The most important thing we build is trust
ADVANCED ELECTRONIC SOLUTIONS AVIATION SERVICES COMMUNICATIONS AND CONNECTIVITY MISSION SYSTEMS
Capital Markets Day – Cobham Aviation Services RAF Shawbury, 1 October 2014 Introduction Bob Murphy, Cobham Chief Executive Officer
Page 1 of 75 Welcome to RAF Shawbury Capital Markets Day
• Aviation Services has a robust business model: - Long term contracts and customer relationships, with good revenue visibility and significant order book - Attractive end markets - Differentiated capabilities and know-how - Consistently good financial performance - Excellent management team
• No update today on Group trading – Q3 IMS on 6 November
Page 2 of 75 Capital Markets Day – CEO introduction Cobham plc Timeline Provision of services has long been part of Cobham’s operating model
Acquisition of outstanding AU$1bn Sentinel 50% of FBH JV for £74m Contract renewed to 2021 Acquisition of 2013 National Jet Systems in 2008 Australia for AU$64m Contract win to provide Electronic Warfare (EW) 2000 training to Royal Navy AU$500m expanded Qantas- £200m extension Link contract, further of UK Operational Cobham Supports 1985 expanded in 2013 Readiness Berlin Airlift Acquisition of Training to 2019 Trans Australian Air for AU$25m 2011 1948 to 2003 2013 1949 FBH JV formed – wins UK Defence Helicopter Flying School Contract Flight Refuelling Ltd formed 1996 1934 Flight Refuelling Revenue growth over an extended timeframe ... Becomes a Public Limited Company £52m £143m £180m £222m £308m £365m 1954 1996 2000 2003 2008 2011 2013 A growing business … largely built through organic investment Page 3 of 75 Capital Markets Day – CEO introduction Cobham plc Cobham Aviation Services Revenue A significant proportion of the Group
Cobham Group Cobham Group Revenue FY2013 Proforma Revenue c£1.8bn c£2.2bn
Cobham Cobham Cobham Advanced Advanced Cobham Mission Electronic Electronic Mission Systems Solutions Solutions Systems
Cobham Aviation Cobham Services Aviation Services
Cobham Cobham Communications Communications & Connectivity & Connectivity
Cobham Aviation Services revenue remains c20% of Group post Aeroflex
* FY 2013 Revenue according to realigned Sectors, excludes non-core businesses. Proforma includes full year Aeroflex actual revenue from y/e 30 June 2013 at 2013 average FX rate and estimated full year FBH revenue annualised from H1 2014
Capital Markets Day – CEO introduction Page 4 of 75 Cobham plc Cobham Senior Business & Finance Team
Chief Executive Officer
Bob Murphy
Chief Financial Officer Chief Operating Officer
Global Technology Sectors
Simon Nicholls David Squires
SSA Board Advanced Electronic Aviation Services Communications and Mission Systems Solutions Sector Sector Connectivity Sector Sector
Jill Kale Pete Raby Peter Nottage Mark Barclay
Page 5 of 75 Capital Markets Day – CEO introduction Cobham plc The most important thing we build is trust
ADVANCED ELECTRONIC SOLUTIONS AVIATION SERVICES COMMUNICATIONS AND CONNECTIVITY MISSION SYSTEMS
Capital Markets Day, RAF Shawbury – 1 October 2014 Aviation Services Sector Overview Peter Nottage, Sector President
Page 6 of 75 Aviation Services Snapshot
Sales of £205.5m (H1 2014) Commercial Aviation • • 140 aircraft • 120,000 flying hours per annum Special Mission • Presence in 10 countries • 2,500 employees Rotary Wing
NOTE: Figures exclude Aviation Defense Joint Venture Page 7 of 75 Capital Markets Day - Sector Overview Cobham plc Aviation Services Business overview and structure
Cobham Aviation Services
Commercial Aviation Special Mission Rotary Wing
Regional Airline Services Special Mission Helicopter Services Services Australia Global Global Australia/PNG Operate, maintain and Surveillance and Search and Rescue for Rotary-wing training, Aircraft operations support a fleet of government Operational Readiness operations and platform in support of mining, aircraft under the Training for the military. Flight calibration support for military and oil & gas. High priority Qantas brand. services and military platform support. government. freight operations.
