Interims Results 2015 - Cobham•Dec 2014: EMD1 first flight •Summer 2015: first flight of KC-46 tanker •August 2017: 18 KC-46 aircraft delivered to USAF •Feb 2015: First flight

The most important thing we build is trust

ADVANCED ELECTRONIC SOLUTIONS AVIATION SERVICES COMMUNICATIONS AND CONNECTIVITY MISSION SYSTEMS

Interims Results 2015

Progressing Our Strategy

Cobham plc Cobham plc

Agenda

6 August 2015 1

• Introduction Bob Murphy Chief Executive Officer

• Financial Results Simon Nicholls Chief Financial Officer

• Business Review Bob Murphy Chief Executive Officer

• Q&A


Agenda

2




• Q&A

6 August 2015


Financial Highlights

3 See Appendix for definitions, including underlying, used throughout this presentation.

* At 31 December 2014

H1 2015 H1 2014 Change

£m £m

Order Intake 960.1 728.2 31.8% 29.5%

Revenue 1,048.2 834.1 25.7% 24.0%

Trading Profit 160.3 129.7 23.6% 22.9%

Trading Margin 15.3% 15.5% (0.2)pts

Underlying Profit before Taxation 134.9 117.6 14.7% 16.6%

Underlying Earnings Per Share 9.3p 8.7p 7.7% 9.3%

Operating Cash Conversion 77.1% 63.9% 13.2pts

Net Debt (1,236.6) (1,222.7) *

Dividend per Share 3.05p 2.904p 5.0%

Constant FX

Change

6 August 2015


Cobham Communications & Connectivity (CCC)

4

Non-US Defence & Security (H1 2014: 22%)

US Defence & Security (H1 2014: 15%)

Commercial (H1 2014: 63%) • 32% revenue increase driven by:

• £102m from test business of Aeroflex, with strong underlying demand for new products

• Healthy growth of 13% in commercial aerospace and 6% in US defence/security driven by demand for large transport platforms and increased shipments in Surveillance, respectively

• Overall 1% organic decline driven by oil and gas sector in SATCOM and lower demand for in-building wireless products

• £9m trading profit increase reflecting:

• Strong acquisition performance, partially offset by lower volume in commercial marine and land

• Cost increase in composites development programme of £3m

• PV increased to 12% of revenue to drive future growth; focused on commercial markets

2015 ()

2014(constant FX)

Change%

Revenue £m 408.9 310.5 31.7%

Trading Profit £m 58.2 49.3 18.1%


Note: US$ revenue 37%, EUR & DKK revenue 35%

6 August 2015


Cobham Mission Systems (CMS)

5



Commercial (H1 2014: 9%)

• Total revenue £21m higher, with organic growth of 14% including:

• Re-start of C-130 production for USMC and USAF

• Increased engineering and development revenue, primarily on the US KC-46 aerial refuelling tanker

• Encouraging order flow on missile actuation and weapons carriage and release products

• Lower A330MRTT production from in-year phasing

• Profitability and margin on track; continue to reflect high level of ongoing engineering and development activity in aerial refuelling

2015 ()

2014(constant FX)

Change%

Revenue £m 167.1 146.3 14.2%


Trading Margin 14.9% 14.6% 0.3pts

Note: US$ revenue 74%

6 August 2015


Cobham Advanced Electronic Solutions (CAES)

6




• Consolidated portfolio delivered 46% increase in total revenue:

• Significant contribution of £104m from Aeroflex microelectronics business, bringing increased commercial exposure

• Organic revenue 9% lower with certain programmes nearing end of production life in existing business

• Aeroflex contribution drives trading profit increase, with trading margin stable:

• Reflects ongoing mix change away from production to development programmes

• Offset by benefits from integration savings and continuous improvement activities

2015 ()

2014(constant FX)

Change%

Revenue £m 275.9 188.8 46.1%



Note: US$ revenue 99%

6 August 2015


Cobham Aviation Services (CAvS)

7



• Organic revenue increase driven by:

