Qinetiq Group Plc · LSE:QQ.
Qinetiq — Investor Day (September 2012)
48 slides from Qinetiq's investor day presentation, Sep 26, 2012
Slide 1: People Who Know How – Investor Day
People Who Know How Investor Day 26 September 2012
Slide 2: Introduction
Introduction Leo Quinn Chief Executive Officer
Slide 3: Objectives of the day
Objectives of the day - Allow you to meet our leaders - Help you understand our businesses - Explain their unique competitive advantages - Give you a flavour of the future opportunities
Slide 4: Agenda
Agenda 08:45-09:00 Introduction 09:00-10:30 Core UK capabilities 10:30-10:45 Test For Value example: GAJT™ 10:45-11:00 Coffee 11:00-12:30 Explore opportunities: OptaSense® and TSS 12:30-13:00 Summary 13:00-13:30 Lunch
Slide 5: Maximise Scale Maintain the rigour
Maximise Scale Maintain the rigour c90% of revenue c8% of revenue c2% of revenue MEWS E-X-Drive® Energy from waste GAJT™ Space UAS sensors OptaSense® Training & Simulation Cyveillance International Ranges Protective monitoring Robotic controller kits UAS Services CueSim Invest Divest Trade-Through C
Slide 6: How we structure the group
How we structure the group ithe tt tre Air Weapons Maritime Information Cyber Force & Base Acquisition Training & Australia & Intelligence Security Protection Services Simulation Mission & Aerospace Software & Cyveillance Lifecycle Information Solutions Ops & Systems Systems Engineering Solutions Gl
Slide 7: UK services – who you will meet today
UK services Who you will meet today rth @Air @ Weapons 8 Maritime Australia Training & Simulation Managed Services Information Force & Base & Intelligence Protection t ft Cyber Acquisition Security Services © Technical & Information Services
Slide 8: Maximising the Core – Air Division
Maximising the Core Gaz Borland Managing Director, Air Division
Slide 9: What is Air Division?
What is Air Division?
Slide 10: We test new military aircraft & equipment
We test new military aircraft & equipment - Using our dedicated facilities - Supported by an agile engineering team - Delivering a wide variety of tests
Slide 11: We evaluate the risks and assure safety
We evaluate the risks and assure safety - Independent advice for Release to Service - Continuous safety & airworthiness support
Slide 12: We future-proof today's aircraft
We future-proof today's aircraft - Applying tomorrow's technology to today’s aircraft - Pushing the envelope
Slide 13: We train test pilots
We train test pilots - Sustaining UK Test & Evaluation - Strong brand in overseas markets - Defence diplomacy
Slide 14: We generate world-class research
We generate world-class research - Leading research consortia - Delivering technology advantage
Slide 15: Unique breadth of capability delivered across the lifecycle
Unique breadth of capability delivered across the lifecycle “uy f - = ee ONS ee
Slide 16: Our competitive advantage
Ee Our competitive advantage + Our customers are under ever tighter regulation and need our unique combination of: sb UiRerdspate Engineers 300 Maintenance engineers - Expert people - Independence from the supply chain * Unrivalled facilities « Unmatched breadth and LTPA T&E Year 9 of 25 depth of ca
Slide 17: Future opportunities
ee Future opportunities * Getting closer to MOD - Integrated, joint programme planning » Advising Air & Joint Helicopter en ee eran, 650m Commands + Engaging throughout the acquisition lifecycle UK Air procurement 4,210m 3,680m Current revenue 200m » Growing our Core UK business » Emerging UAS marke
Slide 18: UK services – who you will meet today
UK services Who you will meet today rth @Air @ Weapons 8 Maritime Australia Training & Simulation Managed Services Information Force & Base & Intelligence Protection t ft Cyber Acquisition Security Services © Technical & Information Services
Slide 19: Maximising the Core – Weapons
Maximising the Core John Anderson Managing Director, Weapons
Slide 20: What is Weapons Division?
