| SM&A (Nasdaq: WINS) May 2008 |
| Agenda Why We Are Here Historical Snapshot: Where We Have Been The Future: Strong Strategy Built on Increasing Stockholder Value A Broader Focus and Stronger Strategy Building Stockholder Value - Results The Right Team and the Right Structure Reality vs. Dissident Assertions Proposed Slate Adds No Value Why You Should Support Our Board Appendix |
| Why We Are Here Introduce our leadership team Provide an overview of our strategic direction Detail our operational & financial framework Address dissident proxy position Contest qualifications and value dissident group would bring to board We seek your advocacy for the current board and management team |
| Historical Snapshot: Where We Have Been |
| Historical Snapshot: 10 Year History 1998 - Company goes public; Myers & Colbaugh, CEO & COO; Stock climbs from $12 share to +$32 share; 9 mo. later Company misses guidance and stock begins fall to eventually $0.62 1999 - Thirteen months after going public Colbaugh resigns and starts competing company 2000 - $30MM loss resulting from failed acquisition program in 1998 - 2000 resulting in inability to file financials timely, bank credit line in default, no working capital & stock delisted McCarthy hired to negotiates standstill with banks and restructures debt. 2001 - McCarthy structures deal to sell three companies and writes one off as worthless security; total write-downs and operating losses total $95MM over last two years 2002 - Recovery year with management restructure and attempt to sell company 2003 - Build up of LM Program Services; single contract creates majority of top line growth. 2004 - LM terminates majority of employees on Program; revenues decline 10% Company has no growth strategy, product strategy, sufficient sales team Company begins to attract independent board members with industry experience McCarthy suggests need for professional sales team and product development 2005 - Build up of FCS - Loss of FCS Further investment made in sales and marketing, product development - Reiners hired 2006 - Board determines new leadership is necessary after stagnated performance and lack of strategic direction; Myers agrees to retire; Board begins CEO search 2007 - New CEO hired, Myers asked to resign as Chairman and from board. New CEO is replaced after 90 days and board moves to stabilize company by hiring McCarthy as CEO Several sales executives depart as a result of leadership turnover and launch competing firm New sales team, product launches and acquisitions of PPI & PMA crafted by McCarthy & Reiners drive record revenues in 2007. 2007 & early 2008 - A Sea of Change Leadership Changes Steve Myers' contract is not renewed; Replaced by Cynthia Davis Cynthia Davis departs company Cathy McCarthy, new President and CEO Anna Aguirre hired as VP Human Resources Kevin Reiners promoted to EVP, Operations CFO resigns Jim Eckstaedt joins as EVP, Finance and CFO Employee Turnover New Strategic Plan Designed by McCarthy & Reiners approved by board General Pace joins the Board & our Executive Team Solid Foundation for the Future |
| Historical Snapshot: Stock Price Performance WINS vs. Russell 2000 while Myers is Chairman and CEO Underperformed the Russell 2000 (41%) vs. + 80% $32.75 $0.62 (98%) Board sees need for leadership change |
| The Future: Strong Strategy Built on Increasing Stockholder Value |
| Summary of Strategic Direction Near-Term Market Strategy Federal Business State and Local Business Products and Services Project Acquisition and Performance Consulting Internal Development Intelligent Accretive Acquisition Financial Continued Acquisition leverage Continued Revenue Growth Leverage current model for EPS growth Overarching Strategy Provide national project acquisition and performance consulting Grow SM&A revenue to $500+M per year Increase EPS at a higher rate than revenue Realize transition from micro to small-cap status to attract broader institutional investors Future Market Strategy Federal Business State and Local Business Commercial Business Products and Services Project Acquisition and Performance Consulting Portfolio Strategy Internal Development Intelligent Accretive Acquisition Financial Continued Acquisition leverage Continued Revenue Growth Improved models for EPS generation |
