San Francisco Ship Repair POSF Maritime Commerce Advisory

San Francisco Ship Repair POSF Maritime Commerce Advisory Committee Meeting September 17, 2009 BAE Systems Proprietary Information 1

One of the World’s Largest Defense Companies Ø BAE Systems plc • 105, 000 employees • $34. 4 B annual sales • 2 nd largest global defense company • Top-ten U. S. prime contractor • Presence in more than 100 nations Ø BAE Systems, Inc. • 55, 000 employees • 6, 000 employees in California • $20. 2 B annual sales • Major operations in 38 states, the UK, Sweden, Israel, Germany, Mexico, Switzerland, and South Africa BAE Systems Proprietary Information 2

Leader in Non-Nuclear Ship Repair, Modernization, Conversion and Overhaul San Francisco Ship Repair Capabilities Drydocking Pierside services Emergent repairs Ship Repair HQ Norfolk Ship Repair Programs U. S. Navy U. S. Coast Guard U. S. Army Military Sealift Command Maritime Administration Commercial Container Ships, Tankers, Tugs, Ferries , Cruise Ships San Diego Ship Repair Hawaii Shipyards 4 shipyards 3, 000 +/- employees: • Norfolk – 1, 200 • San Diego – 1, 300 • San Francisco – 300 • Hawaii – 200 BAE Systems Proprietary Information 3

San Francisco Ship Repair Ø Facility opened in 1880 Ø Land area: 13. 5 acres Ø Largest floating drydock on West Coast of the Americas Ø On board count fluctuates between 100 and 350 Ø 10 Unions Ø Lease from the Port of San Francisco Ø Expires 2017 Ø Operated In accordance With Pier 70 Master Plan BAE Systems Proprietary Information 4

San Francisco Ship Repair Facilities & Capabilities Shops/Facilities: Dry Docks: -Steel Shop -Carpenter Shop -Electrical Shop -Machine Shop -Insulation Shop -Paint Shop -Pipe Shop -Plate Shop -Sheet Metal Shop -Rigging Shop Eureka: Length - 528 ft Beam - 90 ft Lift - 14, 000 t 2 - 15 t cranes DD#2: Length - 900 ft Beam -150 ft Lift - 65, 000 t 2 - 60 t cranes Berths: -Three @ 700 ft x 28 draft BAE Systems Proprietary Information 5

Facility Improvements Ø Upgrade • Drydock #2 • Dredging Ø Repair • Cranes • Electrical • Piping Ø Clean up • Triangle Lot • Area 52 • Shops Ø Footprint reduction • Shut down buildings • Building #38 MARAD Stimulus Package $2. 3 M Grant BAE Systems Proprietary Information 6

Star Princess • Largest cruise ship ever drydocked on the U. S. West Coast • More than 25, 000 hours of local labor • $1. 2 M in contracts awarded to local small business subcontractors and vendors • Completed job ahead of schedule and within budget • Success positions SFSR for future mega-cruise ships BAE Systems Proprietary Information

Bay Area Economic Contribution 58 Cruise Ships in San Francisco in 2008 • Total Passengers – 180, 000 • Total Crew – 50, 000 • Total Economic Impact - $42, 323, 318 Average Per Large Tankers / Container Ship Repair BAE SYSTEMS Port of San Francisco • Contract Value: $6 M • Jobs Provided: 310 Average Per Cruise Ship Repair BAE SYSTEMS Port of San Francisco • Contract Value: $4 M • Jobs Provided: 360 • Crew spending in port: $295, 000 BAE Systems Proprietary Information 8

Sea Princess 2009 BAE Systems Proprietary Information 9

Sea Princess 2009 BAE Systems Proprietary Information 10

Sea Princess 2009 BAE Systems Proprietary Information 11

Sea Princess 2009 BAE Systems Proprietary Information 12

Sea Princess 2009 BAE Systems Proprietary Information 13

Sea Princess 2009 BAE Systems Proprietary Information 14

Sea Princess 2009 BAE Systems Proprietary Information 15

SFSR 9/16/09 BAE Systems Proprietary Information 16

USCG Kukui BAE Systems Proprietary Information 17

USCG Kukui BAE Systems Proprietary Information 18

Sea Princess 2009 BAE Systems Proprietary Information 19

Sea Princess 2009 BAE Systems Proprietary Information 20

Sea Princess 2009 BAE Systems Proprietary Information 21

Sea Princess 2009 BAE Systems Proprietary Information 22

Washington Voyager BAE Systems Proprietary Information 23