General Dynamics Corporation · NYSE:GD
General Dynamics — Merger or Acquisition (February 2018)
14 slides from General Dynamics's merger presentation, Feb 12, 2018
Slide 1: General Dynamics To Acquire CSRA
General Dynamics To Acquire CSRA February 12, 2018 Exhibit 99.1
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements Certain statements made in this presentation, including any statements as to future results of operations and financial projections, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as
Slide 3: CSRA + GDIT = Compelling Combination
CSRA + GDIT = Compelling Combination Creates a premier provider of IT services and solutions Complementary portfolios and capabilities Combined CSRA/GDIT to become new GD financial reporting segment Cash tender offer structure; close expected 1st half 2018 Significant long-term value creation for GD
Slide 4: Financial Highlights
Financial Highlights Price/estimated 2018 Calendar Sales ≈1.8x Price/estimated 2018 Calendar EBITDA ≈11.6x Preliminary annual cost synergies greater than 2% of combined revenues Expected to be GAAP EPS and free cash flow accretive in 2019 Maintains strong balance sheet and financial agility
Slide 5: CSRA Business Overview
(1) Before pension income Leading provider of next-gen IT solutions Unique go-to-market business model Best-in-class business development High margin and high customer loyalty Low-cost, shared delivery centers for greater competitiveness Talented workforce and strong leadership team CSRA Business Ov
Slide 6: GDIT Business Overview
GDIT also delivers complex IT solutions to the same customer sets Approximately 25% of GDIT employees are military veterans Global presence in 30 countries Diverse and talented workforce 19,000+ Employees $4.5B+ Revenue 9,000 Cleared Employees Worldwide 80+ Contract Vehicles GDIT Business Overview 4
Slide 7: CSRA: Balanced Customer Portfolio
$5.4B CY2018E Revenues Defense Intel Health and Civil Well diversified Next-Gen IT portfolio CSRA: Balanced Customer Portfolio
Slide 8: CSRA + GDIT: Creates Broad Customer and Contract Base
[ ]% [ ]% [ ]% $9.9B 2018 Revenues Defense Health and Civil Intel 57% FP/T&M Fixed Price Cost-Plus T&M CSRA + GDIT: Creates Broad Customer and Contract Base Provide innovative solutions at solid double digit margins
Slide 9: CSRA & GDIT: Fit
Current Lines Of Business GDIT CSRA Major IT Infrastructure Programs Lifecycle design, development, implementation, test, operation and support üüüü üü IT Services Next-generation and mission services üüüü üüüüü Cyber Protection Services Defense of the IT enterprise üüü üüü Training Hardware & softw
Slide 10: Federal IT Market is Consolidating
CY2018E Revenue ($B) Source: FactSet consensus estimates, company data; includes companies with revenues of $1.9B or greater Federal IT Market is Consolidating
Slide 11: The Creation of a Market Leader
CY2018E Revenue ($B) Source: FactSet consensus estimates, company data; includes companies with revenues of $1.9B or greater The Creation of a Market Leader
Slide 12: Transaction Further Strengthens General Dynamics Portfolio
Creates new segment focused on the growing Federal IT services space Accelerates GD growth and profitability Provides additional balance to platform portfolio 24% 16% 23% 12% 25% Aerospace 2018 Revenue* 25% 24% 23% 12% 16% *Pro-forma Transaction Further Strengthens General Dynamics Portfolio
Slide 13: CSRA + GDIT = Compelling Combination
CSRA + GDIT = Compelling Combination
Slide 14: General Dynamics
GENERAL DYNAMICS GENERAL DYNAMICS
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