Leidos Holdings, Inc. · NYSE:LDOS
Leidos — SAIC — Investor Day (October 2007)
110 slides from Leidos's investor day presentation, Oct 9, 2007
Slide 1: Welcome and Introduction
Exhibit 99.1 Welcome and Introduction Stuart Davis SVP, Investor and Employee Owner Relations
Slide 2: Agenda
Agenda Welcome Stuart Davis Enterprise Overview Ken Dahlberg Operational Perspectives Larry Prior Financial Overview Mark Sopp Corporate Q&A Break Defense Solutions Deb Alderson Future Combat Systems John Gully Lunch and Future Combat Systems Demonstration Intelligence, Security & Technology Stu She
Slide 3: Forward Looking Statements
Forward Looking Statements Certain statements in these presentations contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended. The forward-looking statements involve a number of risks and uncertainties. A number of factors could cause our actual
Slide 4: Enterprise Overview
Enterprise Overview Ken Dahlberg Chairman and CEO
Slide 5: Who Are We?
Who Are We? Leading science/technology services & solutions provider – Platform independence creates “honest broker” – Broad capabilities to win and execute bundled procurements $8B+ revenue—38 years of organic growth and profitability Focused on important national and global problems – National sec
Slide 6: SAIC Core Values & Purpose
SAIC Core Values & Purpose 2007 Institutional Investor Conference | October 9 3 po ; oon Siemce Satan
Slide 7: SAIC Organization
SAIC Organization Ken Dahlberg Chairman and CEO Lawrence Prior COO Greg Henson Business Development Brian Keenan Human Resources Arnold Punaro Gov’t Affairs, Mark Sopp Communication CFO and Support Ops Doug Scott Legal and Audit Joe Walkush Strategic Initiatives & Investments Deb Alderson Joe Craver
Slide 8: SAIC Fundamental Guiding Principles
SAIC Fundamental Guiding Principles Live our core values – Open, honest, and straightforward with all our constituencies (customers, employees, stockholders, the public) Build long-term value, per share, for our stockholders – Balance short-term and long-term objectives Pursue business in our “circl
Slide 9: Corporate Transformation
Corporate Transformation Element November 2003 October 2007 Board 19 members (10 internal); 19 committees 11 Members (1 internal); 6 committees 15 Sectors, 55 Business Units 4 Groups, 20 Business Units Line Structure No “Swim Lanes” Aligned by Customers/Capabilities Formal planning discipline inform
Slide 10: Focus on Execution
Focus on Execution Accelerate organic growth – Improving toward 6-9% – Greater collaboration on growing pipeline of major opportunities Improve margins sustainably – 20-30 bps improvement planned for FY08 – Provided best practices training; initiated review of corporate structure/spending Instill cu
Slide 11: 3-5 Year Outlook
3-5 Year Outlook Addressable market growth will flatten – Budgets less predictable with increasing deficit pressure – Competition more fierce—industry will experience margin pressure – Lowering of prices, strong cash generation will promote more consolidation Sources of Revenue–about 90% federal/10%
Slide 12: Near-Term Strategic Actions
Near-Term Strategic Actions Repurchase our stock when the purchase price yields an attractive return to stockholders Target larger acquisition opportunities (>$500M) opportunistically– when the fit and price are right Mature capabilities to develop light touch production and LRIP products from our t
Slide 13: Enterprise Summary
Enterprise Summary One year later after IPO, investment thesis is unchanged – Market expected to grow for years to come – SAIC has the ability to deliver strong returns by accelerating organic growth, expanding margins, and deploying capital Company is executing according to IPO plan – 6% organic gr
Slide 14: Operational Perspectives
Operational Perspectives Larry Prior COO
Slide 15: CEO and COO Areas of Focus
CEO and COO Areas of Focus Execute via the Line Customer Focus and Interface Top Line Creation/Business Development Retention and Recruiting Shared Focus Board/Legal Operational Performance Strategy/M&A CEO Program Management/SE Investor Relations Risk Management Gov’t Affairs Contracts/Procurement
