Cobham Capital Markets Day 1 October 2015/media/Files/C/Cobham-IR... · Radiation-hardened...

The most important thing we build is trust

ADVANCED ELECTRONIC SOLUTIONS AVIATION SERVICES COMMUNICATIONS AND CONNECTIVITY MISSION SYSTEMS

Cobham Capital Markets Day – 1 October 2015

Bob Murphy, Chief Executive Officer

Cobham plc

Cobham plc

Itinerary For This Afternoon

Time Event Presenter

14:00 Introduction Bob Murphy, CEO Cobham

14:05 Cobham Advanced Electronic Solutions Jill Kale, Sector President

Rafi Albarian, VP & GM Cobham Semiconductor Solutions

15:05 Coffee Break

15:25 Cobham Communications and Connectivity Fred Cahill, Sector President

Ryan Panos, VP & GM Cobham AvComm

Ian Langley, VP & GM Cobham Wireless

16:55 Concluding Remarks Bob Murphy, CEO Cobham

17:00 Drinks Reception

Capital Markets Day

1 October 2015 1



Cobham Capital Markets Day – 1 October 2015 Cobham Advanced Electronic Solutions Sector Jill Kale, Sector President

Cobham plc

Cobham plc

Cobham Advanced Electronic Solutions

Providing Critical Solutions On Land, At Sea, In The Air and In Space

1 October 2015 3

Our Mission

CAES provides mission critical, differentiated components and subsystems that protect and enhance lives, specialising in radio frequency and microwave electronics for defence and commercial applications

Revenue by Market Revenue by Business Unit

US Defence & Security

73%

Commercial 22%

Non-US Defence & Security

5%

Integrated Electronic Solutions

37%

Microelectronic Solutions

29%

Semiconductor Solutions

23%

Radio Frequency and

Microwave Solutions

11%

2015 H1 Sector Revenue £276 million, 26% of Group Revenue

We provide reliable electronics for mission-critical applications

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We Employ 3,600 People

1 October 2015 4

Integrated Electronic Solutions (IES)

Microelectronic Solutions (MES)

Semiconductor Solutions (SS)

Radio Frequency / Microwave (RFMW)

San Jose

San Diego

Colorado

Springs

Richardson

Clearwater

CAES HQ

Lawrence

Exeter

Londonderry

Hauppauge

Plainview

Eatontown Lansdale

Tijuana, Mexico

Gothenburg, Sweden

Harwell, UK

Sunnyvale

Huntington Beach

Manufacturing and engineering facilities across the USA

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Business Overview

1 October 2015 5

Domain Example Solutions Primary Customers

Space Radiation-hardened electronics Precision motion controls Satellite subsystems design

Air Electronic Warfare subsystems Sense-and-avoid radar front-ends Missile electronics

Maritime Electronic Warfare subsystems Radar components & subsystems

Terrestrial Medical imaging electronics Industrial electronics

• Blue chip customer base

• Broad product portfolio with market leading positions

• Differentiated solutions with significant technology content

• Well-positioned on high priority defence platforms and commercial products

• Strong order book with forward revenue visibility

Diversified portfolio, differentiated technology offering to a wide customer base

Medical Equipment Manufacturers

High-reliability electronics for Security and Industrial customers

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Tier Structure

1 October 2015 6

CAES Revenue Distribution by Tier

36%

52%

12%

Tier 4

Tier 3

Tier 2

Tier 1

Advantage of Tier 2/3 Positions:

Partnership culture vs. vendor

Programme visibility / shaping – higher win probability

Opportunities for increased footprint / pull-through of lower tiers

Advantage of Tier 3/4 Positions:

True merchant strategy

Less reliance on singular programmes

Generally higher margins

Sector capabilities aligned to enhance strong positions in Tiers 2, 3 and 4

• Platforms / Fully Integrated Systems

• Aircraft

• Missiles

• Medical & Industrial Equipment

• Satellites (Commercial and Military)

