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A08-24792_Aeronautics_2
AgendaAgenda
8:108:10 Opening Comments and IntroductionOpening Comments and Introduction8:208:20 Company and Program OverviewsCompany and Program Overviews
–– FF--1616–– FF--2222–– CC--130130–– Global SustainmentGlobal Sustainment–– CC--55–– PP--3 3
9:459:45 Q&AQ&A10:0010:00 BREAK and Move to Technical Support CenterBREAK and Move to Technical Support Center10:2010:20 FF--22 Sustainment Overview22 Sustainment Overview
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AgendaAgenda
10:3510:35 Board Buses for Transfer to BBoard Buses for Transfer to B--2 2 11:1011:10 FF--35 Program Overview 35 Program Overview 11:3011:30 Q&AQ&A11:3511:35 LUNCHLUNCH12:3012:30 FOD Briefing and Tour InstructionsFOD Briefing and Tour Instructions12:3512:35 BREAKBREAK12:4012:40 Factory TourFactory Tour2:402:40 Closing CommentsClosing Comments2:45 2:45 Board BusesBoard Buses3:003:00 Depart for Atlanta Airport Depart for Atlanta Airport
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Our presentation contains Our presentation contains ““forwardforward--lookinglooking”” statements or projections statements or projections based on current expectations. These statements are not guarantebased on current expectations. These statements are not guarantees of es of future performance and are subject to risks and uncertainties. Afuture performance and are subject to risks and uncertainties. Actual ctual results may differ materially due to: the availability of governresults may differ materially due to: the availability of government funding ment funding and budgetary constraints; changes in customer priorities; the iand budgetary constraints; changes in customer priorities; the impact of mpact of continued hostilities in Iraq and Afghanistan on funding for defcontinued hostilities in Iraq and Afghanistan on funding for defense ense programs; program and contract performance; return on pension plprograms; program and contract performance; return on pension plan an assets, interest and discount rates, and other changes that may assets, interest and discount rates, and other changes that may impact impact pension plan assumptions; the timing and availability of future pension plan assumptions; the timing and availability of future government government awards; the outcome of legal proceedings; awards; the outcome of legal proceedings; the future impact of the future impact of acquisitions, divestitures or joint ventures;acquisitions, divestitures or joint ventures; economic, business and economic, business and regulatory conditions and other factors. We disclaim any duty toregulatory conditions and other factors. We disclaim any duty to update update forwardforward--looking statements to reflect new developments.looking statements to reflect new developments.Our SEC filings (found at Our SEC filings (found at www.lockheedmartin.comwww.lockheedmartin.com or at or at www.sec.www.sec.govgov), ), including our 2007 Form 10including our 2007 Form 10--K and 2008 Form 10K and 2008 Form 10--Qs contain more Qs contain more information on the types of risks and other factors that could ainformation on the types of risks and other factors that could adversely dversely affect these statements.affect these statements.2008 Financial Results are Unaudited.2008 Financial Results are Unaudited.
Forward Looking StatementsForward Looking Statements
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Ralph HeathRalph HeathExecutive Vice PresidentExecutive Vice President
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Differentiation Through Differentiation Through Innovation and PerformanceInnovation and Performance
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Aeronautics . . . Aeronautics . . .
AeronauticsAeronautics $12.3B$12.3B
29%29%
Space Space SystemsSystems
20%20% ElectronicElectronicSystemsSystems
27%27%
IS&GSIS&GS 24%24%
Combat AirCombat Air 77%77%
AirAirMobilityMobility
13%13%
LM Sales $41.9BLM Sales $41.9B
By Line of By Line of BusinessBusiness
By CustomerBy CustomerU.S. U.S.
