Leidos Holdings, Inc. · NYSE:LDOS
Leidos — SAIC — Investor Day (October 2008)
103 slides from Leidos's investor day presentation, Oct 15, 2008
Slide 1: Welcome and Introduction
Exhibit 99.1 Welcome and Introduction Stuart Davis SVP, Investor and Employee Owner Relations
Slide 2: Agenda
Agenda 8:00 AM Welcome Stuart Davis 8:05 AM Enterprise Overview Ken Dahlberg 8:25 AM Operational Perspectives Larry Prior 8:55 AM Financial Overview Mark Sopp 9:15 AM Corporate Q&A 9:45 AM BREAK 10:00 AM Defense Solutions Group and C4ISR Campaign Deb Alderson 10:25 AM Intelligence, Security and Tech
Slide 3: SAIC Investor Relations Website
SAIC Investor Relations Website http://investors.saic.com Replay and presentation materials available 3 Energy | Environment | National Security | Health | Critical Infrastructure © 2008 Science Applications International Corporation. All rights reserved. SAIC and the SAIC logo are registered tradem
Slide 4: 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 5: Enterprise Overview
Enterprise Overview Ken Dahlberg Chairman and Chief Executive Officer
Slide 6: Company Update
Company Update • Gaining momentum in transformation efforts – 8 quarters as a public company—met or exceeded expectations every quarter – Organizational clarity with 4 Groups and 19 Business Units – Costpoint implementation about half completed – Project Alignment well underway with the stand up of
Slide 7: Smart People Solving Hard Problems
Smart People Solving Hard Problems 09-1844-ID-01 National Security Energy and the Environment • Co-Lead Systems Integrator on Army’s #1 program • Driving effectiveness of oil recovery for BP • Prime contractor for DoD network infrastructure • Design/build more energy-efficient facilities for GM • ~$
Slide 8: Company Transformation
Company Transformation 09-1844-ID-02 Realign Businesses Implement Strategic Planning Revise Equity Programs Create Margin Expansion Course Stand up Shared Service Center Revise BoD Composition, Size, Bring in New Line Leadership Incentivize Collaboration Roll out Costpoint Pilots Lay out Real Estate
Slide 9: SAIC Core Values and Purpose
SAIC Core Values and Purpose 9 Energy | Environment | National Security | Health | Critical Infrastructure © 2008 Science Applications International Corporation. All rights reserved. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.S. and/or
Slide 10: SAIC Organization
SAIC Organization 09-1844-ID-03 Chairman and CEO Ken Dahlberg COO Larry Prior Technology Amy Alving Business Development Greg Henson Human Resources Brian Keenan CFO Government Affairs, Arnold Punaro Communication and Mark Sopp Support Operations Legal and Audit Doug Scott Strategic Initiatives Joe
Slide 11: Market Outlook
Market Outlook 09-1844-ID-36 • Addressable market growth will flatten, but market remains large – 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
Slide 12: Impact of National Elections: National Security
Impact of National Elections Current Views on National Security • Increase military end strength 92,000 • Increase military end strength 150,000 • Phased withdrawal from Iraq; shift mission • Support surge with no timetable to counter-terrorism operations, protection for withdrawal of forces of U.S.
