IDEAS POWERING FREEDOM CORPORATE OVERVIEW Exhibit 99.1 |
Forward Looking Statements 1 Certain information contained in this report should be considered “forward-looking statements” as defined by Section 21E of the Private Securities Litigation Reform Act of 1995. All statements in this report other than historical information may be deemed forward-looking statements. These statements present (without limitation) the expectations, beliefs, plans and objectives of management and future financial performance and assumptions underlying, or judgments concerning, the matters discussed in the statements. The words “believe,” “estimate,” “anticipate,” “project” and “expect,” and similar expressions, are intended to identify forward- looking statements. Forward-looking statements involve certain risks, estimates, assumptions and uncertainties, including with respect to future sales and activity levels, cash flows, contract performance, the outcome of litigation and contingencies, environmental remediation and anticipated costs of capital. A variety of factors could cause actual results or outcomes to differ materially from those expected and expressed in our forward- looking statements. Important risk factors that could cause actual results or outcomes to differ from those expressed in the forward-looking statements are described in the section “Risk Factors” in Item 1A of our Annual Report to the Securities Exchange Commission on Form 10-K for the fiscal year ended November 30, 2013. Additional risk factors may be described from time to time in our future filings with the Securities and Exchange Commission. 2014 Annual Shareholder Meeting– Rev K 13Mar2014 |
GenCorp At A Glance Business Portfolio Tactical Systems Real Estate Advanced Programs Space and Launch Systems Missile Defense and Strategic Systems 2 SSST SM-3 Antares Dreamchaser X-51 2013 Revenues of $1,383.1M Aerojet Rocketdyne – $1,377.4M Easton – $5.7M Key Capabilities Enabling Space and Launch Systems Tactical Systems Missile Defense and Strategic Systems Advanced Programs Significant Real Estate Holdings 2014 Annual Shareholder Meeting– Rev K 13Mar2014 |
Steadily Improving Financial Performance 3 Net Debt (3) ($ in millions) Adjusted EBITDAP (1) ($ in millions) Net Sales ($ in millions) Cash & Cash Equivalents (2) ($ in millions) Total Contract Backlog ($ in millions) Funded Backlog ($ in millions) $795.4 $857.9 $918.1 $994.9 $1,383.1 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 FY09 FY10 FY11 FY12 FY13 $96.4 $110.7 $115.4 $110.9 $155.6 $50 $70 $90 $110 $130 $150 $170 FY09 FY10 FY11 FY12 FY13 $1,191 $1,377 $1,422 $1,526 $2,523 $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500 $2,750 2009 2010 2011 2012 2013 $811 $804 $902 $1,018 $1,664 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 2009 2010 2011 2012 2013 $126.3 $208.2 $188.0 $162.1 $197.6 $0 $50 $100 $150 $200 $250 2009 2010 2011 2012 2013 $312.3 $188.5 $138.4 $86.6 $501.6 $0 $100 $200 $300 $400 $500 $600 2009 2010 2011 2012 2013 (1) Non-GAAP Measure. The Company defines Adjusted EDITDAP as GAAP income before income taxes adjusted by interest expense, interest income, depreciation and amortization, retirement benefit plan costs and unusual items. (2) Includes cash and cash equivalents, restricted cash and marketable securities. (3) Non-GAAP Measure. Defined as debt principal less cash and marketable securities. 2014 Annual Shareholder Meeting– Rev K 13Mar2014 |
Balanced Capital Deployment Strategy CAPITAL STRUCTURE • MERGERS & ACQUISITIONS SHAREHOLDERS INTERNAL INVESTMENTS • • INTEGRATED CAPITAL DEPLOYMENT PLAN 4 RETURN CASH TO Planning (ERP) Enterprise Resource • • Surety Bonds utilized to generate more liquidity Increased Research & Development 2013 $43M 2012 $30M 2011 $27M Rocketdyne business acquisition completed June 2013 Share Repurchase authorized for $75M Flexible Capital Structure allowing use of value creation tools • |
Aerojet Rocketdyne Business Strategy DELIVER excellent performance in our core business DRIVE initiatives across all aspects of the operating model to maximize our competitive posture CREATE value by enhancing and expanding the core and diversifying into broader markets 5 2014 Annual Shareholder Meeting– Rev K 13Mar2014 |
6 Aerojet Rocketdyne: Diversified and Balanced Portfolio Aligned With Government Priorities Major Customers (1) Lockheed Martin Raytheon All Other ULA Portfolio Attributes: Cost Reimbursable End Users (1) MDA Army NASA Air Force All Other Navy Contract Type Fixed Price Other (1) Based on total GenCorp revenue. 2014 Annual Shareholder Meeting– Rev K 13Mar2014 Missile defense Access to and exploration of space Tactical weapon systems 49% 5% 46% 21% 19% 20% 18% 15% 7% 18% 23% 32% 27% Leading positions in core markets Strong and growing backlog Compelling “technology pipeline” to fuel further expansion and growth Exceptionally high percentage of follow-on business High revenue visibility |
Substantial Real Estate Holdings GenCorp owns over 12,000 acres of land in the Sacramento metropolitan region 6,000 acres (Easton) have been targeted for monetization Major development opportunity with desirable in-fill location along a key growth corridor Long-term regional demographics favor population and job growth Development Agreement for Easton Place & Glenborough now completed with significant progress on others Real Estate asset provides GenCorp additional financial flexibility 7 Business Overview Regional Context Easton Projects Acres Environmentally Unrestricted Environmentally Restricted Total Entitled Limited Entitlement Glenborough & Easton Place 1,043 349 1,392 1,392 – Rio del Oro at Easton 1,818 491 2,309 – 2,309 Westborough 1,387 272 1,659 – – Hillsborough 532 97 629 – 629 Office Park and Auto Mall 47 8 55 55 - Total Easton 4,827 1,217 6,044 1,447 2,938 2014 Annual Shareholder Meeting– Rev K 13Mar2014 |
Easton Represents a Value Creation Opportunity 8 GenCorp’s Opportunity Attractive master planned community between San Francisco and Lake Tahoe Wide range of property and product types Glenborough and Easton Place fully entitled Long lead times for competition Flexible options on monetization tied to market dynamics and demand Easton’ s Focus Position Easton to meet evolving market demands Pursuing full entitlement vested by development agreements on all projects Establish Easton as one of the best master planned communities in California Setting quality and land use standards to drive value creation 2014 Annual Shareholder Meeting– Rev K 13Mar2014 |
Summary Large, diversified and well positioned program portfolio Strong revenue and backlog visibility Extended history of growth, increased profitability and strong cash flow generation Substantial real estate holdings additive to financial flexibility Demonstrated Capital Deployment Strategy 9 2014 Annual Shareholder Meeting– Rev K 13Mar2014 |