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IE AcquisitionProposal

Rachel Clark, Michael Samsel, Katie Presser & Ariela Engber

Final Consulting Group

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Agenda

1. Current situation

2. Acquisition target3. External environment

4. Opportunity analysis

5. Acquisition strategy

6. Questions

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IE's Current Situation

Threat of corporate raiders

Excess cash

Declining stock prices

Changing industries

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Strategic Decision

Invest in commodities and oil/gas

Demonstrate strategic management

Decrease threat posed by corporate raiders

Benefit from synergies

Increase financial stability

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Introducing...

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Teledyne

Teledyne provides enabling technologies forindustrial growth markets.

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Customers & Markets Served

Markets

Oil and gas exploration and production

Oceanographic research

Defense components

Environmental monitoring

Electronics design and development

Factory automation and medical imaging

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Businesses

Percent of Sales 2012

Instrumentation - 35%

Aerospace and Defense - 31%

Digital Imaging - 20%

Engineered Systems- 14%

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Instrumentation

Teledyne Instruments provides

innovative measurement devices

to: Monitor critical manufacturing

processes

Improve productivity

Facilitate energy exploration

Protect the environment

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Products

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Segment growth

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Digital Imaging

High performancesensors

Cameras

X-Ray materials

Software

Infared detectors

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Products

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Segment Growth

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Aerospace & Defense

Data AcquisitionSystems

General AviationBatteries

MicrowaveComponents

Wirelesscommunicationsystems

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Products

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Segment growth

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Engineered Systems

Missile defense

Fuel cell systems

Turbine engines

Nuclear waste storage

Space components

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Products

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Segment Growth

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Strategic Acquisitions

A&D(3)

DI (6)

Inst. (8)

2008-2012

Total Acquired: 17

Total Divested: 2

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Teledyne Current Financials

MKT Cap: 2.92B

Net Margin: 7.71

Current Ratio: 1.83

P/E Ratio: 15.99

Qtrly Growth: 15.3

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Historic - 5 years

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Industry

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Industry Definition

Industrial Goods

Industries served include:

Defense

Manufacturing

Medical

Scientific research

Exploration

Agriculture

Energy

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5 Forces

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PEST

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Political & Economic

B iji

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Beijing

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Environmental

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Sociocultural

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Technological

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Competitors

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Strategic Group Map

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Comparative Financials

Key Financial Statistics Teledyne Northrop Grumman Meggit PLC

Mkt Cap 2.92B 17.10B 3.70B

Net Profit Margin 7.71% 7.84% 15.15%

Qtrly Revenue Growth 19.60% -0.50% 3%

Current Ratio 1.83 1.39 1.2

P/E Ratio 15.99 9.28 15.42

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Historical Comparative

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Okay...so what?

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Overall Industry Lifecycle

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BCG

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SWOT

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IE + Teledyne

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WHY Teledyne?

Diversified Risk

Strategic Management

Profitable Segments

Synergy with IE Inc.

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Strategic Fit & Scope

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Acquisition StrategyIE should execute a complete acquisition of

Teledyne Technologies

Market Cap - $2.92B at a 25% premium Total Acquisition Cost: of $3.55 B

After acquisition

Monitor declining segments

Acquisition Strategy

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Looking Forward...

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Thank you!