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LMT Investor Conference Orlando 11_07_08 1
WelcomeWelcomeLockheed Martin Investor ConferenceLockheed Martin Investor Conference
Orlando, FLOrlando, FLNovember 7, 2008November 7, 2008
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Our presentation contains Our presentation contains ““forwardforward--lookinglooking”” statements or projections based on statements or projections based on current expectations. These statements are not guarantees of fucurrent expectations. These statements are not guarantees of future performance ture performance and are subject to risks and uncertainties. Actual results may and are subject to risks and uncertainties. Actual results may differ materially due to: differ materially due to: the availability of government funding and budgetary constraintsthe availability of government funding and budgetary constraints; changes in ; changes in customer priorities; the impact of economic recovery and stimulucustomer priorities; the impact of economic recovery and stimulus plans and s plans and continued hostilities in Iraq and Afghanistan on funding for defcontinued hostilities in Iraq and Afghanistan on funding for defense programs; ense programs; program and contract performance; return or loss on benefit planprogram and contract performance; return or loss on benefit plan assets, interest and assets, interest and discount rates, and other changes that may impact benefit plan adiscount rates, and other changes that may impact benefit plan assumptions; the ssumptions; the timing and availability of future government awards; the outcometiming and availability of future government awards; the outcome of legal of legal proceedings; the future impact of acquisitions, divestitures or proceedings; the future impact of acquisitions, divestitures or joint ventures; joint ventures; economic, business and regulatory conditions and other factors. economic, business and regulatory conditions and other factors. We disclaim any We disclaim any duty to update forwardduty to update forward--looking statements to reflect new developments.looking statements to reflect new developments.Our SEC filings (found at Our SEC filings (found at www.lockheedmartin.comwww.lockheedmartin.com or at or at www.sec.govwww.sec.gov), including our ), including our 2007 Form 102007 Form 10--K and 2008 Form 10K and 2008 Form 10--Qs, contain more information on the types of risks Qs, contain more information on the types of risks and other factors that could adversely affect these statements.and other factors that could adversely affect these statements.2008 Financial Results are unaudited.2008 Financial Results are unaudited.
Forward Looking Statements
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Electronic Systems OverviewElectronic Systems Overview Chris KubasikChris KubasikKen PossenriedeKen Possenriede
Missiles & Fire ControlMissiles & Fire ControlAir & Missile DefenseAir & Missile DefenseFire Control & Situational AwarenessFire Control & Situational Awareness
Mike Trotsky Mike Trotsky Tom SimmonsTom Simmons
Maritime Systems & SensorsMaritime Systems & SensorsLittoral Combat ShipLittoral Combat ShipSeaSea--Based Missile DefenseBased Missile Defense
Dan SchultzDan SchultzOrlando CarvalhoOrlando Carvalho
Systems Integration Systems Integration –– OwegoOwegoVHVH--71 Presidential Helicopter71 Presidential HelicopterJoint Light Tactical VehicleJoint Light Tactical Vehicle
Jeff BantleJeff BantleSteve RamseySteve Ramsey
Simulation Training & SupportSimulation Training & Support Doug GreenlawDoug Greenlaw
Agenda
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LMT Investor Conference Orlando 11_07_08 1
Chris KubasikExecutive Vice President
Electronic SystemsElectronic Systems OverviewOverview
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Aeronautics Space Systems
Electronic Systems
Information Systems &
Global Services
Electronic Systems at a Glance
Maritime Systems& Sensors
Moorestown, NJ
CanadaKanata, Ontario
Maritime Systems& Sensors Manassas, VA
Maritime Systems& SensorsMoorestown, NJ
Missiles and Fire ControlLufkin, TX
Missiles and Fire ControlGrand Prairie, TX
Maritime Systems& SensorsSyracuse, NY
Maritime Systems& SensorsMitchel Field, NY
Missiles and Fire ControlOcala, FL
Systems Integration - OwegoOwego, NY
Missiles and Fire ControlCamden, AR
Missiles and Fire ControlTroy , AL
Missiles and Fire Control Simulation, Training & SupportOrlando, FL
Maritime Systems& SensorsRiviera Beach, FL
Missiles and Fire ControlEl Paso, TX
Maritime Systems& SensorsBaltimore, MD
Simulation, Training & SupportHuntsville, AL
Simulation, Training & SupportWashington, DC
Missiles and Fire Control Archbald, PA
Maritime Systems& SensorsSimulation, Training & SupportAkron, OH
Sandia National LaboratoriesSimulation, Training & SupportAlbuquerque, NM
Maritime Systems & SensorsSimulation, Training & SupportEagan, MN
Maritime Systems& SensorsIrvine, CA
Missiles and Fire Control Chelmsford, MA
Maritime Systems& SensorsMarion, MA
Maritime Systems& SensorsClearwater, FL
Advanced Technology LabsCherry Hill, NJ
CanadaMontreal, Quebec
Sandia National LaboratoriesLivermore, CA
UK Integrated SystemsHavant
LM UK INSYSAmpthill
Atomic WeaponsEstablishmentAldermaston
Maritime Systems& SensorsBothell, WA
Electronic Systems HQBethesda, MD
Maritime Systems& SensorsAdelaide
Sites with more than 100 employees
Simulation, Training& SupportPerthPerth
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Lockheed MartinElectronic Systems
Missiles & Fire Control
Systems Integration-
Owego
Maritime Systems &
Sensors
Simulation, Training & Support
Energy(Sandia,
AWE)
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GrowthReputation
InnovationPeople
Electronic Systems Priorities
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Growth Core Domestic
U.S. Army
U.S. Navy,Marine Corps
U.S. Air Force
DoE, Coast Guard,Civil, Other
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GrowthInternational
Growing to >30% of Sales
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Growth Adjacent and White Space
Renewable Energy Education
Critical Infrastructure
ProtectionnHealthcare
Training & Simulation
Port Security,Surveillance,Critical Asset
