Exhibit 99.1

EX-99.1 2 d596006dex991.htm EXHIBIT 99.1 Exhibit 99.1

Waldorf Astoria Hotel –

New York, NY

Leidos Investor Day

September 11, 2013

Forward-Looking Statements

Certain statements in this presentation contain or are based on "forward-looking" information within the meaning of the Private Litigation Reform Act of

1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plans," "anticipates," "believes," "estimates”

and similar words or phrases. Forward-looking statements in this presentation include, among others: our intent to separate into two independent

publicly

traded

companies

result

the

proposed

spin-off

and

the

timing

the

proposed

transaction;

revenue,

growth,

profitability

and

cost-

efficiency expectations for the company following the spin-off; the expectation that the spin-off will be tax-free; statements regarding the resources,

potential, priorities, competitive positioning, opportunities and addressable markets for the company following the spin-off; expectations about future

regular

special

dividends,

stock

repurchases

and

other

anticipated

uses

capital.

These

statements

reflect

our

belief

and

assumptions

future

events that may not prove to be accurate.

Actual performance and results may differ materially from the forward-looking statements made in these slides depending on a variety of factors,

including: developments in the U.S. Government defense budget, including budget reductions, implementation of spending cuts (sequestration) or

changes

budgetary

priorities;

delays

the

U.S.

Government

budget

process

approval

raise

the

U.S.

debt

ceiling;

delays

the

U.S.

Government

contract

procurement

process

the

award

contracts;

delays

loss

contracts

result

competitor

protests;

changes

U.S.

Government

procurement

rules,

regulations

and

practices;

our

compliance

with

various

U.S.

Government

and

other

government

procurement

rules

and

regulations;

governmental reviews, audits and investigations of our company; our ability to effectively compete and win contracts with the U.S. Government and other

customers; our ability to attract, train and retain skilled employees, including our management team, and to obtain security clearances for our

employees; our ability to accurately estimate costs associated with our firm-fixed-price and other contracts; our ability to comply with certain agreements

entered

into

connection

with

the

CityTime

matter;

cybersecurity,

data

security

other

security

threats,

systems

failures

other

disruptions

our

business; resolution of legal and other disputes with our customers and others or legal or regulatory compliance issues; our ability to effectively acquire

businesses and make investments; our ability to maintain relationships with prime contractors, subcontractors and joint venture partners; our ability to

manage performance and other risks related to customer contracts, including complex engineering or design build projects; the failure of our inspection

or detection systems to detect threats; the adequacy of our insurance programs designed to protect us from significant product or other liability claims;

our ability to manage risks associated with our international business; our ability to declare future dividends based on our earnings, financial condition,

capital requirements and other factors, including compliance with applicable laws and contractual agreements; risks associated with the proposed spin-

off of our technical, engineering and enterprise information technology services business, such as disruption to business operations, unanticipated

expenses, significant transaction costs and/or liabilities, the timing of the spin-off or a failure to complete the proposed spin-off or realize the expected

benefits of the proposed spin-off; and our ability to execute our business plan and long-term management initiatives effectively and to overcome these

and other known and unknown risks that we face. These are only some of the factors that may affect the forward-looking statements contained in these

slides. For further information concerning risks and uncertainties associated with our business, please refer to the filings we make from time to time with

the U.S. Securities and Exchange Commission.

All information in this presentation is as of September 11, 2013. The Company expressly disclaims any duty to update the forward-looking statement

provided

this

presentation

reflect

subsequent

events,

actual

results

changes

the

Company's

expectations.

The

Company

also

disclaims

any

duty to comment upon or correct information that may be contained in reports published by investment analysts or others.

START

STOP

DURATION (mins)

TOPIC

7:30

8:25

Registration and Continental Breakfast

8:25

8:30

Opening Remarks and Introductions: John Sweeney, Investor

Relations

8:30

8:50

Introduction and Company Overview: John Jumper, CEO

8:50

9:20

Strategy and Operations: Stu Shea, President & Chief Operating

Officer

9:20

9:40

CEO and COO Q&A

9:40

10:10

National Security: Lou Von Thaer, Sector President

10:10

10:30

National Security: Q&A

10:30

10:45

Break

10:45

11:15

Health and Engineering: Joe Craver, Sector President

11:15

11:35

Health and Engineering: Q&A

11:35

11:40

Financial: Mark Sopp, Chief Financial Officer

11:40

12:00

Financial: Q&A

12:00

12:15

Closing Remarks: John Jumper, CEO

Investor Day—Wednesday, September 11

Introduction and Company

Overview—

John Jumper

CEO

$200M+ cost savings with more to come in FY15

Emphasize profit growth over top line revenue

–

Target 10.0% EPS annual growth

–

Continuous improvement driving lower rates & higher margin

Strong cash generation: priority return to shareholders

–

$400M annual operating cash flow

Stable business base: doing the important things

–

Intelligence, Health, Energy, Environment

Technology leverage: deep analytics, cybersecurity

Remove Organizational Conflict of Interest

Unlocking The Value of Leidos

What Has Changed…

Old SAIC

Leidos

1,000 flowers blooming and internal

competition

Organizational Conflicts of Interest

Higher cost structure

M&A-focused capital deployment

Cash on the balance sheet

Optimized portfolios, shared resources

and leveraged technology

Free to pursue more business

Designed to cost

Return-focused capital deployment

Cash returned to shareholders

Our Transformation

Our Key Leaders With You Today

JOHN JUMPER

Chairman and Chief

Executive Officer

STU SHEA

President and Chief

Operating Officer

MARK SOPP

Chief Financial

Officer

JOE

CRAVER

President,

Health and

Engineering Sector

LOU VON THAER

President,

National Security

Sector

Aligned in Their Vision for the Company

Our Board of Directors

JOHN P. JUMPER

Chairman & Chief

Executive Officer

DAVID G. FUBINI

Director

JOHN J. HAMRE

Director

MIRIAM E. JOHN

Director

ANITA K. JONES

Director

HARRY M. J. KRAEMER, JR.

