Teledyne Technologies Incorporated · NYSE:TDY
Teledyne Technologies — Merger or Acquisition (August 2006)
13 slides from Teledyne Technologies's merger presentation, Aug 2, 2006
Slide 1: Presentation to Investors Re: Rockwell Scientific
Presentation to Investors Re: Rockwell Scientific August 1, 2006
Slide 2: Forward-looking statements and cautionary notes
This is a brief overview of Teledyne Technologies' proposed acquisition of Rockwell Scientific Company LLC. Viewers are urged to read the Teledyne's periodic reports filed with the Securities and Exchange Commission ("SEC") for a more complete description of Teledyne, its businesses, its strategies
Slide 3: Transaction Highlights
Transaction Highlights Agreement to purchase Rockwell Scientific Company LLC (50% owned by each of Rockwell Collins and Rockwell Automation) All cash purchase price of $167.5 million Assumption by Teledyne of approximately $30 million pension surplus Acquisition of LLC interests allows basis step-up
Slide 4: Rockwell Scientific ("RSC") Overview
Rockwell Scientific ("RSC") Overview(a) Sales: $ 114.0 EBITDA: $ 16.6 EBIT: $ 8.6 Major Locations: Thousand Oaks, Calif. Camarillo, Calif. Employees: ~ 415 Active patents ~ 285 and pending applications: x y 59.4 54.6 Defense & Aerospace R&D Services Infrared Imaging Sensors & Subsystems (a) Sales, E
Slide 5: RSC Imaging Division Overview
RSC Imaging Division Overview Designs and manufactures optical sensors and subsystems for the infrared and visible spectrums A leader in high performance, large format space-based infrared and visible imaging focal plane array (FPA) sensors One of two current suppliers of dual- color, 3rd Generation
Slide 6: RSC Imaging Division Overview: Revenue by Customer and Market
RSC Imaging Division Overview Revenue by Final Customer(a) Revenue by Market(a) Government Government (Sub) Other 56 35 9 Military Astronomy Other 54 40 6 Military Imaging Astronomy Other 2005 Sales of $54.6 million U.S. Gov (Direct Sales) U.S. Gov (Sub) Other Represents approximate final customer a
Slide 7: R&D Services Segment Overview
R&D Services Segment Overview Electronics division Leader in III-V semiconductor and MEMS technology Focus areas include InP, GaN, SiC, MEMS sensors, mixed signal circuits Materials technology Composites research Electrochemical and optical materials Liquid crystal devices Information sciences Softw
Slide 8: R&D Services Division Overview
R&D Services Division Overview Darpa AF Army Other Gov Boeing Collins RA Other 30 10 5 7 20 13 5 10 Revenue by Customer(a) Revenue by Division(a) x y 21.4 22.4 14.8 2005 Sales of $59.4 million Electronics Technology Materials Technology Information Sciences DARPA Air Force Boeing R. Collins U.S. Gov
Slide 9: Rockwell Scientific Acquisition Rationale
Rockwell Scientific Acquisition Rationale Environmental and Industrial Instruments Other Commercial Electronics Aerospace Engines & Comp Government Engineering Services Energy Systems Defense Electronics 20 19 16 22 2 21 Defense Electronics Electronic Instruments Imaging Sensors & Subsystems R&D Ser
Slide 10: Potential Benefits to Teledyne and RSC
Potential Benefits to Teledyne and RSC RSC provides advanced technology related to multiple Teledyne operations Microwave power amps and multipliers High-speed digital/analog electronics Government information technology Composite materials for propulsion systems RSC offers a window (via DARPA, Air
Slide 11: Potential Benefits to Teledyne and RSC (Continued)
Potential Benefits to Teledyne and RSC (Continued) Teledyne may further assist RSC's migration from infrared components to subsystems Teledyne currently packages selected IR detector assemblies for RSC Teledyne's manufacturing excellence capabilities may accelerate RSC's ongoing evolution from proto
Slide 12: Teledyne Technologies Strategy
Teledyne Technologies Strategy Operational Excellence Initiatives Margin Expansion Focused Acquisitions Organic Growth Revenue Enhancement Achieve High Quality Revenue and EPS Growth
Slide 13: Teledyne Acquisition Strategy
Teledyne Acquisition Strategy 1 1 2 5 3 4 Acquired Revenue(a) 2001 2002 2003 2004 2005 2006 Acquired Revenue 16.3 28 39.3 139.2 54.1 24 7 114 35 # of Deals (a) Represents approximate annual revenue prior to acquisition Focused Acquisitions Teledyne Benthos Teledyne KW Microwave ($ in millions) Rockw
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