7 august 2008 - cobhaminterim results 2008 2 summary profit and loss account full year 2007 £m...

Interim Results 20081

Interim Results

7 August 2008


Summary Profit and Loss Account

Full Year2007 £m

Unaudited H1 2007 £m

Unaudited H1 2008 £m Growth

1,185.6

1,061.1

198.8

18.7%

6.3%

206.5

13.09

Order Intake 575 818 42%

Revenue 494 632 28%

Trading profit 83 107 28%

Margin 16.9% 16.8% (0.1)pts

PV Spend % 6.2% 6.3% 0.1pts

Profit before Taxation 86 107 24%

Earnings Per Share 5.48 p 6.69p 22%

Note: See Appendix for definitions, including underlying, used throughout this presentation


Earnings Per Share Growth

7.0

6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0

2.9% (4.7)% 18.4%

5.48

pen

ce

H1 2007 FX Translation FX Transaction Growth H1 2008

13.7% excluding FSTA project costs

FSTA Project

0.30

0.26

6.69

19.2% at constant translation exchange

5.5%

1.01

0.16


Cash Flow and Dividends

Full Year 2007 £m

UnauditedH1 2007

£m

UnauditedH1 2008

£m

Growth

193.0

156.6

81.1%

133.9

77.0

4.50p

Trading Profit (ex. JV) 81.6 103.0 26.2%

Operating Cash Flow 61.3 119.8 95.4%

Operating Cash Conversion

75.1% 116.3% 41.2pts

Free Cash Flow from Business

46.7 94.0 101.3%

Increase in Net Cash (increase in net debt)

57.7 (249.7)

Dividend Per Share 1.22p 1.345p 10%

Net debt £172m. Proforma net debt £384m


Revenue and Profit

Revenue Trading Profit

£m

UnauditedH1 2007restated

Unaudited H1 2008 Growth


Unaudited H1 2008

Growth

76.9 94.9 23.4%

9.1 9.7 6.6%

Technology Divisions 400.3 525.9 31.4%

Cobham Aviation Services

94.5 107.3 13.5%

Cobham Group 493.8 632.3 28.0% 83.4 106.5 27.7%

Margin 16.9% 16.8%

Margin 9.6% 9.0%

Margin 19.2% 18.0%

Operating Divisions 494.8 633.2 28.0% 86.0 104.6 21.6%

Head Office and OtherFSTA Project Costs

(1.0)-

(0.9)-

(1.1)(1.5)

(1.4)3.3


Technology Divisions Revenue Growth

550

450

350

250

200

3.1% 15.3%(1.0)%

400.3

525.9

4.3

£m

H1 2007 FX Translation

FX Transaction

Growth H1 2008Acquisitions

14.0%

61.4

14.3% Organic Growth

56.0

12.5


Technology Divisions Organic Revenue Growth

750

500

2005 2006 2007

£m

Technology Divisions

13.2%

5.8%

2 Year CAGR 9.5%

300

100

2005 2006 2007

£m

17.5%9.6%

Avionics and Surveillance

2 Year CAGR 13.7%

300

100

2005 2006 2007

£m

8.4%17.1%

Defence Systems

2 Year CAGR 12.7%

300

100

2005 2006 2007

£m

13.9%(7.2)%

Mission Systems

2 Year CAGR 2.7%

H1 2008

250

14.3%

200

H1 2008

9.2%

200

H1 2008

13.2%

200

H1 2008

21.8%

H1 H2


Technology Divisions Revenue and Profit

Revenue Trading Profit

£mUnauditedH1 2007restated

Unaudited H1 2008

OrganicGrowth


Unaudited H1 2008


156.1 198.9 9.2% 26.7 31.5

Defence Systems 138.8 196.6 13.2% 31.8 41.0

Mission Systems 113.3 138.7 21.8% 18.4 22.2

Technology Divisions

400.3 525.9 14.3% 76.9 94.9

Margin 19.2% 18.0%

Margin 16.2% 16.0%

Margin 22.9% 20.9%

Margin 17.1% 15.8%

Note: Inter company eliminations not shown


Group Revenue Analysis

GeographySector

AviationServices 17%(2007: 20%)