Government Government 78%78%
InternationalInternational(Includes FMS)(Includes FMS)
22%22%
ADP/ADP/ OtherOther 10%10%
DoubleDouble--Digit Margin Digit Margin Strong Cash FlowStrong Cash FlowLeading ROICLeading ROICFuture TopFuture Top--Line GrowthLine Growth
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Reaching New HeightsReaching New Heights
Positioned for the FuturePositioned for the Future
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WorldWorld--Class PerformanceClass Performance
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DevelopmentDevelopment
32 Aircraft32 Aircraft23 ZD23 ZD
ProductionProduction3 World3 World--Class LinesClass Lines
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Prepare for the FuturePrepare for the Future
UnmannedUnmanned
Long Range StrikeLong Range Strike
Advanced AirliftAdvanced Airlift
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A08-24792_F-16_12
John LarsonJohn LarsonVice President, FVice President, F--16 Program16 Program
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FF--16: The Worldwide Choice 16: The Worldwide Choice
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Setting The World StandardSetting The World Standard
•• Over 4,500 Ordered; 4,400+ Aircraft DeliveredOver 4,500 Ordered; 4,400+ Aircraft Delivered•• Worldwide Customer BaseWorldwide Customer Base
–– First Choice of 25 NationsFirst Choice of 25 Nations–– 52 Follow52 Follow--On Buys by 14 CustomersOn Buys by 14 Customers
•• Global Supply / Support SystemGlobal Supply / Support System
The WorldThe World’’s Most Successfuls Most Successful Multirole Fighter ProgramMultirole Fighter Program
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Production Opportunities Driven byProduction Opportunities Driven by Affordability and Capability GrowthAffordability and Capability Growth
WorldWorld’’s Most Sought After Fighters Most Sought After Fighter
FutureFuture20002000--PresentPresent
4,5204,520
19701970--7979
998998InitialInitial
19801980--8989
3,4463,446
19901990--9999
4,0514,051
Cumulative Aircraft OrdersCumulative Aircraft Orders
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SignificantSignificantInternational International
OpportunitiesOpportunities
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FF--16 Capability Growth Through16 Capability Growth Through Continuous Technology InsertionContinuous Technology Insertion
Fighter Evolution at Its Best . . . Fighter Evolution at Its Best . . .
1980 1980 -- 20002000 2000 2000 -- 20102010 2010 2010 -- 20452045
•• Highest Aerodynamic Highest Aerodynamic PerformancePerformance
•• Stealth TreatmentsStealth Treatments•• Precision WeaponsPrecision Weapons
•• Sensor IntegrationSensor Integration•• Active Electronically Active Electronically
Scanned Array Radar / Scanned Array Radar / Synthetic Aperture RadarSynthetic Aperture Radar
•• NetworkNetwork--Centric Centric CommunicationCommunication
•• Enhanced Communication Enhanced Communication and Data Transfer With and Data Transfer With 55THTH Gen AircraftGen Aircraft
•• Increased Data Increased Data Processing / FusionProcessing / Fusion
•• Increased Sensor CapabilityIncreased Sensor Capability
InteroperabilityInteroperabilityWith 5With 5THTH GenGen
AllAll--Weather StrikeWeather Strike
Lethal Suppression of Enemy Air DefenseLethal Suppression of Enemy Air Defense
Multirole FighterMultirole Fighter
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Synergy With Synergy With FF--22 and F22 and F--3535
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•• 2008 Deliveries2008 Deliveries
The WorldThe World’’s Premier Multirole Fighters Premier Multirole Fighter
FF--16 Current Production Activity16 Current Production Activity
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•• Deliveries Through 2012Deliveries Through 2012
