TELOS: Investor Presentation December 2020

The following excerpt is from the company's SEC filing.

 2  Other than statements of historical fact, all information contained in this presentation, including
statements regarding the future operating results and financial position of Telos Corporation (the “Company”), its business strategy and plans, product, service, and technology offerings, market growth and trends, and objectives for future
operations, are forward-looking statements. In some cases you can identify forward-looking statements by terminology such as “may”, “will”, “should”, “plan”, “predict”, “expect”, “estimate”, “anticipate”, “intend”, “goal”, “strategy”, “believe”,
and similar expressions and variations thereof. The Company has based these forward-looking statements largely on its current expectations and projections about future events and trends that it believes may affect its financial condition, results
of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described under
the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, and in the registration statement that the Company has filed with the SEC in connection with the recent initial public offering of its
common stock. Moreover, the Company operates in a very competitive and rapidly changing environment, the new risks emerge from time to time. It is not possible for the Company to predict all risks, nor can it assess the effect of all factors on
its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements it may make. In light of these risks, uncertainties, and assumptions,
the future events and trends discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.You should not rely on forward-looking
statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although the Company believes that the expectations reflected in the forward-looking statements are
reasonable, it cannot guarantee that the future results, performance, or events and circumstances reflected in the forward-looking statements will be achieved or occur. These forward-looking statements speak only as of the date of this
presentation and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.This presentation contains statistical data, estimates, and forecasts that are based
on independent industry publications or other publicly available information, as well as other information based on the Company’s internal sources. While the Company believes the industry and market data included in this presentation are reliable
and are based on reasonable assumptions, these data involve many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. The Company has not independently verified the accuracy or completeness of the data
contained in these industry publications and other publicly available information.The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement
of such products or services.This presentation also includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not as a substitute for or superior to measures of financial performance prepared in
accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use
other measure to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Please see the appendix for reconciliations of these non-GAAP financial measures to their nearest
GAAP equivalents and for the calculation of certain other financial metrics.  Disclaimer 

         1) Based on Telos management estimates   3  Based on Telos management estimates   Telos Investment
HighlightsPremier Provider of Software-based Solutions for the World’s Most Security Conscious Customers  Telos Security Solutions consistently deliver more efficient, more effective, and more secure operating environments Endorsed by marquee
intelligence community customers with growing commercial market penetration  Large and fast growing total addressable market (TAM) – $80B+1Driven by ongoing cloud adoption and growing security needs in both government and commercial
channels  Improving revenue mix and operating leverage to drive significant margin expansionScalable platform delivers strong free cash flow conversion  Clear visibility into rapidly accelerating, 85%+ recurring revenue growthGrowth inflection
fueled by key long-term contract wins for Telos’ identity management and cyber misattribution solutions         

     Note: Reflects fiscal year ended December 31Based on Telos management estimatesRecurring revenue for
each of the last three years  Revenue ($MM)  $108  $138  $159  $113  $135  350+ Customers  Revenue Profile85% recurring250% sole source / limited competition1  4  Revenue ($MM)  Intellectual Property3,000+ man-years of IP160% of employees with
Clearance    22% CAGR    20%YoY  Telos Snapshot  Recently-Awarded, Long-Term Security Solutions Contracts to Accelerate Revenue Growth 

         5  80% of 2019 Gross Profit  20% of 2019 Gross Profit  Unique Solution Set Addressing Urgent
Customer Needs  SecuritySolutions  SecureNetworks      AMHS  Governance risk and compliance solution that facilitates cloud migrationMis-attribution obfuscation solution that protects user information and locationTrusted identity solutionsSecure
message and archive system for the government   Operation / defense of networks and cyber ops  Secure Networks 

   6  Marquee Customers 

       7  4.1B  Exposed records from data breaches in 1H19    $8.6MM  Average cost of data breach in U.S. as
of 2019    954K  Average web attacks blocked per day    280  Average days to identify & contain a breach  Sources: Comparitech, Symantec Internet Security Threat Report 2019, Cyber Risk Analytics 2019 MidYear Data Breach Report, IBM 2020 Cost
of a Data Breach ReportBased on Telos management estimates  Key Security Solutions Expanding TAM ($B)1  14.0%CAGR  Demand for Telos’ Security Solutions Has Never Been Greater 

