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Port & Maritime Security International Cooperation & Technology Development Al Sargeant Vice President / General

Port & Maritime Security International Cooperation & Technology Development Al Sargeant Vice President / General Manager Cubic Corporation May 21, 2009. Cubic Corporation. Founded in 1951 in San Diego, Calif. Public since 1959 – NYSE: CUB Employs more than 7,000 people worldwide

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Port & Maritime Security International Cooperation & Technology Development Al Sargeant Vice President / General

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  1. Port & Maritime SecurityInternational Cooperation & Technology DevelopmentAl SargeantVice President / General ManagerCubic CorporationMay 21, 2009

  2. Cubic 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

  3. Cubic Corporation Transportation Systems 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

  4. Transportation SystemsWorldwide Installations FRANCE • Bordeaux • Gironde • Rouen United States 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 GERMANY • Freiburg • Hanau • Rottweil 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 ITALY • Modena MALAYSIA • Kuala Lumpur MEXICO • Monterey SINGAPORE PUERTO RICO • San Juan SWEDEN • Avlsborg • Falkenberg • Goteborg • Hallands • Hassleholm • Jonkoping • Karlskrona • Kronoberg • Lund • Orebro • Ostergotlands • Ostgota • Skane • Skaraborg • Skovde • Vanersborg • Vaxjo NEW YORK • Port Authority NY/NJ • NYC Transit • JFK Air Train AUSTRALIA • Brisbane • Sydney UK • Aylesbury • Cardiff • Glasgow • Leeds • Liverpool • London • Norwich • Plymouth • Tonbridge International CHINA • Guangzhou • Hong Kong • Shanghai TENNESSEE • Chattanooga CANADA • Barrie • Brantford • Burlington • Burnaby • Edmonton • Hamilton • Vancouver • Winnipeg • Hamilton • Kingston • Niagara Falls • Peterborough • Sudbury • Surrey • Windsor TEXAS • Austin DENMARK WASHINGTON • Spokane • Aalborg • Aarhus • Herning • Horsens • Odder • Ribe • Ringkobing • Skive • Vejle • Viborg

  5. Defense Global Leadership in Defense • 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)

  6. 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 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 UNITED STATESALASKA 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 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-BASEDTRAININGSYSTEMSCTCs&MOBILE SYSTEMS AUSTRALIA • Land 134 CTC-LIS CANADA • WES: Weapons Effects Simulation (Wainwright and Gagetown) 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) PRECISION GUNNERY SYSTEMS (PGS) • CANADA • SPAIN MILES PRODUCTS UNITED STATESALABAMA • 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) 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

  7. Training Development Training Execution I X Live Virtual X I E I x I Constructive E I I Operations & Analysis Maintenance & Logistics Mission Support Services Full-Spectrum Support, from Planning to Execution

  8. Communications Innovative Communications and Intelligence Solutions

  9. Summary Innovation. Leadership. Success. • Significant contributor to national and international customers • A strong, well-established company • Global presence and commitment • Relationship-driven strategy ... Long-term commitment to customers

  10. 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

  11. Regulatory 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.

  12. Cubic’s Maritime Services Security consulting and process improvement expertise U.S. and International Maritime Security regulatory compliance Highly trained technology systems integration team Worldwide business access U.S. Government and international relationships As a recognized leader in Security, both Defense and Transportation, Cubic fully leverages its people’s knowledge, influence, expertise in the following areas:

  13. Cubic’s Partnership with Ports On-site maritime security leadership when needed, where needed. Singular 24/7 worldwide direct access and support Task organized consultancy operations teams selected from Cubic’s extensive pool of maritime experts: Commercial port operations leaders, US Customs and Border Protection, US Coast Guard and US Federal Law Enforcement. Solutions developed and implemented using well-defined timelines Access to senior Subject Matter Experts Full utilization of Cubic’s extensive technology capability to include research and development of new technologies, and critical vetting. The key to any partnership is delivering real business value.

  14. Customers Business Needs Secure, efficient, high velocity throughput of goods and materials to ensure speed to market and retention of industry leadership position Improved overall customer and governmental satisfaction (demonstrated by repurchase intention, referrals and compliance) Reduction of unnecessary costs and disruptions through effective Continuity of Operations planning and implementation Cubic recognizes the clients continued need to sustain and grow its maritime capability by achieving:

  15. 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

  16. Intermodal 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

  17. Management and Command Center ORIGIN PORT OF DESTINATION PORT OF ORIGIN 24 hr. Manifest Operational Concept 1. Container# 2. Device# 3. Date/Time/Seal 4. Activity Log 1. Container# 2. Device# 3. Date/Time/Seal 4. Activity Log DESTINATION 1. Container# 2. Manifest 3. Date/Time/Seal 4. “10+2” Data Customs and Border Protection SAILS TO DESTINATION PORT

  18. Container 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

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