Director

LAWRENCE C. NUSSDORF

Director

ROBERT S. SHAPARD

Director

NOEL B. WILLIAMS

Director

Stable National Security Sector revenues combined with growth

opportunities in Health and Engineering

Removal of organizational conflicts of interest

Continuous improvement to drive down costs

Target operating margin of 8.0%+

Low Cap Ex requirements

Strong operating cash generation: Target $400M

operating cash

flow in FY15

Return Value to Shareholder

–

Attractive dividend yield

–

Priority on returning cash to shareholders

–

Higher threshold for acquisitions

Investment Rational

Strategy and Operations—

Stu Shea

PRESIDENT AND CHIEF OPERATING OFFICER

Executing on Our Vision

Why Leidos Matters

Who We Are

What Makes Us Distinctive

What is Our Value Proposition

What You Should Expect From Us

We Have a Roadmap for Delivering Value to our Shareholders

Why Leidos Matters: Convergence of Megatrends

Giving Rise to Opportunities in Enduring Markets That Matter

Increasingly

Impactful

Cybersecurity

Threats

National

Security Threats

Protected

Environment

Clean

Water

Aging Critical

Infrastructure

Border

Protection

Cyber

Threats

Global

Pandemics

Clean

Energy

Preserve

Natural

Resources

Affordable

Healthcare

Increasingly Challenging Economics,

Geopolitics, and Urbanization

Increasingly

Global,

Interconnected

Markets

Increasingly Complex,

Data Rich Environments

Who We Are

Solutions That Secure Our Future and Our Way of Life

FY2014 revenues: ~$6B

National

Security

68%

Health

14%

Engineering

17%

National Security Sector

~$4B revenue

13,500 employees with >10,500 possessing

DoD, TS/SCI, SAP/SAR, and DoE security

clearances

99% government, <1% commercial

Critical mission support for intelligence

community

C4ISR R&D and solutions for DoD

Industry-leading cybersecurity capabilities

Health & Engineering Sector

~$2B revenue

9,500 employees

63% commercial, 37% government

Healthcare information technology, electronic

health records, and advanced data analytics

Health and life science / clinical research

Energy grid and critical infrastructure design

and integration

Revenue Composition

Diversified and Stable Revenue Base, Low Concentration Risk

Contract Type

Prime vs. Subcontract

Contract Concentration

IDIQ v. Non-IDIQ

Employee Location

Customers

OCO Exposure

Intelligence /

Cyber

Other

Commercial

Federal

Gov

Defense

Top 5

Top

6-10

Subcontract

T&M

Fixed Price

Cost Plus

Customer

Site

Non

IDIQ

Prime

OCO

Non OCO

Leidos

Site

IDIQ

We Have the Right Team

A Balanced, Well-Educated Workforce Capable of Creating the Right Solutions

United States

Top Operating Locations

International

Years of Service

Degrees

Veterans

Concentration

Washington, DC (26%)

Baltimore, MD (16%)

San Diego, CA (6%)

Boston, MA (3%)

Orlando, FL (3%)

Dayton, OH (2%)

St. Louis, MO (2%)

Pensacola, FL (2%)

Knoxville, TN (1%)

Oklahoma City, OK (1%)

Afghanistan

Kuwait

Germany

Canada

Japan

Korea

Australia

United Kingdom

Italy

Iraq

Social

Sciences

Engineering

Veterans

Non Veterans

Masters

Bachelors

Others

Doctorate

<2 years

2-5

years

5-10

years

>10

years

Business,

Law,

Economics

Health ($43B)

•

National Security ($94B)

•

Evolve value-based

healthcare through data

analytics

•

Embed cybersecurity for

privacy protection

•

Focus on agile, mission-

critical integration

•

Exploit & leverage

technology for mission

advantage

•

Build on IT, analytics and

engineering capabilities

•

Bring science &

technology solutions

Engineering ($80B)

•

What Makes Us Distinctive: Rich Markets

Leveraging Technical Capabilities and Innovate Across Markets

One company in three opportunity rich markets of global importance

Drive leading C4ISR

solutions in challenging

mission environments

across all operational

regimes

Improve access and quality

of healthcare by driving

digitization, interoperability

and personalized medicine

Expand commercially and

internationally to meet

global infrastructure and

natural resource needs

What Makes Us Distinctive: Competitive Levers

Leidos’

3 Competitive Levers are Unique, Complete, and Proven

Deep

Customer

Domain

Knowledge

Deep scientific,

technology, and

subject matter

expertise

Complex

data and

analytic

insight

Relevant

customer

operational

expertise

Community

thought

leadership

People,

Process,

and Tools

Highly educated

workforce

ISO, CMMI

certifications

Physics-based

modeling and

simulation

Scalable

Capabilities

Applied

research and

development

Pilot

engagements

and system

prototypes

Component,

systems, and

subsystems

Agile, quick

reaction/

delivery

solutions

3 Key Levers

The Leidos Performance Value Chain

What Makes Us Distinctive: Solutions That Work

Our Strategy Gives Us a Roadmap for Meeting Our Objectives

People, Processes,

and Tools

Deep Customer

Domain Knowledge

Agile development

processes

Repeatable processes

Reliable integrators

Physics-based modeling

and simulation

Science and technology

heritage

Practical operational

knowledge

Embedded with our

customer

community

Critical to mission

success

Respected community

thought leadership

Concept to creation

Information-enabled

engineering

Advanced data

analytics

Full range of

CyberSecurity

Appropriate solutions

Scalable

Capabilities

One company with Three Unique Levers

What Makes Us Distinctive: Information-Driven

Capabilities

Achieving technology leverage

–

Market

pull

enabled

technology

Provides channel access to customers

–

Technology

push

informed

the

market

Retains the imperative of innovation

Opportunity to scale

–

Diverse markets share common technical challenges

Health market drowning in data and need to offset demanding regulatory

challenges

Future of a highly-interconnected infrastructure (energy sensors)

