Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Investor Day (December 2022)
55 slides from Leidos's investor day presentation, Dec 1, 2022
Slide 1: Dynetics / Huntsville 2022 Investor Site Visit
DYNETICS / HUNTSVILLE December 1, 2022 2022 Investor Site Visit 22-leidos-1114-25666
Slide 2: Forward-Looking Statements
2 FORWARD-LOOKING STATEMENTS Certain statements in this presentation contain or are based on "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "pl
Slide 3: Agenda
AGENDA 3 7:25 – 8:00 Registration and Breakfast Dynetics Headquarters 8:00 – 8:05 Stuart Davis, Investor Relations Opening Remarks 8:05 – 8:20 Roger Krone, Chairman & CEO Dynetics Within the Leidos Portfolio 8:20 – 8:45 Steve Cook, Dynetics Group President Dynetics Overview 8:45 – 9:00 Dr. Tim Barto
Slide 4: Dynetics Within the Leidos Portfolio
Roger Krone, Chairman and CEO DYNETICS WITHIN THE LEIDOS PORTFOLIO 4 22-leidos-1114-25666
Slide 5: Motivated by Leidos' Mission, Vision, & Values
MOTIVATED BY LEIDOS’ MISSION, VISION, & VALUES 5 VISION Become the global leader in the development and application of technology to solve our customers’ most demanding challenges. Engage, develop, and empower our diverse and valued people to foster a culture of creativity and growth. Strengthen our
Slide 6: Strategic Focus
STRATEGIC FOCUS 6 Our business model will continue to differentiate us in the marketplace, and we aim to drive above market revenue, adjusted EBITDA, and cash generation growth based on our: Scale • Largest government technology services provider* • Drives differentiation from peers Positioning • Th
Slide 7: Dynetics — A Compelling Asset Bringing New Capabilities and Customers
DYNETICS — A COMPELLING ASSET BRINGING NEW CAPABILITIES AND CUSTOMERS 7 Taken from December 17, 2019 Dynetics Conference Call Dynetics: An Industry-Leading Applied Research & National Security Solutions Company Overview Headquartered in Huntsville, AL Founded in 1974 2,300 employees nationwide 100%
Slide 8: Dynetics Within Leidos
DYNETICS WITHIN LEIDOS 8 • LInC • Spire & Davis CIVIL DEFENSE SOLUTIONS HEALTH Defense Group Intelligence Group 22-leidos-1114-25666
Slide 9: Strategic Benefits of Dynetics Acquisition
STRATEGIC BENEFITS OF DYNETICS ACQUISITION 9 Taken from December 17, 2019 Dynetics Conference Call Transaction Provides Three Key Strategic Benefits Provides Innovative Capabilities in High- Growth Areas Rapidly Expands Secure Agile Production Capability Increases Penetration With Key Customers Addi
Slide 10: Executing on the Promise of Dynetics Acquisition
EXECUTING ON THE PROMISE OF DYNETICS ACQUISITION 10 1 Provides Innovative Capabilities in High-Growth Areas • Expanded footprint with Hypersonics to development of Thermal Protection System and key hypersonic flight test bed • Integrating space sensor capabilities and algorithms to programs of recor
Slide 11: Our Growth Accelerated by Strategic Acquisitions
OUR GROWTH ACCELERATED BY STRATEGIC ACQUISITIONS 11 Notes: 1) 2014 figures based on February to January FY 2) A reconciliation of non-GAAP diluted EPS to net income is included in the Appendix $3.5B $3.0B $2.0B $1.5B $1.0B $2.5B 2017 Q12016 Q12015 Q12014 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 Qu
Slide 12: Dynetics Overview
Steve Cook Dynetics Group President DYNETICS OVERVIEW 12 HYPERSONICS FORCE PROTECTION ADVANCED TECHNOLOGIES 22-leidos-1114-25666
Slide 13: Dynetics Group Overview Video
13 DYNETICS GROUP OVERVIEW VIDEO 22-leidos-1114-25666
Slide 14: Dynetics Leadership Team