Slide 16: Top Line Creation
Top Line Creation Drivers of top-line growth – Employee-owners and entrepreneurs – Operations and division managers – Group presidents and business unit GM’s – Greg Henson and the corporate team Key metrics: Greg Henson – Backlog: $14.1B (Q2) – Book to bill: 0.8 H1, 0.9 Q2 – trending up – Conservati
Slide 17: Top Line Creation
Top Line Creation Healthy Book of Business –As of Q2 Performance Factors – through 9/7/2007 ~$2.6B YOY win expected value is up $2.9B Single IDIQs ~$2.7B YOY $ win rate is up 11% (now 72%) Backlog + ~$0.1B Expected Value not YOY $ win rate for >$100M up 43% (now 83%) Multi IDIQs in Backlog $14.1B FY
Slide 18: Retention and Recruiting
Retention and Recruiting Retention and Redeployment – Voluntary turnover - 14.3% (11.5% for scientists and engineers) – Redeployment reducing turnover (500 employees redeployed YTD) Recruiting: >5K YTD hires – Average time to fill a vacancy is 40 days Talent Management Review – Focused on succession
Slide 19: Execution
Execution Strong line management – Group presidents make markets – Business unit GMs have customer focus Program management, controls and SE Monthly reviews – Financial performance vs. plan and forecast Deb Alderson • Revenue, PBT, fee, operating margin, rates, unallowable, timesold, DWC, AR – Busin
Slide 20: Financial Overview
Financial Overview Mark Sopp EVP and CFO
Slide 21: Agenda
Agenda Income Statement Measure FY08 Guidance Revenue (billions) $8.70 - $9.00 Cash Flow Diluted EPS from continuing operations $0.83 - $0.88 Balance Sheet Cash flow from operations (millions) $450 or greater 2
Slide 22: Revenue Trends
Revenue Trends Revenue Internal Revenue Growth $9.0 20% 15% $8.0 10% $7.0 5% $6.0 0% FY05 FY06 FY07 FY08* FY05 FY06 FY07 FY08* * FY08 reflects disclosed guidance range Uninterrupted growth since 1969 Internal growth beginning to accelerate – Recovery from cessation or leveling of large contracts (GI
Slide 23: FY07 Revenue Breakout
FY07 Revenue Breakout A1957-ID-02 Group Infrastructure, Contract Type Logistics & Product FFP Solutions Defense 16% 22% Solutions CP 30% IT & Network 48% Solutions 18% T&M Intelligence, 36% Security & Technology 30% Customer NASA Contract Source 5% GSA Commercial Army Schedule & State/Local 18% 16%
Slide 24: Revenue Acceleration
Revenue Acceleration Pre-IPO Post IPO to Q208 Next 3 Years Focus on Recompetes Increased IR&D BD Leadership Team Collaborating on Larger Higher Growth Markets Contracts Organizational Alignment Acquisition Synergies Target CRM Phase I Aggressive Pipeline 6-9% Internal Revenue Growth Internal Growth
Slide 25: Operating Margin Trend
Operating Margin Trend 7.5% 7.0% * FY08 reflects mid-point of disclosed range of 20- 30 bp improvement 6.5% 6.0% 5.5% FY05 FY06 FY07 FY08* Improving operating margin 20-30 bps per year – Despite 40 bps of FAS 123R expense in FY07 and FY08 – FY06 margin lower because of $83M loss on the Greek contrac
Slide 26: Option Expense Converted to Vesting Stock Expense
Option Expense Converted to Vesting Stock Expense Pre-Option Reduction Post-Option Reduction 80 80 $73 70 70 $29 60 $56 60 50 50 $21 $41 Level 40 40 $44 Beyond $12 30 30 $36 20 20 $29 10 10 0 0 FY08 FY09 FY10 FY08 FY09 FY10 Option Option Vesting Stock FAS 123R expense builds to “normalized” state in
Slide 27: Strategic Investment Areas
Strategic Investment Areas Bid & Proposal and Corp BD IR&D $160 1.9% 2.0% $35 1.8% 1.8% 0.5% 1.7% 0.5% $140 $157 $30 0.4% 0.4% 0.4% $120 1.5% 0.4% $129 $25 $34 $126 $100 $20 $25 $27 0.3% $80 1.0% $21 $15 $60 $77 0.2% $10 $40 0.5% 0.1% $20 $5 $0 0.0% $0 0.0% FY05 FY06 FY07 FY08 Q2 FY05 FY06 FY07 FY08
Slide 28: Margin Expansion – Key Steps
Margin Expansion – Key Steps Channel Avoid or Aggressive Fee Investments to High Recover Rate Negotiation on Subs Margin Business Varience and Materials Cultural Awareness Higher Contract Fees Profit Motivation Margin Manager Expansion Training Greater Lower Costs Collaboration More Effective Reduce
