Slide 1: Fiscal 2016 Fourth Quarter Earnings Call Presentation
Place image here (10” x 3.5”) FISCAL 2016 FOURTH 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: Fiscal 2016 summary
Fiscal 2016 summary ($million, except per share amounts) • EPS up 11%; B:B >1 Reported results Non-GAAP EPS Revenue • $772M strong free cash flow (>$750M target); 4-day working capital improvement; >$100M 7,467 5.14 5.70 cash integration/restructuring absorbed 5,083 + 11% • Exelis adding scale, broa
Slide 4: 4Q16 summary
4Q16 summary ($million, except per share amounts) 4Q16 reported results Non-GAAP EPS Revenue Orders 1,904 • EPS up 10% 1.45 1.32 1,603 1,535 + 10% B:B • Operating income up 6% and margin up 0.84 190 bps to 16.2% on organic revenue down 6% − Capture of synergy savings, lower costs 4Q15 4Q16 4Q15 4Q16
Slide 5: Communication Systems
Communication Systems ($million) Organic revenue 576 539 541 489 485 • Segment revenue down 24%; margin 469 454 116 95 139 436 down 250 bps Public 111 109 109 Safety 92 125 • Tactical Comm(1) down 29% Tactical Comms(1) 358 423 446 437 362 380 376 − Legacy down 40%; B:B .92; backlog $402M 311 − U.S.
Slide 6: Space and Intelligence Systems
Space and Intelligence Systems ($million) Organic revenue • Segment revenue up 10%; margin up 510 bps 529 455 488 457 483 435 446 489 − Strength in classified, including space superiority and protection • $104M contract as prime in new mission area – potentially develop key franchise • Commercial sp
Slide 7: Electronic Systems
Electronic Systems ($million) Organic revenue* • Segment revenue up 4%; margin up 426 910 bps 367 363 373 381 355 351 355 − Higher electronic warfare and counter IED • Electronic warfare doubling orders for the year – modernizations on legacy platforms 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 pro for
Slide 8: Critical Networks
Critical Networks ($million) Organic revenue 644 672 • Segment revenue down 6%; margin up 613 611 566 541 551 575 310 bps − Higher FAA NextGen more than offset by IT services program wind-downs and CapRock energy − CapRock cost reductions returning energy to 4Q profitability 1Q15 2Q15 3Q15 4Q15 1Q16
Slide 9: Fiscal 2017 outlook
Fiscal 2017 outlook ($million, except per share amounts) Guidance Fiscal 16 Fiscal 17 $ pre-tax EPS $ pre-tax EPS (1) Revenue $ 7,407 $ 7,110 – 7,330 (2) GAAP EPS from continuing operations $ 2.75 $ 5.53 – 5.73 Non-cash write-down of goodwill and other assets 367 Acquisition-related Net liability re
Slide 10: Fiscal 2017 segment outlook
Fiscal 2017 segment outlook ($million) Non-GAAP segment Other information Revenue operating margin FY16 FY17 FY16 FY17 Harris Corporation* $ 7,407 * down 1 to 4% Communication Systems $ 1,864 down 7 to 9% 29.5% 29.5% – 30.5% Space & Intelligence Systems $ 1,899 up 1 to 3% 15.5% 16.0% – 17.0% Electro
Slide 11: Supplemental information – legacy Harris tactical
Supplemental information – legacy Harris tactical ($million) Harris legacy tactical history 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 FY13 FY14 FY15 FY16 Orders 225 387 285 232 288 263 286 402 378 215 251 199 1,336 1,129 1,238 1,044 Revenue 305 319 335 348 276 317 356 366 296 314 3
Slide 12: Supplemental information – Aerostructures
Supplemental information – Aerostructures ($million) Aerostructures financials 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Orders 20 64 9 3 8 23 17 0 Sales 23 24 19 20 19 18 21 2 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Pro forma Harris revenue 1,934 2,139 1,970 2,042 1,811 1,843 1,909 1,904 Aerostructur