundries Act of 2020 Next-generation defense electronics company at intersection of tech and defense Making commercial technologies profoundly more accessible to A&D ▪ Investments in embedded security IP and trusted microelectronics paying off © Mercury Systems, Inc.#77 Business outlook ▪ Continue delivering organic revenue growth higher than industry average rate ▪ New business conditions remain robust, much the same as last quarter Benefiting from significant wave of radar, EW and C41 modernization Strong balance sheet to supplement organic growth with strategic M&A ▪ M&A been on hold; deal pipeline robust and activity beginning to pick up ▪ Continue to execute on strategy: strong margins, organic growth, M&A, full integration © Mercury Systems, Inc.#88 Summary - Plan to continue generating shareholder value ▪ Drive ~10% average organic revenue growth supplemented by strategic M&A ▪ Invest in people, new technologies, facilities, manufacturing assets, business systems ▪ Insource more manufacturing; drive stronger operating performance ▪ Grow revenues faster than operating expenses to improve operating leverage Fully integrate acquired businesses to generate cost and revenue synergies © Mercury Systems, Inc.#9Q4 FY20 vs. Q4 FY19 In $ millions, except percentage and per share data Bookings Book-to-Bill Backlog 12-Month Backlog Revenue Organic Revenue Growth (¹) Gross Margin Operating Expenses Selling, General & Administrative Research & Development Amortization/Restructuring/Acquisition GAAP Net Income Effective Tax Rate GAAP EPS Weighted Average Diluted Shares Adjusted EPS (2) Adj. EBITDA (2) % of revenue Operating Cash Flow Free Cash Flow (2) % of Adjusted EBITDA © Mercury Systems, Inc. Q4 FY19 $241.3 1.36 $625.4 451.2 $177.0 4% 45.1% $59.0 30.7 20.3 7.9 $12.8 (1.7%) $0.25 50.7 $0.48 $37.9 21.4% $26.0 $17.1 45% Q4 FY20(3) $278.6 1.28 $831.1 567.7 $217.4 17% 44.4% $70.2 35.5 27.0 7.7 $27.2 (0.9)% $0.49 55.3 $0.72 $49.6 22.8% $28.7 $17.2 35% CHANGE 15% 33% 23% (0.7 pts) 19% 113% 96% 50% 31% 11% 1% Notes (1) Organic revenue represents total company revenue excluding net revenue from acquisitions for the first four full quarters since the entities' acquisition date (which excludes any intercompany transactions). After the completion of four fiscal quarters, acquired businesses are treated as organic for current and comparable historical periods. (2) Non-GAAP, see reconciliation table. (3) Effective as of July 1, 2019, the Company's fiscal year has changed to the 52-week or 53- week period ending on the Friday closest to the last day of June. All references in this presentation to the fourth quarter and full fiscal 2020 are to the 53-week period ended July 3, 2020, and to the first quarter of fiscal 2021 and full fiscal 2021 are to the quarter ending October 2, 2020 and 52- week period ending July 2, 2021.#1010 FY20 vs. FY19 In $ millions, except percentage and per share data Bookings Book-to-Bill Backlog 12-Month Backlog Revenue Organic Revenue Growth (¹) Gross Margin Operating Expenses Selling, General & Administrative Research & Development Amortization/Restructuring/Acquisition GAAP Net Income Effective Tax Rate GAAP EPS Weighted Average Diluted Shares Adjusted EPS (2) Adj. EBITDA (2) % of revenue Operating Cash Flow Free Cash Flow (2) % of Adjusted EBITDA © Mercury Systems, Inc. FY19 $782.9 1.20 $625.4 451.2 $654.7 12% 43.7% $209.6 110.7 68.9 29.9 $46.8 21.4% $0.96 48.5 $1.84 $145.3 22.2% $97.5 $70.8 49% FY20(3) $954.3 1.20 $831.1 567.7 $796.6 14% 44.8% $265.8 132.3 98.5 35.0 $85.7 8.8% $1.56 55.1 $2.30 $176.2 22.1% $115.2 $71.9 41% CHANGE 22% 33% 22% 1.1 pts 27% 83% 63% 25% 21% 18% 2% Notes (1) Organic revenue represents total company revenue excluding net revenue from acquisitions for the first four full quarters since the entities' acquisition date (which excludes any intercompany transactions). After the completion of four fiscal quarters, acquired businesses are treated as organic for current and comparable historical periods. (2) Non-GAAP, see reconciliation table. (3) Effective as of July 1, 2019, the Company's fiscal year has changed to the 52-week or 53- week period ending on the Friday closest to the last day of June. All references in this presentation to the fourth quarter and full fiscal 2020 are to the 53-week period ended July 3, 2020, and to the first quarter of fiscal 2021 and full fiscal 2021 are to the quarter ending October 2, 2020 and 52- week period ending July 2, 2021.#1111 Balance sheet (In $ millions) (¹) ASSETS Cash & cash equivalents Accounts receivable, net Inventory, net PP&E, net Goodwill and intangibles, net Other (2) TOTAL ASSETS LIABILITIES AND S/E AP and accrued expenses(2) Other liabilities (2) Debt Total liabilities Stockholders' equity TOTAL LIABILITIES AND S/E © Mercury Systems, Inc. 6/30/19 $257.9 176.2 137.1 60.0 768.3 17.4 $1,417.0 $86.7 45.5 132.2 1,284.7 $1,417.0 As of 9/27/19 12/27/19 $161.3 177.5 148.5 65.9 847.4 73.3 $1,473.9 $84.8 93.7 178.5 1,295.3 $1,473.9 $182.0 193.4 153.6 72.7 839.2 71.7 $1,512.6 $91.3 104.3 195.6 1,317.1 $1,512.6 3/27/20 $407.1 214.0 161.9 78.7 831.4 78.5 $1,771.6 $109.6 112.6 200.0 422.2 1,349.4 $1,771.6 7/3/20 $226.8 210.7 178.1 87.7 822.8 84.6 $1,610.7 $107.0 118.9 225.9 1,384.8 $1,610.7 Notes (1) Rounded amounts used. (2) Effective July 1, 2019, the Company has adopted ASC 842 - Leases using the optional transition method. Prior periods were not changed. As of July 3, 2020, the Company has Right-of-use assets of $60.6 million and total Lease liabilities of $73.9 million, of which $6.9 million is included in Accrued expenses.