Slide 29: Margin Expansion – End State
Margin Expansion – End State Ultimate margins with current business base should be 8%-9% – Improve 20-30 bps per year Improve Contract Fees Reduce Indirect Costs Enhanced fee on M&S 20-40 bps Cut overhead 20-40 bps More internal collaboration 10-20 bps Return to normal IT spend 15-25 bps Fast growth
Slide 30: Share Count
Share Count Average Quarterly Diluted Shares Option Overhang 450 20% 400 350 15% 300 250 10% FY07 Q1 FY07 Q2 FY07 Q3 FY07 Q4 FY08 Q1 FY08 Q2 FY07 FY07 FY07 FY07 FY08 FY08 Q1 Q2 Q3 Q4 Q1 Q2 Preferred Shares Common Shares Option CSEs Vesting CSEs Share count held in check with share repurchase program
Slide 31: Income Statement Takeaways
Income Statement Takeaways Diverse contract base mitigates risk Revenue Tracking to almost double pre-IPO internal growth rate G&A costs contained; increased BD and IR&D Operating Profit/Margins Tracking to deliver 20 – 30 bps YoY improvement Option overhang significantly reduced Share Count Repurch
Slide 32: Operating Cash Flow Trends
Operating Cash Flow Trends DSO Operating Cash Flow 70 700 600 60 500 400 300 50 200 100 40 0 FY06 FY07 FY08 Q2 FY06 FY07 FY08 (guidance) DSO continues to improve year over year (FY08 Q2 was exceptional) FY08 operating cash flow reduction from FY07 driven primarily by: – Cash partially replacing equi
Slide 33: Notional FY08 Share and Cash Flows
Notional FY08 Share and Cash Flows Cash Flow Share Count (Million $) (Million Shares) ESPP Gross 80 4 Cash Option Exercise 30 2 Vesting Stock Non-Cash Amortization Expense 50 3 FAS 123R Non-Cash Option Expense 25 Option Tax Benefits Net of Shares Repurchased for Tax 5 Stock Repurchased to Pay for Ve
Slide 34: Cash Flow Takeaways
Cash Flow Takeaways Still exceeds net income by ~ 1.2x Operating Cash Flow More frugal with equity compensation; using ~$50M cash to offset $60 - $70M of option tax benefit moved to financing per FAS 123R Capex at $70 – $80M; figure 1% of revenue Investing Cash Flow Expect acquisitions to require $3
Slide 35: Balance Sheet Trends
Balance Sheet Trends Cash and Net Cash/Debt Debt/EBITDA $3,000 2.5 $2,500 Cash 2.0 Net Cash/Debt $2,000 1.5 $1,500 1.0 $1,000 0.5 $500 $0 0.0 FY06 FY07 FY08 Q2 FY06 FY07 FY08 Q2 -$500 (Annualized) Net Working Capital ROIC 30% 400 6% Net working 5% capital 300 excludes 20% 4% cash, debt, income 200 3
Slide 36: Maturity of Notes (LT Debt)
Maturity of Notes (LT Debt) $1,200 Interest Rate Libor + $100 M 9.00% 350 bps $1,000 $800 $550 M 6.50% $600 $400 $250 M 7.43% $200 $300 M 5.78% $0 Average 6.72% 6.52% 6.53% 5.78% Debt is in long- Interest term notes at low, Rate fixed rates 17
Slide 37: Debt Capacity
Debt Capacity S&P 500 Sr. Bond Rating Distribution (Excluding Financials) 20% Actual S&P 500 16.9% Median Theoretical S&P 500 Investment Optimum 14.7% 15% Grade 12.3% 12.5% 10.4% 10% 8.7% 5.8% 5% 4.3% 2.9% 2.7% 1.9% 1.7% 2.2% 1.4% 1.4% 0.2% 0.0% 0% AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B+
Slide 38: Capital Deployment
Capital Deployment Deploy “excess capital” wisely according to ROIC analysis Internal growth through IR&D, strategic campaigns Acquisitions to build out capabilities and customers – Typically deploy $300M-$400M at about 1x revenue – Not interested in buying simply to bulk up or deploy capital – Focu
Slide 39: Balance Sheet Takeaways
Balance Sheet Takeaways $1.1 billion cash on hand Assets Strong A/R management;DSO 65 – 70 days Unfunded, 5 year credit facility $750 million Liabilities $100 million of $1.2 billion Notes due 2/1/2008 Remaining balance fixed at 6.5% ~$750 million of cash that can be redeployed Capacity Credit ratin
Slide 40: Financial Summary
Financial Summary Sustainable growth in shareholder value – Accelerating internal growth – Expanding operating margins – Deploying capital Consistent, demonstrated progress on all fronts Realistic, achievable path with identified enablers – IT systems modernization expected to enable cost efficienci
