Huntington Ingalls Industries : Investor Call Presentation

Huntington Ingalls Industries to Acquire Alion Science and Technology

July 6, 2021

Mike Petters

President and Chief Executive Officer

Tom Stiehle

Executive Vice President and

Chief Financial Officer

Forward-Looking Statements

Statements in this presentation regarding our proposed acquisition of Alion Science & Technology (the "transaction"), the expected time for completing the transaction, the expected benefits and synergies of the transaction, including the effect of the transaction on revenue, EBITDA margin and free cash flow, future opportunities for the combined company and any other statements about management's future expectations, beliefs, goals, plans or prospects, other than statements of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are only predictions based on current assumptions and expectations. Forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those expressed in these statements. Factors that may cause such differences include: the risk that the conditions to the closing of the transaction, including receipt of required regulatory approvals, are not satisfied; our ability to realize the anticipated synergies, growth prospects and other benefits of the transaction, including the risk that the anticipated benefits from the transaction may not be realized within the expected time period or at all; competition from larger or more established companies in the relevant markets; our ability to retain and hire key personnel; challenges, risks and costs associated with integrating the operations of Alion; changes in government and customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans); and other risk factors discussed in our filings with the U.S. Securities and Exchange Commission. There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business, and we undertake no obligation to update any forward-looking statements. You should not place undue reliance on any forward-looking statements that we may make. This presentation also contains non-GAAP financial measures. Non-GAAP financial measures should not be construed as being more important than comparable GAAP measures.

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Strategic Acquisition Enhances Technical Solutions

• Alion significantly expands HII ability to support U.S. Navy and DoD customers in their most critical national security missions
• Enhanced high-end capabilities are complementary to existing HII work and provide critical mass in targeted markets
• • C5ISR, Military Training & Simulation, Next Generation Technology & Solutions
• Broad customer and contract access with minimal overlap
• • Franchise positions with diverse customers
• Significant value-creating revenue synergy opportunity
• Immediately enhances Technical Solutions potential topline growth rate
• Expected to be cash flow accretive in 2022
• Expected to be GAAP EPS neutral in 2022, accretive in 2023

Alion Provides Capabilities and Customer Access to Drive Accelerated Growth in Strategic Target Markets

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Overview of Alion

~$1.6B	~8.4%		84%
FY22E	3,200	~$3B+
FY22E	Cleared
Adj. EBITDA	Employees	Backlog
Revenue	Personnel
Margin1

Alion by Core Capabilities (% FY21E revenue)

Other 6%

U.S. Army

8%

	U.S. Navy
U.S. Air	33%
Force 25%

DoD/Other

Classified

28%

Mix Customer Revenue) FY21E (%

C5ISR	Cyber & Electronic Warfare	LVC Solutions (Training & Simulation)
(47%)	(32%)	(21%)

• Airborne sensor integration
• Sensor fusion and visualization development
• Natural language processing and AI/ML for intelligence analysis

• Big Data Platform (BDP) and analytics
• Enterprise scale cloud migration
• Electronic warfare RDT&E

• Globally distributed simulation for integrated live virtual constructive (iLVC) training
• Navy enterprise live training range digital integration for multi-domain ops training

		Key Programs		Key Programs
	JCETII		COCOM ISR		Unified Platform /	Classified / NASIC
			Gabriel Nimbus
Customer	Remote Sensing	COCOMs	Customer	USAF, Army, &	USAF
	Center				CYBERCOM

1Non-GAAP measure. See appendix for definition and other information.

Key Programs

NCTE / NITEJTSE

Customer	USN	Joint Chiefs of Staff

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Alion is Highly Consistent with Stated Strategy

Alion Transaction Alignment With HII Strategy

Complements HII's

Revenue Visibility and

Competitive Posture

Supports Overall HII Growth

Enhances Technical Solutions Segment

Ongoing, Consistent

Capital Allocation

Framework

• Adds Alion's $3B+ of backlog supporting ongoing revenue visibility
• Competitively positioned incumbency with Alion's 90%+ recompete win rate
• Broadens HII positioning as customer's partner
• In-linewith strategy of expanding Next Generation IT, Training & Simulation and C5ISR
• Positively enhances overall HII growth outlook
• Grows efficient cash generating TS segment to ~25% of overall HII by revenue
• $2.6B+ revenue segment with enhanced capabilities, customers and talent
• In line with target of raising Technical Solutions EBITDA1 margins to 8-10% by 2024
• Significantly improves TS growth rate outlook
• Generational investment in shipyards concluding in 2021 as planned
• Expect continued annual dividend growth
• Utilize excess cash for strategic opportunities and share repurchases
• Deploy aggressive debt reduction approach in order to return to investment grade metrics

1Non-GAAP measure. See appendix for definition and other information.

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