EX-99.1 2 dex991.htm CHARTS USED IN SENIOR EXECUTIVE PRESENTATIONS Charts used in senior executive presentations
Welcome and Introduction
Stuart Davis
SVP, Investor and Employee Owner Relations
Exhibit  99.1


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2
Energy | Environment | National Security | Health | Critical Infrastructure
LUNCH
12:00 PM
Charles Koontz
IT and Network Solutions Group and Health Campaign
11:35 AM
Joe Craver
Infrastructure, Logistics and Product Solutions Group and
Energy Campaign
11:10 AM
Larry Cox
Cyber Campaign
10:50 AM
Stu Shea
Intelligence, Security and Technology Group and Space
Superiority Campaign
10:25 AM
Deb Alderson
Defense Solutions Group and C4ISR Campaign
10:00 AM
BREAK
9:45 AM
Corporate Q&A
9:15 AM
Mark Sopp
Financial Overview
8:55 AM
Larry Prior
Operational Perspectives
8:25 AM
Ken Dahlberg
Enterprise Overview
8:05 AM
Stuart Davis
Welcome
8:00 AM
Agenda


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Energy | Environment | National Security | Health | Critical Infrastructure
SAIC Investor Relations Website
http://investors.saic.com
Replay and presentation
materials available


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Energy | Environment | National Security | Health | Critical Infrastructure
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
results,
performance,
achievements,
or
industry
results
to
be
materially
different
from
any
future
results,
performance,
or
achievements
expressed
or
implied
by
these
forward-looking
statements.
Some
of
these
factors
include,
but
are
not
limited
to,
the
risk
factors
set
forth
in
the
Company’s
Annual
Report
on
Form
10-K
for
the
year
ended
January
31,
2008,
and
other
filings
that
the
Company
makes
with
the
SEC
from
time
to
time.
Due
to
these
uncertainties
and
risks,
persons
who
view
these
presentations
are
cautioned
not
to
place
undue
reliance
on
such
forward-looking
statements,
which
speak
only
as
of
October
15,
2008.
The
Company
disclaims
any
duty
to
update
guidance
or
any
other
forward-looking
statement
provided
in
these
presentations
to
reflect
subsequent
events,
actual
results
or
changes
in
the
Company's
expectations.
Forward Looking Statements
This presentation describes financial results through 7/31/08 (FY2009 Q2)


Enterprise Overview
Ken Dahlberg
Chairman and Chief Executive Officer


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Energy | Environment | National Security | Health | Critical Infrastructure
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 our Shared Services Center
Investing to pursue large opportunities and create technical discriminators
Won 58 $100M+ programs since IPO, with 137 more in pipeline
Increasing IR&D in ISR, security products, C2, and precision strike
Developing strategies for breakout growth opportunities
Energy management and efficiency
Health data records management
Managing our portfolio to fuel long-term EPS growth
Exit non-core commodity/low margin businesses
Emphasize more “noble work”
in system integration and some products
Don’t forsake our core technical services business
Cyber
Cargo inspection


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7
Energy | Environment | National Security | Health | Critical Infrastructure
Smart People Solving Hard Problems
09-1844-ID-01
National Security
Co-Lead Systems Integrator on Army’s #1 program
Prime contractor for DoD network infrastructure
~$2B in Intelligence (mission support, IT, R&D)
Leading integrated supplier for DLA
Critical Infrastructure
#1 provider of non-intrusive inspection systems
Selected for 8 of 9 Secure Freight Initiative ports
#1 CBRN services provider (trained >400K first responders)
#1 provider of DHS data center solutions
Driving effectiveness of oil recovery for BP
Design/build more energy-efficient facilities for GM
Leading provider of climate and environmental data
services to NOAA and USGS
Energy and the Environment
Operate the National Cancer Institute
Support IT for military clinical systems worldwide
Leading biosurveillance
efforts for CDC and DHS
Leading VA/DoD data sharing effort
Health


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8
Energy | Environment | National Security | Health | Critical Infrastructure
8
Company Transformation
09-1844-ID-02
Transformation expected to be substantially complete in FY11
Implement Strategic Planning
Incentivize Collaboration
Create Margin Expansion Course
Stand up Shared Service Center
Bring in New Line Leadership
Revise Equity Programs
Roll out Costpoint
Pilots
Lay out Real Estate Strategy
Step up IR&D Spending
Develop Business ConOps
Reinvigorate Bus Dev
Roll out Targets to All Levels
Step up Recruiting Programs
Implement Branding Campaign
Sell Telcordia
Complete IPO
Focus Commercial
Achieve SOx
compliance
Reorganize AMSEC
FY05
FY06
FY07
FY08
FY09
Foundational Issues
New Growth Model
More Competitive Posture
Revenue $6.91B
Revenue $7.52B
Revenue $8.06B
Revenue $8.94B
Revenue $9.70B-9.98B
Organic Growth 17%
Organic Growth 3%
Organic Growth 4%
Organic Growth 7%
Organic Growth 6%-9%+
Operating Income 6.7%
Operating Income 6.3%
Operating Income 7.1%
Operating Income 7.5%
Operating Income 7.7%-7.8%
Roll out Costpoint
Wave 1
Increase B&P Spending
Roll out Second Campaigns
Roll out First Campaigns
Evaluate Capital Structure
Realign Businesses
Revise BoD Composition, Size,
Committee Structure
Instill Culture of Discipline
Move Discretionary Resources
to Higher Levels
Change Incentive Structure


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9
Energy | Environment | National Security | Health | Critical Infrastructure
SAIC Core Values and Purpose


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10
Energy | Environment | National Security | Health | Critical Infrastructure
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1
09-1844-ID-03
SAIC Organization
Mark Sopp
Technology
Amy Alving
Business Development
Greg Henson
Human Resources
Brian Keenan
Government Affairs,
Arnold Punaro
Communication and
Support Operations
Legal and Audit
Doug Scott
Strategic Initiatives
Joe Walkush
and Investments
Defense Solutions
Infrastructure, Logistics
and Product Solutions
Information Technology
and Network Solutions
Intelligence, Security
and Technology
Ken Dahlberg
Chairman and CEO
Larry Prior
COO
CFO
Deb Alderson
Joe Craver
Charles Koontz
Stu Shea


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11
Energy | Environment | National Security | Health | Critical Infrastructure
Market Outlook
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
Industry must navigate increasingly hostile environment
Wartime Commission
Congressional hearings
Organizational Conflicts of Interest
Companies will distinguish themselves based on positioning or execution
Desire to “in-source”
Populist rhetoric
Anti-contractor bias
09-1844-ID-36
Faster Growing Markets
Intelligence
Energy
Cyber
C4ISR
Logistics
Health
Market Share Capture
Platform Independent SE&I Agent
Logistics Integration
Task Order Pursuit


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12
Energy | Environment | National Security | Health | Critical Infrastructure
Impact of National Elections
12
Current Views on National Security
Increase military end strength 150,000
Support surge with no timetable
for withdrawal of forces
Move supplemental funding into DoD
appropriation
Fund theater ballistic missile defense
Increase investment in new technologies
Minimize cost-plus contracting
Increase oversight and eliminate earmarks
Increase military end strength 92,000
Phased withdrawal from Iraq; shift mission
to counter-terrorism operations, protection
of U.S. citizens, and training of Iraqi forces
Reduce supplementals as a funding source
Closely monitor funding for missile defense
Increase basic research
Increase reliance on diplomacy and
humanitarian aid
Increase military presence in Afghanistan
Manpower entitlements limit funds available for contractors;
major platforms, including FCS, come under pressure


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13
Energy | Environment | National Security | Health | Critical Infrastructure
Impact of National Elections
13
Current Views
on Critical Infrastructure
Implement 9-11 commission
recommendations
Increase spending on border and port
security
Fund technologies for integrated
communications for first responders
Increase spending beyond aviation safety,
e.g., mass transit, chemical/nuclear plants
Increase investment in transportation
infrastructure
Implement 9-11 commission
recommendations
Increase spending on border and port
security
Fund first responders with additional
$.5-$1.7 billion
Increase spending beyond aviation safety,
e.g., mass transit, chemical/nuclear plants
Increase investment in transportation
infrastructure
Continued funding of DHS priorities above future year budget
request levels