Slide 13: Impact of National Elections: Critical Infrastructure
Impact of National Elections Current Views on Critical Infrastructure • Implement 9-11 commission • Implement 9-11 commission recommendations recommendations • Increase spending on border and port • Increase spending on border and port security security • Fund first responders with additional • Fund
Slide 14: Impact of National Elections: Energy and Environment
Impact of National Elections Current Views on Energy and the Environment • Implement market-based carbon cap-and- • Implement market-based carbon cap-and- trade system trade system • Enhance and use clean coal technology to • End the moratorium on offshore drilling reduce dependence on foreign oil i
Slide 15: Impact of National Elections: Health
Impact of National Elections Current Views on Health • Create National Health Insurance Exchange– • Rely on market-based health care as coverage with both private and public options opposed to universal healthcare • Provide coverage for all children • Incentives and tax credits for individuals and •
Slide 16: Impact of National Elections: Government Services Industry
Impact of National Elections Current Views on Government Services Industry • Increase R&D funding • Increase R&D funding • Competitively bid all federal contracts >$25K • Expand the use of fixed-price contracts except those deemed to be emergencies • Limit sole-source awards • Reduce spending on con
Slide 17: Strategic Actions
Strategic Actions • Deploy our capital wisely – Repurchase stock at an attractive return to stockholders – Complete mid-size acquisitions in key growth markets – Target larger acquisition candidates (>$500M) opportunistically • Focus on high-growth markets – Execute campaigns around energy, health,
Slide 18: Enterprise Summary
Enterprise Summary • Two years after IPO, our investment thesis is unchanged – SAIC can deliver strong returns by maintaining internal revenue growth, expanding margins, and deploying capital wisely • Company is executing according to IPO plan – 8% internal revenue growth rate and improving operatin
Slide 19: Operational Perspectives
Operational Perspectives Larry Prior Chief Operating Officer
Slide 20: Agenda
Agenda • Growth Drivers – Business Development – Our People – Technology Discriminators • Operational Efficiency – IT Modernization – Project Alignment • Operations Summary 20 Energy | Environment | National Security | Health | Critical Infrastructure © 2008 Science Applications International Corpor
Slide 21: Business Development Strategy
Business Development Strategy • Maintain entrepreneurial approach to small jobs – Division and program managers staying close to their customers – Network resiliency and strong core in National Security • Focus corporate resources on large SE&I jobs – Aggressively targeting strategic markets • Posit
Slide 22: Business Development: Capture Metrics
Business Development Capture Metrics • Traditional metrics show increasing traction and support growth goals FY07 FY08 FY09 Metric FY Q1 Q2 Q3 Q4 FY Q1 Q2 FYTD Contract Awards Only Bookings 8.9 1.5 1.9 3.9 1.5 8.8 2.5 3.3 5.8 Book-to-Bill 1.1 0.7 0.9 1.6 0.6 1.0 1.1 1.3 1.2 Funded Backlog 4.6 4.7 4.
Slide 23: Business Development: Major Recent Wins
Business Development Major Recent Wins • 23 wins >$100M YTD (11 IDIQ/12 Contract Awards) – 10 wins so far in Q3 (3 IDIQ/7 Contract Awards) Contract Awards IDIQs AITS ($454M) ENCORE II ($500M, Multiple) • IT support for Guard/Reserve • Full life-cycle IT solutions for DISA Classified ($309M) Guardian
Slide 24: Business Development: Pipeline Metrics
Business Development Pipeline Metrics FY09 FY10 FY11 FY12+ Total Opportunity Type # $ # $ # $ # $ # $ $100M+ 36 6,895 24 6,263 8 3,486 1 2,294 69 18,938 Standard Contract and <$100M 3,665 11,738 431 4,484 73 896 57 199 4,226 17,317 Task Order Total 3,701 18,633 455 10,747 81 4,382 58 2,493 4,295 36,
Slide 25: Our People: Retention and Recruiting
Our People Retention and Recruiting Voluntary Turnover Rate Number of Hires Acquisitions Internal FY07 FY08 FY09 FY07 FY08 FY09 • YTD vol turnover is 13.0%, down 50 bps • 8% above our hiring rate from last year • Vol turnover is well below industry average • On pace for >9,500 hires for FY09 and nea
