2012 Preliminary Results - Cobham · 2020. 7. 30. · 2012 Preliminary Results ... Partners Service centres Regional workshops •Positioned with Inmarsat as GX launch partner for

The most important thing we build is trust

DEFENCE SYSTEMS DIVISION • Defence Electronics

MISSION SYSTEMS DIVISION • Aviation Services

• Life Support

• Mission Equipment

AEROSPACE AND SECURITY DIVISION • Aerospace Communications

• Antenna Systems

• SATCOM

• Tactical Communications and Surveillance

2012 Preliminary Results

7 March 2013

Cobham plc 1 1 1

Agenda

• Introduction Bob Murphy Chief Executive Officer

• Financial Results Warren Tucker Chief Financial Officer

• Business Review Bob Murphy

• Q&A

Cobham plc 2

Summary Profit and Loss Account

Order book of £2.4bn

Year to

31/12/11

Year to

31/12/12 Change

£m £m

Revenue 1,854.4 1,749.4 (5.7%)

Core Revenue (ongoing businesses) 1,633.6 1,712.9 4.9%

Trading Profit 364.9 333.1 (8.7%)

Trading Margin 19.7% 19.0% (0.7)pts

Underlying Profit before Taxation 327.9 302.2 (7.8%)

Underlying Earnings Per Share 22.0p 22.6p 2.6%

PV Spend % 4.9% 5.3% 0.4pts

Cobham plc

Underlying Earnings Per Share Growth

3 3

Cobham plc 4

Summary Cash Flow and Dividend

Net Debt £359.9m, Net Debt:EBITDA 0.9x

Note: * Free Cash Flow has been redefined to include the cash cost of EiD restructuring. The prior year comparative has been restated accordingly.

** Based on Underlying Earnings. including

Year to

31/12/11

Year to

31/12/12 Growth

£m £m

Operating Cash Flow 337.1 339.3 0.7%

Operating Cash Conversion 94.8% 104.2% 9.4pts

Free Cash Flow from Business * 250.9 241.1 (3.9%)

Acquisition payments less divestment proceeds, other related costs and loans to JVs 71.1 (274.6)

(Increase)/Decrease in Net Debt 93.6 (127.4)

Dividend per Share 8.0p 8.8p 10.0%

Dividend Cover ** 2.8x 2.6x

Cobham plc

Cobham Aerospace and Security

5 5

• Total revenue increased primarily due to acquisition of Thrane & Thrane and full year effect of Trivec-Avant acquisition

• Organic revenue decreased by 4%, driven by lower vehicle intercoms revenue into the US

• Strong double digit Airbus revenue growth, driven by increased production volumes & favourable mix

• Continuing to benefit from strong demand for counter IED technology

• Contract with Embraer to provide the Passenger Address System on the KC-390

Cobham plc

Cobham Defence Systems

• US defence focused with revenue to export markets increasing, mainly missile guidance systems

• Completion of deliveries on Flight 7 of the US Wideband Global Satellite (WGS), with Flights 8, 9 and 10 in the pipeline

• F-15 Digital Electronic Warfare System upgrade programme moved from development into production, with export shipments

• EA-18G ALQ-99 Low Band Transmitter Full Rate Production Lot 6 award, with orders from first foreign customer, Australia

6 6

Cobham plc

Cobham Mission Systems

• Organic growth driven by increased aerial refuelling revenue, with lower sales of land products

• Increased shipments of aerial refuelling pods to US and international customers, with strong aftermarket demand continuing

• Contract awards to provide body fuel tanks and fuel tank inerting system module for the USAF KC-46 tanker programme

• OEM and aftermarket demand for oxygen and safety products for commercial applications, including B787 fuel tank inerting

7 7

Cobham plc

Cobham Aviation Services

• Organic revenue growth primarily from Australian operations, with two additional aircraft joining the QantasLink fleet and mining industry contract extensions

• Awarded two year contract extension to 2021 for civil maritime surveillance in Australia