Slide 41: Defense Solutions Group
Defense Solutions Group Deb Alderson President
Slide 42: Group Structure and Focus
Group Structure and Focus Analysis, Simulation, Major provider for Systems Eng. & Training Modeling, Simulation & Combatant B. Seay Training; Management Commanders; Systems $500M Air Force & Army C4IT # 1 contractor to C4 Engineering & Navy SPAWAR D. James Network Centric System Center $250M Integra
Slide 43: Key Customers and Capabilities
Key Customers and Capabilities A1957-ID_06 Coast Guard/DHS Fed Civil Future Combat Systems State/Local Army Aviation & Missile Command Human Resources Command Other MDA 11% CoComs Other Joint Army Modeling and simulation DoD 10% 28% Command, control and communications Technical and engineering DISA
Slide 44: Vision and Strategic Intent
Vision and Strategic Intent The preferred thought leader and value-driven implementer of complex integrated enterprise and defense solutions that improve our national security and our customers’ mission success Increase large systems business…SE&I/Engineering agent Lead in interoperable, SOA solutio
Slide 45: Major Growth Drivers
Major Growth Drivers People First – We hire the right people at the right time and treat them as our number one asset Integrated focus; no longer constrained by individual business units focused on a customer – Broad focus across the entire defense spectrum – Integrated systems solutions leveraging
Slide 46: Maturity of Business Portfolio
Maturity of Business Portfolio VALUE NETWORK MANAGEMENT SERVICES • Leverage second-to-none knowledge of DISA core network TECHNICAL AND ENGINEERING SERVICES • Expand to Services, other • Grow and further secure our traditional base government agencies • Leverage technical expertise, customer intimac
Slide 47: Strategy for Future Growth
Strategy for Future Growth Vertically Integrated Life Cycle Capability Complex Systems Solutions Engineering Capability System Integration Management 1990s Early 2000 Today 2010 • Systems Integration • Net-centric warfare • LSI Performance and • Life Cycle Systems/ market dominated by a few (Network
Slide 48: President’s Summary
President’s Summary The Way Ahead: Aggressive…Agile…Adaptable AGGRESSIVE AGILE Competition Task Order Pure Play Target Campaign Marketing Opportunistic Customer Intimacy PEOPLE FIRST Stay Ahead Margin Streamlined Expansion BD Process Protect the Base Follow the $$ ADAPTABLE Organic Growth 8
Slide 49: Defense Solutions Group—Future Combat Systems
Defense Solutions Group— Future Combat Systems John Gully Tactical Systems & Solutions Business Unit General Manager
Slide 50: Army Leadership’s View of FCS
Army Leadership’s View of FCS Principal Army modernization program Benefits all US ground forces Builds on Army modular force organization Provides advanced capabilities Increases operational and strategic options Most affordable, effective way to modernize “We never want a fair fight, and with FCS,
Slide 51: FCS System-of-Systems (SoS)
FCS System-of-Systems (SoS) Manned Ground Vehicles (MGV) Notional Unmanned Aerial Systems (UAS) Class I UAS Command Class IV UAS and Control Infantry Carrier Vehicle (C2V) Centralized Vehicle (ICV) Controller Mounted Combat System (MCS) Reconnaissance And Surveillance Unattended Ground Systems (UGS)
Slide 52: Lead Systems Integrator (LSI)
Lead Systems Integrator (LSI) Focuses on system engineering, system integration, system planning and control Gets best of industry to work the hardware / software Total system integration responsibility 4
Slide 53: FCS One Team – Changing the Way We Do Business
FCS One Team – Changing the Way We Do Business Faster 30% reduction in development-to-field timeline One integrated management team vs. multiple independent teams One step design process to integrate requirements to capabilities Better Delivers and integrated family of systems for the FCS Brigade Co
Slide 54: SAIC FCS SDD Program Summary