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2008
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14
Energy | Environment | National Security | Health | Critical Infrastructure
Impact of National Elections
14
Current Views on Energy and the Environment
Implement market-based carbon cap-and-
trade system
End the moratorium on offshore drilling
No windfall profit tax on oil companies
Ban drilling for oil in ANWR
Build 45 nuclear power plants by 2030
Cut greenhouse gas emissions 60 percent
below 1990 levels by 2050
Stricter regulation of the oil futures market
Implement market-based carbon cap-and-
trade system
Enhance and use clean coal technology to
reduce dependence on foreign oil in 10 years
Impose windfall profit tax on multi-national oil
companies
Ban drilling for oil in ANWR
Keep nuclear power option open
Cut greenhouse gas emissions 80 percent
below 1990 levels by 2050
Economic incentives for energy efficiency and increased R&D
in energy alternatives and understanding climate change


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2008
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SAIC
and
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SAIC
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15
Energy | Environment | National Security | Health | Critical Infrastructure
Impact of National Elections
15
Current Views on Health
Rely on market-based health care as
opposed to universal healthcare
Incentives and tax credits for individuals and
families to purchase health insurance
Consolidate billing across care providers
Deploy health information technology to
improve chronic disease care
Create National Health Insurance Exchange–
coverage with both private and public options 
Provide coverage for all children
Accelerate pay-for-performance initiatives
Invest $50B toward adoption of electronic
medical records
Increased spending in government health IT


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16
Energy | Environment | National Security | Health | Critical Infrastructure
Impact of National Elections
16
Current Views on Government Services Industry
Increase R&D funding
Expand the use of fixed-price contracts
Limit sole-source awards
Control costs by reorganizing the bureaucracy
and changing procurement methods
Promote open trade and responsible bilateral
and multilateral trade agreements
Would not give lobbyists special access
Increase R&D funding
Competitively bid all federal contracts >$25K
except those deemed to be emergencies
Reduce spending on contractors by 10%
Does not promote open trade and responsible
bilateral and multilateral trade agreements
No political appointees allowed to work on
contracts or regulations related to their prior
employer for 2 years after employment
Increased industry oversight and regulation


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17
Energy | Environment | National Security | Health | Critical Infrastructure
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, cyber, and space superiority
Divest non-core commodity/low-margin business
Shape our mix of business
Mature capabilities in light touch production and LRIP development
Improve ability to develop, deliver, and support total solutions
Build our capabilities and reputation as a prime
Explore different business models
Invest more in our people and discriminating technologies
Create a more competitive cost structure
Reduce corporate overhead and invest in internal growth


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2008
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SAIC
and
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18
Energy | Environment | National Security | Health | Critical Infrastructure
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 operating margin since IPO
Divested non-core businesses—AMSEC and ANX
Won large competitive programs—GPS, POL-Chem, NATO BMD
Deployed ~$600M on acquisitions: AMTI, Benham, AETC, Scicom, Icon, SMC
Executed share repurchase plan to deploy excess capital and manage dilution
Changed incentive programs to address option overhang
Long-term market drivers remain in place, but budget challenges are real
Agility and innovation are critical—and key SAIC differentiators
Cost structure enhancements will make us even more competitive


Operational Perspectives
Larry Prior
Chief Operating Officer


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Energy | Environment | National Security | Health | Critical Infrastructure
Agenda
Growth Drivers
Business Development
Our People
Technology Discriminators
Operational Efficiency
IT Modernization
Project Alignment
Operations Summary


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21
Energy | Environment | National Security | Health | Critical Infrastructure
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
Position for market breakout inflection points 
Secure Freight Initiative, Carbon Cap-and-Trade, Health
Stress (and reward) cross-company collaboration
Attack the market as “One SAIC”
Invest more Bid & Proposal and Internal R&D funds in high-growth areas
Strategic
plan
drives
campaigns
which
drive
Business
Development
priorities
Treat each recompete like a new capture
Leverage customer intimacy and start the process early
Balance support for the customer with returns to shareholder
Be willing to walk away from lower margin work (e.g., EROS Data Center)


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2008
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22
Energy | Environment | National Security | Health | Critical Infrastructure
Business Development
Capture Metrics
Traditional metrics show increasing traction and support growth goals
Expect to generate another ~$27B in revenue from future task orders on
existing IDIQs
15.1
9.7
5.4
1.1
2.5
Q1
15.9
10.5
5.4
1.3
3.3
Q2
15.9
15.0
15.0
15.8
14.1
14.4
14.9
Total Backlog
10.5
9.9
9.9
10.4
9.6
9.7
10.3
Unfunded Backlog
5.4
5.1
5.1
5.4
4.5
4.7
4.6
Funded Backlog
1.2
1.0
0.6
1.6
0.9
0.7
1.1
Book-to-Bill
5.8
8.8
1.5
3.9
1.9
1.5
8.9
Bookings
Contract Awards Only
FYTD
FY
Q4
Q3
Q2
Q1
FY
FY09
FY08
FY07
Metric


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23
Energy | Environment | National Security | Health | Critical Infrastructure
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)
ENCORE II ($500M, Multiple)
Full life-cycle IT solutions for DISA
Guardian ($250M, Single)
CBRN services and solutions for Army
C5ISR ($222M, Single)
Tactical vehicle integration for SPAWAR
Warfighter
Focus ($200M, Single)
Life-cycle integrated training support
PM Support ($200M, Multiple)
Technical and analytic support to DoJ
agency
FAST II ($800M, Multiple)
Logistics support for AF weapons systems
Classified ($170M, Single)
Cyber support for Intell
customer
AITS ($454M)
IT support for Guard/Reserve
Classified ($309M)
Intelligence operations support
Classified ($161M)
Consolidated contract with Intell
customer
HRC ITSO ($410M)
IT support for Army HR Command
NASA UNITeS
($218M extension)
IT support for Marshall Space Center
COCOM IT Support ($226M)
IT support for COCOM C4 Directorate
NMEC OCONUS Support ($253M)
Linguist/media exploitation support for DIA
Contract Awards
IDIQs


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SAIC
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24
Energy | Environment | National Security | Health | Critical Infrastructure
Business Development
Pipeline Metrics
Total
FY12+
FY11
FY10
FY09
EXPO
GSM (DGS)
AMPS
ETS II
NEP II
NASA UNITeS
GWOT IDIQ
CIO-SP3
TIPSS 4
IATS
ICE ITESS
STOC II
CECOM R2
Major Recompetes
70,267
4,795
2,968
63
8,061
92
26,060
566
33,178
4,074
Total
24,224
4,658
374
61
1,025
80
6,476
509
16,349
4,008
<$100M
46,043
137
2,594
2
7,036
12
19,584
57
16,829
66
$100M+
Total
34,012
500
475
5
3,679
11
15,313
111
14,545
373
Total
6,907
432
175
4
129
7
1,992
78
4,611
343
<$100M
27,105
68
300
1
3,550
4
13,321
33
9,934
30
$100M+
IDIQ Master
Agreements
36,255
4,295
2,493
58
4,382
81
10,747
455
18,633
3,701
Total
17,317
4,226
199
57
896
73
4,484
431
11,738
3,665
<$100M
18,938
69
2,294
1
3,486
8
6,263
24
6,895
36
$100M+
Standard
Contract and
Task Order
$
#
$
#
$
#
$
#
$
#
Opportunity Type
Point-in-time estimate (Q2 end) of continually evolving picture
Reported pipeline shows fully qualified opportunities
$14B in proposals awaiting government decision—29 opportunities >$100M ($8B)
Another
$93B
of
potential
opportunities
in
“track”
status


25
Energy | Environment | National Security | Health | Critical Infrastructure
Our People
Retention and Recruiting
FY07
FY08
FY09
Number of Hires
FY07
FY08
FY09
Voluntary Turnover Rate
YTD vol
turnover is 13.0%, down 50 bps
Vol
turnover is well below industry average
and nearing aggressive goal of 12.6%
>50% of at-risk employees redeployed YTD
8% above our hiring rate from last year
On pace for >9,500 hires for FY09
Net adds of almost 2,100 employees YTD
Internal
Acquisitions
©
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 other countries.