• UK joint venture extended MoD Helicopter Flying School contract to 2016 with new contracts for training and support services in Europe and the Middle East

8 8

Cobham plc

Life Support

Aviation Services

Defence Electronics

Antenna Systems

Tactical Comms &

Surveillance

Aerospace Communications

9 9 9

Continuing to Shape the Portfolio

HIGHER

LOWER

Building Scale In Top 3

Ma

rke

t G

row

th

Non US Defence / Security Commercial

US Defence / Security

Fluid & Air

Countermeasures

Analytic Solutions

Beacons

Cabin oxygen

Major Divestments

M/A-COM Technology Solutions

SATCOM

Cobham plc 10

Excellence in Delivery £m

2010 2011 2012 2013

9

34

48

0

55 60

Benefits

Actual/forecast EiD2

Actual/forecast EiD1

Cumulative exceptional cost

23 62 100 131

5 70

11

70

19

70

30

2014 2015 2016

19 41 60 EiD2

EiD1

65

81 89

100

Total cost £191m

Unchanged from original

plan

Cobham plc

Financial Highlights

• Organic revenue broadly flat – growth in commercial and non US defence markets

• Thrane & Thrane integration progressing well, business performing ahead of plan

• Real operational and customer benefits from EiD: £48m of annualised savings to date

• Further site rationalisations announced, with reinvestment in the business

• 104% operating cash conversion; net debt/EBITDA of 0.9x gives strategic flexibility

• Continued progressive dividend increase – 10% in full year

11 11

Cobham plc 12 12 12

Agenda

• Introduction Bob Murphy Chief Executive Officer

• Financial Results Warren Tucker Chief Financial Officer

• Business Review Bob Murphy

• Q&A

Cobham plc

Business Review Returning to sustainable growth

• The dynamic markets we operate in

• Our strategy to return to growth

• Differentiated growth opportunities

13

Cobham plc

Group Revenue Analysis Actively reshaping our revenue profile towards growth

14

2011 2012

Note: 2012 revenue charts shown with Thrane & Thrane included on a pro forma full year basis

USA 56%

Other EU countries

14%

Australia 12%UK 9%

RoW 9%


48%

Non US Defence / Security

25%

Commercial27%

USA 50%

Other EU countries

17%

Australia 13%

UK 10%

RoW 10%


40%


26%

Commercial34%


40%


26%

Commercial34%

USA 50%

Other EU countries

17%

Australia 13%

UK 10%

RoW 10%


48%


25%

Commercial27%

USA 56%

Other EU countries

14%

Australia 12%UK 9%

RoW 9%

2011 2012 2011 2012

USA 56%

Other EU countries

14%

Australia 12%UK 9%

RoW 9%


48%


25%

Commercial27%

USA 50%

Other EU countries

17%

Australia 13%

UK 10%

RoW 10%


40%


26%

Commercial34%

2011 2012

USA 56%

Other EU countries

14%

Australia 12%UK 9%

RoW 9%


48%


25%

Commercial27%


40%


26%

Commercial34%

USA 50%

Other EU countries

17%

Australia 13%

UK 10%

RoW 10%

2011 2012


48%


25%

Commercial27%


40%


26%

Commercial34%

USA 56%

Other EU countries

14%

Australia 12%UK 9%

RoW 9%

USA 50%

Other EU countries

17%

Australia 13%

UK 10%

RoW 10%

2011 2012

USA 56%

Other EU countries

14%

Australia 12%UK 9%

RoW 9%


48%


25%

Commercial27%

USA 50%

Other EU countries

17%

Australia 13%

UK 10%

RoW 10%


40%


26%

Commercial34%

Commercial revenue increased & US defence/security decreased

Cobham plc

Our Markets Outlook for US Defence/Security

• Declining defence budgets in the US unless world events cause a change in national defence posture

• Increased focus on technologies that support the “Pivot to Asia” - less emphasis on land

• Actions taken to make our business more agile and efficient - helping us to adapt

