of Shareholders William M. Brown Chairman, President & Chief - PowerPoint PPT Presentation

Annual Meeting of Shareholders William M. Brown Chairman, President & Chief Executive Officer | 2014 Annual Meeting of Shareholders | 1 10/24/2014

Forward-looking statements Statements in this presentation 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 on 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 this presentation include but are not limited to: earnings, revenue, operating margin, free cash flow, tax rate and other guidance for fiscal 2015; potential contract opportunities and awards; the potential value and timing of contract awards; the value of opportunity pipelines; and statements regarding outlook, including expected revenue, orders, cash flow, share repurchases and dividends and potential growth and expansion. 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 reduction in U.S. Government funding; potential changes in U.S. Government or customer priorities and requirements (including potential deferrals of awards, terminations, reductions of expenditures, changes to respond to the priorities of Congress and the Administration, budgetary constraints, debt ceiling implications, sequestration and cost-cutting initiatives); 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; risks inherent with large long-term fixed-price contracts, particularly the ability to contain cost overruns; financial and government and regulatory risks relating to international sales and operations; the continued effects of the general weakness in the global economy and U.S. Government’s budget deficits, national debt and sequestration; the company’s ability to continue to d evelop new products that achieve market acceptance; the consequences of future geo-political events; strategic acquisitions and the risks and uncertainties related thereto, including the company’s ability to manage and integrate acquired businesses; performance of th e company’s subcontractors and suppliers; potential claims that the company is infringing the intellectual property rights of t hird 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 d isasters or other disruptions on the company’s operations; the potential impact of changes in the regulatory framework that applies to, o r of satellite bandwidth constraints on, the company’s managed satellite and terrestrial communications solutions; and changes in future bus iness 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 this presentation are made as of the date of this presentation, 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. | 2014 Annual Meeting of Shareholders | 2 10/24/2014

Financial performance ($million except EPS) 70% 5,451 5,418 5,112 5,012 60% 4,725 FY14 performance 50% 40% Revenue down 2% Revenue 30% 21% EPS up 2% 19% Operating 18% 18% 18% 20% income margin* $5.20 $5.00 $4.98 $4.90 $4.57 10% Free cash flow up 3% EPS* 0% -10% FY10 FY11 FY12 FY13 FY14 *Reference non-GAAP reconciliation on the Harris investor relations website. | 2014 Annual Meeting of Shareholders | 3 10/24/2014

RF Communications Revenue ($million) Notable Accomplishments Central Asia Australia 3000 35.2% 34.4% Operating 32.8% 31.7% income 30.7% margin* 2500 2,289 2,144 2,067 Down $160M 1,849 1% $111M 1,828 2000 PSPC -12% MNVR US Army USMC 1500 DoD -20% 1000 $141M $109M $97M 500 +25% International Mobile County 0 FY10 FY11 FY12 FY13 FY14 $40M *Reference non-GAAP reconciliation on the Harris investor relations website. | 2014 Annual Meeting of Shareholders | 4 10/24/2014

Government Communications Systems Revenue ($million) Notable Accomplishments Foundation GEOINT Data Comm 15.4% 14.7% 14.2% 2500 Network Services Content 13.3% Operating 12.9% (DCNS) Management income margin* Up 1% 2000 1,801 1,786 1,784 1,729 1,718 Civil 1500 $770M $150M Commercial F-35 Common 1000 Broadband Satellite Components and National Program Data Link 500 Defense Joint 0 Strike $120M $133M Fighter FY10 FY11 FY12 FY13 FY14 *Reference non-GAAP reconciliation on the Harris investor relations website. | 2014 Annual Meeting of Shareholders | 5 10/24/2014

Integrated Network Solutions Notable Accomplishments Revenue ($million) Dept of Veterans Dept of State Affairs 12.1% Operating 9.4% 8.4% 8.1% 8.0% income margin* 1,900 Down 1,610 7% 1,576 1,488 1,463 $89M $29M 1,400 Channel Partners 1,027 900 Healthcare UK/Canada Partnerships IT Services 400 Energy Carnival CapRock (100) FY10 FY11 FY12 FY13 FY14 102 $135M ships *Reference non-GAAP reconciliation on the Harris investor relations website. | 2014 Annual Meeting of Shareholders | 6 10/24/2014

Excellence and Innovation Company-funded R&D Spend Tools ($million) Lean Six Sigma 264 254 Metrics 240 CUSTOMER Objective Measure BU specific; e.g. on time Improve customer satisfaction SATISFACTION delivery; zero out of box failures 228 Objective Measure Supply chain savings (OI & total) Deliver supply chain productivity $, % of spend Labor productivity $, % of labor Increase labor productivity cost Improve cost of poor quality COPQ improvement $, % of total (warranty, scrap, rework, turnbacks, cost of sales PRODUCTIVITY escapes) Cost to serve $, % of revenue, Improve overhead leverage 219 % improvement Improve competitive rates % improvement ROS % (government programs) Improve program execution / GM % (commercial programs) performance NRM % (targeted programs) Improve net working capital Days improvement Capex % of revenue ASSET VELOCITY Improve capital intensity Capex % of depreciation 5.3% Improve return on invested capital ROIC 5 . 0% Training % of 4.8% 4.4% revenue Black ~3x 4.0% Belt Green Belt ~2x Yellow Belt White Belt FY10 FY11 FY12 FY13 FY14 Pre-Launch FY14 FY15 Forecast Source: Annual SEC filings | 2014 Annual Meeting of Shareholders | 7 10/24/2014

Cash generation and deployment ($million) 125% 119% Free cash flow 102% 101% Philosophy to non-GAAP 80% net income* 675 655 619 605 Fully fund internal requirements 508 Pursue accretive acquisitions Free cash flow* Maintain healthy balance sheet Return cash to shareholders CapEx (178) (198) (209) (234) (325) FY10 FY11 FY12 FY13 FY14 *Reference non-GAAP reconciliation on the Harris investor relations website. | 2014 Annual Meeting of Shareholders | 8 10/24/2014

Return cash to shareholders ($million) 141 141 142 Average fully diluted 613 share count (millions) 580 137 133 130 490 126 474 ~$3.4 billion 415 ~400 dividends/repurchases 383 over last ten years 309 115 323 316 111 310 ~200 256 107 239 208 235 251 132 88 88 ~200 Share repurchases 180 165 140 45 127 56 115 107 82 58 Dividends 43 32 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Guidance Dividends and repurchases/ 77% ** free cash flow * 37% 47% 99% 77% 44% 53% 75% 99% 89% 73% *Reference non-GAAP reconciliation on the Harris investor relations website. ** Based on midpoint of guidance provided July 29, 2014. | 2014 Annual Meeting of Shareholders | 9 10/24/2014

Track record of double-digit dividend growth $1.88 12% increase approved $1.68 August 2014 $1.48 $1.22 $1.00 $0.88 $0.80 $0.60 $0.44 $0.32 $0.24 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 | 2014 Annual Meeting of Shareholders | 10 10/24/2014

Annual Meeting of Shareholders | 2014 Annual Meeting of Shareholders | 11 10/24/2014