Preliminary Results 2014 Returning to Growth Agenda Introduction - - PowerPoint PPT Presentation
The most important thing we build is trust ADVANCED ELECTRONIC SOLUTIONS AVIATION SERVICES COMMUNICATIONS AND CONNECTIVITY MISSION SYSTEMS Preliminary Results 2014 Returning to Growth Agenda Introduction Bob Murphy Chief Executive
The most important thing we build is trust
ADVANCED ELECTRONIC SOLUTIONS AVIATION SERVICES COMMUNICATIONS AND CONNECTIVITY MISSION SYSTEMS
Returning to Growth
Cobham plc Cobham plc
5 March 2015 1
Bob Murphy Chief Executive Officer
Simon Nicholls Chief Financial Officer
Bob Murphy
Cobham plc Cobham plc
2
Bob Murphy Chief Executive Officer
Simon Nicholls Chief Financial Officer
Bob Murphy
5 March 2015
Cobham plc Cobham plc
3
See Appendix for definitions, including underlying, used throughout this presentation.
Year to 31/12/14 Year to 31/12/13 Change £m £m Order Intake 1,908.3 1,670.0 14.3% 19.8% Revenue 1,851.7 1,789.7 3.5% 8.6% Trading Profit 286.7 317.6 (9.7)% (6.1)% Trading Margin 15.5% 17.7% (2.2)pts Underlying Profit before Taxation 257.0 288.0 (10.8)% (7.9)% Underlying Earnings Per Share 18.5p 21.6p (14.4)% (11.3)% Operating Cash Conversion 72.6% 85.4% (12.8)pts Net Debt (1,222.7) (453.4) Dividend per Share 10.65p 9.68p 10.0% Constant FX Change
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Non-US Defence & Security
(2013: 24%)
US Defence & Security
(2013: 20%)
Commercial
(2013: 56%)
Note: US$ revenue 31%
– £82m from test business of Aeroflex and full year contribution from Axell Wireless – Healthy growth in key commercial markets - commercial aerospace up 9% and marine SATCOM up 6% – Organic revenue decline of 6% resulting from reduced demand in land defence programmes
– Strong acquisition performance and growth in commercial markets – Further cost rationalisation to mitigate negative impact of weaker demand profile in land defence markets
– Focus remains on commercial opportunities, with major spend in SATCOM, Wireless (ATS and Axell) and commercial aerospace avionics accounting for over 70% of total PV technology investment
2014
()
2013
(constant FX)
Change
%
Revenue £m 697.1 652.5 6.8% Trading Profit £m 118.3 111.3 6.3% Trading Margin 17.0% 17.1% (0.1)pts
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Non-US Defence & Security
(2013: 40%)
US Defence & Security
(2013: 52%)
Commercial
(2013: 8%)
decline of 4% including:
– Increase in customer funded development revenue on AAR programmes (KC-46, A400M) – Activity levels in short cycle Life Support businesses picked up as expected in H2 – Reduced legacy aerial refuelling revenue due to lull in production of US KC-130 tanker aircraft – Lower production and aftermarket activity in support of the UK FSTA programme’s Airbus A330MRTT
– Reduction in higher margin legacy aerial refuelling programmes and associated aftermarket activity – Increase in proportion of lower margin development programme revenue – Previously targeted technical contract milestones not achieved in H2 leading to one off contract provision of £15m; now anticipate meeting contract milestones during 2015
Note: US$ revenue 64%
2014
()
2013
(constant FX)
Change
%
Revenue £m 333.5 345.6 (3.5)% Trading Profit £m 35.9 71.6 (49.9)% Trading Margin 10.8% 20.7% (9.9)pts
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Non-US Defence & Security
(2013: 6%)
US Defence & Security