A unique span of complementary capabilities, market-facing structure with global reach
Page 8 of 75 Capital Markets Day - Sector Overview Cobham plc Aviation Services Goal 2 – Committed to safety, people, operational excellence
Recognised for safety
2013 2013 2012 Gorgon Project Managing Safe Work Director’s Award Quarantine Facilities & Fatality Prevention for Environment, Management Award OUTSTANDING Health and Safety CONTRACTOR AWARD Performance
Snapshot of customer representation on Aviation Services’ SPIRIT Reward & Recognition Programme (2006-2014)
Customer feedback
May I extend my personal thanks to you and your Replacing our turboprop services with jet The job of relocating a flight overseas is an enormous team for your flexibility and determination. With services represents great value for money and undertaking, a military process that can take anything very short notice in which to generate the aircraft will increase efficiencies as it enables us to from 12-18 months of very hard work. The fact that it and aircrew, please extend my thanks to your team consolidate our FIFO schedule and still travel took just 4 months from the time Commander Land who worked seamlessly with my Air Department to direct to our sites with gravel runways, while Forces directed me to send 25 Flt AAC to Kenya, to the ensure your Company was represented in the finest increasing passenger comfort. Gold Fields time the flight was established has been nothing short of traditions of flying. Royal Navy [August 2014] Australia [June 2014] remarkable. Joint Helicopter Command [April 2013]
Safety is our first priority, our staff and customers are central to all we do Page 9 of 75 Capital Markets Day - Sector Overview Cobham plc Aviation Services Goal 3 – Global reach with presence in select geographies
Presence in 10 countries with 2,500 employees Page 10 of 75 Capital Markets Day - Sector Overview Cobham plc Aviation Services Goal 4 – Integrated organisation
Sector President Peter Nottage Vice President Vice President Sales and Business Finance & Development Enterprise Risk Jeff McCulloch Matt Lang
Vice President Vice President Commercial Contracts Human Resources Paul Armstrong Steve Barrett
Vice President Vice President Safety, Risk & Operations Environment Ben Gower Chris McKie
Commercial Aviation Special Mission Rotary Wing
Vice President/ Vice President/ Vice President/ General Manager General Manager General Manager Regional Services Special Mission Helicopter Services Ryan Both Darren Moncrieff Roger Luscombe
General Manager Airline Services Russell Dyer
One team leveraging scale, relationships and capability Page 11 of 75 Capital Markets Day - Sector Overview Cobham plc Aviation Services Goal 5 – Strong financial performance
Order book Revenue & orders
1,400 450 1,200 400 350 1,000 300 800 250 £'m 600 £'m 200 400 150 100 200 Revenue Orders 50 0 0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Cash conversion Profit percent
160% 20% 140% 120% 15% 100% 80% 10% 60% 40% 5% 20% 0% 0% 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Helicopter Services was accounted for as a Joint Venture up until 30 June 2013. Sustained organic growth, resilient margins, cash generation ahead of Group average Page 12 of 75 Capital Markets Day - Sector Overview Cobham plc iation Services Strategic alignment
Group Strategic Objective 1. To be a scale, portfolio business focused in three We will build and maintain market segments: leading positions in our chosen markets by leveraging innovative a) Special mission operations and support technology and know-how with a deep insight into customer b) Targeted commercial aviation operations and support needs. c) Rotary-wing training, operations and support including associated platform modification and systems integration for all This will enable us to generate segments sustainable top and bottom line growth, relative to the markets 2. To be widely recognised for our commitment to in which we operate, while safety, people and operational excellence consistently generating good free cash flow and creating 3. To have global reach with presence in select shareholder value. geographies 4. To function as one integrated organisation leveraging scale, relationships and capabilities 5. To deliver sustainable growth and peer-leading financial performance