Slide 26: Our People: FY08 People Breakout
Our People FY08 People Breakout 09-1844-ID-05 Education Location Inter- national Other 5% 21% DC Bachelor PhD Metro 46% 39% 4% Other US 42% Master 29% San Hunts-Diego ville 10% 5% Specialty • 55% have >3 years tenure with SAIC; Other IT 38% have >5 years tenure with SAIC 30% 36% • 22% ethnic minorit
Slide 27: Our People: Human Capital Initiatives
Our People Human Capital Initiatives • Employee Engagement – Focused on improving communication, people management skills, recognition programs, and learning & development – Achieved greater retention and increased engagement among new hire population • Diversity and Inclusion – Defined metrics meas
Slide 28: Technology Discriminators: Key Enablers
Technology Discriminators Key Enablers • Technology is at the heart of SAIC SAIC Vision SAIC Core Value #1 Be the leading systems, solutions, and technical Technical and Professional Excellence services company, solving our customers' most important business and mission-critical SAIC Purpose Stateme
Slide 29: SAIC's Technology-Based Capabilities Today
Technology Discriminators SAIC’s Technology-Based Capabilities Today Marine Mammals Advanced Electronics Advanced Guidance and Neuro- Navigation Science Advanced Power Cryptology Advanced Management Sensors Advanced Materials Advanced Non-Intrusive Simulators Inspection Physics-Based Modeling Advanc
Slide 30: IT Modernization: Costpoint Update
IT Modernization Costpoint Update % of Government Business on Costpoint 100% Wave 3 75% Wave 2 50% Wave 1 25% IOC 0% Q3 Q3 Q2 Q4 FY08 FY09 FY10 FY10 • System deployment is on schedule and business operations are uninterrupted – Completed systems engineering to improve scalability and performance – S
Slide 31: IT Modernization: Strategic View
IT Modernization Strategic View Corporate Focused Line/Customer Focused Bus Dev, Line IT Group Contracts, Support Human Operations Finance and Services Resources and Project Corp (End Point Execution Support Computing) • Standardized • Defined Architecture • Responsive • Leading Edge • Secure • Proc
Slide 32: Project Alignment Overview
Project Alignment Overview • Multi-year effort to redesign and improve internal business support services – Top-to-bottom review of the Company – Disciplined engineering and program management approach – Extensive line and corporate participation • Program objectives – Reduce hassle—simplify and sta
Slide 33: Project Alignment: Shared Services Center
Project Alignment Shared Services Center • Consolidating Accounts Payable, Corporate Purchasing, and HR Service Centers – Simplified and standardized service delivery models – Lower cost area with wages expected to be >12% below current levels • Space scheduled for occupancy by mid-November – Demoli
Slide 34: Project Alignment: Major Accomplishments
Project Alignment Major Accomplishments • Moved key IT functions to existing customer-facing operations – Transitioned security monitoring to SAIC’s IS&T Security Operations Services • Leverage knowledge of global cyber threats and prevention/remediation services • Improved monitoring, event correla
Slide 35: Project Alignment: FY10 Plans
Project Alignment FY10 Plans • Mature operations of Shared Service Center • Continue populating Shared Service Center with highly transactional services – Move services from high cost locations to low cost location – Primarily focusing first on less complex and relatively self-contained services • S
Slide 36: Operations Summary
Operations Summary • People First • Driving Growth Today – Resilient network of SAIC entrepreneurs close to the customer – Focused investment on large SE&I jobs – Position for breakout opportunities – Expand our technical talent and discriminators • Building Cost Structure for Tomorrow • Executing w
Slide 37: Financial Overview
Financial Overview Mark Sopp Chief Financial Officer
Slide 38: Agenda
Agenda • Guidance • Income Statement – Revenue Growth Trend – Revenue Breakout – Forward Revenue Visibility – Operating Margin Expansion • Equity Programs • Cash Flow • Capital Deployment and Liquidity • Cash Investments • Financial Summary 38 Energy | Environment | National Security | Health | Crit
Slide 39: Guidance
