L3Harris (LHX) 8-K 2012 Investor and Analyst Meeting

Exhibit 99.1

ANALYST MEETING

JUNE 2012

INVESTOR AND

Forward-looking statements

Page 2

2012 Investor and Analyst Meeting

Forward-looking statements

Statements

in

these

presentations

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

upon

the

safe

harbor

provisions

of

Section

27A

of

the

Securities

Act

of

1933

and

Section

21E

of

the

Securities

Exchange

Act

of

1934.

Forward-looking

statements

in

these

presentations

include

but

are

not

limited

to

statements

concerning:

the

company’s

plans,

strategies

and

objectives

for

future

operations

or

results;

new

products,

services

or

developments;

future

economic

conditions,

performance

or

outlook;

the

outcome

of

contingencies;

the

company’s

beliefs

or

expectations;

activities

that

the

company

intends,

expects,

projects,

believes

or

anticipates

will

or

may

occur

in

the

future;

the

potential

value

of

contract

awards;

potential

orders

or

contract

opportunities

and

awards;

statements

regarding

outlook,

including

guidance

or

expectations

for

revenue,

earnings,

margins

and

cash

flow

for

the

company

and

its

business

units;

plans

to

divest

Broadcast

Communications;

and

assumptions

underlying

any

of

the

foregoing.

Forward-looking

statements

may

be

identified

by

use

of

words

such

as

“believes,”

“expects,”

“may,”

“should,”

“would,”

“will,”

“intends,”

“plans,”

“target,”

“forecast,”

“estimates,”

“anticipates,”

“projects,”

or

similar

words

or

expressions.

The

company

cautions

investors

that

any

forward-looking

statements

are

subject

to

risks

and

uncertainties

that

may

cause

actual

results

and

future

trends

to

differ

materially

from

those

matters

expressed

in

or

implied

by

such

forward-

looking

statements.

The

company's

consolidated

results

and

the

forward-looking

statements

could

be

affected

by

many

factors,

including

but

not

limited

to:

the

loss

of

the

company’s

relationship

with

the

U.S.

government

or

a

shift

in

U.S.

government

funding;

potential

changes

in

U.S.

government

or

customer

priorities

and

requirements

(including

potential

deferrals

of

awards,

terminations,

reductions

of

expenditures,

changes

to

respond

to

the

priorities

of

Congress

and

the

Administration,

budgetary

constraints,

debt

ceiling

implications,

and

cost-cutting

initiatives);

risks

inherent

with

large

long-term

fixed-price

contracts,

particularly

the

ability

to

contain

cost

overruns;

the

potential

impact

of

a

security

breach,

through

cyber

attack

or

otherwise,

or

other

significant

disruptions

of

the

company’s

IT

networks

and

systems

or

those

the

company

operates

for

customers;

financial

and

government

and

regulatory

risks

relating

to

international

sales

and

operations;

the

continued

effects

of

the

general

downturn

in

the

global

economy

and

U.S.

government’s

budget

deficits

and

national

debt;

the

ability

to

continue

to

develop

new

products

that

achieve

market

acceptance;

the

consequences

of

future

geo-political

events;

strategic

acquisitions

and

the

risks

and

uncertainties

related

thereto,

including

the

ability

to

manage

and

integrate

acquired

businesses;

performance

of

subcontractors

and

suppliers;

potential

claims

that

the

company

is

infringing

the

intellectual

property

rights

of

third

parties;

the

successful

resolution

of

patent

infringement

claims

and

the

ultimate

outcome

of

other

contingencies,

litigation

and

legal

matters;

risks

inherent

in

developing

new

technologies;

changes

in

the

company’s

effective

tax

rate;

the

potential

impact

of

natural

disasters

or

other

disruptions

on

the

company’s

operations;

the

potential

impact

of

changes

in

the

regulatory

framework

that

applies

to,

or

of

satellite

bandwidth

constraints

on,

the

company’s

managed

satellite

and

terrestrial

communications

solutions;

the

timing

and

impact

of

anticipated

dispositions

of

the

company’s

Cyber

Integrated

Solutions

operation

and

Broadcast

Communications

business;

the

timing

and

amount

of

anticipated

gains,

losses,

impairments

and

charges

related

to

such

dispositions;

and

changes

in

future

business

or

other

market

conditions

that

could

cause

business

investments

and/or

recorded

goodwill

or

other

long-term

assets

to

become

impaired.

