8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): October 13, 2010

SAIC, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

001-33072	20-3562868
(Commission File Number)	(I.R.S. Employer Identification No.)

1710 SAIC Drive, McLean, Virginia 22102

(Address of Principal Executive Offices) (Zip Code)

(703) 676-4300

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former Name or Former Address, If Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

FORM 8-K

Item 7.01 Regulation FD Disclosure.

SAIC Institutional Investor Conference

SAIC, Inc. is holding its fourth annual Institutional Investor Conference in McLean, Virginia today, October 13, 2010. At the Conference, several executives of the Company will provide an overview of the Company and an update on its growth strategy, competitive environment and financial performance. Interested parties can listen to the presentations through a live audio webcast on the Company’s website, www.saic.com, beginning at 8:00 a.m. Eastern time today, October 13, 2010.

Charts to be used in the presentations made by the Company’s executives at the Conference are attached to this report as Exhibit 99.1.

Certain statements made in the charts attached to this report as Exhibit 99.1 or by executives at the Conference contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act). Forward-looking statements involve a number of risks and uncertainties. A number of factors could cause the Company’s 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, 2010, the Company’s Quarterly Reports on Form 10-Q and other filings that the Company makes with the SEC from time to time. Due to these uncertainties and risks, readers of this report and persons who view these presentations are cautioned not to place undue reliance on such forward-looking statements, which speak only as of October 13, 2010. The Company disclaims any duty to update guidance or any other forward-looking statement provided in the Exhibit to this report or in the presentations made by Company executives at the Conference to reflect subsequent events, actual results or changes in the Company’s expectations.

The information contained in this report, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (Exchange Act), or otherwise subject to the liabilities of that section of the Exchange Act. Furthermore, the information contained in this report, including the Exhibit attached hereto, shall not be deemed to be incorporated by reference into any registration statement of the Company or other document filed by the Company pursuant to the Securities Act or the Exchange Act.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit 99.1 Charts used in executive presentations made on October 13, 2010 at the SAIC Institutional Investor Conference*

* This Exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section of the Exchange Act, nor shall it be incorporated by reference into any filing under the Securities Act or the Exchange Act.

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

(Registrant)	SAIC, INC.
Date: October 13, 2010	By:	/s/    VINCENT A. MAFFEO
		Vincent A. Maffeo
	Its:	Executive Vice President and General Counsel

3

EX-99.1

Welcome and Introduction

Paul Levi

October 13, 2010

Exhibit 99.1

Conference Materials

•

Conference materials will be

available on SAIC’s

Investor

Relations web site

–

Management presentations

–

Presenter biographies

–

Acronym glossary

2

Energy | Environment | National Security | Health | Critical Infrastructure

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Applications

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Corporation

in

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States

and/or other countries.

Agenda

Time

Event

Speaker

7:00 a.m.

Breakfast

8:00 a.m.

Welcome

Paul Levi

8:05 a.m.

Enterprise Strategy and Outlook

Walt Havenstein

8:35 a.m.

Introduction to Health and Energy

Strategies

Joe Craver

8:45 a.m.

Energy Strategy

JT Grumski

9:05 a.m.

Health Strategy

Clement Chen

9:25 a.m.

C4: Mission Capability Integration

Deb Alderson

9:45 a.m.

Cyber

Larry Cox

10:15 a.m.

Break

10:30 a.m.

Business & Corporate Development

Jim Cuff

10:50 a.m.

Technology

Amy Alving

11:10 a.m.

Financial Overview

Mark Sopp

11:30 a.m.

Q&A

Walt Havenstein

11:55 a.m.

Closing

Walt Havenstein

12:00 p.m.

Lunch

Energy | Environment | National Security | Health | Critical Infrastructure

3

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Energy | Environment | National Security | Health | Critical Infrastructure

Forward Looking Statements

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 SAIC’s

Annual Report on Form 10-K for the year ended

January 31, 2010, and other filings that SAIC 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 13, 2010. SAIC 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 expectations.

These presentations describe financial results through H1 (February 1 –

July 31,

2010)

4

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Enterprise Strategy and Outlook

Walt Havenstein

October 13, 2010

Energy | Environment | National Security | Health | Critical Infrastructure

One Year Later

6

•

Market pressures developing as

expected

•

Industry responses are predictable

•

Need for innovation greater than ever –

including cross-enterprise

•

Some missions will continue to grow/outperform

•

Enduring needs will be just that

•

Procurement environment will reward agility

•

Providers that deliver exceptional value will

prosper

Bullish

on

SAIC’s

Growth

in

our

Large

Markets

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Energy | Environment | National Security | Health | Critical Infrastructure

Strategy Articulation

SAIC

provides

mission-oriented

solutions

for

national security, energy, health,

and other essential needs of the U.S.

government and allied nations, as well as

major enterprises serving critical

infrastructure needs. SAIC combines

technologies and domain

knowledge

to deliver solutions that

support our customers’

entire life cycle.