• Helicopter Services the primary driver, with increased revenue from rotary wing support contracts in Trinidad & Tobago and Qatar

• Commercial revenue in Australia broadly unchanged; some demand weakness from natural resources sector but key contract renewals and entry into service of next generation E190 aircraft

• Completion of second Special Mission detachment for RSAF and ongoing AMSA mobilisation ahead of flying operations commencing in H2 2016

• Total trading profit increased by £3m from increased activity and higher margin from revenue mix and efficiencies

2015 ()

2014(constant FX)

Change%

Revenue £m 203.0 197.7 2.7%


Trading Margin 14.0% 12.8% 1.2pts

Note: AU$ revenue 56%

6 August 2015


Revenue and Profit

Sector Summary at Constant Exchange1

8 (1) = 2014 data presented at 2015 exchange rates.

Revenue Trading Profit

£m H1 2015 H1 2014 Change H1 2015 H1 2014 Change

Cobham Communications and Connectivity 408.9 310.5 31.7% 58.2 49.3 18.1%

Margin 14.2% 15.9%

Cobham Mission Systems 167.1 146.3 14.2% 24.9 21.4 16.4%

Margin 14.9% 14.6%

Cobham Advanced Electronic Solutions 275.9 188.8 46.1% 40.3 27.8 45.0%

Margin 14.6% 14.7%

Cobham Aviation Services 203.0 197.7 2.7% 28.4 25.4 11.8%

Margin 14.0% 12.8%

Head Office and Eliminations (6.7) 1.9 8.5 6.5

Exchange - (11.1) - (0.7)

Cobham Group - as reported 1,048.2 834.1 25.7% 160.3 129.7 23.6%

Margin 15.3% 15.5%

6 August 2015


129.7

160.3

7.97.9

31.3

13.4 1.0 0.7

Trading Profit Bridge

2014 to 2015

9

£m

6 August 2015


Reconciliation of Trading to Reported Profit

10

H1 2015 H1 2014

£m £m

Trading profit 160.3 129.7

Underlying net finance costs (25.4) (12.1)

Underlying profit before taxation 134.9 117.6

Taxation charge on underlying profit (2015: 21.5%; 2014: 20.0%) (29.0) (23.5)

Underlying profit after taxation for the period 105.9 94.1

Business restructuring (23.8) (13.1)

Movements in non-hedge accounted derivative financial instruments (0.4) 5.7

Amortisation of intangible assets arising on business combinations (85.3) (48.6)

Exceptional legal costs - (0.8)

Other business acquisition and divestment related items (21.1) (4.2)

Non-underlying finance costs - (2.4)

Taxation on non-underlying items 22.5 15.4

(Loss)/profit after taxation for the period (2.2) 46.1

6 August 2015


Cash Flow

11

Note: Depreciation and amortisation shown net of profit/loss on sale of property, plant and equipment and excluding amortisation of acquired intangibles.

H1 2015 H1 2014

£m £m

Trading profit 160.3 129.7

Depreciation and amortisation 41.6 33.9

Pension contributions in excess of pension charges (8.0) (8.9)

Increase in working capital (7.0) (48.6)

Net capital expenditure (58.0) (25.7)

Other items (5.3) 2.5

Operating Cash Flow 123.6 82.9

Underlying net interest paid (24.0) (11.6)

Taxation paid (13.6) (18.8)

Business restructuring costs (16.5) (13.4)

Free Cash Flow 69.5 39.1

Dividends paid (87.7) (75.5)

Acquisition payments less divestment proceeds and other related costs (4.8) (23.2)

Placing and net settlement of treasury shares (8.3) 183.7

Exchange movements 17.4 16.0

Increase in Net Debt (13.9) 140.1

Opening Net Debt (1,222.7) (453.4)

Closing Net Debt (1,236.6) (313.3)