–

Additional investments key capabilities

Enterprise Strategy, Focused Leadership, and Repeatable Solutions

Leidos Investment Thesis

Compelling vision and performance objectives

Balanced financial strategy

Repeatable operating model

Aggressive portfolio management

Common core of information-driven capabilities

Proximity and criticality to operators & customers

Continually optimized cost structure

What You Should Expect From Us: Performance

Maintain discipline

–

Laser-focused on core markets

–

Controlled adjacencies

Expanding commercial

portfolio

Technology sharing

–

Increased, shared investment

Economic profit improvement

–

Quality revenues

–

Educated workforce

–

Higher margin expectations

We Will Drive Profit Growth While Earning a Competitive Return on Capital

Perform on current contracts

–

Early contract reviews

–

Integrated early warning system

Divestitures and monetization

–

Portfolio shaping

Better return of capital

to shareholders

Continuous attention to cost

efficiencies

–

Improved business ecosystems

National Security

Engineering

Health

Cybersecurity

National Security—

Lou Von Thaer

SECTOR PRESIDENT

~$4B in revenues

NSS capabilities aligned to address our Nation’s vast Intelligence &

Defense requirements

Intelligence collection, analysis and exploitation of data expertise are

indispensable in today’s world

–

Comprises 80% of NSS revenues

New multibillion dollar OCI-deconflicted markets available to pursue

Forty-four year track record of winning competitively and executing

Highly regarded industry reputation

–

Adept at rapidly developing and producing cost-effective solutions

National Security Sector -

Positioned for

Success

Leidos

Information

Enabled

Solutions

Market Shift Plays to Leidos’

Advantage

CONVERGENCE

In the future, those that control the

information will control greater

portions of the budget

PHYSICAL REALM

DIGITAL REALM

OPERATIONAL REALM

Disclosed US Government Intelligence Budget

Intelligence Spending

CURRENT DOLLARS $B

Key contributors to U.S. intelligence for four decades

Sources:

DNI

disclosure

National

Intelligence

Budget

DoD

Green

Book;

USD

not

adjusted

for

inflation.

80%

of our current revenue

National Security

Sector Revenue

2006

2007

2008

2009

2010

2011

2012

2013

MIP Budget

NIP Budget

$10

$20

$30

$40

$50

$60

$70

$80

$90

80%

INTELLIGENCE

15%

DEFENSE

DHS &

COMMERCIAL

Expanding Growth Into Defense Market

Reagan Era

Vietnam Era

Iraq/Afghanistan

Source: DoD Green Book, USD not adjusted for inflation

Long-term growing market

DoD Spending

CURRENT DOLLARS $B

War Funding

Current Year

$100

$200

$300

$400

$500

$600

$700

$800

Addressable market increases dramatically upon separation

Significant opportunity space in long term Defense budgets

National Security Sector Unconstrained

Markets

$37B

AIR FORCE

NAVY

ARMY

SOCOM & UNIFIED

COMMANDS

$10

$20

$30

$40

National Security

Maritime

Systems

Space

Systems

Airborne

Systems

Ground

Systems

Readiness &

Sustainment

Cybersecurity

Intelligence Analysis &

Production

Intelligence

Systems

Critical Mission Support in all Operational Domains:

Air, Land, Sea, Space and Cyberspace

National Security at a Glance

13,500

PROFESSIONALS

10,500

WITH SECURITY CLEARANCES

Broad technology,

development and

integration capabilities

CONTRIBUTE TO OUR CUSTOMER MISSIONS…

OUR CORE RESOURCES…

DHS AND COMMERCIAL

15%

DEFENSE

80%

INTELLIGENCE

National Security at a Glance

Increase of $37 Billion in Addressable Market

BUSINESS

SEGMENT

REVENUE

PERCENTAGE

ADDRESSABLE

MARKET

Technology

25%

$47B

Intelligence

60%

$23B

Cybersecurity

15%

$24B

$94B

Diversified contract base

Top 10 contracts < 25%

of total revenues

9 of Top 10 contracts in

stable intelligence market

National Security at a Glance

FY14 Top Contracts

PROGRAM

REVENUE

BUSINESS

SEGMENT

Classified

$154M

Intelligence

Saturn Arch

$140M

Technology

GGI

$102M

Intelligence

MRAP JLI

$ 99M

Intelligence

Classified

$ 97M

Cyber

Classified

$ 86M

Cyber

Classified

$ 85M

Cyber

Buckeye

$ 79M

Technology

Blue Devil

$ 72M

Technology

Joint Intel Ops Center

$ 70M

Intelligence

27%

Fixed

Price

Proximity to operators & deep domain expertise

Capabilities address emerging market needs

Rapidly deploy cost-effective technical solutions

Advanced analytics to solve complex information

problems

Cybersecurity to defend critical missions and systems

Well positioned in market for revenue & profit growth

Market leader with prime contracts

Broad and established base

Positioned for OCI deconflicted defense market

Streamlined infrastructure with costs reduced 15%

Prolific business development engine

60% increase in proposal submissions

$7B of bids pending award

•

Additional $7B of IDIQ bids submitted

Competitive

win

rate

(50

–

65%)

History as a Fierce Competitor

88%

PRIME

82%

Base Funding

61%

Cost Plus

12%

T&M

27%

Fixed

Price

88%

PRIME

12%

SUB

82%

Base Funding

18%

OCO

Horizontally Integrated

Solutions into New

Markets

Leidos National Security Strategy

Consistent,

Reliable,

Secure

Technology

and

Information

Globally

for

all

Customers

Technology

Intelligence

Cybersecurity

Intelligence

Defense

Homeland Security

Healthcare

Engineering

Utilities

BUSINESS SEGMENTS

DELIVERY FOCUS

MARKETS

Quick to Market

Tailored to Need

Predictive Analytics

Full Life Cycle Support

Affordable

Global Operations

Technology Business Segment

Technology-driven end-to-end integrated solutions operating in the air, land, sea & space

Advanced Technology Solutions to Differentiate Leidos Offerings

R&D in air, sea, ground & space

Autonomous and distributed solutions

Modeling, simulation and training

Wide range of technical solutions

First full-spectrum ISR in theater

Leading Navy’s diesel submarine tracking

prototype

Developing one of two high-speed

prototype crafts for USSOCOM

Transitioning to new markets

Unmanned, autonomous naval systems

Advanced electronic warfare

Border Security missions

Classified next generation sensors

Saturn Arch

Buckeye

Desert Owl

Blue Devil ISR

Target Recognition

Tactical Sonar

Naval Warfare Engineering

MOJAVE

ACTUV

Integrated WMD

Targeting & Intelligence Support

CAPABILITIES

PRIMARY CUSTOMERS

Research organizations across DoD

Success Story: Distributed Airborne Information

Solutions

Deployed technologies on Blue Devil, Buckeye, Desert Owl, Radiant Falcon, Saturn Arch