(2013: 91%)
Commercial
(2013: 3%)
2014
()
2013
(constant FX)
Change
%
Revenue £m 410.1 353.4 16.0% Trading Profit £m 64.0 60.4 6.0% Trading Margin 15.6% 17.1% (1.5)pts
– Strong part year contribution from Aeroflex AMS business, increasing commercial revenue – Continuing robust performance in existing US Defence business due to longer cycle priority programmes – Organic revenue reduction of just 1%; robust in challenging US defence markets
platforms based on differentiated technology offerings
volume decline and change in mix across legacy business
Note: US$ revenue 100%
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Non-US Defence & Security
(2013: 47%)
Commercial
(2013: 53%)
2014
()
2013
(constant FX)
Change
%
Revenue £m 412.2 337.7 22.1% Trading Profit £m 54.5 45.1 20.8% Trading Margin 13.2% 13.4% (0.2)pts Trading Margin (excl JV) 13.2% 12.4% 0.8pts
– Fleet expansion for Qantas with five additional B717’s now in service – Increased flight frequency in the Australian natural resources market – Special Mission growth driven by new operational readiness training contract with the Royal Saudi Air Force – Full year impact of the July 2013 acquisition of FBH
contribution from Helicopter Services (acquired in July 2013)
Note: AU$ revenue 59%
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Sector Summary at Constant Exchange1
8
(1) = 2013 data presented at 2014 exchange rates.
Revenue Trading Profit £m Year to 31/12/14 Year to 31/12/13 Change Year to 31/12/14 Year to 31/12/13 Change Cobham Communications and Connectivity 697.1 652.5 6.8% 118.3 111.3 6.3%
Margin 17.0% 17.1%
Cobham Mission Systems 333.5 345.6 (3.5)% 35.9 71.6 (49.9)%
Margin 10.8% 20.7%
Cobham Advanced Electronic Solutions 410.1 353.4 16.0% 64.0 60.4 6.0%
Margin 15.6% 17.1%
Cobham Aviation Services 412.2 337.7 22.1% 54.5 45.1 20.8%
Margin 13.2% 13.4%
Head Office and Eliminations (5.2) (4.0) 14.1 14.5 Core Businesses 1,847.7 1,685.2 9.6% 286.8 302.9 (5.3)%
Margin 15.5% 18.0%
Non Core Businesses 4.0 19.9 (0.1) 2.4 Exchange
Cobham Group - as reported 1,851.7 1,789.7 3.5% 286.7 317.6 (9.7)%
Margin 15.5% 17.7% 5 March 2015
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2013 to 2014
9
£m
317.6 286.7 18.1 4.0 13.1 15.0 32.4 2.5 1.7 12.3
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Year to 31/12/14 Year to 31/12/13 £m £m Trading profit 286.7 317.6 Underlying net finance costs (29.7) (29.6) Underlying profit before taxation 257.0 288.0 Taxation charge on underlying profit (2014: 20.25%; 2013: 20%) (52.0) (57.0) Underlying profit after taxation for the year 205.0 231.0 Business restructuring - Excellence in Delivery (28.1) (56.1) Business restructuring - Aeroflex integration (24.1)
(21.8) 2.2 Amortisation of intangible assets arising on business combinations (113.6) (103.9) Exceptional legal costs (0.8)
Revaluation gain arising on equity interests in FBH
Other business acquisition and divestment related items (40.7) (0.1) Non-underlying finance costs (3.6) (2.6) Taxation on non-underlying items 56.7 44.9 Profit after taxation for the year 29.0 114.5
EiD Substantially Completed; Aeroflex Acquisition and Integration Costs Included
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Note: Depreciation and amortisation shown net of profit/loss on sale of property, plant and equipment and excluding amortisation of acquired intangibles.
