Strategic Planning SEA Roadmap Process 1 1 1

Strategic Planning SEA Roadmap Process 1. 1. 1 October 8, 2012 Andrea Korfin NTS Vice President - Human Resources

www. nts. com Company Profile Corporate HQ Calabasas, CA 1200+ Employees Founded 1961 NASDAQ: NTSC 25 Locations Worldwide $169 MM Revenue (FY 2013) Serving Multiple Markets 2

www. nts. com Three Pillars of Expertise Engineering Services Testing & Certification Supply Chain Management • Design • • • Dynamics • Source Inspections EMC/ESD • Test Witnessing Product Safety • Quality Engineering • System Engineering • Managed Services Environmental Wireless Radio Hardware/Softwar e • Industry Specific Services and Certs • Quality Audits • Delivery Expediting • Corrective Actions • Supplier-Funded Programs 3

www. nts. com Industries Served Aerospace Defense Telecom Commercial Transportatio n Energy 4

www. nts. com “Cool stuff we do…” Gen Y Employees

www. nts. com NTS Strategic Culture & Personality Mission Statement – Helping our clients navigate a short course to global markets through an integrated engineering service offering. NTS is a forward-thinking company that never rests on its past success. We are always eagerly looking around the next turn in the road to prepare ourselves for the various challenges and opportunities that lie ahead. We are also a growth-oriented company, and we actively seek growth organically, via acquisition and through constant innovation. As a service-oriented company our greatest assets are our people. We hire and retain the best and brightest individuals in their respective fields of specialization. Our company leaders are diverse, experienced and fully committed to the future of this great company. 6

www. nts. com and • Engaged with SEA for 5+ years. • SEA Certified in Fullerton, CA and Boxborough, MA locations, with more planned. • Winner of SEA’s 2011 Leadership and Culture Award. • Our CEO and COO both sit on SEA’s Supplier Advisory Council (SAC). 7

www. nts. com Strategic Planning 1. 1. 1 - Criteria How do your senior leaders accomplish strategic planning? Quarterly meetings review the company’s strategic plan and core tenants. We take a deeper dive annually. 8

www. nts. com Strategic Planning 1. 1. 1 - Criteria What are the key process steps and who are the participants? Senior officers and leaders of the company review and discuss prepared inputs and generate revisions and actions as outputs. (Communicated via 1. 1. 2 Leadership Comm. ) 9

www. nts. com Strategic Planning 1. 1. 1 - Criteria How do you ensure that the process addresses strengths, weaknesses, opportunities, and threats; major shifts in technology, markets, and competition? Formal and informal SWOT analyses as well as feedback from clients, suppliers, industry and more are points of discussion. 10

www. nts. com Strategic Planning 1. 1. 1 - Criteria What are your key strategic goals, measureable targets, and timetables? We have a documented 5 -year financial plan, defined Corporate Strategy Map and quantitative targets for company wide improvement initiatives. 11

www. nts. com Strategic Planning 1. 1. 1 - Criteria How are goals and metrics deployed throughout the organization? We leverage our Leadership Communication (1. 1. 2), Organizational Performance Review (1. 1. 3) and Continuous Improvement Processes (1. 1. 4) 12

www. nts. com Linkage of L&C Processes Strategic Planning 1. 1. 1 Plan Continuous Improvement (PIPELine) 1. 1. 4 Act Do Leadership Communication 1. 1. 2 ---------Workforce Development 1. 1. 5 Check Organizationa l Performance Review 1. 1. 3 13

www. nts. com SOP COR LDC 01 Flowchart PLANNING SESSION Areas Addressed Inputs & Preparatio n Confirm participants and assignments Current State of NTS Attributes, Horizons, Core Values, Vision, Mission Statement, Strategy Map Any information related to the four perspectives on the Balanced Scorecard: • Client • Processes • People • Success Feedback, Interviews, Workshops, Surveys • Customers/Clients • Employee • Supplier Outputs Attributes & Horizons NTS Attributes • Capability – Dominate • Customer Service – Differentiate • Price – At parity • Access (Easy to do Business With) – At parity • Experience – At parity NTS Horizons Horizon 1: 0 - 1 years (Operations) Horizon 2: 1 - 3 years (Innovations) Horizon 3: >3 years (Acquisitions) Review & Revise Core Values • “Conscious Capital” & “Soulful Purpose” Leadership Development Vision/Mission Statement Strategy Map Key performance indicators/Balanced Scorecard Value Streams PIPELine process • Gate Review/Process Maturity • Team Charters • Champions • Process Owners Horizons 1, 2, & 3 • Short/Mid/Long-term Significant business SWOT’s Workforce Development New or Revised: Vision/Mission Statement Core Values Strategy Map Value Streams PIPELine Initiatives • Teams & Team Charters Horizons 1, 2, & 3 Initiatives Strategic Assignments Deployme nt Communicate Strategy at all levels of organization (in accordance with SOP COR LDC 02– Leadership Communication). Ensure employees are trained and skilled to execute strategy (in accordance with SOP COR LDC 05 – Workforce Development Integration). 14

www. nts. com Strategic Planning Drivers CORE VALUES ATTRIBUTES HORIZONS STRATEGY MAP 15

www. nts. com Core Values • Organizational Integrity • Respect for the Individual • Quality Customer Service • Stewardship – “Obligations to Stakeholders” • Embrace and Drive Change • One Enterprise • The Best People Make the Best Teams • Personal and Organizational Growth 16

www. nts. com Attributes “Great Companies Never Try to be the best at Everything” Dominate Capability Differentiate • Cohesive Strategy Meeting February 2006 Customer Service • Commitment to long-term success Parity • Guiding decisions Price Access (Easy to do Business With) Experience- Client The Myth of Excellence by Fred Crawford & Ryan Mathews 17

www. nts. com Horizons Horizon 3: Long Term 2 – 5 Years Development Growth Abstract Concepts • Acquisitions • Innovations • Partnering & Positioning Horizon 2: Mid Term 6 Months – 2 Years Development Growth Early Implementation • Acquisitions • Innovations • Start-ups • Technology Transfer • Partnering & Positioning Horizon 1: Short Term 1 Year Organic Growth Operational Excellence • Enhance Existing Capabilities • Enhance Existing Capacity • Integrate New Developments • Automation • Dual Citizenship 18

www. nts. com Strategy Map 19

www. nts. com Lessons Learned 1. Steadfast & Resolute 2. Commitment by management to: – Manage through chaos – Dedicate Resources – SEA 3. Willingness to try different approaches while being guided by the pillars 20

www. nts. com Questions? Andrea Korfin andrea. korfin@nts. com 818 -591 -0776 THANK YOU!