Guidance • Long-term guidance model intact—in place since the IPO – 6%-9% internal revenue growth – 20-30 bps operating margin expansion – 2%-4% growth from acquisitions – 11%-18% EPS growth with target of 15% – Assuming share count held constant through share repurchase program and no material belo
Slide 40: Revenue Growth Trend
Revenue Growth Trend 20% Acquisitions Internal 15% 4% 10% 4% 3% 12% 5% 7% 4% 0% FY07 FY08 FY09 H1 Key Growth Drivers • Renewed BD focus: bookings targets, more B&P $, improved account management • Greater emphasis on and more collaborative approach to larger pursuits ($100M+) • Customer domain exper
Slide 41: Revenue Breakout
Revenue Breakout FY08 Attribute Revenue Intelligence, Security and Technology 32% Defense Solutions 29% Organization Infrastructure, Logistics and Product Solutions 22% IT & Network Solutions 17% Labor-Related 61% Revenue Type Material and Subcontract 39% Cost-Reimbursement 47% Contract Type Time an
Slide 42: Forward Revenue Visibility
Forward Revenue Visibility • Bookings momentum and funding strength throughout business – TTM and H1 FY09 Book-to-Bill of 1.2x • Needle moving new wins (estimated annual revenue) – POL-Chem ($75-100M), AITS ($75-100M), Classified Intell ($50-60M), Classified Cyber ($10-20M) • Some holes in the base
Slide 43: Operating Margin Expansion: High-Level Framework
Operating Margin Expansion High-Level Framework Measure FY07 FY08 Future State Revenue 100% 100% 100% 100% 100% – COGS 86.5% 86.2% 85.9% 85.5% 85.1% Gross Margin 13.5 % 13.8% 14.1% 14.5% 14.9% – SG&A 6.4 % 6.4% 6.1% 6.0% 5.9% Op Margin 7.1% 7.5% 8.0% 8.5% 9.0% • COGS: +30 to 110 bps – Contract fees:
Slide 44: Operating Margin Expansion: Impact and Time Phasing
Operating Margin Expansion Estimated Impact and Time Phasing of Key Elements Margin Expansion Initiative FY09 FY10 FY11 FY12 Contract Fee Improvements (Collaboration, M&S) 10–50 bps Faster Growth in Higher Margin Areas 10–30 bps Facilities Consolidation 10–20 bps IT Modernization 10–20 bps Unallowab
Slide 45: Equity Programs: Issuance and Option Trends
Equity Programs Issuance and Option Trends Option Overhang Estimated Annualized Share Dilution 20% 5% Annualized Dilution Equity to Cash 4% ESPP Discount Change 3% 15% 2% 1% 10% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY07 FY08 FY09 FY07 FY08 FY09 • Significantly reduced equit
Slide 46: Equity Programs: Diluted Shares and Repurchases
Equity Programs Diluted Shares Outstanding & Repurchases Share Repurchases (M) Quarterly Diluted Shares (M) FY07 FY08 FY09 FY07 FY08 FY09 • Substantial cash deployment towards repurchases since IPO; > than share creep • Pace of preferred to common conversions continues – Common float increasing – Ad
Slide 47: Cash Flow: Forward Cash Flow Model
Cash Flow Forward Cash Flow Model w/o Acquisitions FY08 Measure FY09 FY10 (A) Income from Increase at long-term growth rate without Increase at long-term growth rate 386 Continuing Operations acquisitions of 9% to 14% without acquisitions of from 9% to 14% Increase at long-term internal revenue Incr
Slide 48: Capital Deployment and Liquidity
Capital Deployment and Liquidity • Business model generates significant operating cash flow • Deploy capital on a rational, disciplined basis to build long-term value for our stockholders Capital Deployment ($M) FY08 FY09 H1 – Internal growth initiatives Operating Cash Flow 345 242 – Strategic acqui
Slide 49: Cash Investments
Cash Investments • Strong governance with investment policy approved by BOD – Investment objectives – Eligible investment instruments – Minimum credit quality (credit ratings) – Maximum single issue/issuer concentration and maturity restrictions • Investment objectives (in order) – Preservation of c
Slide 50: Financial Summary
Financial Summary • Sustainable shareholder value creation • Consistent, demonstrated progress on all financial fronts • Market strength—robust internal revenue growth • Expanding operating margins and overall profitability • Low asset intensity – Predictable and growing free cash flow • Disciplined
Slide 51: Defense Solutions Group and C4ISR Campaign
Defense Solutions Group and C4ISR Campaign Deb Alderson Group President
Slide 52: Group Structure and Focus