| A Broader Focus & Stronger Strategy: Typical Client Project Lifecycle A B C RFP DRFP Concept Refinement Technology Development System Development & Demonstration Production & Deployment Operations & Support RFP DRFP RFP SM&A Competition Management and Program Services Offerings SM&A Business Strategy Offerings Total Contract Lifecycle Success |
| A Broader Focus & Stronger Strategy: Expansion of Strategic Advisors & Program Services Business Operations Project Planning Earned Value Management System (EVMS) Consulting Cost/Schedule Management Cost Estimating - Pricing to Perform ECP Management Project Controls, Scheduling Staffing Program Services Project Management AwardFee(tm) Integrated Baseline Review Startup Leadership / Mentoring Project Assessment Risk/Opportunity Management Project Metrics Architecture Management Dashboard Technical Management Milestone Success(tm) (Design Review Delivery) Requirements Management System Architecting Trade Process Interface Management Systems Engineering Staffing Competition Management Opportunity win strategy Capture management Proposal management Volume Leads (Technical, Cost, Past Perf, Management, IMP/IMS) Price-to-Win Orals presentation leadership Author support Portfolio Business Strategy SM&A Strategic Advisors Business Intelligence for mission-critical programs Executive-level thought leadership Pursue Win Perform Client Project Total Contract Lifecycle Success |
| Competition Management $1.5 - $2 billion1 DoD and prime contractors annual expenditure in Bid and Proposal funds (proposals and R&D) Program Services $7 - $11 billion1 Major programs spend 10% - 16% of program budgets on Program Management Office activities Includes DoD, DoD IT, Federal (non-DoD) IT 1DCAA data, CRA estimates 2007 Program Services market is significantly larger than Competition Management Competition Management Program Services East 2 11.2 Total Annual Spending 2008 ($B) Market Size ($B) (10 - 16%) Major DoD Programs $61.1 $6.1 - $10.0 Major DoD IT $2.5 $0.3 - $0.4 Major Non-DoD IT $5.0 $0.5 - $0.9 $6.9 - $11.2 Addressable Market Size $8.4 - $13.2 Billion $6.9 - $11.2 B $1.5 - $2.0 B A Broader Focus & Stronger Strategy: Larger Addressable Markets |
| Building Stockholder Value - Results: Increasing Company Revenue Q106 Q107 Q206 Q207 Q306 Q307 Q406 Q407 Revenue 17.7 23.6 18.3 25.6 17 25.1 18.8 24.085 33% Q1 Growth 40% Q2 Growth 48% Q3 Growth 28% Q4 Growth 37% Revenue Growth in 2007 $ Millions |
| Building Stockholder Value - Results: Increasing Competition Management Revenues Q106 Q107 Q206 Q207 Q306 Q307 Q406 Q407 Revenue 11.492 14.368 11.705 14.88 9.823 13.573 12.178 12.539 25% Q1 Growth 27% Q2 Growth 39% Q3 Growth 2% Q4 Growth 22% Revenue Growth in 2007 $ Millions |
| Building Stockholder Value - Results: Increasing Program Services Revenues Q106 Q107 Q206 Q207 Q306 Q307 Q406 Q407 Revenue 6.221 9.256 6.572 10.688 7.202 11.486 6.593 11.546 50% Q1 Growth 62% Q2 Growth 60% Q3 Growth 74% Q4 Growth 62% Revenue Growth in 2007 $ Millions |
| Q306 Q307* Q406 Q407** Revenue 0.326 0.242 0.305 0.258 840 BP Improvement Y/Y 470 BP Improvement Y/Y Building Stockholder Value - Results: Reduction in SG&A Expenses SG&A (ex. Stock-based Comp) as a percent of Sales *Excludes effects of CEO transition ** Excludes effects PPI and transition expense Demonstrable Improvement in Cutting SG&A Expenses |
| Q306 Q307* Q406 Q407** Revenue 0.02 0.12 0.04 0.09 600% Improvement 125% Improvement Building Stockholder Value - Results: Increasing Earnings Diluted EPS Demonstrable Improvement in Increasing Earnings *Excludes effects of CEO transition **Excludes effects PPI and transition expense |