7

Mission solutions

add enduring value

These markets value

innovation in and integration

of technology, and deliver on

essential needs

Our breadth and depth in this

combination differentiates

SAIC from the competition

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Evolving Market Focus

8

C4ISR

Logistics, Readiness and

Sustainment

Cyber

Energy

Health

C4

ISR

Benham

Atlan

R. W. Beck 

Varec

BPLG

Acquisition/Investment

FY06

FY07

FY08

FY09

FY10

FY11 Est*

$1.6B

$2.5B

$1.5B

$0.7B

$1.0B

$0.4B

SET

FY11

CloudShield

Reveal

BD Systems

C4ISR

Denver

CarScan

* Annual Revenue in each category for FY11 is estimated from SAIC Business

Unit data. See  Appendix for a more detailed description of the methodology

used to estimate revenues in these categories

GeoViz

GSTI

AETC

C4ISR

Energy | Environment | National Security | Health | Critical Infrastructure

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Energy | Environment | National Security | Health | Critical Infrastructure

SAIC’s

World Class Team

9

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SAIC

Executive Team

Walt Havenstein

Chief Executive Officer

Mark Sopp

EVP, CFO

Jim Cuff

EVP

Business

Development,

Strategy & M&A

Amy Alving

Sr. Vice President

Chief Technology

Officer

Joe Craver

Group President

Infrastructure,

Energy,

Health & Product

Solutions

$4.1B

Stu Shea

Group President

Intelligence,

Surveillance

& Recon (ISR)

$2.6B

Larry Cox

SVP, BU General

Mgr

Intel & Info Solutions

(Cyber)

$0.6B

Deb Alderson

Group President

Defense Solutions

$3.5B

Energy | Environment | National Security | Health | Critical Infrastructure

Major Accomplishments in FY11

•

Increased

investment

in

future

growth

•

H1

book-to-bill

1.1

–

Contract wins: 21 > $100 million and counting*

•

Operational

achievements

–

Total of 23,500 MRAPs/ATVs delivered

–

Commercially Hosted InfraRed

Payload (CHIRP) delivered

–

114 bases completed for Guardian Installation Protection

Program

–

300,000 tires delivered in-theater (800,000 total)

–

Design-Build National Award of Excellence for LEED-Silver

manufacturing facility

–

3,000th hospital enrolled in CDC’s Health Care Safety

Network

10

*As of 10/7/2010

#4

Top 25 GSA Contractors

Government Executive

(August 2010)

#3

Barron’s

500

Barron’s (May 2010)

#3

World’s Most Admired Companies:

Information Technology Services

FORTUNE

(March 2010)

#5

Top 100 Government Contractors

Washington Technology

(June 2010)

#5

Top 100 DHS Contractors

Government Security News

(January 2010)

#4

Sustainable Engineering Verdantix

Green

Quadrant

(September 2010)

#215

FORTUNE 500

Fortune (April 2010)

Industry Recognition

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The Way Ahead

•

Changing environments require agility

•

Substantial value creation potential from SAIC

–

Truly broad capabilities

–

Outstanding customer insight and affinity

–

Unlocking power of the enterprise

•

The right team with the right tools for the times

11

INGENUITY

To build solutions

AGILITY

To adapt to the markets

GROWTH

To grow value

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Appendix

Energy | Environment | National Security | Health | Critical Infrastructure

Definition of Strategic Growth Areas

•

Strategic

Growth

Areas:

In

these

presentations,

we

provide

revenue

and

other

performance

data for the following strategic growth areas: ISR; Cyber; Energy; Logistics, Readiness &

Sustainment; and Health. These are general market areas that we have determined to focus

our investments and other business activities, but we do not manage our operations to fit

these general market areas. We manage our operations through Business Units that form the

basis for our financial reporting. The revenue and other performance data contained in these

presentations

reflect

the

performance

of

specific

Business

Units

under

which

we

focus

our

strategic

growth

area

initiatives.

These

Business

Units

have

operations

in

markets

outside

the

strategic growth areas. Also, Business Units that are not included in calculating revenue and

other performance

metrics

for

a

particular

strategic

growth

area

may

have

revenue

from that

area. The

revenue

and

other

performance

data

provided

for

strategic

growth

areas

in

these

presentations, therefore, represent approximations of our performance in these areas.

13

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Introduction to Energy and Health

Joe Craver

October 13, 2010

Energy | Environment | National Security | Health | Critical Infrastructure

Energy and Health

Aligning for Future Growth

15

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Energy, Environment & Infrastructure

JT Grumski

October 13, 2010

SAIC in the Energy Market

17

Generation

Trading

Transmission

Distribution

Fuel production

Energy

Use

Energy

Environment

Infrastructure

Differentiating

Energy Management Services

Energy Efficiency, Independent Engineering, Consulting, Climate Change

SAIC’s

Current Markets

Energy Infrastructure

& Renewables

Smart Grid, T&D Engineering, IT

SAIC alignment to

address increasingly

hard problems at

confluence of these

markets

Energy | Environment | National Security | Health | Critical Infrastructure

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Energy | Environment | National Security | Health | Critical Infrastructure

Overall Market Characteristics

Market Characteristics and SAIC

•

Energy Management Services

–

Enduring energy efficiency market

–

Consulting fit with SAIC

–

Opportunity for long-term, close client

relationships

•

Smart Grid/T&D/IT

–

Convergence of engineering and information

technologies and data

–

Enduring, developing field with need for

integration

–

Developing cyber market

•

Energy Infrastructure and Renewables

–

Offer complete solutions to clients

–

Long term market as energy mix evolves and

decentralizes

18

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Energy | Environment | National Security | Health | Critical Infrastructure

Relevant Drivers and Trends

19

Trends

Across Our

Offerings

Energy Management

Services

Smart Grid/T&D

Engineering/IT

Energy Infrastructure &

Renewables

Industry

•

Enterprise approach

•

Sustainability

•

Solutions for grid

connections

•

Demand response

•

Renewable generation

•

Continued energy

efficiency

Utilities

•

Growing demand for

energy efficiency programs

•

Meter deployments create

data management need

•

Concerns about

cybersecurity

•

American Recovery and

Reinvestment Act (ARRA)

