Port & Maritime SecurityInternational Cooperation & Technology Development

Al Sargeant

Vice President / General ManagerCubic Corporation

May 21, 2009

Port & Maritime SecurityInternational Cooperation & Technology Development

Al Sargeant

Vice President / General ManagerCubic Corporation

May 21, 2009

Cubic CorporationCubic Corporation

Founded in 1951 in San Diego, Calif.

Public since 1959 – NYSE: CUB

Employs more than 7,000 people worldwide

$881 million annual sales (FY 2008)

$1.8 billion total backlog (FY End 2008)

Business Segments: Defense Transportation

Transportation SystemsTransportation Systems

Cubic CorporationCubic Corporation

What we do Provide automated fare

collection systems and services that maximize revenue collection

Milestones Delivered more than 400

projects on 5 continents totaling more than $3.7 billion in installed systems

CALIFORNIA• Antelope Valley• Culver City• Foothill• Gardena• LA DOT• Los Angeles• Long Beach• Montebello• Monterey• Norwalk• Ontario• San Diego• San Francisco• Santa Clarita• Santa Monica• Torrance• West Covina• Van Nuys

FLORIDA• Jacksonville• Miami

GEORGIA• Atlanta

ILLINOIS• Arlington Heights• Chicago

KENTUCKY• Louisville

United States

International

• Hamilton• Kingston• Niagara Falls• Peterborough • Sudbury• Surrey• Windsor

MAINE• Bradford• Brockton

Maryland• Baltimore• Hagerstown

MICHIGAN• Grand Rapids

MINNESOTA• Minneapolis/ St. Paul

NORTH CAROLINA• Charlotte

NEW JERSEY• Bayone• Hoboken• Jersey City• Lindenwold• Maplewood• North Cape May• Passaic

AUSTRALIA• Brisbane• Sydney

• Barrie• Brantford• Burlington• Burnaby• Edmonton• Hamilton• Vancouver• Winnipeg

CANADA

CHINA• Guangzhou• Hong Kong• Shanghai

• Aalborg• Aarhus• Herning• Horsens• Odder

• Ribe• Ringkobing• Skive• Vejle• Viborg

DENMARK

FRANCE• Bordeaux• Gironde• Rouen

GERMANY• Freiburg• Hanau• Rottweil

ITALY• Modena

MEXICO• Monterey

SINGAPORE

SWEDEN• Avlsborg• Falkenberg• Goteborg• Hallands• Hassleholm• Jonkoping• Karlskrona• Kronoberg• Lund• Orebro• Ostergotlands• Ostgota• Skane• Skaraborg• Skovde• Vanersborg• Vaxjo

UK• Aylesbury• Cardiff• Glasgow• Leeds• Liverpool• London• Norwich• Plymouth• Tonbridge

MALAYSIA• Kuala Lumpur

NEW YORK• Port Authority NY/NJ • NYC Transit• JFK Air Train

TENNESSEE• Chattanooga

TEXAS• Austin

WASHINGTON• Spokane

PUERTO RICO• San Juan

Transportation Systems

Worldwide Installations Transportation Systems

Worldwide Installations

Global Leadership in DefenseGlobal Leadership in Defense

DefenseDefense

Training Systems World’s #1 Provider of Air and Ground Combat Training Systems Delivered over 70 Combat Training Systems at 55 sites worldwide

Providing the U.S. Army’s only validated Virtual Small Arms Trainer

Support Services Providing mission-critical support services at approximately

130 locations in 20 nations

Supporting Joint and Combined clients

Communications Leading provider of Combat Search-and-Rescue Systems for U.S.

and NATO forces (PLS)

Air & Ground

Combat Training Systems Air & Ground

Combat Training Systems AIR COMBAT

TRAINING SYSTEMS

UNITED STATES

ALASKA

• Eielson AFB

• Elmendorf AFB

ARIZONA

• Luke AFB (P5 CTS / TCTS)

• Yuma MCAS

CALIFORNIA

• Ft. Irwin NTC/AW

• Miramar MCAS

FLORIDA

• Eglin AFB

• Homestead AFRB

• Key West NAS (P5 CTS / TCTS)

• Tyndall AFB

IDAHO

• Mountain Home AFB

MICHIGAN

• Alpena AKITS

MISSISSIPPI

• Gulfport CRTC (P5 CTS / TCTS)