• Breadth of our platform and programme positions helps us – new and retrofit

15

Cobham plc

Our Markets Outlook for non US Defence/Security

• Europe defence budgets are flat, with Asia, Middle East and South America remaining strong

• Indian Government plans to increase defence spending by 14% next year

• Geo-political tensions remain high - the world is not a safer place

16

Cobham plc

Our Markets Outlook for Commercial

• Operate in a number of specialist commercial markets, including aviation services and SATCOM

• Demand for natural resources, offshore oil and gas and commercial shipping increasing

• Increasing number of aircraft retirements will drive commercial aircraft growth

• Size, weight and power will remain key technology drivers to reduce operating costs

17

Overall, a lot of noise, but no change in market outlook

Cobham plc

Strategic Objective Returning to Sustainable Growth

18

Technology and know-how are our key competitive differentiators

We will build and maintain leading positions in our chosen markets by leveraging innovative technology know-how with a deep insight into customer needs

This will enable us to generate sustainable top and bottom line growth, outperforming the markets in which we operate, while consistently generating good free cash flow and creating shareholder value

Cobham plc

Strategic Actions Primary focus for 2013

19

1. Improve insight to customer needs with increased levels of technology investment, driven by a new Group level position

2. Operate from a more competitive cost base by further reducing the number of locations and headcount through an extension of EiD

3. Improve the core competency of project management, driven by a new Group level position

4. Deploy strategic workforce planning to continually develop market relevant capabilities and an agile change orientated culture

5. Focus the acquisition pipeline on strategic priorities to bring more balance through market cycles, with superior integration processes

Focusing on the key enablers

Cobham plc

Standard Operating Framework (SOF) implementation

• Production System 13 sites

• Engineering 5 sites

• Supply Chain 6 sites

Site Rationalisations

• 4 integrations in 2012

• 5 underway

• „EiD 2‟ extending integration aspects to end of 2015

ERP

• Detailed design completed, build & test underway

Excellence in Delivery Execution – the bedrock organic growth is built on

Transforming performance and culture – underpins sustainable organic growth

On Time Delivery Performance*

20

• A measure of on time delivery performance, in full, to the original commitment

• On track to achieve industry best practice

• Sites implementing EiD for less than a year match the trajectory

Industry best practice >95%

*Performance across nine sites implementing EiD for more than 1 year

Cobham plc

Business Review Returning to sustainable growth

• The dynamic markets we operate in

• Our strategy to return to growth

• Differentiated growth opportunities

21

Cobham plc 22

Sources of growth include • Critical to re-capitalise AAR capability

globally

• Emphasis on interoperability to support coalition forces

• Buddy store driven by new fighter/UAS

• Investment in UCAV refuelling continues

• Good visibility of production programmes with strong aftermarket prospects

KC/MC-130J

Indicative Programme Durations (Excluding aftermarket)

Potential

Further production sales

Air-To-Air Refuelling (AAR) Technology know-how drives market position

Development Production

A400M

KC-46

New Generation Buddy Store

KC-390

A330

Positioned on every major accessible AAR programme

KC-X/Y

Production

Sales




Aftermarket

Cobham plc

Aviation Services Uniquely positioned to take advantage of market growth

23

Sources of growth include:

• High end special security missions

• Australian natural resources industry growth

• Combining technology & aviation know-how with infrastructure enables

• Unique solutions to drive high performance

• Underpins long term customer relationships today & in the future

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

SantosQantas

OK TediAaE

Fugro LADSMinaraBHPB

Chevron

Australian Border ProtectionUK MoD

UK SurveillanceNATO Defence

and Security

Commercial

Indicative Contract Durations

High performance, long term contract business

Options Order book History

Cobham plc

IP Mesh Radios Leveraging communication technology

Seeing and understanding market needs is key to growth


• Demand for natural resource and critical infrastructure protection

• Security and public order policing at major political, sporting and cultural events