| Continue our Total Lifecycle Success approach to clients with the expansion of Program Services and Strategic Advisors vs. mostly Competition Management Addition of General Peter Pace to lead Strategic Advisors; COO Kevin Reiners devised and implemented Program Services offerings Continue to expand our market presence by Vertical Market Expansion & Client Segmentation Continue momentum of GROWING revenues in both Competition Management & Program Services and REDUCING SG&A expenses Revenue growth of 37% in 2007, Q407 revenue growth of 28% Diversified product offerings have produced organic revenue growth of 25% in 2007 As a percent of revenues second half 2007 SG&A expense decreased* Continue to GROW EPS EPS growth of 250% in the second half of 2007* Building Stockholder Value - Results: Summary *Excludes effects of CEO transition and PPI |
| Continue to strengthen talent and morale within the organization Two management transitions in less than six months had created an environment of uncertainty Continue to effectively utilize cash by purchasing back shares Current board authorized $30M in stock repurchases The company has repurchased 84% of the authorization through March 2008 The company purchased close to the daily maximum volume limit under SEC rules during Q108 Current board repurchased 241,200 shares at an average price of $4.29 during the Q108 Maintained cash reserves for strategic acquisitions Building Stockholder Value - Results: Summary |
| The Right Team and the Right Structure |
| The Right Team and the Right Structure: Myers Proposed Members to be Replaced William C. Bowes (Director since 2004 - Chair of Governance & Nominating Committee) Mr. Bowes is a retired Vice Admiral and an experienced industry executive. As Vice Admiral, he served as Commander of the Naval Air Systems Command, Principal Deputy Assistant Secretary of the Navy for Research, Development and Acquisition (RDA), and Acting Assistant Secretary of the Navy for RDA. Following his retirement from active duty, Mr. Bowes joined Hughes Aircraft as a senior president and deputy general manager of Hughes Aircraft Company's Sensors and Communications Systems Segment. Shortly after Raytheon acquired Hughes, he joined Litton Industries where he held positions as vice president for Corporate Strategic Planning and vice president of Programs Management at Litton's Integrated Systems Division. After Northrop Grumman acquired Litton, Mr. Bowes led one of three business units in the newly created Navigation Systems Division of Northrop. John P. Stenbit (Director since 2004) Mr. Stenbit has had distinguished careers in both the private and public sectors, including participation as a member of Secretary Rumsfeld's staff in conjunction with the transformation of the entire Department of Defense during both of his terms of service. In his most recent position, Mr. Stenbit served as the Assistant Secretary of Defense Networks and Information Integration (NII), previously known as Command, Control, Communications, and Intelligence (C3I), at the Pentagon. He has served in several high profile positions for TRW, Inc., most recently in Fairfax, Virginia, where he was responsible for providing systems integration solutions to the government as an executive vice president and member of the Management Committee of TRW. Mr. Stenbit also serves in the following capacities: (i) as a member of SI International's (NASDAQ: SINT) board committees for compensation and corporate governance; (ii) as Chairman of the Governance & Nominating Committee, and member of the Compensation Committee and the Audit Committee of Cogent, Inc. (NASDAQ: COGT); (iii) on the Compensation and the Governance and Nominating Committee of Viasat (NASDAQ: VSAT); (iv) on technical/scientific boards advising the Secretary of Defense, Commander Strategic Command, the Director National Security Agency, and the Director National Reconnaissance Office. Mr. Stenbit serves as a member of the Board and Audit Committee of Loral Space and Communications Company (NASDAQ: LORL). Joseph B. Reagan (Director since 2004 - Chair of Compensation Committee) Dr. Reagan is a technology and senior management consultant to industry and the United States Government. He retired in 1996 after 37 years with the Lockheed Martin Corporation where he was a corporate officer and vice president and general manager in the Missiles and Space Company. Dr. Reagan was a