Year to 31/12/14 Year to 31/12/13 £m £m Trading profit (exc. Joint Ventures) 286.5 314.5 Depreciation and amortisation 71.7 67.1 Pension contributions in excess of service cost and administration cost (16.9) (14.5) Increase in working capital (70.8) (32.0) Net capital expenditure (73.7) (61.0) Other items 11.1 (5.6) Operating Cash Flow 207.9 268.5 Underlying net interest paid (25.2) (28.7) Taxation paid (37.0) (37.6) Dividends received from joint ventures
Business restructuring costs (31.3) (50.9) Free Cash Flow 114.4 155.0 Dividends paid (108.3) (96.6) Acquisition payments less divestment proceeds, other related costs and loans to JVs (897.3) (152.7) Placing and net settlement of treasury shares 180.1 (1.8) Exchange movements (58.2) 2.6 Increase in Net Debt (769.3) (93.5) Opening Net Debt (453.4) (359.9) Closing Net Debt (1,222.7) (453.4) Net Debt: EBITDA 2.6 1.2
Receivables and Engineering WIP Impact OCF; Acquisitions Drive Increase In Net Debt
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Inventories Receivables Payables Current Working Capital Non-current Total Working Capital £m £m £m £m £m £m
Opening Balance Sheet 315.9 317.7 (370.3) 263.3 (15.8) 247.5 Underlying Cash Outflow 11.9 50.3 (5.5) 56.7 14.1 70.8 FX 9.3 11.6 (14.8) 6.1
Acquisitions and Disposals 118.4 55.9 (72.3) 102.0 6.4 108.4 Non-Underlying Items (24.1) 1.1 (40.7) (63.7) 12.4 (51.3) Closing Balance Sheet 431.4 436.6 (503.6) 364.4 17.1 381.5
Increase Due To: Acquisitions, Q4 Activity and Development Contracts
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31/12/2014 31/12/2013 £m £m
Intangible assets 1,997.2 1,162.2 Property, plant and equipment 390.0 350.8 Other non-current assets 91.0 56.3 Non Current Assets 2,478.2 1,569.3 Inventories 431.4 315.9 Trade and other receivables < 1 year 436.6 317.7 Trade and other payables < 1 year (503.6) (370.3) Current Working Capital 364.4 263.3 Net current tax liabilities (118.8) (111.4) Net borrowings (1,222.7) (453.4) Provisions (67.4) (43.0) Retirement benefit obligations (102.0) (87.3) Other assets / liabilities (219.4) (93.3) Net Assets 1,112.3 1,044.2
Aeroflex Acquisition Has Significant Impact On Group Balance Sheet
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Substantial Progress Made To Position Group To Deliver Sustainable Future Growth
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Bob Murphy Chief Executive Officer
Simon Nicholls Chief Financial Officer
Bob Murphy
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Strategic Objective Key Success Drivers
Creating Our Future
17
We will build and maintain leading positions in our chosen markets by leveraging innovative technology and know-how with a deep insight into customer needs This will enable us to generate sustainable top and bottom line growth, relative to the markets in which we operate, while consistently generating good free cash flow and thereby creating shareholder value
Significant Strategic Progress, Returning To Sustainable Growth
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What We Said and How We Performed
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Good Progress In Many Areas, AAR Programs Rebased For Success
2014 H2 Expectation Performance
Orders
O O
Revenue
O O
Trading Margin
O O O
Operating Cash
O O
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Acquisitions
Portfolio Criteria:
2012
Divestments
Creating A Balanced Portfolio Capable Of Sustainable Growth Through Economic Cycles
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Acquisitions Provide a Sustainable Growth Platform Focus On Strengthening Market Positions & Capabilities Going Forward
Non-Core Beacons Non-Core Aviation
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Successfully Rebalancing Our Portfolio – 2014 Revenue Mix
21
5% 2% 5% 7% 10% 10%
US Defence & Security 34% Non-US Defence & Security 27% Commercial 39% Aviation
Products
Aviation
Services
Space Marine Wireless Other
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commodity prices
Market Growth Expected, Driven By Global Economic Recovery
22
Drivers of Growth CCC
CAvS
introduction of the E190 for Chevron
CAES
CMS
with continuing deliveries on 787 and other platforms
Commercial Revenue
39% of FY14A Total
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– Potential impacts from Sequestration budget caps