Net Debt: EBITDA 2.9 0.9

6 August 2015


Working Capital

12

Inventories Receivables Payables

Current

Working

Capital Non-current

Total

Working

Capital

£m £m £m £m £m £m

Opening Balance Sheet 431.4 436.6 (503.6) 364.4 17.1 381.5

Underlying Cash Outflow/(Inflow) 23.6 (21.5) 4.9 7.0 - 7.0

FX (6.2) (11.0) 11.4 (5.8) 0.3 (5.5)

Acquisitions and Disposals (7.6) (4.3) 2.6 (9.3) (3.3) (12.6)

Non-Underlying Items (20.6) (30.1) 73.2 22.5 15.4 37.9

Closing Balance Sheet 420.6 369.7 (411.5) 378.8 29.5 408.3

6 August 2015


Balance Sheet

13 6 August 2015

30/06/2015 31/12/2014

£m £m

Intangible assets 1,842.7 1,997.2

Property, plant and equipment 380.4 390.0

Other non-current assets 99.2 91.0

Non Current Assets 2,322.3 2,478.2

Inventories 420.6 431.4

Trade and other receivables < 1 year 369.7 436.6

Trade and other payables < 1 year (411.5) (503.6)

Current Working Capital 378.8 364.4

Net current tax liabilities (134.4) (118.8)

Net debt (1,236.6) (1,222.7)

Provisions (122.0) (67.4)

Retirement benefit obligations (83.8) (102.0)

Other assets / liabilities (137.0) (219.4)

Net Assets 987.3 1,112.3


Summary

• Strong revenue and earnings growth in the first half, driven by Aeroflex

• Modest organic revenue growth due to short-term headwinds in commercial markets

• Good progress in resolving the technical issues on our major aerial refuelling development programmes

• Improving cash conversion

• Completed successful refinancing of short-term borrowings associated with the Aeroflex transaction on a long-term basis

• Comfortable headroom under committed borrowing facilities

• Interim dividend increase of 5%

6 August 2015 14


Agenda

6 August 2015 15




• Q&A


Today’s Agenda

• Delivering Second Half Performance

• Market Update

– Commercial

– US Defence & Security

– Non-US Defence & Security

• Strategy Update

• Summary

6 August 2015 16


Delivering Second Half Performance

Anticipating Increased Short Cycle Market Demand

17

Orders Revenue

• Anticipate stronger second half short cycle orders building on Q2 momentum

‒ Communications & Connectivity Sector

‒ Advanced Electronics Solutions Sector

• Higher short cycle shipments

• AAR deliveries on track

• Driving Sales, Inventory, Operations Planning (SIOP) discipline and agility

Trading Profit Operating Cash

• Higher commercial short cycle revenue drives improved profit

• Synergy benefits being secured

• Proactive cost control measures

• Increased profit drives H2 cash

• Driving working capital equation to achieve 80% cash conversion target

• Investing capex in Aviation Services to support growth (AMSA win)

Convert Short Cycle Orders to Revenue & Deliver AAR

6 August 2015


Recapitalising Aerial Refuelling Capability

A330MRTT A400M KC-46 KC-390

Scope

• Wing Pods

• Fuselage Refuelling Unit (centreline)

• Wing Dispense Equipment (pods)

• Hose Drum Unit (centreline)

• Wing Aerial Refuelling Pods

• Centreline Drogue System

• Body Fuel Tanks

• Wing Pods

• Refuelling Probe

Key Milestones

• Production continues; >60 pods currently in service

• June 2015: South Korea selects A330MRTT

• Feb 2015: Successful simultaneous AAR demonstration with F/A-18’s

• Continued production ramp

• Dec 2014: EMD1 first flight

• Summer 2015: first flight of KC-46 tanker

• August 2017: 18 KC-46 aircraft delivered to USAF

• Feb 2015: First flight

• 2018: KC-390 Initial Operating Capability (IOC)