Further

information

relating

to

factors

that

may

impact

the

company's

results

and

forward-looking

statements

are

disclosed

in

the

company's

filings

with

the

SEC.

The

forward-looking

statements

contained

in

these

presentations

are

made

as

of

the

date

of

these

presentations,

and

the

company

disclaims

any

intention

or

obligation,

other

than

imposed

by

law,

to

update

or

revise

any

forward-looking

statements,

whether

as

a

result

of

new

information,

future

events

or otherwise.

BUSINESS AND STRATEGY REVIEW

Bill Brown

PRESIDENT & CHIEF EXECUTIVE OFFICER

Business and Strategy Review

Page 2

2012 Investor and Analyst Meeting

Harris Corporation overview

Integrated

Network

Solutions

Government

Communications

Systems

RF

Communications

•

Fiscal 2012 revenue of ~$5.45B

•

Industry innovator providing

advanced communications

and information systems

•

Global reach in 125

countries with 15,000

employees, including more

than 6,000 engineers

and scientists

Based on guidance provided May 1, 2012. 

Business and Strategy Review

Page 3

2012 Investor and Analyst Meeting

Investment highlights

•

Strong positions in core markets

•

Solid technology base

•

Good long-term growth prospects

•

Proven track record of financial performance

•

Seasoned, experienced leadership team

Business and Strategy Review

Page 4

2012 Investor and Analyst Meeting

Fiscal year 2012

•

Outstanding program execution

•

Significant competitive wins

•

Strong cash generation

•

Record cash returned

to shareholders

•

Launched portfolio adjustments

Accomplishments

($million except EPS)

Based on guidance provided May 1, 2012.  Reference non-GAAP reconciliation on the Harris investor relations website. 

EPS

Operating 

income

margin

Revenue

3,956

4,431

4,725

5,418

5,450

$3.16

$3.78

$4.57

$4.98

$5.15

5.25 

17%

18%

21%

19%

19%

FY08

FY09

FY10

FY11

FY12

Guid

~18-

-

~

Business and Strategy Review

Page 5

2012 Investor and Analyst Meeting

Portfolio optimization

RF

Communications

Government

Communications

Systems

Integrated

Network

Solutions

“Core”

Broadcast

Communications

Off-premise

cloud hosting

Divest

Discontinue

Revenue profile prior to portfolio optimization.

Business and Strategy Review

Page 6

2012 Investor and Analyst Meeting

Healthcare

International

Government

Revenue

Commercial

business model

Government program

business model

By business model

By end customer

Energy and

Maritime

RF

Communications

Government

Communications

Systems

Integrated Network

Solutions

U.S. DoD

U.S. Intel

U.S. Civil

Public

Safety

Business and Strategy Review

Page 7

2012 Investor and Analyst Meeting

Environment

Meaningful use and accountable care driving Healthcare IT transformation

Healthcare

Energy/Maritime

Public Safety

International

Government

U.S. Intel

U.S. Civil

U.S. DoD

Rig/ship count, bandwidth requirements increasing

LTE opportunity pulled forward and favors Harris capabilities

Multi-year modernization programs advancing

Intel programs remain a priority and Harris well-positioned

FAA NextGen and NOAA programs funded

Priority areas like C4ISR favor Harris

Investment accounts declining, possible sequestration

Revenue by end customer

Wideband

“to

the

tactical

edge”

