Jefferies NY 1103

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Jefferies Quarterdeck Aerospace, Defense IT
Services Conference New York, NY u November 2003
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• In addition to historical matters, this
  presentation contains forward-looking statements
  which are made pursuant to the safe harbor
  provisions of the Securities Litigation Reform
  Act of 1995. These forward-looking statements
  involve predictions of future results. Investors
  are cautioned that forward-looking statements
  involve risks and uncertainties which may affect
  the company's business and prospects. These
  include the effects of politics on negotiations
  and business dealings with government entities,
  economic conditions in the various countries in
  which the company does or hopes to do business,
  competition and technology changes in the defense
  and transit industries, and other competitive and
  technological factors. Cubic assumes no
  obligation to update or revise these figures.

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Todays Presentation

• Corporate Summary
• and
• Transportation Business Review
• William W. Boyle
• Cubic Corporation
• Vice President CFO
• Defense Business Review
• Gerald R. Dinkel
• Defense Applications Group
• President CEO

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Corporate Overview

• Founded in 1951 in San Diego, California
• Public Company Since 1959 (AMEXCUB)
• 4,660 Employees in 84 Locations Worldwide
• Two Major Business Segments
• Cubic Transportation Systems
• Cubic Defense Applications

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Results of Operations
6
Backlog
7

• Transportation Systems Group

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Business Focus

• Cubic is the leading turnkey solution provider of
  automated fare collection systems
• System Design
• Central Systems
• Equipment Design Mfg
• Device Software
• Integration
• Test
• Installation
• Full Services
• Multi-Applications
• Outsourcing

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Experience

• Current Projects Worldwide
• London
• New York
• Washington
• Baltimore
• Los Angeles
• San Diego
• Minneapolis
• Atlanta
• S. Florida
• Vancouver
• Edmonton
• Brisbane

45 million passengers use Cubic systems daily
More than 35 million in revenues collected daily
More than 90,000 devices installed
400 projects, 40 major markets, 5 continents
Nearly 3 billion in contracts awarded
30 million in support contracts annually
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Drivers of Market Growth

• Cubics market differentiation - intermodal,
  regional solutions
• Cubic is the only U.S. supplier
• De-facto standard in North America
• U.S. market converted over last 3 years
• Cubic will continue at this pace in U.S.
• Cubic has finalized a Regional Interface
  Specification with the Port Authority of New York
  and New Jersey that will become the APTA National
  Standard

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Drivers of Market Growth

• De-facto standard in UK
• The Oyster Card is now being rolled out to 4
  million transit riders in London
• Europe is following U.S. lead in converting to
  intermodal, regional solutions
• We have pre-qualified for a national card system
  in Denmark
• We have bids in throughout Scandinavia
• We are in final negotiations with Modena, Italy
• Under contract to write standard in Germany

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Successes

• Washington, D.C. is installing
• our regional smart card solution, SmarTrip,
  throughout D.C., Maryland and Northern Virginia
• Over FY2004, our regional smart card solutions
  will roll out to
• Los Angeles
• Minneapolis
• San Diego

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Other Successes

• Recent wins
• Atlanta
• Brisbane
• In negotiations / procurement
• S. Florida
• Chicago
• Vancouver
• Toronto
• Seattle
• Ohio

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Growth Strategy

• To create regional ticketing systems leveraging
  our core AFC systems integration business

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Growth Strategy is Working

• Recent 95M Brisbane contract is for regional
  ticketing encompassing core AFC system,
  neighboring mid-size operators, other
  transit/non-transit applications, and full range
  of outsourced regional services, including
  financial clearing settlement and commercial
  rights management of the card.
• Similarly, the Los Angeles Regional System is
  growing into this full range of applications and
  services.

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Market Potential
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• Cubic Defense Applications Group
• Gerald R. Dinkel
• President CEO

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Cubic Defense Applications Group

• 3 Principal Lines of Business
• Combat Training Systems
• Mission Support Services
• Communications Electronics
• Diverse Customer Base
• All Branches of Armed Forces
• Other Agencies Departments
• Major Prime Contractors
• 38 Other Nations
• 3200 People in 26 States and 18 Countries
• Management focus
• Long-term Customer Relationships
• Continuous Improvement
• Strategic Growth

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Performance Snapshot

• FY03 vs. FY02
• Total Backlog (funded unfunded) up 47 to 727M
• Includes 10 key wins with 1.7 billion long term
  potential (400M in total backlog)
• Total backlog does not include large ID/IQ
  contracts.. P5CTS and DTRA WMD Defeat
• Revenue up 16 to 365M
• Operating Profit up 37 to 24.5M
• RONA up 31
• Still pursuing additional new business with 2.8B
  potential

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Combat Training Systems

• Instrumented Air Combat Training
• 30 Year History as Worldwide Leader
• 10-Year US program (P5CTS) WON June 03
• Land Combat Training Center Integration
• Software-intensive Systems
• US, UK, Korea, Australia, Canada
• Mobile system being deployed for U. S. Army
• Tactical Engagement Simulation
• Family of laser-based weapon simulators (MILES)
• US Army, USMC, USAF, DoE
• UK, Australia, Canada, 15 other nations
• Virtual Simulation Training
• Recent acquisition of ECC International Corp.