Catching Bad Guys and Protecting our Troops

Mission Needs

Customer needed to integrate sensor operations to identify and address threats

Leidos Response

Leidos combined our expertise, experience, and technologies to develop solutions quickly to

match the need

Idea to deployment in less than10 months

Result

Delivered

rapid

persistent,

multisource,

integrated

intelligence

capability

Identified multiple high-value targets

Protected U.S. and coalition troops operating in high-threat areas

Day & Night

3-D Geospatial

Multiple Sources

Full Motion Video

Wide Area Imagery

Technology Business Segment

Expanding market for Navy autonomous solutions to address expanding threats

Navy developing solution to counter diesel submarines

Leidos ability to meet Navy’s need

Leading

prototype

design

track

diesel

electric

submarines

for

months

fraction

their

size

and

cost

Leveraging integration capabilities in ocean modeling, systems engineering and integration, and software

development

Enabled by experience in design and build of maritime sensors, communications systems, autonomous

controls, and propulsion systems

Positions Leidos for expanded Navy business over the coming decade

Growth Opportunity: Naval Autonomous Technology

Design and integrate unmanned, autonomous solutions for intelligence and defense needs

Advanced Platform Development to Meet Demanding New Mission Needs

ACTUV: Anti-Submarine

Warfare (ASW) Continuous

Trail Unmanned Vessel

130

FEET LONG

FEET WIDE

TONS

Technology Business Segment

Growing market for multiple mission autonomous systems

Navy

developing

affordable,

versatile

systems

for

deploying

and

retrieving

equipment

Leidos ability to meet Navy’s need

Leveraging ACTUV prototype design experience

Knowledge in underwater operations, propulsion, and controls

Broad experience in intelligence, surveillance, and reconnaissance

Expanding Leidos offering for next-generation Navy systems

Growth Opportunity: Naval Autonomous Technology

Design and integrate unmanned, autonomous solutions for intelligence and defense needs

Leveraging

Technology

and

Experience

into

Affordable

Future

Navy

Workhorse

FEET LONG

FOOT DIAMETER

TONS

UUV:

Unmanned

Underwater

Vehicle

Technology Business Segment

Intelligence Business Segment

Building wide range of information processing systems solving toughest challenges today

Delivering “Glue-ware”

to Create Integrated Systems for Decision Makers

PRIMARY CUSTOMERS

System Engineering & Integration

Delivering across Intelligence & Defense

Pursuing adjacent markets in Defense

Classified

Intelligence Communications

Army Military Intel Enterprise

Joint Intelligence Ops Center

Geospatial Production

iSTORE Content Management

MRAP JLI

Distributed Common Ground

System

GPS System Engineering

TACAN Replacement

CAPABILITIES

Advanced analytics

Software development

Intelligence analysis & operations

Integrated logistics solutions

Top geospatial products producer for IC

Leading NSA & Army data analytics

First Intel & Defense Cloud architectures

Bid Data & Cloud solutions

Integrated intelligence systems

Infrastructure protection

Modernization, readiness & sustainment

Mission Need

Intelligence community must review massive amounts of data to make accurate decisions

Leidos Response

Leidos leveraged our domain knowledge, data analytics and software development

capabilities to deliver the leading data analytics platform

Result

Leidos solution “transformed tactical intelligence”

Leidos implemented a 40x improvement in throughput following year

“The most significant SIGINT system in aiding the Warfighter in the past 10 years”

In 2013, Leidos developed a commercial platform operating at a 200x improvement

Success Story: Big Data Analytic Solution

Leverage leading data analytics successes in Intelligence into broader markets

ENERGY

HEALTH

DEFENSE

DHS

CRITICAL INSIGHT

Intelligence Data

Analytics Tools

Commercial Data

Analytics Tool

Intelligence Business Segment

DHS seeking low-risk near-term

solution for U.S. border security

–

Failed Secure Border Initiative program

delayed border security implementation

–

Seeking proven system to detect and

track items of interest along nation's

borders

Leidos ability to meet DHS’

need

–

Leverage security and force protection

–

Integrated solution with proven systems

and operations experience

–

Automated solution flexible and easy to

operate

–

Positioned for growth in U.S. and global

markets

Growth Opportunity: Border Security

Surveillance

Rapid solution deployment for high confidence border security

Proven, affordable and flexible solutions for border security

Intelligence Business Segment

Cybersecurity Business Segment

Delivering over $700M of Cybersecurity to the Intelligence Community to constantly defend critical

infrastructure against the most sophisticated adversaries

Leveraging Cyber leadership in Intelligence to address increasing commercial demands

Leading Cyber Provider in Intelligence

Community

Computer Defense, Exploitation, & Ops

Predictive Cyber analytics

Largest forensics malware in IC

Large-scale systems design and integration

Delivering Broad Cyber Solutions

Cryptographic algorithms, key management

Cyber software development

Navy 2013 Tech Award: Cyber Domain Services

Expanding Cyber beyond Intelligence

Community

Federal Government

Classified (Multiple)

Key Management

U.S. National Data Center

Key Management

Commercial & Critical

Infrastructure

Health

Critical Infrastructure

Commercial Providers

CAPABILITIES

PRIMARY CUSTOMERS

Mission Needs

Intelligence community faced with constant, sophisticated cyber attacks

Leidos Response

Developed solution to identify and defend against new cyber threats

Delivers software to defend against new attacks, and protect networks across IC

Result

Enterprisewide protection from new and emerging cyber threats

Well positioned to leverage capabilities across defense and commercial markets

Success

Story: Cyber Signature Management

Delivering cyber signatures to protect critical Intelligence Community infrastructure

