Do D Taking the Pentagon to the People

Do. D Taking the Pentagon to the People February 27, 2014 Presenter: John Rivenburgh

Our Vision – A New Perspective for You Our Transformation 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 Customers 2 © 2014 LEIDOS. ALL RIGHTS RESERVED.

What Has Changed… © 2014 LEIDOS. ALL RIGHTS RESERVED.

Why Leidos Matters: Convergence of Megatrends Increasingly Complex, Data Rich Environments National Security Threats Affordable Clean Healthcare Energy Increasingly Impactful Cybersecurity Threats Global Pandemics Protected Environment Cyber Threats Clean Water Border Protection Preserve Natural Aging Critical Resources Infrastructure Increasingly Challenging Economics, Geopolitics, and Urbanization Giving Rise to Opportunities in Enduring Markets That Matter 4 © 2014 LEIDOS. ALL RIGHTS RESERVED. Increasingly Global, Interconnected Markets

5 © 2014 LEIDOS. ALL RIGHTS RESERVED.

Who We Are National Security Sector National Security ~$4 B revenue 13, 500 employees with >10, 500 possessing Do. D, TS/SCI, SAP/SAR, and Do. E security clearances 99% government, <1% commercial Critical mission support for intelligence community C 4 ISR R&D and solutions for Do. D Industry-leading cybersecurity capabilities Health 68% 14% Engineering 17% FY 2014 revenues: ~$6 B Health & Engineering Sector ~$2 B 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 Solutions That Secure Our Future and Our Way of Life 6 © 2014 LEIDOS. ALL RIGHTS RESERVED.

Our Key Leaders JOHN JUMPER STU SHEA MARK SOPP Chairman and Chief Executive Officer President and Chief Operating Officer Chief Financial Officer LOU VON THAER JOHN JUMPER JOHN THOMAS President, National Security Sector President, Health and Engineering Sector Chief Strategic Officer SARAH ALLEN VINCE MAFFEO GULU GAMBHIR Chief Human Resource Officer General Counsel Chief Technology Officer (acting) 7 © 2014 LEIDOS. ALL RIGHTS RESERVED.

We Have the Right Team >10 years Years of Service 5 -10 years Concentration <2 years 2 -5 years Degrees Doctorate Social Science s Business, Law, Economics Sciences Engineering Veterans Masters Veterans Other Bachelors Top Operating Locations United States Washington, DC (26%) Afghanistan Baltimore, MD (16%) Kuwait San Diego, CA (6%) Germany Boston, MA (3%) Canada Orlando, FL (3%) Japan Dayton, OH (2%) Korea St. Louis, MO (2%) Australia Pensacola, FL (2%) United Kingdom Knoxville, TN (1%) Italy Oklahoma City, OK (1%) Iraq Non Veterans A Balanced, Well-Educated Workforce Capable of Creating the Right Solutions 8 International © 2014 LEIDOS. ALL RIGHTS RESERVED.

What Makes Us Distinctive: Rich Markets One company in three opportunity rich markets of global importance National Security ($94 B) Health ($43 B) Engineering ($80 B) • Drive leading C 4 ISR solutions in challenging mission environments across all operational regimes • Improve access and quality • Expand commercially and internationally to meet of healthcare by driving global infrastructure and digitization, interoperability natural resource needs and personalized medicine • Focus on agile, missioncritical integration • Evolve value-based healthcare through data analytics • Exploit & leverage technology for mission advantage • Embed cybersecurity for privacy protection • Build on IT, analytics and engineering capabilities • Bring science & technology solutions Leveraging Technical Capabilities and Innovate Across Markets 9 © 2014 LEIDOS. ALL RIGHTS RESERVED.

What Makes Us Distinctive: Competitive Levers 3 Key Levers 1 Deep Customer Domain Knowledge 2 People, Process, and Tools 3 Scalable Capabilities The Leidos Performance Value Chain Complex data and analytic insight Deep scientific, technology, and subject matter expertise Highly educated workforce Applied research and development Relevant customer operational expertise ISO, CMMI certifications Pilot engagements and system prototypes Community thought leadership Physics-based modeling and simulation Component, systems, and subsystems Leidos’ 3 Competitive Levers are Unique, Complete, and Proven 10 © 2014 LEIDOS. ALL RIGHTS RESERVED. Agile, quick reaction/ delivery solutions

What Makes Us Distinctive: Solutions That Work One company with Three Unique Levers Deep Customer 1 Domain Knowledge 2 People, Processes, and Tools ► Practical operational knowledge ► Agile development processes ► Embedded with our customer community ► Repeatable processes ► Critical to mission success ► Respected community thought leadership ► Reliable integrators ► Physics-based modeling and simulation ► Science and technology heritage 3 Scalable Capabilities ► Concept to creation ► Information-enabled engineering ► Advanced data analytics ► Full range of Cyber. Security ► Appropriate solutions Our Strategy Gives Us a Roadmap for Meeting Our Objectives 11 © 2014 LEIDOS. ALL RIGHTS RESERVED.

What Makes Us Distinctive: Information-Driven Capabilities Achieving technology leverage – Market pull is enabled by technology Provides channel access to customers – Technology push is informed by 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 12 © 2014 LEIDOS. ALL RIGHTS RESERVED.