director of Southwall Technologies Inc., an OTC public company, from October 1987 to May 1992 and from June 1993 to May 2006, where he served as Chairman of the Compensation Committee and as a member of the Audit Committee. From December 1998 to December 2004, Dr. Reagan was a director of the Naval Studies Board, an element of the National Research Council, where he served as Vice Chairman. From May 1992 until May 2004 he was a director of the Tech Museum of Innovation in San Jose. He was elected to the National Academy of Engineering in 1998 and was the Chairman of the Aerospace Section from 2005 to 2007. Robert J. Untracht (Director since 2002 - Chair of Audit Committee) Mr. Untracht is a consultant on financial reporting matters and teaches accounting classes at the University of California, Los Angeles. He formerly served as an Associate Professor of Accounting at the New York Institute of Technology in Old Westbury, New York. Earlier in his career, Mr. Untracht held positions with Ernst & Young LLP from 1981 to 1998 ranging from Manager to Audit Partner and National Director of Retail and Consumer Product Industry Services where he served clients in the retail, aircraft leasing and entertainment industries. He also was involved in the firm's financial restructuring group. From 1974 to 1981, at Deloitte & Touche LLP, Mr. Untracht served clients in the aerospace, defense and manufacturing industries. |
| The Right Team and the Right Structure: Board Members Our super-majority independent Board is highly experienced, seasoned, and committed to SM&A Dwight L. Hanger (Director since 2004 - Chairman of the Board) From 2000 to 2004 Mr. Hanger held the position of Vice President for Capgemini Ernst & Young, a provider of consulting, technology and outsourcing services. From 1969 to 2000, he worked as a management consultant with Ernst & Young LLC and Ernst & Whinney serving as a Partner 22 years. J. Christopher Lewis (Director since 1996) Mr. Lewis has been a general partner of Riordan, Lewis & Haden, equity investors in California based enterprises since 1981. Mr. Lewis has been involved in all aspects of private equity investing, including growth financings, acquisitions, and corporate advisory activities. Mr. Lewis also serves as a director of Tetra Tech, Inc. (NASDAQ: TTEK), and several private companies. Cathy L. McCarthy (Director since 2007) Ms McCarthy previously served as Executive Vice President, Chief Financial Officer and Secretary of PIA Merchandising, Inc., and as the Chief Financial Officer of The Giant Group, Inc., and in various capacities at Wherehouse Entertainment, Inc, including Chief Financial Officer. Ms McCarthy became an officer of the Company in November 2001 and served as President and COO from February 2006 to July 2007. Ms. McCarthy serviced as Executive Vice President, Chief Financial Officer and Corporate Secretary from September 2001 until February 2006. She also serves on the board of Thermage, Inc. (NASDAQ: THRM). General Peter Pace, USMC (Ret.) (Director since 2008) General Pace served for more than 40 years in the Marine Corps before retiring in October 2007 from the most senior position in the United States Armed Forces. As Chairman of the Joint Chiefs of Staff from 2005 until 2007, he served as the principal military advisor to the President of the United States, the Secretary of Defense, the National Security Council, and the Homeland Security Council during a time of tremendous change in the nation's strategic focus. Robert Robin (Director since 2005) Mr. Rodin holds the office of Chairman and CEO of RDN Group, a management consulting firm. From 1999 through October 2002, Mr. Rodin served as Chairman and CEO of eConnections, a provider of extended supply chain intelligence solutions. From 1991 through 1999, Mr. Rodin served as Chief Executive Officer and President of Marshall Industries. He remained in this position until the Company was acquired by Avnet, Inc. in 1999. He also serves on the board of Napster, inc. (NASDAQ: NAPS) |
