Goldman Sachs Industrials & Materials Conference
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 fiscal 2020 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 cybersecurity 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 in 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.
© 2020 Mercury Systems, Inc.
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