•

Power purchase from

renewable developers

Government

•

Energy efficiency, audit

through implementation

•

No cohesive approach yet

•

Microgrids

•

Energy security

•

Mandates for energy/

water use reduction

Drivers

Energy

Prices—Green House Gas—Economic Recovery—Financing Ability—Business Transformation

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Snapshot of Market Progress

20

Solid Projects and Pipeline

Across Diverse and Powerful Customer Set

Industry

•

Heavy Industry

•

Refineries

•

Commercial

•

Financial Institutions

•

Developers

•

Automotive

Utilities

•

Electric and Water

•

Investor Owned

•

Coops

•

Municipals

•

Transmission Operators

Government

•

Department of Energy

•

Navy

•

Air Force

•

National Guard

•

State & Local Energy Agencies

•

Energy Information Agency

Energy Management

Services

Smart Grid/T&D

Engineering/IT

Energy Infrastructure &

Renewables

•

$5B DOE Energy Efficiency

IDIQ

•

Pull from international

customers

•

$15M of Air Force energy

audits

•

Won $38M Hawaii Energy

Mgt

•

Won 20+ utility smart grid

contracts

•

Entergy IT contract extended

5 years

•

$13M Lakeland Win

•

Signed $23M SAIC financed

geothermal project in Nevada

•

Won $25M DOE bio-mass

contract

•

Pursuit of >$350M geothermal

projects and $500M of other

renewable energy projects

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SAIC Strategic Plan

21

Environment/ Water

Energy Management

Services

Energy Infrastructure &

Renewables

Smart Grid/

Energy IT

SAIC Today

FY11

Acquisitions

Investments

IR&D

Diversified

energy

portfolio

across 

industrial,

utility and

government 

markets

Acquisitions

Execute strategic plan

•

IR&D for smart grid offering

•

Market visibility/branding

•

Business development

•

Financing support of targeted

renewable projects

Investments

The BPL Global logo is a registered trademark of BPL Global in the United States and/or other countries.

Energy | Environment | National Security | Health | Critical Infrastructure

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Health & Life Science Solutions

Clement Chen

October 13, 2010

Energy | Environment | National Security | Health | Critical Infrastructure

Healthcare Drivers of Change

•

Rising costs

•

Aging population

•

Prevalence of chronic disease

•

Advances in technology and medicine

•

Data volume and use growth

•

Systemic business model dysfunction

•

American Recovery and Reinvestment

Act (ARRA) / Health Reform Bill

•

Emergence of new entities and

disruptive delivery schemes

23

U.S. Healthcare Ecosystem

Information-Based

Health

Solutions

-

Key

to

the

Future

Providers

Patients

Payers

Life

Science

PHARMA

Labs

PBM

Government

Information

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Total U.S. Healthcare Cost Summary

24

Hospital

care

Other

Admin / Private

Health Insurance

Prescription

Drugs

Nursing

Homes /

Home

Health

Other

Professional

Services

Physician &

Clinical

Services

31%

26%

7%

10%

9%

6%

11%

Expenditures ~ $2.6T in 2010

(Est.)

Payers -

Sources of Funds

Consumer

Medicaid

Medicare

Other Public

Payers

Private

Payers

41%

15%

20%

12%

12%

HIT

HIT

Provider

Pharma

/

MDDE

Payers

Fed / S&L Govt

21%

23%

18%

38%

Health Information Technology (HIT)

•

HIT a $78B Market

•

7%

CAGR

-

$130B+

by

2019

•

Touches

every

health

sector

…catalyst for SAIC’s

strategic approach

Sources include: CMS Data, Gartner, Health Affairs; expenditure

and sources of funds percentages based on 2008 CMS actuals

Energy | Environment | National Security | Health | Critical Infrastructure

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SAIC Health Solutions and Customers

25

•

Department of Veterans Affairs

•

Department of Defense

•

Commercial Enterprises

•

Military Health System & VA

•

Health & Human Services, ONC

•

State and Commercial Enterprises

•

Agency for Healthcare Research

Quality, FDA, MHS, VA

•

Centers for Medicare Services

•

SSA, States and Commercial

•

National Institutes of Health

•

Centers for Disease Control

•

States, International

•

National Institutes of Health

•

Food & Drug Administration

•

Centers for Disease Control

•

Commercial Enterprises

•

Patient Safety

•

Comparative Effectiveness

•

Health Data Repositories

•

Eligibility Determination

•

National Health Infrastructure

•

Health Information Exchanges

•

Grants Management

•

Pandemic and Bio Surveillance

•

Informatics, Disease Reporting

•

Epidemiology and Biostatistics

•

Translational Research

•

PTSD, TBI

•

Regulatory Affairs

Clinical Health IT

•

eHealth

Records

•

Clinical Workflow

•

Privacy and Security

Health Infrastructure

Healthcare Cost  and

Quality

Public Health

Health Sciences

Energy | Environment | National Security | Health | Critical Infrastructure

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Public and Private Sectors Together Driving

Toward a Future Integrated Healthcare System

26

Personal

Health

Record

Services

Health

Information

Exchanges

State and

Local

Agencies

University

Medical and

R&D Labs

$

$

$

$

Federal Health

Agencies

CDC

VA

DoD

SSA

$

$

HHS

CM

S

Legislation

Commercial Hospitals and Providers

Market Convergence Creating Opportunity

Payers

Source

material

based

on

Onchit

&

Input

Medical

Products

Manufacturing 

and Pharma and 

PBMs

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Continuing to Pursue our Strategic Plan