Page 13 of 75 Capital Markets Day - Sector Overview Cobham plc The most important thing we build is trust
ADVANCED ELECTRONIC SOLUTIONS AVIATION SERVICES COMMUNICATIONS AND CONNECTIVITY MISSION SYSTEMS
Capital Markets Day, RAF Shawbury – 1 October 2014 Cobham Aviation Services – Commercial Aviation, Regional Services Ryan Both, Vice President/General Manager
Page 14 of 75 Commercial in Confidence Regional Services Australian resource projects often occur in remote locations
Page 15 of 75 Capital Markets Day - Regional Services Cobham plc Regional Services Fly in, fly out (FIFO) connects people with remote projects
London, UK Barrow Island = Perth Madrid, Spain
≈1300km 2 hours flight time
Page 16 of 75 Capital Markets Day - Regional Services Cobham plc Regional Services Strong fundamentals drive FIFO requirement
Continued urbanisation in emerging markets drives demand for energy and resources
China Less developed regions, excluding China
Growth in labor demand drives FIFO market
320,000 310,000 300,000 290,000 280,000 270,000 260,000 250,000 2013 2014 2015 F 2016F 2017 F 2018F
Mining, Oil & Gas operations Source: Deloite Access Economics, Modelling employment demand and supply in the resources sector 2013
Page 17 of 75 Capital Markets Day - Regional Services Cobham plc Regional Services Customer value proposition
Track record of high Exceptional safety standard Bespoke service performance (e.g. quarantine)
Only jet freighter within Unmatched gravel kit Innovation curfew hours jet capability
Page 18 of 75 Capital Markets Day - Regional Services Cobham plc Regional Services Capable of operating within airport night-time curfew hours
• Only jet aircraft type authorised to operate into Sydney Airport during curfew hours, protected under Sydney Airport Curfew Act 1995 • 24 hour / 7 day operations and maintenance control • Dedicated team focused on night freight operations
Page 19 of 75 Capital Markets Day - Regional Services Cobham plc Regional Services Gravel-kit jets drive productivity and savings
Granny Smith
35% faster
Perth 45% cheaper per seat
“The flexibility introduced by the “Replacing our turboprop services with jet services represents great gravel-kitted jets removed value for money and will increase efficiencies as it enables us to substantial costs while increasing consolidate our FIFO schedule and still travel direct to our sites with productivity. They delivered on their gravel runways, while increasing passenger comfort.” promise.” Xstrata Nickel Gold Fields Australia
Page 20 of 75 Capital Markets Day - Regional Services Cobham plc Regional Services Embraer 190 innovation will streamline logistics and drive savings
Current Fuel Delivery Process Future Process
Fuel delivered to ISO-Tainers unloaded Trucked to Barrow Fuel received at fuel depot from barge Island Airport Perth facility in Port Headland
To Karratha Airport Barge from Dampier Fuel transferred by road tanker to Barrow Island to airport
Fuel transferred into the 200,000 lts fuel tank, from which the airport fuel truck is filled Decanted into airport Loaded onto fuel tankers barge Cobham E190 flight to Barrow Island
Cobham return flight to Perth To Dampier Port facility Transferred into Cobham RJ100 flight to by fuel truck ISO-Tainers. Barrow Island & return No fuel uplift required from Barrow Island for Cobham’s primary aircraft services
Page 21 of 75 Capital Markets Day - Regional Services Cobham plc Regional Services Summary
• Customer-centric - Business that is relentlessly focused on customer needs
• Differentiated - Set of capabilities that are unique and deliver sustainable differentiation
• Performance - A market leading position delivering top-quartile margins
Page 22 of 75 Capital Markets Day - Regional Services Cobham plc Page 23 of 75 Cobham plc Page 24 of 75 Cobham plc Page 25 of 75 1 October 2014 Cobham plc The most important thing we build is trust
ADVANCED ELECTRONIC SOLUTIONS AVIATION SERVICES COMMUNICATIONS AND CONNECTIVITY MISSION SYSTEMS
Capital Markets Day, RAF Shawbury – 1 October 2014 Cobham Aviation Services – Commercial Aviation, Airline Services Russell Dyer, General Manager
Page 26 of 75 Airline Services A track record of organic growth
