Stewart & Stevenson (S&S) Tactical Vehicle Systems
2.5
Closed transaction May 25, 2006
Closed transaction May 25, 2006
Cash merger – $792M, net of cash acquired
AH Pro Forma total debt outstanding –$919M
Transaction<br/>background
Family of Medium Tactical Vehicles (FMTV)
Family of Medium Tactical Vehicles (FMTV)
205 ton standard cargo vehicles
5 ton standard cargo vehicles
5 ton tractor vehicles
8 metric ton load handling system vehicles
10 ton long cargo vehicles
Products
US Army (85%)
US Army (85%)
UK Ministry of Defense
Customers
Sealy, TX
Sealy, TX
200 acre campus, 800,000 ft2 facility
1,100 employees
Sterling Heights, MI
Engineering and design center
22,500 ft2 facility
Guildford and Fareham, UK
5,000 m2 facility
Locations
Competitors
Domestic
Domestic
Oshkosh
International
DaimlerChrysler
Tatra
S&S Reliability Exceeds Requirements and the Competition
12,492
Stewart & Stevenson is unsurpassed in reliability
Mean Miles Between Hardware Mission Failures (MMBHMF)
FMTV A1CR
FMTV A1
FMTV A0
#1
#2
#3
Tactical vehicles of other companies
Required MMBHMF
Demonstrated MMBHMF
TECOM Test #1-VG-120-MTV-072, 6 vehicles, 120k total miles tested
TECOM Test #1-VG-120-MTV-037, 5 vehicles, 120k total miles tested
TECOM Test #1-VG-120-MTV-019, 28 vehicles, 488k total miles tested
3 vehicles, 57k total miles tested
2 vehicles, 10k total miles tested
9 vehicles, 180k total miles tested
TECOM = Test and Evaluation Command
AH Revenue Forecast
2006
2005
Aerospace and
Aerospace and
Products
Mobile Security
2007
$ Million
Actual
Forecast
28
Excluding SVC
1,315-1,325
2,045-2,085
1,189
315-335
315-335
309
120-140
120-140
139
1,750-1,800
3,400-3,600
2,480-2,560
1,637
Including SVC
AH Revenue Stability
2008
Long-term
Long-term
Long-term
Long-term
Short-medium
Short-medium
2007
Percent
Forecast
28
46
3
47
32
41
75
41
53
13
12
22
15
1. Short-medium term programs are funded annually and have more than one qualified supplier
1. Short-medium term programs are funded annually and have more than one qualified supplier
2. Long-term predictability are businesses where we have an installed base of users of our products and a revenue stream based on replacement and upgrades
AH historically had limited Long-term revenue visibility
AH historically had limited Long-term revenue visibility
2006
Excluding SVC
Including SVC
Aerospace and Defense Group Revenue Forecast
27
3
2007
35
44
3
53
23
OEM
Individual equipment
Ground Vehicle <br/>Survivability
3
2008
53
2006
2006
Aerospace and others
665
Forecast
17
18
21
Percent