PolandPoland IsraelIsrael
•• Significant International PotentialSignificant International Potential
GreeceGreece PakistanPakistan
TurkeyTurkey MoroccoMorocco
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Redefining the Future of FRedefining the Future of F--16 Aircraft Logistics and Support16 Aircraft Logistics and Support
Sustainment Potential EnhancedSustainment Potential Enhanced by Global Customer and Supplier Baseby Global Customer and Supplier Base
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ComprehensiveComprehensiveSustainmentSustainment
OfferingsOfferings
Upgrades Upgrades –– Structural, Structural, Operational Flight Operational Flight Program, AvionicsProgram, Avionics
Spares /Spares /RepairsRepairs
SupplySupplyChain MgmtChain Mgmt
TechnicalTechnicalPublicationsPublications
Training /Training /SimulationSimulation
Engineering / Engineering / Field ServicesField Services
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FF--16 . . . The Worldwide Choice16 . . . The Worldwide Choice
•• Strong Competitor in the Strong Competitor in the International Marketplace International Marketplace
•• Continuous Integration Continuous Integration of New Technologiesof New Technologies
•• LongLong--Term Sustainment Term Sustainment FutureFuture
•• Bridge to FBridge to F--3535
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Larry LawsonLarry LawsonExecutive Vice President and General Manager Executive Vice President and General Manager FF--22 Program22 Program
Delivering Air Dominance
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Setting the StandardSetting the Standard
•• Overwhelming CapabilityOverwhelming Capability•• Fully Operational Fully Operational •• Defining 5Defining 5THTH Gen Manufacturing TechnologyGen Manufacturing Technology•• PerformancePerformance--Based Logistics Paying OffBased Logistics Paying Off
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Attributes of FAttributes of F--22 Air Dominance22 Air Dominance
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Production Production –– Integrated and LeanIntegrated and Lean
•• 120 Aircraft Delivered to USAF120 Aircraft Delivered to USAF
•• Unmatched Quality Unmatched Quality
•• Integrated and Lean Manufacturing TeamIntegrated and Lean Manufacturing Team
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Operational BasingOperational Basing
Elmendorf AFB, AKElmendorf AFB, AK
Hickam AFB, HIHickam AFB, HI
Holloman AFB, NMHolloman AFB, NM
Langley AFB, VALangley AFB, VA
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1st Fighter Wing, Langley AFB, VA1st Fighter Wing, Langley AFB, VA
•• Declared Full Operational CapabilityDeclared Full Operational Capability•• 100% Successful Live Weapon Deliveries100% Successful Live Weapon Deliveries•• 80:1 Exchange Ratios at Operation Northern Edge I80:1 Exchange Ratios at Operation Northern Edge I•• Dominance at Red Flag IDominance at Red Flag I•• Sustainment Maturity Demonstrated at KadenaSustainment Maturity Demonstrated at Kadena
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3rd Fighter Wing, Elmendorf AFB, AK3rd Fighter Wing, Elmendorf AFB, AK
•• Deliveries Complete 2008Deliveries Complete 2008•• Outstanding Cold Weather PerformanceOutstanding Cold Weather Performance•• Integrated With Coalition Forces at Red Flag IIIntegrated With Coalition Forces at Red Flag II•• Raptors Critical to the Fight at Northern Edge IIRaptors Critical to the Fight at Northern Edge II•• 100% Successful Live Weapon Deliveries 100% Successful Live Weapon Deliveries •• Deployed to GuamDeployed to Guam
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49th Fighter Wing, Holloman AFB, NM49th Fighter Wing, Holloman AFB, NM