a

priority

Business and Strategy Review

Page 8

2012 Investor and Analyst Meeting

Strategy

Sustain and grow core

Drive operational

excellence

Deploy

capital effectively

Debt holders

Acquisitions

Shareholders

Supply chain

Overhead

Tactical Comms

Government

Communications

Systems

IT Services

Working

capital

Manufacturing

and field

operations

Healthcare

Public Safety and

Professional

Communications

CapRock

Accelerate

growth initiatives

JTRS

programs

Ratio

Investment

Company-funded

~$.7B

–

~1:4

USG-funded

–

~$3.1B

JTRS radios delivered

~200K

~3K

~66:1

Harris

~40%

Industry position

Cumulative units fielded (K)

JTRS

started

7

14

25

37

56

96

157

251

309

395

462

Falcon II

Falcon III

Tactical Communications –

building

a global leader

Source:  Company estimates

#1

Business and Strategy Review

Page 9

2012 Investor and Analyst Meeting

Business and Strategy Review

Page 10

2012 Investor and Analyst Meeting

Additional capabilities

commercially developed

•

APCO P25

•

SATCOM Burst

•

Wireless cloning

•

HPW

•

SUITE B

•

SINCGARS

•

HAVEQUICK

•

VULOS

$3,000

JEM

PRC-152

2005

$24,000

$9,000

$12,000

Capabilities

2012

CISCHR

VRC-110

•

TYPE-1 Crypto

•

20W

VRC-111

JTRS Program of Record

VRC-111

MBITR

•

DAMA/IW

SATCOM

•

Classified

waveform

•

SRW

•

50W

2002

Today

•

First

JTRS Cryptographic Modernization Compliant Crypto –

Sierra II

•

First

NSA-certified JTRS compliant radio –

handheld PRC-152

•

First

NSA-certified JTRS manpack –

PRC-117G

•

First

DAMA waveform in handheld

•

First

deployable SRW waveform in manpack

•

First

NSA-certified wideband JTRS

handheld –

PRC-152A (ANW2 + SRW)

“…the Network remains the Army’s top investment priority. With expectations of

tighter budgets and a still very active threat environment, the Army will have to

produce a force that is smaller yet more capable. The Network is

the core of that

smaller, capable Army.”

–

Secretary of Army John McHugh and Army Chief of Staff General

Price

Tactical Communications –

sustaining global leadership

Price

•

First

wideband networking waveform in manpack

“Be there

first”

Innovation

Affordability

$1.2B in savings

Raymond Odierno, statement to Congress, February 2012

Classified ground

•

Strong franchise base

•

Diverse program and

customer portfolio

•

Major program areas

currently well-funded

•

Delivering high-priority

solutions

•

Outstanding execution

Government Communications

Systems

Civil

FTI

Space

Satcom

Airborne

GOES-R

Revenue

National

Defense

Business and Strategy Review

Page 11

2012 Investor and Analyst Meeting

IT Services –

constrained,

competitive market

IT Services revenue

Federal IT spend

~$80B

Based on guidance provided May 1, 2012. 

Patriot

•

Flat/down market

•

Increasingly competitive

•

~$33B addressable

IDIQs

•

Support franchise programs

•

Leverage IDIQ vehicles

•

Maintain lean cost structure

Business and Strategy Review

Page 12

2012 Investor and Analyst Meeting

Harris CapRock

CapRock

Communications

Global Connectivity

Services

(Schlumberger)

Harris Maritime

Communications

Core180

Infrastructure

Leadership…

…in a growing industry

Global industry position

Harris

~20%

($million)

Source:  COMSYS and company estimates

#1

U.S.

Government

Maritime

Energy

2,850

Double-digit

growth

Business and Strategy Review

Page 13

2012 Investor and Analyst Meeting

Business and Strategy Review

Page 14

2012 Investor and Analyst Meeting

•

Integrated LTE/P25 devices

and infrastructure

•

FTI-like network

design/management

•

Deployed field service workforce

2012

Public Safety

2013

2014

2015

2016

2017

2018

2019

Cellular data

LMR

Winning major opportunities

Harris system

Harris statewide system

Source:  Calendar year 2011 company estimates

North America $5.3B land mobile radio industry

Why Harris?