©
2008
Science
Applications
International
Corporation.
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rights
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SAIC
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Applications
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26
Energy | Environment | National Security | Health | Critical Infrastructure
26
09-1844-ID-05
Our People
FY08 People Breakout
Other
30%
Master
29%
PhD
4%
Other
21%
IT
36%
DC
Metro
39%
San
Diego
10%
Inter-
national
5%
Hunts-
ville
5%
Other US
42%
55% have >3 years tenure with SAIC;     
38% have >5 years tenure with SAIC
22% ethnic minority;                     
33% female
>22,000 possess a security clearance
Bachelor
46%
Education
Location
Specialty
Science/
Eng
14%
Finance
6%
PM
6%
Analysis
9%


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2008
Science
Applications
International
Corporation.
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International
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27
Energy | Environment | National Security | Health | Critical Infrastructure
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 measuring diversity impact and improvement within operating units
Improved
awareness
through
employee
networks/affinity
groups
and
identity
programs
Professional and Career Development
Developed succession plans for key positions and development plans for high
potentials at all levels
Created Chairman’s Program to grow our future leaders
Implemented formal career paths for program managers, intelligence analysts,
scientists, engineers, systems engineers, and front-line managers


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28
Energy | Environment | National Security | Health | Critical Infrastructure
Technology Discriminators
Key Enablers
Technology is at the heart of SAIC
Highly skilled and innovative workforce with passion for mission
Build on our science and technology legacy with new or enhanced initiatives
IR&D investment and execution
S&T career paths
SAIC Technical Fellows Council
Internship program
SAIC Core Value #1
Technical and Professional Excellence
SAIC Purpose Statement #1
To
solve
important
national
and
global
problems
through
science,
engineering
and
innovation
SAIC Vision
Be
the
leading
systems,
solutions,
and
technical
services
company,
solving
our
customers'
most
important
business
and
mission-critical
problems
through
innovative
applications
of
technology
and
domain
knowledge.
“From
Science
to
Solutions”
PhD new hire program
University alliances
Enterprise-wide knowledge flow
Technical collaboration


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29
Energy | Environment | National Security | Health | Critical Infrastructure
Technology Discriminators
SAIC’s
Technology-Based Capabilities Today
Physics-Based Modeling
Advanced
Simulators
Non-Intrusive
Inspection
Advanced Image Analysis
Advanced
Materials
Advanced
Guidance
and
Navigation
Advanced
Electronics
Marine Mammals
Neuro-
Science
Cryptology
Advanced
Sensors
Advanced Power
Management


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30
Energy | Environment | National Security | Health | Critical Infrastructure
Wave 2
Wave 3
IOC
Wave 1
IT Modernization
Costpoint Update
System deployment is on schedule and business operations are uninterrupted
Completed systems engineering to improve scalability and performance
Simplified accounting structure and financial processes
% of Government Business on Costpoint
FY08
Q3
100%
75%
50%
25%
0%
Q3
Q2
Q4
FY09
FY10
FY10


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31
Energy | Environment | National Security | Health | Critical Infrastructure
IT Modernization
Strategic View
Corporate Focused
Line/Customer Focused
Bus Dev,
Contracts,
and
Corp
Support
Line IT
Support
Services
(End Point
Computing)
Group
Operations 
and Project
Execution
Finance
Human
Resources
Standardized
Secure
Scalable
Reliable
Defined Architecture
Process Focused
Compliance Based
Access Controlled
Leading Edge
Dynamic
Reconfigurable
Responsive
Flexible
Collaborative
Adding a “virtual grid”
provides
aggressive market engagement


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32
Energy | Environment | National Security | Health | Critical Infrastructure
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 standardize business processes
Consolidate business support functions where it makes sense
Generate additional internal investment funds to drive internal growth
Improve competitiveness
Efforts to date have focused on:
Evaluating each functional discipline and developing an end-state vision
Implementing improvements in Corporate functions
Establishing Shared Service Center to house transactional support functions
Building the roadmap to modernize the IT infrastructure
Savings target: $100M annually


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33
Energy | Environment | National Security | Health | Critical Infrastructure
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
Demolition began on August 18; construction began on September 2
20,000 sq ft in SAIC-owned facility
Improve existing density with open architecture design
Limited investment required
Consolidated buying power to fit our standard facility and IT architecture
Internal SAIC capabilities for architecture and engineering design
Run as a “business within the business”
focused on customer satisfaction
and continuous process improvement


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34
Energy | Environment | National Security | Health | Critical Infrastructure
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 correlation, event management, and diagnostics
Transitioned network operations and service to SAIC’s IT&NS Network Services
Leverage commercial network management services
Consolidate data, voice, and audio/video network support in anticipation of future convergence
Transitioned service desk operations to SAIC’s IT&NS Service Management Center
Leverage SAIC’s ISO 20000 certified service
Improve call handling, resolution, and hours of operation
Other accomplishments
Evaluated and reduced corporate staff
Cut facility footprint by 150K sq ft by terminating or consolidating 21 leases
Outsourced employment verification, background investigations, and utility vendor payments
Consolidated data and voice contract
Implemented and enforced new policy on Common Operating Environment
Eliminated
millions
of
hardcopy
pages
with
digital
workflows
and
data
stores
Project is gaining momentum and delivering early results


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35
Energy | Environment | National Security | Health | Critical Infrastructure
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
Streamline corporate operations and facilities
Continue to consolidate departments and drive operating efficiencies
Close at least two mid to large size buildings
Simplify and standardize processes
Eliminate hassle and inefficiencies
Leverage the company’s buying power by using e-catalog services
Digitize records/forms; significantly reduce the processing and storage of paper
Start capturing savings associated with implementation of Costpoint


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36
Energy | Environment | National Security | Health | Critical Infrastructure
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 with a Culture of Discipline
Actively Managing our Risk Profile


Financial Overview
Mark Sopp
Chief Financial Officer


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Energy | Environment | National Security | Health | Critical Infrastructure
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


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39
Energy | Environment | National Security | Health | Critical Infrastructure
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 below the line changes
On 9/3 earnings conference call, we reaffirmed that we expect to
meet these
long-term goals for FY09
Also indicated that if M&S demand is high in Q4, revenue range may be exceeded
and margin expansion target would be tougher to meet
Since then, DoD, DHS, and MilCon/VA have full-year budgets with healthy
increases and all other departments have Continuing Resolutions in place
Today we reaffirm this guidance for FY09


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40
Energy | Environment | National Security | Health | Critical Infrastructure
Revenue Growth Trend
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 expertise—expanding scope on existing contracts and accounts
4%
7%
12%
3%
4%
4%
0%
5%
10%
15%
20%
FY07
FY08
FY09 H1
Internal
Acquisitions


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41
Energy | Environment | National Security | Health | Critical Infrastructure
Revenue Breakout
13%
Commercial, International & State/Local
12%
Other Federal Civil
5%
NASA
27%
Intell/Other DoD
8%
Air Force
14%
Navy/Marines
21%
Army
Customer
14%
GSA Schedule
26%
Multiple-Award IDIQ TO
24%
Single-Award IDIQ TO
36%
Standard Contract
Contract Source
18%
Fixed Price
35%
Time and Materials
47%
Cost-Reimbursement
Contract Type
39%
Material and Subcontract
61%
Labor-Related
Revenue Type
17%
IT & Network Solutions
22%
Infrastructure, Logistics and Product Solutions
29%
Defense Solutions
32%
Intelligence, Security and Technology
Organization
FY08
Revenue
Attribute


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42
Energy | Environment | National Security | Health | Critical Infrastructure
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 to be filled
MRAP C3 Integration wind down ~$125M
EROS
and
FASI
recompete
losses
~$30M
Strong IDIQ book of business and task order generation capability
Total
FY12+
FY11
FY10
FY09
15.9
3.7
3.1
5.0
4.1
Total
10.5
3.2
2.6
3.8
0.9
Negotiated Unfunded
5.4
0.5
0.5
1.2
3.2
Funded
Backlog