B717 Fleet Growth
20 18 16 14 12 10 8 6 4 2 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Organic growth: Five Boeing 717s delivered on time, on budget in 2013/14
Page 27 of 75 Capital Markets Day - Airline Services Cobham plc Airline Services Customer value proposition
Exceptional safety standard Customer service Responsiveness/Flexibility
Track record of high Speed to market Cost effective performance
Page 28 of 75 Capital Markets Day - Airline Services Cobham plc Airline Services Summary
• Cobham offers a strong value proposition built on safety, cost effectiveness, high quality performance and flexibility
• A proven track record of delivering large project growth, highly agile market expansion, and on time performance
• A trusted partnership with Qantas for more than 20 years, the only third party trusted with the Qantas brand
Page 29 of 75 Capital Markets Day - Airline Services Cobham plc The most important thing we build is trust
ADVANCED ELECTRONIC SOLUTIONS AVIATION SERVICES COMMUNICATIONS AND CONNECTIVITY MISSION SYSTEMS
Capital Markets Day, RAF Shawbury – 1 October 2014 Cobham Aviation Services – Special Mission Darren Moncrieff, Vice President/General Manager
Page 30 of 75 Special Mission What is surveillance?
The safe and secure transfer of information using highly- 2 1 modified aerial platforms
3
Suspected illegal Canberra entry vessel
Page 31 of 75 Capital Markets Day - Special Mission Cobham plc Special Mission Cobham conducts surveillance operations in two key geographies
Surveillance Fleet
10 x Dash 8
2 x F406
1 x Dash 8 (LADS Navy)
2 x Dornier 228
1 x Islander
Exclusive Economic Zone
Oil Spill Response Zone
Page 32 of 75 Capital Markets Day - Special Mission Cobham plc Special Mission What is Operational Readiness Training (ORT)?
An advanced training solution for armed forces using leading-edge technology
Electronic jamming
Royal Navy Royal Air Force
Page 33 of 75 Capital Markets Day - Special Mission Cobham plc Special Mission Cobham conducts ORT in various regions throughout the world
Operational Readiness Training Fleet
15 x Falcon 20
1 x DA42
Page 34 of 75 Capital Markets Day - Special Mission Cobham plc Special Mission Flight inspection services & Air Traffic Control systems
Flight Inspection Fleet
3 x Beechcraft King Air
1 x DA42
Airport Traffic The calibration and Control certification of flight navigation aids at airports
Airport sensors
Page 35 of 75 Capital Markets Day - Special Mission Cobham plc Special Mission Market Trends & Opportunities
Opportunity to become Opportunity for Opportunity to further integrated aviation further growth evolve services with service provider in beyond western existing clients to the Special Mission countries into other introduce and sector through fixed nations, including support next wing and rotary wing the Middle East generation capability technology
Continued trend to performance-based outsource contracts with monthly and hourly charges
Page 36 of 75 Capital Markets Day - Special Mission Cobham plc Special Mission Customer value proposition
Blend of military capabilities Track record of high Outcome-oriented services with commercial approach performance
Domain know-how Cost effective
Page 37 of 75 Capital Markets Day - Special Mission Cobham plc Special Mission A track record of innovation in mission platforms for surveillance
Australian ADF Sentinel Sentinel Cobham Defence Navy surveillance surveillance introduces Force (ADF) Tracker contract contract Surveillance border aircraft submission commences Information surveillance retired process Management started begins (SIM) system
1968 1975 1984 1991 1996 2002 2006 2008 2010 2012 2014
Cobham wins Cobham Cobham surveillance wins introduces ADF contract and Sentinel operatable outsources Seascan introduces surveillance door border aircraft Dash 8 contract innovation surveillance introduced aircraft for SAR
Evolution of mission platforms
Page 38 of 75 Capital Markets Day - Special Mission Cobham plc Special Mission A track record of innovation in ORT training technology
