Slide 1: Fiscal 2016 Third Quarter Earnings Call Presentation
Place image here (10” x 3.5”) FISCAL 2016 THIRD QUARTER EARNINGS CALL PRESENTATION HARRIS.COM | #HARRISCORP
Slide 2: Forward-looking statements
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 pro
Slide 3: 3Q16 summary
3Q16 summary ($million, except per share amounts) Reported 3Q16 Highlights Non-GAAP EPS Revenue Orders • Solid 3Q EPS; continuing ramp in 2,138 synergy savings 1.45 1,909 1.32 1,187 • 3Q orders and revenue sequentially B:B 1.1 higher despite impact of lower tactical; Harris B:B > 1 3Q15 3Q16 3Q15 3Q
Slide 4: Communication Systems
Communication Systems ($million) Organic revenue 539 541 489 485 • Segment revenue down 10% 469 454 116 95 Public Safety 111 92 109 109 • Tactical Comms(1) revenue down 16%; B:B of .8 Tactical Comms(1) 358 423 446 362 380 376 − Higher Europe and Central Asia revenue more than offset by lower Middle
Slide 5: Space and Intelligence Systems
Space and Intelligence Systems ($million) Organic revenue • Segment revenue up 7% 488 489 455 457 435 446 − Higher revenue from a number of new classified programs, including Space Superiority • Orders strength w/ B:B > 1 − $329M classified orders 1Q15 2Q15 3Q15 1Q16 2Q16 3Q16 pro forma − $37M for 1
Slide 6: Electronic Systems
Electronic Systems ($million) Organic revenue • Segment revenue up 6% 451 393 − Higher F-35 ramp and EGON counter IED 378 382 370 374 revenue – partially offset by lower Commercial Broadband Satellite Program terminals revenue • Orders strength w/ B:B > 1 − $88M F/A-18 electronic jammers; $17M 1Q15
Slide 7: Critical Networks
Critical Networks ($million) Organic revenue 672 • Segment revenue down 10% 644 613 566 541 551 − Higher FAA NextGen modernization revenue – more than offset by lower IT services and CapRock energy • B:B > 1 − FAA significant driver; both CapRock energy and maritime > 1 1Q15 2Q15 3Q15 1Q16 2Q16 3Q16
Slide 8: Fiscal 2016 outlook
Fiscal 2016 outlook ($million, except per share amounts) Guidance Previous Fiscal 16 Revised Fiscal 16 $ pre-tax EPS $ pre-tax EPS Revenue $ 7,600 - 7,680 ~$ 7,500 GAAP EPS from continuing operations $ 2.80 – 2.90* ~$ 2.80* Non-cash write-down of goodwill and other assets 367 $ 2.63 367 $ 2.63 Acqui
Slide 9: Fiscal 2016 segment outlook
Fiscal 2016 segment outlook ($million) Non-GAAP segment Other information Revenue operating margin FY15 FY15 Previous FY16 Revised FY16 Previous FY16 Revised FY16 pro forma pro forma Harris Corporation $8,085 down 5 to 6% down ~7% Communication Systems $ 2,125 down 2 to 3% down 8 to 9% 29.0% 29.5% –
Slide 10: Supplemental information
Supplemental information ($million) Harris legacy tactical history YTD 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 FY13 FY14 FY15 FY16 Orders 254 287 297 498 225 387 285 232 288 263 286 402 378 215 251 1,336 1,129 1,238 845 Revenue 307 337 276 335 305 319 335 348 276 3