EDO AIL
Investor Briefing 2000
(This page shows a picture of the sky with the EDO and AIL logos.)
<PAGE>
EDO Introduction
- EDO and AIL Announce Merger on January 3, 2000
- Shareholder Vote Scheduled for April 28, 2000
- Purpose of This Briefing
- Objective of the Merger
-- Product Lines of the Company
-- Financials
-- Q&A
<PAGE>
EDO Objectives of the Merger
- Create a Larger Integrated Defense and Aerospace Supplier of Mission-
Critical Products
- Create Technical Synergies That Will Expand the Addressable Market
- Provide Greater Leverage in Capital Markets to Accelerate Future Growth
<PAGE>
EDO Corporation
Investor Briefing 2000
(This page shows a picture of the sky with the EDO logo.)
<PAGE>
EDO Profile
Designer and Manufacturer of Defense and Aerospace Products and Engineered
Materials for Domestic and International Markets
(This page shows a picture of an F-22 airplane and large composite tanks.)
<PAGE>
EDO Profile
- Supplier of Mission-Critical Products for Defense, Aerospace and
Industrial Customers
- Financial Condition (1999)
-- $133 Million Backlog
-- $ 30 Million Cash
-- $ 30 Million Line of Credit
<PAGE>
EDO Profile
- Defense and Aerospace Products
(The following pictures of EDO products are shown:
The AMRAAM Vertical Eject Launcher (AVEL)
A C4I display console
The MK 105 Mod 4 Magnetic Influence Minesweep System)
- Engineered Materials
(The following pictures of EDO products are shown:
Transducers
Piezoelectric Ceramics
Composite Tanks)
<PAGE>
EDO Profile
(The following financial data is presented as two bar charts.)
Revenue
1995 1996 1997 1998 1999
--------------------------------
Defense & Aerospace $37M $38M $44M $54M $66M
Engineered Materials $27M $30M $30M $28M $32M
--------------------------------
Total $64M $68M $74M $82M $98M
Backlog
1995 1996 1997 1998 1999
--------------------------------
Defense & Aerospace $41M $61M $74M $117M $118M
Engineered Materials $21M $16M $19M $13M $16M
--------------------------------
Total $62M $77M $95M $130M $134M
<PAGE>
EDO Profile
(The following financial data is presented as two bar charts.)
Operating Earnings
1995 1996 1997 1998 1999
--------------------------------
EDO Corporation $6M $15M $8M $12M $9M
Earnings Per Share
1995 1996 1997 1998 1999
--------------------------------
EDO Corporation $0.66 $2.13 $1.01 $1.42 $0.76
<PAGE>
EDO Profile
(The following financial data is presented as two bar charts.)
Shareholders Equity
1995 1996 1997 1998 1999
--------------------------------
EDO Corporation $15M $20M $28M $38M $40M
Cash
1995 1996 1997 1998 1999
--------------------------------
EDO Corporation $23M $21M $21M $34M $30M
<PAGE>
EDO Markets
(The following financial data is presented as a pie chart.)
Defense & Aerospace - Domestic 39%
Defense & Aerospace - International 28%
Engineered Materials - Domestic 27%
Engineered Materials - International 6%
-----
Total 100%
<PAGE>
EDO Defense & Aerospace
Aircraft Armament Products
(This page shows a pictures of the F-15E Eagle, F-22 Raptor and Japanese F-2
airplanes)
- EDO Is a World Leader in:
-- Suspension and Release Equipment
-- New Carriage Technology
-- Alternate Energy Sources
<PAGE>
EDO Defense & Aerospace Markets
(This page shows a pictures of the Boeing XA-32 JSF airplane with the
caption "Member of the Boeing and Lockheed JSF Teams.")
- Aircraft Armament
-- Alternate Energy Sources
-- Smart Weapons
-- Stealth Configurations
Market $300M
- F-15E Eagle World Wide
- F-22 Raptor
- Joint Strike Fighter (JSF)
- Smart Weapons Carriage
-- F-16
-- F-18
<PAGE>
EDO Defense & Aerospace
Combat Systems Products
(This page shows a picture of an international ship with the following
equipment depicted:
Navigation Console
Electro-Optical Sensor Head
Navigation Radars
AN/SPS-67 IFF
Electronic Chart Display
Heading Reference System
Weapons Console
Sonar
EDO Malfunction Consoles
Horizon Reference System
Slope Indicator)
- Undersea Warfare
- Digital Data Links
<PAGE>
EDO Defense & Aerospace
Markets
(This page shows a picture of a Sonar Control-Indicator Console.)