 8  Telos is at the Forefront of Security Solution
Development                                      1994  Common Access Card (“CAC”) Largest biometric application in the government        2016  Xacta partnership with Amazon Web Services to provide cloud solution to the CIA        2018  Telos
Ghost launched to shield communications, transactions, and networks        2018  U.S. Census Bureau contract(1MM total enumerators w/in 4 mo. at 1,100 physical service centers)        2019  Microsoft Azure partnershipto optimize Xacta cyber risk
management for sovereign and critical infrastructure clouds        2019  Telos Ghost wins $39MM contract with classified government customer; converting to program of record                              2020  TSA PreCheck & Center for
Medicare & Medicaid Services contract wins (10-year contracts)         

 9  Xacta accounts for common, shared, and customer specific controls        On-premises  Hybrid  Cloud /
Multi Cloud  Operationalizes complex frameworks and required reporting  Compliance Data Sharing  Continuous Monitoring  GRC Workflow  Automates security compliance activities through inheritance & control mapping  Delivers constant and
real-time visibility into cyber risks and compliance status  Multi-Cloud Capability  Industry-Leading Cyber Risk & Compliance Management  Xacta solution enables customers’ cloud journeys  Security Solutions  35%  % of Business Line Revenue 

           Xacta: Cloud Focus and “Reference-ability” Expands Market Share and Opportunity  10  Cloud
Providers  Additional Fed Gov(IC, DOD, and FedCiv)  Commercial  International (Partners and customers)  Commercial SaaS Vendors   C2S    Security Solutions  % of Business Line Revenue  35% 

       11  Sources: Gartner, RightScale  Worldwide Public Cloud Service Revenue$ in Billions  Public Cloud
Adoption% of All Respondents    14% CAGR  Rick Trinidad, Worldwide Public Sector, AWS  “With Xacta’s…inheritance and provider project features and capabilities, AWS expects a dramatic increase in efficiencies and effectiveness in completing ATOs,
in some cases up to 90% faster.”  AWS and Microsoft Azure Partnerships    “We recognize the value of Xacta in addressing the unique compliance needs of our customers, and we’re working with them to accelerate development time and bring this cyber
risk management solution directly to Microsoft Azure users.”  Lily Kim, General Manager, Azure Global at Microsoft  Security Solutions  35%  % of Business Line Revenue 

      Prospective & Pending  Current      Cloud customers and partners use Xacta to automatically
inherit common compliance data    Automated inheritance accelerates cloud adoption and creates incremental demand for Xacta solution        Cloud infrastructure owners share control information with partners and customers via Xacta  Automated
inheritance accelerates workload migration by operationalizing shared security and enabling reciprocity  Cloud provider customer relationships create channel to sell Xacta into new organizations  12  Inheritance Creates Channel Partnerships to
Drive Incremental Revenue   Security Solutions  35%  % of Business Line Revenue 

 Encrypted communications, storage and applications  Private Network Access  Private Web Access  Cloaked
Services  Secure, private network in the cloud  Anonymous worldwide internet access  13  Reduce Attack Surface, Hide Digital Exhaust & Disguise Identity  You can’t attack what you can’t see  Security Solutions  10%  % of Business Line
Revenue 

     14    Mission-Critical Cybersecurity Where it is Needed Most  Security Solutions  10%  % of Business
Line Revenue 

 50%  Based on Telos management estimates derived from customer / sponsor contract
assumptions      FBIFingerprint Capture  SaaS biometric web capture Pre-employment screeningIdentity vetting      TSA - AirportsEmployee Vetting  Continuous monitoring of airport employees – Security Threat AssessmentFingerprint capture and FBI
records check 100+ significant airports, airlines, general aviation customers      DMDCMilitary ID  Provider of the largest identity application in the US Government – Military ID (CAC)Biometric captureSmart cards      PreCheck & CMS
Wins  TSA PreCheck™ Enrollment Provider – 2MM new members per year over 10-year contract1Provider Enrollment & Oversight (PEO) contract holder Background checks for 1.5MM Centers for Medicare & Medicaid (CMS) health providers each
year1  15  Advancing Capabilities & Proven Validation Driving New Customer Wins  Security Solutions  % of Business Line Revenue 

