Diapositive 1

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Présentation de lentreprise

• General Dynamics has leading market positions in
  business aviation and aircraft services, land and
  amphibious combat systems, mission-critical
  information systems and technologies, and
  shipbuilding and marine systems. The company is a
  leading supplier of sophisticated defense systems
  to the United States and its allies, and sets the
  world standard in business jets.
• Headquarter ? Falls Church, Virginia, USA
• Employs approximately 81,900 people worldwide.

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Présentation de lentreprise
Quatre principales divisions
Aerospace
Combat Systems
Marine Systems
Information Systems and Technology
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? GD holding participant à de multiples
secteurs
Aerospace Aviation Services Gulfstream Aerospace
Combat Systems Armament and Technical Products European Land Combat Systems MOWAG GmbH Santa Bárbara Sistemas Steyr Spezialfahrzeug Land Systems Ordnance and Tactical Systems
Information Systems and Technology Advanced Information Systems C4 Systems General Dynamics Canada Network Systems United Kingdom Limited
Marine Systems American Overseas Marine (AMSEA) Bath Iron Works Electric Boat NASSCO
Other Business Units Freeman Energy (Charbon)
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Quelques faits intéressants

• Officiellement établie en 1952
• Ont créé le premier sous-marin à propulsion
  nucléaire (USS Nautilus)
• The company added its first Combat Systems
  business unit, Land Systems, in 1982 its first
  Information Systems and Technology business unit,
  Advanced Technology Systems, in 1997 and
  returned to the aerospace business with
  Gulfstream in 1999.
• GD as developped the F-16
• (Division rachetée en 1993 par LMT)

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Quelques faits intéressants

• GD possède une politique de rachat dactions (3.3
  millions en 2005)
• Dernières acquisitions
• 2005 MAYA Viz Ltd., Tadpole Computer, Inc.,
  Itronix Corporation (250M), Anteon International
  Corporation (IT integrator) (2200M)
• 2004 Spectrum Astro, Inc., TriPoint Global
  Communications Inc. Engineering Technology
  Inc.(500M)
• 2003 GM Defense of London (1100M in cash),
  Veridian Corporation autres (470M)

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Ventes par secteur
Combat Systems
Proportions des ventes totales 23.6
23.1 24.5
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Ventes par secteur
Aerospace
Proportions des ventes totales 16.2
15.8 18.0
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Ventes par secteur
Marine Systems
Proportions des ventes totales 22.1
24.7 26.2
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Ventes par secteur
Information Systems and Technology
Proportions des ventes totales 36.8
35.2 29.7
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Organizations des ventes et commandes
US Government 85 pour LMT
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Revenus et bénéfices
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Bénéfices et cash flow
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Position des dirigeants
Nouveau de cette année
Nom Poste Age Position
Nicholas D. Chabraja CEO 63 117 716 096
Bryan T. Moss Pres Gulfstream VP Aerospace 66 1 618 648
David A. Savner Sr. VP, Sec. and Gen. Counsel 61 11 232 268
L. Hugh Redd CFO 48 2 869 836
Gerard J. DeMuro Exec. VP and Group Exec. - Information Systems and Technology 50 5 120 880
CORPORATE GOVERNANCE  
General Dynamics Corp.'s Corporate Governance Quotient (CGQ) as of 1-Oct-06 is better than 79.4 of SP 500 companies and 97.1 of Capital Goods companies.
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Historique des bénéfices
Annonce des bénéfices 18 octobre 2006 (11h00)
Prévu 1.057/action
                                                                 
                                                                                                                           
4.43, 1.52,11.77,3.52, ? , ?
, ? , ?
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Ratios importants
Valuation Ratios Company Industry Sector SP 500
P/E Ratio (TTM) 18.32 20.55 17.98 20.14
P/E High - Last 5 Yrs. NA 31.99 30.07 36.88
P/E Low - Last 5 Yrs. NA 11.53 11.34 14.37

Beta 0.46 0.70 1.07 1.00

Price to Sales (TTM) 1.28 1.23 1.24 2.83
Price to Book (MRQ) 3.18 4.24 3.85 3.85
Price to Tangible Book (MRQ) NM 14.41 7.81 7.02
Price to Cash Flow (TTM) 14.96 14.26 12.61 14.24
Price to Free Cash Flow (TTM) 17.62 19.27 25.54 30.87

Owned Institutions 79.14 70.08 63.34 68.31
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Ratios importants
Croissance des ventes de 22 en moyenne depuis 9
ans
Dividends Company Industry Sector SP 500
Dividend Yield 1.28 1.52 1.52 2.14
Dividend Yield - 5 Year Avg. 1.40 1.50 1.29 1.80
Dividend 5 Year Growth Rate 9.00 11.63 9.98 10.24
Payout Ratio (TTM) 21.80 28.39 19.58 28.56
Growth Rates() Company Industry Sector SP 500
Sales (MRQ) vs Qtr. 1 Yr. Ago 15.52 9.29 12.93 16.93
Sales (TTM) vs TTM 1 Yr. Ago 15.01 16.08 16.92 17.47
Sales - 5 Yr. Growth Rate 15.57 10.49 12.68 9.47

EPS (MRQ) vs Qtr. 1 Yr. Ago 23.45 41.49 29.74 16.15
EPS (TTM) vs TTM 1 Yr. Ago 18.43 38.10 36.03 22.74
EPS - 5 Yr. Growth Rate 10.18 29.51 26.38 13.74