SAIC FCS SDD Program Summary SAIC and Boeing have formed a badgeless team in which SAIC shares Program and IPT leadership roles – Deputy Program Manger – Chief Architect – Chief Analyst SAIC’s technical leadership roles include: – Land Warfare Technology – MGVs, UGVs, C4ISR – Unmanned Aerial Vehicle
Slide 55: Army Modernization Strategy
Army Modernization Strategy A1957-ID-07 FCS – System Development and Demonstration Core Spin Out 1 FY Spin Out 2 FY Spin Out 3 FY Program 2008-10 Schedule 2010-12 2012-15 Delivery Networked Sensors/ Network and Ground/ Shooters Systems/ Component - APS Air Vehicles FY 2015 - Limited Battle Command -
Slide 56: FCS FY08 Funding
FCS FY08 Funding FY08 President Budget at $3.7B…RDTE & Production Congressional Marks House Senate HASC: Cut $867M SASC: FCS fully funded at $3.7B $21.0M for CL IV UAV Added $90M to restore Armed Robotic Vehicle $46.7M for MULE UGV program $233.0M from MGV Added $25M to accelerate APS for Stryker $5
Slide 57: FCS Status and Outlook
FCS Status and Outlook LRIP J&A signed by ASA Claude Key Highlights / Indicators Bolton on 11 July 2007 – On budget, on schedule – FY08 – FY13 President’s Budget – Successful experiment 1.1 soldier identifies funding for the program exercise – 18 MGV Early Production – Delivered FCS Build 1 software
Slide 58: FCS Expansion
FCS Expansion Current Contract Future Opportunities X63 Infantry Modular BCT FCS BCT Stryker Modular BCT X198 Heavy Modular BCT SPT BDEs X15 +1 Also includes Configuration Management & Logistics Support 10
Slide 59: SAIC Capability Management – Addressing The Future Need
SAIC Capability Management – Addressing The Future Need Capability Management Throughout the Life Cycle Assy, Studies & Operational System Reqmts & Design & Integrate & Production Train Field Support Analysis Design Optimization Specs Code Test Exploits SAIC’s front-end strength, SoS qualifications,
Slide 60: Intelligence, Security and Technology Group
Intelligence, Security and Technology Group Stu Shea President
Slide 61: Group Structure and Focus
Group Structure and Focus Intelligence and #2 NSA technical Information Solutions Information Operations, services contractor Larry Cox Assurance, and Security $450M Technology and Science R&D / Systems #1 DARPA R&D Advanced Systems Engineering and Prototyping contractor INTELLIGENCE, Jurgen Gobien
Slide 62: Key Customers and Capabilities
Key Customers and Capabilities • Cryptologic Support • Information Dominance • Joint Intelligence OPS • NGIC Analysis • Advanced R&D • Target Intelligence Analysis • Operations Research • Counter IED • Counterterrorism Analysis Other • Cryptologic Support Gov’t • Development and Integration • Policy
Slide 63: IST Group Supports the Entire Intelligence Community
IST Group Supports the Entire Intelligence Community Analytical Training Conference Support All-source Analysis Analytic Support Strategic Planning Collection Management HUMINT Support CBW Vulnerability Facial Recognition S&T Analysis Strategic Planning Embassy Security Technical Collection Translat
Slide 64: Vision and Strategic Intent
Vision and Strategic Intent Frontline Partner in National Security and Intelligence Top provider of full spectrum intelligence and security solutions to the national security community: – Preferred partner for analysis, IT, ops support, tech ops support, and system A vital member of engineering and
Slide 65: Success Depends on the People on our Team
Success Depends on the People on our Team Our People are our #1 Discriminator Breadth and depth of Group market penetration – Strategic, operational, and tactical levels – Location, location, location Breadth and depth of science and technology expertise – 33 of 64 SAIC Fellows in IST – Performing o
Slide 66: Maturity of Business Portfolio
Maturity of Business Portfolio A1957-ID-11 VALUE IC AND DOD INTELLIGENCE SURVEILLANCE, RECONAISSANCE, and TARGETING R&D, T+E, HOMELAND EARTH SCIENCES CYBER-SECURITY SECURITY and OPERATIONS DEFENSE INFORMATION INTEGRATED OPERATIONS SECURITY SOLUTIONS DOWNRANGE OPERATIONS SPACE SUPERIORITY GLOBAL CHAN
