August 6, 2013 CYBERNET SYSTEMS CORPORATION ATACS/SBS Overview Glenn Beach (gbeach@cybernet.com) Joann Payne 3885 Research Park Dr. Ann Arbor, Michigan 48108 (734) 668-2567 www.cybernet.com 1 August 6, 2013 CYBERNET – THE COMPANY Ann Arbor, MI ▪ ▪ ▪ ▪ Orlando, Fl 25 year Old Research/ Development/Production Company 25 years of working with the U.S. military 10+ yrs experience in developing ammunition logistics automation Small business with 300+ successful government contracts www.cybernet.com 2 August 6, 2013 INCREASED NEED/DECREASED RESOURCES National Guard has become a critical asset to the Army in conducting combat operations. A return to training for full spectrum operations will increase the overall training requirement and maintain high rates of ammunition consumption. Current budget realities dictate that logistics operations be performed cost effectively and that every dollar go farther. www.cybernet.com 3 August 6, 2013 ATACS/SBS ATACS sorts and inspects small caliber ammunition through an automated, standardized, high volume process. Ammunition can then be returned to soldiers for re-use. SBS is DDESB approved to separate live rounds from spent brass, greatly simplifying process of processing small caliber residue and increasing value of processed brass ($12 per pound as cases vs. less than $3 per pound as raw brass). Deployment Locations 25M 20M 10M www.cybernet.com Initial run 2M annual 4 August 6, 2013 TECHNOLOGY AND STANDARDIZATION Pays Big Dividends by “Bringing Cost Saving Technology to Ammunition Management” ATACS – Case Study ATACS provides a standardized inspection process that delivers a higher quality inspection than can be performed by human inspectors. Significant Labor Savings ATACS revolutionized a labor intensive process that had been virtually unchanged for over 50 years. Labor savings include: Camp Arifjan: Single machine operator replaced over 40 contractor personnel . Recent report highlights $20 million annual cost savings. Financial Impact ATACS has produced tens of millions of dollars in labor savings since initial deployment. Arifjan $20M annual reclamation savings highlights this fact. ATACS has realized additional reclamation cost savings in the millions of dollars via improved quality of inspection with estimations of over $10M in reclamation savings. Ft. Irwin: Single ATACS operator replaced over 10 soldiers. Savings related to ATACS deployment cover the cost of acquiring the unit within the first year of operation with future savings being all positive ROI . Spent Brass Sorter (SBS) derivative provides cost effective processing of spent cases and allows direct cost return to the government for the brass. www.cybernet.com 5 August 6, 2013 DEMONSTRATION PROGRAM Develop version of ATACS/SBS specifically to meet the needs of the National Guard. Larger ASPs can utilize standard ATACS and SBS systems, but a new smaller version is more applicable to smaller ASPs. Cybernet has worked to position a congressionally funded demonstration project to demonstrate the savings that the National Guard can realize by employing ATACS/SBS. Currently looking for National Guard partner to serve as case study. www.cybernet.com 6 August 6, 2013 DISCUSSION/QUESTIONS Glenn Beach gbeach@cybernet.com 3885 Research Park Drive Ann Arbor, MI 48108 734-668-2567 x255 Joann Payne jpayne@cybernet.com 3885 Research Park Drive Ann Arbor, MI 48108 703-385-6770 www.cybernet.com 7