Protection
Training & Simulation
Solar OTEC
Aligned with National ImperativesAligned with National Imperatives
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Opportunities• PAC-3
• THAAD UAE
• CSAR-X
• LCS
• Tactical Ground Vehicles
• DDG 51 Continuation
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Program Performance Favorable Media Coverage
Corporate ResponsibilityIntegrity and Accountability
Solid Reputation a Pillar for Growth
• Satellite Shootdown
• YTD Mission Success at 100%
• Introducing Additional Customer Feedback Mechanisms
JASSM Deepwater
VH-71LCS
Now 89%
Was 33%Was 46%
Now 81%
Was 46%
Now 67%
Was 12%
Now 36%
Reputation
Lockheed Martin “pulled this kick-ass missile out of the fire.” (October 7, 2008)
Secretary Sue Payton
“One of our best programs at Eglin.”Maj. Gen. David Eidsaune
• 220,000 Volunteer Hours
• Focus on STEM Education, Mentoring
• $6.6M in Employee, Company Contributions
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• $250M in 2008 IRAD• CRAD Exceeds IRAD• Nanotechnology Partnership with
Rice University
DDG-51
Innovation as an Enabler
Unmanned Vehicles
Energy
• Utility-Scale Solar• Ocean-Thermal Energy
Conversion• Portable Power
• Aegis Modernization Under Way• Open Architecture Implementation• FY09 Appropriation for
DDG-51 Continuation
Innovation
K-MAX
RemoteMinehunting
System
Squad MissionSupport System
Technology
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PeopleChristopher E. KubasikExecutive Vice President
Fred P. MoosallyMaritime Systems
& Sensors
James F. Berry Missiles & Fire
Control
Marillyn A. HewsonSystems Integration -
Owego
Dale P. BennettSimulation, Training
& Support
Kenneth R. PossenriedeVP, Finance &
Business Operations
Joseph A. PetroneVP, Human Resources
Yvonne O. HodgeCIO & VP, Quality
& Mission Success
Peter A. Harrigan VP, Communications
Stephen M. Piper VP, General Counsel
Srinivas DixitDirector, Ethics and Business Conduct
Russ E. FrewVP, Technology
Patrick M. DewarVP, Business Development
Thomas O. HunterSandia National
Laboratories
Michael O. GordonVP, Operations and
Supply Chain Management
CompanyPresidents
FunctionalStaff
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Today’s Presentations Missiles and Fire Missiles and Fire
ControlControlMaritime Systems & Maritime Systems &
SensorsSensorsSystems IntegrationSystems Integration--
OwegoOwegoSimulation, Training Simulation, Training
& Support& Support
Air & Missile DefenseAir & Missile DefenseMike TrotskyMike Trotsky
SensorsSensorsTom SimmonsTom Simmons
Littoral Combat ShipLittoral Combat ShipDan SchultzDan Schultz
SeaSea--Based Missile DefenseBased Missile DefenseOrlando CarvalhoOrlando Carvalho
VHVH--7171Jeff BantleJeff Bantle
Joint Light Tactical VehicleJoint Light Tactical VehicleSteve RamseySteve Ramsey
Simulation, Training,Simulation, Training,Logistics and SustainmentLogistics and Sustainment
Doug GreenlawDoug Greenlaw
Key Growth Areas in 1,500-Program Portfolio
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• Executing Growth Strategy
• Reputation Has Improved
• Cultivating Innovative Solutions
• Growing Our People
Positioning for Sustained, Long-Term Growth
Summary
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Ken PossenriedeKen PossenriedeVice President, Finance Vice President, Finance & Business Operations& Business Operations
Electronic SystemsElectronic Systems OverviewOverview
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ES Annuity Programs
~$64B Sales To Date
TD → SDD →
LRIP → Production (U.S.) → Production (Int’l) Sustainment
‘70 ‘75 ‘80 ’85 ’90 ’95 ’00 ’05 ‘10
Aegis/SBMD
MLRS
Apache FC
LANTIRN/Sniper
PAC-3
THAAD
MH-60
AGMS
($B)
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ES Future Programs
Poised For Future Success
Initial PotentialValue Value
JLTV $50M $20B
FASI-G ID/IQ $5.6B Ceiling
HCM TBD $1.3B
CSAR-X TBD $8B
LCS $500M TBD
UK MFTS $100M $1.0B
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GWOT SupportArmy Tactical Missile System … 500+ LaunchedGuided Multiple Launch Rocket System … 900+ LaunchedHellfire® … 6,800+ Missiles FiredJavelin™ … 480+ LaunchedSymphony™ … 800+ Devices FieldedDesert Hawk™ … 500 Operational Flights Per MonthPersistent Threat Detection System … 8 Sites 24/7
Wind-Corrected Munitions Dispensers … 900+ ExpendedLongbow® Apache … 1,000+ Targets Destroyed
HIMARS, M270A1 … Readiness Exceeds 99%Sniper® … Combat Proven on U.S., U.K., Norwegian AircraftConvoy Trainers … Over 150,000 UsersInfantry Immersion Trainer … Over 4,000
Marines Trained Prior to Deployment
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Mike TrotskyMike TrotskyVice President, M&FCVice President, M&FC
Air & Missile Defense
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Ballistic Missile Defense SystemA
ltitu
de
Range (km)0 0 0 0600 1,300 5,500 ~10,000
Boost
Midcourse
Terminal
GMDAegis BMD
Aegis BMD
Aegis BMD
Aegis BMD
Aegis BMD
ABL KE Boost
ABL KE Boost
ABL ABL
THAADTHAAD
THAADArrowArrowPAC-3PAC-3
Short RangeBallistic Missile
(SRBM)
Medium RangeBallistic Missile
(MRBM)
Intermediate RangeBallistic Missile
(IRBM) ICBM
DSP(Acquisition Sensor)
STSS
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Air and Missile Defense Portfolio
Product
SoS- EAPS/LEAPP/
IBCSMini-HTK
Interceptor SystemOuter TierInterceptor
PAC-3, MSE, MEADS
SBT, ALHTK THAADTHAAD
Growth MissileMultiple Kill
Vehicle
CustomersDomestic/
International Integration
Domestic: C-RAM, Protection
International: C-RAM, VSHORAD
Protection, International
SHORAD
Air Defense, Terminal Defense
Terminal Defense
Terminal, Mid-Course
DefenseMid-Course
Defense
Program Phase
IRAD /Development
IRAD / CRAD/RR Contract IRAD
Production, Spiral
Development
Development(Flight Test),Production
IRAD Development
• •• •
Core, Adjacent ProductsPortfolio Expansion, New Products
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THAADAttributes• Area Defense System, Defeats Short to Long Range
Ballistic Missiles• Upper Tier of a Two-Tiered Terminal Defense With PAC-3
or MEADS as the Lower Tier• Strategically Transportable, Rapid Insertion Into Theaters
of War• Hit-to-Kill Interceptor, High-Power X-Band Radar• Open Architecture Battle Management System
Accomplishments• Flawless Flight Test Performance• First Production Units Under Contract• Growth Program Defined• Growing International Interest RadarRadar