•• Accelerated StandAccelerated Stand--Up Up •• 2 Aircraft in Place2 Aircraft in Place•• Deliveries Complete in 2010Deliveries Complete in 2010
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Delivering Integrated Aircraft OperationsDelivering Integrated Aircraft Operations
Innovative Sustainment ConceptInnovative Sustainment Concept
•• Partnerships With USAFPartnerships With USAF•• Performance Based ContractsPerformance Based Contracts•• Automated and Integrated MaintenanceAutomated and Integrated Maintenance•• Depot ManagementDepot Management•• Base StandBase Stand--UpUp
Yields Outstanding ResultsYields Outstanding ResultsTotal Operational Flight HoursTotal Operational Flight Hours 39,12639,1262008 Operational Flight Hours 2008 Operational Flight Hours 21,95121,951Cost per Flying Hour -25% (Last 18 Months)
Pilots TrainedPilots Trained 196196Successful Base, Depots and Training StandSuccessful Base, Depots and Training Stand--UpsUps
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Paving the WayPaving the Way
•• Outstanding Financial PerformanceOutstanding Financial Performance•• Revenues in Production, Sustainment and ModernizationRevenues in Production, Sustainment and Modernization•• New Lean Manufacturing Standard New Lean Manufacturing Standard •• Comprehensive Logistics Comprehensive Logistics •• Unprecedented CapabilityUnprecedented Capability•• A Technology LeaderA Technology Leader
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Ross Reynolds Ross Reynolds Vice President, CVice President, C--130 Programs130 Programs
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CC--130 130 –– The Need Is NowThe Need Is Now
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CC--130J 130J –– Steadily Building BacklogSteadily Building Backlog
Dec 2007Dec 2007 Mar 2008Mar 2008 Jun 2008Jun 2008
Dec 2006Dec 2006 Jun 2007Jun 2007 Aug 2007Aug 2007 Sep 2007Sep 2007
Strong Demand and New OrdersStrong Demand and New Orders
00202040406060
8080100100120120
4Q064Q06 4Q074Q07 2Q082Q08
Airc
raft
in B
ackl
ogA
ircra
ft in
Bac
klog
39395454 6262
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HCHC--130J King / MC130J King / MC--130J Combat Talon 130J Combat Talon
EO/IR Imaging System (HCEO/IR Imaging System (HC--130H)130H)
ECHS (CECHS (C--130J)130J)Armor (C/KCArmor (C/KC--130J)130J)UARRSI (ECUARRSI (EC--130J)130J)
DualDual--Display CSO Station (ECDisplay CSO Station (EC--130J)130J)
ESL (MCESL (MC--130H)130H)
Leverages Leverages Proven SystemsProven Systems
BattleBattle--Tested KCTested KC--130J 130J (> 11,000 Combat Sorties) (> 11,000 Combat Sorties)
Expanding the Market To Meet Our CustomersExpanding the Market To Meet Our Customers’’ NeedsNeeds
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Strong, Diverse OutlookStrong, Diverse Outlook
Over 2,300 COver 2,300 C--130s Delivered With Operators in 70 Nations130s Delivered With Operators in 70 Nations. . . Strong World Wide Interest. . . Strong World Wide Interest
•• U.S. GovernmentU.S. Government–– USMC / USN KCsUSMC / USN KCs–– USAF JUSAF J--3030–– HC/MC RecapitalizationHC/MC Recapitalization
•• InternationalInternational–– Middle EastMiddle East–– AfricaAfrica–– Pacific RimPacific Rim
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Proven Production CapabilityProven Production Capability
Positioned To Increase Production RatePositioned To Increase Production Rate
•• Delivering on ScheduleDelivering on Schedule
•• Driving Quality ImprovementsDriving Quality Improvements
•• Achieving Production EfficiencyAchieving Production Efficiency
On OrderOn Order227227
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Delivery Status Delivery Status as of June 2008as of June 2008
00
1212
2424
3636
4848
20072007 20082008
CC--130J Production Capacity130J Production Capacity With Existing ToolingWith Existing Tooling
No.