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43
Energy | Environment | National Security | Health | Critical Infrastructure
Operating Margin Expansion
High-Level Framework
COGS: +30 to 110 bps
Contract fees: business mix, collaboration, higher M&S loads, technology discriminators
Overhead efficiencies: facilities consolidation, IT modernization, rate management, scale
Unallowable: control/reduce, re-evaluate policies
SG&A: +30 to 50 bps
Corporate costs: process streamlining, IT modernization, scale
Other: option reductions, amortization
Some cost savings assumed reinvested in B&P and IR&D
9.0%
8.5%
8.0%
7.5%
7.1%
Op Margin
5.9%
6.0%
6.1%
6.4%
6.4 %
SG&A
14.9%
14.5%
14.1%
13.8%
13.5 %
Gross Margin
85.1%
85.5%
85.9%
86.2%
86.5%
COGS
100%
100%
100%
100%
100%
Revenue
Future State
FY08
FY07
Measure


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44
Energy | Environment | National Security | Health | Critical Infrastructure
Total
Reduce Rates/Increase Competitiveness (CR Contracts)
Reinvest in B&P and IR&D
Option Reduction (to Recoverable Vesting Stock)
Corporate Efficiency/Economies of Scale
Unallowable Control/Reduction
IT Modernization
Facilities Consolidation
Faster Growth in Higher Margin Areas
Contract Fee Improvements (Collaboration, M&S)
FY12
FY11
FY10
FY09
Margin Expansion Initiative
Operating Margin Expansion
Estimated Impact and Time Phasing of Key Elements
10–50 bps
10–30 bps
10–20 bps
10–20 bps
10–20 bps
20–40 bps
10–20 bps
(20)–(40) bps
(20)–(30) bps
50–150 bps
We have well-identified drivers to reach 8%-9% operating margin
10–20 bps


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45
Energy | Environment | National Security | Health | Critical Infrastructure
Equity Programs
Issuance and Option Trends
Option Overhang
Estimated Annualized Share Dilution
Significantly reduced equity compensation programs after the IPO
Replaced ~$75M of equity compensation with cash (~3.5M shares)
Reduced ESPP discount rate from 15% to 5% and used savings to offset
medical plan increases
Reduced option grant rate; converted ~50% of grant value to recoverable
vesting stock
FY07
Q1
Q2
Q3
Q4
FY08
Q1
Q2
Q3
Q4
FY09
Q1
Q2
20%
15%
10%
5%
4%
3%
2%
1%
0%
Q4
Q4
Q1
Q1
FY07
Q1
Q2
Q3
FY08
Q2
Q3
FY09
Q2
Annualized Dilution
ESPP Discount Change
Equity to Cash


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Energy | Environment | National Security | Health | Critical Infrastructure
Share Repurchases (M)
Quarterly Diluted Shares (M)
Equity Programs
Diluted Shares Outstanding & Repurchases
Substantial cash deployment towards repurchases since IPO; > than share creep
Pace of preferred to common conversions continues
Common float increasing
Added-to-the-S&P-MidCap-400-Index
FY07
FY08
FY09
FY07
FY08
FY09
46


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47
Energy | Environment | National Security | Health | Critical Infrastructure
Cash Flow
Forward Cash Flow Model w/o Acquisitions
345
Operating Cash Flow
0.75% to 1.0% of revenues
0.75% to 1.0% of revenues
(61)
Capital Expenditures
284
Free Cash Flow
~5% of internal revenue growth
~5% of internal revenue growth plus
special items:  -$125M for extra payroll and
+75M for 3-day DSO reduction
(214)
Working Capital
Increase faster than internal revenue
growth (as increased vesting stock is
amortized)
Consistent with FY08; increase in vesting
stock amortization is offset by the
elimination of the non-cash ESPP expense
93
Non-Cash Employee
Stock Transactions
Based on current intangible run-off
schedule on 10Q
Based on current intangible run-off
schedule on 10Q
28
Amortization
Increase at long-term internal revenue
growth rate of 6% to 9%
Increase at long-term internal revenue
growth rate of 6% to 9%
52
Depreciation
Increase at long-term growth rate
without acquisitions of from 9% to 14%
Increase at long-term growth rate without
acquisitions of 9% to 14%
386
Income from
Continuing Operations
FY10
FY09
FY08
(A)
Measure


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48
Energy | Environment | National Security | Health | Critical Infrastructure
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
Internal growth initiatives
Strategic acquisitions
Share repurchases
Conservative liquidity posture
Maintain "A-" credit rating                                                 
in this market
692
1,096
Ending Cash Position
(408)
(15)
Cash From Continuing Ops
56
71
Other
(110)
(10)
Change In Debt
(368)
(215)
Public Stock Repurchases
(203)
(145)
Acquisitions
(25)
(61)
Capital Expenditures
242
345
Operating Cash Flow
FY09 H1
FY08
Capital Deployment ($M)


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Energy | Environment | National Security | Health | Critical Infrastructure
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 capital
Liquidity
After-tax total returns
Current investments
Substantially all domestic cash held in “U.S Treasuries”
money market funds
Diversified among four funds (NTE $250M each)
All rated AAA (S&P) and Aaa (Moody’s)
“Net
Asset
Value”
or
“Market
Value”
determined
daily
per
SEC
2a-7
rules
~$60M in conservative overseas money market funds and bank deposits relating to
foreign operations


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Energy | Environment | National Security | Health | Critical Infrastructure
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 deployment of capital
Realistic, achievable path with identified enablers
Culture of discipline and collaboration
Building pipeline of large opportunities
Margin expansion ingrained throughout organization
Multiple enablers for greater cost efficiencies


Defense Solutions Group
and C4ISR Campaign
Deb Alderson
Group President


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52
Energy | Environment | National Security | Health | Critical Infrastructure
09-1844-ID-08
Defense Solutions Group
Enterprise and
Mission Solutions
Systems and
Technology
Solutions
Analysis, Simulations,
Systems Engineering
and Training
C4IT
Defense and
Maritime Solutions
Bill Gurley
$670M
Peter Dube
$570M
Bev Seay
$560M
Debbie James
$380M
Tom Baybrook
$700M
System Integration and
Enterprise Life-Cycle
Management
Missile
Defense Systems
Enterprise and
Complex Network
Services
Modeling, Simulation
and Training;
Management Systems
C4 Engineering and
Network Centric
Integration
Technical and
Engineering Services –
Software and Hardware
Major provider for
Combatant Commanders;
Air Force and Army
# 1 contractor to Navy
SPAWAR System
Centers; MRAP
#1 DISA Contractor
Key provider to Naval
Surface / Under Sea
Warfare Centers
FCS; Major support
of Army and Missile
Defense Agency
Deb Alderson
Group President
$3.0B Revenue
Group Structure and Focus


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53
Energy | Environment | National Security | Health | Critical Infrastructure
C4 Systems
Engineering &
Integration
43%
Modeling,
Simulation &
Training
7%
Engineering &
Technical
Services
21%
Enterprise
IT Solutions &
Services
29%
09-1844-ID-19
Key Solutions and Customers
DoD, DHS
DoD
DoD
Engineering Design
Professional Engineering Services
Test and Evaluation
Engineering and Technical Services
Modeling and Simulation
Live, Virtual, and Constructive Training
Knowledge Management
Distance Learning
Army, Air Force
Army
DoD
DoD
Modeling, Simulation, and Training
Operational Command and Control
Integrated System Design and Implementation
Joint Mission Planning
Life Cycle Capability Management
AF, Army
Army, Navy, AF
AF
Army
C4 Systems Engineering and Integration
Enterprise Network Design and Solutions
Network Operations and Management
Network Security
DISA, DoD
DoD, National Guard
DoD
Enterprise IT Solutions and Services


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54
Energy | Environment | National Security | Health | Critical Infrastructure
Major Growth Drivers
Corporate campaigns: Cyber, C4ISR
Major group focus areas
Ground Systems Integration
Training, modeling, and simulation
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
FCS and JLTV
CONUS and International
Technology driving realistic immersive training
Simulation needed for operational C3
Decision support and adaptive planning, integrated training
Deep Green DARPA
Icon Systems–live, virtual, and constructive training
OneSAF/SE Core and Ground Vehicle Trainers
Army Aviation and Missile Research Command