NEVADA

• Fallon NAS

• Nellis AFB

NEW MEXICO

• Cannon AFB

• Holloman ACMI

NORTH CAROLINA

• Cherry Point MCAS

• Seymour Johnson AFB

SOUTH CAROLINA

• Beaufort MCAS

• Shaw AFB

VIRGINIA

• NAS Oceana, Virginia Beach

WISCONSIN

• Volk Field CRTC

INTERNATIONAL

AUSTRALIA

• Royal Australian Air Force

CANADA

• Bagotville Quebec ACM

• Cold Lake Alberta ACMI

EGYPT

• Egypt EAF

ITALY

• Decimomannu AB

JAPAN

• Kadena AB

• Misawa AB

NETHERLANDS

• Netherlands RNLAF

Philippines

• Clark AFB

POLAND (P5 CTS / TCTS)

SAUDI ARABIA

• Saudi Arabia RSAF

SOUTH KOREA

• Osan AB

• Kunsan AB

TAIWAN

• Taiwan TAF

THAILAND

• Thailand RTAF

UNITED KINGDOM

• North Sea Range NSR

• United Kingdom RAF

P5 CTS/TCTS

PLANNED DELIVERIES

ARIZONA

• MCAS Yuma

CALIFORNIA

• NAS Lemoore

FLORIDA

• Eglin AFB

• Tyndall AFB

• Homestead ARS

GEORGIA

• Savannah CRTC

IDAHO

• Mountain Home AFB

MICHIGAN

• Alpena CRT

NEVADA

• NAS Fallon

NEW MEXICO

• Cannon AFB

NORTH CAROLINA

• Seymour Johnson AFB

• MCAS Cherry Point

• MCAS Beaufort

SOUTH CAROLINA

• Shaw AFB

UTAH

• Hill AFB

VIRGINIA

• Langley AFB

• NAS Oceana

WISCONSIN

• Volk Field

LAND-BASED

TRAINING SYSTEMS

CTCs& MOBILE SYSTEMS

AUSTRALIA

• Land 134 CTC-LIS

CANADA

• WES: Weapons Effects Simulation

(Wainwright and Gagetown)

PRECISION GUNNERY

SYSTEMS (PGS)

• CANADA

• SPAIN

MILES PRODUCTS

UNITED STATES

ALABAMA

• Birmingham (Alabama Power

Company)

ALASKA

• Fort Richardson (US Army)

• Eielson AFB (USAF)

ARIZONA

• Palo Verde - Tonopah

CALIFORNIA

• Camp Pendleton (USMC)

• Camp Parks (National Guard)

• Camp Roberts (National Guard)

• Fort Irwin (NTC): MILES IWS

Planned Delivery

• Los Alamitos (National Guard)

• Pomona (Raytheon Technical

Services)

• San Diego (Fleet and Industrial

Supply Center)

• 29 Palms (USMC)

COLORADO

• Peterson AFB (USAF)

FLORIDA

• Eglin AFB (USAF)

• Winter Park (USAF)

• Camp Blanding (US Army)

• Florida City (Florida Power &

Light Company)

GEORGIA

• Fort Benning (US Army)

• Fort Stewart (US Army)

HAWAII

• Hickam AFB (USAF)

• Schofield (US Army)

IDAHO

• Gowen Field (National Guard)

• Mountain Home AFB (USAF)

ILLINOIS

• Exelon Generation Company -

Clinton

• Braidwood

• Cordova

• Byron

• Morris

• Marseilles

• McConnell AFB (USAF)

• Scott AFB (USAF)

KANSAS

• Burlington (Wolf Creek Nuclear

Operating Corp.)

KENTUCKY• Ft. Knox (US Army)

LOUISIANA

• Ft. Polk (US Army)

MARYLAND

• Constellation Generation Group -

Lusby

MONTANA

• Malstrom AFB (USAF)

• Ft. Harrison (National Guard)

NEBRASKA

• Brownville (Nebraska Public

Power District)

NEVADA

• Indian Springs AF, Auxiliary Field

(USAF)

• Nellis AFB (USAF)

NEW JERSEY

• Exelon Generation Company -

Forked River

• Fort Dix (US Army)

• McGuire AFB (USAF)

NEW MEXICO

• Albuquerque (Honeywell Dept.

of Energy)

NEW YORK

• Buchanan (Energy Nuclear Northeast)

NORTH CAROLINA

• Camp Lejeune (USMC)

• Camp Lejeune (Coast Guard)

• Raleigh (Progress Energy

Carolinas, Inc.)