Programme Lifecycle

• 30+ aircraft on order with additional orders likely

• Deliveries anticipated thru 2025 and beyond

• 33 aircraft current orders with AAR capability; expect additional AAR orders


• 179 aircraft for USAF with follow-on order potential

• Deliveries anticipated thru FY2027

• 60 committed orders with additional orders likely


18

Providing A Critical Capability and In Service Support

Leveraging Common Technology Across Platforms

6 August 2015


Today’s Agenda


• Market Update

– Commercial



• Strategy Update

• Summary

19 6 August 2015


6%

3%

5%

9%

8%

H1 2015

27%

41%

2011 H1 2015

We Operate In Three Principal Markets

Creating a Better Balanced Portfolio

20

Commercial Revenue (% of Group)

US Defence & Security

Non-US Defence & Security Aviation

Services

Wireless

Marine

Space

Aviation

Products

8%

10%

9%

5%

3%

6%

41%

48%

35%

25%

24%

73%

59%

2011 H1 2015

Other

US & Non-US Defence & Security Revenue

(% of Group)

Portfolio Shape Better Aligned to Growth Strategy

6 August 2015

18%


CCC64%

CMS2%

CAES14%

CAvS20%

• 737/A320 and widebody aircraft ramp up

• Strong 4G/LTE rollout, 5G development underway

• Demand for commercial high throughput satellites

– Global Xpress and Thor 7 constellations

• Soft demand and pricing for natural resources

Well Positioned in our Commercial Markets

Connectivity and Specialist Aviation Services Enable Future Growth

6 August 2015 21

Growth Underpinned by Differentiated Technology

Drivers of Growth

CCC • SATCOM • Wireless

• Strong positions for SATCOM, avionics and communications components

• Virtualised solutions for wireless equipment testing

CAvS • Airline Services • Regional Services

• Demand for gravel kit jet services to the resource sector

• Targeted fleet modernisation and service enhancements for key customers

CAES • Microelectronics • Semiconductors

• Strong demand for Hi-Rel products for commercial space programmes

• Medical imaging (CT & X-ray Hi-Rel components)

CMS • Pneumatic Systems • Actuation Systems

• Fuel tank inerting positions and emergency actuation deliveries

• Incremental growth from securing new contract for precision valves

Commercial Revenue 41% of H1 2015 Revenue


CCC17%

CMS28%

CAES55%

• Moderating downturn should temper historic declines

• Some Congressional momentum for potential relief from BCA caps, but remains very unclear

• Expect a Continuing Resolution in FY16

• Modernisation of Electronic Warfare capability is US DoD imperative to combat perceived shortfall

• Key franchise platforms remain well funded

US Defence & Security Beginning to Stabilise

Programme Positioning Key for the Future

6 August 2015 22

Investment Targeted on DoD Priority Areas

US Defence & Security Revenue 35% of H1 2015 Revenue

Drivers of Growth

CAES • Microelectronics

• Strong Microelectronics position on F-35

• Critical connectivity subsystems on major missile platforms

CMS • Air-to-Air Refuelling • Actuation Systems

• Positions on US DoD aerial refuelling tankers: KC-46, KC-135, KC-10, KC-130

• Increasing missile actuation

CCC • Antennas • Surveillance

• Year over Year short cycle bookings improvement


CCC28%

CMS21%

CAES6%

CAvS45%

• Increased regional tensions driving increased defence expenditure in the Middle East

• Intensifying of NATO involvement in Middle East

• Force structure modernisation across Southeast Asia

• Increased political focus on border protection and surveillance operations

Regional Tension Drives Non-US Defence & Security

Middle East And Asia Driving Overall Market Growth

6 August 2015 23

Strong Programme Positions Support Future Growth

Non-US Defence & Security Revenue 24% of H1 2015 Revenue

Drivers of Growth

CAvS • Special Mission • Heliservices

• Pilot training for EW for Royal Saudi AF & General Atomics teaming agreement

• 12 year A$640 million AMSA contract to begin in the second half of 2016

CCC • Antennas • Avionics

• Military aircraft communications equipment sales in Middle East and Asia

CMS • Air-to-Air Refuelling • Weapons Carriage

• Aerial Refuelling platform wins in growing Middle Eastern and Asian markets

• Weapons Carriage and Release systems and munitions subsystems primarily in Middle Eastern markets