of A
ircra
ftN
o. o
f Airc
raft
DeliveredDelivered165165Annual Production Rate at 12 Aircraft
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Mature and Expanding Mature and Expanding Sustainment FootprintSustainment Footprint
•• Providing OEM ThroughProviding OEM Through--Life SupportLife Support•• Partnering To Create Strategic AlliancesPartnering To Create Strategic Alliances•• Offering Comprehensive Sustainment SolutionsOffering Comprehensive Sustainment Solutions•• Executing Development Roadmap for CExecuting Development Roadmap for C--130J Enhancements130J Enhancements
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SummarySummary
•• Outstanding Operational Outstanding Operational PerformancePerformance
•• Delivering Quality Delivering Quality Products on ScheduleProducts on Schedule
•• Sustainment Sustainment Opportunities ExpandingOpportunities Expanding
•• Exceptional Financial Exceptional Financial Performance Performance
CC--130 Future Is Solid130 Future Is Solid
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Marillyn HewsonMarillyn HewsonExecutive Vice PresidentExecutive Vice PresidentGlobal SustainmentGlobal Sustainment
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Keep Them Flying . . .Keep Them Flying . . .. . . To Perform at the Next Level. . . To Perform at the Next Level
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EnvironmentEnvironment
Increased Opportunities for Increased Opportunities for GovernmentGovernment--Industry PartnershipsIndustry Partnerships
•• High Op Tempo, Budget Constraints, Aging FleetsHigh Op Tempo, Budget Constraints, Aging Fleets
•• Need To Recapitalize and Reduce Support Costs Need To Recapitalize and Reduce Support Costs
•• Receptive To Expanding Role of ContractorReceptive To Expanding Role of Contractor
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•• LM WellLM Well--Positioned To Expand BusinessPositioned To Expand Business–– Strong Portfolio of Aircraft Strong Portfolio of Aircraft –– OEM KnowOEM Know--How, Intellectual Property, How, Intellectual Property,
Innovation, Logistics Infrastructure Innovation, Logistics Infrastructure
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Global Sustainment ServicesGlobal Sustainment Services
Adaptable Business Model With Global ReachAdaptable Business Model With Global Reach
Supply Chain Supply Chain ManagementManagement
TechnicalTechnical PublicationsPublications
SupportSupport EquipmentEquipment
TrainingTraining
Depot Maintenance Depot Maintenance and Repairsand Repairs Engine Maintenance, Engine Maintenance,
Repair and OverhaulRepair and Overhaul
MaintenanceMaintenance ManagementManagement
SparesSpares RepairsRepairs RetrofitRetrofit
Field SupportField Support
Support CentersSupport Centers
Sustainment Sustainment IntegrationIntegration
ModificationsModifications and Upgradesand Upgrades
Site ActivationSite Activation
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Performance Based LogisticsPerformance Based Logistics
PBL Drives 30+ Year Value StreamPBL Drives 30+ Year Value StreamA08-24792_Global Sustainment_42
•• Performance ContractingPerformance Contracting•• Design for SustainmentDesign for Sustainment•• Supply Chain ManagementSupply Chain Management
MRO SupportMRO Support
Guaranteed AvailabilityGuaranteed AvailabilityReduced Operations and Support CostsReduced Operations and Support Costs
Parts and RepairsParts and RepairsGlobal Delivery System
USG and IntUSG and Int’’l Depotsl Depots
Operational UserOperational User
Supplier BaseSupplier Base
LockheedLockheed MartinMartin
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Integrated Business ModelIntegrated Business Model
Committed To Providing Committed To Providing Capabilities Throughout Life CycleCapabilities Throughout Life Cycle
Research & Research & DevelopmentDevelopment
SustainmentSustainment ServicesServices
ProductionProductionProgramProgram
ManagementManagement
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Global Sustainment . . .Global Sustainment . . . Managing Globally Managing Globally –– Delivering LocallyDelivering Locally
. . . We Keep Them Flying. . . We Keep Them FlyingA08-24792_Global Sustainment_44
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George ShultzGeorge ShultzVice President, CVice President, C--5 Modernization Program5 Modernization Program
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CC--5M Super Galaxy5M Super GalaxyWorldWorld’’s Most Capable Strategic Airlifters Most Capable Strategic Airlifter
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Why Modernize the CWhy Modernize the C--5?5?