– Continued pressures on Land programmes
Moving Through The Down Cycle, Nearing the Bottom
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Continuously Investing in Capability Through the Downturn… Provides Competitive Positions On Key Future Programs
US Defence & Security Revenue
34% of FY14A Total
Drivers of Growth CAES
CMS
CCC
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Drivers of Growth CAvS
CCC
CMS
remains in Europe
and security services
MENA and Asia Still Driving Overall Market Growth
24
Non-US Defence & Security Revenue
27% of FY14A Total
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Microelectronic Solutions Test Solutions
Growth Areas
High reliability microelectronics
Virtualised wireless network data test Wireless network functional and load test Modular instrumentation
Collaboration
Leveraging customer relationships to grow content on space, naval, and missile programmes New integrated microelectronic systems Leveraging international sales channels and customer relationships Identifying opportunities in engineering New routes to market
Integration
On track Consolidation underway Synergies validated Wireless Test and DAS business integration as new Cobham Wireless Business unit
A Strong Contributor To Cobham’s Future Growth
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Space Defence Industrial Medical Avionics Wireless Radio
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Making Significant Progress in Challenging Markets
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2015 2016 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Results Investor Events
5
Interim Management Statement
6
Interim Results
23
AGM & Interim Management Statement
3
Prelim Results
15-21
Paris Airshow
15-18
DSEI Defence and Security Equipment Exhibition, London
1
Capital Markets Day, London
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Non-US Defence & Security
(2013: 28%)
US Defence & Security
(2013: 37%)
Commercial
(2013: 35%)
USA
(2013: 45%)
UK
(2013: 13%)
Other EU
(2013: 16%)
Australia
(2013: 14%)
Asia
(2013: 7%)
RoW
(2013: 5%)
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CCC CCC CMS CMS CAES CAES CAvS CAvS
Non- Core Non- Core
1790 1852 188 31 (85) (15) (57)
2013 FX Translation Divestments Acquisitions Defence/ Security Commercial 2014
£m (2)% Organic Growth (5)% 5%
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2013 to 2014
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17.7% 15.5% 0.8% 0.1% 0.9% 0.8% 0.3% 0.1% 0.2%
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21.60p 20.18p 17.14p 18.48p (3.1)% (3.5)% 2.1% (16.1)% 6.2% 2013 Reported FX Translation Share Placing 2013 Restated Acquisitions/ Divestments Organic 2014 ex Aeroflex Aeroflex 2014
Year-on-year change: Year-on-year change:
Restatement Impact: (6.6)% Underlying Impact: (14.0)%
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Year to 31/12/10 Year to 31/12/11 Year to 31/12/12 Year to 31/12/13 Year to 31/12/14 CAGR Organic Revenue Growth (0.3)% (0.6)% (0.6)% (4.0)% (1.5)% (1.4)%
(1)
Defence / Security (0.8)% (3.5)% (1.5)% (8.8)% (5.1)% (4.0)%
(1)
Commercial 1.0% 7.6% 1.9% 6.9% 5.3% 4.5%
(1)
Earnings Per Share Growth (constant translation) 3.8% 12.6% 3.2% (4.2)% (11.3)% 0.5%
(1)
Operating Cash Conversion 79.3% 94.8% 104.5% 85.4% 72.6% 87.3%
(2)
PV Spend % 4.5% 4.9% 5.3% 6.2% 6.7% 5.5%
(2)
Return on Invested Capital % 18.6% 19.4% 18.1% 15.3% 12.4% 16.8%
(2)
(1) CAGR over 5 years (2) Average over 5 years
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9 34 48 76 100 105 2010 2011 2012 2013 2014 2015
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23 62 100 156 184 191
Total cost unchanged from
£m
Cumulative Exceptional Cost
Benefits (£m)
EiD substantially complete – principles now being applied to Aeroflex integration
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Year to 31/12/14 Year to 31/12/13 Growth Earnings Per Share Underlying 18.5p 21.6p (14.4%) Basic 2.6p 10.7p Diluted 2.6p 10.7p Dividend Per Share 10.65p 9.68p 10.0%
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(1) Shown net of proceeds on disposal of property, plant and equipment. (2) Depreciation excludes amortisation of acquired intangibles but includes amortisation of other intangibles of £4.8m (2013: £5.0m). Shown net of profit/loss on sale of property, plant and equipment.
£m Net Capex(1) Depn(2) Net Capex(1) Depn(2) Cobham Communications and Connectivity 14.4 15.2 14.8 15.2 Cobham Mission Systems 8.6 5.1 9.3 5.6 Cobham Advanced Electronic Solutions 10.4 12.5 11.6 14.1 Cobham Aviation Services 30.2 36.2 18.5 30.5 Head Office 10.0 2.6 6.5 1.3 Core Businesses 73.6 71.6 60.7 66.7 Non Core Businesses 0.1 0.1 0.3 0.4 Cobham Group 73.7 71.7 61.0 67.1 2014 2013
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Year to Dec 2014 Year to Dec 2013 £m £m Opening Deficit (87.3) (73.4) Service Cost (5.5) (5.2) Admin Cost (0.6) (1.4) Net Finance Cost (3.6) (2.8) Total Employer Contributions 23.0 21.1 Actuarial Loss Arising On Buy-In Transaction
Other Actuarial Variations (27.7) 13.4 FX impact (0.3)
(102.0) (87.3) Primary Assumptions Discount Rate 3.5% 4.5% Price Inflation Rate 3.2% 3.6% Salary Inflation Rate 3.5% 3.8% Life Expectancy of Male aged 65 in 2045 25.5yrs 25.8yrs
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41 Loan / Facility Usage £m £m US$ Loan Notes Fixed rate (Mar 2016) 51.9 51.9 Floating rate (May 2017) 32.1 32.1 Fixed rate (Oct 2017) 48.1 48.1 Floating rate (Feb/Mar 2018) 67.3 67.3 Fixed rate (Mar 2019) 101.0 101.0 Fixed rate (Oct 2019) 115.4 115.4 Fixed rate (Oct 2020) 28.3 28.3 Fixed rate (Oct 2021) 160.3 160.3 Fixed rate (Oct 2024) 272.6 272.6 877.0 877.0 Bank Facilities Acquisition finance facility (May 2016) 237.3 237.3 US$90m multi-currency revolving credit agreement (Oct 2016) 57.7 45.8 US$75m credit agreement (Dec 2016) 48.1 48.1 EUR70m multi-currency revolving facility (Jun 2017) 54.3 52.2 DKK525m multi-currency revolving facility (Oct 2018) 54.7 18.1 US$270m multi-currency revolving credit agreement (Oct 2018) 173.2 137.5 AUS$90m revolving credit facility (Oct 2018) 47.2 30.8 672.5 569.8 Total Committed Facilities 1,549.5 1,446.8 Overdrafts 1.3 1.3 Finance Leases 0.2 0.2 Gross Debt 1,551.0 1,448.3 Cash (225.6) Net Debt 1,551.0 1,222.7 5 March 2015
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(1) For covenant purposes net debt is typically expressed at average translation rates. (2) EBITDA includes pro forma adjustments in respect of acquisitions and divestments.
Dec-14 Dec-13 Dec-12 Net Debt (£m) - Balance Sheet (1,222.7) (453.4) (359.9) Net Debt (£m) - Average Rate (1) (1,159.2) (479.6) (370.9) EBITDA (2) (£m) 440.2 395.0 407.5 Net Debt to EBITDA (not to exceed 3.5 times) 2.6 1.2 0.9 EBITA (£m) 297.6 322.4 348.3 Net Interest (£m) 28.4 27.0 30.0 Interest Cover (at or above 3 times) 10.5 11.9 11.6
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Average rate Year end rate % change 2014 US$ 1.65 1.56 5% AU$ 1.83 1.91 (4)% EUR 1.24 1.29 (4)% DKK 9.25 9.60 (4)% 2013 US$ 1.57 1.66 (6)% AU$ 1.62 1.85 (14)% EUR 1.18 1.20 (2)% DKK 8.79 8.97 (2)%
– 2014 underlying PBT at December closing rates would be c.£0.5m higher – Movements in exchange do not impact
– Translation risk not hedged as generally impact is only crystallised to the extent that profit is not reinvested in the business and is repatriated to the UK – Risk partly mitigated by matching the currency profile of debt to that of the functional currencies of our operations
– Mostly hedged where we have costs or revenues that are not in underlying functional currency of the business – See next slide “Foreign Exchange Transaction Exposure” highlighting US$ forward coverage
44
For Every US 1 Cent Movement - £0.4m PBT, £8m Net Debt
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Historic average effective rate 2011 $ 1.56 : £1 2012 $1.59 : £1 2013 $1.59 : £1 2014 $1.61 :£1
Dollar/Euro exposure predominantly hedged for 2015 with $39m @ 1.30 Dollar/DKK exposure predominantly hedged for 2015 and 2016 with $138m @5.53 and $125m @5.47
2015 Total $122m Hedging in place $111m $15m 91% hedged for 2015 Avg hedge rate $1.60: £1 2016 Hedging in place Avg hedge rate $1.54: £1 Avg hedge rate $1.56: £1 $48m 2017 to 2022
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Military Fast Jet
US $k
Rotorcraft
US $k
Missile
US $k F
500
EH101 550
AMRAAM 50
F/A
1,100
EC175 80
AARGM 120 F
1,200 Apache 500 PAC3/Patriot 200 Typhoon 1,500 CH
90 Standard Missile 90
Hawk 500 CH
450
Commercial Aircraft
Rafale 180 S
40 A320 60
PC
160 MH60/UH60 350
A350 140 T
100
V
500
A380 270 Gripen 190
UAV
B737 50
Medium/Large Military Aircraft
Predator/Reaper 250
B777 50 A400M 3,500 Global Hawk 1,700
B787 105
Sentry E
250
Naval
C919 90 Poseidon P
880 EDG1000 1,200
G650 30 C
300
Aegis DPYIDV 2,200
MRJ 50 THAAD 2,000
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Underlying To assist with the understanding of earnings trends, the Group has included within its published financial statements non-GAAP measures including trading profit and underlying earnings results. Trading profit has been defined as operating profit from continuing operations excluding the impacts of business acquisition and divestment related activity and business restructuring costs as detailed below. Also excluded are changes in the marking to market of non-hedge accounted derivative financial instruments, impairments of intangible assets 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 acquisition related items, and after deducting associated taxation and non-controlling interests. Business acquisition and divestment related items Business acquisition and divestment related items excluded from trading profit and underlying earnings include the amortisation of intangible assets recognised on acquisition, revaluation gains and losses arising on the original equity interests on stepped acquisitions, adjustments to businesses held for sale, the writing off of the pre-acquisition profit element of inventory written up on acquisition, other direct costs associated with business combinations and terminated divestments and adjustments to contingent consideration related to previously acquired businesses. Business restructuring costs Business restructuring costs relate to the restructuring of the Group’s portfolio which are incremental to normal operations. These relate to the integration of the Aeroflex businesses acquired in 2014 and the EiD programme. The EiD programme, to be completed by the end of 2015, relates to the design and implementation of Standard Operating Frameworks within the principal locations, development costs of a new ERP computer system, together with site consolidation, consequential asset write downs and workforce reduction costs. Operating cash flow Operating cash flow is defined as net cash from operating activities before payment of tax, interest, restructuring costs and M&A