Slide 1: Safe Harbor
Safe Harbor This presentation contains forward-looking information, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, that is based on management's beliefs and assumptions, current expectations, estimates and projectio
Slide 2: Geographic Diversity
Geographic Diversity
Slide 3: Geographic locations map
VA PE ea Gente e United Kingdom
Slide 4: Management team
Mark J. it Senior VI Human Paxslirese ai by iG. Casner, Jr. P. Executive VP Chief Operating Officer in Pp and Secretar S. Newman Chairman of the Board, President and CEO Washington Operations rt F. Mehmel Executive VP Busines: Operations and Strategy Leh A. Schneider Ex eV GhietF Pnaneial Officer
Slide 5: Management team
y William R. Craven Senior Vice President, Business Developme Terry L. DeRosa resident Elsotronic Systems Gro Paul G. Casner, Jr. Executive Vice President, Chief Operating Officer Fred L. Marion Presiden Electro- ‘Optical Systems Group Louis J. Belsito Vice President, Chief Information Officer is Co
Slide 6: OD(X) Next Destroyer Generation
OD(X) Next Destroyer Generation = - = ? ~ *sJoint Strike Fighter
Slide 7: Company guidance; CAGR excludes FY2003 and FY2004
* Company guidance; CAGR excludes FY2003 and FY2004
Slide 8: 5-Year CAGR: 30%
5-Year CAGR: 30% $655* $517 $800* Fy98 =FY99 «=FYOO FYO1 Fyo2 FY03* FY04*
Slide 9: Company guidance; CAGR excludes FY2003 and FY2004
* Company guidance; CAGR excludes FY2003 and FY2004
Slide 10: ‘een $595
, $900 $844 sa00 $700 ‘een $595 $600 $457 $400 ga63 $988 $200 $200 4$175 $100 P ! i 1998 1990-2000» 2001-« «2002 ec. , 2002
Slide 11: Fiscal Year Ended March 31
Fiscal Year Ended March 31,
Slide 12: Existing portfolio drives FY04 revenues
• CHS-3 • FMC • TWS • DVE • ITSS • FCS • ENVG • FEP • DD(X) • LCS • Deepwater • TISS • CVN • OFW • JSF Existing portfolio drives FY04 revenues. New business pipeline is healthy. * Estimated
Slide 13: International Primes / U.S. Primes
International Primes % Commercial 3% — US. Miltary 37% International U.S. Primes 51%
Slide 14: Cost Reimbursable vs Fixed Price
Cost Reimbursable 24% Fixed Price 76%
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Slide 18: Naval Power
Naval Power Naval Workstations
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Slide 21: Ground Vehicle Sighting System
Ground Vehicle Sighting System Mast-Mounted Slight (MMS) Thermal Imaging Sensor System (TISS) Virtual Imaging System for Approach and Landing (VISUAL)
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Slide 23: Weapons Alignment System
Weapons Alignment System Mission Recorders Emergency Avionics System
Slide 24: Deployable Flight Recorder
Deployable Flight Recorder Airborne Separation Video System Secure Voice Communication System
Slide 25: Pursue Strategic Acquisitions & Alliances
Pursue Strategic Acquisitions & Alliances Expand Existing Customer Base Develop & Expand Existing Technologies Leverage Incumbent Relationships
Slide 26: Acquisition history
Power Paravant Technology 02 2103 NAI Technologies 2/99 44/¢ es ~ = | aie Electronic Systems Group ON x x Ley gq Teaps = 7/99 We 1/03 EDSL Eaton's Ne Kaman's Controls Division Electromagnetics Raytheon Ground EO and FPA businesses Magaitts US, UAV business 4/02 a Sa | 9/01 10/02 Opto Mechank Boeing'
Slide 27: Q-70 Program Overview
Q-70 Program Overview • The Q-70 is a common architecture combat command & control display system • Used on numerous naval platforms (surface, air and submarine) • Sole-source IDIQ contract; teamed with Lockheed Martin since mid 1993 • DRS provides system engineering services, software development a
Slide 28: Typical AEGIS Q-70 Installation
Typical AEGIS Q-70 Installation
Slide 29: FY03 Events
FY03 Events • FY03 booking plan impacted by: • Cancellation of Navy Area Wide TBMD Program (funded part of planned DDG Modernization Program) • Reduction of DDG-51 SCN budget from 3 to 2 ships • Delay in the CG-47 Cruiser Conversion program • Partially compensated by: • Growth in submarine moderniza
Slide 30: UYQ-70
UYQ-70 experience and legacy has positioned DRS to become Display and processing system supplier for new combatant platforms • LCS • DD(X) • CVN-21
Slide 31: Integrated Hull, Mechanical & Electrical Equipment for the U.S. Navy
Integrated Hull, Mechanical & Electrical Equipment for the U.S. Navy
Slide 32: Integrated Hull, Mechanical & Electrical Equipment for the U.S. Navy
Integrated Hull, Mechanical & Electrical Equipment for the U.S. Navy
Slide 33: DRS Electric Power Technologies
DRS Electric Power Technologies DRS Power Technology • Electric drive systems • Technology development • Propulsion technologies • Industrial systems • Electric drive systems • Steam turbines • Gas turbine systems • Pump technology • Fuel cells & other industrial systems DRS Power Systems Has Instal
Slide 34: The U.S. Navy Shipbuilding Community Depends on DRS Power Systems
The U.S. Navy Shipbuilding Community Depends on DRS Power Systems
Slide 35: aU.) EAM UNS
aU.) EAM UNS
Slide 36: Electric Drive
• Electric Drive • Reduce Number of Prime Movers • Fuel Savings • Reduced Maintenance • Reduced Manning • Automation • Electrify Auxiliary Systems • Advanced Weapons and Sensors • Warfighting Capabilities • Enhanced Stealth • Increased Payload Volume • Reduced Logistics Dependency • Power Availabili
Slide 37: The Most Important Power on the Ship Is No Longer Propulsion
The Most Important Power on the Ship Is No Longer Propulsion
Slide 38: = PTT
= PTT PIT ww Le. W Gcr) Gap Wi Pea / POWER POWER ’ GENERATOR Pee as) ELECTRONICS ENGINE a — ee | 9 ’ GATEWAY TO 5 G5 goTAL SHIP i UTING NTROL Ee ONES di eSONTROL, Se A
Slide 39: DoD Budget by Major Appropriation Title
© Miltary Personne! § Procurement Other DoD poets 1 Family Housin Operations & Maintenance ROTEE = Miltary Construction Revolving & Mgt Funds jes — $67.0 $64.6 $104.0
Slide 40: QuickLinks
QuickLinks DRS Technologies: Who We Are How We Are Growing DRS Technologies: Who We Are DRS Power Systems: The Gold Oval Business Products: Integrated Propulsion, Electrical & Control Equipment DRS Technologies: How We Are Growing DoD Budget by Major Appropriation Title Significant growth potential