| The Right Team and the Right Structure: History of Good Corporate Governance Super-majority independent board Full board elected annually All three key committees comprised solely of independent Directors All equity compensation plans approved by shareholders All Directors have exemplary attendance Separate roles of Chairman and CEO with an independent Chairman Regular sessions without management for the independent board as well as board committees Adoption of corporate governance guidelines Adoption of a code of ethics and whistleblower procedures Annual Director performance evaluation Continuous improvement via Risk Metrics review recommendations and NACD best practices or recommendations Annual Director education Compensation Committee continues to drive to pay for performance |
| Reality vs. Dissident Assertion |
| Reality vs. Dissident Assertion Reality: For the 8-year period from 1998 through Dec. 2006, the revenue CAGR was 8.2% 4 of the 9 years of the Myers' leadership experienced Y/Y revenue DECREASES Dissident Assertion: "History of predictable revenues." Revenues exclude discontinued operations 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Revenue 39.6 38.1 37.5 46.4 55.1 75.6 69 76.7 71.8 98.3 (3.8%) (1.6%) 23.7% 18.8% 37.2% 11.2% (8.7%) (6.4%) 36.9% Revenues Y/Y Change $ Millions |
| Reality vs. Dissident Assertion Reality: Current board has consistently provided responsible guidance to "Wall Street" analysts given the nature of the company's business Dissident Assertion: "The CEO and Board failed to provide reasonably accurate guidance." "Inadequate Board Oversight Led to Confusing, Negative Investor Calls That Damaged Shareholder Value" Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Analyst Estimate 16.49 17.92 19.12 18.7 21.26 22.09 22.28 22.36 Actual 17.72 18.28 17.03 18.77 23.62 25.57 25.06 24.09 Analyst Estimates vs. Actual Sales $ Millions |
| Reality vs. Dissident Assertion Reality: SG&A expenses have not been predictable and his leadership has shown no demonstrable ability to control SG&A expense growth Dissident Assertion : Myers' states that SG&A spending is predictable and that better board oversight could have controlled growth in SG&A expense Myers as Chairman & CEO *Excludes effects for PPI & Management Transitions 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007* SG&A 0.201 0.22 0.34 0.259 0.225 0.19 0.239 0.252 0.307 0.246 SG&A (ex. Stock-based Comp) as a percent of Sales |
| Reality vs. Dissident Assertion Reality: 2008 Guidance A necessary offsite, replacement of key personnel, and the addition of General Pace to head Strategic Advisors Dissident Assertion: EPS Guidance is not reconcilable and should enhance EPS by $0.07. Item Guidance Provided Inference Dollar Values Revenue Guidance 10% over $98.3M $108.1M $108.1M GPM Guidance 39% - 40% 39% - 40% 42.8M SG&A Guidance Decline vs. 28.1% in 2007 ex. PPI Approx. 27.5% ex. PPI (29.7M) PPI Earn-out $2.0M $2.0M (2.0M) Pre-tax Profit 11.1M Tax Rate 41.5% - 42% 41.5% - 42% (4.6M) Net Income $6.5M EPS (19.25M Shares Outstanding) $0.34 |
| Reality: Growth in staff does not immediately translate to a linear growth in revenues Hiring trends by the company are designed to: Replenish depleted bench Create a more robust bench Ramp up to run rate expected at the end of the year Dissident Assertion: Staff increases of ~30% should lead to revenue growth of at least 20% versus 10% CEO guidance. Reality vs. Dissident Assertion |
| Reality: There is no accounting methodology to remedy with regards to PPI. The structure of the transaction, which presumably Myers reviewed and approved when he signed the agreement, is what drives the accounting treatment. Dissident Assertions: Myers claims that the PPI accounting treatment can be "corrected" and "turned what should have been an accretive deal into a seriously dilutive one." Reality vs. Dissident Assertion |