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ECC International now Cubic Simulation Systems
Division (SSD)

• Sole-source provider of small arms Engagement
  Skills Trainer (EST 2000) to U.S. Army
• Close Combat Tactical Trainer and SIMNET systems
  provide combat arms and force on force training
  for armored vehicle crews
• Aircraft and ground maintenance trainers provide
  operational level and trouble shooting training

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P5 Combat Training System The Future of Air
Combat Training for U. S. and Coalition Forces
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UK Area Weapons Effects Simulator (AWES)
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Communications Electronics

• Secure C4ISR Datalinks
• Joint STARS SCDL
• Navy Common Data Link System (CDLS)
• Tactical Common Data Link

• Search Rescue Avionics
• Large installed base
• Upgrades in Process

• Intelligence EW Receivers and Direction Finding
• Legacy and new products
• U.S. and international customers
• Growing Demand

• Military Communications
• JTRS Waveforms
• Software-definable Radio Innovations

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Navy Communications Data Link System (CDLS)

• Primary Intelligence, Surveillance
  Reconnaissance (ISR) data link for major surface
  ships
• 32 M SPAWAR contract awarded Feb. 2003
• Plus 60M production options
• Strong basis for additional applications and
  extensions

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Mission Support Services

• Areas of Expertise
• Training Management Support
• Simulation-based Training Exercises
• Professional Military Education
• Weapons Effects Modeling Simulation
• Allied Military Force Modernization
• Operations Maintenance
• Major Customers
• Joint Readiness Training Center (JRTC)
• Joint Forces Command (JFCOM)
• U. S. Forces Korea
• U. S. Army Combined Arms Center
• National Simulation Center
• U. S. Marine Corps
• U. S. Navy Training Systems Division
• Defense Threat Reduction Agency (DTRA)
• U. S. Navy SPAWAR Systems Center
• U. S. Pacific Command

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Joint Readiness Training Center (JRTC)

• Realistic Training for Light and Special
  Operations Forces - Platoon Through Brigade
• Cubic-designed Instrumentation System
• Cubic Mission Support Scenario Development,
  Exercise Planning Management, Role-Playing,
  including Command Staff
• Heavy Utilization in Preparation for Current
  Operational Scenarios

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Defense Threat Reduction Agency (DTRA) Support

• High fidelity weapons effects modeling and
  simulation with special emphasis on Weapons of
  Mass Destruction and hardened targets
• Exercise Planning, Development and Execution
• Counter Terrorist/Readiness/WMD Support to Joint
  Services

• Worldwide assessments supporting Homeland
  Security
• Consequence Management
• Antiterrorist Options
• Security Measures
• WMD Response

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Military Force Modernization

• U. S. Government support of Defense Reform and
  new NATO members in Central/Eastern Europe/FSU
• Experienced Teams of Defense Consultants
• Broad range of operational and high level staff
  skills
• Advisors to MOD and senior military
• Scope of Work
• National Security Strategy
• Defense Planning
• Readiness Mobilization
• Personnel Leader Development
• Doctrine Force Design
• Training Program
• Recent contracts in Lithuania and Georgia

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Revenue Mix Business Segments
Force Modernization 3
Training Systems 45
Communications Electronics 17
Mission Support Services 35
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Revenue Mix Markets
Communications Electronics 17
Training Systems Services 75
Force Modernization, Intelligence Technology 8
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Revenue Mix U.S. International
FMS/FMF 8
Domestic 71
Direct Intl 21
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Cubic Defense Applications

• Significant, highly respected contributor to
  National Defense..in multiple nations
• Positioned in high-priority market segments
• Unique position as full-spectrum provider of
  training systems training mission support
• Growing presence in C4ISR.enabling
  network-centric Warfare
• Focus customer relationships, contract execution
  and strategic growth

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Outlook and Goals

• Sustained Internal Growth Financial Improvement
• Revenue 10 CAGR
• Increasing ROS
• Increasing RONA
• Continued focus on acquisitions
• Total growth goal gt20 CAGR
• Continuous flow of opportunities
• Top priority Meet customer expectations

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Vision Mission

• To be the most-respected, highest performing,
  mid-tier
• U. S. defense contractor
• Most Respected - Stands out from its peers in
  discriminating capability and customer
  satisfaction. Viewed as the supplier or partner
  of choice.
• Highest Performing - Financial and delivery
  performance consistently exceeds peer companies.
  Efficiency in operations generates
  higher-than-average earnings increases.
  Maintains a healthy re-investment in new
  business, technology and human resources.
  Constantly seeks to reduce cost, improve
  performance and solve customer problems.
  Embraces change as an opportunity to show
  innovation, resilience and superiority to our
  competitors. Cubic executes.
• Mid-tier Through a balance of organic growth
  and acquisitions, exceeds industry growth rate
  and increases scale versus competition.
• U.S. defense contractor - Focused primarily on
  U.S. defense market, with selective pursuit of
  closely related international or other government
  business.