Development Introduction UK MoD RN & RAF EW Type 45 of new advanced of new CTS QE Carrier outsources contracts merged Destroyer Digital Radio pods & due to EW training & 020 contract enters RN Frequency frequency enter Royal Navy awarded 10Y, service Memory extended service (RN) major EW pod (ADRFM) pods ADRFM pods upgrade for RN for RAF
1985 1990 2000 2006 2008 2012 2014 2015 2017 2018 2020
Cobham wins Development Planned contract to of new Type 23 introduction of JSF provide Typhoon complex Frigates new EW (Lightning Electronic Fighter threat Upgraded capabilities with II) due to Warfare (EW) enters RAF simulator with new synthetic training enter training to RN service pods for RN Radar enhancements service
Evolution of operational readiness training technology
Page 39 of 75 Capital Markets Day - Special Mission Cobham plc Special Mission Summary
• Our objective is to retain our market-leading position and grow our footprint internationally
• We deliver outcome-orientated services at a fraction of the cost than what has traditionally been provided by government bodies
• We continue to look ahead and evolve our offerings to meet emerging technology driven requirements
• The outsourcing trend is extending to governments and militaries beyond western nations, we are focused and delivering on these opportunities
• We now have an opportunity to become an integrated aviation service provider to customers that have a requirement for both fixed and rotary wing capability
Page 40 of 75 Capital Markets Day - Special Mission Cobham plc The most important thing we build is trust
ADVANCED ELECTRONIC SOLUTIONS AVIATION SERVICES COMMUNICATIONS AND CONNECTIVITY MISSION SYSTEMS
Capital Markets Day, RAF Shawbury – 1 October 2014 Highlights Peter Nottage, Sector President
Page 41 of 75 Aviation Services Long term trusted relationships, technology and know-how enabled services
Customs and Border Protection Qantas Hydrographic Survey
Oil Spill Response Surveillance Operational Readiness Training
Search & Rescue Resource sector support Defence Helicopter Flying School
Page 42 of 75 Capital Markets Day - Highlights Cobham plc Aviation Services Very broad capabilities, a full service or any part thereof
REPAIR INTEGRATION INTEGRATION OPERATIONS REPAIR DESIGN REAR OPERATIONS MISSION CERTIFICATION CREW OPERATORS DESIGN CERTIFICATION
AIRCREW
AIRFIELD PASSENGERS MANAGEMENT AIRCREW REGULATORY LINE LINE TERMINAL APPROVALS MAINTENANCE MAINTENANCE HEAVY HEAVY MAINTENANCE MAINTENANCE REGULATORY MISSION APPROVALS OPERATORS
Commercial / Government / Military / Multiple Geographies
Page 43 of 75 Capital Markets Day - Highlights Cobham plc Aviation Services A focus on innovation, a high performance customer-centric culture
Jets into gravel runways Electronic warfare pods B717 In-flight entertainment
Dash 8 - search and rescue capability Kenya in 4 months Leveraging military UAS technology
Customer-centric mindset Mission information systems Catering stowage units Continuous improvement
Page 44 of 75 Capital Markets Day - Highlights Cobham plc Aviation Services Questions
Page 45 of 75 Cobham plc The most important thing we build is trust
ADVANCED ELECTRONIC SOLUTIONS AVIATION SERVICES COMMUNICATIONS AND CONNECTIVITY MISSION SYSTEMS
Capital Markets Day, RAF Shawbury – 1 October 2014 Cobham Aviation Services – Helicopter Services Peter Richardson, Executive Director
Page 46 of 75 Commercial in Confidence Helicopter Services Snapshot
Training • 700 employees • 8 countries of operation • 40,000 flying hours per annum Critical emergency response • 64 aircraft owned • Key locations: Maintenance & modification − Basingstoke, UK − RAF Shawbury, UK − Doha, Qatar
Page 47 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services Operating in select geographies worldwide
United Kingdom
Cyprus
Bahrain
Curacao Qatar Trinidad Brunei
Kenya
Page 48 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services Defence Helicopter Flying School
• Tri-service rotary wing training provision at RAF Shawbury, RAF Valley and the Army Aviation Centre Middle Wallop • Base support services at RAF Shawbury and Army Aviation Centre Middle Wallop
Page 49 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services Defence Helicopter Flying School
• Pilot/crew basic to advanced flying training • Day/night tactical flying • Simulator/cockpit procedures trainers