• Demand for wireless broadcast TV of news and events with lower operating costs

• Ability to reduce Size Weight and Power (SWaP)

• Over three years improvements of: 85% weight, 50% power usage, 90% size

• Constant pressure on available spectrum driving maximum usage of channels

Los Angeles Police Department used Cobham communication technology to manage the transportation of the shuttle Endeavour. Photo credit: NASA

Managers in coal mines use Cobham technology to help ensure continual access to critical production data and to maintain situational awareness

Broadcasters used Cobham technology from the start of the Torch Relay to the closing ceremony

24

Cobham plc

SATCOM Leading technology and unique global service capability

25


• Demand for bandwidth and communication across

Strong market & discriminating competitive position underpins growth

Partners Service centres Regional workshops

• Positioned with Inmarsat as GX launch partner for maritime and land

• Scalable model for distribution/sales with 250 partners across EMEA, Americas & Asia

• Industry‟s largest network of 50 service and support centres in strategic ports

• New radio module core of all future Broadband Global Area Network (BGAN) products - 30% reduction in land terminal size

• Marine - merchant, workboats, fishery and leisure • Land - media, government and military • Aero - corporate, government and airlines

Cobham plc

Summary

• Delivered a good set of results in market conditions that continue to be challenging

• Guidance for 2013 and beyond remains unchanged

• Anticipate return to modest organic growth from 2014, rising to above mid single digit

• Opportunities to generate future growth

• Continuing to shape the portfolio with a bias toward Commercial acquisitions

• Strategic actions aligned with long term policy of paying a 10% progressive dividend

26 26

On path to return to sustained organic growth

Cobham plc

Appendices

• Investor Relations Calendar • Key Performance Indicators • 10 Year CAGRs • Revenue and Profit – Divisional Summary • Market Data • Ship set values • Safe Cities • Excellence in Delivery • Shareholder returns • Cash flow summary • Core Business Revenue Growth • Foreign Exchange Transaction Exposure • US$/£ Translation Exchange Rates • Reconciliation of IFRS to Underlying Result • Definitions • Glossary • Cautionary Statement

27

Cobham plc

2013 2014

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Announcements

Investor Events

Investor Relations Calendar

11 Interim

Management Statement

8 Interim Results

25 AGM

& Interim

Management Statement

6 Prelim Results

10 SATCOM

Site Visit

Copenhagen

W/C 9 DSEI

Exhibition London

W/C 17 Paris Air

Show

28

Cobham plc

Key Performance Indicators

29 29

Year to

31/12/07

Year to

31/12/08

Year to

31/12/09

Year to

31/12/10

Year to

31/12/11

Year to

31/12/12 CAGR

Core Business Organic Revenue Growth 10.6% 9.5% 0.9% 0.7% 0.3% (0.8)% 3.4% (1)

Defence / Security 9.8% 0.5% (3.2)% (1.6)% 1.3% (2)

Commercial (16.4)% 1.4% 9.6% 1.4% (1.5)% (2)

Earnings Per Share Growth (constant translation) 15.9% 13.1% 12.5% 3.8% 12.6% 3.2% 10.1% (1)

Operating Cash Conversion 81.1% 106.1% 88.6% 79.3% 94.8% 104.2% 92.4% (3)

PV Spend - Core Business % 5.6% 5.8% 6.0% 5.0% 5.2% 5.1% 5.5% (3)

(1) CAGR over 6 years

(2) CAGR over 4 years

(3) Average over 6 years

Cobham plc

10 Year Track Record

30

2.562.82

3.103.41

3.75

4.504.96

5.45

6.00

8.00

8.80

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Group Revenue (10 yr CAGR 9.9%)Group Revenue (10 yr CAGR 9.9%)Group Revenue (10 yr CAGR 9.9%)Dividend per Share (p)10 yr CAGR 13.1%