Cybersecurity Business Segment

DHS and commercial companies seeking secure network solutions

Cyber threats continue to expand in numbers and sophistication

Need for reliable cyber protection expanding

Leidos has the ability to meet emerging needs

Deliver differentiated solutions to protect networks and information

Provide cybersecurity defense and incident response

Highest margins, fastest growing market

Solutions in development

Growth Opportunity: Cyber Threat Operations

Using

intelligence-based

capabilities,

deliver

cybersecurity

protect

federal

and

commercial

entities

Cybersecurity Business Segment

Competition

Intelligence & Security

Information Systems

& Technology

Information Systems &

Global Solutions

National Security

Solutions

Intelligence, Information

& Services

Information Systems

Defense, Space & Security

SERVICES

Mission, Cyber &

Intelligence Solutions

SYSTEM INTEGRATORS & SOLUTIONS

NSS brings a 44 year history of performance in good markets and bad

–

Leidos design drives horizontal technology collaboration in expanded markets

–

Continual focus on streamlined operations at reduced cost

–

Expanded focus on increasing earnings to drive shareholder value

Continued need for intelligence and market shift plays to Leidos’

advantage

Nimble and affordable

Uniquely positioned to compete

Summary

Leidos –

Missions that Matter

Health & Engineering—

Joe Craver

SECTOR PRESIDENT

Long-term market presence with solution and service delivery at scale

Applied solutions focused on large, receptive commercial markets

Core capability leverage with broad impact across multiple market

segments

Health & Engineering Sector

Healthcare

Engineering

~$2B Revenues

Commercial

Federal

63%

37%

43%

57%

Leidos Health

Material presence and scale in more than $35B healthcare IT market

Market drivers and business imperatives creating need for health

organizations to seek applied solutions

Extensive

client

list,

reputation

for

quality

and

partnered

with

all

the

industry leading software vendors

Uniquely positioned with expertise in IT, clinical transformation,

behavioral health, life sciences and data analytics

Positioned to grow in both Commercial and Federal markets

Leidos

Health

–

Positioned

for

Long-Term

Success

Hardware

Telecom

Software

Internal

Services

International Health IT market is more than $90B

Total addressable market is much bigger than just Health IT

U.S. Healthcare Provider IT Market

Source: Gartner Enterprise IT spending by verticals forecast, 2013Q1

CAGR

’11–’13F

CAGR

’13F–’17F

2011

2012

2013

2014F

2015F

2016F

2017F

Leidos Health in the Marketplace

Modern Healthcare's

2013 Management

Consulting Firms

Engaged by

18 of 25

largest Academic

Medical Centers as

listed by Modern

Healthcare 2012

Worked with

15 of 18

U.S. News and

World Report’s

2012-13 Best

Hospitals Honor Roll

KLAS Ranking of Overall

Health Services Firms

#18

Healthcare

Informatics Top 100

Major Shift as Healthcare Becomes More Data-Enabled…

A New Era in Healthcare Is Emerging…

Leidos’

Analytical Capabilities and Domain Knowledge

Allow Us To Excel In Data-Enabled Environments

Tomorrow

Today

Digitization

Integration and

Interoperability

Data

Leverage

Precision Medicine

& Personalization

Health Solutions

Electronic Health Record

System Implementation

& Optimization

Health

Information

Security

Behavioral Health

Research &

Outreach

Biomedical

Data

Integration &

Warehousing

Health IT Framework

& Information

Exchange

Advanced

Data

Analytics &

Visualization

Biomedical

Research &

Development

Public Health

Surveillance

& Outreach

From the Research Bench to the Patient Bedside

EHR implementation

Optimization

Information integration

IT services

Application development and

maintenance

Ongoing system support

Legacy system support

Strategic IT planning

Meaningful use

Clinical transformation

ICD-10

Revenue cycle management

Data analytics; cybersecurity

Behavioral health

Public health

Life sciences

Health research

What We Do

45%

15%

10%

Leidos Health

5-Year

Growth

Trajectory

5–10%

3–6%

10%+

Percent of

Leidos Health

Business

30%

3–6%

EHR Consulting

(Digitization)

Systems Integration

(Integration and Interoperability)

Strategic Services and Solutions

(Data Leverage)

Health Research and Life Sciences

(Precision Medicine and Personalization)

Capabilities

Leidos Health Clients

Helping Drive the Transformation Towards Value-Based Healthcare

Federal Health Clients

Commercial Clients

EHR Consulting

Digitization

EHR Consulting

Majority of Institutions Have Underdeveloped EHR Capabilities

Data from HIMSS Analytics Database Q1 2013

Digitization

Only

27%

hospitals have

reached Healthcare

Information and

Management Systems

Stage 5 or higher

Developed & support the U.S. military AHLTA/CHCS

system, the largest EHR system ever implemented

Systems Integration

Integration and Interoperability

Provided health IT & systems integration

support in connecting Inland Northwest

Health Services (INHS), one of the nation’s

first health information exchanges, to public

health entities and applications

Supported a major Canadian provincial health system in the

creation and development of a health information network to

link healthcare providers province wide

Links nearly 300 healthcare facilities in 126 communities &

380 pharmacies connecting approximately 19,000

healthcare professionals

Nearly 10 million beneficiaries

50 treatment facilities & 360 clinics

VA/DoD EHR Integration Opportunity

Servicing over 18 million patients in both VA / MHS

Total program cost: ~ $5 -

$20 billion

High Congressional visibility creating pressure for action

Possible Scenarios:

Expansion of existing sharing platforms

Adoption of existing systems by differing agency

Integration and deployment of new EHR systems (COTS)

Systems Integration

Integration and Interoperability

Strategic Services and Solutions

True Value of Digitization is Unlocked Through Data Leverage

STRATEGIC

ADVISORY

SERVICES

VALUE-BASED

OUTCOMES

IT Strategy &

Program

Management

Cyber

Security

ICD-10

Transformation

Advanced Data

Analytics

Clinical

Transformation

Revenue Cycle

Optimization

Meaningful Use

(MU)

Data Leverage

…

directed the full implementation of clinical

and revenue cycle applications at 27 hospitals

and clinics for one of the top academic

medical centers in the country …

Revenue cycle transformation…

…

for one of the largest public hospitals

(Grady Health System) in the United States …

Advanced

Analytics…

social network analytics solutions to

support product introduction

decisions internationally for one of

the largest pharmaceutical

companies in the country …

Strategic Services and Solutions

Data Leverage

deployed

Leidos has over 25 years of combined programmatic experience providing solutions that enhance

health,

resilience,

readiness,

and

performance

through

research,

education,

training

and

counseling in areas such as:

Performance Enhancement:

Prediction of Unplanned Loss

Team Resilience

Traumatic Brain Injury

Rehabilitation

Career-Span Health

& Wellness

Operational Stress:

Post Traumatic Stress Disorder (PTSD)

Insomnia

Suicide Prevention

Depression

Re-Integration

Behavioral Sciences:

Adolescent Substance Abuse Counseling & Prevention

Substance Use & Abuse

Sexual Assault & Harassment

Family & Workplace Violence

Prevention of Sexually

Transmitted Disease (STDs)

Leidos

researchers

conduct

over

individual

research

studies

annually

and

have

supported

over

500 research projects in the last 5 years in the areas of health, resilience, and readiness

Human subject studies range from 100-2,000 and large database driven research studies are in

excess of 5 million records

Health Research & Life Sciences

Precision Medicine

and Personalization

Research and Life Sciences:

Leidos Biomedical Research

Frederick National Laboratory for Cancer Research

Advanced Technology Research Facility

Opened June 2012

Genetics

and

genomics

Proteins and

proteomics

Imaging and

nanotechnology

Advanced

biomedical

computing

Translational

Research

Precision Medicine

and Personalization

Competitive Landscape

Commercial Health

Federal Health

Leidos Health Competitive Advantage

Life

Sciences

Clinical

SME

Health IT

Advanced

Data

Analytics

Behavioral

Health &

Wellness

Health IT

Clinical

SME

Life

Sciences

ADVANCED

DATA

ANALYTICS

BEHAVIORAL

HEALTH &

WELLNESS

Leidos Engineering

Consistently meets deadlines, budget and delivers on commitments

Uses systems approach to integrate engineering, technology, IT and consulting to

address emerging challenges

Has capabilities to bring clarity and insight to large data

Leidos Engineering

…

Customer

Survey

over

800

Industry

Decision

Makers

Revealed

the

Following Top 3 Priorities…

Market Drivers

Leidos Engineering Approach is Our Advantage

Combining Horizontal Capability & Applying to Industry Sectors

Addressing Market Interdependence Through Horizontal Leverage

Tomorrow

Today

Foundational

Differentiating

Disruptive

Architecture

Engineering

Environmental

DesignBuild

Systems Engineering

Systems Integration

Program Management

Financial Advisory

Technology Assessment

Energy Modeling

Energy Management

Information Technologies

Sensor Integration

Physical Controls

System Automation

Business Modeling

Data Analytics

Engineering Solutions

Secure

Commerce

Business and

Financial Advisory

Water and

Waste

Energy

Management

& Efficiency

Environmental

Services

Oil, Gas and

Chemicals

Renewable

Energy

Power

Delivery

and Smart

Grid

Bringing Engineering and Technology Together in Critical Markets

Industry Rankings and Awards

TOP NATIONAL RANKINGS

Business

Information

Modeling

(BIM)

Engineering

Firms

Building

Design+

Constr.,

July

2013

Transmission

Distribution

ENR,

July

2013

Environmental

Management

ENR,

2013

Top

Program

Management

ENR,

June

2013

Top

Engineering/Architecture

Firms

BD+C,

July

2013

Top

Power

ENR,

July

2013

Top

500

Design

ENR,

April

2013

OTHER SELECT RANKINGS

Wind

Power

ENR,

July

2013

Auto

Plants

Engineering

Firms

ENR,

July

2013

Top

Data

Center

Engineering

Firms

ENR,

July

2013

Top

100

Design-Build

ENR,

June

2013

What We Do

Percentage of Leidos

Engineering Business

Leidos Engineering 5 Year

Growth Trajectory

Capabilities

Power

Oil and Gas

Commercial and Industrial

Infrastructure

25%

10%

25%

40%

Consulting

Enterprise IT

Energy efficiency

T&D and smart grid

Renewable integration

Shale gas

Asset management

Remediation

Design and engineering

DesignBuild

Architect and engineering

Energy efficiency

Advanced communications

systems

Environmental support

Water resource management

Civil engineering

Financial transactions

Secure commerce products

5-8%

8-10%

3-6%

Leidos Engineering Capabilities Delivered to Markets

Scale and Experience in Markets that Matter

Leidos Engineering Clients

…

and Other Fortune 100 Companies

Secure Commerce

Clients Include: CBP, TSA, DoD, DOS, Mexico, Middle East

Prepared

reports

nearly

1,000

power,

infrastructure

and

industrial

projects in 75 countries and territories

Independent

engineering

than

1,000

energy

projects,

nearing $200 billion in completed transactions

Active in independent engineering and owner’s advisory since 1978

Reviewed nearly 500

renewable energy and 150 biofuel projects

across 6 continents, with energy capacity in excess of 33,000

megawatts

over the last 2 years alone

Evaluated over 300 major technologies

Leidos Engineering

Lenders

Developers

–

Consulting

Engineering

7 RECENT DEAL OF

THE

YEAR AWARDS

Project Finance

Magazine

Competitive Landscape

Large Engineering

Specialized Engineering

Impact of Leidos Health & Engineering

NASA One-of-a-Kind Vibro-

Acoustic Research Facility

DesignBuild

Responsible Shale

Exploration Support

San Diego County Airport

Design, Engineering, Installation,

Testing, and Commissioning

Data Analytics

Oklahoma Cancer Research Center

Financial Overview—

Mark Sopp

CHIEF FINANCIAL OFFICER

Leidos Value Creation Roadmap

Proven Business Model –

On a New Path to Drive Shareholder Value

Profit-Focused Revenues

Year-over-year Operating Income Growth

Strong Cash Generation

Capital Allocation Effectiveness

Quality revenues; profit focus

Stay within our wheelhouse; shape portfolio

Capitalize on OCI and commercial opportunities

Greater Leidos content, integrated technology

Complete transition year costs/charges

Full-year benefit of FY14 cost reductions; ongoing

Underperforming business areas removed

Reduce cost of delivery (procurement,

subcontracting)