Battle ManagerBattle Manager
LauncherLauncher
THAAD MissileTHAAD Missile
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The Future of Air DefenseRadar• Sector Search and Track• 10 Ton Tractor-Trailer• Not Very Mobile or Transportable• 70’s Design
Engagement Control Station• Single Manned Fire Control Van• 70’s Design
• Monochrome displays• Closed Architecture• Proprietary Software
Launcher• 10 ton Tractor-Trailer• Not Very Mobile or Transportable• ’90’s Electronics
Multi-Function FCR• 360o Coverage• Modern X-Band Design
• Optimized for Fire Control• Highly Mobile and Transportable
Surveillance Radar• 360o Coverage• Modern UHF Design•Optimized for Surveillance• Highly Mobile and Transportable
Launcher• Lightweight• Near-Vertical Launch• Modern Electronics• Highly Mobile and Transportable
Missile• Hit-to-Kill MSE Missile
Tactical Operations Center• Two Manned Fire Control Vans• Open Architecture, “Plug-and-Fight”• Interoperable with Allies
Missile• Hit-to-Kill PAC-3 Missile
Today- Patriot Future- MEADS
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PAC-3 MissileAttributes• Hit-To-Kill (Body-to-Body) Lethality • Destroys Enemy Missiles and the Weapons of
Mass Destruction They May Carry• Kills Entire Threat (Ballistic and Cruise
Missiles, Aircraft, UAV, Helicopters)• Quadruples Available Missiles Per Patriot
Launcher
Accomplishments• Fielded in the U.S. Army• In Production, over 700 missiles delivered• Significant International Interest Continues• Integrated into MEADS system• Combat Proven in Operation Iraqi Freedom
PACPAC--3 Missile3 Missile
PACPAC--3 Missile Intercepts3 Missile Intercepts
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MSE MissileAttributes• Designed to Kill Advanced Threats• Kills at Higher Altitude and Longer Range• Revolutionary 2-Pulse Rocket Motor • MEADS MissileMilestones• Successful Critical Design Review, February 2007• First Successful Flight in May 2008• First Intercept, 1Q 2009 *• Production Tooling, 2008 *• First Deliveries, 2010 *
* Projected
MSE Missile
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MEADSAttributes• NATO Cooperative Missile Defense Development
– U.S., Germany and Italy • Replaces Patriot in U.S. Army
– High Firepower, 360 Degree System – Tactically Mobile– Ultra-Reliable – Low Life-Cycle Cost
• Defeats Advanced 21st Century Threats• Uses PAC-3 MSE Missile
Milestones• Preliminary Design Review, December 2007• Critical Design Review, 2010 *• First Deliveries, 2012 ** Projected
Radar SuiteRadar Suite
Battle ManagerBattle Manager LauncherLauncher
MSE MissileMSE Missile
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Adjacent Business OpportunitiesAir Launched Hit-To-KillFeatures• Integrates PAC-3 Missile Aboard Fighter Aircraft• Provides Boost and Terminal Defense Against Asymmetric
Ballistic and Cruise Missile Threats– Homeland Defense and Contingency Operations
• High Altitude/ High Velocity Launch Provides Long-Range Defense Capability
Accomplishments• Initial Risk Assessment Contract, 2006: It Can Be Done • Follow-On Contract, 2007: Design Canister, Define Flight Test
Demonstration– Demo: Boost Phase Intercept of a SCUD-like Threat Missile
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Adjacent Business Opportunities
Sea Based Terminal DefenseFeatures• Integrates PAC-3 MSE Interceptor into Aegis Combat System • Defeats Shared Army/Navy Threats and Advanced Anti-Ship
Cruise Missiles• Leverages $1.5B+ DoD Investment in PAC-3 Missile Development
Accomplishments• $18M Navy-Funded Study Completed, Study Revealed:
– MSE Integration into Aegis ”Straight Forward”• Currently Executing Next Program Phase in
Classified Environment
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International Programs• Increased Awareness of Proliferating Ballistic, Cruise Threats
• Additional PAC-3 Missile Sales In Patriot User Nations• New PAC-3 customer nations also expressing interest• International Interest in THAAD Growing
• Asia, Middle East• Congressional notification of THAAD for UAE in 2008
• Portfolio Expansion - Aegis Sea Based Terminal and Small Warship Missiles
• Potential Air and Missile Defense Systems Integration Opportunities • Europe and the Middle East• Integrated, Short Range and Multi-Tiered Solutions
• Portfolio Well Positioned for Future Product Sales
International Interest in AMD Systems Growing
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2008 Major Milestones• Delivered the 700th PAC-3 Missile • 3 Successful PAC-3 tests including first two FMS tests• $556M production contract for PAC-3 • Activated THAAD First Unit at Fort Bliss, TX • Successful THAAD intercept -- identified and destroyed
separating target • MEADS PDR approved• Won EAPS contract
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Future Outlook
•• Our Core Products Are HealthyOur Core Products Are Healthy–– Domestic Business Is Strong and WellDomestic Business Is Strong and Well--SupportedSupported–– Expect Strong PACExpect Strong PAC--3 International Sales, THAAD 3 International Sales, THAAD
And MEADS Will FollowAnd MEADS Will Follow•• Good Adjacent Product PotentialGood Adjacent Product Potential•• Expanding Our Portfolio To PositionExpanding Our Portfolio To Position
For The FutureFor The Future•• High Potential For Solid Long Term GrowthHigh Potential For Solid Long Term Growth
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Tom SimmonsVice President, M&FCVice President, M&FC
Fire Control & Situational Awareness
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Fire Control
•• Infrared Infrared •• RadarRadar•• AlgorithmsAlgorithms•• Data LinksData Links•• OpticsOptics
Rotary Wing
Fixed Wing Ground
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Fire Control
Rotary Wing
Fixed Wing
GroundSituational Awareness
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Rotary Wing SystemsProducts Key Pursuits / Emerging Solutions
Target Sight System (TSS)
Apache Video UAS Intelligent Target (VUIT-2)
Longbow Fire Control Radar
Block III Radar Electronic Unit / UTA
Pathfinder
Arrowhead
Modernized Day Sensor
Visible / Near-IR
Joint and Allied Threat Awareness System
(JATAS)
35-Year Leader in Targeting and Surveillance