30

8.289.00 9.12

10.5811.66

13.09

15.42

18.8019.68

22.0522.63

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Group Revenue (10 yr CAGR 9.9%)Group Revenue (10 yr CAGR 9.9%)Group Revenue (10 yr CAGR 9.9%)Underlying EPS (p)10 yr CAGR 10.6%

735

833 832

9701,012

1,061

1,467

1,880 1,903 1,854

1,749

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Group Revenue (10 yr CAGR 9.9%)Group Revenue (10 yr CAGR 9.9%)Group Revenue (10 yr CAGR 9.9%)Group Revenue £m

10 yr CAGR 9.1%

7.39 7.30

8.95

10.92

9.20

11.81

17.8318.70

17.83

22.43 22.43

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Free Cash Flow per Share (p)10 yr CAGR 12.4%

Cobham plc

£m

Year to

31/12/11

Year to

31/12/12

Organic

Growth

Year to

31/12/11

Year to

31/12/12 Growth

Cobham Aerospace and Security 637.0 697.3 (3.8)% 146.9 149.1 1.5%

Margin 23.1% 21.4%

Cobham Defence Systems 323.9 322.9 (1.5)% 54.7 44.9 (17.9)%

Margin 16.9% 13.9%

Cobham Mission Systems 371.8 372.6 (0.1)% 84.2 81.3 (3.4)%

Margin 22.6% 21.8%

Cobham Aviation Services 308.1 326.6 5.2% 41.5 38.0 (8.4)%

Margin 13.5% 11.6%

Head Office and eliminations (7.2) (6.5) 15.1 14.9

Core Businesses 1,633.6 1,712.9 (0.8)% 342.4 328.2 (4.1)%

Margin 21.0% 19.2%

Non core businesses 220.8 36.5 22.5 4.9

Cobham Group 1,854.4 1,749.4 (0.6)% 364.9 333.1 (8.7)%

Margin 19.7% 19.0%

Revenue Trading Profit

Revenue and Profit Divisional Summary

31

Cobham plc

Market Data

32

400

450

500

550

600

650

2012 2013 2014 2015 2016 2017

$bn

Source: Citi Research

US defence market

FYDP (2013 - 2017)

2% CAGR

Sequestration

-1% CAGR

0

20

40

60

80

100

120

140

160

2012 2017

$bn

Source: JP Morgan, including India, Saudi Arabia, Australia, Brazil, Japan, Oman, and Thailand

Faster growing geographic regions -

defence procurement and R&D

6% CAGR

0

200

400

600

800

1000

1200

1400

2012 2013 2014 2015 2016

Aircraft Deliveries

Source: BAML

Regional and business jet market

14% CAGR

0

200

400

600

800

1000

1200

1400

1600

1800

2012 2013 2014 2015 2016

Aircraft Deliveries

Source: BAML

Commercial transport market

6% CAGR

Cobham plc

Ship Set Values

33

Milita ry /Fa st Je t T ra ine rs US$k

F16 400-800

F/A 18 E/F/G 860-4,000

F35 1,100

Eurofighter Typhoon 1,450

Hawk 500

Rafale 250

PC-7 160

T50 150

Gripen 180-500

Me d ium/La rg e Milita ry

A400M 3,000

C17 500

C130 /KC130 300-3500

UAV/Miss ile s

Predator/Reaper 350-720

AMRAAM 140

AARGM 120

PAC3 /Patriot 130

Standard Missile 65

Global Hawk 1,900-2,320

Ro ta ry US$k

EH101 380-600

EC 175 80-170

Apache 520

CH47 (Chinook) 90

CH 53K 480

S 61 500

MH60/UH 60 220-500

V22 1,100

Co mme rc ia l

A320 60

A350 130

A380 300

B737 50-110

B777 50

B787 110-150

C919 35

G650 30

Na va l

EDG 1000 1,200-1,400

Aegis DPYIDV 2,200-2,600

Cobham plc

Safe Cities Scalable private secure communications network

34

Cobham plc 35

Shareholder Returns

Year to

31/12/11

Year to

31/12/12 Growth

Underlying Tax Rate 25.5% 20.0%

Earnings Per Share

Underlying 22.0p 22.6p 2.6%

Basic 16.8p 16.1p

Diluted 16.8p 16.1p

Free Cash Flow Per Share 22.4p 22.4p -

Cobham plc 36

Cash Flow Summary

Year to

31/12/11

Year to

31/12/12

£m £m

Trading profit (excluding joint ventures) 355.5 325.7

Depreciation and other movements 69.2 67.7

Pension contributions in excess of service cost (48.8) (15.4)