Profitability Actions

Geared for More Predictable and Low Capital-Intensive Profit Streams

Focus on

Profitable

Growth

Deliver

Expanded

Margins

Strong Cash Flow

Strong and Improving Capital Efficiency

Strong

Cash

Flow

No Factories

Insignificant

Pension

Variable Cost

Structure

Human

Capital

Based

Cash & Credit Statistics

Meaningful Near-Term Cash Deployment Opportunity

No debt maturities till 12/2020

Total Debt = $1,293M

Avg. Debt Rate 5.6%

Anticipate maintaining

investment grade rating

Cash at Spin

~$450M

Dividend from NSAIC

$295M

Est’d Beg. Cash

~$745M

Est’d End FY14

~$950M

CASH

DEBT

Capital Deployment

$350M Projected FCF

/Year; >$2.5B deployable next 5 years

~1/3

Maintain/Increase

Regular Dividends

>1/3

Buybacks

Special Dividends

Selective M&A

*FCF = Free Cash Flow; Derived from projected Operating Cash Flow minus projected Capital Expenditures

$0.95B

$2.6B

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

YE FY14

FY15

FY16

FY17

FY18

YE FY19

•

Established Businesses

•

Strengthens our 3 Markets

Recent Results & Outlook

Pro Forma (PF) Financials

Consolidated + segments; Oct ‘13

Leidos PF includes:

–

CityTime settlement

–

>100bps stranded costs

–

Significant special charges FY12-14

Adjusted Non-GAAP Op Income

Discrete items adjusted

Provides additional insight into core

operating performance

Reflects stranded corporate costs

and does not reflect cost savings

program

Leidos Historical Performance

$'s in millions

FY12

FY13

H1 FY14

Leidos Pro Forma Revenue

5,860

6,471

3,065

SAIC as Reported Operating Income

300

741

219

New SAIC

(343)

(288)

(105)

Stranded Corporate Costs

(66)

(70)

(41)

Separation Costs

Leidos Pro Forma Operating Income

(109)

393

128

Pro Forma Operating Income %

-1.9%

6.1%

4.2%

Non-GAAP Adjustments:

CityTime

540

Significant EAC Adjustments

Intangible Impairments

Regulatory and Legal Settlements

Adj. Non-GAAP Operating Income

472

425

214

Adj. Non-GAAP Operating Income %*

7.5%

6.6%

6.9%

* Operating Income % appropriately adjusted for CityTime and EAC revenue impacts

See Appendix for description of pro forma non-GAAP adjustments

$368

$334

$153

$100

$200

$300

$400

$500

FY12

FY13

FY14 1H

Adjusted Non-GAAP Operating Income

($M)

7.2%

$4,631

$4,646

$2,116

$1,000

$2,000

$3,000

$4,000

$5,000

FY12

FY13

FY14 1H

Adjusted Non-GAAP Revenue ($M)

Revenue

1HFY14 down due to JLI and Federal

spending cuts

Adjusted Non-GAAP Operating Income

Reflects stranded corporate costs;

does not reflect cost savings program

Adds back Impairments and EAC

adjustments for one program

National Security Segment Financials

7.9%

See Non-GAAP reconciliation in the Appendix

Revenue

Revenue; growth from acquisitions;

1HFY14 internal revenues flat

Adjusted Non-GAAP Operating Income

Reflects stranded corporate costs; does

not reflect cost savings

Adds back impairments and EAC

adjustments for one program

Health & Engineering Segment Financials

8.6%

See Non-GAAP reconciliation in the Appendix

$1,622

$1,831

$972

$500

$1,000

$1,500

$2,000

FY12

FY13

FY14 1H

Adjusted Non-GAAP Revenue ($M)

$139

$140

$79

$100

FY12

FY13

FY14 1H

Adjusted Non-GAAP Operating

Income ($M)

7.6%

8.1%

Consistent with SAIC Inc. guidance issued Sept 4, 2013, except:

–

Separation now assumed; triggers Stranded Corporate Costs ~$60M

($.12 EPS)

–

Legal expenses previously reported as part of TSIT~$10M ($.02)

–

EPS, provided on a pre-split and post-split basis

Leidos FY 14 Guidance

Revenues (billions)

5.85

6.10

EPS Continuing Operations, pre-stock split

0.45

0.51

EPS Continuing Operations, split adjusted 1:4

1.80

2.04

Operating Cash Flows (millions)

$325 +

FY15 Margin Improvement Outlook

Major Levers:

Full year benefit of $200M+

cost reductions

Ongoing streamlining; lower

wrap rates

NSS removal of non-core

under-performing business

areas

Restoring normative

commercial health margins

HES focus on higher fee

consulting engineering projects

Profit-focused incentives and

accountability

Focused on Bottom Line in Difficult Top-Line Environment

FY14 1H Adjusted Non-GAAP Operating Income

6.9%

FY14/15 cost savings program

1.0% -

1.5%

HE Sector profit improvements

0.7% -

1.25%

Anticipated portfolio changes

0.1% -

0.2%

Targeted FY15 Operating Margin

8.0%

Playing to our Strengths:

Leidos FY15 to FY17 Targets

Targeted EPS* Growth/Yr. 10.0%+

Targeted Annual

Operating Margin

8.0%+

Targeted Organic Growth:

FY15

+/-

low single digit

FY16-17

+ low single digit

Targeted Operating

Cash Flow/Yr.

$400M+

* GAAP EPS from Continuing Operations

Profit-focused

Lower cost structure

Strong Cash Flow

Attractive Regular

Dividend (~1/3 FCF)

Targeting > 1/3 FCF

buybacks/special

dividends

Attractive, large, enduring, increasingly integrated markets

Streamlining, separation, and portfolio moves prep for clean FY15+

Profit growth and capital effectiveness focus

Deployment opportunity > $2.5B over the next 5 years

–

>2/3 FCF targeted for dividends and buybacks

–

Select, established M&A to build our three markets

–

Systematically deploy excess cash

Summary

Repositioned with Focus on Driving Profit Growth and Returning Cash to Shareholders

Appendix

100

The unaudited pro forma consolidated financial information included in this presentation was derived from the Company’s

historical consolidated financial statements and is being presented to show the effect of the proposed spin-off of New SAIC.