NORTH DAKOTA

• Minot AFB (USAF) OREGON

• Biak Training Center (National Guard)

• Camp Rilea (National Guard)

PENNSYLVANIA

• Exelon Generation Company - Delta

• Middleton, PA

• Pottstown, PA

• Shippingport (Beaver Valley

Nuclear Power Plant)

SOUTH CAROLINA

• Charleston AFB (USAF)

TEXAS

• Camp Bullis (USAF)

• Lackland AFB (USAF)

• Randolph AFB (USAF)

UTAH

• Hill AFB (USAF)

• Tooele (USAF)

OKLAHOMA

• Tinker AFB (USAF)

VIRGINIA

• MCB Quantico (USMC)

• McLean (CIA)

WASHINGTON

• Ft. Lewis (US Army)

• Yakima Training Range

(National Guard)

WEST VIRGINIA

• Martinsburg (WV National Guard)

WYOMING

• Warren AFB (USAF)

INTERNATIONAL

• AFGHANISTAN

• AUSTRALIA

• BRAZIL

• CANADA

• CROATIA

• DENMARK

• FINLAND

• FRANCE

• GERMANY

• GUAM

• INDIA

• INDONESIA

• IRELAND

• ISRAEL

• JAPAN

• KUWAIT

• KOREA

• LATVIA

• MACEDONIA

• NEW ZEALAND

• THE NETHERLANDS

• PHILIPPINES

• SINGAPORE

• SWEDEN

• SWITZERLAND

• THAILAND

• TURKEY

• UNITED KINGDOM

KEY:

AB Air Base

ACTS - Air Combat

Training Systems

AFB - Air Force Base

CRTC - Combat Range

Training Center

TAF - Taiwan Air Force

NAS - Naval Air Station

MCAS - Marine Corps

Air Station

RAF - Royal Air Force

RTAF - Royal Thai Air Force

RNLAF - Royal Netherlands

Air Force

GERMANY

• CMTC / JMRC, US Army

HUNGARY

• Hungarian Army CTC

ISRAEL

• MATBAT National Training Center

KOREA

• Korean Combat Training System

ROMANIA

• Romanian Armed Forces

SINGAPORE

• Battlefield Instrumentation System

SLOVAKIA

• Armed Forces of the Slovak

Republic CTC

UNITED KINGDOM

• AWES: Area Weapons Effects

Simulator

(UK – SPTA and Canada - BATUS)

UNITED STATES

ALASKA ATREP

• Ft. Wainwright

• Ft. Richardson

• Eielson AFB

• Elmendorf

GEORGIA

• Ft. Benning

HAWAII

• Schofield Barracks

KOREA

• Camp Casey/EUSA

LOUISIANA

• JRTC: Joint Readiness Training

Center, Ft. Polk

NEVADA / CALIF.

• NTC: National Training Center /

Air Warrior

TEXAS

• Ft. Bliss

WASHINGTON

• Ft. Lewis

Mission Support ServicesMission Support Services

X

I

I

E

I

I

I

E

I

X

xOperations& Analysis

Maintenance

& Logistics

Training

Development TrainingExecution

Full-Spectrum Support, from Planning to Execution

Communications Communications

Innovative Communications and Intelligence Solutions

SummarySummary

Significant contributor to national and international customers

A strong, well-established company

Global presence and commitment

Relationship-driven strategy ... Long-term commitment to customers

Innovation. Leadership. Success.

Maritime SecurityAddressing a Global Problem -

International Cooperation Required

Maritime SecurityAddressing a Global Problem -

International Cooperation Required

11 million containers enter the US annually Represents 90% of all goods imported into the US

Theft in the global supply chain accounts for loss of $50B per year 84% of US containers thefts occur on rail system

Container security market is expected to grow by 60x over the next 7 years from $70M in 2008 to over $4B by 2012

Customers are interested in a solution that provides physical security, keyless entry, breach notification and global tracking capability

Regulatory EnvironmentRegulatory Environment Customs Trade Partnership Against Terrorism (C-TPAT)

a partnership with the trade community for securing global supply chains and facilitating legitimate cargo and conveyances

Container Security Initiative (CSI) increase security for containerized cargo shipped to the United States to address

the threat to border security and global trade posed by the potential for terrorist use of a maritime container to deliver a weapon.

Security & Accountability for Every (SAFE) Port Act prevent terrorist weapons from being transported to the US by requiring both

importers and carriers to submit additional cargo information to CBP before the cargo is brought into the United States by vessel

Secure Freight Initiative International Container Security project - using an integrated suite of scanning

technology including radiation portal monitors, non-intrusive imaging equipment, and optical character recognition systems in foreign ports to inspect cargo bound for the United States.