- ASW Sonar
-- Continued Development of COTS Based Systems
-- Active Towed Systems
Combat Systems
Market $500M
- Upgrades to 80+ EDO Sonars
- NATO SSSB
- Data Links
- Systems Integration/Analysis
<PAGE>
EDO Defense & Aerospace
Mine Warfare Products
(This page shows pictures of the EDO MK 105 Mod 4 Airborne Magnetic Mine
Countermeasures System with the caption "MK 105 Mod 4.")
EDO Has been the Sole Source Supplier of Magnetic Sweep Systems to the
Airborne MCM Forces for 25+ Years
- MK 105
- MK 105 Upgrade
- SWIMS (Shallow Water Influence Magnetic Sweep)
- Depot Service
<PAGE>
EDO Defense & Aerospace
Markets
(This page shows a picture of the Shallow Water Influence Magnetic Sweep -
SWIMS.)
- Mine Warfare
-- MK 105 Upgrade
-- Organic Capability
-- Shallow-Water Sweep
-- AMCM Command and Control
-- Integrated MCM System
Market $200M
- MK 105 Upgrade
- Shallow Water Mine Sweeping
- Organic MCM
- International MCM
<PAGE>
EDO Engineered Materials - Ceramics Products and Markets
(This page shows pictures of EDO piezoelectric ceramic products, miniature
ceramic shapes for the cellular communications industry, and a cellular
communications repeater tower.)
- EDO Is a Major Supplier of Ceramic Shapes in the U.S.
-- Naval Arrays
-- Oceanographic Exploration
-- Fish Finders
-- Ultrasonics
-- Cellular Communications
-- Motors and Actuators
Market $150M
- Military
- Cellular Communications
- Medical
- Controls
- Underwater Sensors
<PAGE>
Engineered Materials - Composites Products and Markets
(This page shows pictures of the Boeing 767 airplane, an EDO composite
airplane waste tank, an off-shore oil rig, and EDO composite piping
installed on an oil rig.)
- EDO Is a Major Supplier of Composite Products
-- Waste and Water Tanks for the Commercial Aircraft Industry
-- Piping and Structures for Off-Shore Oil Industry
Market $155M
- Commercial Aircraft
- Transportation
- Military
- Off-Shore Oil Industry
<PAGE>
AIL
Investor Briefing 2000
(This page shows a picture of the sky with the AIL logo.)
<PAGE>
AIL PROFILE
Systems Integrator and a Producer of High-Technology Electronic Products
for Defense and Commercial Applications
(This page shows pictures of a TDRS Satellite and the B-1B airplane.)
<PAGE>
AIL PROFILE
DEFENSE SYSTEMS
(The following pictures are shown:
- The EA-6B airplane
- An Extended Range Guided Munitions (ERGM) Missile GPS Antijam)
SPACE AND COMMUNICATIONS PRODUCTS
(The following pictures are shown:
- The Space Shuttle
- The Boeing 777 Airplane)
<PAGE>
AIL PROFILE
(The following financial data is presented as two bar charts.)
REVENUE
1997 1998 1999
---------------------
AIL $103M $120M $146M
BACKLOG
1997 1998 1999
--------------------
AIL $102M $124M $131M
<PAGE>
AIL PROFILE
(The following financial data is presented as two bar charts.)
OPERATING EARNINGS
1997 1998 1999
--------------------
AIL $3M $28M $6M
EARNINGS PER SHARE
1997 1998 1999
--------------------
AIL $0.63 $4.62 $0.39
<PAGE>
AIL PROFILE
(The following financial data is presented as two bar charts.)
SHAREHOLDERS EQUITY
1997 1998 1999
--------------------
AIL $22M $41M $44M
LONG TERM DEBT
Stub 1997 1998 1999
-------------------------
Other $19M $16M $14M
Acquisition - $15M $ 9M
---- ---- ----
Total $19M $31M $23M
<PAGE>
AIL Markets
(The following financial data is presented as a pie chart.)
Space and Communications Products 30%
Defense Systems 70%
----
Total 100%
<PAGE>
AIL Defense Electronics Systems
(The following pictures are displayed on this page:
The EA-6B airplane
The B-1B airplane with AN/ALQ-161 LRU modules displayed
An MDDS Chip
The Universal Exciter Upgrade.)
