| 2012 Annual Meeting of Shareholders 10/26/2012 | 0
Annual Meeting of Shareholders William M. Brown President and Chief Executive Officer harris.com | 2012 Annual Meeting of Shareholders 10/26/2012 | 1
Forward looking statements Statements in these presentations that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements in these presentations include but are not limited to statements concerning: the company’s plans, strategies or objectives for future operations or results; new products, services or developments; future economic conditions, performance or outlook; the outcome of contingencies; the company’s beliefs or expectations; activities that the company intends, expects, projects, believes or anticipates will or may occur in the future; the potential value of contract awards; potential orders, contract opportunities or awards; statements regarding outlook, including guidance or expectations for revenue, earnings, margins or cash flow for the company and its business units; plans to divest Broadcast Communications; and assumptions underlying any of the foregoing. Forward-looking statements may be identified by use of words such as “believes,” “expects,” “may,” “should,” “would,” “will,” “intends,” “plans,” “target,” “forecast,” “estimates,” “anticipates,” “projects,” or similar words or expressions. The company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. The company's consolidated results and the forward-looking statements could be affected by many factors, including but not limited to: the loss of the company’s relationship with the U.S. government or a shift in U.S. government funding; potential changes in U.S. government or customer priorities or requirements (including potential deferrals of awards, terminations, reductions of expenditures, changes to respond to the priorities of Congress or the Administration, budgetary constraints, debt ceiling implications, sequestration or cost-cutting initiatives); risks inherent with large long-term fixed-price contracts, particularly the ability to contain cost overruns; the potential impact of a security breach, through cyber attack or otherwise, or other significant disruptions of the company’s IT networks and systems or those the company operates for customers; financial and government and regulatory risks relating to international sales and operations; the continued effects of the general downturn in the global economy and U.S. government’s budget deficits and national debt; the ability to continue to develop new products that achieve market acceptance; the consequences of future geo-political events; strategic acquisitions and the risks and uncertainties related thereto, including the ability to manage and integrate acquired businesses; performance of subcontractors and suppliers; potential claims that the company is infringing the intellectual property rights of third parties; the successful resolution of patent infringement claims and the ultimate outcome of other contingencies, litigation and legal matters; risks inherent in developing new technologies; changes in the company’s effective tax rate; the potential impact of natural disasters or other disruptions on the company’s operations; the potential impact of changes in the regulatory framework that applies to, or of satellite bandwidth constraints on, the company’s managed satellite and terrestrial communications solutions; the timing and impact of anticipated dispositions of the company’s Cyber Integrated Solutions operation and Broadcast Communications business; the timing and amount of anticipated gains, losses, impairments and charges related to such dispositions; and changes in future business or other market conditions that could cause business investments and/or recorded goodwill or other long-term assets to become impaired. Further information relating to factors that may impact the company's results and forward-looking statements are disclosed in the company's filings with the SEC. The forward-looking statements contained in these presentations are made as of the date of these presentations, and the company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. | 2012 Annual Meeting of Shareholders 10/26/2012 | 2
Overview By segment By end customer Energy Healthcare and Maritime Public Government Government Government Safety U.S. DoD RF RF RF Communications Communications Communications Communications Communications Systems Communications Systems Systems International Government Integrated Integrated Integrated U.S. Civil Network Network U.S. Intel Network Solutions Solutions Solutions Revenue ~$5.5B | 2012 Annual Meeting of Shareholders 10/26/2012 | 3
Financial performance ($million except EPS) 10.00 Revenue Operating Income 9.00 1,042 8.00 999 1300 6,000 975 0-2% 7.00 5,451 5,418 5,500 1200 792 6.00 5,000 4,725 1100 4,431 5.00 5.20 $5.10- 4,500 4.98 1000 $5.30 4.57 4.00 Earnings 4,000 3.78 900 per share 3.00 3,500 800 2.00 3,000 700 2,500 1.00 600 2,000 - FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 Guid Guid Based on guidance provided July 31, 2012. Reference non-GAAP reconciliation on the Harris investor relations website. | 2012 Annual Meeting of Shareholders 10/26/2012 | 4
Accomplishments Customer Wins Product Innovation $5B $235M 20 years FAA contract PSPC LTE Small tactical extension device terminal Australia Defense Forces Undisclosed Royal Caribbean Hosted payloads VSAT service | 2012 Annual Meeting of Shareholders 10/26/2012 | 5
Portfolio optimization “Core” Government RF Communications Communications Systems Integrated Network Broadcast Divest Solutions Communications Off-premise Discontinue cloud hosting Revenue profile prior to portfolio optimization. | 2012 Annual Meeting of Shareholders 10/26/2012 | 6
Strategy Sustain and grow core Accelerate growth initiatives Deploy Tactical Comms Government IT Services Communications capital effectively Healthcare Systems CapRock Debt holders Public Safety and Professional Drive operational Communications Shareholders Acquisitions excellence Supply chain Manufacturing Working and field capital operations Overhead | 2012 Annual Meeting of Shareholders 10/26/2012 | 7
Tactical Communications – building and sustaining global leadership Cumulative units fielded (K) Industry position Falcon III 462 43% 395 39% ~40% 39% 38% Falcon II 309 32% #1 28% 251 Harris 23% ~40% 157 16% 18% 19% 96 56 37 25 14 7 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 JTRS started Source: Company estimates | 2012 Annual Meeting of Shareholders 10/26/2012 | 8
Tactical Communications – building and sustaining global leadership Capture modernization opportunity Extend technology leadership < 2% JTRS wideband capable HF JTRS HH SPR MB HH MB UHF/MP VHF-SINCGARS Installed base: 1.35 million radios ($17B spent) | 2012 Annual Meeting of Shareholders 10/26/2012 | 9
GCS – expanding the franchise Revenue Civil FTI GOES-R National Space Classified ground Defense Satcom Airborne | 2012 Annual Meeting of Shareholders 10/26/2012 | 10
Expanding the FAA franchise – capability for the next 20 years FAA Telecommunications Infrastructure (FTI) $5B 20 years National Air Space Voice $291M System (NVS) 5 years • Modernize voice communications between planes and controllers Harris prime – awarded 2002 Data Communications and $331M Integrated Services (DCIS) 7 years 99.999% network availability • Digital messaging services $100M per year in cost savings between air traffic tower and cockpit 10x bandwidth capacity | 2012 Annual Meeting of Shareholders 10/26/2012 | 11
Expanding the weather franchise – value to new missions Geostationary Operational Environmental U.S. Government ground opportunities Satellite (GOES-R) program $1B $300M Joint Polar Satellite System 10 years 4 years (JPSS) – NOAA • Polar weather system JPSS • Expected award date: Winter 2014 $200M Defense Weather Satellite 6 years System (DWSS) – USAF Harris prime – awarded May 2009 • Replaces aging Defense Meteorological 45x increase in data processed DMSP Satellite Program 30+ weather products for USG • Expected award date: Summer 2015 and global partners | 2012 Annual Meeting of Shareholders 10/26/2012 | 12
Harris CapRock – creating an industry leader Leadership… …in a growing industry Global Connectivity CapRock Managed satellite Services (Schlumberger) Communications communications industry $2,850M Core180 Harris Maritime Infrastructure Communications U.S. Double-digit Government growth Maritime #1 Energy Harris ~20% 2011 2012 2013 2014 2015 Global industry position Source: COMSYS and company estimates | 2012 Annual Meeting of Shareholders 10/26/2012 | 13
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