Fleet Production HistoryFleet Production History19691969 19731973 19861986 19891989
81 C81 C--5A5A’’ss19811981ReRe--wing Awing A’’ss 50 C50 C--5B5B’’ss
19991999
CC--5M5M20162016
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•• Improves Availability / Reduces Total Ownership CostImproves Availability / Reduces Total Ownership Cost
•• Multiple Studies Validate Value of CMultiple Studies Validate Value of C--5 Modernization5 Modernization
•• The CThe C--5 Has 70% Structural Life Remaining5 Has 70% Structural Life Remaining
•• CC--5 Sized Aircraft Critical for National Defense5 Sized Aircraft Critical for National Defense
•• No Current USAF Plans for CNo Current USAF Plans for C--5 Replacement 5 Replacement CapabilityCapability
Fleet InventoryFleet Inventory 62 C62 C--5A5A’’ss 49 C49 C--5B5B’’ss
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Phase I Phase I –– Avionics Modernization Program (AMP)Avionics Modernization Program (AMP)
42 C42 C--5 AMP Aircraft Delivered to Date5 AMP Aircraft Delivered to Date
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Fuel SystemFuel SystemFuel System Flight ControlsFlight ControlsFlight Controls
Structural Mods
Structural Structural ModsMods
Electrical SystemElectrical SystemElectrical System
Hydraulic SystemHydraulic SystemHydraulic System
Pneumatic SystemPneumatic SystemPneumatic System
Phase II Phase II –– Reliability Enhancement Reliability Enhancement and Reand Re--engining Program (RERP)engining Program (RERP)
Power PlantPower PlantPower Plant
GE CF6GE CF6GE CF6
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•• Three Airplanes ModifiedThree Airplanes Modified
•• Test Nearing CompletionTest Nearing Completion
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CC--5M Acquisition Decision 5M Acquisition Decision Memorandum SummaryMemorandum Summary
•• Avionics Modernization of Total Fleet (111 Aircraft)Avionics Modernization of Total Fleet (111 Aircraft)
•• Restructured CRestructured C--5 RERP Program Consists 5 RERP Program Consists of 49 Cof 49 C--5s5s
•• USAF To Pursue Fleet Performance Based USAF To Pursue Fleet Performance Based Logistics (PBL) Logistics (PBL)
•• Lot 1 Production Contract Awarded April 2008Lot 1 Production Contract Awarded April 2008
““I certify with respect to the restructured CI certify with respect to the restructured C--5 RERP program that 5 RERP program that such acquisition program is essential to national security . . .such acquisition program is essential to national security . . .””
John Young Jr., 14 Feb 2008John Young Jr., 14 Feb 2008
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CC--5 Modernization Schedule5 Modernization Schedule
• AMP Production Contract Award Mar 2003• RERP Developmental Test Completes Aug 2008• AMP Sustainment Contract Award Nov 2005, RERP in 2009
•• AMP Production Contract Award Mar 2003AMP Production Contract Award Mar 2003•• RERP Developmental Test Completes Aug 2008RERP Developmental Test Completes Aug 2008•• AMP Sustainment Contract Award Nov 2005, RERP in 2009AMP Sustainment Contract Award Nov 2005, RERP in 2009
RERPRERP RERP IOCRERP IOC
Milestone C Milestone C Operational Test & Evaluation (OT&E)Operational Test & Evaluation (OT&E)
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
SustainmentSustainment
AMPAMP
Revitalizing Strategic Airlift Through 2040Revitalizing Strategic Airlift Through 2040
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Thru 2040Thru 2040
ProductionProduction
Test/TrainingTest/TrainingDevelopmentDevelopment
ProductionProduction
DevelopmentDevelopment
AMPAMP RERPRERP
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•• Most Cost Effective Most Cost Effective Airlift SolutionAirlift Solution
•• RERP Recertification RERP Recertification Solidifies USAF Solidifies USAF SupportSupport
•• Provides Sustainment Provides Sustainment Opportunities Opportunities Through 2040Through 2040
Modernizing Today, Modernizing Today, Sustaining for the FutureSustaining for the Future
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Ray BurickRay BurickVice President, PVice President, P--3 / S3 / S--3 Programs3 Programs