Decrease in working capital and provisions 11.0 23.7

Net capital expenditure (49.8) (62.4)

Operating cash flow 337.1 339.3

Net interest paid (33.0) (28.7)

Taxation paid (24.3) (45.2)

Dividends received from joint ventures 8.1 7.5

EiD restructuring costs (37.0) (31.8)

Free cash flow 250.9 241.1

Dividends paid (69.4) (92.5)

Acquisition payments less divestment proceeds, other related costs and loans to JVs 71.1 (274.6)

Insurance proceeds related to settlement of commercial dispute 6.0 -

Net purchase of treasury shares (159.5) (18.8)

Exchange movements (5.5) 17.4

(Increase)/Decrease in net debt 93.6 (127.4)

Net Debt 232.5 359.9

Net Debt : EBITDA 0.5 0.9

Cobham plc

Business Revenue Growth

37

Cobham plc

Foreign Exchange Transaction Exposure

38

Historic average effective rate

2009 $1.70 : £1 2010 $1.58 : £1 2011 $ 1.56 : £1 2012 $1.59 : £1

Dollar/Euro exposure predominantly hedged for 2013 with $42m @ 1.33 & 2014 $21m @ 1.31

2013 Total $146m

Hedging in place $139m

$76m

95% hedged for 2013

Avg hedge rate $1.59: £1

2014

Hedging in place

Avg hedge rate $1.61: £1

Avg hedge rate $1.58: £1 $18m 2015 to 2016

38

Cobham plc

US$/£ Translation Exchange Rates

39

£0.6m PBT translation impact for every 1 cent movement

Dec 2010 Dec 2011 Dec 2012

Income Statement

(average rate) 1.55 1.60 1.58

Balance Sheet

(closing rate) 1.57 1.55 1.63

Cobham plc 40

Reconciliation of IFRS to Underlying Result

Year to

31/12/11

Year to

31/12/12

£m £m

Profit before taxation 234.3 206.0

Business restructuring - primarily Excellence in Delivery 31.9 37.9

Movements in non-hedge accounted derivative financial instruments 5.4 (11.1)

Amortisation of intangible assets arising on business combinations 68.0 68.9

Insurance proceeds related to settlement of commercial dispute (6.0) -

M&A related adjustments 4.1 1.7

Business divestments and similar income (27.1) (2.9)

Debt and interest rate swap cancellation costs re. divestments 15.4 -

Unwinding of acquisition related discounting 1.9 1.7

Underlying profit before taxation 327.9 302.2

Cobham plc 41

Definitions

Core businesses Underlying

All numbers referring to „core‟ businesses exclude Analytic Solutions, which was divested in November 2011 and Commercial Systems which was substantially divested in July 2012. To assist with the understanding of earnings trends, the Group has included within its published statements trading profit and underlying earnings results. Trading profit has been defined as operating profit from continuing operations excluding the impacts of certain M&A related costs and business restructuring costs as detailed below. Also excluded are changes in the marking to market of non-hedge accounted derivative financial instruments and items deemed by the Directors to be of an exceptional nature. Underlying earnings are defined as trading profit less net underlying finance costs, which excludes the unwinding of acquisition related discounting, and after deducting taxation and non-controlling interests. M&A related costs excluded from trading profit and underlying earnings include the amortisation of intangible assets recognised on business combinations and the writing off of the pre-acquisition profit element of inventory written up on acquisition. M&A related costs also include other direct costs associated with business combinations, adjustments to contingent consideration related to previously acquired businesses and direct costs from terminated divestments.