UEU the Voice of the Prowler
AN/ALQ-161 Self Defense System for the B-1B
ALQ-161 STAYS INSTALLED THRU 2009+ IN CURRENT AIR FORCE PLAN
UPGRADE PROGRAM TO ADD MID 90s TECHNOLOGY TO THE 500+ UNIVERSAL EXCITERS IN
THE FLEET
DEFENSE MARKET $750M
<PAGE>
AIL Space Products and Technologies
(The following pictures are displayed on this page:
NPOESS
GEOSAT
HRUPPA
HS 601
TDRS
HS702
SHUTTLE)
SPACE PRODUCTS MARKET $800M
<PAGE>
AIL Antenna Products and Technologies
(The following pictures are displayed on this page:
Military antennas
A wireless antenna
A CNI antenna
Commercial GPS and ITS antennas
A custom military airborne antenna
The Arleigh Burke destroyer
The AS-4305)
CUSTOM MILITARY APPLICATIONS
CONFORMALS
RETRACTABLES
CRPA
L/O
COMMERCIAL WIRELESS APPLICATIONS
MILITARY SHIPBOARD
VHF/UHF COMMUNICATIONS
HF
IFF
EW/ESM
RADAR
SATCOM
CNI ANTENNAS FOR COMMERCIAL AVIATION
MILITARY AIRBORNE
VHF/UHF COMMUNICATIONS
GPS
IFF/TACAN
EW/ESM
RADAR
SATCOM
COMMERCIAL GPS AND ITS APPLICATIONS
ANTENNA MARKET $250M
<PAGE>
AIL Technical Services and Support Equipment
(The following pictures are displayed on this page:
B-1B with flight line support equipment
Avionics Data Acquisition Data and Control System
Portable Radar Simulator
A Laboratory)
- Flight Line Support Equipment
- Portable Flight Line Test Sets
- Avionics Instrumentation
- Laboratories
SERVICES & EQUIPMENT MARKET $100M
<PAGE>
AIL Interference Cancellation Systems (ICS)
(The following pictures are displayed on this page:
- U.S. Army Guardrail
- U.S. Air Force SOF CV-22
- U.S. Navy Extended Range Guided Munitions
- U.S. Air Force Rivet Joint)
ICS MARKET $100M
<PAGE>
EDO and AIL Products Are Complementary and Mission Critical
EDO AIL
AIRCRAFT ARMAMENT AIRBORNE ELECTRONIC COUNTERMEASURES
Bomb Racks Escort Jamming Systems
Missile Launchers Self-Protect Systems
Aircraft Structures
MINE COUNTERMEASURES RADAR SYSTEMS
Minesweeping Systems Ground-Based
Airborne
SHIPBOARD COMBAT SYSTEMS SPACE PRODUCTS
Command, Control Satellite Communications
& Communications Satellite Environmental Sensors
Sonar Systems
Navigation
Fire Control
OPERATIONS ANALYSIS ANTENNAS
Wargaming Military Applications
Modeling Commercial Wireless & Aircraft
Decision Support
PIEZOCERAMIC COMPONENTS ENVIRONMENTAL PRODUCTS
Transducers Radiation Detection
Microwave Ceramics Air Quality Monitoring
ENGINEERED MATERIALS INTERFERENCE CANCELLATION SYSTEMS
Plastic Piping Military Applications
Waste Tanks Commercial Applications
ENGINEERING SERVICE & EQUIPMENT
Flight Line Test Equipment
<PAGE>
EDO AIL
Investor Briefing 2000
(This page shows a picture of the sky with the EDO and AIL logos.)
<PAGE>
EDO NEWCO Pro Forma Financials
- Revenue $244,000
- EBIT $ 11,063
- Backlog $264,880
- Shareholder Equity $ 62,072
<PAGE>
EDO Objective of the Merger
- Create a Larger Company to:
-- Address Larger Programs
-- Exercise Greater Leverage in Financial Markets
-- Achieve Future Growth
--- Acquisitions
--- Increased R&D
<PAGE>
EDO Summary
- Larger, Stronger Company
- Potential Cost Synergies
- Technological Synergy
-- New Products
--- Communications and Command and Control
--- Avionics and Aircraft Armament
- Broader Product and Capability Offering
- Cross-Marketing Opportunities
- Eligible for Larger programs
- Broaden AIL Foreign Market
<PAGE>