27

Health Sciences

Public Health

Healthcare Cost

and Quality

Health Infrastructure

Clinical Health IT

SAIC Today

FY11

…

organic expansion,

investments and acquisitions

to fuel growth

SAIC

Health

Solutions

at

the

Heart

of

Information-Based

Healthcare

One SAIC Leverage

Cyber

Data Mining and

Fusion

Predictive Analytics

Modeling  and Simulation

Situational Awareness

Cloud Computing

Systems Engineering and Integration

Real Time Systems

Energy | Environment | National Security | Health | Critical Infrastructure

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C4ISR

C4: Mission Capability Integration

Providing Integration, Innovation and Customer Value

Deb Alderson

October 13, 2010

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Overall C4 Market Characteristics

Market Characteristics and SAIC

•

Market Trends

•

Stable market CAGR

•

C4 + ISR defines strength

•

Command and Control

•

Focus on Army and Air Force

•

Joint will increase with DoD

reorganizations

•

Extending to the tactical edge

•

Service oriented architectures/collaboration

•

Modeling and simulation

•

Cybersecurity

•

Net Centric Communications

•

Distributed networks and communications

infrastructure

•

Interoperability

•

Bandwidth

29

Ref: Frost & Sullivan DoD

C4ISR Market Estimates March 2010

Energy | Environment | National Security | Health | Critical Infrastructure

C4 Strategy Components

30

C4 Mission Capability Integrator

•

$8.4 billion three-year pipeline; 46 opportunities > $100 million

•

Joint C4 interoperability and service oriented architecture

•

Strategic partnerships

Distributed Networks

•

$8.3 billion three-year pipeline; 25 opportunities >$100 million

•

Enterprise network and communications capability and

management

•

Tactical edge capability

Life Cycle Capability Management Approach

•

$11 billion three-year pipeline; leveraging logistics readiness

and sustainment needs

•

C4 legacy asset upgrades across all asset domains

•

ISR and ground force modernization

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C4 Market Dynamics

31

Building it

Differently

Buying it Differently

Using it Differently

Customer Change

Vectors

Customer Change

Vectors

Irregular Warfare

Integrated Solutions

SAIC Approach

SAIC Approach

Imperatives

Imperatives

Enabling Innovation in

Doctrine and Organization

The Network as the Platform

for Innovation

Mission Capability Integration

75% Solutions

Energy | Environment | National Security | Health | Critical Infrastructure

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•

MRAP Integration & Support

•

Afghanistan Surge Support

•

Combatant Command Wins

•

Air Force Combat Information

Transport System

•

Navy Consolidated Afloat

Network Enterprises Services

•

Expeditionary

Surveillance & Security

•

Air Operations Command

C4 SAIC Approach

C4 SAIC Approach

Recent Accomplishments

Recent Accomplishments

Building it

Differently

Buying it Differently

Using it Differently

Enabling Innovation in

Doctrine and Organization

The Network as the Platform

for Innovation

SE&I Agent

Customer Change

Vectors

Customer Change

Vectors

Market Evolution…Mission Capability Integration

32

Ground Forces Modernization

Building Upon MRAP/GCV

33

•

Thought Leadership

•

Platform Independence

•

Technical Depth

•

Domain Expertise

•

Organizational Agility

•

Customer Affinity

Ground Forces

Modernization

Develop and Field New Capabilities

Upgrade Capabilities and Recapitalization

Integrate and Sustain Capabilities

Continuous Modernization Through Sustainment …

Full Life-Cycle Solutions

Energy | Environment | National Security | Health | Critical Infrastructure

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C4 Game Changers

Dept of State

Vanguard II –

Enterprise Network

Solution

Prime:  $3B

Special Operations

Command

IT &

Enterprise

Network

Contract

Prime:  $300M

Multi Year

IDIQ

Defense Information

Systems Agency

Global Services

Management (GSM)

Prime:  $4B

Air Force -

Electronic

Systems Center

Operations Command

Weapons Systems

Management

Prime:  $500M

Prime:  $800M

Multi Year IDIQ

Army -

Network

Enterprise Tech.

Command

Sustainment &

Defense of Army

Communication

Southwest Asia

and Central Asia

Prime: 

$400M

Ground Combat

Vehicle

Army

Acquisition

Command

$8B+ Opportunities Decided Over Next 12 Months

34

Energy | Environment | National Security | Health | Critical Infrastructure

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Cybersecurity

Larry Cox

October 13, 2010

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Global Cyber Market

•

Global IT spending estimated at $3.2 trillion per year

–

Represents hundreds of billions of dollars in potential cyber

opportunities

•

U.S. market leading global investment in cyber

•

Federal cyber center of gravity migrating to Maryland (I-95

corridor)

•

Intelligence community is leading the way in cyber technology

investments in the federal space

•

Borderless nature of cyber is fueling international investment

–

Global networks are interconnected and subject to the vulnerability

of weak defenses anywhere in the world

•

International buyers looking to U.S. companies

•

International market growing faster than U.S. market

•

Global commerce and governments are increasingly dependent

on information and communication technology

36

Energy | Environment | National Security | Health | Critical Infrastructure

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Leveraging Intelligence Community Experience,