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Energy | Environment | National Security | Health | Critical Infrastructure
C4ISR Campaign
Where DoD is Heading


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Energy | Environment | National Security | Health | Critical Infrastructure
09-1844-ID-11
C4ISR Campaign
What They Are Buying
$17 Billion SAIC Addressable Market
Command
and Control
Netcentric
Communications
Battlespace
Awareness
Integrated C4ISR
NATO ALT BMD
SEIC
DARPA Deep Green
DISA DSN
NCES
MRAP
Predator Ops
Center (POC)
P-ISR (Angel Fire)
DCGS-A
Enterprise
FCS
AOC WSI
BETSS-C


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Energy | Environment | National Security | Health | Critical Infrastructure
09-1844-ID-12
C4ISR Campaign
Evolution to Network Enabled Capability
Building it Different
Buying it Different
Using it Different
Interoperability paramount
Fusion of C2 and intelligence
Decision cycle time reduction
Rapid response to emerging threats
Logistics effectiveness
Lead Systems Integrator ?
IDIQ contracting
Capability based versus platform based
Integrated solutions
Integrated Solutions versus Stovepipes
SOA based systems
Coalition and expanded user base
Fusion of C3 and Situational Awareness
Strong Enterprise
Governance
Fast, accurate,
interoperable, secure
Integrated legacy
components
SOA standards
Discoverable, accessible
and understandable data
Virtualization
Network seen as key
capability in challenging
threat environment
Network Enabled Capability
Change Vectors


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Energy | Environment | National Security | Health | Critical Infrastructure
09-1844-ID-13
C4ISR Campaign
Addressable Market and Opportunities
Opportunities
CENTCOM J6 C4IT
SPAWAR SSC OCONUS
C4ISR Support
Opportunities
Prophet OAP
Big Safari WASS
AFRL RV IROSS
Opportunities
JLTV
NBSC Truck
Opportunities
Net Enabled Comm and Capability
Cyber Control System
DCGS Marine Corps
GSM Recompete
Computers, IT Services
and Technical Support
Command
and Control
$2.3 B
Battlespace
Awareness
$5.3 B
Related
Services
$4.4 B
Netcentric
Communications
$1.0 B
Strategic and Operational
Command and Control
Strategic and Tactical
Communications Systems
ISR Capability and Integration;
Intel Systems and Analysis
Ground Soldier System
BETSS-C
FCS Spinouts
AOC WSI
Integrated
C4ISR Solutions
$4.0 B
Opportunities


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Energy | Environment | National Security | Health | Critical Infrastructure
09-1844-ID-14
C4ISR Campaign
Near-Term International Opportunities
Opportunities
KorCom HQ
Design
Maritime
Surveillance   
Systems (MSS)
Opportunities
Forza NEC
Scorpion
FRES
Opportunities
NATO
Territorial MD
NATO Air
C2IS
Opportunities
SNEP II SE&I
SNEP II
C4ISR
Establish SAIC as
technical partner of choice
Mature strategic
partnerships with BAE,
EADS and Finmeccanica
Integrate SAIC personnel
into standards group’s
efforts
Multiple opportunities
leveraging net enabled
solutions
Leverage SAI JV
SE&I Solutions
Build upon Guam
and Korea base
Maritime Domain 
Awareness efforts in
concert with PACOM
RoK ground forces
netcentric initiative
Commitment to Net
Centric Integration
Building upon present
business customer
knowledge
Ballistic Missile Defense
Europe
Asia-Pacific
NATO
SAIC Quals
Capabilities
Middle East
Focus on Strategic Partnerships


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Energy | Environment | National Security | Health | Critical Infrastructure
C4ISR Campaign
Path to C4ISR Integrated Solutions
09-1844-ID-33
FY08 and Before
FY09
FY12 and Beyond
FY10
FY11
JMPS SEIC
Investments
Existing Contracts
Big Bang
Opportunities
AOC WSI
SPAWAR C4
Integration and
Engineering Services
MRAP
$3M
Ground Soldier
Systems
JLTV
BETSS-C
FCS
NATO ALTBMD
$1M
NECC
GSM Recompete
NATO AIR C2
$1M
GIG BE
Prior Saudi Naval Work
NATO ALTBMD
Follow On
Opportunities
SNEP
$2M


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Energy | Environment | National Security | Health | Critical Infrastructure
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 expertise
Customer knowledge
Shape the market
Execute call plan
Target new leadership
Agile, Aggressive, Adaptable


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Energy | Environment | National Security | Health | Critical Infrastructure
09-1844-ID-15
DSG Vision and Strategic Intent
“The leader in defense solutions and services, whose people provide
thought leadership, customer knowledge, technical skill and flawless
execution to deliver outstanding mission performance.”
Science to
Solutions
Thought
Leadership/
Customer
Knowledge
Flawless
Execution
People
First
Outstanding
Customer
Mission
Performance


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Energy | Environment | National Security | Health | Critical Infrastructure
President’s Summary
Strong financial performance by all BUs
executing on existing contracts
MRAP
FCS
AMCOM Express
New wins provide continued growth opportunities
Contract Awards:
AITS ($454M)
HRC ITSO ($410M)
COCOM IT ($226M)
NAVSEA ERP ($120M)
Pipeline of new opportunities in strategic campaigns
C4ISR
Ground Systems Integrator
Modeling and Simulation
DGS
SeaPort-e
IDIQs:
Encore II ($500M)
SPAWAR C5ISR ($222M)
Warfighter
Focus ($200M)
Executing Our Strategy/Delivering on Our Promises


Intelligence, Security and Technology Group
and Space Superiority Campaign
Stu Shea
President


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Energy | Environment | National Security | Health | Critical Infrastructure
09-1844-ID-16
Group Structure and Focus
Group Structure and Focus
Intelligence, Security, and Technology Group
Technology and
Advanced Systems
Intelligence
and Information
Solutions
Mission Integration
Space and
Geospatial
Intelligence
Operations,
Intelligence
and Security
Larry Cox
$525M
John Fratamico
$710M
John Hynes
$500M
Tony Moraco
$550M
John Thomas
$835M
Signals Intelligence,
Cyber Security Ops,
and Information
Assurance
S&T for Analysis,
Design, Prototyping
and Implementation
of ISR systems
National
Intelligence
National Security
Space SE&I and
Sensor Integration,
GEOINT Production
Defense Intelligence
and Operations
Support
Leading Provider of Technical
and Language Services to ODNI
and Other Intelligence
Organizations
# 1 provider of Geospatial
Products to NGA
Leading Science and
Technology provider
at DARPA and Military
Services Research Labs
Leading Provider of
Operational Intelligence,
Analysis and Biometrics
Tools to Deployed Forces
Leading development and
technical services provider
for NSA and related SIGINT
and Cyber customers
Stu Shea
Group President
$3.1B Revenue


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Energy | Environment | National Security | Health | Critical Infrastructure
66
Key Solutions and Customers
Biometrics
Joint Intelligence Operations and Intel Analysis
Signature Technologies
NGA, USAF, DARPA
NRO, DARPA, USAF
USAF, NSA
USA
NSA, NGA
Counter-Terrorism Analysis
Technical Collection Architecture
Translation Services
Geospatial Production
Signal and S&T Analysis
USA
DARPA, Mil Svcs
Mil Svcs, SAR
ISR Systems Integration
Surveillance & Reconnaissance Payloads
Ground Control & Operations Centers
Ground Based Collection Systems
Exploitation Tools / Systems
CTC, NCTC
NSA, NRO, NGA
ODNI
NGA
NRO
Intelligence
Intelligence, Surveillance and Reconnaissance
Cyber
Intelligence
32%
Cyber
8%
ISR
24%
Space
Superiority
10%
Science &
Technology
8%
Operational
Intelligence
16%
Computer Network Attack, Defense, Exploitation
Managed Security Services
Information Assurance, Penetration Testing
IC, DoD
Commercial
Federal & Commercial
Specialized Satellite Payloads
Large-Scale Systems Engineering & Integration
NRO, DARPA, USAF
USAF
Chemical, Biological, Radiological, Nuclear, Explosive
Directed Energy & High Energy Lasers
RF/EO/IR Sensor Technology & Optical Communications
OSD, DHS, Srvc
Labs
USA, USAF
USN, USMC
Space Superiority
09-1844-ID-16
Science and Technology
Operational Intelligence


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Energy | Environment | National Security | Health | Critical Infrastructure
Major Growth Drivers
Corporate campaigns: Cyber, C4ISR, Space Superiority
Major group focus areas
Special Operations Forces
Counter-Terrorism
Political pressure for a reduced military presence overseas
Emphasis on indirect approach versus conventional forces
Major requirement is to transform legacy, stove-piped C4ISR systems
into flexible, net-centric, open systems
We offer unmatched domain and technology expertise across space,
manned aircraft, unmanned systems, surface ships, submarines, fixed
and mobile land systems, and man-portable systems
Al-Qaida remains intent to attack the U.S. homeland again
The War on Terror will transcend administrations
We will focus on 5 major areas:
Identity management (biometrics, credentialing, immigration enforcement)
Information Sharing (networks, systems, and fusion centers),
CBRN detection (chemical, biological, radiological, and nuclear detection)
Emergency Preparedness (crisis management, warning)
IED Defeat (improvised explosive devices)


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Energy | Environment | National Security | Health | Critical Infrastructure
68
09-1844-ID-15
Cyber Campaign
Group Vision and Position
“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
Network
Operations
(Exploitation,
Defense,
Attack)
Managed
Security
Services
(Network and
Security
Ops)
Training
and Education,
Regulatory
Compliance,
Forensics
Design
and Build
of Enterprise
IT Solutions
Integration for
Full Spectrum
Cyber Mission
Performance


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Energy | Environment | National Security | Health | Critical Infrastructure
69
09-1844-ID-15
ISR Campaign
Group Vision and Position
“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
Reconnaissance
Payloads for
Air, Ocean and
Space
Platforms
Ground Based
Collection
Systems
Ground
Control Stations
and Operations
Centers
Exploitation
Systems and
Tools
Integration for
Full Spectrum
ISR Mission
Performance
Angel-Fire


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70
Energy | Environment | National Security | Health | Critical Infrastructure
Space Superiority Campaign
The Space Superiority Imperative
Our nation depends on satellites for
navigation, communications and global
trade, which could be broadly damaged
by disruptions of space assets
Space threats range from traditional
ground-based jamming to more
catastrophic orbital attacks
Space is a future battleground
D/NRO acknowledged Chinese laser tracking
of electro-optical, low earth orbit satellite in 2006
On 1/11/07, China destroyed a Low Earth Orbit
satellite w/ a Direct Ascent Anti-Satellite missile
One year later, NORAD had catalogued 2,377
of the 150,000 pieces of debris
Intelligence Estimates project Chinese satellite-
to-satellite capability in 2009
View of LEO Satellites (green) and Debris Ring (red)
from Chinese ASAT Test
Irregular Challenges
Catastrophic Challenges
Space Superiority is achieved through space situational awareness
and defensive and offensive counter-space operations
LEO DA
LEO DA
ASAT Event
ASAT Event
2007
2007
Direct
Ascent
Threat
Denial of
Capability
Ground Jamming
Ground Station
Threats
Deception
Localized
Terrorism
Orbital
Threats
GBL Tracking
GBL Tracking
2006
2006
Traditional Challenges
Disruptive  Challenges


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Energy | Environment | National Security | Health | Critical Infrastructure
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
Space Superiority Campaign
What Is Space Superiority?


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Energy | Environment | National Security | Health | Critical Infrastructure
09-1844-ID-15
Space Superiority Campaign
Group Vision and Position
“A leader in the integration of technology, systems and operational
solutions across space to deliver full spectrum Space mission
performance.”
Active and
Passive Micro
Satellite Imaging
Payloads for
Surveillance
Systems
Engineering for
Complex and
Integrated
Space
Programs
Ground
Control Stations
and Operations
Centers
Visualization
and Analysis Tools
for Satellite
Operations
Integration for
Full Spectrum
Space Mission
Performance


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Energy | Environment | National Security | Health | Critical Infrastructure
09-1844-ID-11
Space Superiority Campaign
The Market and Bridging the Gap
The Space Superiority Landscape
Customers
Trends and Drivers
SAIC Strengths
Programs
National
Reconnaissance
Office (NRO)
Defense Advanced
Research Projects
Agency (DARPA)
US Air Force (USAF)
Boeing, Lockheed,
Northrop Grumman,
Orbital, Raytheon
IR and multispectral
payloads
Special comms
hardware
M&S capabilities
Real-time software
Mission analysis
SE&I
GPS SE&I
P-417
P-805
RR-AIRSS
CHIRP
Other SETA
and Logistics work
Evolving Threat
Cost Overruns
Space Protection
Program
Alternative Acquisition
Models
Community
Assessments


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Energy | Environment | National Security | Health | Critical Infrastructure
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 address
larger markets:
Hardware in the loop modeling and simulation, data processing algorithms,
special purpose communications and processing hardware, multi-spectral sensors
Become an integrated payload developer providing capable people,
unique
science, reliable systems, and affordable space and ground hardware to
enable or enhance space operations


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Energy | Environment | National Security | Health | Critical Infrastructure
President’s Summary
Execute our campaigns
Corporate:
Cyber
Space Superiority
C4ISR
Execute group imperatives
People first!
Thought leadership
Mission focus
Technology-leveraged
Maintain business development momentum
Won 93% of all re-competes and 72% of all new programs
Non-IDIQ Awards of $2.2B
Q2 backlog of $5.1B (22.5% YoY
Growth)
Executing Our Strategy/Delivering on Our Promises
Group:
Intelligence, Surveillance, Reconnaissance (ISR)
Special Operations Forces
Counter-Terrorism
Science-enabled
Execution excellence
Value creation


Cyber Campaign
Larry Cox
Business Unit General Manager


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Energy | Environment | National Security | Health | Critical Infrastructure
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 systems being manufactured overseas
Denial of service attacks in Estonia and Georgia shut down essential operations for
days at a time
The nation is vulnerable to disruptive attacks on our vital cyber assets
U.S. and global trade and financial systems
Critical infrastructure
Industrial base
Government operations
Pervasive computing and increasing connectivity lowers the barriers for
terrorists and hostile nation states


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Energy | Environment | National Security | Health | Critical Infrastructure
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
GFY08 reprogramming of $200M in Intelligence Community (IC)
FYDP increases of $20B across entire Federal government
Cyber market has four primary customer sets:
U.S. Military Services
Funded through existing military service budgets
Budgeted at $20B+ per year (GFY08-GFY13)
Department of Defense
Funded mostly through existing budgets plus some new
Estimated at $20B+ over the next five years
Federal Agencies
Funded primarily through new national cyber initiative
Estimated at $20B+ over the next five years
Private Sector Corporations
Internally funded by individual corporations driven by Federal requirements
Independent research estimates $20B+ per year (CY08-CY13)
Competitive Landscape
Large systems firms with
end-to-end capability
CSC
Northrop Grumman
Lockheed Martin
Booz Allen Hamilton
Boeing
General Dynamics
Niche providers of point
solutions
Hardware components
Software tools
Specialized expertise


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Energy | Environment | National Security | Health | Critical Infrastructure
Cyber Realm
09-1844-ID-17
The Cyber business environment exists across air, and, sea and space
domains, from unclassified to highly compartmented programs


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Energy | Environment | National Security | Health | Critical Infrastructure
Cyber Market Segments
Cyber touches every feature of modern communications
Solutions require use of a wide variety of capabilities
High-performance computing
Information Storage
Network Optimization
Information Security
Intrusion Detection
Certification and Accreditation
Network Monitoring
Log Analysis
VPN
Vulnerability Assessments
Incident Response
Information Assurance
Information Warfare
Spam Filtering
Surf Control
Data Protection
Worms
Enterprise Architecture
FISMA
Information Sharing
Viruses
HIPPA
Netcentric Operations
Communications Security
Firewalls
Cybersecurity
Passwords
Forensics
Phishing
Insider Threat
Infrastructure Protection
COOP
Network Security
PKI
Web Blocking
Virtualization
Data Life Cycle Management