Other Communications 15%(2007: 14%)

Non US Military/

Govt 16%(2007: 17%)

Commercial/GAAerospace 13%

(2007: 14%)

US Military/Govt 39%(2007: 35%)

USA 51%(2007: 47%)

RoW 10%(2007: 11%)

UK 11%(2007: 13%)

Australia 11%(2007: 12%)

Mainland Europe 17%(2007: 17%)

Sector Growth

National Security

National Security

Aviation Services

Other Communications

Non US Military/Govt/ National Security

Commercial/GA Aerospace

US Military/Govt/ NationalSecurity

%

22%

9%

9%

11%

5%

2008OrganicGrowth100%

80

60

40

20

0


Acquisitions

Company Division Activity Location Value

H1

2

00

8

S-TEC (January)

Sensor & Antenna Systems Lansdale(February)

MMI Research (April)

SPARTA(June)

M/A-COM(closing pending)


Defence Systems


Defence Systems

Defence Systems

Fixed wing autopilots

Electronic warfare technology and subsystems

Specialist cellular communications for intelligence

Intelligence, scientific, systems engineering and technical assistance services

RF, Microwave components & sub systems

USA

USA

UK

USA

USA

$38m

$240m

£13m + £3m

contingent

$372m+ $35m

deferred

$425m

Integration is on or ahead of plan

H2


H1 Financial Highlights

Strong growth in order intake and revenue

Good momentum in earnings growth

Excellent progress with acquisitions

Robust cash and balance sheet

Encouraging outlook


Market Update

We operate in three home markets – Europe, USA and Australia

Higher growth markets such as USA, India and the Middle East will play a more critical role in our growth

USA

Strong growth likely to continue for the next two years

Investment account spending has been strong but will be under pressure from 2009

Emphasis on “smart” equipment based on improved capability

DoD spending will focus on the following technologies and capabilities:

Mission Support

Sensor Technologies

Communications

Intelligence/Software

India

Continued strong economic growth

Increased modernisation spending on defence and security – air, land and sea

Rapidly developing infrastructure

Large pool of well educated, flexible and skilled talent

Strong links with UK and now USA

Middle East

Saudi Arabia, UAE and Kuwait spend up to 12% of GDP on defence (up to $68bn)

Biggest opportunity is with OEM sales – Typhoon, LUV and UAVs

Cobham business will grow to over $200m by 2013


2008 Update

Reach Agreement to Purchase M/A-COM

Awarded FSTA Air to Air Refuelling Contracts Worth US$300m

Acquire MMI Research – cellular communications for intelligence services

Cobham Enters FTSE 100

Cobham Equipment Selected for USAF Tanker Programme (under review by Pentagon)

Complete Purchase of EW subsystem specialist Sensor & Antenna Systems, Lansdale

Agree to Purchase SPARTA - US Intelligence And Missile Defence Company

3Jan

Complete Purchase of auto pilot specialist S-TEC

US$40m LBT Transmitter production order for Sensor & Antenna Systems, Lansdale

16Jan

25Feb

29Feb

26Mar

ch

27Mar

ch

7Apr

il

13May

Complete purchase of SPARTA4Jun

e

16July


Driving Growth

The most important thing we build is trust

Strategic Objectives

1 Be a leading subsystems supplier with a comprehensive range of distinctive technologies2 To be in the top three in each of our chosen markets

Grow faster organically than the markets in which we operate3Materially enhance growth through strategic acquisitions4