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The PThe P--3 Orion Forces3 Orion ForcesEnabling Operational Effectiveness for Decades to ComeEnabling Operational Effectiveness for Decades to Come
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Continuing and Growing Demand After 45+ YearsContinuing and Growing Demand After 45+ Years
•• Vital To Maintaining CapabilityVital To Maintaining Capability–– Submarine Detection and ProsecutionSubmarine Detection and Prosecution–– Oil and Natural Gas ResourcesOil and Natural Gas Resources–– Homeland Security / Drug InterdictionHomeland Security / Drug Interdiction
•• Critical Role in GWOTCritical Role in GWOT–– Littoral / Overland SurveillanceLittoral / Overland Surveillance–– Signals IntelligenceSignals Intelligence
•• 400+ P400+ P--3s in Active Service 3s in Active Service With 21 CustomersWith 21 Customers
World Standard in Maritime PatrolWorld Standard in Maritime Patrol
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Leading the Way To Continued OperationsLeading the Way To Continued Operations
Life Cycle Commitment To Our CustomersLife Cycle Commitment To Our Customers
Total RangeTotal Range--ofof--Life Life Extension Programs Extension Programs for Aircraft Structure for Aircraft Structure and Systemsand Systems
LifeLife--Cycle Support Such asCycle Support Such asPerformancePerformance--Based Based
Solutions, Engineering Solutions, Engineering Services, MRO and Services, MRO and
Field ServiceField Service
Mission System and Sensor Mission System and Sensor Upgrades and Continuous Upgrades and Continuous Technology InsertionsTechnology Insertions
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Our Unique Reachback Ensures AffordableOur Unique Reachback Ensures AffordableValue Added EnhancementsValue Added Enhancements
OEM Life Extension ProgramOEM Life Extension Program
•• Replacement of Critical Replacement of Critical Components for Components for Additional 15,000 FltAdditional 15,000 Flt--Hrs Hrs Structural LifeStructural Life
•• Significantly Reduces Significantly Reduces Maintenance BurdenMaintenance Burden
•• Tailored to Near and Tailored to Near and Long Term Customer Long Term Customer NeedsNeeds
PP--3 LEP Core Kit3 LEP Core Kit
Conditional ReplacementsConditional Replacements
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2008 2009 2010 2011 2012
The Wing Is In ProductionThe Wing Is In Production
•• Norway Assembly InitiatedNorway Assembly Initiated
•• 10 Wings on Order10 Wings on Order
•• 44 Near44 Near--Term OpportunitiesTerm Opportunities
•• Leverage Synergy WithLeverage Synergy With CC--130 Production Line130 Production Line
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Wing Customers Continue To ExpandWing Customers Continue To ExpandOn On
ContractContractOrder OpportunitiesOrder OpportunitiesNear TermNear Term OtherOther
NorwayNorway 66U.S. CustomsU.S. Customs 44 1010 22U.S. NavyU.S. Navy 1212 3232TaiwanTaiwan 1212CanadaCanada 1010
TotalTotal 1010 4444 3434
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Uniquely Qualified to Long Term Uniquely Qualified to Long Term Sustainment of a World Class CapabilitySustainment of a World Class Capability
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•• Capability Pull Continues From Our CustomersCapability Pull Continues From Our Customers
•• Tangible Commitment to Long Term PTangible Commitment to Long Term P--3 Sustainment3 Sustainment
•• Sustainment Opportunities for the Next 20+ YearsSustainment Opportunities for the Next 20+ Years
A08-24792_F-35_61A08-24792_F-35_61
Tom BurbageTom BurbageExecutive Vice PresidentExecutive Vice PresidentGeneral Manager FGeneral Manager F--35 Program Integration35 Program Integration
FF--35 Lightning II35 Lightning II Delivering the PromiseDelivering the Promise
DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited
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•• Revolutionary Capability Revolutionary Capability –– Restores Restores Airpower AdvantageAirpower Advantage
•• Affordable Recapitalization Affordable Recapitalization –– WorldwideWorldwide