Slide 67: Explosive Growth Opportunities
Explosive Growth Opportunities Cyber-Security Operations – Integrated defensive and offensive computer operations that protect national military, government, and industrial networks – $20B Market Value (09-11) Space Superiority Mission Systems – Satellite and ground systems that support space survei
Slide 68: Space Superiority: A National Imperative
Space Superiority: A National Imperative On January 11, 2007, the Chinese demonstrated the ability to destroy Low Earth Orbit (LEO) satellites with a Direct Ascent Anti-Satellite (DA ASAT) missile. – D/NRO acknowledged Chinese laser tracking of US EO - LEO satellite in 2006 (Space News) – Intelligen
Slide 69: President’s Summary
President’s Summary We have a passion for executing the mission and a commitment to take on tasks of vital interest to the Nation…our people are mission critical We have deep domain expertise in every mission area we support and we are the best at what we do… recognized national treasures walk our h
Slide 70: Information Technology and Network Solutions Group
Information Technology and Network Solutions Group Charles Koontz President
Slide 71: Group Structure and Focus
Group Structure and Focus #1 Provider of DHS data Enterprise Solutions R. Cash Managed IT & Infrastructure center migration, $600M Services consolidation, and transformation solutions INFORMATION TECHNOLOGY & Health Solutions Health IT, Public Health & Top 3 Provider of IT NETWORK B. McCord Biomedic
Slide 72: Key Customers & Capabilities
Key Customers & Capabilities A1957-ID-09 Digital Oil Field Solutions World-wide deployment and support of Refinery of the Future Solutions IT Health Solutions Advanced Metering Infrastructure Disease Surveillance and Bioterrism Application Development & Maintenance Research Support and Knowledge Ent
Slide 73: Vision & Strategic Intent
Vision & Strategic Intent The Information Technology and Network Solutions center of excellence for SAIC with responsibility for the Federal DoD (non-war-fighting), Federal Civil, Health, and Commercial & International markets. By expanding our presence in these markets, we will diversify our busine
Slide 74: Major Growth Drivers
Major Growth Drivers Use of domain knowledge to deliver IT business solutions ISO, ITIL, and CMMI certifications ensure customer focus and continuous improvement Flexible, platform-independent pricing models fit all client needs (both federal and commercial) and bring creative pricing strategies to
Slide 75: Major Growth Markets
Major Growth Markets Strategic Markets “Pre-Strategic” Markets Opportunistic DHS, Federal Health Markets (MHS, VA, HHS, incl. NIH, CDC, EPA, FDA, CMS & NCI), Agriculture, NASA (other IT), Census, IRS, DOE (IT), DOT, FAA, SSA NRC, OPM, NASA (UNITeS), SBA, Smithsonian, DOL, Commerce Commercial UK Publ
Slide 76: Strategic Campaign - Energy
Strategic Campaign - Energy Core Business Innovative Capabilities, Solutions and – Upstream Oil & Gas Technologies • Enhanced Oil recovery / Digital Oil Field - Engineering & IT Services – Process Modeling and Simulation – Downstream Oil & Gas – Process Optimization • Pipelines, Refineries, Fuels, R
Slide 77: Strategic Campaign - Health
Strategic Campaign - Health Core Business Key Customers and Programs – Health Information Technology – Military Health System: CHCS • Electronic Health Records Legacy Support, Tricare Online • Technical & Semantic – Department of Veterans Affairs: Interoperability VistA Contractor Support • Privacy
Slide 78: Maturity of Business Portfolio
Maturity of Business Portfolio Data Lifecycle VALUE Management Data Lifecycle Management Managed IT Services & Infrastructure • Business Intelligence & Data Warehouse • Data center consolidation • Enterprise Content Management • Security infrastructure design, and integration • Knowledge management
Slide 79: President’s Summary
President’s Summary We are well positioned to deliver growth and margin improvement through prudent execution of our strategy – Invest to grow faster in “strategic” markets: DoD & Civilian Health, Homeland Security, Commercial Energy & Life Sciences – Launch solution campaigns in Energy & Health and
Slide 80: Infrastructure, Logistics and Product Solutions Group
Infrastructure, Logistics and Product Solutions Group Joe Craver President
Slide 81: Group Structure and Focus
Group Structure and Focus Homeland Protection and Preparedness CBRN and Preparedness #1 Provider of CBRN J. Ferriter Services and Solutions Services $350M Security and Transportation INFRASTRUCTURE, Non-Intrusive Inspection & #1 installed base of large Technology LOGISTICS and Rad Detection Products
Slide 82: Key Customers and Capabilities
Key Customers and Capabilities Safety and Mission Assurance Supply Chain Management Earth Sciences Data Integration Asset Visibility Operational Test and Evaluation Logistics Systems – NASA Product Support Integration Logistics and – NOAA NASA, – DLA Product – USGS Global Climate – DoD Support – FAA
Slide 83: Vision and Strategic Intent
Vision and Strategic Intent Provide Life-Cycle Technical Solutions with Deep Domain Content to Homeland Security, Energy, Logistics, Environmental, and Earth Sciences Markets #1 Non-OEM Sustainment provider to DoD #1 Operational Test and Evaluation provider for DoD #1 Provider of Security Products f
Slide 84: Major Growth Drivers
Major Growth Drivers SAIC combines deep domain and technical expertise with customer understanding to deliver Life-Cycle Technology Solutions across our markets Superior performance in Non-Intrusive Inspection – Patented technology drives greater penetration and throughput, smaller footprint – Secur
Slide 85: Maturity of Business Portfolio
Maturity of Business Portfolio VALUE Traditional Logistics & Systems Engineering Streamline systems Position for next NASA era Homeland Security/Defense ICIS/HE deployment Grow product portfolio Expand CBRN services Expand on training portfolio Environmental/ Infrastructure Leverage Lifecycle Soluti
Slide 86: Integrated Strategy for Trade Security
Integrated Strategy for Trade Security PHASE 1 PHASE 2 PHASE 3 VACIS Family of Products Rapid IR&D High Energy Product Line P7500 Gamma-based Program Mobile Mobile VACIS Rail Relocatable Other Rail Pallet Portal SAFE Ports/ SFI pilots Data analysis, management, and integration Optical Character Reco
Slide 87: CBRN Lifecycle Solutions
CBRN Lifecycle Solutions Program CBRN/ Research Management Systems Training, 1st Responder and Development & Technical Integration Exercise, Doctrine Logistics Support Edgewood Chem Chemical Department Center for US Marine Corps/ & Bio Center Weapons of Defense Domestic Pre-Positioned Naval Research
Slide 88: Logistics Investments Paying Off
Logistics Investments Paying Off Integrated ProcureNet Acquisition DLA Repairables IR&D IR&D Logistics Purchase Place/Plus Integrated Logistics Toolset w/ PVMRO Quals Toolset Repairables Advanced Logistics 40,000 Qualified Vendors Capability Systems IPV Qualifications Advanced Logistics Technologies
Slide 89: Building Portfolio of Capabilities in Energy (Non-IT)
Building Portfolio of Capabilities in Energy (Non-IT) Core EMS Consulting SAIC Utility Capabilities Investment areas: Benham EMS Consulting Adds project delivery skills Talent Utility Capabilities Increases EMS credibility and capacity Engineering skills EMS Consulting Acquire domain engineering ski
Slide 90: Leadership in Climate Change
Leadership in Climate Change Operational Modeling Data Collection Environmental Earth Sciences Research Support Research Modeling NOAA USCG NASA Environmental Marine Domain Support Awareness Laboratory DOE Navy Data Infrastructure Management Operational Modeling Data Data Systems Integration - Resea
Slide 91: President’s Summary
President’s Summary We are well-positioned to deliver growth and profitability to our shareholders and distinctive capabilities and solutions to our customers: – Delivering Energy Management Services and Engineering capabilities to a nation struggling with fast-rising energy costs – Helping protect