5 Develop a global market presence with a unified brand and identity

6 Have an efficient organisation with a high performance cultureand motivated people


‘Cobham cockpit’ developed through PV development and acquisition

Subsystems Example: TH-57 Helicopter

Primary Flight Display

Multi Function Display

Audio Controller

CommunicationRadios

Tactical Transceiver

Transponder

ADF

Navigation Radio

ELT

Autopilot

Multi FunctionDisplay

Engine DisplayData Concentrator

Primary FlightDisplay

Developed

Developed/ Acquired

Be a Leading Subsystems Supplier With a Comprehensive Range of Distinctive Technologies1


Be a Leading Subsystems Supplier With a Comprehensive Range of Distinctive Technologies1

Radio and Audio Integrated Management System (RAIMS)

Three radio and audio integrated controllers (RMP) and two AudioManagement Units (AMU) perform the audio digital processing

Enables crew management of voice and data tuning for radio communication, radio navigation, SATCOM dialing, surveillance system, router and datalink functions

RAIMS reduces pilot workload, weight, power consumption and life cycle costs and is factory fitted on the A380

Radio and audio Management Panel (RMP)

CMS

RMP1 RMP3

ACP1 ACP2

ACP3

AMU1 AMU2

RAIMS

FMSRAD NAVRAD COM

DLCSSATCOM ACR

ATC D/L

AESS

AESSCVRSATCOM

RAD NAVRAD COM CIDS

FWS

RMP2

CMS

RMP1 RMP3

ACP1 ACP2

ACP3

AMU1 AMU2

RAIMS

FMSRAD NAVRAD COM

DLCSSATCOM ACR

ATC D/L

AESS

AESSCVRSATCOM

RAD NAVRAD COM CIDS

FWS

RMP2


SAS Lansdale,SPARTA

To Be in the Top 3 in Each of Our Chosen Markets2

High

LowBuilding Scale In Top 3

VehicleCommunications

AirRefuelling

C4ISR*

SATCOM

AvionicsLENS

Auxiliary Mission

Equipment

Aviation Services

Size of bubble represents Cobham revenue * Radar, EW, ISR, Missiles, CNI

Mark

et

Gro

wth

Life Support

Avionics & Surveillance

MissionSystems

DefenceSystems

MMIResearch A380

RAIMS


F-35 US$950k per aircraft

Materially Enhance Growth Through Strategic Acquisitions4

LIFE SUPPORTInfra-red countermeasure cryogenic cooling systemNitrogen monitor

DEFENCE SYSTEMS(Subsystems, IMAs & Filters)

Active Electronically Scanned Array(AESA) RadarElectronic Warfare SubsystemsCommunication, Navigation & Information (CNI)Composites

MISSION EQUIPMENTRefuelling probePneumatic bomb release actuator and pressure vessels

REMEC

SPARTAM/A-COMF-35 Ship Set Value

0

250

500

750

1000

2005 2006 2007 2008

$k


Major Efficiency Improvements Physical integration of S-TEC and CFS into one Avionics Controls operating unitIntegration of Wulfsberg and NAT into one Avionics Communications operating unitFull utilisation of Marlow as the centre of excellence for Antennas in EuropeLife Support SBU integrated into 3 centres of excellence – from 5

Further integration and efficiency improvements are in various stages of implementation, including the Wimborne site

Capability ImprovementsWashington Office now fully functionalNew Delhi office operationalCorporate staff functions strengthened

Leadership & Talent DevelopmentExecutive Development programmeSenior Development ProgrammeDivisional High PotentialGraduate and apprenticeship training programme

6 Have an Efficient Organisation with a High Performance Culture and Motivated People

Best predictor of overall company excellence is the ability to attract, motivate and retain talented people


Summary and Outlook

Implementation of growth strategy is delivering results

Record order book gives high level of visibility for the future

Distinctive technologies and capabilities providing momentum

Strong positions in robust and buoyant markets

Capability across the Group has improved

Acquisition integration on/ahead of plan

Robust balance sheet for further investment

Confident of achieving our growth targets in 2008


Appendices

IR calendar

Programme positions & ship set values

Cash flow

Exceptional profits from portfolio restructuring

Shareholder returns

Revenue growth

Hedging and US$/£ translation exchange rates

US defence budget outlook

M/A-COM overview

Definitions & glossary

Cautionary statement


IR Calendar

Site Tours/Investor Days

AUSA (Washington)

NBAA (Atlanta)

Aero India

Paris

2008 2009

JulJunMayAprMarFebJanDecNovOctSepAug

Major Shows

Investor Day, London

SPARTA site visit, USA

57

Announcements/AGM

6-8

Interims Prelims

30

5

InterimManagementStatement

6-8

15-21

11-15

Aug Sep Oct

13(TBC)

AGM

7

Interims

6


Ship Set Values

Programme / Platform

Cobham Avionics &

Surveillance

Cobham DefenceSystems

Cobham Mission Systems

Cobham Aviation Services

2006

2008

2010

2012

SHIP

SET

VA

LUE

F15 X X X X X X $600kF16 X X X X X X $1,400kF/A 18 E/F/G X X X X X X $1,000kF22 X X X X X X $1,200kF35 X X X X X $950kEurofighter Typhoon X X X X X X X $1,050kHawk X X X X X X $275kT50 X X X X X X $190kGripen X X X X X X $760kRivet Joint X X X $4,350kC17 X X X X X X $600kC130 / KC130 X X X X X X $3,300kKC135 X X X X X X $2,960kC-160 X X X X X $420kASTOR Sentinel R X X X X X $520kB2 X X X X X $1,360kP3/EP-3E X X X X X $1,150kPredator X X X X X $300kGlobal Hawk X X X X X $2,030kEH101 / VH71 X X X X X $1,200kUH60 X X X X X X $1,000kNH90 X X X X X X $210kMD902 X X X X $200kEC120 X X X X X $190kEC135 X X X X X $250kEC155 X X X X X $375kTH 57 X X X X $330kALH X X X X X X $360kLynx X X X X X $240kApache X X X X X $180kV22 X X X X X X $540kA380 X X X X X $220kB787 X X X X $150kType 45 Destroyer X X X X X X $300kAegis DPYIDV X X X X X $2,200kLight Vehicle X X X X X X $10kAmoured Fighting Vehicle X X X X X X $20kTanks X X X X X $50k

Military Fast Jet / Trainers

Medium / Large Military

Land

UAV

Rotary

Commercial

Naval


Military Aerospace –Selected Programme Positions

Programme Timing Estimated Cobham Value

Products

Eurofighter Typhoon to 2013 £200m-£300m Antennas, Radomes, Life Support Equipment Aux Mission Equipment

Gripen to 2014 £75m-£95m Antennas, Avionics, Aux Mission Equipment

A400M to 2017 £50m - £160m Antennas, Air Refuelling Pods, Avionics

C27-J Transport 2008- 2012 £30m-£40m Antennas, Life Support Equipment

F-35 to 2017 $1.9bn-$2.2bn Refuelling Probe, Life Support Equipment, Avionics

F-18E/F&G to 2012 $50m-$65m Antennas, Avionics, Fuel Tanks, Wing Pods

F-22 to 2017 $170m-$190m Communications & Life Support Equipment, External Fuel Tanks

Global Hawk to 2017 $200m-$400m Antennas, Avionics Equipment

TH-57/67 Trainer Helicopter 2008- 2013 $50m-$100m Antennas, Avionics Equipment

Opportunity

KC-X Tanker 2009- 2019 Up to $1bn Antennas, Air Refuelling Pods, Avionics, Body Fuel Tanks

Value of selected programmes £1.7bn to £3bn


Military Land – Selected ProgrammePositions

Value of selected programmes £310m to £660m

Programme Timing Estimated Cobham value

Products

MRAP to 2010 $70m-$210m Vehicle Intercom, Life Support Equipment

HMMWV to 2014 $300m-$600m Vehicle Intercom, Antennas, Life Support Equipment

Stryker to 2012 $6m-$75m Life Support Equipment, mINCAN

Integrated Digital Soldier System

to 2017 $100m-$130m Communications Equipment

COM-201/231 Antenna to 2012 $150m-$300m Antennas

Opportunity

Vehicle Intercom 2009- 2019 Up to $1.5bn Communication Equipment


Civil Aviation & Marine – Selected Opportunities

Value of selected programmes £790m to £1.9bn

Programme Timing Estimated Cobham value

Products

Boeing 787 to 2027 $40m-$150m Antennas, Life Support Equipment

Airbus A380 to 2027 $38m-$350m Antennas, Life Support Equipment, Avionics

Eclipse VLJ to 2017 $40m-$150m Antennas, Avionics

Eurocopter (Civil) $70m-$110m Antennas, Avionics

Agusta/ AgustaWestland

to 2017 $100m-$200m Antennas, Avionics

Marine SOTM to 2017 $500m-$1bn Antennas

Opportunity

Robinson to 2017 Not disclosed Avionics


Audited Year to 31/12/07

UnauditedHalf Year to 30/06/2007

UnauditedHalf Year to

30/06/08Growth

£m £m193.0 Trading Profit (ex. JV) 81.6 103.0 26.2 %(25.4) Movements in working capital (19.3) 13.5

(2.2) Movements in provisions (1.3) 7.6

33.8 Depreciation and other non-cash adjustments 16.2 18.9

(42.6) Capital expenditure (15.9) (23.2)156.6 Operating cash flow 61.3 119.8 95.4 %

81.1 % Operating cash flow/Trading Profit 75.1 % 116.3 % 41.2 pts1.1 Net Interest 0.4 2.1

3.2 Dividends received from JVs 1.6 6.9

(23.3) Tax (13.9) (33.7)

(3.7) Restructuring Costs (2.7) (1.1)133.9 Free cash flow 46.7 94.0 101.3 %(43.8) Dividends paid - -90.1 Net cash flow from business 46.7 94.0

(17.7) Net acquisition costs (0.1) (343.5)

4.7 Proceeds from issue of shares 3.5 2.8

(0.1) FX 7.6 (3.0)77.0 Increase in Net Cash / (Increase in Net Debt) 57.7 (249.7)

Cash Flow

Net debt £171.8m at 30/06/08


Exceptional Profits from Portfolio Restructuring

Available to invest on further exceptional restructuring £12.3m

Restructuring in 2008Wimborne Site Restructuring £(1.6m)North American Restructuring £(1.0m)Adjustment to profit on divestment FR Hi-Temp £2.5m £(0.1m)

£5.6m£14.5m£(7.7m)

£12.4m

Exceptional Profits on Disposals200520062007


Shareholder Returns

Audited Year to 31/12/07


30/06/07


30/06/08 Growth

28.8%

13.09p

11.61p

11.55p

4.50p

11.81p

Underlying Tax Rate 28.0% 29.5%

Earnings Per Share

Underlying 5.48 p 6.69p 22.1%

Basic 4.43 p 5.49p

Fully Diluted 4.40 p 5.46p

Dividend Per Share

1.22 p 1.345p 10%

Free Cash Flow Per Share

4.12 p 8.27p 100.7%


Group Revenue Growth

650

400

350

0.0

632.3

12.5% OrganicGrowth

2007 H1 Acquisitions Growth 2008 H1

66.0

£m

Disposals

600

550

500

450

300FX

TransactionsFX

Translation

4.2% 11.3% 0.0% (0.9)% 13.4%

493.820.8

56.0 4.3


Group Trading Profit Growth

100

40

2.3

106.5

17.1% Organic Growth

6.5

2007 H1 Growth 2008 H1

13.8

£m

0.0

Acquisitions

60

20FX

TransactionsFX

Translation

2.8% 7.8% (5.2)% 16.5%

Disposals

0.0%

83.4

80

4.8

FSTA Project

5.8%

4.3


Aviation Services Revenue Growth

125

100

75

107.3

2007 H1 Acquisitions Growth 2008 H1

4.8% OrganicGrowth

£m

50 FX Transactions

FXTranslation

8.7% 4.8%

94.5

8.2

4.6


Hedging

Other Antennas companies

Cobham Defence Communications

Total

2008

Flight Refuelling

2010 to 2014

$20m

$5m

$110m

$187m

2008 Exposure:

Hedging in place:

$184m

$79m

Historic averageeffective rate

2004 $1.59 : £12005 $1.70 : £1*2006 $1.77 : £1 2007 $1.83 : £1

98% hedged for 2008

Avg hedge rate $1.93 : £1


*Excludes FR-HiTEMP. Dollar/Euro exposure predominantly hedged for 2008 with $52m @ 1.44 In 2009, $26m hedged at $1.54:£1

Avionics and Surveillance $7m

Chelton

FR Aviation

$47m

$51m

2009

-$2m


Estimated average effective rate

2008 $1.93 : £12009 $1.92 : £1


US$/£ Translation Exchange Rates

2007 2008

FullYear

Opening Half Year Half Year

Income Statement(average rate) 2.00 n/a 1.97 1.98

Balance Sheet(closing rate) 1.99 1.96 2.01 1.98

[£0.4m PBT translation impact for every 1 cent movement ]


US DoD Total Investment Spending

Source: Credit Suisse


M/A-COM Overview

PRODUCTS

A&D Components - Amplifiers,Mixers, Switches

A&D Microwave Subsystems

Signal Intelligence - BroadbandMicrowave Receivers and Peripherals

Antenna & RF Cable Assemblies

GaAs, SiGe MMICsSi, GaAs and Laser Diodes

Silicon Power Transistorsand Assemblies

Missile, Electronic Warfare ("EW"),Radar, Communications, Space

Missile, Guided Munitions, EW, Radar, Force ProtectionSpace

Electronic Intelligence

Missile, Guided Munitions, EW, Radar, Communications,Launch Vehicles

FerritesSynthesizersPassive Components

GPS and Satellite RadioAntennas

RFID Portals, RF Subsystems,Antennas, Components

Broadband, CATV, Cellular Infrastructure,Defense, Point-to-Point Radio, WiMAX

Avionics, Radar, Broadcast, Industrial,Medical

Cellular Infrastructure, WiMAX

Automotive, GPS and Satellite Radio

Retail Supply Chain Management andPromotion, Industrial Asset-Tracking andReal-Time Location

ADS

CPS

CPS

CPS

CPS

CPS

SEGMENT MAJOR MARKETS / APPLICATIONS

A&D Components and Subsystems

Semiconductors

Infrastructure Components

Automotive Antennas

RFID

Semi-based Components


Aerospace and Defence Solutions (ADS) Capabilities

SIGNAL INTELLIGENCEANTENNA & CABLE ASSEMBLIES

COMPONENTS

Product Lifecycle: 5 -10 years

-

SUBSYSTEMS

Product Lifecycle: 2 – 20 years

• High-performance, highly-integrated subsystems for missiles (guidance and fusing) and EW (receivers and transmitters)

• Affordable T/R (Transmit/Receive) modules for phased array radar

• Subsystems and systems for Force Protection applications

• Subsystems for Space applications

• Receivers for ELINT– 500-MHz to 20-GHz search receivers– Collection and analysis receivers– 20 to 60-GHz frequency extenders

• Peripherals– Controls and displays– Frequency converters

Product Lifecycle: 3 – 20 years


Definitions

Underlying To assist with the understanding of earnings trends, the Group has included within its published statements trading profit and underlying earnings results. Trading profit and underlying earnings have been defined to exclude the impacts of the amortisation of intangible assets recognised on acquisition, fair value adjustments to inventory on acquisition, the marking to market of currency instruments not realised in the period and impairments of goodwill. There has been no impairment to goodwill in the current or comparative periods. Trading profit and underlying earnings also exclude portfolio restructuring costs, which comprise exceptional profits or losses arising on disposals actually completed during the period, as well as exceptional costs or profits associated with the restructuring of the Group’s business and site integration. Trading profit and underlying earnings also exclude direct costs associated with exceptional terminated acquisitions.