1

• Major Subsystems

• Complete Apertures

• Missile Subsystems

• Complete EW Subsystems

2

• Integrated Assemblies

• AESA1 Modules

• Microelectronic Assemblies

• Power Distribution Module

• Actuator/Gimbal Assembly

3

• Components

• Diodes

• MMIC2 Devices

• Semiconductors

• Rad Hard components

4

Notes: (1) Active Electronically Scanned Array; (2) Monolithic Microwave Integrated Circuit

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Low Band Transmitters

Maritime EW Programmes

Mars Rover Mission

Capabilities Technologies Example Solutions

Radio Frequency (RF) design and signal exploitation

Integrated antennas and arrays for radar warning receivers and EW

Electronic Warfare sub-assemblies for Naval and Air platforms

High power and solid-state transmitter design and applications

GaN1 Solid State Transmitters

AESA radars

SOLSTxTM transmitters

Sense-and-avoid, weather radars

Motor design, precision controls and assembly

High-reliability motion control products

Precision motors and actuators for space and planetary exploration


Integrated Electronic Solutions

1 October 2015 7

Applications

Continued focus on Size, Weight, Power and Cost (SWaP-C) improvements in Electronic Warfare and Radar markets

New satellite and unmanned system platforms

Growth Drivers

Differentiated subsystems for high-priority electronic warfare, radar and space Notes: (1) Gallium Nitride

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Radio-frequency front-end design, development and production

Digital Receiver – Exciter (DREX) AESA radar for UAV sense-and-avoid

Critical components for next generation AESA radar programmes

X-band and S-band transmitter design and signal processing

Dual-band transmitters Missile electronics

GaAs and GaN MMIC expertise, digital beamforming ASICs1

AESA T/R modules and RF subarray beamformers

High efficiency narrow and wideband MMICs for defence primes and labs


Microelectronic Solutions

1 October 2015 8

Applications

Continued focus on Size, Weight, Power and Cost (SWaP-C) improvements in Electronic Warfare, Missile and Radar markets

Pivot-to-Asia and rise of near-peer threats

Electronics for Missiles

Airborne EW Programmes

Air & Missile Defence Radar

Growth Drivers

Leading provider of RF microelectronics, enabling mission critical performance Notes: (1) Applications Specific Integrated Circuits

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JAN Diodes & Transistors

Microwave Signal Generators

Radar Components


Design of high frequency, high power RF/MW components

Hybrid, chip and wire and surface mount designs; high density module and integrated assemblies

High frequency microwave semiconductors

Standard and custom screened off-the-shelf discrete devices and components

Joint Army-Navy (JAN) diode

Semiconductor fabrication, packaging, assembly and test

Integrated microwave assemblies for radar, EW applications

Efficient production and delivery of low volume-high mix products

Niche solutions customised to unique requirements


Radio Frequency/Microwave Solutions (RFMW)

9

Applications

Radar market transition towards AESA for transmit/receive product solution

Continued demand for affordable customised solutions

Growth Drivers

Industry leading supplier of microwave & RF devices, components & subsystems

1 October 2015

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Aligned With Priority Areas In The Market

1 October 2015 10

• Strong positions in attractive markets; well-funded franchise programmes

• Trusted customer partnerships for mission-critical electronics

Market Leadership

Profitable Growth

Focused Portfolio

Technology Leadership

• Tier 2 / 3 / 4 position delivers good margins and decreases volatility

• Aeroflex adds complementary capabilities, market diversification and sales channels

• Strong defence portfolio with developing commercial business

• Continuous improvement culture delivering good top- and bottom-line performance and value-add for customers

• Differentiated technologies in Electronic Warfare, radar and missile electronics

• Continuing targeted investment in next generation technologies

Agile and trusted partner for mission-critical electronic solutions



Cobham Capital Markets Day – 1 October 2015 Cobham Semiconductor Solutions Business Unit Rafi Albarian, Vice President & General Manager

Cobham plc

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Our Vision

Be a global leader in high-performance & high-reliability microelectronics across select end markets, with comprehensive product offerings and dependable electronic manufacturing solutions

Key Facts:

• Invest in Research & Development >10% of revenue

• Own intellectual property (IP) in critical designs

• >90% revenue from sole-source or primary supplier positions

Cobham Semiconductor Solutions

Highly Specialised Leading Provider Of High-Reliability Microelectronics

12 1 October 2015

Agility in design, development and production for diverse markets

Revenue by Market Revenue by Destination

US Defence

& Security

Non-US Defence

& Security

USA

Europe

Asia-

Pacific RoW

Commercial

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Unique Capabilities And Business Model Delivering Enduring Value

1 October 2015 13

Driving Size, Weight, Power and Cost (SWaP-C) reductions

Integrated Circuits Design Pedigree

System Engineering

Circuit Card Assembly ASIC Designs

Radiation Testing Facility

Radiation-Hardened by Design

Fabless Model

Standard Integrated Circuit (IC)

Applications Specific Integrated Circuit (ASIC), Digital & Mixed-Signal

Package Solutions

System Engineering

Radiation Testing Facility

Circuit Card Assembly


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Strong emphasis on innovation and technology leadership Pie chart represents approximate contribution to portfolio Note: (1) Application Specific Integrated Circuits

Standard Integrated Circuit

Electronic Manufacturing Solutions (EMS)

Industrial and Aerospace & Defence ASIC1

Security and Medical ASIC1

Systems Development Engineering SDE

Core Products and Key Capabilities


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Robust Core Market with Attractive Growth Opportunities

1 October 2015 15

High-performance differentiated solutions for diverse markets

Market Segments

Commercial Communication, Military, Civil, Weather, Small

Satellite

Computerised tomography (CT), Digital X-Ray, Ultrasound,

Molecular Detection for DNA Sequencing

Security, Resource Exploration, LED Lighting, Metering, Tape

Drive for Data Centers

Market Drivers

Adaptive and Flexible Bandwidth, High Throughput, Connectivity in Commercial

Aviation

Aging Global Population, Global Demand for Non-Invasive

Diagnostics

High Reliability, Fault Tolerant, Low Defect Rates, Size, Power

Cobham Solutions

Space-qualified Integrated Circuit, Digital & Mixed Signal

ASIC, EMS, SDE

Application-Specific Standard Product (ASSP)

Mixed-Signal ASIC

High voltage, Low Power Mixed-Signal ASIC

Space Medical Industrial

Core Growth Emerging

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Space High-Reliability Electronics

~$1.0 billion

Market Size & Growth

1 October 2015 16

Space market expected to grow mid-single digits Sources: Cobham Analysis, MarketsandMarkets, Forecast International Notes: (1) COTS – Commercial Off-The-Shelf

Mid-Single Digit

• Enduring need for high-reliability electronics for civil, military, and commercial satellites

• Accelerated technology adoption to meet requirements for bandwidth, image resolution, autonomy and intelligence gathering

• Mega Small Satellites constellations are shifting the paradigm and will pursue COTS1 ‘good enough’ solutions


Space Market Trends

Commercial Communications Satellites

• Adaptive bandwidth, High Throughput Satellite (HTS) for enhanced broadcast services

• Connectivity in Commercial Aviation

• 436 Commercial Satellites over next decade

• Inmarsat, Viasat, EchoStar

Military Satellites

• Intelligent gathering and imaging resolution

• 490 Military Satellites over next decade

• Global Positioning Satellite (GPS)

Civil & Weather Satellites

• Connectivity and advanced warning

• 669 Civil and Weather Satellite

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Medical Imaging Electronics

$250 million

Market Size & Growth

1 October 2015 17

Medical imaging market expected to grow mid-single digits Sources: Cobham Analysis, MarketsandMarkets Notes: (1) Computerised Tomography

Mid-Single Digit

• Attractive, immediately addressable; driven by global demographics, aging population, health consciousness and technology investment

• SWAP-C demand for portability and accessibility

• Entrée to the broader medical diagnostics market which is expected to grow fast

• Customer partnerships critical to navigate licensing, exclusivity and supply chain complexity

$0

$20

$40

$60

$80

$100

$120

$140

CT Ultrasound Digital X-ray

Module with Sensor Integrated Circuit

Annual Market for Medical

Imaging Electronics


Medical Imaging Electronics Market Trends

1

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Computing and signal processing in high-noise settings

Fault tolerant architectures, precise timing, low defect rates

Extreme temperature, radiation, shock, vibration, signal noise


• Gaining traction in high-reliability electronics for harsh industrial environments:

– Resource exploration

– Security Screening Scanner

– Tape Drive

– LED Lighting

– Metering

Industrial Market Applications

1 October 2015 18

High Reliability

Critical Operations

Harsh Environment

• High performance, low power

• Foundry partnerships

• Mixed signal ASICs

• Packaging

• High voltage electronics

Differentiated Capabilities Needed

Innovation, agility, and commercial technology leverage are key to winning

• Our solutions are specifically designed for:

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1 October 2015 19

Broad customer base with enduring relationships

Government Agencies Defence Primes Medical Device OEMs and

Industrial Customers

Supplier to four of the top five medical imaging equipment

manufacturers and the leading mining equipment suppliers

Satellite OEMs


Diverse Customer Base Addressing Multiple Industries

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$$

1 October 2015 20

Operational Excellence

Value Chain Consolidation

Revenue Synergy

Shared Functional Services

A B CD E

Leveraging combined capabilities to enhance value


Integration and Synergies

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Summary

1 October 2015 21

Trusted partner for competitive mission-critical solutions

• Leading ‘radiation-hardened-by-design’ position in space and defence markets

• Significant inroads with Tier 1 customers in medical and industrial markets

Strong Market Presence

Growth Prospects

Integration Synergies

Technology Leadership

• Adding complementary capabilities and market channels

• Enhancing know-how via collaboration across business units

• Diversified portfolio with increasing emphasis in commercial applications

• Leveraging commercial technologies to capture high-reliability opportunities

• Recognised leader in high-reliability electronics for extreme environments

• Focused investments in technologies, IP and market expansion



Cobham Capital Markets Day – 1 October 2015 Cobham Communications and Connectivity Sector Fred Cahill, Sector President

Cobham plc

Cobham plc

Cobham Communications and Connectivity

Our Vision

Be recognised as a world leading supplier of robust, high performance equipment and solutions that enable reliable connectivity anywhere, anytime, in the most demanding environments

Giving Our Customers A Competitive Edge Across Connectivity End-markets

23 1 October 2015

H1 2015 Revenue: £390 million, 38% of Group Revenue

13%

17%

70%

US Defence & Security

Non-US Defence & Security

Commercial

Revenue by Market Revenue by Business Unit

All figures are pro-forma excluding Cobham Composites

16%

23%

20% 9%

8%

24%

Antennas Avionics

SATCOM Surveillance

AvComm Wireless

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We Employ More Than 4,800 People On Six Continents

1 October 2015 24

Cobham Avionics Prescott, AZ

Shenzhen

Shanghai

Singapore

São Paulo

Abu Dhabi

New Delhi

Cape Town

Melbourne

Cobham AvComm Wichita, KS

Cobham Surveillance Whiteley

Cobham Antennas Marlow

Cobham Wireless Stevenage

Cobham Avionics Troyes

Cobham SATCOM Copenhagen

Customers and partners in over 100 countries

Principal Locations Sales Office

Site Locations

All figures are pro-forma excluding Cobham Composites

Beijing

Seoul

Yokogawa

Taipei

Bangalore

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Strong Underlying Global Trends Support Sector Growth Trajectory

1 October 2015 25

Well positioned to provide technology and solutions to address these needs Sources: Cobham Analysis, IMF, Atlantic Council, NIC, Boeing, PWC, Ericsson, Cisco Cobham plc

0bn

2bn

4bn

6bn

2010 2020 2030

Europe & N. America Asia-Pacific RoW

Strong underlying global trends support Sector growth trajectorySources: Cobham Analysis, IMF, Atlantic Council, NIC, Boeing, PWC, Ericsson, Cisco

GlobalPopulation

Middle ClassPopulation

0bn

2bn

4bn

6bn

8bn

10bn

Rural Urban

Shift

+13%Shift

+30%

Global Economic Growth

MobileData Traffic

0EB

10EB

20EB

30EB

Smartphone Mobile PC/Router/Tablet

CAGR

40%

ResidentAir Trips

$0trn

$20trn

$40trn

$60trn

$0trn

$20trn

$40trn

$60trn

CAGR

2.0%CAGR

5.0%

Developed Economies Emerging Economies

Propensity for Air Travel

Demand for Connectivity

Principal CCC Growth Drivers

Rising MiddleClass

0bn

1bn

2bn

3bn

4bn

5bn

2010 2040

Emerging Economies Developed Economies

Growth

160%

Urbanisation

What Underpins Our Strategy

CCC Growth Drivers and Megatrends

1 BoD Strategy Discussion Strictly Confidential

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Capabilities Products & Technologies Example Solutions

Design and manufacture of SATCOM terminals for all mobile applications

SATCOM terminals & antennas across all domains and frequency bands

SAILOR FleetBroadband, Inmarsat GX, AVIATOR Swiftbroadband, EXPLORER

Design and manufacture of rugged, high performance maritime radios

Full range of certified maritime radios for safety applications

SAILOR MF/HF and VHF radios

SAILOR VHF and UHF portable radios

Comprehensive world class sales, service and support network

More than 200 official qualified SATCOM partners globally

Technical training in products and solutions, service tools and support


SATCOM Business Unit Overview

1 October 2015 26

Enabling ubiquitous connectivity by satellite and radio All figures are pro-forma excluding Cobham Composites

Primary Applications

Maritime Airborne Land

Increased demand for data from ship crews and operators

Significantly increased capacity from new High Throughput Satellites (HTS)

Introduction of Inmarsat GX

Continued demand for in-flight connectivity solutions

Growing need for condition monitoring & remote management

Growth Drivers

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Design of covert video, audio and ground sensors and infrastructure

Short range, covert or long range electro-optic thermal imagery

Miniature Cameras for covert near-field surveillance

Design and manufacture of tagging, tracking, locate & intercept hardware

GPS Tracking Systems, RDF Tracking Systems, Cellular Surveillance

GL200 GPS Tracker

Iridium 9602 GPS M2M Tracker

Design and manufacture of portable IP network solutions

IP Mesh Solutions, IP Backhaul, Wireless Broadcast Transmit/Receivers

COFDM IP Mesh Solutions


Surveillance Business Unit Overview

1 October 2015 27

Enabling connectivity to support protection of life, critical assets & environment All figures are pro-forma excluding Cobham Composites


Law Enforcement & Public Safety

Counter-Terrorism & Intelligence

Broadcast

US Defence investment accounts beginning to stabilise

Continued conflicts and regional instability, particularly in ME

Emerging markets continue to upgrade homeland security and critical infrastructure protection capabilities

Introduction of new product lines expanding current market

Growth Drivers

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Design & manufacture of microwave antennas for harsh environments

Sector and Multi Sector, Directional Flat Panel, Omni-Directional

Dual-polar UHF sector antenna for use in White Space frequency bands

Design & manufacture of high-spec, high performance RF antennas

Portfolio of antennas across all frequency bands and modulations

Multifunctional multi-frequency antennas in one structure

Development of advanced Counter-IED and mine clearance technology

Advanced Ground-Penetrating Radar (GPR) detection systems

Vallon MINEHOUND VMR3 hand-held dual-sensor detector


Antennas Business Unit Overview

1 October 2015 28

Enabling connectivity of aircraft, naval vessels, vehicles and mobile teams All figures are pro-forma excluding Cobham Composites

Growth from emerging economies

Record high commercial aircraft production levels


Growth Drivers


Military Aircraft Commercial Aircraft Military Land

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Design and manufacture of systems for intercoms and audio panels

Audio & Radio Management, Aircraft Radio-Navigation, Servers & Routers

RAIMS (Radio & Audio Integrated Management System) for A350XWB

Design and manufacture of rotating signal transmission assemblies

Standard and highly-customised slip rings and fibre optic rotary joints

Slip rings for helicopters, battle tanks, radar, wind turbine, oil & gas

Design and manufacture of microwave components and systems

Silicon Diodes, RF/MW modules, Waveguides, Filters & Duplexers

Waveguide assemblies covering frequencies from ~300MHz to 100GHz


Avionics Business Unit Overview

1 October 2015 29

Enabling connectivity of airborne networks for communication and navigation All figures are pro-forma excluding Cobham Composites


Commercial Transport

Rotorcraft Business Jet

Record high commercial aircraft production levels

Well positioned with strong shipsets on key future growth aircraft platforms


Emerging markets continue to upgrade homeland security (HLS) and search-and-rescue (SAR) capabilities

Growth Drivers

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Attractive Markets

• Organic growth trajectory supported by underlying global trends

• Emerging geographies a strategic priority to deliver future growth

Strong Portfolio

• Broad portfolio of capabilities that address a spectrum of connectivity needs

• Leadership positions across select niches, competing on technical differentiation and product performance & reliability

Targeted Investment

• Portfolio shaping has created a 70% commercial business

• PV allocation aligned to market priorities

Summary

1 October 2015 30

Enabling reliable connectivity anywhere, anytime, in the most demanding environments



Cobham Capital Markets Day – 1 October 2015 Cobham AvComm Business Unit Ryan Panos, Vice President & General Manager

Cobham plc

Cobham plc

Cobham AvComm

Our Vision

Be a leading provider of high performance, software-defined test instrumentation for sophisticated RF and microwave applications

Key Facts:

• ~450 employees and contractors

• US-based manufacturing

• Products deployed in over 100 countries

World Leader in Radio Field Test & Avionics Line Maintenance Test

32 1 October 2015

Improving Customer Operational Efficiency With Faster Test Solutions


US Defence & Security Non-US Defence & Security Commercial

USA EU Europe

Asia-Pacific RoW

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• Market leadership based on decades of intellectual property and expertise in measurement science

• Primary supplier of radio test instruments for Motorola, Harris, FBI, FAA and the US DoD

• World leader in avionics test equipment

• Support commercial and military equipment OEMs, aircraft platform OEMs & maintenance facilities

Cobham AvComm

Highly Reliable, Customised, Innovative And Cost Effective Testing Tools

1 October 2015 33

Leveraging significant IP and expertise in Radio and Avionics test

Synthetic Test

Avionics Test

Radio Test

Pie chart represents approximate contribution to portfolio

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Radio Manufacturers Airframe Manufacturers Worldwide Government

& Military Entities

Defence Contractors

Cobham AvComm

A Diverse And Leading Global Customer Base

1 October 2015 34

Top 10 customers represent ~45% of sales

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5 Million New Digital Radios Over Next 5 Years

Commercial Aircraft Fleet To Double in 20 Years

2014 2020

Cobham AvComm

Base Business Supported By Growth Of Digital Radios & Aircraft Fleet Growth

1 October 2015 35

Continued growth opportunity

• Radios used in Military, Commercial and Public Safety applications are rapidly changing to digital modulations

• The trend towards replacement digital radio and software-defined testing technologies is driving new test equipment requirements

• The replacement of aging aircraft fleets, new platform purchases and expanded markets drive additional avionics test equipment demand

• Major next generation air traffic management projects drive further avionics test opportunities

18.5m 20.6m

28% 50%

72% 50%

37,670

58,000

23,710

71,960

2014 Fleet Deliveries Retirements 2034 Fleet

Digital

Analogue

CAGR

1.8%

Sources: Cobham Analysis, IHS, Boeing, Bombardier

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• The introduction of our Next Generation Modular Platform (NGMP) increases our current addressable market:

• NGMP’s disruptive architecture allows us to effectively address high performance/high speed software-defined instrumentation requirements

Avionics & Radio Test Markets

Significant upside opportunity from introduction of Software-Defined Instrumentation

~$1.0 billion

Current Avionics and Radio Test Market

~$300 million

1 October 2015 36

Innovative technology enables future growth Sources: Cobham Analysis,

Cobham AvComm

Software-Defined Instrumentation A Growth Accelerator

R&D Production Field

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Cobham AvComm

Capability Radio Test Avionics Test

Example Products

Military Radio Private Mobile Radio (PMR)

Nav/ Comm

Fuel ATE

Description

• Tests all emerging digital technologies

• Used in R&D, production and field service markets; field is 80% of placements

• Leverages key OEM approvals, including Motorola, Harris & Kenwood

• Used on flight line for on-aircraft testing of avionics and fuel systems

• Supports aircraft certification and scheduled/unscheduled maintenance

• Supports avionics OEMs and domestic and international depot test facilities

Growth Strategy

Update product lines to new digital radio modulations and on new

products to broaden end-applications

Position for market uptick on back of next-generation avionics upgrades and

technology mandates (e.g. ADS-B)

Leading Radio and Avionics Test Product Portfolio

1 October 2015 37

NGMP benefits existing customers and opens new markets

Replace existing portfolio with software-defined instrumentation

Software-Defined

Instruments

NGMP

• High performance modular hardware loaded with RF test applications

• Supports new & existing markets

Update product portfolio and enter

new markets

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Available on the

App Store Internet & Intranet

First-to-market technology with unmatched performance and flexibility

One Environment – No Boundaries

Introducing the Next Generation Modular Platform (NGMP)

Cobham AvComm

Modular architecture allows you to configure and

reconfigure solutions to match your needs!

Apps and Applets that run on multiple platforms and

automatically scale to match the available hardware performance!

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Cobham AvComm


1 October 2015 39

Leveraging Cobham operational expertise to enhance value

Integrating Engineering Development

Consolidated Operations

Facility Rationalisation

Leveraging Scale & Channel Marketing

Developing Common Technology Platform

http://cobhamwireless.com/solutions/validation/production/

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Cobham AvComm

• World leading market positions in radio and avionics test

• High barriers to entry based on decades of intellectual property development

• Strong long-term, customer relationships and reputation for performance

• Cobham invests heavily in PV and has new products coming to market

• Significant upside from introduction of software-defined instrumentation

Summary

1 October 2015 40

Improving customer operational efficiency with faster test solutions



Cobham Capital Markets Day – 1 October 2015 Cobham Wireless Business Unit Ian Langley, Vice President & General Manager

Cobham plc

Cobham plc

Cobham Wireless

Our Vision

Global market leader in wireless access and network validation and coverage solutions, tools and applications

Key Facts:

• ~1,000 employees and contractors (~450 engineers)

• Headquarters in Stevenage, UK; R&D in 5 countries

– UK, Ireland, Israel, China, India

• Global sales presence

World Leader in Network Infrastructure Testing and Public Safety DAS

42 1 October 2015

Connected, Seamless, Wireless


Commercial USA EU Europe

Asia-Pacific RoW

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Service Providers/ Network Operators

Infrastructure Vendors Handset & Network

OEMs & CMs

Silicon Vendors Non-Telecom

Cobham Wireless

A Diverse And Leading Global Customer Base

1 October 2015 43

Top 10 customers represent ~50% of sales

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• Formed from the integration of two successful businesses:

– Aeroflex Wireless

– Axell Wireless

• Trusted provider of highly scalable, modular wireless solutions

• Long heritage of performance & innovation

• Core competences in engineering, programme management, BD & sales

Cobham Wireless

State-Of-The-Art Wireless and Connectivity Solutions

1 October 2015 44

Clear identity, customer and market focus, and thought leadership

Modular Instruments

Distributed Antenna Systems

Virtualised IP Data

Generation

Radio Access Network (RAN) Infrastructure

Testing Legacy Test Instruments

Now OEM to

Pie chart represents approximate contribution to portfolio

Core Portfolio

http://cobhamwireless.com/product/manufacturing-test-systems-ate-manufacturing-test-systems-ate/4200-series-advanced-manufacturing-test-systems/

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Global Mobile Data Traffic (Monthly ExaBytes)

1 ExaByte = 1,000,000,000,000,000,000 Bytes every month

Equivalent to watching ~6.6 billion hours of online video or downloading ~660 billion songs every month – this is expected to grow >10x by 2020!

• Network capacity is straining to keep up with the near exponential growth in demand for mobile data

• To ensure costs do not spiral alongside demand, carriers need to deliver sustained reductions in cost/bit transmitted

• Mobile Network Operators are increasingly focusing on new technology, innovation and network performance optimisation

• The consequent increase in network and terminal complexity drives growth in the development and test tool market

• Investment in radio access network (RAN) coverage & capacity is expected to grow at mid-single digit rates through 2020

Cobham Wireless

Industry Underpinned By Exponential Data Traffic Growth

1 October 2015 45

Strong market growth with high barriers to entry

0.3 0.6 1.1 2.0

3.3

5.2

8.1

12.1

17.4

23.6

30.6

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Sources: Cobham Analysis, Cisco, Ericsson

Mobile Data Demand

>10x in next 5 years

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Cobham Wireless

Capability

Network Validation Network Coverage

Enabling our customers to analyse, develop and validate the performance and capability of a wide variety of IP, cellular and

wireless network functions and devices

Extending wireless network coverage and capacity within a wide variety of environments

Portfolio Segment

Radio Access Network (RAN) Infrastructure Testing

Virtualised IP Data Generation

Distributed Antenna Systems

Solution

TM/E500 TeraVM idDAS

Description

Real-time device traffic generation systems to load and test wireless

network functions

Modular, scalable software that emulates and measures millions of

unique data flows

Provides in-building coverage and the ability to dynamically allocate

capacity where needed

Application

Development, test and operation of wireless radio access network

(RAN) infrastructure

Pre- and post-deployment testing of IP data networks and cloud

data centres

Ensuring seamless connectivity in Public Safety, Cellular and Rail

network environments

Market Leadership Positions

1 October 2015 46

Virtualised

Addressing requirements for improved connectivity, capacity & quality

Cobham plc

Cobham plc

Cobham Wireless


1 October 2015 47

Taking advantage of combined capabilities in the Cobham portfolio

Operational Efficiencies

Common Engineering Capabilities

Common Sales, Service & Support

Manufacturing Consolidation

Created Wireless Business Unit

http://cobhamwireless.com/solutions/validation/network-quality/

http://cobhamwireless.com/solutions/validation/production/

http://cobhamwireless.com/solutions/validation/virtualisation/

http://cobhamwireless.com/solutions/validation/service/

Cobham plc

Cobham plc

Cobham Wireless

Summary

1 October 2015 48

Connected, Seamless, Wireless

• A strong foundation of market leadership, combined with years of experience and a heritage of performance and innovation

• World leader in RAN Infrastructure Testing and Public Safety DAS

• Diverse and leading customer base, including virtually all of the world’s leading telecom vendors

• Leading edge technology and best-in-class engineering



Cobham Capital Markets Day – 1 October 2015

Bob Murphy, Chief Executive Officer

Cobham plc

Cobham plc

Conclusion

Strong leadership team in place

Leading positions and technology investment present high barriers to entry

Providing innovative solutions to solve our customers’ toughest problems

Effectively integrating the businesses

Cobham has the right management skills, complementary capabilities and end markets

Capital Markets Day

1 October 2015 50

The right owner of these businesses

Cobham plc

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.

51 1 October 2015

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