 Affiliated Service Providers  Fully integrated suite of Telos ID and commercial services for identity
verification, enrollment, fingerprinting, insider threat management, biometric matching, and personnel security  IDTrust360 has direct interfaces to: The FBI's criminal recordsDHS's terrorist watch listTreasury's pay.govOther government identity
risk management systemsNumerous commercial identity, intelligence, and risk-based data sources  16  IDTrust360 Cloud Business  Security Solutions  Technology Support Center  Customer Service  Cloud Apps  Cloud Apps Outside ATO  NOC/SOC
Infrastructure  Test & Staging  Adjunction & Onboarding  Core Services  Customer Applications  Enrollment Centers                          50%  % of Business Line Revenue 

     Productivity — Mobile / remote accessCoverage — Seamless roaming between Wi-Fi and cellular on any
device, anywhereCost Savings — Single integrated enterprise mobility management solutionEfficiency — Simplify the process of updating devices with the most recent version of apps and contentSecurity — Centrally managed security policy  Network
Operations — Situational awareness of networks, including users, systems and security postureNetwork Maintenance — Preventive maintenance, troubleshooting and repairsDefensive Cyber Operations — Real-time threat monitoring, analysis and
remediation    Secure Mobility Solutions  Network Management Solutions   17  Secure Mobility and Network Management / Defense  Secure Networks  % of Business Line Revenue 

 John Wood(President, CEO, and Chairman)  Joined Telos as EVP and COO in 1992; named President and CEO in
1994 Formerly worked in finance for Dean Witter Reynolds, and UBS Securities    Michele Nakazawa(EVP and CFO)  Joined Company in 2004 as VP and Controller; named CFO in 2005Former experience includes senior financial leadership roles with Ubizen,
National Security Analysts, and Federal Systems Division of IBM    Edward Williams(EVP and COO)  Joined Company in 1992 as SVP responsible for finance, pricing, purchasing, and Defense Contract Audit Agency compliance; named COO in 2000; also
served as CFO 2003-2005Formerly served as CFO at US Government contractors Centel Federal Systems and M/A.com Information Systems    Richard Tracy(SVP, CSO, and CTO)  Joined Company in 1986; appointed SVP and Chief Security Officer in
2005Co-invented Xacta in 2000 and principal inventor named on five issued-patents involving security risk and compliance management    18  Senior Management Team 

 Financial Highlights  19 

 TSA PreCheck – $1.7B+1 total 10-year contract potentialCMS – $2.0B2 total 10-year contract potentialU.S.
Government Telos Ghost Customer – $50MM1 with potential to increase dramatically over 10 years once converted to program of record  Key New Contract Wins  Note: Reflects fiscal year ended December 31Based on Telos management estimates derived
from customer / sponsor contract assumptionsReflects contract ceiling   $108  $138  $159  $113  $135  Note: Reflects fiscal year ended December 31Note: For 9 month periods, Adj. EBITDA Margin reflected on an enterprise basis, before adjustments
for the Non-Controlling InterestsNote: FY 2018 includes one-time indirect rate adjustment benefit of $6.8M. Excluding this adjustment AEBITDA is 1.4%Based on Telos management estimates derived from customer / sponsor contract assumptionsReflects
contract ceiling  6.6%Adj. EBITDA Margin  10.5%Adj. EBITDA Margin  3.7%Adj. EBITDA Margin  6.3%Adj. EBITDA Margin  0.1%Adj. EBITDA Margin  20    22% CAGR    20%YoY  Accelerating Revenue Growth and Expanding Margins  