| Reality: Current members of the board and management team have a 7.17% vested stake in the company Chairman Dwight Hanger did not sell shares as Myers' indicates Dissident Assertion: "8 of 9 current Board members feel no pain when stock falls." Reality vs. Dissident Assertion Name Title Amount and Nature of Beneficial Ownership (1) Percentage of Common Stock Owned McCarthy, Cathy L. President, Chief Executive Officer and Director 404,607 2.13% Pace, Peter President, Chief Executive Officer SM&A Strategic Advisors and Director 25,000 <1% Aguirre, Anna L. Senior Vice President, Human Resources - - Eckstaedt, James R. Executive Vice President, Finance, CFO and Secretary - - Reiners, Kevin L. Executive Vice President, Operations 32,379 <1% Dwight L. Hanger Director 54,227 <1% Bowes, William C. Director 101,864 <1% Lewis, J. Christopher Director 359,256 1.89% Reagan, Joseph B. Director 77,864 <1% Rodin, Robert Director 75,000 <1% Stenbit, John P. Director 112,818 <1% Untracht, Robert J. Director 121,959 <1% Total Current Named Executive Officers and Directors 1,364,974 7.17% (1) INCLUDES SHARES WHICH COULD BE ACQUIRED UPON THE EXERCISE OF STOCK OPTIONS EXERCISABLE WITHIN 60DAYS OF MARCH 14, 2008 |
| Proposed Slate Adds No Value Steven Myers Excessive Compensation - Myers drew a $1 million annual compensation for years that was criticized by industry observers as disproportionate and excessive. Unnecessary Expenditures - Myers spent nearly $1.1 million of shareholder money so he could fly private jets Short-term Outlook - He appears to be a short-term player who is selling, not buying shares Poor Use of Cash - Four failed acquisitions leading to $95 million in losses Loss of Talent - Myers track record clearly demonstrated a continual loss of critical talent and intellectual property resulting in the development of five competing firms Poor Track Record -While Myers was Chairman and CEO the company showed a lack of an strategic direction, inconsistent growth in revenue and earnings Kenneth Colbaugh Poor Guidance - Together with Myers provided guidance that was substantially missed, laying the groundwork for a severe plunge in the price of SM&A's stock, which eventually traded as low as 62 cents a share. Poor Due Diligence - Key participant in failed acquisitions leading to millions in losses Started Competing Company - Thirteen months after the IPO, Colbaugh resigned and formed a competitor that raided executives from the company. One result: a costly lawsuit SM&A filed to protect its trade secrets. No Public Company Board Experience - Except for his brief term on the SM&A board, Colbaugh has no other public company board experience |
| Proposed Slate Adds No Value Al Nagy Oversight of Excessive Compensation - Nagy served as head of the compensation committee when Myers was drawing a $1 million in compensation Received Lucrative Consulting Agreements - Nagy enjoyed lucrative consulting agreements with SM&A on numerous occasions No Public Company Board Experience - Nagy is not currently serving as a director at a publicly traded U.S. company Previously Replaced by Myers - Myers in fact replaced him with one of the independent board members Myers wishes to unseat today. Redge Bendheim No Public Company Board Experience - Bendheim has no experience serving on the board of a publicly traded company and, as a retired tax partner, has no relevant or current experience in public company governance, audit requirements or Sarbanes-Oxley requirements. Limited or No Public Company Controls Experience - There is no evidence Bendheim has the kind of audit or internal controls experience at a publicly traded company that an audit committee member requires. |
| Steven Myers: Summary Underperformance of stock price Stock price from IPO to departure in 2007 was DOWN 41% while Russell 2000 was UP 80% during that same time frame He has no demonstrable ability to grow revenues or decrease SG&A expense 4 of 9 years experiencing declines in revenues 8-year Revenue CAGR ended December 2006 of 7.7% In 1998, SG&A as a percent of sales was 20.1% versus 32.5% for the year ended December 2006 No demonstrable ability to effectively deploy cash efficiently Acquisitions by Myers resulted in $95 million in losses History of executives departing the Company and starting up competing firms Ken Colbaugh, a member of Myers' board slate started a competing firm after departing from the board in 1999 A minimum of 17 senior executives were either terminated or departed the Company and now work with competing companies Myers' is not seeking four board seats, he is seeking control Additional change to the leadership composition of the company will have significant ramifications |