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Rotary Wing Systems
Products Key Pursuits / Emerging Solutions
Growing Portfolio of Systems/Sustainment
Target Sight System Target Sight System (TSS)(TSS)
Apache Video UAS Apache Video UAS Intelligent Target (VUITIntelligent Target (VUIT--2)2)
Longbow Fire Control RadarLongbow Fire Control Radar
Block III Radar Block III Radar Electronic Unit / UTAElectronic Unit / UTA
Pathfinder
ArrowheadArrowhead
Modernized Day Modernized Day SensorSensor
Visible / Near-IR
Joint and Allied Joint and Allied Threat Awareness SystemThreat Awareness System
(JATAS)(JATAS)
New Wins
New Pursuits
• 500th MTADS – Ahead of Schedule
• 500 To Go for US Army/International
In Production for US Army/International
• $40M VUIT Production• 1st of 10 Battalions
in Theater$2B
JATAS Missile Warning Competition
Demos for US Army
In Test for US Army
$60M TSS
Production
$30MDayside
Development Contract
In Production for US Army
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Fixed Wing Systems
Sniper® Advanced Targeting Pod (ATP)
Sniper ATP for the BSniper ATP for the B--1, 1, BB--52, and C52, and C--130J130J
Products Key Pursuits / Emerging Solutions
Gunship Multispectral Sensor (GMS2)
F-35 Lightning II Electro-Optical Targeting System (EOTS)
F/A-18E/F Infrared Search and Track (IRST)
FF--15C and F15C and F--16 IRST16 IRST
FF--22 Advanced 22 Advanced IRSTIRST
CC--17 LAIRCM 17 LAIRCM Missile Warning SystemMissile Warning System
F-22 Missile Launch Detector
Long Range Targeting and Platform Protection
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Fixed Wing Systems
Sniper ATP for the BSniper ATP for the B--1, 1, BB--52, and C52, and C--130J130J
Products Key Pursuits / Emerging Solutions
Gunship Multispectral Sensor (GMS2)
F-35 Lightning II Electro-Optical Targeting System (EOTS) FF--15C and F15C and F--16 IRST16 IRST
FF--22 Advanced 22 Advanced IRSTIRST
CC--17 LAIRCM 17 LAIRCM Missile Warning SystemMissile Warning System
F-22 Missile Launch Detector
Growing US and International Portfolio
Sniper® Advanced Targeting Pod (ATP)
F/A-18E/F Infrared Search and Track (IRST)
New WinsNew Pursuits
B-1 In ProductionB-52 In TestC-130J Pending
USAF Strategic Shift
to IRST
USAF Strategic Shift
to IRST
F/A-18 IRST Navy Contract
$80M GMS2 Production
F-35 EOTSInitial Production
Negotiated
MLD In Production
• 518 Contract/ 263 Backlog 2008 Awards:
• 83 USAF (Largest to Date)• 88 Intl (UK, Singapore,
Saudi, Morocco)• > $300M
Decision 4 Q 2008
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Ground Systems
Common Common ElectroElectro--Optical Optical
SensorsSensors
Ground Mobile Ground Mobile Situational Awareness Situational Awareness Technology (GMSAT)Technology (GMSAT)
Bringing Situational Awareness to Ground Combat
Products Key Pursuits / Emerging Solutions
MEADS InternalMEADS Internal Communication Communication
SubsystemSubsystem
Video UAS Intelligent Video UAS Intelligent Target (VUITTarget (VUIT--ALL)ALL)
UnUn--Cooled Cooled eXtendedeXtended Range (UCXR)Range (UCXR)Ground Soldier Ground Soldier
EnsembleEnsemble
Rocket Propelled Rocket Propelled Grenade DefeatGrenade Defeat
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Ground SystemsGround Systems
Common Common ElectroElectro--Optical Optical
SensorsSensors
Ground Mobile Ground Mobile Situational Awareness Situational Awareness Technology (GMSAT)Technology (GMSAT)
Technology Success in Adjacent Markets
Products Key Pursuits / Emerging Solutions
MEADS InternalMEADS Internal Communication Communication
SubsystemSubsystem
Video UAS Intelligent Video UAS Intelligent Target (VUITTarget (VUIT--ALL)ALL)
UnUn--Cooled Cooled eXtendedeXtended Range (UCXR)Range (UCXR)Ground Soldier Ground Soldier
EnsembleEnsemble
Rocket Propelled Rocket Propelled Grenade DefeatGrenade Defeat
US Army Night Vision Lab
Contract
$75M Development Scope Increase
CustomerDemos
$1.5B Opportunity
$40MMICS Win
CustomerDemos
VUIT Expansion to Additional
Platforms
New WinsNew Pursuits
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Situational Awareness Objectives
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Observe | Orient | Decide | Act
Observe: See the Target
Target Sight
Sensor
Gunship Multisensor
System
Common Electro
Optical Sensor
Sniper Advanced
Targeting Pod
Missile Launch
Detectors
F-35 EOTS
Longbow FCRVUIT-2
Arrowhead
Over 7600 Systems Delivered to 24 Countries
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Orient: Evolution to 3-D
Observe | Orient | Decide | Act
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Orient: Google Earth on Steroids
Observe | Orient | Decide | Act
Video Clip
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Observe | Orient | Decide | Act
Decide: Joint Identification and Confirmation
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Decide: Joint Identification and Confirmation
Sniper ATP Video Data Link
Sniper ATP Video Data Link
Apache VUIT-2Apache VUIT-2 Observe | Orient | Decide | Act
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Act: Engage The Enemy
Observe | Orient | Decide | Act
Apache
Video ClipVideo Clip
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Act: Engage The Enemy
Observe | Orient | Decide | Act
Gunship
Video Clip
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Act: Engage The Enemy
Observe | Orient | Decide | Act
Sniper ATP
Video Clip
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Situational Awareness Expands from Current Systems to Additional Aircraft and Vehicles
Committed Opportunities Worldwide
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Summary• Fire Control is a World Leader in Design and Sustainment of
High Definition Optical Systems
• Quality and Reliability of Targeting Systems Enhances Military Acceptance of Adjacent ISR Products
• Fire Control Plan Succeeding ( )
• Situational Awareness is a Large Business Opportunity
As Engagements Subside Overwatch and Persistent Surveillance Will Continue
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Dan SchultzDan SchultzVice President, MS2Vice President, MS2
Littoral Combat ShipLittoral Combat Ship
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Why The Navy Needs LCS?Emerging Threats are Challenging our Way of LifePiracy, Small Boats, Blockading Ports & Mines