The unaudited pro forma consolidated financial information should be read in conjunction with the historical financial

statements and accompanying notes. The unaudited pro forma consolidated financial information is presented for the six

months

ended

August

2013

and

the

years

ended

January

31,

2013

and

2012

and

assumes

the

separation

occurred

February 1, 2011.

The pro forma adjustments are based on the best information available and assumptions that management believes are

reasonable, that reflect the impacts of events directly attributable to the proposed spin-off, and that are factually

supportable. The pro forma adjustments may differ from those that will be calculated to report New SAIC as discontinued

operations in Leidos’

future filings. The unaudited pro forma consolidated financial information is provided for illustrative

and

informational

purposes

only

and

not

intended

represent

indicative

what

Leidos’

results

operations

financial position would have been had the separation occurred on the dates indicated. The unaudited pro forma

consolidated

financial

information

also

should

not

considered

representative

Leidos’

future

results

operations

financial position.

The pro forma adjustments represent the following:

–

Removal of the results of operations for the Technical Services and Information Technology segment that

comprises New SAIC.

–

Removal

non-recurring

transaction

and

infrastructure

setup

costs

incurred

the

Company

connection

with

the proposed spin-off of New SAIC.

–

Addition of certain general corporate overhead expenses (stranded costs) that were not specifically related to

New SAIC and do not meet the requirements to be presented as a component of discontinued operations.

Unaudited Pro Forma Consolidated Financial

Information

101

This presentation includes the financial measures Adjusted Non-GAAP Revenue, Adjusted Non-GAAP

Operating Income, and Free Cash Flow, all of which are defined as non-GAAP financial measures by the

Securities and Exchange Commission (SEC). These measures may be different than similarly-titled non-

GAAP financial measures used by other companies. The presentation of this financial information is not

intended to be considered in isolation or as a substitute for the financial information prepared and

presented in accordance with generally accepted accounting principles (GAAP). Explanations of our non-

GAAP financial measures are as follows:

Adjusted

Non-GAAP

Revenue

non-GAAP

financial

measure

that

reconciled

the

most

directly

comparable GAAP financial measure, Revenue. Adjusted Non-GAAP Revenue adjusts Revenue for the

following discrete events:

CityTime

–

This

adjustment

represents

legal

settlement

timekeeping

contract

with the City of New York.

Significant

EAC

Adjustments

–

This

adjustment

represents

write-downs

for

two

discrete

contracts during the periods presented that were unusual in nature and in amount.

The Company uses non-GAAP financial measure to provide investors with visibility to how the company

performed without these discrete events.

Non-GAAP Reconciliations

102

Adjusted

Non-GAAP

Operating

Income

non-GAAP

financial

measure

that

reconciled

the most

directly comparable GAAP financial measure, Operating Income. Adjusted Non-GAAP Operating Income

adjusts Operating Income for the following discrete events:

CityTime

–

This

adjustment

represents

legal

settlement

timekeeping

contract

with the City of New York.

Intangible

Impairments

–

This

adjustment

represents

impairments

long-lived

assets

due

changes

actual

performance

against

performance

projected

when

the

long

lived

assets were

acquired.

Significant

EAC

Adjustments

–

This

adjustment

represents

write-downs

for

two

discrete

contracts during the periods presented that were unusual in nature and in amount.

Regulatory

and

Legal

Settlements

–

This

adjustment

represents

settlements

for

discrete

regulatory and legal matters.

The Company uses non-GAAP financial measure to provide investors with visibility to how the company

performed without these discrete events.

Non-GAAP Reconciliations

(Continued)

103

Non-GAAP Reconciliations –

Adjusted Non-

GAAP Revenue and Operating Income

Note: The “as reported”

amounts above and throughout this presentation have been recasted to give effect to

reorganizations and discontinued operations

Non-GAAP Adjusted Operating Income Reconciliation by Sector

FY12

FY13

FY14

HE Seg

NSS Seg

TSIT

Corp Seg

Total

HE Seg

NSS Seg

TSIT

Corp Seg

Total

HE Seg

NSS Seg

TSIT

Corp Seg

Total

SAIC as Reported Revenue

1,622

4,631

4,238

(2)

10,489

1,831

4,646

4,693

(5)

11,165

972

2,101

2,116

(8)

5,181

SAIC Gemini, Inc.

(4,238)

(4,693)

(2,116)

CityTime to Leidos

(391)

(1)

Leidos Pro Forma Revenue

1,622

4,631

(393)

5,860

1,831

4,646

(6)

6,471

972

2,101

(8)

3,065

Non-GAAP Adjustments:

CityTime

410

Significant EAC Adjustments

Adj Non-GAAP Revenue

1,622

4,631

6,270

1,841

4,646

(6)

6,481

988

2,116

(8)

3,096

Sector as Reported Operating Income

156

398

(199)

(55)

300

160

371

314

(104)

741

157

139

(122)

219

SAIC Gemini, Inc.

199

(314)

(286)

(139)

(105)

Stranded Corporate Costs

(17)

(49)

(66)

(20)

(50)

(70)

(13)

(28)

(41)

CityTime

(542)

(2)

Pro Forma Separation Costs

Pro Forma Operating Income

139

349

(597)

(109)

140

321

(68)

393

129

(33)

128

Pro Forma Operating Income %

8.6%

7.5%

0.0%

151.9%

-1.9%

7.6%

6.9%

0.0%

1133.3%

6.1%

3.3%

6.1%

0.0%

412.5%

4.2%

Non-GAAP Adjustments:

CityTime

540

Significant EAC Adjustments

Intangible Impairments

Regulatory and Legal Settlements

Adj. Non-GAAP Operating Income

139

368

(35)

472

150

334

(59)

425

153

(18)

214

Adj. Non-GAAP Operating Income %

8.6%

7.9%

N/A

7.5%

8.1%

7.2%

N/A

6.6%

8.0%

7.2%

N/A

6.9%

104

Free

Cash

Flow

non-GAAP

financial

measure

that

reconciled

the

most

directly

comparable

GAAP

financial

measure,

cash

flows

used

operating

activities.

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 used in operating activities.

Non-GAAP Reconciliations –

Free Cash Flow

($ in millions)

FY15-FY19

Projected average annual operating cash flow

400

Projected average annual expenditures for property, plant and equipment

(50)

Free cash flow

350