| Why Support Our Board Strategic plan for growth and profitability Diversified product portfolio Increased addressable market Sound acquisition strategy Stabilized senior leadership team is aligned and delivering Increased quarterly revenues Decreased SG&A as a percent of revenue Improved employee morale Board incumbents are: Independent, experienced, and committed to the future of SM&A Integral members of each of the three key committees |
| Vote the WHITE proxy today Let your Board and Senior Management team take SM&A to the next level and continue to steer the company to success We represent ALL stockholders. |
| Appendix |
| The Foundation: Our Team Cathy L. McCarthy - President & Chief Executive Officer since July 2007 Ms McCarthy previously served as Executive Vice President, Chief Financial Officer and Secretary of PIA Merchandising, Inc., and as the Chief Financial Officer of The Giant Group, Inc., and in various capacities at Wherehouse Entertainment, Inc, including Chief Financial Officer. Ms McCarthy became an officer of the Company in November 2001 and served as President and COO from February 2006 to July 2007. Ms. McCarthy serviced as Executive Vice President, Chief Financial Officer and Corporate Secretary from September 2001 until February 2006. She also serves on the board of Thermage, Inc. (Nasdaq: THRM). General Peter Pace, USMC (Ret.) - President & Chief Executive Officer, Strategic Advisors Incorporated since January 2008 General Pace served for more than 40 years in the Marine Corps before retiring in October 2007 from the most senior position in the United States Armed Forces. As Chairman of the Joint Chiefs of Staff from 2005 until 2007, he served as the principal military advisor to the President of the United States, the Secretary of Defense, the National Security Council, and the Homeland Security Council during a time of tremendous change in the nation's strategic focus. Kevin L. Reiners - Executive Vice President, Operations since August 2007 Mr. Reiners served from August 2002 to August 2005 as Vice President of Programs for Lockheed Martin Space Systems Company. In this capacity, he was responsible for the implementation of Program Management processes and disciplines for all Space Systems programs. From July 2000 to August 2002 Mr. Reiners served as Business Director for Lockheed Martin Space Systems Company on the Terminal High Altitude Area Defense (THAAD) program. James R. Eckstaedt - Executive Vice President, Finance and Chief Financial Officer since January 2008 Mr. Eckstaedt previously held the position of Executive Vice President and Chief Financial Officer of Sage Software, Inc. from 1997 to 2007. Prior to Sage Software, Mr. Eckstaedt was the Chief Financial Officer of the Cerplex Group, Inc., a provider of outsourcing services for the computer industry. Before that, he held various finance positions at Western Digital Corporation. Anna Aguirre - Senior Vice President, Human Resources since January 2008 A seasoned HR professional with over 18 years of experience, most recently Ms. Aguirre served five years as the VP Global Human Resources and Facilities at Iomega Corporation, a leading provider of data storage products. New Management Team Has Implemented a Strategy That is Showing Results |
| Business Considerations Resource Allocations Feedback Loop Client Segmentation = Gap Between Needs & Capability Boeing Accenture Mature Experienced Novice Rockwell L-3 Cahaba Pac Sci Increased Shareholder Value Increased Client Value Strategic Business Intelligence Markets Account Executives Products Associates A&D A&D A&D SI/IT SI/IT SI/IT Healthcare Healthcare New Markets (C&E, Fin Svcs) Increased Associate Opportunity A Broader Focus & Stronger Strategy: Vertical Market Expansion & Client Segmentation |