Budgets Strained to support Current Operations and Build the Next NavyAffordable, Modular, Reconfigurable Ship to meet any threatIncrease USN’s Reach; Access 4,000+ PortsSpeed and Range “To Flex” – Increase Forward PresenceMinimally Manned; Highly Automated
LCS…Affordable Solutions for Changing Threats
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Lockheed Martin LCS Design Advanced Semi-Planing Steel Monohull
SKWS Decoy LaunchersSKWS Decoy LaunchersRolling Airframe Missile System Rolling Airframe Missile System 3D Radar3D Radar
EOD & GFCSEOD & GFCS
Modular Weapon Zone for Medium Caliber Gun
Modular Weapon Zone for Medium Caliber Gun
COMBATSS-21 Combat Management System & Open Architecture Total Ship Computing Environment
COMBATSS-21 Combat Management System & Open Architecture Total Ship Computing Environment
Facilities for 2 Helos or 1 Helo & 3 VTUAVs
Facilities for 2 Helos or 1 Helo & 3 VTUAVs
Integrated Comms Suite
Integrated Comms Suite
Steel Semi-planing Monohull with Aluminum Superstructure
Steel Semi-planing Monohull with Aluminum Superstructure
SPRINT SPEED > 40 kts (full load) LENGTH (LOA) 115.3 mBEAM (BOA) 17.5 mDRAFT 4.1 mDISPLACEMENT ~3,000 MTRANGE @ Sprint >1,000 nmRANGE @ Cruise >3,500 nm
SPRINT SPEED > 40 kts (full load)LENGTH (LOA) 115.3 mBEAM (BOA) 17.5 mDRAFT 4.1 mDISPLACEMENT ~3,000 MTRANGE @ Sprint >1,000 nmRANGE @ Cruise >3,500 nm
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LCS 1 Status
USN’s Board of Inspections & Survey – LCS 1 is “Capable, Well Built…”Ship Exceeded Expectations
0 to 40+ Knots in 2 Minutes Tremendous High Speed Handling During TurnsShip turned on axis With Steerable Waterjets EngagedCombat Management Systems: Demonstrated Detect To Engage for Weapons
Sea Change in Shipbuilding•Concept to Delivery in 6 years•Best Acceptance Trial in last 4 Shipbuilding programs
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Video Clip
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LCS Roadmap*Domestic
International
FY 12-19
+EXCOMM
RadarLaunching
System
Decoy Launcher
Multi Mission / LM Systems
Sustainment
COMBATSS 21
Mission Package
FY 10
FY 11
FY 09 Millennium Gun
Israel
Saudi Arabia
(2)
(3)
(3)
(4-6/Yr)Total Domestic Program
55 Ships
International Market
14 - 40 Ships
(14)
(2)
* Potential Opportunity
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SummaryLCS 1 Delivered and Performing Well
Exceptional Acceptance trialsSuccessfully Demonstrated a Innovative / Robust Propulsion Train
LM Team Providing Sustainment Support for LCS 1 … New market Area for LM LCS teamOn Track for Early 2009 Ship AwardSignificant Domestic Opportunity 50+ ships over next decadeSignificant International Interest (18 Navies) … Two near Term Opportunities
LCS, an Enterprise in the Making
LMT Investor Conference Orlando 11_07_08 8
LMT Investor Conference Orlando 11_07_08 1
Orlando CarvalhoOrlando CarvalhoVice President, MS2Vice President, MS2
Sea Based Missile Defense
LMT Investor Conference Orlando 11_07_08 2
Ballistic Missile Defense SystemA
ltitu
de
Range (km)
0 0 0 0600 1,300 5,500 ~10,000
Boost
Midcourse
Terminal
GMDAegis BMD
Aegis BMD
Aegis BMD
Aegis BMD
Aegis BMD
ABL KE Boost
ABL KE Boost
ABLABL
THAADTHAAD
THAADArrowArrowPAC-3PAC-3
Short RangeBallistic Missile
(SRBM)
Medium RangeBallistic Missile
(MRBM)
Intermediate RangeBallistic Missile
(IRBM) ICBM
DSP(Acquisition Sensor)
STSS
LMT Investor Conference Orlando 11_07_08 3
MS2 Ballistic Missile Defense Portfolio
ProductProduct MEADS RadarMEADS Radar TPSTPS--5959 Aegis Weapon Aegis Weapon SystemSystem
SS--Band Advanced Band Advanced RadarRadar
HAAHAA
CapabilityCapability Air Defense, Terminal Air Defense, Terminal DefenseDefense
Air Defense, Terminal Air Defense, Terminal Defense Defense
SeaSea--Based Missile Based Missile Defense (SBMD)Defense (SBMD)
Terminal, MidTerminal, Mid-- Course DefenseCourse Defense
Terminal, MidTerminal, Mid-- Course DefenseCourse Defense
Program PhaseProgram Phase Production, Spiral Production, Spiral DevelopmentDevelopment
Production, Spiral Production, Spiral DevelopmentDevelopment
Spiral Development, Spiral Development, DeploymentDeployment IRADIRAD DevelopmentDevelopment
International International OpportunityOpportunity ‘‘05 05 –– ‘‘3030 ‘‘05 05 –– ’’1515 ’’05 05 –– ’’1515 ’’12 12 –– ’’1818 ’’12 12 –– ’’1515
LMT Investor Conference Orlando 11_07_08 4
Aegis BMD RoadmapMDA Sponsored
DevelopmentSingle Mission Focus
Navy Sponsored Development
Multi-MissionInteroperability
Radar Upgrades
Global Political Support Through
International Cooperative Programs
Target Platforms
Domestic
Modernized Aegis Cruisers & Destroyers
CG(X)
F-100
Kongo
Produces
Global, Mobile & LinkedMulti-Mission Focus
Spiral UpgradesExtended Battlespace
KDX
3.x4.x
5.x
LCS
AWD
Self defense
Area defense
BMD
DDG 51 Follow-On
Integrated Air & Missile Defense
Funded & on scheduleCompleted
Open Architecture (OA)Solid-State Radar
Multi-Mission Signal Processor
International
+ =
Integrates with
LMT Investor Conference Orlando 11_07_08 5
Operation Burnt Frost
“Challenge” to “Execution” in less than 45 days
““ChallengeChallenge”” to to ““ExecutionExecution”” in less than 45 daysin less than 45 days
LMT Investor Conference Orlando 11_07_08 6
Satellite Intercept
Aegis BMD Accomplishments to Date
JCTV-1
Joint Cooperative Research
Future Testing• JFTM-2 (11/08): Allied Intercept• FTM-15 (5/09): Engage IRBM (Launch on TADIL)
• FTM-16 (9/10): SM-3 Block IB Engage MRBM
Future Testing• JFTM-2 (11/08): Allied Intercept• FTM-15 (5/09): Engage IRBM (Launch on TADIL)
• FTM-16 (9/10): SM-3 Block IB Engage MRBM
PAC EX IVPAC EX IV
Homeland DefensePAC EX
I, II, IIIIFT-9 IFT-10
LRS&T
GT-180Glory Boost
Pacific Phoenix
Sea Based Terminal
SM-3 BLK IAAegis 3.6First Coalition Test
First Intercept
FM-2
Ascent Phase Intercept
Descent Phase With Aim Point Adjust
No Notice Firing
Simultaneous BMD / AAW Engagements Auto-BMDPulse DACS
First Firing from Japanese Destroyer
17 Dec 07JFTM-1
5 Jun 08FTM-14
Engage SRBM in Terminal
First ICBM Tracking - 10 Sep 02
25 Jan 02 FM-313 Jun 02 FM-4
21 Nov 02 FM-518 Jun 03 FM-6
11 Dec 03 FTM-04-1 FM-7
24 Feb 05 FTM 04-2 FM-8
17 Nov 05
Separating Warhead
FTM-1022 Jun 06 FTM-11
7 Dec 06 FTM-11 Event 4
26 Apr 07 FTM-1222 Jun 07
6 Nov 07FTM-13
Engage DualSRBMs
Aegis BMD, We Deliver!