Page 50 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services Search and Rescue Training Unit (SARTU)
At SARTU, based at RAF Valley, we provide: • Basic and advanced Search & Rescue training for pilots, winchmen and winch operators • Dry and wet winching (over land and sea) • Pilots and rear- crew supporting SARTU operations
Page 51 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services AMSU and CATCS
Central Air Traffic Control School (CATCS) • Training of all military Air Traffic Controllers
Aircraft Maintenance and Storage Unit (AMSU) • Over 100 aircraft in storage • Major servicing of RAF Aerobatic Team Hawks
Page 52 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services Base Support Services at RAF Shawbury & AAC Middle Wallop
• Responsible for maintenance support to the British Army Lynx Training Helicopters at Middle Wallop
Page 53 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services Kenya – MEDEVAC & SH Operations, Maintenance
• 3 specially modified helicopters, with full engineering support incl. facilities • British Army 25 Flight • Support to Battlefield Training, including range clearance and medical/casualty evacuation • Pilot training undertaken at Middle Wallop for Kenya and Brunei pilots
Page 54 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services Cyprus – SAR, MEDEVAC, Surveillance, Firefighting & SH Operations, Maintenance
• 3 highly modified helicopters, with full engineering support • RAF 84 Squadron • Primary role Search and Rescue, but also various activities in support of the UK military and the local community
Page 55 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services Curacao - Surveillance, SAR, Counter Narcotics Operations, Maintenance
• 2 highly modified helicopters, pilots and full engineering support • Dutch Caribbean Coast Guard • Coastguard Operations, including surveillance, SAR and counter narcotics
Page 56 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services Trinidad – SAR Training, Operational Oversight, Maintenance
• AW139 Search and Rescue helicopter and training in the UK at RAF Valley • Provision of engineers, pilots and crewman instructors in Trinidad to support the Trinidad and Tobago Air Guard AW139 helicopters • Contracted through AgustaWestland
Page 57 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services Qatar – Operational Training Development, Maintenance
• Support to the Qatar Emiri Air Force (QEAF)
• Provision of aircrew to support QEAF Sea King helicopter squadron
• Provision of maintenance support to the QEAF AW139 helicopter fleet
Page 58 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services Bahrain – Maintenance Oversight
• Provision of engineers • Rolling contract with the Bahrain Defence Force • Covering - Bell 430, Sikorsky S76, Sikorsky S92
Page 59 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services Market trends
• National Security budget constraints are drawing attention to the comparative cost effectiveness of outsourcing • Cost/capability of civil/para-military versus military requirements is being recognised • Availability of civil versus military helicopters is apparent • The broader helicopter market, including oil and gas, is growing
Page 60 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services Customer value proposition
Bespoke service • Responsiveness and International reach flexibility
Blend of military capabilities Maintenance and modification with commercial approach know-how Page 61 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services Know-how and capability to provide bespoke services
Customised alternative military and civil training solutions provided in the UK or overseas, on Cobham or the customer’s helicopters
Students trained from various countries, including Albania, Algeria, Croatia, Cyprus, Denmark, Egypt, Finland, Hong Kong, Netherlands, Poland, Qatar, Trinidad, USA
Page 62 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services An operating model that delivers responsiveness and flexibility
Providing additional aircraft for clients in response to changing needs
Page 63 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services An operating model that delivers responsiveness and flexibility
Delivering aid in response to the Indonesian Tsunami
