Investor Overview Presentation

© 2013 Rockwell Collins. All rights reserved.

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Investor Overview Q4 FY13

© 2013 Rockwell Collins. All rights reserved. 2

Safe Harbor Statement

This presentation contains statements, including certain projections and business trends, that are forward-looking statements as

defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result

of certain risks and uncertainties, including but not limited to the financial condition of our customers, including bankruptcies; the

health of the global economy, including potential deterioration in economic and financial market conditions; the rate of recovery of

the commercial OEM production rates and the aftermarket; the impacts of natural disasters, including operational disruption,

potential supply shortages and other economic impacts; cybersecurity threats, including the potential misappropriation of assets or

sensitive information, corruption of data or operational disruption; delays related to the award of domestic and international

contracts; delays in customer programs; unanticipated impacts of sequestration and other provisions of the Budget Control Act of

2011; the continued support for military transformation and modernization programs; potential adverse impact of oil prices on the

commercial aerospace industry; the impact of terrorist events on the commercial aerospace industry; declining defense budgets

resulting from budget deficits in the U.S. and abroad; changes in domestic and foreign government spending, budgetary,

procurement and trade policies adverse to our businesses; market acceptance of our new and existing technologies, products and

services; reliability of and customer satisfaction with our products and services; favorable outcomes on or potential cancellation or

restructuring of contracts, orders or program priorities by our customers; recruitment and retention of qualified personnel;

regulatory restrictions on air travel due to environmental concerns; effective negotiation of collective bargaining agreements by us

and our customers; performance of our customers and subcontractors; risks inherent in development and fixed-price contracts,

particularly the risk of cost overruns; risk of significant reduction to air travel or aircraft capacity beyond our forecasts; our ability to

execute to our internal performance plans such as our productivity and quality improvements and cost reduction initiatives;

achievement of our acquisition and related integration plans; continuing to maintain our planned effective tax rates; our ability to

develop contract compliant systems and products on schedule and within anticipated cost estimates; risk of fines and penalties

related to noncompliance with laws and regulations including export control and environmental regulations; risk of asset

impairments; our ability to win new business and convert those orders to sales within the fiscal year in accordance with our annual

operating plan; and the uncertainties of the outcome of lawsuits, claims and legal proceedings, as well as other risks and

uncertainties, including but not limited to those detailed herein and from time to time in our Securities and Exchange Commission

filings. These forward-looking statements are made only as of the date hereof and the company assumes no obligation to update

any forward-looking statement.


What we do ‣ Communications

‣ Navigation

‣ Automated flight control

‣ Displays/surveillance

‣ Aviation services

‣ Integrated electronic

solutions

‣ Information management

systems

‣ Simulation and training

Communications and electronics products, systems and solutions for commercial aviation and military applications worldwide

2013 Sales: $4.61 Billion

52% 48% Government Commercial

Surface sol 10%

Avionics 58%

Comm products 24%

Business & regional ~46%

Wide-body IFE 4%

Air transport ~50%

Nav products 8%


Strong performance through market cycles Results since 2002

4

Revenue growth EPS growth Average ROIC

6% CAGR

12% CAGR

24%

Returned $5.7 Billion to Shareholders through

Dividends and Share Repurchases


How did we do it?

5

Balanced & diversified business model

Sustained investment in new products

Lean focus and operating model drive margin performance

GS 7% sales CAGR

CS 4% sales CAGR

1 2 3

Increased segment operating margins

650 bps

Invested

19% of sales in research and development


Historically returned > 70% cash to Shareowners through dividends & share repurchases

19%

54%

8%

19%

Dividend

Share repurchases

Acquisitions

Capital expenditures

Capital Allocation $ Billions 2007-2013

Cash generated 4.4$

Net increase in debt 0.8

Cash to deploy 5.2$

Dividend 1.0$

Share repurchase 2.8

Acquisitions 0.4

Capital expenditures 1.0

5.2$

6


Strengths of the Government Systems business

‣ 90%+ fixed price contracts

‣ Leverage commercial technologies

‣ Highly exportable products

‣ 75% of revenue from legacy platforms and products

Value Created:

>20% operating

margins

Strong cash flow

generation


‣ Civil airspace interoperability

‣ Comprehensive product lines

‣ Commercial platform positions

‣ Program execution acumen

‣ Incumbent positions

Avionics – characteristics

8


Avionics – drivers

9

‣ Tanker & Transport KC-46 C130 Upgrades

KC-10/KC-135 KC-390

‣ Rotary Wing CH-47 Chinook AW Family (AW 101/149/169/189)

UH-60 Blackhawk Civil Dual Use (ex. S-70/92, EC135)

‣ Fighters International F-15 Legacy Upgrades (EFA, Gripen, F-18)

F-35

‣ Special Mission /Unmanned Aerial Systems AWACS E-6

Shadow Predator

Manned/Unmanned Convergence

‣ Simulation and Training F-35 E-2D Hawkeye

UH-60 Blackhawk


‣ Characteristics: ‣ Large airborne installed base

‣ Broad Networked Connectivity capabilities

‣ Position on ground modernization program

‣ Communication Products: ‣ Airborne radios (ARC-210)

‣ Networked data links (Link 16, TTNT)

‣ Ground radios (JTRS HMS, SATCOM)

Communication Products

10


‣ Characteristics: ‣ Market leader in military GPS products

‣ Portfolio in transition

‣ Position on modernization program

‣ Navigation Products: ‣ Handheld GPS (DAGR, MicroDAGR)

‣ Modernized GPS User Equipment (MGUE)

‣ Miniaturized GPS products (MicroGRAM)

Navigation Products

11


‣ Characteristics: ‣ Specialized systems integration leveraging

core capabilities

‣ More entrepreneurial segment of business

‣ Surface Solutions: ‣ Firestorm targeting systems

‣ Electronic warfare (Signals Intelligence Receivers)

‣ Range system upgrades (CRIIS)

‣ Precision landing systems (JPALS)

Surface Solutions

12


Strengths of the Commercial Systems business

‣ Long-cycle business

‣ High barriers to entry

‣ Leveraged operating model

‣ Strong IP portfolio

Value Created:

Revenue growth

40-50% incremental

margins


Commercial Systems FY13 sales

Aftermarket

~ 41%

Wide-Body IFE

4%

OEM

~ 55%

Air

Transport

~ 50%

Bus. &

Regional

Jets

~ 46%

14

Wide-Body IFE

4%


Market outlook

‣ Air Transport

‣ Robust OEM backlog

‣ Increasing production rates

‣ Business & Regional

‣ Mixed market environment with

strength at high-end

‣ Light jet demand recovery

continues to lag


Boeing

Airbus

Irkut

COMAC

Mitsubishi

Bombardier

Gulfstream

Embraer

A350

2012 2013 2014 2015 2016 2017+

787 Rate Increase

MC-21

ARJ-21

MRJ*

CSeries* & Learjet 85*

G280* & G650

Legacy 500*

Piaggio Aero

C919

* Pro Line Fusion Platforms

Global 7000* & 8000*

737 Max Displays

Legacy 450*

16

New aircraft driving OEM revenue growth

Unannounced platforms

3 Platforms* 2 Platforms*

MPA


Growth drivers – Aftermarket

‣ Robust & increasing install base driving service & support demand

‣ Sparing for new aircraft

‣ Avionics & cabin upgrades

‣ Regulatory mandates

‣ Next Gen airspace modernization


Long-term value creation

Organic sales growth

Operating cash flow as percent of PAT

EPS growth

Return on invested capital

Mid-single digit

Low double-digit

100%-125%

20%-25%

Investor Overview Presentation

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