Preliminary Results 2015 Delivering Our Strategy Working together - - PowerPoint PPT Presentation
The most important thing we build is trust ADVANCED ELECTRONIC SOLUTIONS AVIATION SERVICES COMMUNICATIONS AND CONNECTIVITY MISSION SYSTEMS Preliminary Results 2015 Delivering Our Strategy Working together to be a leading Global Technology and
The most important thing we build is trust
ADVANCED ELECTRONIC SOLUTIONS AVIATION SERVICES COMMUNICATIONS AND CONNECTIVITY MISSION SYSTEMS
Working together to be a leading Global Technology and Services innovator, respected for providing solutions to the most challenging problems
Delivering Our Strategy
Cobham plc Cobham plc
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Bob Murphy Chief Executive Officer
Simon Nicholls Chief Financial Officer
Bob Murphy
3 March 2016
Cobham plc Cobham plc
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Bob Murphy Chief Executive Officer
Simon Nicholls Chief Financial Officer
Bob Murphy
3 March 2016
Cobham plc Cobham plc
3 March 2016 3
See Appendix for definitions, including underlying, used throughout this presentation.
Year to 31/12/15 Year to 31/12/14 Change £m £m Order Intake 2,148.0 1,908.3 12.6% 12.5% Revenue 2,072.0 1,851.7 11.9% 11.1% Trading Profit 332.2 286.7 15.9% 15.8% Trading Margin 16.0% 15.5% 0.5pts Underlying Profit before Taxation 280.4 257.0 9.1% 10.7% Underlying Earnings Per Share 19.5p 18.5p 5.4% 6.9% Operating Cash Conversion 70.7% 72.6% (1.9)pts Net Debt (1,206.8) (1,222.7) Dividend per Share 11.18p 10.65p 5.0% Constant FX Change
Aeroflex Drives Robust Performance
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15% 19% 66%
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Non-US Defence & Security
(2014: 20%)
US Defence & Security
(2014: 15%)
Commercial
(2014: 65%)
Note: US$ revenue 37%, EUR & DKK revenue 36%
2015
()
2014
(constant FX)
Change
%
Revenue £m 771.8 687.1 12.3% Trading Profit £m 108.4 113.4 (4.4)% Trading Margin 14.0% 16.5% (2.5)pts
by strong growth in commercial aerospace
Aeroflex Contribution Partially Offset by Weak Commercial Markets
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59% 35% 6%
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Non-US Defence & Security
(2014: 39%)
US Defence & Security
(2014: 54%)
Commercial
(2014: 7%)
Note: US$ revenue 74%
2015
()
2014
(constant FX)
Change
%
Revenue £m 382.4 348.7 9.7% Trading Profit £m 68.0 38.6 76.2% Trading Margin 17.8% 11.1% 6.7pts
Strong AAR Execution Drives Results
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76% 7% 17%
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Non-US Defence & Security
(2014: 4%)
US Defence & Security
(2014: 85%)
Commercial
(2014: 11%)
Note: US$ revenue 99%
2015
()
2014
(constant FX)
Change
%
Revenue £m 538.0 441.9 21.7% Trading Profit £m 80.5 68.4 17.7% Trading Margin 15.0% 15.5% (0.5)pts
and radar, offset by mature production programmes ending
Aeroflex Drives Improvement
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0% 56% 44%
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Non-US Defence & Security
(2014: 54%)
Commercial
(2014: 46%)
Note: AU$ revenue 56%
2015
()
2014
(constant FX)
Change
%
Revenue £m 390.1 387.4 0.7% Trading Profit £m 57.3 52.0 10.2% Trading Margin 14.7% 13.4% 1.3pts
Strong Performance in Difficult Commercial Markets
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Sector Summary at Constant Exchange1
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(1) = 2014 data presented at 2015 exchange rates.
Revenue Trading Profit £m Year to 31/12/15 Year to 31/12/14 Change Year to 31/12/15 Year to 31/12/14 Change Cobham Communications and Connectivity 771.8 687.1 12.3% 108.4 113.4 (4.4%)
Margin 14.0% 16.5%
Cobham Mission Systems 382.4 348.7 9.7% 68.0 38.6 76.2%
Margin 17.8% 11.1%
Cobham Advanced Electronic Solutions 538.0 441.9 21.7% 80.5 68.4 17.7%
Margin 15.0% 15.5%
Cobham Aviation Services 390.1 387.4 0.7% 57.3 52.0 10.2%
Margin 14.7% 13.4%
Head Office and Eliminations (10.3) (0.9) 18.0 14.4 Exchange
Cobham Group - as reported 2,072.0 1,851.7 11.9% 332.2 286.7 15.9%
Margin 16.0% 15.5%
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Year to 31/12/15 Year to 31/12/14 £m £m Trading profit 332.2 286.7 Underlying net finance costs (51.8) (29.7) Underlying profit before taxation 280.4 257.0 Taxation charge on underlying profit (2015: 21.5%; 2014: 20.25%) (60.2) (52.0) Underlying profit after taxation for the period 220.2 205.0 Business restructuring (67.5) (52.2) Movements in non-hedge accounted derivative financial instruments (18.8) (21.8) Amortisation of intangible assets arising on business combinations (176.8) (113.6) Impairment of Goodwill (26.6)
Other business acquisition and divestment related items (30.5) (40.7) Non-underlying finance costs
Taxation on non-underlying items 62.3 56.7 (Loss) / profit after taxation for the year (37.7) 29.0
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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.
332.2 105.5
48.9 98.7 80.9 55.0 56.8 50 100 150 200 250 300 350 400 450 £m
FCF Includes Investment in Development Programmes, CAPEX, Aeroflex Integration
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359.3 378.3 13.0 33.0 36.8 4.0 53.0 41.9 10.9 100 200 300 400 500 £m
11 Net operating cash outflow of £48.9m 3 March 2016
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31/12/2015 31/12/2014 restated £m £m
Intangible assets 1,729.5 2,040.8 Property, plant and equipment 379.9 390.0 Other non-current assets 102.6 88.8 Non Current Assets 2,212.0 2,519.6 Inventories 410.4 429.5 Trade and other receivables < 1 year 366.0 435.3 Trade and other payables < 1 year (398.1) (505.5) Current Working Capital 378.3 359.3 Net current tax liabilities (116.5) (118.8) Net debt (1,206.8) (1,222.7) Provisions (142.5) (127.0) Retirement benefit obligations (56.7) (102.0) Other assets / liabilities (158.1) (196.1) Net Assets 909.7 1,112.3
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3 March 2016
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Bob Murphy Chief Executive Officer
Simon Nicholls Chief Financial Officer
Bob Murphy
3 March 2016
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Driving Near Term Commercial Volatility, Re-Assessing Global Security Posture
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Source: IMF WEO Oct-2015 Source: BREE, ANZ Source: US EIA
5.4% 4.2% 3.4% 3.3% 3.4% 3.1% 2010 2011 2012 2013 2014 2015 25 45 65 85 105 125 Crude Oil WTI
Economic Growth
Commodity Prices
Energy Markets
Geopolitical Conflict
continued low intensity conflicts
Nickel Gold Iron ore Thermal coal
40 60 80 100 120 2013 2014 2015
Global GDP
Cobham plc Cobham plc
~85% of Portfolio Exposed to Stable or Growing Markets
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Aviation
Products
Aviation
Services
Marine Wireless
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6% 5% 7% 10% 10%
US Defence & Security 36% Non-US Defence & Security 26% Commercial 38% Other
Market uncertainty exists in these segments
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CCC 65% CMS 3% CAES 11% CAvS 21%
Connectivity Underpins Medium to Long-Term Growth Potential
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Drivers of Growth CCC
CAvS
CAES
CMS
Commercial Revenue 38% of FY15 Total
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CCC 15% CMS 30% CAES 55%
$150bn $200bn $250bn $300bn FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Total Obligation Authority
Market Stabilising, Potential Upside
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Well Positioned on Priority Programmes, Platform for Future Growth
US Defence & Security Revenue 36% of FY15 Total
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Drivers of Growth CAES
CMS
CCC
US DoD Investment Accounts
Source: US DoD, 2016 dollars
FY08 to FY15
0% 11%
% represents YoY change
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CCC 27% CMS 25% CAES 8% CAvS 40%
Drivers of Growth CAvS
CCC
CMS
and ISR missions
Medium Term Growth Driven by Regional Conflicts and Emerging Potential Threats
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Non-US Defence & Security Revenue 26% of FY15 Total
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Delivering the strategy requires focus and execution Develop our understanding of customer needs and create closer relationships with
Relentlessly driving improved operational performance every hour of every day Investing in and applying innovative, discriminating technology and ideas to underpin sustainable organic growth Scanning the horizon and allocating our capital to ensure our portfolio is aligned to
Enhancing the skills and capabilities of our employees and how we work to create long term competitive advantage
Underpinned by Key Actions to Deliver Sustainable Long Term Value
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Build and maintain leading positions in our chosen markets by leveraging innovative technology and know-how with a deep insight into customer needs
Cobham plc Cobham plc
Executing in an Uncertain Environment
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Priority Focus
Focus On the Customer, Align Investment with their Needs
Generate Increased Free Cash Flow to Reduce Debt
application of SIOP
Drive Continuous Improvement
Credit: Boeing
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Shaping the Portfolio on Core Capabilities
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Distributed Antenna Systems SATCOM Rotary Wing Services Microelectronics & Test Equipment Beacons Aviation Displays PXI RFMW Components Composites Diodes Surveillance
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Working together to be a leading Global Technology and Services innovator, respected for providing solutions to the most challenging problems
Build and maintain leading positions in our chosen markets by leveraging innovative technology and know- how with a deep insight into customer needs
Safety Performance Innovation Relationships Integrity Trust
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Results Investor Events
26
Trading Update
4
Interim Results
28
AGM & AGM Statement
3
Prelim Results
11-15
Farnborough Airshow
11
Capital Markets Day, London
Cobham plc Cobham plc
36% 26% 38% 47% 11% 15% 11% 11% 5%
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Non-US Defence & Security
(2014: 27%)
US Defence & Security
(2014: 34%)
Commercial
(2014: 39%)
USA
(2014: 44%)
UK
(2014: 12%)
Other EU
(2014: 16%)
Australia
(2014: 13%)
Asia
(2014: 9%)
RoW
(2014: 6%)
Cobham plc Cobham plc
CCC CCC CMS CMS CAES CAES CAvS CAvS 12 11 224 13 40
1,852 2,072
500 1,000 1,500 2,000 2,500
2014 FX Translation Divestments Acquisitions Defence/ Security Commercial 2015
£m
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1% (6%) (1%) organic growth
Cobham plc Cobham plc
2014 to 2015
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286.7 332.2
10.7 5.9 15.0 22.5 24.6 100 200 300 400 £m
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2014 to 2015
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15.5% 16.0%
0.4% 0.7% 0.4% 0.8% 1.2%
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18.48p 17.58p 19.48p
0.27p 0.34p 0.29p 0.06p 0.08p 2.04p
0.0 5.0 10.0 15.0 20.0
2014 Reported FX translation share placing tax rate 2014 Restated Aeroflex Divestments Organic 2015 Reported
pence
3 March 2016
Year-on-year change
(1.5)% (1.8)%
e
(0.3)%
e e
(1.6)% 11.0%
e e
(0.4)%
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Year to 31/12/11 Year to 31/12/12 Year to 31/12/13 Year to 31/12/14 Year to 31/12/15 CAGR Organic Revenue Growth (1%) (1%) (4%) (2%) (1%) (1.6)%
(1)
Defence / Security (3%) (1%) (9%) (5%) 1% (3.6)%
(1)
Commercial 8% 2% 7% 5% (6%) 3.1%
(1)
Earnings Per Share Growth (constant translation) 12.6% 3.2% (4.2%) (11.3%) 6.9% 1.1%
(1)
Operating Cash Conversion 94.8% 104.5% 85.4% 72.6% 70.7% 85.6%
(2)
PV Spend % 4.9% 5.3% 6.2% 6.7% 8.2% 6.3%
(2)
Return on Invested Capital % 19.4% 18.1% 15.3% 12.4% 10.9% 15.2%
(2)
(1) CAGR over 5 years (2) Average over 5 years
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Year to 31/12/15 Year to 31/12/14 Growth Earnings Per Share Underlying 19.5p 18.5p 5.4% Basic (3.3)p 2.6p Diluted (3.3)p 2.6p Dividend Per Share 11.18p 10.65p 5.0%
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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 31/12/15 Year to 31/12/14 £m £m Trading profit (less post tax share of JV profits) 332.0 286.5 Depreciation and amortisation 74.6 71.7 Pension contributions in excess of pension charges (17.8) (16.9) Increase in working capital (48.9) (70.8) Net capital expenditure (98.7) (73.7) Other items (6.6) 11.1 Operating Cash Flow 234.6 207.9 Underlying net interest paid (49.4) (25.2) Taxation paid (31.5) (37.0) Business restructuring costs (48.2) (31.3) Free Cash Flow 105.5 114.4 Dividends paid (122.1) (108.3) Acquisition and divestments (net) 137.5 (897.3) Treasury shares (net) (24.9) 180.1 Exchange movements (80.1) (58.2) Decrease / (increase) in Net Debt 15.9 (769.3) Opening Net Debt (1,222.7) (453.4) Closing Net Debt (1,206.8) (1,222.7) Net Debt: EBITDA 2.9 2.6
3 March 2016
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Inventories Receivables Payables Current Working Capital Non-current Total Working Capital £m £m £m £m £m £m
Opening Balance Sheet 429.5 435.3 (505.5) 359.3 14.9 374.2 Underlying Cash Outflow/(Inflow) 35.9 (40.5) 31.3 26.7 22.2 48.9 FX 10.1 6.4 (5.6) 10.9 0.6 11.5 Acquisitions and Disposals (34.0) (18.2) 15.4 (36.8)
Non-Underlying Items (31.1) (17.0) 66.3 18.2 8.8 27.0 Closing Balance Sheet 410.4 366.0 (398.1) 378.3 46.5 424.8
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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 £2.4m (2014: £2.2m). 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 9.1 14.2 14.4 15.2 Cobham Mission Systems 4.6 5.4 8.6 5.1 Cobham Advanced Electronic Solutions 18.0 16.3 10.4 12.5 Cobham Aviation Services 55.6 36.3 30.2 36.2 Head Office 11.4 2.4 10.0 2.6 Core Businesses 98.7 74.6 73.6 71.6 Non Core Businesses
0.1 Cobham Group 98.7 74.6 73.7 71.7 2015 2014
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Year to Dec 2015 Year to Dec 2014 £m £m Opening Deficit (102.0) (87.3) Service Cost (6.9) (5.5) Admin Cost (0.7) (0.6) Curtailment gains net of past service cost recognised in income statement 4.2
(3.1) (3.6) Total Employer Contributions 22.7 23.0 Actuarial Variations 29.6 (27.7) FX impact (0.5) (0.3) Closing Deficit (56.7) (102.0) Primary Assumptions Discount Rate 3.8% 3.5% Price Inflation Rate 3.2% 3.2% Salary Inflation Rate 3.5% 3.5% Life Expectancy of Male aged 65 in 2045 25.6yrs 25.5yrs
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42 Loan / Facility Usage £m £m US$ Loan Notes Fixed rate (Mar 2016) 54.9 54.9 Floating rate (May 2017) 33.9 33.9 Fixed rate (Oct 2017) 50.9 50.9 Floating rate (Feb/Mar 2018) 71.2 71.2 Fixed rate (Mar 2019) 106.9 106.9 Fixed rate (Oct 2019) 122.1 122.1 Fixed rate (Oct 2020) 29.9 29.9 Fixed rate (Oct 2021) 169.7 169.7 Fixed rate (Oct 2024) 288.3 288.3 927.8 927.8 Bank Facilities US$90m multi-currency revolving credit agreement (Oct 2016) 61.1 49.7 US$75m credit agreement (Dec 2016) 50.8 50.8 EUR70m multi-currency revolving facility (Oct 2018) 51.6 41.6 DKK525m multi-currency revolving facility (Oct 2018) 51.8
183.2 149.1 AUS$90m revolving credit facility (Oct 2018) 44.4 29.0 US$185m bi-lateral credit agreement (Oct 2018) 125.6 125.6 US$40m Schuldschein agreement (May 2020) 27.2 27.2 EUR131m Schuldschein agreement (May 2020) 96.6 96.6 EUR4m Schuldschein agreement (May 2022) 2.9 2.9 695.2 572.5 Total Committed Facilities 1,623.0 1,500.3 Overdrafts 0.7 0.7 Finance Leases 0.5 0.5 Gross Debt 1,624.2 1,501.5 Cash (294.7) Net Debt 1,624.2 1,206.8 3 March 2016
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200 400 600 800 1,000 1,200 1,400 1,600 1,800 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23 Dec 24 £m Mar, Oct, Dec Feb, Mar, Oct Oct
Net Debt at Dec 2015 £1,207m
May May, Oct Mar, Oct Oct May, Oct
43 3 March 2016
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44 (1)
For covenant purposes net debt is typically expressed at average translation rates. (2) EBITDA includes pro forma adjustments in respect of acquisitions and divestments.
Dec-15 Dec-14 Dec-13 Dec-12 Net Debt (£m) - Balance Sheet (1,206.8) (1,222.7) (453.4) (359.9) Net Debt (£m) - Average Rate (1) (1,160.7) (1,159.2) (479.6) (370.9) EBITDA (2) (£m) 396.4 440.2 395.0 407.5 Net Debt to EBITDA (not to exceed 3.5 times) 2.9 2.6 1.2 0.9 EBITA (£m) 333.4 297.6 322.4 348.3 Net Interest (£m) 48.7 28.4 27.0 30.0 Interest Cover (at or above 3 times) 6.8 10.5 11.9 11.6
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– 2015 underlying PBT at December closing rates would be c.£2.1m higher – Movements in exchange do not impact
– Translation risk not hedged as generally impact is only crystallised to the extent that profit is not reinvested in the business and is repatriated to the UK – Risk partly mitigated by matching the currency profile of debt to that of the functional currencies of our operations
– Mostly hedged where we have costs or revenues that are not in underlying functional currency of the business – See next slide “Foreign Exchange Transaction Exposure” highlighting US$/£ and US$/DKK forward coverage
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Revenue PBT Net Debt £m £m £m US$ 7 1 9 AUS$ 1 EUR / DKK 2 1 10 1 10 Impact of pro rata 1 cent movement
3 March 2016
Average rate Year end rate % change 2015 US$ 1.53 1.47 4% AUS$ 2.03 2.03 0% EUR 1.38 1.36 1% DKK 10.27 10.13 1% 2014 US$ 1.65 1.56 5% AUS$ 1.83 1.91 (4)% EUR 1.24 1.29 (4)% DKK 9.25 9.60 (4)%
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Dollar/Euro exposure predominantly hedged for 2016 with $53m @ 1.11
3 March 2016
2016 Total $122m Hedging in place $99m $/£ -92% $/DKK - 81% hedged for 2016 Average hedge rates $1.53:£1 $1:DKK 6.76 2017 Hedging in place Average hedge rates $1.52:£1 $1:DKK 6.50 Average hedge rates $1.57:£1 $1:DKK 6.07 $37m 2018 to 2022 Historic average effective rate 2012 $1.59 :£1 2013 $1.59 :£1 2014 $1.61 :£1 2015 $1.59: £1 $119m $109m $62m $67m $2m $/DKK $/£
Cobham plc Cobham plc 47
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, gains and losses arising on dividend related foreign exchange contracts, impairments
underlying finance costs, which exclude acquisition related items, and after deducting associated taxation and non-controlling interests. All underlying measures include the operational results of all businesses including those held for sale until the point of sale. 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, gains or losses arising on business divestments, adjustments to businesses held for sale, the writing off of the pre-acquisition profit element of inventory written up on acquisition,
acquired businesses. Business restructuring costs Business restructuring costs relate to the restructuring of the Group’s portfolio which are incremental to normal operations. In 2015, these relate primarily to the integration of the Aeroflex businesses acquired in 2014. Operating cash flow Operating cash flow is free cash flow before payment of tax, interest and restructuring costs. Operating cash conversion is defined as operating cash flow as a percentage of trading profit excluding the post tax share of JV profits. 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. 3 March 2016
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3G Third Generation 4G Fourth Generation 5G Fifth Generation AAR Air-to-Air Refuelling AARGM Advanced Anti-Radiation Guided Missile AESA Active Electronically Scanned Array (radar) AGM Annual General Meeting 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 BAMS Broad Area Maritime Surveillance BCA Budget Control Act 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 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 CT Computed Tomography DAS Distributed Antenna System DoD Department of Defence DSEI Defence and Security Equipment International 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 EMD Engineering, Manufacturing and Development E-Scan Electronically Scanned EU European Union EVP Executive Vice President EW Electronic Warfare FBH FB Heliservices FCF Free Cash Flow FIFO Fly-In Fly-Out FSTA Future Strategic Tanker Aircraft FX Foreign Exchange GAAP Generally Accepted Accounting Principles 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 IOC Initial Operating Capability 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 NATO North Atlantic Treaty Organisation OCF Operating Cash Flow OE Original Equipment PAC 3 Patriot Advanced Capability-3 PBT Profit Before Tax PCI Peripheral Component Interconnect PM Programme Management PP Private Placement PTS Points PV Private Venture (Company funded R&D) PXI PCI eXtensions for Instrumentation R&D Research & Development RDT&E Research, Development, Test & Evaluation RF Radio Frequency RF/MW Radio Frequency / Microwave RoW Rest of World RSAF Royal Saudi Air Force SAR Search-And-Rescue SATCOM Satellite Communication SEWIP Surface Electronic Warfare Improvement Program SIOP Sales Inventory and Operations Planning SSA Special Security Agreement SWAP-C Space, Weight, Power and Cooling SWP Strategic Workforce Planning TD-SCDMA Time Division Synchronous Code Division Multiple Access THAAD Terminal High Altitude Area Defence UAV Unmanned Aerial Vehicle UMTS Universal Mobile Telecommunications System USAF United States Air Force USMC United States Marine Corps WCDMA Wideband Code Division Multiple Access WIP Work In Process WTI West Texas Intermediate YoY Year Over Year YTD Year-to-Date
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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.
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