Underlying Tax Rate The underlying tax rate is based on underlying profit before tax, excluding the share of post tax income from joint ventures.

Free Cash Flow Free cash flow is cash generated by the business before movements in funding and FX, acquisitions and disposals and dividends to shareholders

Free Cash Flow per share

Operating Cash Flow

OperatingCash conversion

Organic growth

PV Investment

Defined as free cash flow/average number of shares in issue

Operating cash flow is defined as cash generated from operations, adjusted for cash flows from the purchase or disposal of fixed assets. Operating cash conversion is defined as operating cash flow as a percentage of trading profit, excluding profit from joint ventures.

Operating cash conversion is defined as operating cash flow as a percentage of trading profit, excluding profit from joint ventures.

Organic growth represents the growth of the business for the period that it was within the Group’s control, translated at constant exchange rate. Results related to the period where the business was not owned in the prior period are shown as ‘acquisition’ contributions. Within Cobham Aviation Services further adjustment has been made for the loss in 2006 of Qantas ‘pass through’lease revenue, as Qantas has introduced its own aircraft for Cobham to operate. The loss of this revenue has no impact on profit.

Company funded R&D expenditure as a percentage of technology division revenues


Glossary

AESA Active Electronically Scanned Array

ACR Avionics Communication Router

ADF Automatic Direction FinderAMU Audio Management UnitATC D/L Air Traffic Control DatalinkCNI Communication, Navigation

and InformationCIDS Cabin Intercommunication

Data system CMS Centralised Maintenance

SystemCVR Cockpit Voice RecorderDLCS Data Loading and

Configuration SystemGA General AviationELT Emergency Locator

TransponderESS Aircraft Environment

Surveillance System EW Electronic Warfare

FSTA Future Strategic Tanker Aircraft

FWS Flight Warning SystemHMMWV High-Mobility Multipurpose

Wheeled Vehicle IMA Integrated Microwave CircuitISR Intelligence, Surveillance,

ReconnaissanceJWARS Joint Water Activated

Release SystemLBT Low Band TransmitterLUV Light Utility VehicleOBOGS On Board Oxygen Generating

SystemPV Private Venture (Company

funded research & development)RMP Radio and Audio Management

PanelSATCOM Satellite CommunicationSBU Strategic Business UnitUAV Uninhabited Aerial VehicleVIS Vehicle Intercom System


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 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.

Cautionary statement

Summary Profit and Loss AccountEarnings Per Share GrowthCash Flow and DividendsRevenue and ProfitTechnology Divisions Revenue GrowthTechnology Divisions Revenue and ProfitGroup Revenue AnalysisAcquisitionsH1 Financial HighlightsMarket Update2008 UpdateDriving GrowthTo Be in the Top 3 in Each of Our Chosen MarketsMaterially Enhance Growth Through Strategic AcquisitionsHave an Efficient Organisation with a High Performance Culture and Motivated PeopleSummary and OutlookAppendicesIR CalendarShip Set ValuesMilitary Aerospace –�Selected Programme PositionsMilitary Land – Selected Programme PositionsCivil Aviation & Marine – Selected OpportunitiesCash FlowExceptional Profits from Portfolio RestructuringShareholder ReturnsGroup Revenue GrowthGroup Trading Profit GrowthAviation Services Revenue GrowthHedging US$/£ Translation Exchange RatesUS DoD Total Investment SpendingM/A-COM OverviewAerospace and Defence Solutions (ADS) CapabilitiesDefinitionsGlossary

7 august 2008 - cobhaminterim results 2008 2 summary profit and loss account full year 2007 £m...

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