LMT Investor Conference Orlando 11_07_08 7
Aegis BMD Evolution - Meeting the Mission Needs
Capability Fielding Estimated Timeframe Status
1st Generation
• Initial Surveillance Capability to meet Presidential direction
• Certified Integrated Air Defense & Ballistic Missile Surveillance / engagement
• Certified Near Term Sea Based Terminal
• 21 ships • 2008• Development complete• 18 ships fielded• 3 remaining in process
2nd Generation • Increased capability to identify and engage complex ballistic Missile threats • 21 ships • 2011 • Development in
process
3rd Generation • Integrated Air and Missile Defense• Over the horizon Air Defense
• Potential deployment to all 84 Aegis ships • 2013 • Development in
process
4th Generation• Extended Range integrated air and
Missile Defense• Additional Radar capability
• Aegis DDG continuation (12 ships)
• Potential backfit to Aegis fleet
• 2015 • Proposed
Continued Business Growth through New Capability Development
LMT Investor Conference Orlando 11_07_08 8
Shipbuilding Course Change…
New:
FY09 FY10* FY11 *
FY12* FY13* FY14* FY15*FY07/08
DDG 1000
CG(X)
Old:
DDG Continuation
DDG 1000
CG(X)
FY09 FY10 FY11 FY12 FY13 FY14 FY15FY07/08 FY16 FY17
*
*$200M AP / Spares * Projected Based on OPNAV N8’s 31 July ‘08 HASC Testimony
4th Generation Aegis BMD
POM 10 Expected to Codify the New Plan
LMT Investor Conference Orlando 11_07_08 9
Ship Deliveries planned as of October 2008
USS JOHN S. McCAIN (DDG 56)
USS JOHN S. McCAIN (DDG 56)USS PORT ROYAL (CG 73)USS PORT ROYAL (CG 73)USS SHILOH (CG 67)USS SHILOH (CG 67) USS DECATUR
(DDG 73) USS DECATUR
(DDG 73)USS FITZGERALD (DDG 62)USS FITZGERALD (DDG 62)
USS VELLA GULF (CG 72)
USS VELLA GULF (CG 72)
USS MONTERREY (CG 61)
USS MONTERREY (CG 61)
USS THE SULLIVANS (DDG 68)
USS THE SULLIVANS (DDG 68) JS MYOKO
(DDG 175)JS MYOKO(DDG 175)
11/2009 11/2010
USS O’KANE (DDG 77)USS O’KANE (DDG 77) USS BENFOLD (DDG 65)USS BENFOLD (DDG 65) USS PAUL HAMILTON(DDG 60)
USS PAUL HAMILTON(DDG 60)USS HOPPER (DDG 70)USS HOPPER (DDG 70)USS MILIUS (DDG 69)USS MILIUS (DDG 69) USS HIGGINS
(DDG 76) USS HIGGINS
(DDG 76)
USS LAKE ERIE (CG 70)USS LAKE ERIE (CG 70)
USS CURTIS WILBUR(DDG 54)
USS CURTIS WILBUR(DDG 54)
USS STETHEM(DDG 63)
USS STETHEM(DDG 63)
USS RUSSELL(DDG 59)
USS RUSSELL(DDG 59) USS JOHN PAUL JONES
(DDG 53) USS JOHN PAUL JONES
(DDG 53) USS RAMAGE (DDG 61)USS RAMAGE (DDG 61) USS Stout (DDG 55)USS Stout (DDG 55)
JS KONGO(DDG 173)
JS KONGO(DDG 173) JS CHOKAI
(DDG 176)JS CHOKAI(DDG 176)
JS KIRISHIMA(DDG 174)
JS KIRISHIMA(DDG 174)
Additional Ships to be Upgraded International
Aegis BMD At-Sea, On PatrolUpgraded from Surveillance to Engagement Capability
LMT Investor Conference Orlando 11_07_08 10
International SBMD Expanding the International Base
•• Develop International SeaDevelop International Sea--Based Terminal MarketBased Terminal Market•• Expand SBMD product set into Expand SBMD product set into ““nonnon--AegisAegis”” ShipsShips•• Provide sustainment and upgrades throughout lifecycleProvide sustainment and upgrades throughout lifecycle
Sea-based BMD FunctionalitySea-based BMD Functionality
Japan BMDDDG 176
Japan BMDDDG 173 Japan BMD
DDG 174
Japan BMDDDG 175
FYFY 0606 0707 0808 0909 1010 1111 1212 1313 1414 1515 1616 1717 1818
BudgetedFuture Opps
Korea KDXIIIBMD Upgrades
Japan Advanced BMD
IsraelSBT
AustraliaSEA4000
BMD Upgrades
NorwaySBT
Japan2319-2320
DDG
SaudiSBT
GreeceBMD
Japan BMD OAUpgradesATAGO
Japan BMD OAUpgradesKONGODutch
BMD
GermanBMD
SpainF-100
BMD Upgrades
•• Japan is International Aegis BMD LeaderJapan is International Aegis BMD Leader
LMT Investor Conference Orlando 11_07_08 11
Tank
endo-atmosphere
RV
Terminal Operating Area
Midcourse Operating Area
SM-3
SBT Interceptor
Tank
endo-atmosphere
RV
Terminal Operating Area
Midcourse Operating Area
SM-3
SBT Interceptor
International Sea-Based Terminal and Aegis Ashore - Creating New Base
Critical Enablers
MarinizedPatriot Missile
Aegis Open Architecture / COMBATSS 21
MK 41 VLS
Sea-Based Terminal
Aegis Ashore
BSP
Marinized Patriot Missile Enables BMD into Small Ships Aegis Ashore Provides Needed BMD Surveillance & C2
LMT Investor Conference Orlando 11_07_08 12
Sea-Based Missile Defense Summary• Flawless Execution• Aegis BMD Demand
Signal Growing…– 18 to 21 Ships
(Atlantic Fleet expansion)– Aegis BMD to entire
Aegis Fleet– Aegis DDG Continuation– Japan: Modernize and
Expand to 8 BMD shootersNew Construction DDG51s
Lockheed Martin Delivering Unmatched Sea-Based Ballistic Missile Defense Capabilities
LMT Investor Conference Orlando 11_07_08 13
LMT Investor Conference Orlando 11_07_08 1
Jeff BantleVice President, SI-O
VH-71 Presidential Helicopter
LMT Investor Conference Orlando 11_07_08 2
Increment 1 : • Immediate Need to Provide Capability • Comm/Nav/Equal to or Better than Current
Capabilities• Executive Accommodations Equal to or
Better Than Current Capabilities• 4 Test Vehicles (1 Contr.)• 5 Production Aircraft
“In the post-September 11 national security environment, I am convinced of our need to reexamine the replacement schedule for the VH-3D presidential helicopter fleet.”
“… I am concerned about identified VH-3D maintenance and performance deficiencies that directly impact the ability to provide requisite level of support to the president.”