CloudShield, IR&D, and M&A to Grow Federal

& Commercial Business

•

Security challenges are increasing

–

Greater sophistication, severity, and frequency of attacks

–

Heightened government and industry regulations

•

Similarity in cyber threats drives similarity in solution sets and technology transfer

–

Cyber underpins all communications, records, and control systems

–

Domain expertise is found in both commercial and federal organizations

•

The majority of critical infrastructure is managed by commercial

organizations

–

Health, banking/financial, energy, telecommunications, defense industrial base

•

Major push by the DoD

to combine the best technologies to protect critical infrastructure across

the federal and commercial markets

37

Fed/Civ

.gov

IC, DoD

.ic, .mil

Commercial

.com, .org

.net

–

Highly organized and well-funded hackers

–

Increased risk of unknown vulnerabilities

Energy | Environment | National Security | Health | Critical Infrastructure

SAIC Cybersecurity:

Strategy to Serve Multiple Markets

38

Core Consumers

•U.S. Government

•Other Governments

Vertical Consumers

•Telecommunications

•Defense Industrial Base (DIB)

Horizontal Consumers

•Critical Infrastructure

•Energy

•Healthcare

•Finance

Cybersecurity Is a Strategic Enabler /

Discriminator Across the SAIC Enterprise

Data

Sources

Sensors

and Data

Processing

(CloudShield)

Data

Store

Advanced

Analytics

(CloudShield

Center of

Excellence)

Information

Sharing and

Collaboration

(IR&D)

Supporting Services: Policy Development, Security Life

Cycle, Compliance, Integration, Etc.

(Workforce Modernization)

Cyber-Augmented

Solutions

Segment-Specific

Cyber Solutions

Exquisite Cyber

Solutions

SAIC Cybersecurity Offerings

Energy | Environment | National Security | Health | Critical Infrastructure

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Energy | Environment | National Security | Health | Critical Infrastructure

SAIC Cybersecurity

Summary

•

SAIC’s

cybersecurity

business is well positioned for growth

–

$1.5 billion FY11 awards (including IDIQ) through October 2010

–

Strategic internal investment

•

CloudShield

platform: ITS integration, cloud computing, and Center of Excellence application development

•

Developing other platforms with multi-year investment

•

Workforce modernization efforts are attracting and retaining talented employees for current and future

customer needs

•

A leader in cybersecurity:

–

Cybersecurity

training

–

Security and information operations

–

System engineering, development and integration

–

Managed security services

–

Certification and accreditation

–

Deep packet inspection

–

Advanced analytics

39

Energy | Environment | National Security | Health | Critical Infrastructure

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Business Development / Mergers and

Acquisitions

Jim Cuff

October 13, 2010

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Business Development Successes

•

$ bookings and book-to-bill (BTB) tracking higher

–

Standard contracts* and task orders only

–

H1 bookings up 21 percent (FY11 vs. FY10)

–

H1 BTB is 1.1, compared with 0.9 a year ago

•

$ submittals tracking higher

–

For standard contracts* and task orders, H1 up 32 percent

(FY11 vs. FY10)

•

$ win rate comparable to last year despite more

competition

–

65 percent for standard contracts* and task orders (H1)

•

Submitted undecided proposals at an all-time high

–

$18.8 billion

–

Includes $10 billion for standard contracts* and task orders

•

$100 million + wins tracking higher (includes IDIQ’s)

–

21 wins in FY11 as of 10/7/2010; ended FY10 with 29

–

41 more decisions expected in FY11

•

Growing pipeline

* Excludes IDIQ vehicles

41

$0.0

$5.0

$10.0

$15.0

$20.0

Q1

Q2

Q3

Q4

Submitted Undecided Proposals ($B)

FY10 Total

FY11 Total

Energy | Environment | National Security | Health | Critical Infrastructure

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FY11 $100M+ Wins*

•

Standard Contracts** and Task Orders (10 total)

–

Navy Joint Special Operations Sensors & Weapons ($351M)

–

Army Sustainment Command Distribution Management Center ($128M)

–

Navy Tactical Mobile Systems Engineering ($108M)

–

Seven

Additional

Wins

($2,109M)

(Customer

restrictions

prohibit

public

release;

two

Recompete

wins)

•

IDIQ’s

(11 total)

–

Defense Intelligence Agency Solutions for the Information Technology Enterprise (Multiple, $600M)

–

Navy Common Afloat Local Area Network Infrastructure (Multiple, $502M)

–

Missile Defense Agency Engineering & Support Services Group 3 Full & Open (Multiple, $338M)

–

Centers for Disease Control & Prevention Information Management Services (Multiple, $250M)

–

Army

Industrial

Prime

Vendor

Generation

II

-

Anniston

&

Red

River

(Single,

$241M)

–

Defense Technical Info Center Software Network Information Modeling (Multiple, $222M)

–

Army Chemical Biological Radiological Nuclear Explosive Mission Support (Multiple, $200M)

–

US Strategic Command Systems & Mission Support II Plus-up (Single, $180M)

–

National

Geospatial

Intelligence

Agency

Total

Application

Services

for

Enterprise

Rqmts

(Multiple,

$150M)

–

Army Aviation & Missile R&D Engineering & Integration (Single, $148M)

–

Navy Program Executive Office C4I Support (Multiple, $101M)

42

* Estimated future revenue value to SAIC

** Excludes IDIQ vehicles

Energy | Environment | National Security | Health | Critical Infrastructure

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Business Development Initiatives

•

Sharpening our focus on faster growing markets

–

Cyber

–

C4ISR

–

Logistics readiness and sustainment

–

Energy

–

Health

•

Taking market share 

–

Account management

–

Cross-selling

–

Differentiated offerings 

–

Enterprise solutions

–

Larger more complex pursuits

•

Deploying an advanced customer relationship management system

43

Energy | Environment | National Security | Health | Critical Infrastructure

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Organizational Conflict of Interest (OCI)

•

Responding proactively

•

Tailoring our OCI approach to individual customers and markets

–

Overarching strategy in our high growth markets

mission oriented solutions provider vs.

advisor

–

Do not intend to declare a single strategic intent (performer or

advisor) across all customers

–

Can best support some clients through an advisor role with no impact to our other business   

•

Enhancing our common business development process to address OCI

–

Targeted checks for OCI in capture planning phases

–

Avoid opportunities that may interfere with ability to expand work in our high-growth markets

–

Leveraging our capture and account managers

44

Energy | Environment | National Security | Health | Critical Infrastructure

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Mergers and Acquisitions

•

Strategy-driven enterprise M&A focus

–

Defined process led by the CEO

–

Enterprise-driven due diligence and integration

•

Emphasis on high-growth markets and mission-oriented solutions:

–

Assets that can give us market access

45

CloudShield

-

Department of Homeland Security 

SET –

Providing CounterBomber

system technology

Reveal –

Leader in explosive detection systems

–

Assets that grow our technical discriminators

CloudShield

Benham

–

Assets that benefit the enterprise

Energy | Environment | National Security | Health | Critical Infrastructure

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Leveraging SAIC Market Position

“One SAIC”

46

Technology

An enabler for growth

Amy Alving

October 13, 2010

Energy | Environment | National Security | Health | Critical Infrastructure

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The Current Environment

•

Funding is tight in all markets

–

DoD: fewer new-start programs

•

Technology is needed to solve our toughest problems

48

National Academy of Engineering “Grand Challenges”

www.engineeringchallenges.org

Energy | Environment | National Security | Health | Critical Infrastructure

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Data Tsunami –

Where We’re Headed

•

Enduring realities

–

Data tsunami is here and getting worse:

•

More resolution per sensor

•

More sensors

•

More sensors of different types

•

Extended persistence

–

Available bandwidth is insufficient

–

Increasing reliance on mobile devices

•

Not well-suited for high volume tactical data

49

Wide Area

Multi-Int

Multi-Platform

Persistent

Near Real-Time

Energy | Environment | National Security | Health | Critical Infrastructure

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•

Architectural elements that support real-time operations:

–

On-board processing

–

Operationally informed workflow

–

Smart fusion

–

Cross-cueing sensors in real time

–

Intelligent push/pull data dissemination

–

“Chipping”

info of interest

Data Tsunami –

The Path Forward

50

Tasking

Collection

Processing

Exploitation

Dissemination

Energy | Environment | National Security | Health | Critical Infrastructure

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•

Enduring realities enabled by virtualization

–

More efficient asset utilization

–

New business model: pay “by the drink”

–

Elastic –

what you need, when you need it

–

Platform for innovation

–

New software delivery model

•

The marketplace is already moving, e.g.

–

Amazon launches S3, AWS…

–

Google launches Google App Engine

–

HP purchases EDS, 3COM, 3Par, …

–

EMC purchases RSA, VMware

–

Acadia joint venture: EMC, VMware, Cisco

Next-Gen IT –

Where Things are Headed

51

Software as a Service

Platform as a Service

Compute

Storage

Network

Infrastructure as a Service

Infrastructure as a Service

Virtualized Physical Infrastructure

Virtualized Physical Infrastructure

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Governance / Management

Cybersecurity

and Privacy

Software as a Service

Platform as a Service

Infrastructure as a Service

Virtualized Physical Infrastructure

Compute

Storage

Network

Next-Gen IT –

SAIC’s

Role

•

SAIC’s

role:

–

Transition into cloud

–

Managed services

–

Governance

–

Cyber security

–

Domain-specific

software as a service

(SaaS)

52

Public

Cloud

Private

Cloud

Financial Overview

Mark Sopp, Chief Financial Officer

October 13, 2010

Energy | Environment | National Security | Health | Critical Infrastructure

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Guidance

•

Today we reaffirm this guidance for FY11

FY10

FY11

Revenues

$10.85B

3% -

6% Internal Growth

Operating Margin

8.0%

20 –

40 bps Improvement

EPS*

$1.24

14% -

18% Growth

*Diluted EPS from Continuing Operations

Issued on Q2 FY11 Earnings Call: 9/1/2010

54

Energy | Environment | National Security | Health | Critical Infrastructure

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Revenue Growth Trend

•

Key growth drivers

–

Redirect spend from G&A to

growth initiatives

–

Business Development, B&P,

IR&D

–

Bid larger programs

–

FY10 29 wins >$100M

–

FY11 YTD 21 wins* >$100M

–

Expand focus and resources to

Strategic Growth Areas (SGA)