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Energy | Environment | National Security | Health | Critical Infrastructure
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 awareness and
training, penetration testing, certification and accreditation, and compliance
Considerable work force already operating in multi-discipline programs
requiring engineering, computer science, analysis and operations
skills
Proven ability in software and hardware development, delivery, and
operations
Long history of successful technical services support
Platform and vendor agnostic integrator of the best solutions for customers
Patenting and licensing of key technologies and solutions


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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 opportunities
DHS National Cybersecurity and Protection Program (~$5B)
DHS/DoD Supply Chain assurance (~$200M)
Defense Industrial Base Initiative (~$300M)
Numerous Intelligence Community opportunities (~$1B)


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the
U.S.
and/or
other
countries.
83
Energy | Environment | National Security | Health | Critical Infrastructure
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 and mentors
Developing and training the Gen X/Y workforce
Technology
Competency and Research & Development across all areas of cyber
Partnerships with academia
Facilities
Excellent working conditions with tools, systems and communications
Connectivity among SAIC and customers


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84
Energy | Environment | National Security | Health | Critical Infrastructure
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 being bid now
End-to-end solutions are required
Cyber problems cannot be solved with just niche solutions
Solutions will be eternally dynamic
Substance is a barrier to entry
Escalating performance is the price to retain customer trust
Qualified people are a limiting factor in this growing market
National challenges are required to attract this high-intellect worker
Freedom to create innovative solutions is required to retain this worker
SAIC has the people, capabilities, and approach to succeed


Infrastructure, Logistics and Product
Solutions Group
Joe Craver
President


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86
Energy | Environment | National Security | Health | Critical Infrastructure
Group Structure and Focus
09-1844-ID-18
Infrastructure, Logistics and Product Solutions Group
Security and
Transportation
Technology
Homeland Protection
and Preparedness
Energy, Environment
and Infrastructure
Logistics and
Engineering
Solutions
Science and Systems
Engineering
Solutions
John Ferriter
$420M
Alex Preston
$200M
J.T. Grumski
$580M
Jim Cuff
$680M
Chuck Zang
$450M
CBRN and
Preparedness Services
and Solutions
Non-Intrusive
Inspection and
Radiation Detection
Products
Energy,
Environmental, and
Engineering Services
Logistics and
Support Solutions
Systems
Engineering, Mission
Support, and OT&E
Top Integrated Energy and
Environmental Solutions
Provider
# 1 Non-OEM
Sustainment Provider
to DLA
#1 Provider of Security
Products for Ports and
Borders
#1 OT&E Provider for DoD
Top 3 Integrator of Earth Sciences/
Climate Change Data-Research
and National Policy
#1 Provider of CBRN/
All-Hazards Preparedness
Systems and Services in U.S.
Joe Craver
Group President
$2.3B Revenue


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87
Energy | Environment | National Security | Health | Critical Infrastructure
Homeland Security
and Defense
27%
NASA,
Global Climate
Change and Other
19%
Energy,
Environment and
Infrastructure
25%
Logistics and
Product Support
29%
09-1844-ID-19
Key Solutions and Customers
Non-Intrusive Imaging Systems
Integrated Container Inspection
Radiation Detection
CBRN and Preparedness Services and Systems
Transportation Automation
Commercial
DoD
DOE
Supply Chain Management
Asset Visibility
Logistics Systems
Product Support Integration
DHS
DoD
International
Ports
Energy Management
Environmental Services
Design/Build of Tech-Intensive Infrastructure
DLA
DoD
Safety and Mission Assurance
Earth Sciences Data Integration
Operational Test and Evaluation
NASA
NOAA
USGS
FAA
Logistics and Product Support
Homeland Security and Defense
Energy, Environment and Infrastructure
NASA, Global Climate Change and Other


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International
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88
Energy | Environment | National Security | Health | Critical Infrastructure
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
Helping companies and the government save energy and money
Assessing and predicting the impact of climate change policy
Managing huge amounts of critical scientific data on the state of our planet
Training and equipping our nations’
First Responders
Over 400,000 trained to date
Helping to keep Space Shuttle flight operations safe


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2008
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and
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logo
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89
Energy | Environment | National Security | Health | Critical Infrastructure
Major Growth Drivers
Corporate Campaigns: Energy
Major Group Focus Areas
Homeland Security Products
Logistics and Sustainment
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 Protection
SAIC Offerings:
Non-Intrusion Detection Products
CBRNE Solution Integration and Preparedness Training
Growth market aspects
Reset
Proliferation of “non programs of record”
fielded systems
Defense budget funding constraints for new program starts
SAIC Offerings:
Performance and Capabilities Based Logistics Solutions and Services
Supply Chain Integration


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2008
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90
Energy | Environment | National Security | Health | Critical Infrastructure
Energy Campaign
The Global Energy Challenge
Production
Consumption
120
90
60
30
0
72
102
Fossil Fuels
Fossil Fuels
Renewable
Nuclear
Renewable
Nuclear
US Production and Consumption, 2007
Source:
Energy
Information
Administration
/
Annual
Energy
Review
2007
EIA
-
International
Energy
Outlook
2008
-
Highlights
Section
http://www.eia.doe.gov/oiaf/ieo/highlights.html
Global Consumption (Actual and Forecast)
09-1844-ID-34
120
90
60
30
0
1980
1990
2000
2010
2020
2030
Liquids (Oil)
Natural Gas
Renewables
Nuclear
2008
Coal
Rising energy consumption and cost
Driven
by
developing
countries,
consumption
will
increase
by
50%
by
2030
Traditional reserves (Oil/Gas) are shrinking
Renewable/Alternative energy production will NOT impact supply in near-term
Looming security and environmental issues due to production deficit, distribution constraints,
and Climate Change concerns


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91
Energy | Environment | National Security | Health | Critical Infrastructure
09-1844-ID-24
Energy Campaign
SAIC Energy Portfolio
Utilities
Federal
Industrial
Oil and Gas
Generation /  T&D IT
Upstream IT
Downstream IT
Environmental
Refinery Engineering
Energy Efficiency
Consulting
Energy Efficiency
SI and Process
Automation
Consulting
Refinery Engineering
Alternative Fuels
Plant Design
Global Climate Change
IT Infrastructure
Outsourcing
Customers
Upstream Oil and Gas: (Majors and NOC’s)
Utilities (Large and Mid-Tier, Nuclear)
Customers
Refineries (Mid-Tier and Small)
Industrial Enterprises
Government agencies
IT Transformation and
Applications
and Data
Analytics
Renewables
T&D Engineering
Refinery Engineering
Energy Management
Services
SAIC –
Delivering Integrated Energy Management


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2008
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and
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92
Energy | Environment | National Security | Health | Critical Infrastructure
09-1844-ID-25
Energy Campaign
SAIC Focus Areas
Generation
Trading
Transmission
Distribution
Fuel Production
Energy Use
Global Climate Change / Energy Consulting
Digital Oil Field
Coal and Renewables
Exploration and
Appraisal
Production
Refining/
Processing
Primary and
Secondary
Distribution
Energy Use
Development
Customer
Service/
Retail


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2008
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SAIC
and
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93
Energy | Environment | National Security | Health | Critical Infrastructure
Energy Campaign
Energy Management Services Defined
* DesignBuild is a registered service mark of the Benham Companies, LLC, an SAIC company, in the United States and other countries.
Efficient Operations
Clean Technologies
Sustainability
Climate Change
Green IT
Risk Management
Energy Procurement
Education and Training
Facility Assessments
Facility Modeling
LEED
®
Certification
DesignBuildSM
Performance Contracting
Systems Integration
AMI and Smart Grid
Demand Response
Project Management
Quality Assurance
Metering and Verification
Modeling and Forecasting
* LEED(R) is a registered trademark of the U.S. Green Building Council (USGBC) in the United States and other countries.


