Aerospace & Defense

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

• 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

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

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 Replacement Program is critical to the future of EB

© Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 17 Electric Boat Proprietary Information U.S. Submarine Industrial Base Currently Engaged in SSN Construction and OR Design OHIO Replacement will require expansion of the Submarine Industrial Base and will create a significant number of highly skilled, high wage manufacturing jobs Number of Suppliers by State 5-Year Spend by State

• Submarine construction is unique • Submarine industrial base consists of ~5,000 suppliers in all 50 states • Over $8.8B has been awarded to 3,000 suppliers over the last 5 years in support of the VA-Class and OHIO Replacement Programs

• http://www.gendyn.com • http://www.gendyn.com/business-groups

RELEASE FOR PUBLIC INFORMATION © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 19 Electric Boat Proprietary Information General Dynamics Enterprise Portal

• GD Enterprise Supplier Registration Portal (ESRP) Registration – www.gendyn.com/suppliers/

RELEASE FOR PUBLIC INFORMATION © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 20 Electric Boat Proprietary Information Becoming a Supplier

• URL http://www.gendyn.com/suppliers/become-a-supplier/index.cfm

RELEASE FOR PUBLIC INFORMATION © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 21 Electric Boat Proprietary Information GD Enterprise Supplier Registration Portal

RELEASE FOR PUBLIC INFORMATION © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 22 Electric Boat Proprietary Information Electric Boat Supplier Website: How to Sell to EB

Electric Boat Supplier Website: http://www.gdeb.com/suppliers

RELEASE FOR PUBLIC INFORMATION © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 23 Electric Boat Proprietary Information How to Become an Electric Boat Supply Chain Partner • Expectations – Quality . Industry recognized quality standards and qualifications – Overall Best Value . Consistent with contract requirements and efficient contract performance – Schedule . Reliable, on-time delivery – Regulatory Compliance . FARS/DFARS . Export Control Laws and Foreign Trade Regulations – Ethics . Committed to maintaining the highest standards of conduct • How to Become an Electric Boat Supply Chain Partner – EB identifies a business need – Innovation – You will be directed to our website

RELEASE FOR PUBLIC INFORMATION © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 24 Electric Boat Proprietary Information Electric Boat Certs and Compliance Checklist

Working With General Dynamics As Prime Contractors to the U.S. Government, General Dynamics(GD) Business Units are subject to various regulations/requirements. As a result, we are obligated to flow-down many of these to our subcontractors. The following list of certifications and compliance regulations may apply in working with any of the GD Business Units. Certifications Compliance

Human Trafficking - Prohibition ITAR/EAR *Applies to Commercial and Non-commercial Items *Applies to transactions involving Foreign Entities FAR 52.222-50, 52.244-6 International Traffic in Arms Regulations(ITAR) see DFAR 252.222-7007, 252.225-7040(d)(8) Code of Federal Regulations (CFR) (22CFR 120-130) Conflict Minerals - Disclosure Export Administration Regulations (EAR) see *SEC Final Rules/Dodd-Frank Act Section 1502 requires Code of Federal Regulations (CFR) (15CFR 730-799) disclosure of use of certain minerals from Democratic Republic Safeguarding Unclassified Technical Data(Cyber Security) of Congo: Cassiterite(tin), Columbite-tantalite(tantalum), *Applies to Commercial and Non-commercial Items Gold, Wolframite (tungsten) Security and privacy controls for Federal Information Systems Counterfeit Parts - Detection and Avoidance DFAR 252.204-7012 *Applies to Electronic parts and components Reporting Executive Compensation and First Tier Awards DFAR 252.246-7007 *Applies to Prime Contractor awards to Subcontractors receiving

[42] procurement awards greater than $25,000 - FAR 52.204-10

RELEASE FOR PUBLIC INFORMATION © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 25 Electric Boat Proprietary Information Becoming a EB Supply Chain Partner

• Information Requirements – Supplier Registration Form – Foreign Ownership Control on Influence Forms (FOCI) – Other Potential Requirements . Access Control Plan (ACP) . Technology Control Plan (TCP) . Joint Certification Program Registration (JCP) . Insurance • Primary Point of Contact: Jea Hur Small Business Liaison Officer (SBLO), (860) 433-4243

RELEASE FOR PUBLIC INFORMATION © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 26 Electric Boat Proprietary Information Electric Boat Procurement Team  Jim Cassidy – Director of Material Acquisition  Ray Wong − Subcontract Machining/Fabrication, Raw Materials, Missile Tubes and GD Supply Chain Council Support  Jack Grispino − Manager of OEM Materials, Fasteners, Rubber Products, Engineering Services, Submarine Construction Support  Ted Hurlock − Manager of Valves, Pipe and Fittings  Michelle Natzel − Manager of Major Mechanical/Electrical Components  Bill Johnson − Manager of Major Developmental Components for OHIO Replacement  Brian Gerbutavich − Acting Manager of Special Projects and Capital, Overhead, and Facilities  Brenda Wiltrout − Administration, Legal Liaison, Value Stream Management and Small Business Development

RELEASE FOR PUBLIC INFORMATION © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 27 Electric Boat Proprietary Information General Dynamics Small Business Process

© Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 28 Electric Boat Proprietary Information General Dynamics Supply Chain Management and Diversity

© Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 TBD 11-09-15 29 ElectricElectric Boat Boat Proprietary Proprietary Information Information Electric Boat Priorities • Perform on backlog – Deliver VA-Class under target cost and ahead of schedule – Improve on every ship – Support the operating fleet: SSNs, SSBNs, SSGNs • Support the Navy’s Undersea Plan – Develop the OHIO Replacement – Develop VIRGINIA Payload Module • Position company for growth – Develop our People, Processes, Facilities and Supplier Base • Electric Boat will continue to be – Strong corporate citizen – Key contributor to economic vitality of the region

GENERAL DYNAMICS Electric Boat Electric Boat Proprietary Information © Copyright Electric Boat Corporation - Use Only With Permission Electric Boat Proprietary Information #0368 #0238TBD TBD11-09 09-15-23 -14 3030