*as of 10/7/2010

Internal

Acquisitions

Internal Year

End

Guidance

Range

55

Energy | Environment | National Security | Health | Critical Infrastructure

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Revenue Breakout

•

Trend towards fixed price contracts

•

Contract sources continue to migrate towards heavier ID/IQ mix

Attribute

FY08 Revenue

FY09 Revenue

FY10 Revenue

FY11 H1

Revenue

Reporting Segment

Government

94%

95%

96%

96%

Commercial

6%

5%

4%

4%

Group /

Organization*

Infrastructure, Energy, Health & Product

Solutions

40%

38%

38%

36%

Defense Solutions

29%

31%

32%

33%

Intelligence, Surveillance &

Reconnaissance

31%

31%

30%

31%

Revenue Type

Labor-Related

62%

60%

58%

58%

Material and Subcontract

38%

40%

42%

42%

Contract Type

Cost-Reimbursement

47%

48%

48%

47%

Time and Materials

35%

33%

30%

30%

Fixed Price

18%

19%

22%

23%

Contract Source

Single-Award IDIQ Task Order

24%

25%

26%

27%

Multiple-Award IDIQ Task Order

26%

27%

27%

28%

GSA Schedule

14%

15%

15%

15%

Subtotal Master and Schedule Agreements

64%

67%

68%

70%

Standard Contract

36%

33%

32%

30%

56

*Revenue from Groups provided for illustrative purposes only. SAIC manages its operations at the business unit level which are aggregated into Groups for presentation

             purposes only.

Energy | Environment | National Security | Health | Critical Infrastructure

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Enterprise Market Areas*

54% of revenue** in

strategic growth areas***

•

Focus of investments

•

Differentiated offerings

•

Higher margins

32% of revenue** in core business

•

Limited investments

•

Create discretion to fund

campaigns

•

Significant overhead

absorption

•

SAIC legacy

* Areas represented by SAIC Business Units

**Estimated revenue for FY11

***Definition of SGA in Appendix

14% of revenue** in C4

“sustaining business”

•

Moderate investments

•

Large addressable market

•

Large opportunities

•

Demonstrated ability to compete

Core

C4

ISR

Cyber

Energy

Logistics,

Readiness &

Sustainment

Health

57

Energy | Environment | National Security | Health | Critical Infrastructure

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Focus: Strategic Growth Areas

*Estimated revenue for SAIC FY11

Core

C4

ISR

Cyber

Energy

Logistics,

Readiness &

Sustainment

Health

Strategic Growth

Areas (SGA)

Core+C4

FY10

FY11E

FY10

FY11E

Total Revenue

Growth*

9.5%

8.0%

5.8%

2.3%

Internal Revenue

Growth*

8.3%

5.2%

2.7%

0.8%

Book to Bill: FY11 H1

1.3x

0.9x

58

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Guidance issued on 3/30/2010

Margin Tailwinds

-

Project Alignment

-

Shift to FFP

-

Higher Revenues in SGA

-

Facilities and Real Estate

Margin Headwinds

-

Amortization from acquisitions

-

Fee pressures 

10 -

20

FY11 Discrete Items

-

VirnetX

Royalty

-

Unabsorbed investments

-

Revenue shortfall

45

(20)

(5) –

(15)

Guidance issued on 9/1/2010

20 -

40

Focus: Operating Margin Dynamics

~120 bps margin improvement since FY08

Still expect additional base margin improvements

Factors

FY11 bps Impact

FY12 and Beyond

59

Energy | Environment | National Security | Health | Critical Infrastructure

60

Savings

FY09

–

FY11

Streamlining Organizations

Shared Services/ GBS

Facilities Consolidation

Business Process Reengineering

Leveraged Spend

Project Alignment is a catalyst for future margin improvement

Project Alignment: Sources and Uses of Savings

Savings

FY12

–

FY14

Streamlining Organizations

Shared Services/ GBS

Facilities Consolidation

Business Process Reengineering

Leveraged Spend

Total Targeted Savings

$75M

-

$100M

Uses

•

Lower wrap rates to increase competitiveness

•

Increase investment to drive growth and profitability

–

B&P to increase volume and win probability

–

IR&D to build discriminators

•

IT modernization to achieve efficiencies

•

Improve operating margin

–

Higher fees on fixed price contracts

Expected Uses

•

Pricing flexibility

•

Discretionary investments in Strategic Growth Areas

•

Operating margin improvement

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Capital Deployment and Liquidity

•

Strong, consistent free cash flow generation

•

Greater than 90% of free cash flow since FY08 returned to shareholders through stock repurchases

•

Consistently strong (>22%) ROIC*

•

Future real estate sales targeted to generate additional capital

for deployment

Capital Deployment

($M)

FY08

FY09

FY10

FY11 H1

Operating Cash Flow

346

583

620

249

Capital Expenditures

(61)

(59)

(58)

(35)

Free Cash Flow

285

524

562

214

Acquisitions

(145)

(204)

(258)

(140)

Public Stock

Repurchases

(215)

(382)

(434)

(415)

Payment of Debt

(10)

(113)

(18)

(1)

Other

68

15

73

85

Total Cash

(17)

(160)

(75)

(257)

Ending Cash Position

1,096

936

861

604

* See reconciliation table in Appendix

61

Acquisitions

Public Stock Repurchases

Free Cash Flow

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Additional Debt Capacity:

Acquisitions vs. Stock Repurchases

•

Reflective

of

an

indicative

leverage

ratio

consistent

with

external

rating

agencies’

guidance.