Group Structure and Focus 09-1844-ID-08 Defense Solutions Group Deb Alderson Group President $3.0B Revenue Systems and Analysis, Simulations, Enterprise and Defense and Technology Systems Engineering C4IT Mission Solutions Maritime Solutions Solutions and Training Bill Gurley Peter Dube Bev Seay Deb
Slide 53: Key Solutions and Customers
Key Solutions and Customers 09-1844-ID-19 C4 Systems Engineering and Integration Operational Command and Control AF, Army Integrated System Design and Implementation Army, Navy, AF Joint Mission Planning AF Modeling, Life Cycle Capability Management Army Simulation & Training Enterprise IT Solutions
Slide 54: Major Growth Drivers
Major Growth Drivers • Corporate campaigns: Cyber, C4ISR • Major group focus areas – Ground Systems Integration • Constrained budgets and growing O&M costs – Legacy upgrades/reset and new construction • Network enabled capability…life cycle support – MRAP and JLI • Platform Independent Integration –
Slide 55: C4ISR Campaign: Where DoD is Heading
C4ISR Campaign Where DoD is Heading 55 Energy | Environment | National Security | Health | Critical Infrastructure © 2008 Science Applications International Corporation. All rights reserved. SAIC and the SAIC logo are registered trademarks of Science Applications International Corporation in the U.S
Slide 56: C4ISR Campaign: What They Are Buying
C4ISR Campaign What They Are Buying 09-1844-ID-11 $17 Billion SAIC Addressable Market Command Netcentric Battlespace Integrated C4ISR and Control Communications Awareness • NATO ALT BMD • DISA DSN • Predator Ops • FCS Center (POC) • SEIC • NCES • AOC WSI • P-ISR (Angel Fire) • DARPA Deep Green • MRA
Slide 57: C4ISR Campaign: Evolution to Network Enabled Capability
C4ISR Campaign Evolution to Network Enabled Capability 09-1844-ID-12 Change Vectors Network Enabled Capability • Integrated Solutions versus Stovepipes • Strong Enterprise • SOA based systems Governance Building it Different • Coalition and expanded user base • Fast, accurate, • Fusion of C3 and Sit
Slide 58: C4ISR Campaign: Addressable Market and Opportunities
C4ISR Campaign Addressable Market and Opportunities 09-1844-ID-13 Strategic and Operational Strategic and Tactical Command and Control Command Netcentric Communications Systems and Control Communications Opportunities Opportunities $2.3 B • Net Enabled Comm and Capability $1.0 B • JLTV • Cyber Contr
Slide 59: C4ISR Campaign: Near-Term International Opportunities
C4ISR Campaign Near-Term International Opportunities 09-1844-ID-14 Opportunities • Establish SAIC as • Forza NEC technical partner of choiceEurope Middle East • Multiple opportunities Opportunities leveraging net enabled • Scorpion • Mature strategic solutions • SNEP II SE&I partnerships with BAE, •
Slide 60: C4ISR Campaign: Path to C4ISR Integrated Solutions
C4ISR Campaign Path to C4ISR Integrated Solutions 09-1844-ID-33 FY08 and Before FY09 FY10 FY11 FY12 and Beyond BETSS-C Ground Soldier FCS Systems MRAP SPAWAR C4 JLTV Integration and $3M Engineering Services AOC WSI NATO AIR C2 JMPS SEIC NATO ALTBMD $2M NATO ALTBMD Follow On Opportunities NECC GSM Re
Slide 61: C4ISR Campaign: Market Approach
C4ISR Campaign Market Approach • Follow the Money – CONUS – OCONUS • Take SAIC to market… execute C4ISR campaign – DSG… C2 and netcentric communications – ISTG… Battlespace awareness, ISR – Collaborative… Integrated C4ISR solutions • Leverage discriminators – Platform independence – Operational expe
Slide 62: DSG Vision and Strategic Intent
DSG Vision and Strategic Intent 09-1844-ID-15 “The leader in defense solutions and services, whose people provide thought leadership, customer knowledge, technical skill and flawless execution to deliver outstanding mission performance.” People Thought First Leadership/ Customer Knowledge Outstandin
Slide 63: President's Summary
President’s Summary • Strong financial performance by all BUs executing on existing contracts – MRAP – DGS – FCS – SeaPort-e – AMCOM Express • New wins provide continued growth opportunities Contract Awards: IDIQs: – AITS ($454M) – Encore II ($500M) – HRC ITSO ($410M) – SPAWAR C5ISR ($222M) – COCOM
Slide 64: Intelligence, Security and Technology Group and Space Superiority Campaign