DYNETICS LEADERSHIP TEAM 14 Jonathan Pettus Aerospace, Defense, & Civil Larry Barisciano Weapons Technology & Manufacturing Dr. Artie Mabbett Leidos Innovations Center (LInC) Paul Engola National Security Space OPERATION LEADERSHIP Steve Cook President Paul Engola Deputy President 22-leidos-1114-256
Slide 15: Our People
OUR PEOPLE 15 ~3.3k CLEARED EMPLOYEES 10.4% MILITARY VETERANS $300k TO LOCAL CHARITIES AND EDUCATION 4.1k EMPLOYEES NATIONWIDE ~31% ADVANCED DEGREES *As of Fall 2022 22-leidos-1114-25666
Slide 16: A National Presence
A NATIONAL PRESENCE 16 Dayton, OH Detroit, MI Charlottesville, VA National Capital Region Office Personnel Only Headquarters Ridgecrest, CA San Diego, CA Albuquerque, NM Fort Bliss, TX Fort Sill, OK San Antonio, TX Colorado Springs, CO Denver, CO Shalimar, FL Decatur, AL Iuka, MS McEwen, TN Huntsvil
Slide 17: Dynetics Is Well Positioned for Great Power Competition
DYNETICS IS WELL POSITIONED FOR GREAT POWER COMPETITION 17 Dynetics, as part of Leidos, is building customer trust, creating significant opportunity Positioned for Great Power Competition, Addressing: • Adversary capabilities • Competitor capabilities • U.S. gaps • Impeding processes & procedures •
Slide 18: Why Dynetics Sold to Leidos
18 WHY DYNETICS SOLD TO LEIDOS Dynetics fits well with the Leidos culture of innovation: • 50-year history focusing on science and technology innovation • Legacy of maintaining “ESOP culture” upon successful transition to a publicly traded company • Customer focused: the tip of the spear — while mai
Slide 19: Creating a New Aerospace and Defense Company
CREATING A NEW AEROSPACE AND DEFENSE COMPANY 19 • R&D/S&T with prototyping & manufacturing • Systems engineering rigor • Agility, speed, & affordability • Entrepreneurial mindset • Deep pool of resources Subsystem Product Common Hypersonic Glide-Body Subsystem Product Wide Field of View Sensor Full
Slide 20: Dynetics Key Focus Areas
DYNETICS KEY FOCUS AREAS 20 HYPERSONICS Offensive & Defensive Emergent Capability; Time-Critical Survivability ADVANCED TECHNOLOGIES Foundational Crosscutting Innovation for Competitive Advantage FORCE PROTECTION Defend Our Forces & Key Assets 22-leidos-1114-25666
Slide 21: Strategic Focus: Market Drivers and Addressable Market
STRATEGIC FOCUS MARKET DRIVERS • Move to great power competition • Defense modernization programs • Emphasis on rapid, innovative solutions for new threats GROWTH VECTORS • Major sources of growth through transition to programs of record: – Air Defense Products – Hypersonics – National Security Spac
Slide 22: What Sets Dynetics Apart
WHAT SETS DYNETICS APART 22 Customer intimacy Speed and agility Tackling the hard problems Excellence and innovation in all we do Partnering for success 22-leidos-1114-25666
Slide 23: The Power of Leidos Plus Dynetics
THE POWER OF LEIDOS PLUS DYNETICS 23 Over $1.6B in wins were possible only because of the combined strength of Leidos and Dynetics EX A M PL ES : U.S. Army Enduring Indirect Fires Protection Capability Prototype U.S. Army/Navy Thermal Protection Systems for the Hypersonic Glide Body U.S. Navy MACH T
Slide 24: Advanced Technologies
Dr. Tim Barton Dynetics Group Chief Technology Officer 24 ADVANCED TECHNOLOGIES 22-leidos-1114-25666
Slide 25: Advanced Technologies Video
25 ADVANCED TECHNOLOGIES VIDEO 22-leidos-1114-25666
Slide 26: Dynetics Group Is Engaged in Top Defense RDT&E Priorities
DYNETICS GROUP IS ENGAGED IN TOP DEFENSE RDT&E PRIORITIES 26 INTEGRATED FORCE PROTECTION Directed Energy (High Energy Laser and High-Power Microwave), Air Defense Launcher, and Sensors Defense-specific critical technologies • Hypersonics ▲ • Directed Energy (DE) ▲ • Integrated sensing & cyber ▲ Effe
Slide 27: Current Environment in the U.S.