Business restructuring costs

EiD restructuring costs comprise exceptional costs or profits associated with the restructuring of the Group‟s portfolio including costs associated with the Excellence in Delivery programme.

Operating Cash Flow

Operating cash flow is defined as cash generated from operations after cash flows from the purchase or disposal of property, plant, equipment and intangible assets. Operating cash conversion is defined as operating cash flow as a percentage of trading profit, excluding profit from joint ventures. Free cash flow is operating cash flow after net interest, taxation, dividends received from joint ventures and the cash cost of business restructuring. Net debt is defined as the net of cash and cash equivalents less borrowings at the balance sheet date.

Free Cash Flow per share Organic revenue growth PV Investment

Defined as free cash flow/average number of shares in issue Organic revenue growth is defined as revenue growth stated at constant translation exchange rates, excluding the incremental effect of acquisitions and divestments. Private Venture (PV or company funded R&D – Research and Development) measures exclude Aviation Services, where there is no R&D activity.

Cobham plc

Glossary

AARGM Advanced Anti-Radiation Guided Missile AMRAAM Advanced Medium-Range Air-to-Air Missile C4ISR Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance CAGR Compound Annual Growth Rate CAS Cobham Aerospace and Security CAvS Cobham Aviation Services CDS Cobham Defence Systems CMS Cobham Mission Systems DoD Department of Defense EBITDA Earnings Before Interest Tax Depreciation and Amortisation EiD Excellence in Delivery EPS Earnings Per Share ERP Enterprise Resource Planning FX Foreign Exchange GA General Aviation IFRS International Financial Reporting Standards IP Internet Protocol JSF Joint Strike Fighter JV Joint Venture M&A Mergers & Acquisitions OEM Original Equipment Manufacturer PBT Profit Before Tax PV Private Venture (Company funded R&D) RAIMS Radio and Audio Integration Management System R&D Research & Development RDT&E Research, Development, Test and Evaluation RFP Request for Proposal RoW Rest of World SATCOM Satellite Communication SBU Strategic Business Unit SOF Standard Operating Framework UAV Unmanned Aerial Vehicle

42

Cobham plc

Notes Page

43 43

Cobham plc

Notes Page

44 44

Cobham plc

Cautionary Statement

For the purposes of the following disclaimers, references to this “document” shall be deemed to include references

to the presenters‟ speeches, the question and answer session and any other related verbal or written

communications.

This document contains certain “forward-looking statements” with respect to the financial condition, results of

operations and business of Cobham plc (Cobham) and to certain of Cobham‟s plans and objectives with respect to

these items. Forward-looking statements are sometimes but not always identified by their use of a date in the

future or such words as “anticipates”, “aims”, “due”, “could”, “may”, “should”, “expects”, “believes”, “intends”,

“plans”, “targets”, “goal”, or “estimates”. By their very nature, forward-looking statements are inherently

unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on

circumstances that may or will occur in the future. There are various factors that could cause actual results and

developments to differ materially from those expressed or implied by these forward-looking statements. These

factors include, but are not limited to, changes in the economies, political situations and markets in which the Group

operates; changes in government priorities due to programme reviews or revisions to strategic objectives; changes

in the regulatory and competition frameworks in which the Group operates; the impact of legal or other proceedings

against or which affect the Group; changes to or delays in programmes in which the Group is involved; the

completion of any acquisitions and divestitures and changes in currency exchange rates. All written or verbal

forward-looking statements, made in this document or made subsequently, which are attributable to Cobham or any

other member of the Group or persons acting on their behalf are expressly qualified in their entirety by the factors

referred to above. Cobham does not intend to update these forward-looking statements.

45 45

Documents

2012 Preliminary Results - Cobham · 2020. 7. 30. · 2012 Preliminary Results ... Partners Service centres Regional workshops •Positioned with Inmarsat as GX launch partner for