Intelligence, Security and Technology Group and Space Superiority Campaign Stu Shea President
Slide 65: Group Structure and Focus
Group Structure and Focus 09-1844-ID-16 Intelligence, Security, and Technology Group Stu Shea Group President $3.1B Revenue Intelligence Space and Operations, Technology and and Information Advanced Systems Mission Integration Geospatial Intelligence Solutions Intelligence and Security Larry Cox Joh
Slide 66: Key Solutions and Customers
Key Solutions and Customers Intelligence 09-1844-ID-16 Counter-Terrorism Analysis CTC, NCTC Technical Collection Architecture NSA, NRO, NGA Translation Services ODNI Geospatial Production NGA Signal and S&T Analysis NRO Cyber Computer Network Attack, Defense, Exploitation IC, DoD Managed Security Se
Slide 67: Major Growth Drivers
Major Growth Drivers • Corporate campaigns: Cyber, C4ISR, Space Superiority • Major group focus areas – Special Operations Forces • Political pressure for a reduced military presence overseas • Emphasis on indirect approach versus conventional forces • Major requirement is to transform legacy, stove
Slide 68: Cyber Campaign: Group Vision and Position
Cyber Campaign Group Vision and Position 09-1844-ID-15 “A leader in the integration of technology, systems and operational solutions across cyberspace in all its domains…air, land, sea, space… to deliver full spectrum mission performance.” Computer Managed Network Security Operations Services (Explo
Slide 69: ISR Campaign: Group Vision and Position
ISR Campaign Group Vision and Position 09-1844-ID-15 “A leader in the integration of technology, systems and operational solutions across air, land, sea, and space to deliver full spectrum ISR mission performance.” Surveillance and Ground Based Reconnaissance Collection Angel-Fire Payloads for Syste
Slide 70: Space Superiority Imperative
Space Superiority Campaign The Space Superiority Imperative • Our nation depends on satellites for • Space is a future battleground – D/NRO acknowledged Chinese laser tracking navigation, communications and global of electro-optical, low earth orbit satellite in 2006 trade, which could be broadly da
Slide 71: What Is Space Superiority?
Space Superiority Campaign What Is Space Superiority? 09-1844-ID-42 Space Superiority is that ability to conduct space operations at a given time and place without prohibitive interference by opposing forces 71 Energy | Environment | National Security | Health | Critical Infrastructure © 2008 Scienc
Slide 72: Space Superiority: Group Vision and Position
Space Superiority Campaign Group Vision and Position 09-1844-ID-15 “A leader in the integration of technology, systems and operational solutions across space to deliver full spectrum Space mission performance.” Active and Systems Passive Micro Engineering for Satellite Imaging Complex and Payloads f
Slide 73: Space Superiority: The Market and Bridging the Gap
Space Superiority Campaign The Market and Bridging the Gap 09-1844-ID-11 The Space Superiority Landscape Customers Trends and Drivers SAIC Strengths Programs • National • Evolving Threat • IR and multispectral • GPS SE&I Reconnaissance payloads • Cost Overruns • P-417 Office (NRO) • Special comms •
Slide 74: Space Superiority: Future Positioning
Space Superiority Campaign Future Positioning • Transition from primarily SETA services to a full compliment of SE&I • Expand role in design, development and limited rate production – More responsive than the large aerospace primes • Develop technologies to tie existing capabilities together and add
Slide 75: President's Summary
President’s Summary • Execute our campaigns Corporate: Group: – Cyber – Intelligence, Surveillance, Reconnaissance (ISR) – Space Superiority – Special Operations Forces – C4ISR – Counter-Terrorism • Execute group imperatives – People first! – Science-enabled – Thought leadership – Execution excellen
Slide 76: Cyber Campaign
Cyber Campaign Larry Cox Business Unit General Manager
Slide 77: The Cyber Imperative
The Cyber Imperative • Recent events highlight the urgency of cyber threats – Massive penetration of federal agencies and defense contractors resulting in theft of terabytes of data by China and other nation states – Potent viruses distributed by electronic picture frames, USB thumb drives, and GPS