Current Environment in the U.S. DEMAND FOR INNOVATION SPEED, SECURITY, AND SCALE — AND AGILITY 27 Customer Needs & Technology Trends GREAT POWER COMPETITION INTENSE ECONOMIC PRESSURES • National debt • Aging infrastructure HEALTHCARE STRESSES • Aging population • Pandemic implications • “Pace” the t
Slide 28: Transitioning the Valley of Death
TRANSITIONING THE “VALLEY OF DEATH” 28 EARLY INVESTMENTS PROTYPES & DEMONSTRATION CAPABILITIES ENDURING CAPABILITIES Tactical Weapons Concept Demonstrator Prototype Weapon Small Glide Munition (SGM) GBU-69B Counter- Hypersonics Sensor Capability Sensors and Processing WFOV Tranche 0 WFOV Tranche 1 P
Slide 29: Examples of Our Differentiating Technologies
EXAMPLES OF OUR DIFFERENTIATING TECHNOLOGIES 29 Autonomy • Improving mission performance • Reducing cost and risk on current missions • Enabling new missions Comprehensive autonomy solutions and proven novel use of artificial intelligence in operational scenarios High-Power Microwave • Non-kinetic d
Slide 30: Examples of Our Differentiating Technologies
EXAMPLES OF OUR DIFFERENTIATING TECHNOLOGIES 30 Advanced Computing and Processing • Real-time modeling and simulation • Robust computing & novel packages • Advanced algorithm development • System on a chip Detection, classification, localization, and tracking across a wide variety of sensors and phe
Slide 31: Force Protection
Larry Barisciano Senior Vice President Weapons Technology & Manufacturing FORCE PROTECTION 31 22-leidos-1114-25666
Slide 32: Force Protection Video
32 FORCE PROTECTION VIDEO 22-leidos-1114-25666
Slide 33: Our Systems Are Protecting the Warfighter and Key Assets
OUR SYSTEMS ARE PROTECTING THE WARFIGHTER AND KEY ASSETS 33 ▲ Leidos Key Programs ICBM Hypersonics Tactical Ballistic Missiles Cruise Missiles Rocket, Artillery, Mortar UAS APPROXIMATE DEFENSE RANGECOMPLEMENTARY DEFENSE SYSTEMS THREAT SYSTEMS GMD Hypersonics▲ AEGIS THAAD PAC-3▲ IFPC-Enduring▲ IFPC-H
Slide 34: Key Programs
KEY PROGRAMS 34 IFPC Enduring $180M Over 27 months 16 Prototype launchers Follow-on LRIP (96 systems) and FRP (300+ systems) POSITIONED FOR IFPC-High Energy Laser (HEL) $160M Over 51 months 4 Prototypes LEIDOS RESPONSE Quickly scaled from a 100-kW laser to a 300-kW laser to increase capabilities Lev
Slide 35: Key Programs
KEY PROGRAMS 35 Multi-Domain Radar for a Contested Environment (MuDRaCE) $40M Base over 36 months for three prototype MELPS systems 7 Twelve-month option periods $50M With first option Transition to USMC PEO land systems program of record – medium range air defense radar (MRADR) POSITIONED FOR Mobil
Slide 36: Major Milestones — Force Protection
MAJOR MILESTONES — FORCE PROTECTION 36 LRIP Award FRP Award Prototype Development Award 2 Protypes 4 Units (Block 1) 4 Units (Block 1) ALPS ALPS Incr. 2 PrototypeALPS Test & Demo ALPS Incr. 2 Production Begins MELPS MELPS Development MELPS Test Mjolnir THOR IFPC HEL IFPC Enduring MFIX Participation
Slide 37: Hypersonics
Jonathan Pettus Senior Vice President Aerospace, Defense, & Civil HYPERSONICS 37 22-leidos-1114-25666
Slide 38: Hypersonics Video
38 HYPERSONICS VIDEO 22-leidos-1114-25666
Slide 39: Addressing Offensive & Defensive Hypersonic Needs
ADDRESSING OFFENSIVE & DEFENSIVE HYPERSONIC NEEDS 39 A lti tu d e Ballistic Re-entry Vehicle Long-Range Glide Body Tactical Airbreathing Ground-Based Sensing Detect to Impact in Minutes Detect to Impact in Seconds Space-Based Missile Warning/Tracking Range Space Based Provides Detection from Launch
Slide 40: Key Programs
KEY PROGRAMS 40 Conventional Prompt Strike/ Long-Range Hypersonic Weapon, Common Hypersonic Glide Body LRIP leading to program of record POSITIONED FOR MACH-Test Bed LEIDOS RESPONSE Assemble best-of-breed technology team positioned for rapid advancement of U.S. hypersonic AUR capability Partnering w
Slide 41: Key Programs
