The most important thing we build is trust

2010 Preliminary Results

3 March 2011

Cobham plc1

Agenda

• Introduction Andy StevensChief Executive Officer

• Financial Results Warren TuckerChief Financial Officer

• Business Review Andy Stevens

• Q&A

Cobham plc2

Summary Profit and Loss Account

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

Order book £2.5bn – order intake up 7% at constant translation exchange in technology divisions

Year to31/12/09

Year to31/12/10 Growth

£m £m

Revenue 1,880.4 1,902.6 1.2%

Trading Profit 337.0 348.4 3.4%

Trading Margin 17.9% 18.3% 0.4pts

Underlying Profit before Taxation 295.3 306.1 3.7%

Underlying Earnings Per Share 18.80p 19.68p 4.7%

PV Spend % 5.3% 4.5% (0.8)pts

Cobham plc

Underlying Earnings Per Share Growth

3

18.80

19.68

17.0

17.5

18.0

18.5

19.0

19.5

20.0

2009 FX Translation Growth FXTransaction

Other margin effects

Interest, tax & other

2010

penc

e

(1.1)% 1.3%

3.8% at constant translation exchange

0.9% 2.4% 1.2% 4.7%

Cobham plc4

Cash Flow

Net Debt £326.1m, Net Debt:EBITDA 0.8x

Year to31/12/09

Year to31/12/10 Growth

£m £m

Trading Profit (ex. JV) 330.9 342.4 3.5%

Operating Cash Flow 293.2 271.4 (7.4%)

Operating Cash conversion 88.6% 79.3% (9.3)pts

Free Cash Flow from Business 221.4 218.6 (1.3%)

Decrease in Net Debt 228.7 86.5

Dividend per Share 5.45p 6.00p 10.1%

Cobham plc5

Technology Divisions’ Revenue Growth

CDS: Cobham Defence Systems, CAS: Cobham Avionics and Surveillance, CMS: Cobham Mission Systems

2 0

(1.6)% (1.2)%

CDS CDS

CAS CAS

CMSCMS

1,654 1,630

0

500

1,000

1,500

2,000

2009 FX Translation Net Acquisitions Defence/Security

Commercial/Other

2010

£m

(1.6)% Organic Growth

Cobham plc6

Technology Divisions’ Organic Revenue Growth Cycle Over the Medium Term

Excludes FX, Acquisitions and Disposals. 2005, 2006, 2007, 2008 and 2009 are proforma numbers for illustration purposes

5 Year Full Year CAGR 5.5%

0

500

1,000

1,500

2,000

2005 2006 2007 2008 2009 2010

£m

Commercial/Other

Defence& Security

13.2%

10.3% 0.6% (1.6)%

(1.6)%

(1.2)%(16)%

7%

5.8%

Cobham plc7

Cobham Avionics and Surveillance

• Continued strong demand for wireless video link products and hand-held ‘MINEHOUND’ mine detector

• Increased deliveries to Airbus of long range SATCOM antennas and successful flight test on the Boeing 787 and the Airbus A400M aircraft

• Selection to provide the complete avionics suite for the new SK105 Skylander commuter aircraft and first orders for new helicopter autopilot and stability augmentation system

• Selected to partner with Rockwell Collins to provide the passenger address system on the new C919 Chinese single aisle aircraft

Excludes FX, Acquisitions and Disposals. Prior year are pro forma numbers for illustration purposes

Cobham plc8

Cobham Mission Systems

Excludes FX, Acquisitions and Disposals. Prior year are pro forma numbers for illustration purposes

• Shipments of fifth generation refuelling equipment for Australian, UK, Saudi Arabian and UAE air forces and UK FSTA

• An initial order for the new Vehicle Active Gunner’s Restraint System for Stryker armoured fighting vehicle

• £18m order for the supply of Ejector Release Units and Carrier Bomb Light Stores for 57 Hawk trainer aircraft to India

• Award by the US Air Force of the base year of a five year agreement, with a total estimated value of US$50m, for crew- breathing oxygen regulator overhaul kits

• Transfer to the new Wimborne, UK facility completed

Cobham plc9

Cobham Defence Systems

Excludes FX, Acquisitions and Disposals. Prior year are pro forma numbers for illustration purposes

• Further orders and deliveries of electronic warfare equipment to disrupt enemy radar and communications

• Awarded an IDIQ contract worth up to $1.6bn to provide advisory and assistance services to the Missile Defense Agency

• A multi-million pound, long-term agreement to provide a suite of antennas for the indigenous Korean Utility Helicopter

• US$40m deal to provide major radio frequency and microwave components for Aegis surveillance and fire control radar

• Receipt of a delayed US$21m contract to provide vehicle intercom systems and Eagle radios to a Middle East customer

Cobham plc10

Cobham Aviation Services

Excludes FX, Acquisitions and Disposals. Prior year are pro forma numbers for illustration purposes

• Flying hours on the Australian Sentinel programme remaining at close to 100% with the Surveillance Information Management System successfully brought into service

• Two new aircraft brought into service in for resource industry and air freight contracts

• Modification and systems integration of four B350 aircraft under the MFTS Royal Navy rear crew training contract

• 30 strong team of engineers in Madrid working on aircraft modifications for the first two A330s for the UK FSTA programme

• Contracts worth some £12m to upgrade and support key air traffic control systems and operations for the UK MoD

Cobham plc

Excellence in Delivery Programme is on Track

• The Excellence in Delivery programme is about transforming our operations to provide better customer delivery and improved efficiency

• The programme is on track

• In 2010 we delivered cost savings of over £10m including Excellence in Delivery

• By the end of 2013, Excellence in Delivery run rate savings remain at £65m per annum, for a total implementation cost of £131m

• Excellence in Delivery is pivotal to our future growth

11

Cobham plc12

• Revenue momentum has been impacted by programme delays and US Government Continuing Resolution, but the cycles in commercial business and Mission Systems have turned positive

• Cost control has delivered earnings per share growth

• Cash generation remains strong

• We continue to invest: Excellence in Delivery, technologies and portfolio optimisation

• We are prudently configured with further cost savings in 2011, against the backdrop of the Continuing Resolution in the US

Financial Highlights

Cobham plc13

Agenda

• Introduction Andy StevensChief Executive Officer

• Financial Results Warren TuckerChief Financial Officer

• Business Review Andy Stevens

• Q&A

Cobham plc

Moved the Business Forward Despite 2010 Being a Challenging Year for Top Line Growth

• Good performance in some businesses – Some order slippage and continuing softness in certain commercial markets, albeit

that is now improving

• Improved order intake in all three Technology Divisions– Aggregate 7% increase in orders received and Group order book increase to

£2.5bn

• Generated further cost efficiencies– Excellence in Delivery, procurement savings and prior year integrations

14

Cobham plc

Focused on Bringing New Innovative Technology to the Market

• Continued focus on PV and new product development – Focused on generating a good return in the current environment

• Selected on new programmes/platforms, winning positions in faster growing geographies

– Chinese C919, Skylander 105, US Missile Defence Agency Support Services (MiDAESS), Indian Air Force Hawk, Korean light utility helicopter

• Growing content on important existing platforms• CH-53K helicopter, Aegis surveillance and fire control radar system, F-35, F-18,

A350

• Completed three acquisitions in homeland security markets for US$175m• Further strengthening technology and routes to market

15

Strengthening technology through targeted PV investment and acquisitions

Cobham plc

Our Strategy

Focus on Defence, Security & Commercial markets

Sell technically differentiated products & services

Build sustainable scale positions

Actively manage the portfolio

• Maintain an appropriately focused portfolio on the defence, security and commercial markets, such that we can add value and manage risk across the portfolio

• Sell technically differentiated products and services that meet customer’s needs in markets that have attractive characteristics, and in which we can maintain a sustainable competitive advantage

• Continue to provide core Tier 3 capabilities and selectively offer Tier 2 to meet customer needs

• Develop and maintain top 3 positions in our markets• Build or maintain scale positions in these markets to ensure we have the necessary scale to

support investment, maintain market leadership and deliver long term business growth

• Actively manage the portfolio, exiting businesses that do not fit with our strategy• Acquire businesses that build scale, allow us to exploit our existing capabilities in adjacent

segments or deliver distinctive technologies or capabilities to accelerate our organic growth

Deliver operational excellence

• Achieve Excellence In Delivery for our customers, capturing cost synergies through simplifying and standardising processes, integrating operations and building operational capabilities

• Invest in our talent

1

2

3

4

5

16

Making good progress against the strategy

Cobham plc

Focus on Defence, Security & Commercial Markets

• Revenue by destination & market sector remain stable - 61% USA, 77% defence & security

• Getting positions on contracts for US government agencies, e.g. US$1.6bn MiDAESS contract and large homeland security agency contracts

• Coordinating cross business programme pursuits through offices in Washington DC & India

• Driving aftermarket business which now accounts for 15% of technology division revenue

US Defence / Security

53%(2009: 55%)

Non US Defence / Security

15%(2009: 14%)

Commercial/GA9%

(2009: 9%)

Other Communication

9%(2009: 10%)

Aviation Services

14%(2009: 12%)

1

USA 61%(2009: 62%)

Other EU countries

12%(2009: 12%)

Australia 10%(2009: 8%)

UK 9%(2009: 9%)

RoW 8%(2009: 9%)

17

Cobham plc

Sell Technically Differentiated Products & Services

18

• Successful trials of 5th generation AAR refuelling pods being offered into US$35bn US tanker programme & Global Hawk development contract

• Launch of fully portable & networked unattended ground sensor for covert surveillance

• Demonstration of 100 user radio system for DARPA’s Wireless Network after Next

• Cobham’s lightest, smallest and lowest cost SwiftBroadband solution already sold to 23 airlines – positioned on all new major air transport aircraft with upgrade opportunities

• Developing US Army Multi-spectral Sea and Land Target Simulator worth up to US$56m

2

Cobham plc

Build Sustainable Scale Positions

19

• Defence Communications business integrated with Surveillance in CAS division to focus on growing Integrated Force Protection market

• Antenna Systems integrated with SATCOM in CAS division to leverage cross selling

• Personal locator beacon & emergency locator transmitter product lines combined

• Mission Systems & Aviation Services management combined, bringing together major projects & systems engineering

3

Defence Communications 

Antenna Systems

Avionics and Surveillance

Beacons

Defence Systems Mission Systems Aviation Services

Aerospace and SecurityDefence Systems Mission Systems Aviation Services

£666m £647m £594m

£273m

Intercompany eliminations not shown

Cobham plc

Deliver Operational Excellence

20

4

Location of 14 principal manufacturing locations

• The Excellence in Delivery programme is about transforming our operations to provide better customer delivery and improved efficiency

• 14 principal locations announced which will account for 80% of manufacturing profit

• Announced closure of nine facilities supporting 2011 saving of £21m

• Investing in people, processes, tools & facilities

Cobham plc

Actively Manage the Portfolio

21

• Intend to divest businesses & product lines representing up to 15% technology division revenue

• Proceeds to date of £29m

• Completed three acquisitions in homeland security markets for US$175m

Corp Ten tracking and surveillance devices - micro-sized satellite modem

Telerob advanced bomb disposal robots and threat response vehicles

Rvision advance electo-optical and infrared imaging systems

5

Cobham plc22

Defence, Security and Commercial Markets

Well positioned in faster growing market segments

Mar

ket

size

US$

bn

310

19

60

0

50

100

150

200

250

300

350

400

450

Defence

83

42

43

0

50

100

150

200

250

300

350

400

450

Security

88

43

0

50

100

150

200

250

300

350

400

450

Commercial

US

UKROW

US

EuropeROW

OE

Aftermarket

Growth outlook: ~2% CAGRVariation by programme (e.g., JSF)

Growth outlook: ~7% CAGRVariation by country & sub-segment

Growth outlook: ~4% CAGRVariation by platform (e.g., 787)

~$390bn

~$170bn~$130bn

Sources: i. U.S. DoD budget data: comprised of FY2005-FY2011

Department of Defense budget plans ii. International spending figures: Stockholm

International Peace Research Institute (SIPRI), World Monetary Fund

Sources: i. U.S. Government : 2011 U.S. Office Of Management And

Budget Report – Analytical Perspectives, Budget Of The U.S. Government

ii. Third Party Research: Homeland Security Research Corporation, Society General via Cross Asset Research, Morgan

Keagan, Frost and Sullivan, International Biometric Group iii. Publically available information from company annual reports:

L-1 identity solutions, Smiths Detection

Sources: i. OEM platform sales revenue: (Boeing, Airbus, Embraer)ii. Third party research: Ascend, Aerostrategy, Forecast

International iii. Multiple News Agencies: (used to track up to date delivery

orders in CSP database)

Cobham plc

HIGHER

LOWERBUILDING SCALE IN TOP 3

CommercialSystems

(Avionics & Beacons)

Aviation Services

MA

RK

ET G

RO

WTH

LifeSupport

Continuing to Strengthen Market Positions and Focus on C4ISR

Defence/SecurityCommercial

Size of bubble represents Cobham revenue

AnalyticSolutions

We are technically diverse, innovative and agile by design because that’s what our customers want

Antenna Systems

Sensor Systems

C4ISR

Mission Equipment

AerospaceComms

TacticalComms &

Surveillance

23

Cobham plc24

Technology in Action Unmanned Ground Systems

Cobham plc25

Summary

• Generated earnings growth from flat Group revenue– Efficiencies of over £10m, including savings from on-track Excellence in Delivery

programme– Configured prudently for 2011 against backdrop of Continuing Resolution

• Making good progress against the strategy– Benefiting from strategic investments in technologies, Excellence in Delivery and

portfolio optimisation– Getting positions on larger contract vehicles in addition to traditional business

• Excellence in Delivery programme will transform and simplify operations– Focused on delivering outstanding service to customers & improving efficiency– It will increase Cobham’s competitiveness

• Positioned to grow faster than our markets in the medium term– Transition to a more C4ISR centric business largely complete

Cobham plc26

• Investor Relations Calendar• Key Performance Indicators• Ship set values• Surveillance and Mesh Network Capability Example• US DoD Investment Spending• Excellence in Delivery• Shareholder returns• Cash flow summary• Revenue and profit• Technology Divisions’ Revenue & Trading Profit • Foreign Exchange Transaction Exposure• US$/£ Exchange Rates• Reconciliation of IFRS to Underlying Result• Restated Segmental Results Half Year Ended 30 June 2010• Restated Segmental Results Full Year to December 2010• Definitions• Glossary• Cautionary Statement

Appendices

Cobham plc27

Investor Relations Calendar

2011 - 2012

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

Announcements

Investor Days

8Preliminary

Results

6AGM

&Interim

ManagementStatement

4InterimResults

14Interim

ManagementStatement

7Wimborne, UK

Site Visit

26AGM

&Interim

ManagementStatement

Cobham plc28

Key Performance Indicators

Year to31/12/06

Year to31/12/07

Year to31/12/08

Year to31/12/09

Year to31/12/10

5 year CAGR

£m £m £m £m £m

Technology Divisions Organic Revenue Growth 5.8% 13.2% 10.3% 0.6% (1.6)% 5.5%

Earnings Per Share Growth (constant translation) 10.7% 15.9% 13.1% 12.5% 3.8% 11.1%

Operating Cash Conversion 84.3% 81.1% 106.1% 88.6% 79.3%

PV Spend % * 5.1% 5.2% 5.3% 5.3% 4.5%

Defence/Security (1.6)%

Commercial (1.2)%

(1.6)%

* PV has been restated on a proforma basis for the impact of Cobham Analytic Solutions

Cobham plc29

Ship Set Values

US tanker valued at US$1bn over the life of the programme

Programme / Platform

Ship Set Values US$k

F16 $800 - $1,100F/A 18 E/F/G $800 - $4,600F22 $1,400F35 $1,200Eurofighter Typhoon $1,500Hawk $600T50 $220Gripen 250-500C17 $600C130 / KC130 $700 - $4,000ASTOR Sentinel R $1,200B2 $1,400Predator/Reaper $500AMRAAM $220AARGM $140PAC3/Patriot $200Global Hawk $2,300EH101 $230Apache $580CH 53K $400MH-60 $500V22 $1,200A380 $220A350 $100B787 $150EDG 1000 $2,600Aegis DPYIDV $2,400Naval

Military Fast Jets / Trainers

Medium / Large Military

UAV / Missiles

Rotary

Commercial

$

Cobham plc30

Increasing Ship Set Value on F-35

Estimated >3,000 aircraft to be produced - Cobham ship set value still increasing

2040

Ship Set Value Aircraft Production

$1,200

$20

$410$500

$700

$950 $1,000

$0

$400

$800

$1,200

$1,600

$2,000

2004

2005

2006

2007

2008

2010

2011

2012

2013

2014

2015

2016

2017

Ship

Set

Val

ue U

S$k

0

50

100

150

200

250

Airc

raft

Some reduction inLRIP

Cobham plc

Surveillance and Mesh Network Capability Example

SOLO Transmitter

SOLO Transmitter

CameraCamera

CameraCamera

Mobile surveillance

Mobile surveillance

CameraCameraCameraCamera

Camera CarCamera Car

CameraCamera

CameraCamera

CameraCamera

Mobile surveillance

Mobile surveillance

SOLO Transmitter

SOLO Transmitter

KeyMesh 1

Mesh 2

SOLO link out

Police command

Police command

Police command

Police command

Cobham plc32

US DoD Investment Spending $Bn

79 78 8498 102 103

68 7276

77 80 79 80

7370 69

105113

124 133 137

756147 150160

175181 183 185 188

197203 207

2005 2006 2007 2008 2009 2010 2011CR 2012E 2013E 2014E 2015E

Procurement RDT&E

Source: FY2010-FY2012 per the FY2012 Department of Defense budget proposal released February 14, 2011. FY2013-FY2015 per the National Defense Budget Estimates (“Green Book”)Note: All years exclude supplementalsNote: Figures represent discretionary outlays expressed in current pricesSource: JP Morgan

2005–2010 CAGR = 4.4%

2011–2015 CAGR = 2.3%

Cobham plc

Why Excellence in Delivery?

• We have been progressively simplifying, standardising and integrating our business since 2005

• We have now demonstrated substantial benefits from our new processes and systems through initial implementation activities across our business

• Excellence in Delivery will deliver a step change in our performance to our customers, making us more responsive and able to fully exploit our scale

• Excellence in Delivery will reduce our operating costs by £65m annually by the end of 2013 for a one off investment of £131m

• This is the next step in our development that we can now take with the capabilities and market positions we have, and one which we would undertake irrespective of the current market conditions

33

Cobham plc

EiD Aims to Take us Further Towards a Simplified, Standardised and Scale Organisation

• Roll out our Standard Operating Framework across a set of principal sites

• Integrate some of our smaller (production) facilities into the principal sites to increase the coverage of our Standard Operating Framework

• Lock down the standard processes with a single standard Cobham Enterprise Resource Planning (ERP) system and capture scale economies and reduce complexity further through implementation of shared services

1

2

3

34

Cobham plc

EiD Will Deliver Significant Benefits Beyond the Immediate Cost Reductions

• EiD will transform our operational performance and will deliver significant non financial benefits:

• World class delivery and quality performance will be an additional differentiator with our customers giving us scope to accelerate revenue growth

• Streamlined processes will reduce product development cycles and reduce time to market providing greater flexibility to meet customer needs

• Improved engineering efficiency will create further capacity for new product development

• Lower costs will allow further pricing opportunities with customers as well as investment funds to support further product development and selling capabilities

• Standardised operating model will enable significantly greater synergy benefits from acquisitions, and lower risk and more rapid integration

• Our profitability will be improved by £65m per year by the end of 2013

35

Cobham plc36

Shareholder Returns

Year to31/12/09

Year to31/12/10 Growth

Underlying Tax Rate 27.8% 26.5%

Earnings Per Share

Underlying 18.80p 19.68p 4.7%

Basic 16.26p 13.27p

Diluted 16.17p 13.20p

Dividend Per Share 5.45p 6.00p 10.1%

Free Cash Flow Per Share 19.38p 19.00p (2.0%)

Cobham plc37

Cash Flow Summary

Year to31/12/09

Year to31/12/10

£m £m

Trading Profit (excluding joint ventures) 330.9 342.4

Depreciation and other movements 47.8 57.9

Decrease/(Increase) in working capital and provisions (8.2) (71.8)

Net Capital expenditure (77.3) (57.1)

Operating cash flow 293.2 271.4

Taxation paid (31.2) (21.6)

Dividends received from JVs 5.2 6.0

Interest (45.8) (37.2)

Free cash flow 221.4 218.6

Dividends paid (58.3) (64.6)

Restructuring costs (7.8) (13.4)

Acquisition payments less disposal proceeds and other related costs (32.2) (5.9)

Settlement of commercial dispute (28.8)

Movements in funding and exchange movements 105.6 (19.4)

Decrease in net debt 228.7 86.5

Net Debt 412.6 326.1

Net Debt : EBITDA 1.0 0.8

Cobham plc38

Revenue and Profit

£mYear to

31/12/09Year to

31/12/10 GrowthYear to

31/12/09Year to

31/12/10 Growth

Technology Divisions 1,653.7 1,630.1 (1.4)% 305.6 310.3 1.5%

Margin 18.5% 19.0%

Cobham Aviation Services 230.9 273.5 18.4% 31.3 36.4 16.3%

Margin 13.6% 13.3%

Operating Divisions 1,879.6 1,902.5 1.2% 336.9 346.7 2.9%

Head Office and Other businesses 0.8 0.1 0.1 1.7

Cobham Group 1,880.4 1,902.6 1.2% 337.0 348.4 3.4%

Margin 17.9% 18.3%

Intercompany eliminations not shown

Revenue Trading Profit

Cobham plc39

Technology Divisions’ Revenue and Trading Profit

£mYear to

31/12/09Year to

31/12/10OrganicGrowth

Year to31/12/09

Year to31/12/10

Cobham Avionics and Surveillance 487.3 447.4 (7.4)% 84.6 72.2

Margin 17.4% 16.1%

Cobham Defence Systems 873.0 859.2 (2.2)% 164.4 169.0

Margin 18.8% 19.7%

Cobham Mission Systems 317.0 344.1 7.8% 56.8 69.2

Margin 17.9% 20.1%

Technology Divisions 1,653.7 1,630.1 (1.6)% 305.6 310.3

Margin 18.5% 19.0%

Intercompany eliminations not shown

Revenue Trading Profit

Cobham plc40

Foreign Exchange Transaction Exposure

Historic averageeffective rate

2007 $1.83 : £12008 $1.93 : £12009 $1.70 : £12010 $1.58 : £1

Dollar/Euro exposure predominantly hedged for 2011 with $36m @ 1.37 & 2012 $26m @ 1.33

2013 to 2014

Hedging in place $183m

$52m

92% hedged for 2011

Avg hedge rate $1.56: £1

$83m Avg hedge rate $1.61: £1

2012

Hedging in place

Avg hedge rate $1.60: £1

2011 Total $199m

Cobham plc41

US$/£ Exchange Rates

£0.8m PBT translation impact for every 1 cent movement

2010

Opening Full Year Full Year

Income Statement(average rate) n/a 1.56 1.55

Balance Sheet(closing rate) 1.44 1.61 1.57

2009

Cobham plc42

Reconciliation of IFRS to Underlying Result

Year to31/12/09

Year to31/12/10

£m £m

Operating profit 286.6 230.1

Business restructuring 7.7 17.5

Unrealised losses/(gains) on revaluation of currency instruments (42.9) 2.8

Amortisation of intangible assets arising on acquisition 78.7 63.3

Settlement of commercial dispute - 28.8

M&A related adjustments 6.9 5.9

Trading profit 337.0 348.4

Net finance expense (41.7) (42.3)

Underlying profit before taxation 295.3 306.1

Cobham plc43

Group Revenue and Trading Profit Re-stated Segmental Results - Half year

£m H1 2009 H1 2010OrganicGrowth H1 2009 H1 2010

Cobham Aerospace and Security 372.6 342.3 (4.1)% 77.0 75.3

Margin 20.7% 22.0%

Cobham Defence Systems 326.4 334.2 2.6% 43.9 45.7

Margin 13.4% 13.7%

Cobham Mission Systems 147.7 157.7 8.7% 23.5 26.5

Margin 15.9% 16.8%

Technology Divisions 842.5 832.6 1.0% 144.4 147.7

Margin 17.1% 17.7%

Cobham Aviation Services 111.4 131.3 4.6% 15.3 15.7

Margin 13.7% 12.0%

Head Office and Other Businesses 0.4 0.1 2.0 3.8

Cobham Group 952.1 963.4 1.6% 161.7 167.2

Margin 17.0% 17.4%

Intercompany eliminations not shown

Revenue Trading Profit

Cobham plc44

Group Revenue and Trading Profit Re-stated Segmental Results – Full Year

£mYear to

31/12/09Year to

31/12/10OrganicGrowth

Year to31/12/09

Year to31/12/10

Cobham Aerospace and Security 714.7 646.9 (7.7)% 158.7 143.4

Margin 22.2% 22.2%

Cobham Defence Systems 654.7 665.8 (0.3)% 97.0 101.9

Margin 14.8% 15.3%

Cobham Mission Systems 290.3 320.8 9.8% 50.1 65.1

Margin 17.3% 20.3%

Technology Divisions 1,653.7 1,630.1 (1.6)% 305.6 310.3

Margin 18.5% 19.0%

Cobham Aviation Services 230.9 273.5 7.2% 31.3 36.4

Margin 13.6% 13.3%

Head Office and Other Businesses 0.8 0.1 0.1 1.7

Cobham Group 1,880.4 1,902.6 (0.3)% 337.0 348.4

Margin 17.9% 18.3%

Intercompany eliminations not shown

Revenue Trading Profit

Cobham plc

US Defence / Security

25%

Non US Defence / Security

28%

Commercial Aerospace/

GA23%

Other Comms24%

53% revenue defence/security44% US revenue

Divisional Revenue Re-stated Analysis – Full Year

45

Aerospace and Security Defence Systems

Mission Systems

US Defence / Security

63%

Non US Defence / Security

30%

Commercial Aerospace/

GA4%

Other Comms

3%

93% revenue defence/security68% US revenue

97% revenue defence/security97% US revenue

US Defence / Security

96%

Non US Defence / Security

1%

Commercial Aerospace/

GA2%

Other Comms

1%

Cobham plc46

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 as operating profit from continuing operations excluding the impacts of certain transaction related costs and business restructuring costs as detailed below. Also excluded are the marking to market of currency instruments not realised in the period, impairments of intangible assets and items deemed by the Directors to be of an exceptional nature such as the settlement of a long- standing commercial dispute. Transaction related costs excluded from trading profit and underlying earnings include the amortisation of intangible assets recognised on acquisition, the writing off of the pre-acquisition profit element of inventory written up on acquisition and costs charged post acquisition related to acquired share options. Transaction related costs also include other direct costs associated with business combinations and direct costs arising from any terminated acquisitions or disposals.

Business restructuring costs comprise exceptional profits or losses arising on disposals actually completed, as well as exceptional costs or profits associated with the restructuring of the Group’s business and site integrations. This includes costs associated with the Excellence in Delivery programme. All underlying measures include the revenue and operational results of both continuing and discontinued businesses until the point of sale of the operation.

Net debt is defined as the net of cash and cash equivalents less borrowings at the balance sheet date.

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

Organic revenue growth

PV Investment

Technology divisions

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 tangible fixed assets. Operating cash conversion is defined as operating cash flow as a percentage of trading profit, excluding profit from joint ventures. Free cash flow is operating cash flow after net interest and taxation.

Organic revenue growth is defined as revenue growth stated at constant translation exchange, excluding the incremental effect of acquisitions and disposals.

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

Cobham’s technology divisions comprise Cobham Avionics and Surveillance, Cobham Defence Systems and Cobham Mission Systems

Cobham plc47

Glossary

AAR Air-to-air refuellingAARGM Advanced Anti-Radiation Guided MissileAcq AcquisitionAGM Annual General MeetingAMRAAM Advanced Medium-Range Air-to-Air MissileC4ISR Command, Control, Communications, Computers, Intelligence, Surveillance and ReconnaissanceCAGR Compound Annual Growth RateCAS Cobham Avionics and SurveillanceCAvS Cobham Aviation ServicesCDS Cobham Defence SystemsCMS Cobham Mission SystemsDoD Department of DefenseDARPA Defense Advanced Research Projects AgencyEBITDA Earnings Before Interest Tax Depreciation and AmortisationEPS Earnings Per ShareERP Enterprise Resource PlanningEW Electronic WarfareFX Foreig n ExchangeGA General AviationIDDQ Indefinite Delivery Definite QuantityIDIQ Indefinite Delivery Indefinite QuantityIED Improvised Explosive DeviceIFRS International Financial Reporting StandardsJSF Joint Strike FighterMIDAESS Missile Defence Agency Engineering and Support Services MFTS Military Flying Training ServicesOCI Organisational Conflict of InterestOE Original EquipmentPBT Profit Before TaxPV Private Venture (Company funded R&D)R&D Research & DevelopmentRDT&E Research, Development, Test and EvaluationRoW Rest of WorldSATCOM Satellite CommunicationSOF Standard Operating FrameworkUAV Unmanned Aerial VehicleWnAN Wireless network After Next

Cobham plc48

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 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.

Cobham plc49

The most important thing we build is trust