Slide 78: Market Overview
Market Overview • Cyber market is driven by three major factors: – NSPD 54/HSPD 23 Comprehensive National Cybersecurity Initiative – Creation of new organizations and new authorities – Massive shifts in funding Competitive Landscape • GFY08 reprogramming of $200M in Intelligence Community (IC) • Lar
Slide 79: Cyber Realm
Cyber Realm 09-1844-ID-17 The Cyber business environment exists across air, and, sea and space domains, from unclassified to highly compartmented programs 79 Energy | Environment | National Security | Health | Critical Infrastructure © 2008 Science Applications International Corporation. All rights
Slide 80: Cyber Market Segments
Cyber Market Segments • Cyber touches every feature of modern communications Information Security Intrusion Detection Certification and Accreditation Network Monitoring Log Analysis VPN Vulnerability Assessments Incident Response Information Assurance Information Warfare Spam Filtering Surf Control
Slide 81: SAIC Positioning and Capabilities
SAIC Positioning and Capabilities • Broad technical expertise engineering solutions across all cyber disciplines • Long history of Informance Assurance, Network, and IT business with all major cyber customers – Prime positions on core programs • Deep expertise in Managed Security Services, security
Slide 82: Thrusts and Pursuits
Thrusts and Pursuits • We are aggressively developing cyber solutions – Modern architecture solutions for DHS and IC – Tool/services suite for Defense Industrial Base to comply with future DFAR mandates on data protection – Supply chain assurance solutions • We are pursuing numerous cyber opportunit
Slide 83: Foundation For Success
Foundation For Success • Structure – Full support from Corporate and Groups – Cyber Program Management Office – Program and customer engagement by Business Units • People – Recruiting and training the cyber workforce from inside and outside – Training and competency certifications – Thought leaders
Slide 84: Campaign Summary
Campaign Summary • Cyber market is real and immediately addressable – Broad bipartisan support with rapidly growing, multi-year funding streams • Firms must have a solid cyber base to succeed – Existing vehicles and relationships to capture new cyber funds – New important beachhead contracts are bei
Slide 85: Infrastructure, Logistics and Product Solutions Group
Infrastructure, Logistics and Product Solutions Group Joe Craver President
Slide 86: Group Structure and Focus
Group Structure and Focus 09-1844-ID-18 Infrastructure, Logistics and Product Solutions Group Joe Craver Group President $2.3B Revenue Security and Logistics and Science and Systems Homeland Protection Energy, Environment Transportation Engineering Engineering and Preparedness and Infrastructure Tec
Slide 87: Key Solutions and Customers
Key Solutions and Customers 09-1844-ID-19 Logistics and Product Support Supply Chain Management DLA Asset Visibility DoD Logistics Systems Product Support Integration NASA, Homeland Security and Defense Global Climate Non-Intrusive Imaging Systems DHS Change and Other Logistics and 19% Product Suppo
Slide 88: Solving Problems of Vital Importance
Solving Problems of Vital Importance • Save lives by deploying and supporting MRAPs in Iraq and Afghanistan • Detecting car bombs and weapons with VACIS in Iraq and Afghanistan • Capturing illegal drugs – Including some of the largest cocaine seizures ever • Address challenges to the planet by – Hel
Slide 89: Major Growth Drivers
Major Growth Drivers • Corporate Campaigns: Energy • Major Group Focus Areas – Homeland Security Products • Growth market aspects – On-going global war on terrorism – Legislative mandates continue to drive needs (i.e., Secure Freight Initiative) – Potential for CBRNE type events; DoD Force Protectio
Slide 90: Energy Campaign: The Global Energy Challenge
Energy Campaign The Global Energy Challenge 09-1844-ID-34 Global Consumption (Actual and Forecast) US Production and Consumption, 2007 120 120 102 Renewable 90 Liquids (Oil) 90 Nuclear 72 Renewable 60 Coal 60 Nuclear Fossil Fuels Natural Gas Renewables Fossil Fuels 30 30 Nuclear 0 2008 0 1980 1990 2
Slide 91: Energy Campaign: SAIC Energy Portfolio