•

As an example, SAIC could borrow at most an additional $900 million for acquisitions and retain it’s 

A-

rating  (1.8x max) or $1.3 billion for a BBB+ rating (2.1 max)

•

Estimated borrowing capacity includes incremental income generated by target acquisitions

62

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Financial Summary Chart

•

More emphasis and investment in Strategic Growth Areas (SGA) should drive

enterprise-wide improvement in revenues and profitability

–

Higher FY11 H1 Book to Bill: 1.3x vs. 0.9x for non-SGA

–

Significantly higher projected FY11 internal revenue growth:

•

SGA: 5.2%

•

Non-SGA: 0.8%

–

Significantly higher margin performance in SGA

•

Significant,

ongoing

cost

reduction

initiatives

–

especially

Project

Alignment –

expected to increase SAIC ability to invest in SGA and contribute to margin

improvement

•

Strong, disciplined cash-flow generation leaves SAIC well capitalized and can

be further leveraged to fuel other initiatives targeted to improve shareholder

value

63

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Appendix

Energy | Environment | National Security | Health | Critical Infrastructure

Appendix

•

Definition of Strategic Growth Areas

•

Reconciliation of Non-GAAP ROIC to GAAP Operating Income

•

Reconciliation of Non-GAAP Free Cash Flow to GAAP Cash Flow from

Operations

65

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Definition of Strategic Growth Areas

•

: In

these

presentations,

we

provide

estimates

of

revenue

and other performance data for the following strategic growth areas: ISR; Cyber;

Energy; Logistics, Readiness & Sustainment; and Health. These are general market

areas that we have determined to focus our investments and other

business

activities, but we do not manage our operations to fit these general market areas.

We manage our operations through Business Units that form the basis for our

financial reporting. The revenue and other performance data contained in these

presentations reflect the performance of specific Business Units

under which we

focus our strategic growth area initiatives. These Business Units have operations in

markets outside the strategic growth areas. Also, Business Units

that are not

included in calculating revenue and other performance metrics for a particular

strategic growth area may have revenue from that area. The revenue and other

performance data provided for strategic growth areas in these presentations,

therefore, represent approximations of our performance in these areas.

66

Strategic

Growth

Areas

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Reconciliation of Non-GAAP ROIC to GAAP

Operating Income

In this presentation, SAIC, Inc. refers to return on invested capital (ROIC)

which is a non-GAAP financial measure that is reconciled to the most

directly comparable financial measure, which is operating income. The

company believes that reporting ROIC provides investors with greater

visibility into how effectively it uses the capital invested in its operations.

The company calculates ROIC by dividing operating income after

normalized income taxes by average invested capital. Operating income

after normalized income taxes is calculated by multiplying the sum of

operating

income

by

(1

-

the

normalized

income

tax

rate).

The

normalized

income tax rate of 38.5% approximates our combined federal and state

statutory tax rate.

Average invested capital is calculated by adding total

stockholders' equity to notes payable and long-term debt and subtracting

cash and cash equivalents.

The limitation of this non-GAAP financial measure as compared to the

most directly comparable GAAP financial measure is that financing or

cash deployment decisions may cause ROIC to trend differently from

operating income which is the most directly comparable GAAP financial

measure.

The company addresses this limitation by presenting ROIC near

disclosures of operating income and net income.

This financial measure is

not meant to be considered in isolation or as a substitute for comparable

GAAP measures and should be read only in conjunction with SAIC, Inc.’s

consolidated financial statements prepared in accordance with GAAP. The

method that the company uses to calculate ROIC is not necessarily

comparable to similarly titled financial measures presented by other

companies.

Reconciliation of Return on Invested Capital

FY08

FY09

FY10

H1

FY11

Operating income,

as reported

$673

$776

$867

$480

Normalized income

tax rate

38.5%

38.5%

38.5%

38.5%

Operating income

after normalized

income taxes

$414

$477

$533

$295

Components of

Invested Capital:

31-Jan-07

31-Jan-08

31-Jan-09

31-Jan-10

31-Jul-10

Total stockholders

equity

$1,502

$1,868

$2,084

$2,291

$2,280

Notes payable and

long-term debt

1,228

1,228

1,116

1,106

1,105

Cash and cash

equivalents

(1,109)

(1,096)

(936)

(861)

(604)

Invested Capital

$1,621

$2,000

$2,264

$2,536

$2,781

Average Invested

Capital

$1,811

$2,132

$2,400

$2,659

Return on Invested

Capital

22.9%

22.4%

22.2%

22.2%*

* FY 2011 H1 Return on Invested Capital is an annualized number

67

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Reconciliation of Non-GAAP Free Cash Flow

to GAAP Cash Flow from Operations

Calculation of Free Cash Flow

FY08

FY09

FY10

H1

FY11

Total cash flows provided by

operations

$346

$583

$620

$249

Less: Expenditures for property,

plant and equipment

($61)

($59)

($58)

($35)

Free Cash Flow

$285

$524

$562

$214

68

In this presentation, SAIC, Inc. refers to free cash flow which is a non-GAAP financial

measure that is reconciled to the most directly comparable financial measure, which is cash

flows provided by operations. The company believes that reporting free cash flow provides

investors with greater visibility into how effectively it generates cash. The company

calculates free cash flow by subtracting expenditures for property, plant and equipment

from total cash flows provided by operations. 

The limitation of this non-GAAP financial measure as compared to the most directly

comparable GAAP financial measure is that free cash flow does not represent total cash

flows. The company addresses this limitation by presenting free cash flow near disclosures

of cash flows provided by operations. This financial measure is not meant to be considered

in isolation or as a substitute for comparable GAAP measures and should be read only in

conjunction with SAIC, Inc.'s consolidated financial statements prepared in accordance with

GAAP. The method that the company uses to calculate free cash flow is not necessarily

comparable to similarly titled financial measures presented by other companies.