Leidos Holdings, Inc. · NYSE:LDOS
Leidos — Merger or Acquisition (December 2019)
12 slides from Leidos's merger presentation, Dec 17, 2019
Slide 1: Leidos to Acquire Dynetics
Leidos to Acquire Dynetics December 17, 2019
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements The forward-looking statements contained in this presentation involve risks and uncertainties that may affect Leidos’ operations, markets, products, services, prices and other factors as discussed in filings with the Securities and Exchange C
Slide 3: Transaction Overview: Terms, Financing, Timing and Closing
Terms $ Financing • Total cash price of $1.65 billion • Transaction will be funded through cash on hand and incremental debt • Tax asset of ~$265 million • Net leverage ratio of ~3.1x expected at • Represents forward EBITDA multiple close of ~12.6x times, adjusted for the tax asset • No impact expec
Slide 4: Dynetics Highlights
Highlights Hypersonics & Space Solutions • Leading provider of high-technology, CommonCommon Hypersonic Hypersonic Glide Glide Body Body Prime, mission-critical services and solutions LongPrime, Range Long Hypersonic Range HypersonicWeapon to U.S. Government customers Subcontractor,Weapon Subcontrac
Slide 5: Transaction Provides Three Key Strategic Benefits
Transaction Provides Three Key Strategic Benefits Provides Innovative Rapidly Expands Increases Penetration Capabilities in Secure Agile with Key Customers High-Growth Areas Production Capability Addition of Dynetics adds Co-located secure Expands footprint with complementary production, test and st
Slide 6: Rapidly Expands Secure Production & Prototyping Capabilities
Rapidly Expands Secure Production & Prototyping Capabilities • 350,000+ square feet of production, assembly, and test facilities • Classified production capability • Rapid prototyping enabled through high mix/low-volume product lines Insert Image • Facilities support full-cycle product development f
Slide 7: Unites Two Highly-Skilled Workforces to Enhance Value for Customers
Unites Two Highly-Skilled Workforces to Enhance Value for Customers 34,000 ~40% ~65% 13K employees with STEM with bachelor’s Cleared Employees degrees degree or higher 2,300 >50% >75% >1.5K employees with STEM with bachelor’s Cleared Employees degrees degree or higher Customers will benefit from the
Slide 8: Provides Significant Near- and Long-Term Financial Benefits
Provides Significant Near- and Long-Term Financial Benefits Accelerates Growth In Higher Margin Portfolio Immediate Earnings High Cash Key Markets Accretion Efficiency Dynetics’ portfolio of programs is Dynetics’ addressable market drives LDOS’ EBITDA margin Immediately accretive to non- Capital-lig
Slide 9: Transaction Creates Value for All Stakeholders
Transaction Creates Value for All Stakeholders Shareholders Customers Employees Expanded addressable market Increases differentiated technologies Shared values and commitment increases growth potential and capabilities to customer mission Accretive to margin and earnings Strengthens agile manufactur
Slide 10: Appendix
Appendix = leidos
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, such as non-GAAP operating income, non-GAAP operating margin, non-GAAP effective tax rate, non-GAAP diluted earnings per share (EPS), adjusted earnings before interest, taxes, depreciation and amortization (E
Slide 12: Definition of Non-GAAP Financial Measures
Definition of Non-GAAP Financial Measures Non-GAAP operating income is computed by excluding the following items from net income: (i) non-operating expense, net; (ii) income tax expense, and (iii) the following discrete items: Integration and restructuring costs - Represents integration, lease ter
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