Energy Campaign SAIC Energy Portfolio 09-1844-ID-24 Utilities Oil and Gas Industrial Federal Generation / T&D IT Upstream IT Energy Efficiency Consulting Downstream IT Energy Efficiency Environmental Refinery Engineering IT Infrastructure SI and Process Plant Design Refinery Engineering Outsourcing
Slide 92: Energy Campaign: SAIC Focus Areas
Energy Campaign SAIC Focus Areas 09-1844-ID-25 Global Climate Change / Energy Consulting Trading Customer Service/ Fuel Production Generation Retail Energy Use Transmission Distribution Coal and Renewables Primary and Exploration and Refining/ Development Production Secondary Energy Use Appraisal Pr
Slide 93: Energy Campaign: Energy Management Services Defined
Energy Campaign Energy Management Services Defined Facility Assessments Project Management Facility Modeling Quality Assurance Education and Training Metering and Verification Sustainability Systems Integration Climate Change Demand Response Efficient Operations Green IT AMI and Smart Grid Clean Tec
Slide 94: President's Summary
President’s Summary • Group provides products, services, and solutions across entire customer set • To succeed, we have invested to build a strong foundation – Developing the next generation leaders • Through the Group’s SAIL leadership development program, we have built a large, cohesive, and capab
Slide 95: Information Technology and Network Solutions Group and Health Campaign
Information Technology and Network Solutions Group and Health Campaign Charles Koontz Group President
Slide 96: IT&NS Structure and Focus
IT&NS Structure and Focus 09-1844-ID-27 Information Technology and Network Solutions Group Charles Koontz Group President $1.5B Revenue Homeland and Civilian Health Solutions Commercial Business SAIC Solutions Business Unit Services Business Unit NCI / Frederick Business Unit Doug Wagoner Bob McCord
Slide 97: Key Customers and Capabilities
Key Customers and Capabilities Federal Civil 09-1844-ID-29 Full-Service IT Provider DHS Enterprise and Business Strategy Solutions NASA Infrastructure and Applications Treasury, IRS Infrastructure Services Management Dept of Energy Information Content and Data Mgmt Solutions Mission-specific applica
Slide 98: Major Growth Drivers
Major Growth Drivers • Corporate Campaigns: Health, Energy • Digital Oil Field Upstream Downstream Primary and Exploration Refining/ Development Production Secondary Retail and Appraisal Processing Distribution Key Offerings Drilling “Green Field” “Mature” “Brown Field” • Post-Drilling Seismic Analy
Slide 99: Health Campaign: Industry Challenges
Health Campaign Health Industry Faces Dramatic Challenges U.S. Health Costs • Cost Unsustainable Cost Escalation – Health costs growing at 6.1% CAGR vs. $5.0 4.4% for GDP 20.0% – 20% health spend as a % of GDP is not $4.0 19.8% sustainable 19.0% • Access U.S. Health $3.0 – Increasing access to affor
Slide 100: Health Market Segments / Value Chain
Health Campaign Health Market Segments / Value Chain Patient-Focused Healthcare Population Health Healthcare Healthcare Healthcare Public Healthcare Health and Policy and Providers Payers Producers Preparedness Regulation Commercial Kaiser Blue Cross/Blue Cardinal Health, Providers Permanente, Shiel
Slide 101: Emerging HIE Market Opportunity
Health Campaign Emerging HIE Market Opportunity 09-1844-ID-32 Hospitals/ Physicians Laboratory Public Health Health Information Exchange (HIE) Imaging Pharmacy Centers Payors • Health information exchanges (HIEs) – Electronic movement of health-related information among organizations according to na
Slide 102: Health Campaign Summary
Health Campaign Campaign Summary Market FY08 – How we responded Requirements • Electronic health record • Surveillance/detection; • Contain healthcare costs development standards preparedness; pandemic flu • Meet needs of aging planning and support population • Medicare modernization / fraud and abu
Slide 103: President's Summary
President’s Summary • Position of strength in Public, Civilian, and Military Health – MHS—Wounded Warrior – CMS—Information systems modernization – CDC—Bio-surveillance – NCI—Valued and differentiated relationship – VA/DoD—Medical records sharing • Federal Civil market will strengthen with Administr