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Electric Boat Proprietary Information Aerospace & Defense International Trade Summit Electric Boat Update © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 1 1 Electric Boat Proprietary Information Electric Boat – Incorporated in 1899 Over 115 Years of Submarine Experience USS Holland First US Navy Submarine, 1900 Since then, over 300 Submarines Delivered to US Navy Isaac Rice John Holland Frank Cable Electric Storage Holland Torpedo Electro-Dynamics Battery Company Boat Company Company Cuttlefish, 1934 WWII Fleet Boat Nautilus, 1954 Ohio, 1981 Virginia, 2004 © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 2 Electric Boat Proprietary Information General Dynamics Corporation • 2014 Revenues: ~ $30 Billion • Employees: ~ 90,000 worldwide Business Jets Combat Systems Information Systems Marine Systems and Technology • Gulfstream • Land Systems • Advanced Information • Bath Iron Works Systems • Jet Aviation • European Land Systems • Electric Boat • C4 Systems • Ordnance and Tactical • Information Technology • NASSCO Systems • United Kingdom Limited © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 3 Electric Boat Proprietary Information General Dynamics Corporation Value Creation 1. Accelerate Revenue 2. Pursue Operating 3. Deploy Capital Create Value Growth where Excellence Wisely Prudent “Back to Basics” Improve Margins, Increase Cash, Improve ROIC Supply Chain Contracts Manufacturing Engineering & GD Technology Management Councils: (J.V. Leonard) (K. Graney) (D. Lesko) (B. Decker) Aligned and Focused to Create Value and Achieve Performance Excellence © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 4 Electric Boat Proprietary Information Electric Boat: Lines of Business Construction Engineering & Design Overhaul and Repair Ship Operations • VA-Class Block III • OHIO Replacement • Moored Training Ship • Military Sealift • VA-Class Block IV • VA Payload Module • Fleet Support • LNG Tankers Staffing 64% Construction Connecticut • Operations/Support 4,700 Engineering 2015 29% • Programs/Engineering 5,100 and Design Sales Rhode Island Overhaul 6% • Manufacturing 3,700 and Repair Other Locations 500 1% Ship Operations Total 14,000 © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 5 Electric Boat Proprietary Information EB: Submarine Product Overview Current & Future 16 More Ships Through VIRGINIA SSN Blocks I – IV End of Block IV Trainer Modules for Moored Training Ship (MTS) 2 Moored Training Ships Block V and Follow Ships VIRGINIA Block V Block V with VIRGINIA Payload Modules Design and Construction of 12 ships OHIO Replacement (OR) SSBN © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 6 Electric Boat Proprietary Information Facilities Overview New London, CT Facility Quonset Point, RI Facility Groton, CT Shipyard Engineering / Design Module Construction Ship Delivery & Support • Concept Development • Manufacturing • Material Procurement • Hull Fabrication • Technology Development • Ship Production • Steel Processing – Pre-launch Assembly • Ship Design • Coatings – Launch • Lead Yard Services – Test and Delivery • Modular Construction • Fleet Support © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 7 Electric Boat Proprietary Information VA-Class SSN Construction Third Generation SSN Production ● $2.7B – Shipyards: 2/3 of total cost ● Co-Production with NNS ● 10M hours to build − 2/3 of hours for manufacturing and module manufacturing − 1/3 of hours for alternating deliveries ● Each shipyard builds same modules ● Deliveries alternate between yards ● Construction span = 5 years © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 8 Electric Boat Proprietary Information VA-Class SSN Program 32-Ship SSN Program Summary • Design Build Program • Current Plan Procured with multi-year contracts Submarines ordered in 5 year blocks Takes 10 years to build a block of submarines • Acquisition Program USS VIRGINIA (SSN774) Delivered 2004 Milestone III approved – Sept 2010 2 ships/ year started in 2011, continues to 2021 $99B VCS Program Authorized through 2015, 69% Authorized • Class to be increased to 48 SSNs Procurement to continue through 2033 20 more submarines staring in 2019 Next Delivery, PCU Illinois (SSN786) © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 9 Electric Boat Proprietary Information VA-Class SSN Program Program Status • Design / Design Mods Block I and II: Basic Class Design Block III: Design for Affordability (DFA) Block IV: Reduction in Total Ownership Cost (RTOC) Block V: Virginia Payload Module (VPM) • Status (1998 Construction Start) Block I (1998 – 2002): 4 ships (all delivered) Block II (2003 – 2008) : 6 ships (all delivered) Block III (2009 – 2013) : 8 ships (2 delivered, 6 in process) Block IV (2014 – 2018) : 10 ships (all in process) – Block V: starting in FY19 © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 10 Electric Boat Proprietary Information Block II: VA-Class Construction Results EB Deliveries: Under Cost, Ahead of Schedule USS New USS Missouri USS Mississippi Hampshire USS NEW HAMPSHIRE USS MISSOURI USS MISSISSIPPI * (SSN778) (SSN780) (SSN782) Delivery Date: 08/27/08 Delivery Date: 07/29/10 Delivery Date: 05/02/12 71 month span 65 month span 62 month span 8 months early 9 months early 12 months early 3.6M hours < lead ship 3.8M hours < lead ship 3.8M hour < lead ship $119M below target $111M below target $74M below target * “It should not be missed that with this one year early, under cost, delivery came the most complete, combat-ready Virginia-class submarine yet delivered. ” Rear Adm. David Johnson May, 2012 © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 11 Electric Boat Proprietary Information Block III: VA-Class Construction Proceeding Ahead of Schedule USS NORTH DAKOTA (SSN784) USS JOHN WARNER (SSN785) 11th VA-Class – an EB Delivery 12th VA-Class – a NNS Delivery • Delivered August 29, 2014 • Delivered June 25, 2015 • 20% redesign for affordability • 2nd VA-Class with bow modification • 2 days ahead of schedule, under budget • 2 months ahead of schedule, within budget, • Conducted a successful pre-PSA deployment best INSURV performance “It is the most lethal weapon we have in our inventory. “Unequalled Predator and This is an asset that affords us access and you can’t bring Industrial Benchmark” capabilities to bear if you can’t get there.” ~RADM Tofalo Director, Undersea Warfare Division ADM John Greenert, CNO © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 12 Electric Boat Proprietary Information Block III: VA-Class Construction PCU ILLINOIS (SSN786) – Next Boat To Be Delivered Roll-Out Float-Off • Float-Off completed 8/8/15, Christening October 10, 2015 • Delivery February 2016 (target <60 Months) © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 13 Electric Boat Proprietary Information Block IV: VA-Class Construction Ship Construction In-Process Vermont Module Construction Block IV – 10 Ships FY2014 – FY2018 © Copyright Julius Tolentino, used with permission Construction 12% Complete • Under Construction Block IV contract signed on 4/28/14 VERMONT (SSN792) 24% • OREGON (SSN793) 14% 10 ships ordered over 2014 – 2018 MONTANA 6% HYMAN RICKOVER(795) 2% • Maintains 2 ships/year build rate NEW JERSEY (796) IOWA • $17.8B total contract value SSN798 IDAHO • Continues co-production with NNS SSN800 SSN801 © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 14 Electric Boat Proprietary Information Block V: VA-Class Construction Expect Construction Contract in 2018 9 Ships to be Authorized Over Period 2019 to 2023 © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 15 Electric Boat Proprietary Information Maintenance and Modernization Current Projects / Availabilities Fleet Support • Moored Training Ship Module Construction Availabilities In Process • USS Minnesota (SSN783) • USS Montpelier (SSN765) • USS North Dakota (SSN784) Future Opportunities • USS Nautilus Preservation (SSN571) © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 16 Electric Boat Proprietary Information OHIO Replacement (OR) Program Program Description and Development Plan Program Description 12 OHIO Replacement SSBNs to replace 14 OHIO Class SSBNs #1 priority for US Navy Most survivable leg of the TRIAD Development Program Technology development phase in process – Driving EB’s future; tools, processes, facilities, people – EB OR staffing at 3,000 Lead ship authorization FY2021, delivery in 2027 Lead ship on patrol in 2030, Ships in service until 2080 OHIO