AAS Conference Panel – The Role of Education in American Competitiveness Industry Perspective Nov. 18, 2008 Presentation by Julie Van Kleeck Vice President, Space Programs Aerojet

Agenda Overview of Aerojet Current Workforce Demographics – Aerojet and Aerospace & Defense Industry Specific Challenges Facing Aerospace Baseline, Pessimistic and Optimistic Cases Steps to Foster the Optimistic Case

Overview of Aerojet

Current Workforce Demographics – Aerojet and Aerospace & Defense Industry

Specific Challenges Facing Aerospace

Baseline, Pessimistic and Optimistic Cases

Steps to Foster the Optimistic Case

Aerojet Provides Full Spectrum of Aerospace and Defense Products 65 Years of Engineering Excellence  3,100 Employees  $700M Sales Tactical Propulsion Airbreathing Systems Warheads & Energetics Missile Defense Systems Space Boosters & Strategic Propulsion Liquid Boosters & Upper Stages Post Boost Control Systems NASA Exploration Propulsion Military Spacelift In Space Propulsion Advanced Structures Specialty Metals Safety Systems

We Are Rocket Scientists – First & Foremost!

Aerospace and Defense Contractors Have An Aging Workforce Of 13% eligible, only 2% retired (last two years) 27% of Engineers eligible for retirement There is a 14% Annual Attrition Rate in the 20-35 age group *Source: Aviation Week A&D article, 8/18-25, 2008 13% Now Retiree Eligible

Of 13% eligible, only 2% retired (last two years)

27% of Engineers eligible for retirement

There is a 14% Annual Attrition Rate in the 20-35 age group

Aerojet Workforce Exhibits Similar Demographics to Aerospace & Defense Total: 874 Recent Focus on New Grads Is Paying Off *Approx. 30% of Workforce; Engineers & Scientists

Challenges In Attracting and Keeping “New” Talent Aerospace & Defense Has A Very Technical Workforce Competitiveness Within Industry Requiring Corporate Leaders To Focus On Near Term At The Expense Of Long Term Viability – Focus Is On Experienced People Transfer Of Heritage Knowledge To New Talent Is Costly And Takes Time – Rockets Require Significant Investment In Time And Human Capital – Less Experienced Workers Don’t Always Have The “Patience” Needed. (Other Industries Are More Attractive.) Cyclical Nature Of Industry Which Poses Challenges At Attracting And Maintaining Young Professionals

Aerospace & Defense Has A Very Technical Workforce

Competitiveness Within Industry Requiring Corporate Leaders To Focus On Near Term At The Expense Of Long Term Viability – Focus Is On Experienced People

Transfer Of Heritage Knowledge To New Talent Is Costly And Takes Time – Rockets Require Significant Investment In Time And Human Capital – Less Experienced Workers Don’t Always Have The “Patience” Needed. (Other Industries Are More Attractive.)

Cyclical Nature Of Industry Which Poses Challenges At Attracting And Maintaining Young Professionals

Assessment 5 + Years From Now Baseline Workforce continues to age with only modest improvement in younger demographics due to attrition Loss of investment from 1950’s-1960’s due to inability to transfer knowledge (lack of retention of younger workforce) India/China/Others threaten to take over World Space preeminence National/World Security threatened Pessimistic Loss of U.S. investment from 1950’s-1960’s due to inability to transfer knowledge India/China/Others take over Space preeminence U.S. abandons human presence in Space National/World Security threatened Optimistic Infusion of younger talent and shift of Aerospace & Defense demographics Increase U.S. investments in Space with development of new technologies; opening of new Space Markets and Opportunities for next generation Maintain National/World Security

Baseline

Workforce continues to age with only modest improvement in younger demographics due to attrition

Loss of investment from 1950’s-1960’s due to inability to transfer knowledge (lack of retention of younger workforce)

India/China/Others threaten to take over World Space preeminence

National/World Security threatened

Pessimistic

Loss of U.S. investment from 1950’s-1960’s due to inability to transfer knowledge

India/China/Others take over Space preeminence

U.S. abandons human presence in Space

National/World Security threatened

Optimistic

Infusion of younger talent and shift of Aerospace & Defense demographics

Increase U.S. investments in Space with development of new technologies; opening of new Space Markets and Opportunities for next generation

Maintain National/World Security

What the Aerospace Industry* Believe Should Be Done To Foster Optimistic Case Partnering with existing programs such as Project Lead The Way, FIRST Robotics and Team America Rocketry Challenge Encouraging, supporting and motivating industry professionals to participate in mentoring and other volunteer opportunities in schools and community programs Supporting the transition of retirees to K-12 science and mathematics teaching certification and enrichment programs in paid or volunteer positions Earmarking corporate grants to educational programs *Source: AIA Report: Industry’s Response to the Workforce Challenge

Partnering with existing programs such as Project Lead The Way, FIRST Robotics and Team America Rocketry Challenge

Encouraging, supporting and motivating industry professionals to participate in mentoring and other volunteer opportunities in schools and community programs

Supporting the transition of retirees to K-12 science and mathematics teaching certification and enrichment programs in paid or volunteer positions

Earmarking corporate grants to educational programs

What Aerojet is Doing to Foster the Optimistic Case GenCorp Foundation/Aerojet Outreach supports local and national STEM education programs GenCorp Foundation gives approx. $250,000/year to STEM education programs Project Lead the Way Virginia Aerospace Science and Technology Scholars (VASTS) Challenger Learning Centers STARBASE Academy Support of Local Science Fairs Engineering Programs at Local Universities Sponsor of Team America Rocket Challenge Educational Gift Matching Program which matches employees’ financial gifts to K-12 schools and universities, dollar for dollar, and Dollars for Doers Program matches employees’ time in the classroom with funds for that school . Robust Technical Intern Program Partnerships with universities in specific areas of Rocket Propulsion Research

GenCorp Foundation/Aerojet Outreach supports local and national STEM education programs

GenCorp Foundation gives approx. $250,000/year to STEM education programs

Project Lead the Way

Virginia Aerospace Science and Technology Scholars (VASTS)

Challenger Learning Centers

STARBASE Academy

Support of Local Science Fairs

Engineering Programs at Local Universities

Sponsor of Team America Rocket Challenge

Educational Gift Matching Program which matches employees’ financial gifts to K-12 schools and universities, dollar for dollar, and

Dollars for Doers Program matches employees’ time in the classroom with funds for that school .

Robust Technical Intern Program

Partnerships with universities in specific areas of Rocket Propulsion Research

What More Can Be Done to Foster the Optimistic Case Focus On Developing More Science/Math Teachers To Be Deployed In Elementary/Junior High Prizes For Innovation/Scientific Achievement At All Grade Levels Prior To College Increased Science/Math/Technology Scholarships Better Outreach To Showcase U.S. Technology To Younger Generation

Focus On Developing More Science/Math Teachers To Be Deployed In Elementary/Junior High

Prizes For Innovation/Scientific Achievement At All Grade Levels Prior To College

Increased Science/Math/Technology Scholarships

Better Outreach To Showcase U.S. Technology To Younger Generation