Today’s Agenda


• Market Update

– Commercial



• Strategy Update

• Summary

6 August 2015 24


We Have a Clear Strategy

Positioning for Long Term Growth

25

Key Success Drivers

1. Enhance strategic focus and balance of portfolio

2. Connectivity underpins future growth

3. Focus on our customers

4. Sustained investment in technology

5. Continuously invest in people, tools & processes

6. Drive continuous improvement culture

7. Execute Aeroflex integration plan and synergy

Another Period of Strategic Progress

Strategic Objective

The Group will build and

maintain leading positions in its

chosen markets by leveraging

innovative technology and

know-how with a deep insight

into customer needs.

6 August 2015


2012 2013 2014 2015+

Building a Portfolio for Sustained Growth

26

Strengthening Positions in Long-Term Growth Markets

37%

28%

35% 48%

25%

27%

Acquisitions

Beacons Aviation Displays

Divestments

PXI Modules and Software

35%

24%

41%

Sharpening Our Strategic Focus, Connectivity 60% of our Portfolio

6 August 2015

RFMW Components

2011

US Defence & Security RoW Defence & Security Commercial

Revenue Contribution


Summary

• Reconfirming 2015 guidance that assumes:

– Anticipated improvement in demand conditions in our short cycle,

commercial land and marine markets

– Continued good progress on aerial refuelling programmes

• Aeroflex integration and synergy on track

• Sharpening the strategic focus of our portfolio

• Driving organic execution and cash generation

• Interim dividend up 5%

Making Good Strategic Progress

27

Delivering Growth

6 August 2015


APPENDICES Cobham Interim Results 2015

6 August 2015 29


Appendices Table of Contents

• Investor Calendar • Group Revenue Analysis • Revenue Bridge • Trading Margin Bridge • Underlying Earnings Per Share • Group Financial KPIs • Shareholder Returns • Capital Expenditure and Depreciation • Pension Deficit Movement • Credit Facilities • Credit Facilities – Maturity Profiles • Covenants • Exchange Rates • Foreign Exchange Transaction Exposure • Ship Set Values • Definitions • Glossary • Cautionary Statement • Notes

30 6 August 2015


Investor Relations Calendar

6 August 2015 31

2015 2016

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Results 5

Trading Update

3

Prelim Results

28 AGM & AGM

Statement

4

Interim Results

Investor Events

15 – 18 DSEI

Defence & Security

Equipment Exhibition,

London

1

Capital Markets

Day, London

11 - 15 Farnborough

Airshow


48%

11%

14%

11%

11%5%

35%

24%

41%

Group Revenue Analysis

6 August 2015 32




USA (H1 2014: 42%)

UK (H1 2014: 14%)

Other EU (H1 2014: 15%)

Australia (H1 2014: 15%)

Asia (H1 2014: 8%)

RoW (H1 2014: 6%)


CCCCCC

CMS

CMSCAES

CAESCAvS

CAvS

1110

191 13

11

834

1,048

H1 2014 FX Translation Divestments Acquisitions Defence/Security

Commercial H1 2015

Revenue Bridge

6 August 2015 33

£m

2.4% (3.5%)

0.3% organic growth


Trading Margin Bridge

2014 to 2015

34

15.5%15.3%

0.8%0.7%

0.2% 0.1%0.3%

1.3%

6 August 2015

Cobham plc Cobham plc 6 August 2015 35

Underlying Earnings Per Share

(1.6)% (4.2)% (1.8)% 12.7% 1.8% 0.8% Year-on-year change


Group Financial KPIs

6 August 2015 36

Year to

31/12/11

Year to

31/12/12

Year to

31/12/13

Year to

31/12/14H1 2014 H1 2015

Organic Revenue Growth (0.6%) (0.6%) (4.0%) (1.5%) (3.9%) 0.3%

Defence / Security (3.5%) (1.5%) (8.8%) (5.1%) (10.0%) 2.4%

Commercial 7.6% 1.9% 6.9% 5.3% 7.6% (3.5%)