•• True Security Cooperation True Security Cooperation –– Enduring RelationshipsEnduring Relationships
FF--35 . . . Delivering the Promise35 . . . Delivering the Promise
DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited
F-35 – An Unprecedented Value PropositionFF--35 35 –– An Unprecedented Value PropositionAn Unprecedented Value Proposition
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A08-24792_F-35_63DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited
Fighter Recapitalization Fighter Recapitalization Fighter Recapitalization
FF--35 Is the Future35 Is the Future
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FF--35 Program Schedule35 Program Schedule
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
System Development
and Demonstration
(SDD)
System Development
and Demonstration
(SDD) DevelopmentalDevelopmentalOperational Operational
Low-Rate Initial
Production (LRIP)
Low-Rate Initial
Production (LRIP)
20152014
USMCUSMC USAF USNUSNUSAF / USMC USAF / USMC USNUSN
EOQ
USNUSN
USAFUSAF
AAAA--1 (15 Dec)1 (15 Dec)USMCUSMC
LRIP 1 (2)LRIP 1 (2)LRIP 2 (12)LRIP 2 (12)
LRIP 3 (19)LRIP 3 (19)LRIP 4LRIP 4
LRIP 5LRIP 5
LRIP 7LRIP 7LRIP 6LRIP 6
Multiyear 1
Initial Operational Capability
Initial Operational Capability
Planned U.S. Production•
Air Force 1,763 A/C•
Dept of Navy 680 A/CPlanned International Production > 800
Critical Design ReviewsCritical Design Reviews
First FlightsFirst Flights
Test CompletionsTest Completions
CATB (23 Jan)CATB (23 Jan)
DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited
BFBF--1 (11 Jun)1 (11 Jun)
A08-24792_F-35_65DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited A08-24792_F-35_65
First FFirst F--35B STOVL in Test35B STOVL in Test
A08-24792_F-35_66
ObjectivesObjectives•• Mission Systems Risk Mission Systems Risk
Reduction / ConfirmationReduction / Confirmation•• Mission Systems FusionMission Systems Fusion
200920092009200911 June 11 June ‘‘080823 Jan 23 Jan ‘‘0707
CVCVCTOLCTOLSTOVLSTOVLCATBCATB
AAAA--1 Objectives1 Objectives•• Risk ReductionRisk Reduction•• Basic Envelope ExpansionBasic Envelope Expansion•• Systems IntegrationSystems Integration
BFBF--1 Objectives1 Objectives•• Risk Reduction / STOVLRisk Reduction / STOVL•• Envelope ExpansionEnvelope Expansion•• Systems IntegrationSystems Integration
DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited
Flight Test AccomplishmentsFlight Test Accomplishments
A08-24792_F-35_66
A08-24792_F-35_67
FF--35 Production Profile35 Production Profile
DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited
Buy YearsBuy YearsApproximately 24 Months From Buy Year to First Delivery Approximately 24 Months From Buy Year to First Delivery
00
5050
100100
150150
200200
250250
20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 20152015 20162016 20172017
Num
ber o
f Airc
raft
Num
ber o
f Airc
raft U.S. Buy U.S. Buy
International Buy International Buy
A08-24792_F-35_67
A08-24792_F-35_68
Global DeliveryGlobal DeliverySystemSystem
Global Delivery System Enables ALGS and Production SuccessGlobal Delivery System Enables ALGS and Production Success
Autonomic Logistics Autonomic Logistics and Global Sustainment and Global Sustainment
(ALGS)(ALGS)
Fighter Production Fighter Production SystemSystem
Integrated Supply Chain Management Integrated Supply Chain Management
DISTRIBUTION STATEMENT A. Approved for public release; distribution is unlimited. A08-24792_F-35_68
A08-24792_F-35_69
The Future Is FlyingThe Future Is Flying
DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited
Delivering on the PromiseDelivering on the Promise
•• Unprecedented Unprecedented CapabilitiesCapabilities
•• Joint / Coalition Joint / Coalition InteroperabilityInteroperability
•• Worldwide PartnershipsWorldwide Partnerships
•• Revolutionary Revolutionary ManufacturingManufacturing
A08-24792_F-35_69
A08-24792_F-35_70
55THTH Generation ManufacturingGeneration Manufacturing
All SDD and 4 LRIP Aircraft All SDD and 4 LRIP Aircraft Now in Production FlowNow in Production Flow
A08-24792_F-35_70DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited