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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
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 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
Cobham plc
Cobham plc
Cobham Advanced Electronic Solutions
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
Cobham plc
Cobham plc
Cobham Advanced Electronic Solutions
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
Cobham plc
Cobham plc
Cobham Advanced Electronic Solutions
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
Cobham plc
Cobham plc
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
Cobham Advanced Electronic Solutions
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
Cobham plc
Cobham plc
Capabilities Technologies Example Solutions
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
Cobham Advanced Electronic Solutions
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
Cobham plc
Cobham plc
JAN Diodes & Transistors
Microwave Signal Generators
Radar Components
Capabilities Technologies Example Solutions
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
Cobham Advanced Electronic Solutions
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
Cobham plc
Cobham plc
Cobham Advanced Electronic Solutions
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
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 Cobham Semiconductor Solutions Business Unit Rafi Albarian, Vice President & General Manager
Cobham plc
Cobham plc
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
Cobham plc
Cobham plc
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
Cobham Semiconductor Solutions
Cobham plc
Cobham plc 1 October 2015 14
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
Cobham Semiconductor Solutions
Cobham plc
Cobham plc
Cobham Semiconductor Solutions
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
Cobham plc
Cobham plc
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
Cobham Semiconductor 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
Cobham plc
Cobham plc
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
Cobham Semiconductor Solutions
Medical Imaging Electronics Market Trends
1
Cobham plc
Cobham plc
Computing and signal processing in high-noise settings
Fault tolerant architectures, precise timing, low defect rates
Extreme temperature, radiation, shock, vibration, signal noise
Cobham Semiconductor Solutions
• 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:
Cobham plc
Cobham plc
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
Cobham Semiconductor Solutions
Diverse Customer Base Addressing Multiple Industries
Cobham plc
Cobham plc
$$
1 October 2015 20
Operational Excellence
Value Chain Consolidation
Revenue Synergy
Shared Functional Services
A B CD E
Leveraging combined capabilities to enhance value
Cobham Semiconductor Solutions
Integration and Synergies
Cobham plc
Cobham plc
Cobham Semiconductor Solutions
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
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 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
Cobham plc
Cobham plc
Cobham Communications and Connectivity
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
Cobham plc
Cobham plc
Cobham Communications and Connectivity
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
Cobham plc
Cobham plc
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
Cobham Communications and Connectivity
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
Cobham plc
Cobham plc
Capabilities Products & Technologies Example Solutions
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
Cobham Communications and Connectivity
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
Primary Applications
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
Cobham plc
Cobham plc
Capabilities Products & Technologies Example Solutions
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
Cobham Communications and Connectivity
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
Continued demand for in-flight connectivity solutions
Growth Drivers
Primary Applications
Military Aircraft Commercial Aircraft Military Land
Cobham plc
Cobham plc
Capabilities Products & Technologies Example Solutions
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
Cobham Communications and Connectivity
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
Primary Applications
Commercial Transport
Rotorcraft Business Jet
Record high commercial aircraft production levels
Well positioned with strong shipsets on key future growth aircraft platforms
Continued demand for in-flight connectivity solutions
Emerging markets continue to upgrade homeland security (HLS) and search-and-rescue (SAR) capabilities
Growth Drivers
Cobham plc
Cobham plc
Cobham Communications and Connectivity
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
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 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
Revenue by Market Revenue by Destination
US Defence & Security Non-US Defence & Security Commercial
USA EU Europe
Asia-Pacific RoW
Cobham plc
Cobham plc
• 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
Cobham plc
Cobham plc
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
Cobham plc
Cobham plc
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
Cobham plc
Cobham plc
• 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
Cobham plc
Cobham plc
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
Cobham plc
Cobham plc 1 October 2015 38
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!
Cobham plc
Cobham plc
Cobham AvComm
Integration and Synergies
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
Cobham plc
Cobham plc
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
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 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
Revenue by Market Revenue by Destination
Commercial USA EU Europe
Asia-Pacific RoW
Cobham plc
Cobham plc
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
Cobham plc
Cobham plc
• 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
Cobham plc
Cobham plc
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
Cobham plc
Cobham plc
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
Integration and Synergies
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
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
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
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