Earnings Per Share Growth (constant translation) 12.6% 3.2% (4.2%) (11.3%) (11.6%) 9.3%

Operating Cash Conversion 94.8% 104.5% 85.4% 72.6% 63.9% 77.1%

PV Spend % 4.9% 5.3% 6.2% 6.7% 6.6% 8.4%

Return on Invested Capital % 19.4% 18.1% 15.3% 12.4% 12.3% 10.4%


Shareholder Returns

6 August 2015 37

Full Year

2014H1 2015 H1 2014 Growth

Earnings Per Share

18.5p Underlying 9.3p 8.7p 7.7%

2.6p Basic (0.2)p 4.2p

2.6p Diluted (0.2)p 4.2p

10.65p Dividend Per Share 3.05p 2.904p 5.0%


Capital Expenditure and Depreciation

6 August 2015 38

(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 9.2 9.5 6.2 6.8

Cobham Mission Systems 1.1 2.7 3.6 2.5

Cobham Advanced Electronic Solutions 8.1 8.5 3.2 5.9

Cobham Aviation Services 33.6 19.6 11.1 17.4

Head Office 6.0 1.3 1.5 1.2

Core Businesses 58.0 41.6 25.6 33.8

Non Core Businesses - - 0.1 0.1

Cobham Group 58.0 41.6 25.7 33.9

H1 2015 H1 2014


Pension Deficit Movement

6 August 2015 39

HY to June

2015

FY to Dec

2014

£m £m

Opening Deficit (102.0) (87.3)

Service Cost (3.3) (5.5)

Admin Cost (0.3) (0.6)

Net Finance Cost (1.7) (3.6)

Total Employer Contributions 11.6 23.0

Other Actuarial Variations 11.9 (27.7)

FX impact - (0.3)

Closing Deficit (83.8) (102.0)

Primary Assumptions

Discount Rate 3.8% 3.5%

Price Inflation Rate 3.4% 3.2%

Salary Inflation Rate 3.7% 3.5%

Life Expectancy of Male aged 65 in 2045 25.5yrs 25.5yrs


Credit Facilities

6 August 2015 40

Loan / Facility Usage

£m £m

US$ Loan Notes

Fixed rate (Mar 2016) 51.5 51.5

Floating rate (May 2017) 31.8 31.8

Fixed rate (Oct 2017) 47.7 47.7

Floating rate (Feb/Mar 2018) 66.8 66.8

Fixed rate (Mar 2019) 100.1 100.1

Fixed rate (Oct 2019) 114.5 114.5

Fixed rate (Oct 2020) 28.0 28.0

Fixed rate (Oct 2021) 159.0 159.0

Fixed rate (Oct 2024) 270.2 270.2

869.6 869.6

Bank Facilities

US$90m multi-currency revolving credit agreement (Oct 2016) 57.2 54.9

US$75m credit agreement (Dec 2016) 47.7 47.7

EUR70m multi-currency revolving facility (Jun 2017) 49.6 42.0

DKK525m multi-currency revolving facility (Oct 2018) 49.9 16.5

US$270m multi-currency revolving credit agreement (Oct 2018) 171.7 164.9

AUS$90m revolving credit facility (Oct 2018) 44.0 26.3

US$185m bi-lateral credit agreement (Oct 2018) 117.6 117.6

US$40m Schuldschein agreement (May 2020) 25.4 25.4

EUR131m Schuldschein agreement (May 2020) 92.8 92.8

EUR4m Schuldschein agreement (May 2022) 2.8 2.8

658.7 590.9

Total Committed Facilities 1,528.3 1,460.5

Overdrafts 0.1 0.1

Finance Leases 0.1 0.1

Gross Debt 1,528.5 1,460.7

Cash (224.1)

Net Debt 1,528.5 1,236.6


0

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 June 2015£1,237m

May, Jun,

Oct

Mar,Oct

Oct

May,Oct

Credit Facilities – Maturity Profile

6 August 2015 41


Covenants

6 August 2015 42 (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.

Jun-15 Dec-14 Jun-14 Dec-13

Net Debt (£m) - Balance Sheet (1,236.6) (1,222.7) (313.3) (453.4)