related costs but 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 Free cash flow is defined as net cash from operating activities plus dividends received from joint ventures, less cash flows related to the purchase or disposal of property, plant, equipment and intangible assets but excluding payments relating to M&A related activities. Net debt Net debt is defined as the net of borrowings less cash and cash equivalents at the balance sheet date. Organic revenue growth Organic revenue growth is defined as revenue growth stated at constant translation exchange rates, excluding the incremental effect of acquisitions and divestments. PV investment PV (Private Venture) or company funded R&D (Research and Development) measures exclude Aviation Services, where there is no R&D activity. Invested capital Invested capital comprises net assets adjusted to exclude net debt, retirement benefit obligations, derivative financial instruments, current and deferred tax, provisions and other financial assets. Intangible assets recognised on business combinations are grossed up to original cost before amortisation and an adjustment is also made to reinstate historic goodwill previously written off directly to reserves. Return on invested capital Trading profit as a percentage of the average invested capital during the period. 5 March 2015
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4G Fourth Generation 5G Fifth Generation AAR Air-to-Air Refuelling AARGM Advanced Anti-Radiation Guided Missile AESA Active Electronically Scanned Array (radar) AMDR Air and Missile Defence Radar AMRAAM Advanced Medium-Range Air-to-Air Missile AMS Aeroflex Microelectronic solutions AMSA Australian Maritime Safety Authority ATS Aeroflex Test Solutions BD Business Development BEU Battery Electronics Unit C4ISR Command, Control, Communications, Computers, Intelligence, CAES Cobham Advanced Electronic Solutions CAGR Compound Annual Growth Rate CAPEX Capital Expenditure CAS Cobham Aerospace and Security CAvS Cobham Aviation Services CCC Cobham Communications and Connectivity CDMA Code Division Multiple Access CFIUS Committee on Foreign Investment in the United States CMS Cobham Mission Systems DAS Distributed Antenna System DoD Department of Defence EBITA Earnings Before Interest Tax and Amortisation EBITDA Earnings Before Interest Tax Depreciation and Amortisation EDGE Enhanced Data rates for GSM Evolution EiD Excellence in Delivery E-Scan Electronically Scanned EU European Union EVP Executive Vice President EW Electronic Warfare FBH FB Heliservices FIFO Fly-In Fly-Out FSTA Future Strategic Tanker Aircraft FX Foreign Exchange GDP Gross Domestic Product GPRS General Packet Radio Service GSM Global System for Mobile communications GX Global Xpress HD High Definition HiRel High Reliability HSR Hart–Scott–Rodino (Antitrust Improvements Act) HSXPA Third Generation High Speed Packet Access IMS Interim Management Statement IP Internet Protocol JV Joint Venture KPI Key Performance Indicator LCM Life-Cycle Management LRIP Low Rate Initial Production LTE Long Term Evolution M&A Mergers & Acquisitions M2M Machine-to-Machine MENA Middle East and North Africa MRJ Mitsubishi Regional Jet MRTT Multi Role Tanker Transport OCF Operating Cash Flow PAC 3 Patriot Advanced Capability-3 PBT Profit Before Tax PM Programme Management PP Private Placement PTS Points PV Private Venture (Company funded R&D) R&D Research & Development RDT&E Research, Development, Test & Evaluation RF Radio Frequency RF/MW Radio Frequency / Microwave RoW Rest of World SAR Search-And-Rescue SATCOM Satellite Communication SEWIP Surface Electronic Warfare Improvement Program SSA Special Security Agreement SWAP-C Space, Weight, Power and Cooling SWP Strategic Workforce Planning TC&S Tactical Communications & Surveillance TD-SCDMA Time Division Synchronous Code Division Multiple Access UAV Unmanned Aerial Vehicle UMTS Universal Mobile Telecommunications System WCDMA Wideband Code Division Multiple Access WIP Work In Process YTD Year-to-Date
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Cobham plc Cobham plc
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
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
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
referred to above. Cobham does not intend to update these forward-looking statements.
49 5 March 2015
Cobham plc Cobham plc
50 5 March 2015