Capital Spending - 5 Yr. Growth Rate -0.63 1.71 5.76 6.30
Croissance prévue de 279 à 425 (52) en 2006
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Ratios importants
Financial Strength Company Industry Sector SP 500
Quick Ratio (MRQ) 0.42 0.71 0.98 1.23
Current Ratio (MRQ) 1.14 1.27 1.66 1.75
LT Debt to Equity (MRQ) 0.31 0.57 0.65 0.64
Total Debt to Equity (MRQ) 0.40 0.67 0.85 0.81
Interest Coverage (TTM) 31.35 11.31 13.48 14.47
Management Effectiveness () Company Industry Sector SP 500
Return On Assets (TTM) 8.07 6.23 8.06 8.13
Return On Assets - 5 Yr. Avg. 8.22 4.49 5.57 6.43

Return On Investment (TTM) 12.49 9.61 11.71 12.08
Return On Investment - 5 Yr. Avg. 13.00 6.82 7.91 10.01

Return On Equity (TTM) 19.24 20.79 23.32 20.05
Return On Equity - 5 Yr. Avg. 19.82 14.63 17.12 17.96
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Ratios importants
Profitability Ratios () Company Industry Sector SP 500
Gross Margin (TTM) 13.81 18.03 23.03 44.87
Gross Margin - 5 Yr. Avg. 17.05 17.08 22.75 45.05

EBITD Margin (TTM) 12.34 10.89 13.53 22.92
EBITD - 5 Yr. Avg. 12.36 9.41 11.52 20.73

Operating Margin (TTM) 10.78 8.43 10.94 20.44
Operating Margin - 5 Yr. Avg. 10.63 6.47 8.30 19.11

Pre-Tax Margin (TTM) 10.46 7.99 10.06 18.85
Pre-Tax Margin - 5 Yr. Avg. 10.16 5.78 7.62 17.20

Net Profit Margin (TTM) 6.99 5.76 7.33 13.68
Net Profit Margin - 5 Yr. Avg. 6.93 4.22 5.29 11.64

Effective Tax Rate (TTM) 33.15 26.15 29.35 30.41
Effective Tax Rate - 5 Yr. Avg. 31.51 26.83 30.39 31.87
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Ratios importants
Industry Aerospace/Defense Products Services
DIRECT COMPETITOR COMPARISON  
GD LMT Pvt1 Pvt-24836 Industry
Market Cap 30.58B 37.60B N/A N/A 480.84M
Employees 72,200 135,000 N/A N/A 1.35K
Qtrly Rev Growth (yoy) 15.50 7.20 N/A N/A 14.80
Revenue (ttm) 22.82B 38.60B N/A N/A 358.89M
Gross Margin (ttm) 10.88 9.42 N/A N/A 25.04
EBITDA (ttm) 2.84B 3.84B N/A N/A 49.81M
Oper Margins (ttm) 10.74 7.61 N/A N/A 8.97
Net Income (ttm) 1.59B 2.17B N/A N/A 13.77M
EPS (ttm) 4.413 4.923 N/A N/A 0.62
P/E (ttm) 17.18 18.02 N/A N/A 19.24
PEG (5 yr expected) 1.63 1.53 N/A N/A 1.24
P/S (ttm) 1.34 0.97 N/A N/A 1.14



LMT Lockheed Martin Corp. Pvt1 Estimated proceeds of 29,202 (privately held)
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Risque de lentreprise
GD
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LMT
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Long terme
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Moyen terme
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Court terme
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Derniers développements clés

• General Dynamics Awarded 189 Million for Light
  Armored Vehicles for U.S. Marine Corps, 2006 Oct
  5 600 PM
• General Dynamics Awarded Contract to Support
  Future Stryker Upgrades, 2006 Oct 5 400 PM
• General Dynamics Awarded 27 Million Contract To
  Supply RG-31 Mk5 Mine Protected Vehicles To U.S.
  Army, 2006 Oct 5 200 PM
• General Dynamics Awarded 155 Million For 109
  Strykers, 2006 Oct 4 858 PM
• U.S. Navy Awards General Dynamics 35 Million
  Contract to Support Naval Submarine Base Work,
  2006 Oct 2 951 PM

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Développements futurs

• Élections présidentielles en 2008 (fin de W.
  Bush)
• Continuité des conflits en Irak et en Afghanistan
  possibilités en Corée du Nord
• Ajout de 6 navires (dont 4 pour GD) dans le
  budget US 2006.
• Ajout de 7 navires en 2007 (8.6MM)
• Gulfstream increase its planned production rates
  by 27 percent in 2006 and 13 percent in 2007.
• Le G150, G350 et G450 (avions commerciales)
  entrent en service en 2006

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Développements futurs

• Budget US 2007 défense 439MM
• Croissance moyenne de 9/an du budget US alloué à
  la défense (525MM en 2011)
• Achat de Anteon International Corporation (TI)
• 100 Fastest Growing Technology Companies,
  Business 2.0 - ranked 30Top 100, Washington
  Technology Magazine - ranked 12Washington Post
  200, Washington Post - ranked 4, Aerospace
  Defense IndustryTop 100 Contractors,
  Professional Services, Federal Times - ranked
  18Fortune 500 Information Technology Services,
  Fortune Magazine - ranked 9Forbes List of the
  400 Best Big Companies in 2006, Forbes Platinum
  ListDoD Top 100 Companies Category of
  Procurement, Aerospace Daily Defense Report - 
  ranked 36

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Recommandations des analystes
Change in Consensus   of Estimates Changed
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QUESTIONS?