Page 64 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services An operating model that delivers responsiveness and flexibility
Providing shelter to support Lebanon evacuations
Page 65 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services An operating model that delivers responsiveness and flexibility
Creation of Brunei facilities BEFORE: Boat shed AFTER: Aircraft hangar
Creating new facilities, continuing operations in response to unforeseen situations
Page 66 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services An operating model that delivers responsiveness and flexibility
Rapid establishment of Kenya operation in 4 months
Page 67 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services International reach to support customers worldwide
Regulatory approvals held with: • UK CAA and UK MoD • EASA • Dutch CAA and Dutch MoD • Qatar MoD • Trinidad CAA • Aruban CAA
Companies or Branches created in: • Cyprus • Qatar • Trinidad • Curacao • Kenya
Page 68 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services Blend of military capabilities with commercial approach providing value for money
Development of the MRCOA model – Military Registered Contractor Owned Aircraft
• Operations under military procedures
• Maintenance and support under civil airworthiness procedures
• Mixed military and civil staff – both aircrew and engineers
Use of civil spares to support military aircraft
Page 69 of 75 Capital Markets Day – Helicopter Services Cobham plc Helicopter Services Maintenance and modification know-how ensuring a turn-key solution
Experienced in: • Managing and implementing simple or complex helicopter modification programmes • Providing engineering and parts support for military or civil helicopters around the world
“Of particular note was your Engineer Detachment. Seldom have I witnessed such a professional technical crew” - Commandant Army Aviation Centre visit to Brunei 2011
Page 70 of 75 Capital Markets Day – Helicopter Services Cobham plc The most important thing we build is trust
ADVANCED ELECTRONIC SOLUTIONS AVIATION SERVICES COMMUNICATIONS AND CONNECTIVITY MISSION SYSTEMS
Capital Markets Day, RAF Shawbury – 1 October 2014 Summary Comments Peter Nottage, Sector President
Page 71 of 75 Aviation Services Disciplined strategy execution
Portfolio Scale Geographies
Structure Safety People
Orders, Sales, Profit and Performance Culture Cash
Page 72 of 75 Capital Markets Day – Summary Comments Cobham plc Aviation Services Strategic alignment
Group Strategic Objective 1. To be a scale, portfolio business focused in three We will build and maintain market segments: leading positions in our chosen markets by leveraging innovative a) Special mission operations and support technology and know-how with a deep insight into customer b) Targeted commercial aviation operations and support needs. c) Rotary-wing training, operations and support including associated platform modification and systems integration for all This will enable us to generate segments sustainable top and bottom line growth, relative to the markets 2. To be widely recognised for our commitment to in which we operate, while safety, people and operational excellence consistently generating good free cash flow and creating 3. To have global reach with presence in select shareholder value. geographies 4. To function as one integrated organisation leveraging scale, relationships and capabilities 5. To deliver sustainable growth and peer-leading financial performance
Page 73 of 75 Capital Markets Day – Summary Comments Cobham plc Aviation Services Conclusion
Unique blend of capabilities and market presence Long-term relationships, trusted for execution Leverage technology, know-how and incumbency to innovate, retain relevance and lead the market A strong global team Track record of growth and strong financial results Good prospects for ongoing growth both organically and through acquisition within and beyond existing geographies
Page 74 of 75 Capital Markets Day – Summary Comments Cobham plc 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 commodity prices, inflation or 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.
Page 75 of 75 Capital Markets Day – Cautionary Statement Cobham plc