Slide 92: Infrastructure, Logistics and Product Solutions Group—Non-Intrusive Inspection Systems
Infrastructure, Logistics and Product Solutions Group— Non-Intrusive Inspection Systems Alex Preston Security and Transportation Technology General Manager
Slide 93: Business/Product Overview
Business/Product Overview Integrated solutions Combinations of technologies for complex requirements Imaging inspection systems Gamma ray and X-ray imaging for cargo and vehicles Sensing and classification products Identification of radiation sources, explosives, chemicals, and other hazardous mater
Slide 94: Non Intrusive Inspection (VACIS) Overview
Non Intrusive Inspection (VACIS) Overview Veracruz, Mexico Otay Mesa, California 3
Slide 95: Integrated Cargo Inspection System (ICIS) Overview
Integrated Cargo Inspection System (ICIS) Overview A1957-ID-08 System to scan vehicles without impeding traffic Provides assurance of security Integrates data from many sources: – Gamma ray imaging – Radiation scanning – OCR equipment Identification – Driver data Console displays integrated data Str
Slide 96: Integrated Cargo Inspection System (ICIS) Overview
Integrated Cargo Inspection System (ICIS) Overview 5
Slide 97: Integrated Cargo Inspection System (ICIS) Overview
Integrated Cargo Inspection System (ICIS) Overview 6
Slide 98: Market / Growth Opportunities
Market / Growth Opportunities Safe Ports Act – 100% screening of US bound containers – Secure Freight Initiative – 7 port pilots in 2007/2008 – Congressional Feedback • October: Southampton, Honduras, Pakistan • April: Oman, Hong Kong, Singapore, Korea Container Security – Information Management – U
Slide 99: High Energy Portal (P7500) Product Development
High Energy Portal (P7500) Product Development First deployment of new core X-Ray technology Rapid development (less than 12 months) and deployment Deployed as part of Secure Freight Initiative Significant return on investment in less than one year SAIC is setting the standard P7500 in Southampton,
Slide 100: High Energy Portal (P7500) Product Development
High Energy Portal (P7500) Product Development 9
Slide 101: High Energy Mobile Product Development
High Energy Mobile Product Development 10
Slide 102: High Energy Mobile Product Development
High Energy Mobile Product Development 11
Slide 103: High Energy Mobile Product Development
High Energy Mobile Product Development What does it take to be successful in the Security Products business? Competitive Pricing – SAIC commercial price for a mobile x-ray system will be $2.4M – 25% lower cost than competitive products Greater Effectiveness/Value – Higher throughput (price/performan
Slide 104: Military Mobile Applications
Military Mobile Applications 13
Slide 105: Military Mobile Applications
Military Mobile Applications 14
Slide 106: Military Mobile Applications
Military Mobile Applications 23 Military Mobile VACIS units in production – Delivery schedule: 4-5 per month from May through September – Likely shipment South West Asia In theater maintenance and support provided by SAIC – Complements ‘Award Winning’ maintenance and service in Iraq Commercial produ
Slide 107: Next Generation Mil Mobile Product Development
Next Generation Mil Mobile Product Development A1957-ID-09 16
Slide 108: Next Generation Mil Mobile Product Development
Next Generation Mil Mobile Product Development A1957-ID-09 17
Slide 109: Hutchison Port Holdings Pilot (IP6500) Product Development
Hutchison Port Holdings Pilot (IP6500) Product Development ‘ICIS in a box’ combining X-Ray and Advanced Spectroscopic Portal (ASP) Reduce footprint, civil works costs, maintenance compared to ICIS Hutchison Port Holdings currently evaluating the integrated unit 6 months from specification to first p
Slide 110: CAARS Conceptual Design
CAARS Conceptual Design Normalization/maintenance parking location Info marquee Driver holding area Control booth Relocatable shielding 19