Electronic Systems Overview July 2014 (1)

8/11/2019 Electronic Systems Overview July 2014 (1)

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Electronic Systems

July 2014


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Northrop Grumman Today

Leading global security company

2013 sales of ~$24.7 billion

Unmanned Systems Cyber

Logistics

Strike aircraft

Electronic Systems

2013 sales of $7.1 billion

2013 operating margin rate of 17.1%

$9.6 billion backlog (6/30/14)

~17,000 employees

Top tier global defense electronics supplier

Strong sustainable performance for shareholders and customers

Strong sustainable performance for shareholders and customers3


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Electronic Systems Value Proposition

Performance

Margin performance and cash generation

Invest and innovate for affordability

Diverse, engaged workforce

-

Protect the core and adapt existing solutions

Capitalize on extensive installed base n erna ona expans on on g o a core

Invest in select breakthroughs and near adjacencies

Elevate partnerships, supply chain

Risk Management

Focus on execution

Smart ca ture mana ement

Scalable enterprise

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Financial Performance

Stable revenue erformance inSales and Margin

challenging budget environment

Outstanding margin rate performance 14.5%

17.1%

16%

8

9

17.1%

ps marg n ra e expans on

Solid program performance

Disciplined focus on cost andaffordabilit

12.6%

.

12%

14

6

7

lions

Portfolio shaping to focus oncore competencies 7.7 7.6 7.4

7.0 7.18%

10%

3

4

5$

Bil

as Consistently strong cash

conversion

4%

6%

1

2

2%0

2009 2010 2011 2012 2013

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Strategy

CoreCore Near AdjacenciesNear Adjacencies

Fixed-Wing Rotary

Air ForceMarines

Protecting and AdaptingProtecting and Adapting TransitioningTransitioning

InternationalInternational LongLong--Term DifferentiationTerm Differentiation

Capitalinvestment

Common buildingblocks acrossdomains

Outstanding CRAD Technology

Centers ofExcellence

Sustained highIR&D

ExpandingExpanding Investing for the FutureInvesting for the Future

6

performancebreakthroughs


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Portfolio Where We Work

Baltimore, MDC4ISR: Radar, Exploitation

InternationalEmployees: 2,000Revenue: 24%

Employees: 15,000Revenue: 76%

Rolling Meadows, ILC4ISR & Cyber/NK: EO/IR,

Electronic Warfare

Sunnyvale, CAPrecision Gear, Heavy Machinery

Serving an installed base in ~70 nations across six continentsServing an installed base in ~70 nations across six continents

Woodland Hills, CAC4ISR: Navigation, Situational Awareness

Azusa, CAC4ISR: Space Sensors

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Portfolio Who We Serve

Our Customers46%

54%

7%

U.S. Army

Prime Sub

22%U.S. AirForce

20%

U.S. Navy

28%

72%

23%International

28%Competitive Sole Source

. .Govt

38%62%

75%

Cost Type Fixed Price/T&MAll data are based on 2013 Sales

8

Sales $7.1B


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Portfolio What We Do

Sit Awareness

Business Focus Areas C4ISR Business Focus Area

Cyber

Other12%

PED6%

C4ISR68%

Navigation

9%

11%

Radar61%

EO/IR28%

60%

9

PED = Processing, Exploitation and DisseminationAll data are based on 2013 Sales


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C4ISR

Radar / RF Key capabilities

Space Sensors

Key capabilities

,control, tactical surveillance, maritime

surveillance, air and missile defense

Key products / programs

F-35 F-22 F-16 radar famil

Weather sensors Active and passive RF and EO


737 MESA, AWACS

Global Hawk, Triton, Joint STARS

TPS-78, G/ATOR

DSP, SBIRS

Key opportunities

Restricted-

Key opportunities

Global F-16, airborne surveillance, globalground-based air defense upgrade market

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C4ISR (continued)

Electro-Optical

Key capabilities

Targeting

Key capabilities

IR warning and jamming

Threat warning sensors


Targeting and surveillance;ranging, designation andillumination

IRCM product family

Key opportunities

Integrated aircraft self-

LITENING, F-35 DistributedAperture System (DAS), LLDR

Ke o ortunitiesprotection equipment

LITENING expansion

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C4ISR (continued)

Processing, Exploitation andDissemination (PED)

Situational Awareness

Key capabilities

Key capabilities

Enterprise integration of multi-intelligence mission data acrossall domains

Modular integrated avionics suites

and components Key products / programs


DCGS

SBIRS Ground Processing

Key opportunities

International upgrades

Key opportunities

International

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Navigation

Key capabilities

systems


Wide array of products for ships, aircraft,space craft, and weapons systems

GPS-challenged environments

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Cyber(including Non-Kinetic / Electronic Warfare)

Key capabilities

Electronic attack, electronic support,

information operations, specialcommunications, EW simulation


ALQ-218, APR-39, P-8 EWSP andESM, DoD and Intel Communityprograms

Key opportunities

nmanne Restricted

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Marine & Undersea

Key capabilities

Naval ower and ro ulsion controlsystems, launchers, integrated bridge

systems, undersea sensors/controls

Machinery controls, nuclear instrumentationand control, mine countermeasures,

support to current U.S. submarine force

Key opportunities

International mine hunting, surface and

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Diverse Portfolio for Value Growth

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Electronic Systems Value Proposition

Performance

Margin performance and cash generation

Invest and innovate for affordability

Diverse, engaged workforce

-

Protect the core and adapt existing solutions

Capitalize on extensive installed base nternat ona expans on on g o a core

Invest in select breakthroughs and near adjacencies

Elevate partnerships, supply chain

Risk Management

Focus on execution

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Scalable enterprise


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Documents

Electronic Systems Overview July 2014 (1)