National Security

National Security at a Glance OUR CORE RESOURCES… CONTRIBUTE TO OUR CUSTOMER MISSIONS… 13, 500 PROFESSIONALS 80% INTELLIGENCE 10, 500 15% WITH SECURITY CLEARANCES DEFENSE 5% Broad technology, development and integration capabilities 14 DHS AND COMMERCIAL © 2014 LEIDOS. ALL RIGHTS RESERVED.

Intelligence Systems Intelligence Analysis & Production Airborne Systems Cybersecurity National Security Maritime Systems Space Systems Ground Systems Readiness & Sustainment Critical Mission Support in all Operational Domains: Air, Land, Sea, Space and Cyberspace 15 © 2014 LEIDOS. ALL RIGHTS RESERVED.

Positioned to Support Our Customers ~$4 B in revenues 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 Forty-four year track record of performance Highly regarded industry reputation − Adept at rapidly developing and producing cost-effective solutions 16 © 2014 LEIDOS. ALL RIGHTS RESERVED.

Health & Engineering

Health & Engineering Sector ~$2 B Revenues 43% 37% 57% 18 63% Healthcare Commercial Engineering Federal Long-term market presence with solution and service delivery at scale Applied solutions focused on commercial markets Core capability leverage with broad impact across multiple markets © 2014 LEIDOS. ALL RIGHTS RESERVED.

Electronic Health Record System Implementation & Optimization Health IT Framework & Information Exchange Behavioral Health Research & Outreach Health Information Security Health Solutions Biomedical Data Integration & Warehousing Biomedical Research & Development Public Health Surveillance & Outreach From the Research Bench to the Patient Bedside 19 © 2014 LEIDOS. ALL RIGHTS RESERVED. Advanced Data Analytics & Visualization

Leidos Health in the Marketplace Worked with #9 15 of 18 Modern Healthcare's 2013 Management Consulting Firms U. S. News and World Report’s 2012 -13 Best Hospitals Honor Roll #4 Engaged by KLAS Ranking of Overall Health Services Firms 18 of 25 #18 largest Academic Medical Centers as listed by Modern Healthcare 2012 20 Healthcare Informatics Top 100 © 2014 LEIDOS. ALL RIGHTS RESERVED.

Water and Waste Business and Financial Advisory Power Delivery and Smart Grid Energy Management & Efficiency Engineering Solutions Renewable Energy Oil, Gas and Chemicals Environmental Services Buildings and Facilities Design. Build. SM Bringing Engineering and Technology Together in Critical Markets 21 © 2014 LEIDOS. ALL RIGHTS RESERVED.

Industry Rankings and Awards 55+ 21 7 INDUSTRY RANKINGS TOP 10 RANKINGS DESIGN-BUILD INSTITUTE OF AMERICA AWARDS CLIMATE CHANGE BUSINESS JOURNAL Gold Business Achievement Award RENEWABLE ENERGY PRACTICE TOP NATIONAL RANKINGS #3 Business Information Modeling (BIM) Engineering Firms Building Design+ Constr. , July 2013 #6 Transmission & Distribution #7 Environmental Management ENR, June 2013 #8 Top Engineering/Architecture Firms #23 Top 25 in Power BD+C, July 2013 ENR, July 2013 #34 Top 500 in Design ENR, April 2013 OTHER SELECT RANKINGS ENR, July 2013 #6 Auto Plants Engineering Firms ENR, July 2013 #9 Top Data Center Engineering Firms #46 Top 100 in Design-Build 22 ENR, 2013 #8 Top 50 in Program Management #4 Wind Power 2013 System Integrator of the Year ENR, July 2013 © 2014 LEIDOS. ALL RIGHTS RESERVED. ENR, June 2013 ENR, July 2013

National Security Engineering 23 Health © 2014 LEIDOS. ALL RIGHTS RESERVED. Cybersecurity

Leidos HBCU/MSI

HBCU/MSI Relationships with Leidos 25 Alabama A & M University Research Institute Alabama State University Albany State University Clark Atlanta University Fayetteville Sate University Florida International University Hampton University © 2014 LEIDOS. ALL RIGHTS RESERVED. Howard University Morehouse College Norfolk State University Oakwood College Prairie View A & M University Savannah State University Texas Southern University of Hawaii

Thoughts on Working with HBCU/MSIs Strengths A team of subject matter experts addresses concerns of management at all levels – Vast inventory of skills and expertise – High energy faculty and students – Organizations set up for contracting – Reasonable costs – Able to leverage local expertise Plan and Define 26 Post-Implementation Review © 2014 LEIDOS. ALL RIGHTS RESERVED.

Thoughts on Working with HBCU/MSIs Challenges A team of subject matter experts addresses concerns of management at all levels – HBCU/MSI aren’t open all year Timing to meet student schedules – HBCU/MSI needs to understand government contracting – Slow decision making process – Pace of performance Execution vs Research – Billing/invoicing Plan and Define 27 Post-Implementation Review © 2014 LEIDOS. ALL RIGHTS RESERVED.

Leidos HBCU/MSI Program Accomplishments Provided scholarships and internships Conducted HBCU/MSI business development forum Provided training Provision of Deltek cost accounting system Provided business development assistance 28 © 2014 LEIDOS. ALL RIGHTS RESERVED.

Points of Contact Victoria Vo Chief, SB Development Office o: 703. 318. 6984 | victoria. c. vo@leidos. com John Rivenburgh o: 256. 705. 8564 | jonathan. j. refer@leidos. com