| Launched in January 2008 and led by Former Chairman of the Joint Chiefs of Staff General Peter Pace, USMC (Ret.) SM&A Strategic Advisors, Inc Raise SM&A profile with current and potential clients Gain access and strategic positioning at client senior executive levels Attract executive-level thought leadership Strategic Business Intelligence Enable a strategy-driven approach to market expansion, product development, long range planning Develop thought leadership in markets SM&A serves Enabled by Knowledge Management (KM) When General Pace chose SM&A in January 2008, he told the board that his decision to join SM&A was based on the quality of the current board, his confidence in the current management team and the direction articulated in the 2008 strategic plan. Pursue Win Perform Client Project Strategic Advisors: Overview |
| Competition Management: Overview SM&A Competition Management provides the people, process, tools, and leadership to WIN structured competitive procurements. Since 1982, SM&A has an 85% Win rate on over 1000 proposals worth more than $340 billion. Service Offerings: Opportunity win strategy Capture management Proposal management Volume Leads (Technical, Cost, Past Performance, Management, IMP/IMS) Price-to-Win Orals presentation leadership Author support Client team typically consists of 10 - 200 engineers and IT specialists & managers Proposal process typically requires 3 - 12 months of intense activity at clients site SM&A has never had a proposal cancelled prior to completion Pursue Win Perform Client Project |
| Program Services: Overview Pursue Win Perform Client Project SM&A Program Services solutions keep programs on schedule, under budget, and increases the probability of successful program completion. Our experience in project management and customer communications on 150+ programs worth over $1 trillion provides SM&A a comprehensive understanding of the program delivery environment. Service Offerings: Capability Assessments QuickStart(r) for proposal-to-program transition Milestone Success to meet cost, schedule, and design requirements AwardFeeTM to maximize profits Leadership and Technical Services for leadership, mentoring and specialty support Client team typically consists of between 100 to 2000 Engineers and Business professionals Client program duration typically lasts between 2 to 10 years |
| Safe Harbor Statement THIS DOCUMENT DOES NOT RECOMMEND THE PURCHASE OR SALE OF ANY SECURITY. UNDER NO CIRCUMSTANCES IS THIS PRESENTATION TO BE USED OR CONSIDERED AS AN OFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITY. ALL STOCKHOLDERS OF SM&A ARE ADVISED TO READ THE DEFINITIVE PROXY STATEMENT AND OTHER DOCUMENTS RELATED TO THE SOLICITATION OF PROXIES BY SM&A FOR USE AT THE 2008 ANNUAL MEETING OF STOCKHOLDERS OF SM&A. THEY CONTAIN IMPORTANT INFORMATION REGARDING THE ELECTION OF DIRECTORS AND OTHER MATTERS. THE DEFINITIVE PROXY STATEMENT AND FORM OF PROXY HAVE BEEN MAILED TO STOCKHOLDERS OF RECORD OF SM&A ALONG WITH OTHER RELEVANT DOCUMENTS. THEY ARE AVAILABLE AT NO CHARGE ON THE SEC'S WEB SITE AT HTTP://WWW.SEC.GOV. IN ADDITION, SM&A WILL PROVIDE COPIES OF THE DEFINITIVE PROXY STATEMENT WITHOUT CHARGE UPON REQUEST. Some statements made in this document refer to future actions, strategies, or results that involve a number of risks and uncertainties. Any number of factors could cause actual results to differ materially from expectations, including a shift in demand for SM&A's Competition Management and Performance Assurance services; fluctuations in the size, timing, and duration of client engagements; delays, cancellations, or shifts in emphasis for competitive procurement activities; declines in future defense, information technology, homeland security, new systems, and research and development expenditures in the aerospace and defense industry, SIIT and other risk factors listed in SM&A's SEC reports, including the report on Form 10-K for the year ended December 31, 2007. Actual results may differ materially from those expressed or implied. The company does not undertake any duty to update forward-looking statements. Please see risk factors in SM&A's 10-K and other SEC filings |