Source: Chief of Staff Andrew Card Memo 26Nov02
VH-71 Program Background
Increment 2:• Capability Driven• Full Command and Control Capability for the
President• Safe Transport for the next 40 years• 4 Test Vehicles (1 Contr.)• 23 Production Aircraft
LMT Investor Conference Orlando 11_07_08 3
VH-71 Test Vehicle StatusTV1 – 700+ Flight Hours
TV2 – (Pax) 50+ Flight Hours
TV5 – (Pax) 23+ Flight Hours
TV3 – Missionization
TV4 - Missionization
Entered Flight Test Sept 2005
TV1
First Flight Jul 3, 2007Arrive in US Oct 16, 2007
TV2
TV5
First Flight Dec 11, 2007Arrive in US Dec 19, 2007
First Flight Feb 27, 2008 Arrive in US Mar 17, 2008
First Flight Mar 19, 2008Arrive US Apr 24, 2008
TV3 TV4
LMT Investor Conference Orlando 11_07_08 4
PP Aircraft – Build Line
VH-71 Production Vehicle Status• PP1 – First Flight – Sept ’08
• Delivery to U.S. in November
• PP2 – Completed NAVAIR 90% Electrical Inspection
• PP3 – Completed NAVAIR 60% Electrical inspections
• PP4 – Fuel flow test
• PP5 – Stage 3 build
PP1 - First Flight Sept 22, 2008
PP2 – Flight HangarPP3 – Build Line
PP4 – Build Line PP5 – Build Line
Production Vehicles to be delivered to U.S. in next 6 months
LMT Investor Conference Orlando 11_07_08 5
VH-71 Increment 2• Rebaseline In Process
– System Engineering Technical Review process lowers risk
– Reduced Concurrency with Increment 1
• Key Stakeholders :– Full Capability Needed– US101 is the Right Platform
LMT Investor Conference Orlando 11_07_08 6
Total Business Opportunity2012 2015 2018
Base ProgramBase Program
VHVH--71 Follow On71 Follow On
New ProgramNew Program
Increment 2
Logistics Support and Training
ECPs
CH-71 Greentops
LRIP/Production
Increment 1
Multi Billion Dollar Opportunity
LMT Investor Conference Orlando 11_07_08 7
During the Last YearAll Test Vehicles Completed (July ’07, Dec ’07, Feb ’08, Mar ’08 )
All Test Vehicles Delivered to US (Oct ’07, Dec ’07, Mar ’08, Apr ’08 )
Pax River NAS Labs Operational Jul ’08
Increment 1 OTB Proposal Delivered Sept ’08
Increment 2 Proposal received Sept ’08
First Production Vehicle completed first flight Sept ’08
FY09 Funding Inc 1 $735M / Inc 2 $100M Sept ’08
Increment 1 Full Function Software complete Sept ‘08
LMT Investor Conference Orlando 11_07_08 8
VH-71 Program Summary• Increment 1 - Progress Continues
– Test Vehicles in the US– Production aircraft completing build– All Key Performance Parameters
being met
• Increment 2 - Moving forward on Rebaseline
– White House – Full set of Requirements Remain
– US101 is the Right Platform
LMT Investor Conference Orlando 11_07_08 9
LMT Investor Conference Orlando 11_07_08 1
Steve RamseyVice President, SI-O
Ground Vehicles
LMT Investor Conference Orlando 11_07_08 2
Ground Vehicles
LMT Investor Conference Orlando 11_07_08 3
Customer Needs Drive Strategy
• LM market gap analysis in 2002 -- enter military vehicle market
• Wheeled vehicle fleet needs to be replaced– 60% of fleet over 20 years old
– Customer ops tempo wearing out fleet
– New threats require new vehicles
• Customer needs a “system”, not a “truck”
$20B+ JLTV Opportunity
LMT Investor Conference Orlando 11_07_08 4
Why Lockheed Martin?
• Dedicated Team Established– Hired 50+ automotive/
customer/user experts– 75+ patent/applications/
disclosures– Detroit/Quantico offices
established• Acquired Key Technologies
– Purchased HMT Vehicles– Early IRAD prototypes
• Developed Customer Intimacy
–
• Strategic Partnering• Systems Approach to JLTV
Strategically Positioned to win JLTV and Other Int’l Opportunities
LMT Investor Conference Orlando 11_07_08 5
Drive TypeWeight Class
End Use
WheeledWheeled
TrackedTracked
LightLight
HeavyHeavy
MediumMedium
Logistic SupportLogistic Support
Mission SystemsMission Systems
CombatCombat
Special MissionSpecial Mission
Military Vehicle Market Segments
= Current LM Play= Current LM PlayFTTSJLTV TDOUVSMiddle East
STRAT-VLWPMCanada
LAV-C2Saudi-C2JLTV TD
MRAP “Lite”MPC
LMT Investor Conference Orlando 11_07_08 6
Infantry Carrier
General Purpose
JLTV Program OverviewCustomer: Joint: USMC/Army led
International cooperation desired (e.g. Australia, UK)
Program Description: Replace existing HMMWV fleet
Schedule: Tech Development Phase – October 2008- 3 Awards
SDD Phase – 2010 - TBD
Production Phase – 2012 - TBD
Production: 63,321 JLTVs thru 2020
Value: ~$20B+
Utility Vehicle
170,000+ HMMWVs Worldwide - ~$75B
LMT Investor Conference Orlando 11_07_08 7
Fabricated Assemblies
Vehicle SafetySystems
Mobility & Protection SystemsArmor, High Volume Assembly
Chassis DesignMaterial Expertise
Engines
Transmissions
Advanced Networking/Routing
Netcentric Computer System
JLTV Team Lockheed Martin
Modeling & Simulation
Prime, Design Authority, Systems Integration, C4ISR
Development, T&E, Advanced Systems Capabilities,
Supportability
Systems Integration - OwegoSimulation, Training & Support
Integrated Logistics/Training
Missiles & Fire ControlSurvivability, Modeling & Simulation
Corporate ResourcesNet-Centricity - Lighthouse
Advanced Development ProgramsMaterials (Super TI)
LMT Investor Conference Orlando 11_07_08 8
TD Program Overview• Award Date : Oct. 29• Value: Approx. $50M• Duration: 27 Months• Deliverables:
– 7 Vehicles– 4 Trailers– Blast Hulls– Ballistic Panels– 12 Month Test Program– Data similar to SDD program
• Anticipated Outcome: Inform requirements for SDD Phase or direct advancement to Production Contract
LMT Investor Conference Orlando 11_07_08 9
LM JLTV Operational Prototypes
JLTV Infantry Carrier Operational Prototype 22,000+ Miles of Test
COMPLETED!
JLTV Utility Vehicle Prototype5,000+ Miles of Test
COMPLETED!
Demonstrating System Maturity
LMT Investor Conference Orlando 11_07_08 10
LMT JLTV General Purpose Test Vehicle
JLTV General Purpose Prototype – Operational and Ready for Test!