KEY PROGRAMS 41 Hypersonic Missile Warning and Tracking Wide Field of View (WFOV) Tranche 2 & beyond refresh growing to tens of payloads per year POSITIONED FOR MISSION NEED Detect and track conventional and hypersonic missiles Close kill chains precisely at a currently unattainable pace Tech refres
Slide 42: Major Milestones — Hypersonics
MAJOR MILESTONES — HYPERSONICS 42 Award Program Execution Key Milestones CHGB MACH-Test Bed (MACH-TB) WFOV TO/T1 MACH-TB Task Area 1 MACH-TB Task Area 2 MACH-TB Flight Test 2 Payloads T0 WFOV Award T1 WFOV Award 2 Payloads 7 Payloads 7 Payloads T2 WFOV Award CHGB Follow-on (31 Units) CHGB #1 Deliver
Slide 43: The Dynetics Group … Taking on Key National Challenges
THE DYNETICS GROUP … TAKING ON KEY NATIONAL CHALLENGES 43 22-leidos-1114-25666
Slide 44: Locations
LOCATIONS 44 Dynetics Chase Facility 130 Vintage Drive MidCity Campus 4991 Corporate Drive Dr. Stephen M. Gilbert Advanced Manufacturing Facility 1006 Explorer Boulevard Dynetics Headquarters 1002 Explorer Boulevard 22-leidos-1114-25666
Slide 45: Tour Logistics
45 TOUR LOGISTICS • Shuttle is parked in front of the building and leaves in 15 minutes • Gilbert Building groups will be identified on the back of your badge; Group A and B • At the last stop (Chase Building), we will have a Q&A session during lunch with all presenters and tour guides; table assign
Slide 46: The Dynetics Group … Taking on Key National Challenges
THE DYNETICS GROUP … TAKING ON KEY NATIONAL CHALLENGES 46 22-leidos-1114-25666
Slide 47: Appendix: Non-GAAP Reconciliations, List of Acronyms
Non-GAAP Reconciliations List of Acronyms APPENDIX 47 22-leidos-1114-25666
Slide 48: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES 48 Non-GAAP net income and non-GAAP diluted EPS are not measures of financial performance under generally accepted accounting principles in the U.S. ("GAAP") and, accordingly, should not be considered in isolation and should be read in conjunction with the Company's conso
Slide 49: Non-GAAP Financial Measures Reconciliation
NON-GAAP FINANCIAL MEASURES RECONCILIATION 49 2014 Q1 2022 Q3 Net income 45 164 Less: net income attributable to non-controlling interest – 2 Net income attributable to Leidos common stockholders 45 162 Acquisition, integration and restructuring costs 1 3 Acquisition related financg costs – – Other
Slide 50: Acronym List
ACRONYM LIST 50 AESA Active Electronically Scanned Array AI Artificial Intelligence ALPS Army Long-Range Persistent Surveillance AUR All Up Round CAGR Compound Annual Growth Rate CHGB Common Hypersonic Glide Body CPS Conventional Prompt Strike CUAS Counter-Unmanned Aircraft System DE Directed Energy
Slide 51: 22-leidos-1114-25666
22-leidos-1114-25666
Slide 52: Dynetics Group Overview Video (Transcription)
22-leidos-1114-25666 DYNETICS GROUP OVERVIEW VIDEO (TRANSCRIPTION) – SLIDE 13 Narrator: [00:00:02] Deep in the technological Valley of Death, many programs die. Logistical hurdles lead to failure and making it across this barren landscape. But in this wasteland, our company is embracing this challen
Slide 53: Advanced Technologies Video (Transcription)
22-leidos-1114-25666 ADVANCED TECHNOLOGIES VIDEO (TRANSCRIPTION) – SLIDE 25 Heidi Shyu [00:00:00] We will see more technological change in the next ten years than we saw in the last 50. [00:00:09] For decades, success for America meant we brought our best minds together and innovative faster than an
Slide 54: Force Protection Video (Transcription)
22-leidos-1114-25666 FORCE PROTECTION VIDEO (TRANSCRIPTION) – SLIDE 32 [Montage of news snippets] Unidentified Newscaster 1 [00:00:00] Gunfire and explosions.... Unidentified Newscaster 2 [00:00:02] Vladmir Putin puts Russia's nuclear forces on high alert... Unidentified Newscaster 3 [00:00:06] Chin
Slide 55: Hypersonics Video (Transcription)
22-leidos-1114-25666 HYPERSONICS VIDEO (TRANSCRIPTION) – SLIDE 38 Unidentified Newscaster 1 [00:00:02] China has tested – successfully tested hypersonics. Unidentified Newscaster 2 [00:00:05] Is the U.S. behind our adversaries in the development and deployment of these weapons? Unidentified Newscast