Secure Filing “10+2” The Security Filing, commonly known as the “10+2” initiative, is a Customs and

Border Protection (CBP) regulation that requires importers and vessel operating carriers to provide additional advance trade data to CBP.

Cubic’s Maritime Services Cubic’s Maritime Services Cubic’s Maritime Services Cubic’s Maritime Services

Security consulting and process improvement Security consulting and process improvement expertise expertise

U.S. and International Maritime Security regulatory U.S. and International Maritime Security regulatory compliancecompliance

Highly trained technology systems integration teamHighly trained technology systems integration team Worldwide business accessWorldwide business access U.S. Government and international relationshipsU.S. Government and international relationships

As a recognized leader in Security, both As a recognized leader in Security, both Defense and Transportation, Cubic fully Defense and Transportation, Cubic fully leverages its people’s knowledge, leverages its people’s knowledge, influence, expertise in the following influence, expertise in the following areas:areas:

Cubic’s Partnership with PortsCubic’s Partnership with PortsCubic’s Partnership with PortsCubic’s Partnership with Ports

On-site maritime security leadership when needed, On-site maritime security leadership when needed, where needed.where needed.- Singular 24/7 worldwide direct access and supportSingular 24/7 worldwide direct access and support

- Task organized consultancy operations teams selected from Cubic’s extensive Task organized consultancy operations teams selected from Cubic’s extensive pool of maritime experts: Commercial port operations leaders, US Customs and pool of maritime experts: Commercial port operations leaders, US Customs and Border Protection, US Coast Guard and US Federal Law Enforcement.Border Protection, US Coast Guard and US Federal Law Enforcement.

Solutions developed and implemented using well-Solutions developed and implemented using well-defined timelinesdefined timelines

Access to senior Subject Matter ExpertsAccess to senior Subject Matter Experts Full utilization of Cubic’s extensive technology Full utilization of Cubic’s extensive technology

capability to include research and development of capability to include research and development of new technologies, and critical vetting.new technologies, and critical vetting.

The key to any partnership is delivering real business The key to any partnership is delivering real business value. value.

Customers Business NeedsCustomers Business NeedsCustomers Business NeedsCustomers Business Needs

Secure, efficient, high velocity throughput of goods Secure, efficient, high velocity throughput of goods and materials to ensure speed to market and and materials to ensure speed to market and retention of industry leadership positionretention of industry leadership position

Improved overall customer and governmental Improved overall customer and governmental satisfaction (demonstrated by repurchase intention, satisfaction (demonstrated by repurchase intention, referrals and compliance)referrals and compliance)

Reduction of unnecessary costs and disruptions Reduction of unnecessary costs and disruptions through effective Continuity of Operations planning through effective Continuity of Operations planning and implementationand implementation

Cubic recognizes the clients continued Cubic recognizes the clients continued need to sustain and grow its maritime need to sustain and grow its maritime capability by achieving:capability by achieving:

Organization of American States (OAS)

Organization of American States (OAS)

Seaport security assessments, training and exercises in the independent Caribbean island nations of Trinidad & Tobago, and Saint Vincent & The Grenadines

Evaluate compliance with International Ship and Port Facility Security Code (ISPS), the U.S. Maritime Security Act (MSA) and the U.S. Container Security Initiative (CSI).

Working with Inter-American Committee against Terrorism

Evaluating international user needs relative to throughput

Intermodal Supply ChainIntermodal Supply Chain

Multiple customers… Commercial and Government Point of origin and destination Enroute (rail, ship, truck, etc.) Ports and warehouses

…Cubic’s Solutions Physical security Tracking Monitoring Sensing

Operational ConceptOperational Concept

1. Container#2. Device#3. Date/Time/Seal4. Activity Log

PORT OF DESTINATIONPORT OF ORIGIN 24 hr. Manifest

ORIGIN DESTINATION

Management and Command Center

SAILS TO DESTINATION PORT

1. Container#2. Manifest 3. Date/Time/Seal4. “10+2” Data

1. Container#2. Device#3. Date/Time/Seal4. Activity Log

Customs and Border Protection

Container Security SolutionsContainer Security Solutions

Maritime “smart lock” used as a delivery platform

“Tamper proof“ Keyless entry Electronic log of access Validation of who has access Electronic Manifest History of container movement Near real-time tracking