LMT Investor Conference Orlando 11_07_08 11
MRAP “Lite”• Driven by Urgent Operational need
for Afghanistan• MRAP protection, JLTV Speed and
Mobility• Production of 2,000 Vehicles in
2009/2010• RFP expected in November
– LM Team JLTV will respond with a JLTV variant
• JLTV-CVL (Combat Vehicle – Light)
Additional $1-2B Opportunity
LMT Investor Conference Orlando 11_07_08 12
OUVS - Operational Utility Vehicle System• Customer: UK MoD• 8,000 vehicles desired• LM leading UK Team• PQQ responded to in August
– Competition – 36 vehicles from 18 companies– Down selected to 7 competitors for small, 6
competitors for large• LM one of 4 companies down selected in both
• ITT expected May 2009, Contract Award April 2011
Additional ££1B+ Opportunity1B+ Opportunity
LMT Investor Conference Orlando 11_07_08 13
Video Clip
LMT Investor Conference Orlando 11_07_08 14
•• JLTV JLTV –– TD AwardTD Award–– JLTV General Purpose TV BuiltJLTV General Purpose TV Built–– 25K+ Tested Miles on TVs25K+ Tested Miles on TVs–– Strategic TeamingStrategic Teaming
•• OUVSOUVS–– DownselectedDownselected
•• Pursuing International Pursuing International OpportunitiesOpportunities
Ground Vehicle Summary
LMT Investor Conference Orlando 11_07_08 15
LMT Investor Conference Orlando 11_07_08 1
Doug GreenlawVice President, STS
Simulation, Training & Support
LMT Investor Conference Orlando 11_07_08 2
STS Overview• A Leader in US Military Market for 10+
Years
• Operate in over 50 Locations Worldwide
• Balanced Portfolio Across DoD
• Significant Expansion into International and Civil Sectors
Navy / Marines24%
Army27%
Air Force49%
International
DefenseCivil Gov't/
Intelligence
84%84%5%5%
11 %11 %
LMT Investor Conference Orlando 11_07_08 3
What we do …
Video Clip
LMT Investor Conference Orlando 11_07_08 4
What we do …
SimulationSimulation TrainingTraining SupportSupport
““Reinvent How People Prepare Reinvent How People Prepare For Their TomorrowFor Their Tomorrow””
LMT Investor Conference Orlando 11_07_08 5
Market Trends
Demographics ChangingTechnology Accelerating
Emergence
Traditional Training Approaches will not Suffice
LMT Investor Conference Orlando 11_07_08 6
Leading the Training RevolutionTraining Today
• Training is a Discrete Event
• Instructor-centric
• Fixed Curriculum
• Considered a Cost
Training Tomorrow• Persistent, Anytime / Anywhere, Lifelong
• Learner-centric
• Adaptive to Learner Experience and Style
• Viewed as an Investment
LMT Investor Conference Orlando 11_07_08 7
Key Technologies
Science of Learning Human Performance Engineering
Performance Optimization Virtual Worlds
LMT Investor Conference Orlando 11_07_08 8
Business Strategy
LMT Investor Conference Orlando 11_07_08 9
Aug Aug ‘‘07 Investor Conference07 Investor Conference
• UK Military Flying Training System– Program Well Underway– 25 Year Partnership
• Singapore Basic Wings Course– Achieved Initial Capability in 19 Months– 20 year Partnership
First to Market with Turnkey Training Approach
LMT Investor Conference Orlando 11_07_08 10
Comprehensive Training Solutions Special Operations Mission Rehearsal
Lockheed Martin Aircraft JSF Training Solution
Flight Training
LMT Investor Conference Orlando 11_07_08 11
Ground Training
Live Training Vehicle Training
Command Training & Wargaming Urban Operations
LMT Investor Conference Orlando 11_07_08 12
Logistics
Support & Test Equipment Sensor Systems
Logistics Information Fusion Autonomic Logistics
LMT Investor Conference Orlando 11_07_08 13
Market Evolution
CommodityCommodity
Class RoomsImage Generators
Market Value Chai
nMarket Va
lue Chain2000
1990
1980
2010ProductProduct
Training Devices
10x
ServiceService
Training Centers
10x
F‐35 JSF Training System
10x
ExperienceExperience
LMT Investor Conference Orlando 11_07_08 14
Turn Key Training Growth
US Traditional Training US Traditional Training ProviderProvider
UK Military Flying UK Military Flying Training SystemTraining System
Singapore Basic Wings Singapore Basic Wings CourseCourse
FF--35 JSF Training 35 JSF Training SolutionSolution
US Turn Key TrainingUS Turn Key TrainingProviderProvider
25 Yr Public Private Partnership (PPP)
20 Yr Privately Finance Initiative (PFI)
US and 8+ International Countries
Middle East Training CentersMiddle East Training Centers
Market Changing Approach
Multiple Air & Ground Opportunities
Foundation for International Growth
LMT Investor Conference Orlando 11_07_08 15
Turn Key Business
Singapore Basic Wings Course
UK Military Flying Training System
Singapore FighterWings Course
Australia PilotTraining System
UAE TrainingSystems Integrator
Kuwait Training Center
India Multi‐Role Combat Aircraft
F‐35 Joint Strike Fighter
Traditional
TrainingProducts
LMT Investor Conference Orlando 11_07_08 16
Adjacent Market Opportunities Expansion
Disaster Disaster
PreparednessPreparednessSimulation BasedSimulation Based
AcquisitionAcquisitionNurse Nurse
EducationEducationTeacher Teacher
DevelopmentDevelopment
Modeling & Simulation Training & Learning
LMT Investor Conference Orlando 11_07_08 17
Summary• STS is Redefining Training and Support
– A Leader in US Military Market for over 10 Years– Recognized Training Arm of Corporation
• Positioned for Growth …– Rapidly Growing International Portfolio – Leading Implementation of Military Turn Key Training Model– Reinventing How People Prepare For Their Tomorrow
LMT Investor Conference Orlando 11_07_08 18
Facility Tour
LMT Investor Conference Orlando 11_07_08 19
iTouch Tour Assistant
Resilient
Core
Agility/Speed
to Market
?
Market
Expansion
Innovative
Business
Models
Innovative Technology
Resilient Core
Agility/Speed
to Market
?
Market
Expansion
Innovative
Business
Models Innovative
Technology
LMT Investor Conference Orlando 11_07_08 20
Tour Layout & Flow
Maritime Training
& Controls
LMIS
Turn KeyTraining Virtual
Training
CombatConvoySimulator
11
22
EndEnd
Tactical
Ops
Center
Military OperationsIn Urban Terrain
UnmannedOperations
Logistics IT& Sensors
F‐35 JSF& Space
STS Solutions CenterSTS Solutions Center
After Action
Review
33
VisualDome
Resilient Core Agility/Speed to
Market
?
Market
Expansion
Innovative
Business
Models Innovative
Technology
GroundTraining
Incident‐Management
Simulation
55
Yesterday’s
Classroom
44
LMT Investor Conference Orlando 11_07_08 21