 Grow revenue & expand margins by building robust sales channels  Target & replace inefficient
legacy products withinorganizations  Leverage diverse Security Solutions to expand commercial market presence  Extend Security Solutions platform & ecosystem to capitalize on massive scalability  Broaden existing reach within U.S. federal
government vertical  Exploit increasing demand for NIST and other cybersecurity frameworks  Expand international footprint through channel partners  Note: Increasing demand for NIST framework identified as a near-term growth opportunity for Xacta
and Ghost  21  Growth Strategies 

           1) Based on Telos management estimates     Telos Security Solutions consistently deliver more
efficient, more effective, and more secure operating environments Endorsed by marquee intelligence community customers with growing commercial market penetration  Large and fast growing total addressable market (TAM) – $80B+1Driven by ongoing
cloud adoption and growing security needs in both government and commercial channels  Clear visibility into rapidly accelerating, 85%+ recurring revenue growthGrowth inflection fueled by key long-term contract wins for Telos’ identity management
and cyber misattribution solutions  Improving revenue mix and operating leverage to drive significant margin expansionScalable platform delivers strong free cash flow conversion  22  Investment Highlights  Based on Telos management estimates
  Premier provider of software-based solutions for the world’s most security conscious customers3,000+1 man-years invested in technology development         

 Appendix  23 

   24  Contact Information  Investor Relations:The Blueshirt Group - brinlea@blueshirtgroup.comMedia
Relations:Merritt Group - damiano@merrittgrp.com 

   ($ in thousands)    FY 2017    FY2018    FY2019    9 mo. 2019    9 mo. 2020                        Net
income (loss) attributable to Telos Corporation    ($5,833)    ($1,640)    ($6,401)    ($2,921)    ($2,178)                        Interest Expense    6,690    7,258    7,467    5,470    6,026                        (Benefit) provision for income
taxes    (2,767)    31    (104)    (187)    (136)                        Depreciation    1,999    3,028    4,972    3,609    4,018                        Stock-based compensation expense    50                                         Adjusted
EBITDA    $139    $8,677    $5,934    $5,971    $7,730  25  Adjusted EBITDA Reconciliation  Note: We define Adjusted EBITDA as net income (loss), adjusted for interest expense, loss on extinguishment of debt, (benefit) provision for income taxes,
depreciation and amortization, stock-based compensation expense, acquisition related expense and other (income) expense, net.  

   Customer Need / Pain Point  Telos Solution  Solution Capabilities      Time, cost, effort of cyber risk
and compliance managementCompliance as an obstacle to cloud adoptionAudit fatigue – many standards    Automated cyber risk management workflowInheritance and control mappingAutomated continuous monitoring      Massive financial, reputational, and
personal consequences for breaches of mobile / digital assets    Secure mobile access anywhereSecurity through encryption and obfuscationVirtual obfuscation network-as-a-service with encryption and managed attribution      Reliance on inefficient
identity trust applications Identifying fraud and mitigating the impact of fraudulent activitiesProtection of employee and customer identity data    Digital risk management platform offering enterprise identity and scalable security
solutionsOmni-channel services leveraging tech partnersIntegrated suite of advanced services modernizing management of threats and privacy of sensitive data      Requirement for secure communications with certainty of delivery and non-repudiation
functionality    Web-based; full spectrum of messaging systemsRoutes incoming messages and creates archive      Continuous need to protect enterprise networks    Solutions across and beyond the enterpriseOperation / defense of networks and cyber
ops    AMHS  Secure Networks  26  Telos Solution Set Detail 

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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Other recent filings from the company include the following:

Additional definitive proxy soliciting materials and Rule 14(a)(12) material - April 15, 2021
Other definitive proxy statements - April 15, 2021
Major owner of TELOS CORP just declared owning 12,540,437 shares of TELOS CORP - April 8, 2021
Major owner of TELOS CORP just disposed of 2,000,000 shares - April 8, 2021
Major owner of TELOS CORP just declared ownership of no shares of TELOS CORP - April 7, 2021

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