Northrop Grumman Corporation · NYSE:NOC
Northrop Grumman — Merger or Acquisition (September 2017)
14 slides from Northrop Grumman's merger presentation, Sep 18, 2017
Slide 1: Northrop Grumman Corporation Acquisition of Orbital ATK Webcast
Northrop Grumman Corporation Acquisition of Orbital ATK Webcast September 18, 2017
Slide 2: Forward Looking Statements
Forward Looking Statements This communication may contain statements, other than statements of historical fact that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “intend,” “may,” “could,” “plan,” “project,”
Slide 3: Northrop Grumman to Acquire Orbital ATK
Northrop Grumman to Acquire Orbital ATK • Complementary portfolio and skills enhance Northrop Grumman’s strategic capabilities and growth opportunities – Significant benefits to customer driven by accelerated innovation, new capabilities and enhanced competition – Compatible culture and shared value
Slide 4: Orbital ATK – Highly Additive & Attractive Business
Orbital ATK – Highly Additive & Attractive Business Leading technologies and complementary capabilities Attractive portfolio of programs with minimal overlap Strong customer relationships Increases international opportunities Technically skilled employee population and compatible culture
Slide 5: Transaction Highlights
Transaction Highlights • Northrop Grumman to acquire Orbital ATK for $134.50 per share in Transaction cash • Implied equity value of ~$7.8B and enterprise value of ~$9.2B • Committed financing in place Financing • Initial pro forma leverage of ~3.1x net debt to adjusted EBITDA • Commitment to strong
Slide 6: Orbital ATK
Orbital ATK • Created through 2015 merger of Orbital Sciences Corporation and ATK Aerospace and Defense • ~13,000 employees, including ~4,200 engineers and scientists • $15.4B in total contract backlog • 2017 Financial Guidance – Revenue: $4.60 to $4.65 billion – Operating Margin: 11.5% to 12.0% – F
Slide 7: Key Orbital ATK Capabilities
Key Orbital ATK Capabilities Selected Capabilities Key Growth Areas Revenue ~$1.6B • Engineering and integration of Flight high-reliability launch systems - Launch Vehicles Systems • Medium / large solid rocket motors - Propulsion Systems (35%) • Composite manufacturing for Commercial & Medium / L
Slide 8: Benefits to Orbital ATK – Enhanced Technologies and Capabilities
Benefits to Orbital ATK – Enhanced Technologies and Capabilities Greater access to and coordination of investment resources Increased competitiveness in select mission areas Enhanced ability to meet customer needs Reach-back capabilities from current Northrop Grumman sectors Retention of m
Slide 9: Complementary Core Capabilities
Complementary Core Capabilities Northrop Grumman Orbital ATK Key Capabilities 2017E Sales: Low $25B 2017E Sales: $4.60B to $4.65B Aircraft Large Space Systems Small Space Systems Launch Vehicles & Propulsion Missiles & Munitions Radars, Sensors & Processing Cyber Systems Large Scale Lo
Slide 10: Significant Shareholder Value Creation Opportunities
Significant Shareholder Value Creation Opportunities • New business opportunities Revenue – Missile and missile defense Synergies – Space – Restricted • Estimated to achieve $150M run rate by 2020 Cost – Corporate and back-office integration Savings – Facility optimization – Organizational alignment
Slide 11: Capital Deployment Priorities
Capital Deployment Priorities • Northrop Grumman will continue to invest for profitable growth – Continued robust Cap Ex and IRAD • Capital Structure – Committed to solid investment grade credit rating – Strong cash flow generation supports near-term focus on debt reduction • Shareholders – Committe
Slide 12: Key Takeaways
Key Takeaways • Orbital ATK represents a strategic acquisition that benefits all key stakeholders • Enhances capabilities and growth potential in multiple markets • Meaningful value creation opportunity driven by strategic fit and synergies • Strong, complementary and diverse capabilities provide ne
Slide 13: Additional Information and Where to Find It
Additional Information and Where to Find It This communication may be deemed to be solicitation material in respect of the proposed acquisition of Orbital ATK by the Company. In connection with the proposed acquisition, Orbital ATK intends to file relevant materials with the SEC, including a proxy s
Slide 14: The Value of Performance.
THE VALUE OF PERFORMANCE. NORTHROP GRUMMAN a
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