What is Weapons Division? - 1,100 weapons specialists across 20 sites + £170m revenue underpinned by 2 long-term contracts UK market share EE (Se ee ee ee ee Ee Current market (£)* 2 ee e- UK Weapons procurement 770m 770m 7S ja Sk pee UK Weapons RDT&E 230m 230m aE Current revenue 170m QinetiQ * Qine
Slide 21: Our competitive advantage
Our competitive advantage People Who Know How 700 Range engineers 400 Weapons systems experts Long term Capabilities contracts LTPA T&E Year 9 of 25 Year 4 of 20 CATS Aerial targets Weapons Division sites West Freugh Eskmeals RAF Donna Nook RAF Holbeach Aberporth Malvern RAF Pembrey Manorbier Pendin
Slide 22: Future opportunities
ee Future opportunities * UK and international outsourcing opportunities - Improved UK service offerings - Build on presence in Australia and Scandinavia to deliver growth in overseas markets
Slide 23: Future opportunities
ee Future opportunities - Improved UK service Munitions sites offerings - Munitions end-to-end ene services © Compounds - Targets ee e e oO e © O fe) e
Slide 24: Future opportunities
Future opportunities - Build on presence in Australia and Scandinavia to deliver growth in overseas markets: - Aerial targets service ; oe Mirach, Firejet and - International range Voodoo targets capability
Slide 25: UK services – who you will meet today
UK services Who you will meet today rth @Air @ Weapons 8 Maritime Australia Training & Simulation Managed Services Information Force & Base & Intelligence Protection t ft Cyber Acquisition Security Services © Technical & Information Services
Slide 26: Maximising the Core – Maritime Division
Maximising the Core Sarah Kenny Managing Director, Maritime Division
Slide 27: Maritime Business Overview
fi Sse Eee eg Maritime Business Overview - 480 multi-disciplinary - £60m revenue per annum engineers based on 16 sites underpinned by 3 long-term across the UK contracts UK market share* — QinetiQ’s Ocean Basin, Europe's largest QinetiQ hydrodynamic test facility * QinetiQ estimates
Slide 28: Our competitive advantage
ee Our competitive advantage * We enable the front-line to deliver naval advantage and cost effective capability drawing on our: - Specialist body of knowledge * Technical breadth and depth * Unique and leading edge facilities 150 Naval engineers and architects 150 Command systems specialists 120 Tr
Slide 29: Future opportunities
eae | Future opportunities se Ve * UK opportunities: ss « Further penetration of the naval test and evaluation market * Positioning for selected MoD outsourcing opportunities - International opportunities: ¢ Technical advice and support to Australian ship and submarine sustainment and Ene ca ee | pr
Slide 30: UK services – who you will meet today
UK services Who you will meet today rth @Air @ Weapons 8 Maritime Australia Training & Simulation Managed Services Information Force & Base & Intelligence Protection t ft Cyber Acquisition Security Services © Technical & Information Services
Slide 31: Maximising the Core – Technical and Information Services
Maximising the Core Adam Palser Managing Director, Technical and Information Services
Slide 32: What we do
What we do Research Advice Solutions Innovating & for a safer Total revenue £150m
Slide 33: Our competitive advantage
ee Our competitive advantage High barriers to entry: - Distinctive relationships 600 Scientists and engineers - Distinctive work - Distinctive people - who know how * Distinctive security clearances - Distinctive facilities - Distinctive experiences 200 Acquisition / safety advisors 200 Cyber specia
Slide 34: Future opportunities
ee Future opportunities + In our most important market, uring markets (ep we engage at all parts of the Resilient to events — drawdowns, lifecyc le: programme cancellations - Supporting the drawdown - Regenerating of capability * Changing nature of operations £4bn C4ISR investment in the UK over 10
Slide 35: UK services – who you will meet today
UK services Who you will meet today rth @Air @ Weapons 8 Maritime Australia Training & Simulation Managed Services Information Force & Base & Intelligence Protection t ft Cyber Acquisition Security Services © Technical & Information Services
Slide 36: Maximise Scale Maintain the rigour
Maximise Scale Maintain the rigour c90% of revenue c8% of revenue c2% of revenue MEWS E-X-Drive® Energy from waste GAJT™ Space UAS sensors OptaSense® Training & Simulation Cyveillance International Ranges Protective monitoring Robotic controller kits UAS Services CueSim Invest Divest Trade-Through C
Slide 37: GAJT™
GAJT™ Michael Ritter President and CEO Novatel Inc
Slide 38: Who is NovAtel?
Who is NovAtel ? - Market leader in Global Navigation Satellite System (GNSS) and inertial products Note! - Ground reference receivers for GNSS systems - Ground stations for aviation augmentation « High precision GNSS for most UAVs * High precision GNSS and inertial for autonomous vehicles » Militar
Slide 39: What is the problem?
What is the problem? * Reliance on GPS is enormous “British police began finding jamming _ . . . devices in the possession of criminals four * Position (incl. friend/foe detection) years ago. In 2010 they jailed two men who . Navigatio n had hijacked 40 lorries using a GPS jammer . . to prevent the
Slide 40: What is GAJT™? — instant GPS jamming protection
What is GAJT™? — instant GPS jamming protection * QinetiQ and NovAtel first to market with a single-unit GPS anti-jam antenna designed specifically for military land vehicles * Available as Commercial-Off-The-Shelf products for land, sea and air » An entire product line in development for even more
Slide 41: Partnership accelerates time to market
Partnership accelerates time to market QinetiQ NovAtel + People who know how to create a + Electronic and RF design leader in winning electronic design using GNSS navigation advanced algorithms and relevant + Manufacturing excellence domain knowledge - Demonstrable quality in sales-order ¢ Relations
Slide 42: Maximise Scale Maintain the rigour
Maximise Scale Maintain the rigour c90% of revenue c8% of revenue c2% of revenue MEWS E-X-Drive® Energy from waste GAJT™ Space UAS sensors OptaSense® Training & Simulation Cyveillance International Ranges Protective monitoring Robotic controller kits UAS Services CueSim Invest Divest Trade-Through C
Slide 43: Explore opportunities
Explore opportunities
Slide 44: Session 11:00-11:40
Session 01 11:00-11:40 Group A Magnus McEwen-King MD OptaSense Group B Miles Adcock MD Training and Simulation Services Dave Shrum MD Lifecycle Management, US Services
Slide 45: Session 11:50-12:30
Session 02 11:50-12:30 Group A Miles Adcock MD Training and Simulation Services Dave Shrum MD Lifecycle Management, US Services Group B Magnus McEwen-King MD OptaSense
Slide 46: Summary
Summary Leo Quinn Chief Executive Officer
Slide 47: Summary
Summary - Proven sustainable Core businesses: - Unique competitive advantage - people, expertise, facilities, contract vehicles - Accountable leadership, transparent processes * Investment capacity - Well-positioned to take market share - A disciplined approach to value creation
Slide 48: Disclaimer
ee Disclaimer This document contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Actual results, levels of activity, performance, achievements and events are most likely to vary materially fro