EFTA01457550

30 April 2015 Aerospace & Defense Electronics General Dynamics [Figure 1: GD 10 Variance Analysis 2014 2015 Year-over-war vs. Estimates (Millions of SLISD. except EPS) 1QA 1OE 1QA Delta %ch Delta %di GD Quarterly Variance Revenues Information Systems & Technology 2.281 2,167 2.370 89 3.9% 203 9.4% Combat Systems 1.317 1,350 1.363 46 3.5% 13 1.0% Marine Systems 1,601 1,650 1,943 342 21.4% 293 17.8% Aerospace 2,125 2,200 2,108 (17) (0.8%) (92) (4.2%) Resources/Other Q Q Q Q Eltd Q hed Total 7,324 7,387 7,784 480 8.3% 417 5.7% Operating Profit Information Systems & Technology 183 190 217 34 18.6% 27 14.2% Combat Systems 136 205 204 68 50.0% (1) (0.5%) Marine Systems 166 170 188 22 13.3% 18 10.6% Aerospace 404 400 431 27 6.7% 31 7.7% Resources/Other L1U3 LEI fill 5 NM 5 (Z7.8%1 Segment Operating Profit 871 947 1,027 156 17.9% 80 8.4% 11.9% 8.7% 13.2% Total Other Unallocated 2 Q 2 1 2 Total Operating Profit 873 947 1,030 157 18.0% 83 8.8% Operating Margin Information Systems & Technology 8.0% 8.8% 9.2% 113 bps 39 bps Combat Systems 10.3% 15.2% 15.0% 4&4 bps (72) bps Marine Systems 10.4% 10.3% 9.7% (69) bps (63) bps Aerospace 19.0% 18.2% 20.4% 143 bps 226 bps Resources/Other Eltd NM NM NM NM Total 11.9% 12.9% 13.2% 131 bps 38 bps Interest Expense. net 22 21 21 121 (6.8%1 Q 4.24 Pretax Income 851 927 1,010 159 18.6% 83 9.0% % Sales 11.6% 12.6% 13.0% Taxes 256 283 233 37 14.5% 10 3.7% Eflectke tax rate 30.1% 30.5% 29.0% Net Income, adjusted 595 644 717 122 20.4% 73 11.3% % Sales 8.1% 47.7% 9.2% One time items, net of tax 0 0 0 Discord operations 0 0 0 Net Income, reported 595 644 717 122 20.4% 73 11.3% EPS, Adjusted 1.71 1.94 2.14 0.43 24.9% 0.20 10.4% One time items 0.00 aoo 0.00 EPS, GAAP cont ops 1.71 1.94 2.14 0.43 24.9% 0.20 10.4% Discord operations 0.00 ODD 0.00 EPS, Reported 1.71 1.94 2.14 0.43 24.9% 0.20 10.4% Am Diluted Shares 347.2 332.0 334.7 (125) (3.6%) 2.7 0.8% Sow. Dttacte 6'* crown/rents Page 2 Deutsche Bank Securities Inc. CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0117139 CONFIDENTIAL SDNY_GM_00263323 EFTA01457550