Net Debt (£m) - Average Rate (1) (1,242.4) (1,159.2) (333.6) (479.6)

EBITDA (2)

- rolling 12 months (£m) 422.5 440.2 366.3 395.0

Net Debt to EBITDA (not to exceed 3.5 times) 2.9 2.6 0.9 1.2

EBITA - rolling 12 months (£m) 323.7 297.6 300.6 322.4

Net Interest - rolling 12 months (£m) 41.9 28.4 21.4 27.0

Interest Cover (to exceed 3 times) 7.7 10.5 14.0 11.9


Exchange Rates

• Translation impact

– 2015 underlying PBT at June closing rates would be c.£3.5m lower

– Movements in exchange do not impact organic performance comparisons

– 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

• Transaction impact

– 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

6 August 2015 43

Average

rate

Closing

rate

%

change

June 2015

US$ 1.53 1.57 (3)%

AUS$ 1.95 2.05 (5)%

EUR 1.37 1.41 (3)%

DKK 10.19 10.53 (3)%

Dec 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)%

June 2014

US$ 1.67 1.71 (2)%

AUS$ 1.83 1.81 1%

EUR 1.22 1.25 (2)%

DKK 9.09 9.31 (2)%

Revenue PBT Net Debt

£m £m £m

US$ 7 1 7

AUS$ 1

EUR / DKK 2 1

10 1 8

Impact of pro rata 1 cent movement


Foreign Exchange Transaction Exposure

6 August 2015 44

2015 Total $159m

Hedging in place $159m

$/£ -98% $/DKK - 100%

hedged for 2015

Average hedge rates $1.59: £1

$1:DKK 5.75

2016

Hedging in place Average hedge rates

$1.53: £1 $1:DKK 5.47

Average hedge rates $1.56: £1

$1:DKK 5.34 $48m 2017 to 2022

Transaction Exposure: 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 $56m @ 1.28

$129m

$126m

$43m $125m

$28m

$/DKK $/£


Missile US $k

AMRAAM 50-150

AARGM 120

PAC3/Patriot 210

Standard Missile 90-125

THAAD 2,000

Commercial Aircraft

A320 60-100

A350 130

A380 260

B737 50-110

B777 50

B787 105-150

C919 90

G650 30

MRJ 50

Military Fast Jet US $k

F-16 500-1000

F/A-18 E/F/G 1,000-2,700

F-35 1,200

Typhoon 1,400

Hawk 600

Rafale 160

PC-7 140

T-50 100-150

Gripen 180-500

Medium/Large Military Aircraft

Sentry E-2D 250

Poseidon P-8 880

C-130/KC-130 300-3,200

Satellite

Boeing 702 500-5,000

Rotorcraft US $k

EH101 550-775

EC175 80-170

Apache 500

CH-47 Chinook 90

CH-53K 400

S-61 40

MH60/UH60 350-850

V-22 500-1,100

UAV

Predator/Reaper 250-700

Global Hawk 1,700-2,000

Naval

EDG1000 1,200-1,400

Aegis 2,200-4,500

Ship Set Values

45 6 August 2015


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, adjustments to businesses held for sale, the writing off of the pre-acquisition profit element of inventory written up on acquisition, and other direct costs associated with business combinations and terminated divestments.

Business restructuring costs Business restructuring costs relate to the restructuring of the Group’s portfolio which are incremental to normal operations.

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.

Free cash flow

Free cash flow is defined as net cash from operating activities 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.

46

Definitions

6 August 2015


Glossary

47

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

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

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

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

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

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

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

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

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

YTD Year-to-Date

6 August 2015


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.

48 6 August 2015


Notes Page

49 6 August 2015

Interims Results 2015 - Cobham•Dec 2014: EMD1 first flight •Summer 2015: first flight of KC-46 tanker •August 2017: 18 KC-46 aircraft delivered to USAF •Feb 2015: First flight

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