Cubic Global Tracking Solutions Greater Profits and Enhanced Supply Chain Security Randall Shepard, VP and Acting GM November 17, 2010 Cubic Global Tracking Systems All Rights Reserved-2010

Presentation Overview Areas of Value Service Options Life-cycle cost Way Ahead Cubic Global Tracking Systems All Rights Reserved-2010

Greater Profits and Enhanced Security Can we achieve the enhanced logistics security desired by the US Department of Homeland Security (DHS) and international Customs agencies while also increasing corporate profits? Can the Automated Identification Technology (AIT) used for container security actually increase net profit rather than be deemed to be an additional security tax? If the answer to these questions is “Yes”, then the whole decision process changes from “why” to “how and when ”. Cubic Global Tracking Systems All Rights Reserved-2010

Greater Profits Supply Chain Attributes that Contribute to Greater Profits Less Expensive –Better utilization of shipping asset s –Lower insurance premiums Faster –Improved supply chain management –In-transit route optimization Higher Quality –Environmental monitoring –Continuous visibility More Deterministic –Fast Lane Processing –Continuous Chain of Custody Much more effective than 100% scans Cubic Global Tracking Systems All Rights Reserved-2010

CGTS Copyright © 2010 Automated Identification Technology (AIT) Not including bar code or passive RFID. No real security benefit. Includes enhanced active RFID or mobile mesh RFID (mmRFID) –Data rich –Sensors including GPS Includes autonomous Global Tracking –Tracking, monitoring, controlling, securing –Highly reliable, secure global communications –Platform architecture for sensors and applications –Remote configuration and upgrade Assumes Reliable Low Latency alert notifiers –SMS, , XML 5 Cubic Global Tracking Systems All Rights Reserved-2010

CGTS Copyright © 2010 Product and Technology Overview Global Sentinel 4CGlobal Sentinel 5BGlobal Sentinel 5LMesh Products Device Management Center  Vehicle, refrigerated container or special container.  GPS, GSM, Iridium and wireless sensors  Globally deployable.  Status: Deployed  Dry container door beam mount  Designed for dry containers  GPS, GSM, and Iridium  Multiple sensors  Status: Deployed  Dry, Reefer, Truck and Permanent Install  Designed for multiple use applications.  GPS, GSM & Iridium  Multiple sensors  Status: Deploying  Yard management  Pallets, containers, trailers and vehicles  Condition Based Management Status: Deploying  Process data from devices  Waypoint: Position and status messages  Event: Unauthorized entry & sensor limit.  Data analysis  Status: Continued enhancement System Overview End Customers  Tagged Asset  Global Comms Network  Device Management Center  3rd Party Back Office Satellite, Cellular or Wireless (Least Cost Routing) Satellite, Cellular or Wireless (Least Cost Routing) Secure Access Real-time alerts Cubic Global Tracking Systems All Rights Reserved-2010

CGTS Copyright © 2010 Integrated and Modular Approach Customer Importer CustomsTerminalCarrierCustomsTerminal Broker/ Agent Supplier Reefer ContainerDry Container Tracking and Monitoring Least Cost Routing (Wireless, GSM, Satcom) Customer Back Office Applications Secure Web Access Alerts DMC Authentication Server Cubic Global Tracking Systems All Rights Reserved-2010

CGTS Copyright © 2010 Current Market Availability Low cost mesh based tags –Ultra-low power –Encrypted –True ad hoc networking –Variety of sensors including GPS –DoD endorsement for next generation AIT Intelligent, infrastructure-free asset management solutions  IA certified secure data to existing servers  Reliable, autonomous global tracking requiring no infrastructure  Low-latency event reporting and analysis  Dependable real-time monitoring of the location, status and security of intermodal cargo & containers.  Remote reconfiguration of reporting and sensors settings  Rapid deployment and integration with any legacy systems Cubic Global Tracking Systems All Rights Reserved-2010

CGTS Copyright © 2010 Enhanced ITV Services VEHICLE DEVICE GPS enabled (Via SatCom) Sensor Enabled SatCom Interface Mesh Network Interface External Powered Internal Powered Active RFID Interface Distribution Platform CONTAINER DEVICE Mesh Network Interface Internal Powered a RFID Interface GPS enabled Sensor enabled ISO Container CONTAINER VEHICLE ITEM ITEM DEVICE Mesh Network Interface Internal Powered Sensor enabled 11 CGTS Copyright © 2010 Cubic Global Tracking Systems All Rights Reserved-2010

CGTS Copyright © 2010 JLOTS: Ship Board ITV Mobile Mesh RFID Applications Cubic Global Tracking Systems All Rights Reserved-2010

CGTS Copyright © 2010 Actionable Versus Store-and-Forward Information latency affects service value Stored data via a RFID or regional comms can provide history –Security state –Environmental history –Route history Stored data may be sufficient for Fastlane Actionable data via continuous global communications (Iridium) Continuous reporting allows pro-active action in-transit –Security breach –Route deviation –Mishandling and other out-of-tolerance states –Delays Flexible reporting interval provides efficiency Cubic Global Tracking Systems All Rights Reserved-2010

CGTS Copyright © 2010 Beacon Versus Report-by-Exception Actionable data can be determined on the server or on the device Server-based decision making requires frequent reporting Device-based decision making allows reporting by exception Using route deviation as an example –Assume 15 minute maximum latency –Beacon must report every 15 minutes to provide serve with data –Smart device must only check position every 15 minutes –Considerably affects life-cycle cost Assume battery powered global communications device –Beacon must report 2,880 times per month –Smart-device may report only routine status 30 times per month –Almost 100 times difference in battery use and communications cost Cubic Global Tracking Systems All Rights Reserved-2010

CGTS Copyright © 2010 How Optimized Reporting Works Up to 2,000 Geozones on a device each with unique reporting attributes. Easily changed via remote uplink. Geoboundaries on server control distribution of Alerts

CGTS Copyright © 2010 Success Through Collaboration Significant Commercial Value Available –Lower costs –Better quality –Faster Shipping –Deterministic supply chain Effective Industry Solutions Available –aRFID and mmRFID –Autonomous reporting –Secure data –Global access What is Needed –Established security standards – interoperability –Fastlane commitment –Certification process Certified Quality of Service Standards are Required Cubic Global Tracking Systems All Rights Reserved-2010