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2008
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International
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94
Energy | Environment | National Security | Health | Critical Infrastructure
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 capable talent pool that is driving our growth today
Implementing new business models
Integrating game-changing acquisitions
Standing integration team managed at Group level
Successfully integrated 3 $200M+ companies over the last four years
Well-positioned to deliver growth and profitability by providing distinctive
capabilities and solutions to our customers
Energy Management Services and engineering capabilities
Homeland protection through CBRN, Preparedness, and Trade Security solutions
Logistics and product sustainment solutions
Climate Change research and policy program
Supporting NASA in its human spaceflight and exploration missions


Information Technology and Network
Solutions Group and Health Campaign
Charles Koontz
Group President


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96
Energy | Environment | National Security | Health | Critical Infrastructure
09-1844-ID-27
IT&NS Structure and Focus
Technology Development
and Science Discovery for
Diagnosis and Treatment
of Cancer and AIDS
Health IT, Military Health
and Public Health and
Biomedical Research
Global Energy and Life
Sciences Solutions and
Integration Services
Charles Koontz
Group President
Information Technology and Network Solutions Group
Doug Charles
$490M
Bob McCord
$360M
Homeland and Civilian
Solutions
Business Unit
Managed IT, Infrastructure
Services and Software
Development to DHS, NASA
and Civilian Agencies
Top Provider of DHS Data
Center Migration, Consolidation, and
Managed IT Infrastructure Solutions
Top Tier Provider for IT
Services in Energy
Sole Source Contractor
for the National Cancer Institute
Top 3 Provider of IT Services
to the Department of Health
and Human Services
Doug Wagoner
$600M
Health Solutions
Business Unit
Commercial Business
Services Business Unit
SAIC
NCI / Frederick
$1.5B Revenue
Larry Arthur
$10M


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97
Energy | Environment | National Security | Health | Critical Infrastructure
09-1844-ID-29
Key Customers and Capabilities
Federal, DoD,
& Commercial
Health
30%
Federal Civil
43%
Commercial
Energy
27%
Full-Service IT Provider
Enterprise and Business Strategy Solutions
Infrastructure and Applications
Infrastructure Services Management
Information Content and Data Mgmt Solutions
Mission-specific application and system support
Department
of Veterans Affairs
CDC
FDA
NCI-Frederick
TRICARE
Digital Oil Field Solutions
Refinery of the Future Solutions
Advanced Metering Infrastructure
Application Development & Maintenance
Enterprise Architecture
Global Data Management
Managed Network Services
Infrastructure Outsourcing
DHS
NASA
Treasury, IRS
Dept of Energy
World-wide deployment and support
of IT Health Solutions
VA/DoD Sharing
Disease Surveillance and Bioterrorism
Public Health Emergency Preparedness
Online Access to Health Information
BP
Shell
Chevron
Scottish Power
Entergy
Maersk
INEOS
Alyeska
Federal Civil
Federal, DoD, and Commercial Health
Commercial Energy


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2008
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98
Energy | Environment | National Security | Health | Critical Infrastructure
Major Growth Drivers
Corporate Campaigns: Health, Energy
Digital Oil Field
Upstream
Production
Optimization ROI
1-3
years
1-3
years
10-30
years
1-2
years
Drilling
“Green Field”
“Mature”
“Brown Field”
Downstream
Major market drivers
Increased percentage of production coming from mature oil fields
Growth opportunity in reservoir management
Major Oil companies outsourcing technology solutions & services
New willingness of NOCs
to use service companies rather than MOCs
Key Offerings
Post-Drilling Seismic Analytics
Reservoir Management
Field Engineering Services
Real-Time Data Management
Collaboration Environments
Hydrocarbon Accounting
Digital Oil Field
Enhanced Oil Recovery
Refining/
Processing
Production
Exploration
and Appraisal
Development
Primary and
Secondary
Distribution
Retail


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99
Energy | Environment | National Security | Health | Critical Infrastructure
2008
2017
$5.0
$4.0
$3.0
$2.0
$1.0
$0.0
U.S. Health Costs
Unsustainable Cost Escalation
20.0%
19.0%
18.0%
17.0%
16.0%
15.0%
U.S. Health Expenditure
Health Spends as % of GDP
Health Campaign
Health Industry Faces Dramatic Challenges
Cost
Health costs growing at 6.1% CAGR vs.
4.4% for GDP
20% health spend as a % of GDP is not
sustainable
Access
Increasing access to affordable care will
expand Federal budgets in 2009+
Quality
Lack of reporting and transparency
IT under spend (<2% of health spend)
Public Safety
Bio-hazard and bio-terror threat mitigation
Pandemic mitigation/continuity of
operations (Gov & Commercial)
Sources: IDC and Insights, preliminary, 2008 and Centers for Medicare and Medicaid Services, National Health
Expenditure Survey, 2008
U.S. Health
Expenditure,
$2.5
U.S. Health
Expenditure,
$4.3
16.8%
19.8%
Unsustainable
healthcare
cost
growth
will
drive
change
and
opportunity


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100
Energy | Environment | National Security | Health | Critical Infrastructure
Health Campaign
Health Market Segments / Value Chain
Cardinal Health,
Pfizer, Quest,
Labcorp,
GE Medical
Blue Cross/Blue
Shield, Wellpoint,
United Healthcare,
Aetna
Kaiser
Permanente,
Hospitals, provider
associations, IDNs
Commercial
Providers
Patient-Focused Healthcare
Population Health
Government
Providers
DOD and VA,
state agencies
CMS, state
Medicaid agencies
NIH, NCI
CDC, FDA,
NIH, HRSA,
SAMHSA,
DOD, DHS,
State agencies
CMS, FDA,
ONCHIT, AHRQ,
CBO
Major
Competitors
HP, NOC
HP, LMT
NOC
NOC, LMT,
SRA
HP, LMT
Where SAIC
Plays today
MHS, VA, SHIN
(Canada), IHS
CMS
NIH and Commercial
Pharma
NIH, CDC,
FDA, HRSA,
SAMHSA
No big play to date
Healthcare
Payers
Healthcare
Providers
Public
Health and
Preparedness
Healthcare
Producers
Healthcare
Policy and
Regulation


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101
Energy | Environment | National Security | Health | Critical Infrastructure
Health Campaign
Emerging HIE Market Opportunity
Health information exchanges (HIEs)
Electronic movement of health-related information among organizations according to nationally-recognized standards
Challenges for HIE’s
Standardization of the data
Sustainable business model
Accessibility of data by the patient
Fast growing market segment
IDC estimates the current market to be ~$150M, growing to $500M by 2012 and >$3B by 2018
Hospitals/
Physicians
Laboratory
Pharmacy
Public Health
Imaging
Centers
Payors
Health
Information
Exchange
(HIE)
09-1844-ID-32


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102
Energy | Environment | National Security | Health | Critical Infrastructure
Health Campaign
Campaign Summary
FY09 –
Where we are today
Completed an
independent scan of the
entire Health sector
Evaluating our opportunity
beyond Government
Health
FY08 –
How we responded
Electronic health record
development standards
Medicare modernization /
fraud and abuse detection
Contain healthcare costs
Meet needs of aging
population
Meet DoD’s
wartime health
needs
Protect public health from
pandemics and bio-terror
threats
Improve patient care
quality and reduce care
disparities
Establish health data policy
Market
Requirements
Surveillance/detection;
preparedness; pandemic flu
planning and support
Biomedical research;
adverse events reporting;
disparity tracking
VA/DoD health information
sharing
Investing in new solutions
(health and clinical research
information exchanges,
medical terminology service,
identity management)


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103
Energy | Environment | National Security | Health | Critical Infrastructure
President’s Summary
Position of strength in Public, Civilian, and Military Health
MHS—Wounded Warrior
CDC—Bio-surveillance
VA/DoD—Medical records sharing
Federal Civil market will strengthen with Administration change
Protect the homeland—DHS (CBP, FEMA, ICE)
Protect our food supply—USDA
Protect our environment—EPA
Implement tax changes—IRS
Positive trend with our Commercial Business
Double-digit segment operating income run rate
Focus on upstream production (Digital Oil Field) producing results
Key contract awards support our strategic direction
NASA UNITeS
($214M)
NCI Support Contract ($105M)
Administrative Office of the Courts ($90M)
VA VistA
Repositories  ($56M)
CMS—Information systems modernization
NCI—Valued and differentiated relationship