EX-99.1 2 dex991.htm CHARTS USED IN EXECUTIVE PRESENTATIONS 10/13/2010 Charts Used in Executive Presentations 10/13/2010
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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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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International
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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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International
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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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2010
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Applications
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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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Energy | Environment | National Security | Health | Critical Infrastructure
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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SAIC,
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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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2010
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SAIC,
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logo,
and
"From
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to
Solutions"
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Applications
International
Corporation
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and/or other countries.

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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2010
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trademarks
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Corporation
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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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SAIC,
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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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Energy | Environment | National Security | Health | Critical Infrastructure
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,
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Energy | Environment | National Security | Health | Critical Infrastructure
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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Energy | Environment | National Security | Health | Critical Infrastructure
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

Energy | Environment | National Security | Health | Critical Infrastructure
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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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United
States
and/or other countries.

Energy | Environment | National Security | Health | Critical Infrastructure
©
2010
Science
Applications
International
Corporation.
All
rights
reserved.
SAIC,
the
SAIC
logo,
and
"From
Science
to
Solutions"
are
trademarks
or
registered
trademarks
of
Science
Applications
International
Corporation
in
the
United
States
and/or other countries.
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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2010
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SAIC,
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logo,
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Solutions"
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Applications
International
Corporation
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United
States
and/or other countries.
•
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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2010
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SAIC,
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logo,
and
"From
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Solutions"
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Science
Applications
International
Corporation
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States
and/or other countries.

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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2010
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Applications
International
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SAIC,
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logo,
and
"From
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Solutions"
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Cybersecurity
Larry Cox
October 13, 2010

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.
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
©
2010
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Applications
International
Corporation.
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SAIC,
the
SAIC
logo,
and
"From
Science
to
Solutions"
are
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or
registered
trademarks
of
Science
Applications
International
Corporation
in
the
United
States
and/or other countries.
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
©
2010
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International
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rights
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Solutions"
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Business Development / Mergers and
Acquisitions
Jim Cuff
October 13, 2010

Energy | Environment | National Security | Health | Critical Infrastructure
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2010
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International
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SAIC,
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SAIC
logo,
and
"From
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to
Solutions"
are
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or
registered
trademarks
of
Science
Applications
International
Corporation
in
the
United
States
and/or other countries.
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
©
2010
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SAIC,
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SAIC
logo,
and
"From
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to
Solutions"
are
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trademarks
of
Science
Applications
International
Corporation
in
the
United
States
and/or other countries.
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
©
2010
Science
Applications
International
Corporation.
All
rights
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SAIC,
the
SAIC
logo,
and
"From
Science
to
Solutions"
are
trademarks
or
registered
trademarks
of
Science
Applications
International
Corporation
in
the
United
States
and/or other countries.
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
©
2010
Science
Applications
International
Corporation.
All
rights
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SAIC,
the
SAIC
logo,
and
"From
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to
Solutions"
are
trademarks
or
registered
trademarks
of
Science
Applications
International
Corporation
in
the
United
States
and/or other countries.
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
©
2010
Science
Applications
International
Corporation.
All
rights
reserved.
SAIC,
the
SAIC
logo,
and
"From
Science
to
Solutions"
are
trademarks
or
registered
trademarks
of
Science
Applications
International
Corporation
in
the
United
States
and/or other countries.
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
©
2010
Science
Applications
International
Corporation.
All
rights
reserved.
SAIC,
the
SAIC
logo,
and
"From
Science
to
Solutions"
are
trademarks
or
registered
trademarks
of
Science
Applications
International
Corporation
in
the
United
States
and/or other countries.
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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2010
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Applications
International
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SAIC,
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logo,
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Solutions"
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trademarks
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Science
Applications
International
Corporation
in
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United
States
and/or other countries.
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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2010
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Science
Applications
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Corporation
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the
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States
and/or other countries.
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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2010
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Solutions"
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Applications
International
Corporation
in
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United
States
and/or other countries.
•
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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2010
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SAIC,
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Applications
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Corporation
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States
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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

Energy | Environment | National Security | Health | Critical Infrastructure
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2010
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SAIC,
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States
and/or other countries.
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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2010
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Applications
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Corporation
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States
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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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Applications
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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
©
2010
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Applications
International
Corporation.
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rights
reserved.
SAIC,
the
SAIC
logo,
and
"From
Science
to
Solutions"
are
trademarks
or
registered
trademarks
of
Science
Applications
International
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and/or other countries.

Energy | Environment | National Security | Health | Critical Infrastructure
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
©
2010
Science
Applications
International
Corporation.
All
rights
reserved.
SAIC,
the
SAIC
logo,
and
"From
Science
to
Solutions"
are
trademarks
or
registered
trademarks
of
Science
Applications
International
Corporation
in
the
United
States
and/or other countries.

Energy | Environment | National Security | Health | Critical Infrastructure
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
©
2010
Science
Applications
International
Corporation.
All
rights
reserved.
SAIC,
the
SAIC
logo,
and
"From
Science
to
Solutions"
are
trademarks
or
registered
trademarks
of
Science
Applications
International
Corporation
in
the
United
States
and/or other countries.

Energy | Environment | National Security | Health | Critical Infrastructure
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
©
2010
Science
Applications
International
Corporation.
All
rights
reserved.
SAIC,
the
SAIC
logo,
and
"From
Science
to
Solutions"
are
trademarks
or
registered
trademarks
of
Science
Applications
International
Corporation
in
the
United
States
and/or other countries.

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
©
2010
Science
Applications
International
Corporation.
All
rights
reserved.
SAIC,
the
SAIC
logo,
and
"From
Science
to
Solutions"
are
trademarks
or
registered
trademarks
of
Science
Applications
International
Corporation
in
the
United
States
and/or other countries.

Energy | Environment | National Security | Health | Critical Infrastructure
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
©
2010
Science
Applications
International
Corporation.
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rights
reserved.
SAIC,
the
SAIC
logo,
and
"From
Science
to
Solutions"
are
trademarks
or
registered
trademarks
of
Science
Applications
International
Corporation
in
the
United
States
and/or other countries.

Energy | Environment | National Security | Health | Critical Infrastructure
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
©
2010
Science
Applications
International
Corporation.
All
rights
reserved.
SAIC,
the
SAIC
logo,
and
"From
Science
to
Solutions"
are
trademarks
or
registered
trademarks
of
Science
Applications
International
Corporation
in
the
United
States
and/or other countries.

Energy | Environment | National Security | Health | Critical Infrastructure
©
2010
Science
Applications
International
Corporation.
All
rights
reserved.
SAIC,
the
SAIC
logo,
and
"From
Science
to
Solutions"
are
trademarks
or
registered
trademarks
of
Science
Applications
International
Corporation
in
the
United
States
and/or other countries.
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.