#2

LTE accelerated

Harris

10%

Solid position…

…strong growth prospects

Source:  IDC, HIMSS Analytics

Healthcare –

leveraging proven

capabilities in a growing market

Addressable

U.S.

healthcare

IT

market

~9

~12

~7-

9% growth

Based on guidance provided May 1, 2012. 

($billion)

Healthcare

Solutions

revenue

Enterprise intelligence

~10

~200

($million)

From startup to 

$200M in 4 years

+

+

+

+

–

Government

Commercial

Government

Commercial

Business and Strategy Review

Page 15

2012 Investor and Analyst Meeting

Profitability

International expansion

Middle East

Defense spending (~10%)

Homeland security 

Oil E&P

Brazil

Based on guidance provided May 1, 2012.  Projected defense spending 2012-16 company estimates. 

U.S.

International

Business and Strategy Review

Page 16

2012 Investor and Analyst Meeting

–

SISFRON, SISGAAZ

–

WorldCup

–

Olympics

–

ATC upgrade

Defense spending (~10%)

Border/coastal security

Oil E&P

Infrastructure upgrades

Airline passenger traffic

Business and Strategy Review

Page 17

2012 Investor and Analyst Meeting

Drive operational excellence

Factory consolidation

Product cost reduction

University Ave.

Carlson Rd.

Jefferson Road

Rochester, NY

Culver Rd.

Floor space

used

HNR

Travel time

Capacity

25%

75%

25%

Operating costs

50% reduction

Product cost reduction

Engineering

Manufacturing

PRC-117G

Wrap

rates

Index

100

35% reduction

8% reduction

5% reduction

Index

100

RF Communications

Government Communications Systems

FY08

FY09

FY10

FY11

FY12

FY09

FY10

FY11

FY12

FY09

FY10

FY11

FY12

Business and Strategy Review

Page 18

2012 Investor and Analyst Meeting

Continued strong performance

Revenue

($million except EPS)

Earnings per share

Based on guidance provided May 1, 2012.  Reference non-GAAP reconciliation on the Harris investor relations website. 

$3.16

$3.78

$4.57

$4.98

$5.15-

$5.25

$5.10-

$5.30

FY08

FY09

FY10

FY11

FY12

Guid

FY13

Guid

3,956

4,431

4,725

5,418

~5,450

0-2%

growth

FY08

FY09

FY10

FY11

FY12

Guid

FY13

Guid

Seasoned, experienced team

Bill Brown

President &

Chief Executive Officer

Steve Marschilok

President

Public Safety and

Brendan O’Connell

President

George Helm

President

U.S. Department of Defense

Dana Mehnert

Group President

RF Communications

Dan Pearson

Group President (Acting)

Integrated Network Solutions

Sheldon Fox

Group President

Government

Communications Systems

Ted Hengst

President

Harris IT Services

VP & Chief Information Officer

Tom Eaton

President

Harris CapRock

Communications

Jim Traficant

President

Healthcare Solutions

Dan Pearson

Executive VP &

Chief Operating Officer

Gary McArthur

Senior VP &

Chief Financial Officer

Business and Strategy Review

Page 19

2012 Investor and Analyst Meeting

International

Business

Professional

Communications

FINANCIAL SUMMARY

Gary McArthur

SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

Financial Summary

Page 2

2012 Investor and Analyst Meeting

Revenue and backlog

($million)

1,761

2,067

2,289

6-

8%

lower

3-

lower

1,864

1,747

1,777

1-

3%

2-

3%

growth

897

1,000

1,445

11%

growth

3-

4%

growth

FY09

FY10

FY11

FY12

Guid

FY13

Guid

Revenue

RF

GCSD

INS

4,431

4,725

5,418

~5,450

0-

2%

Growth

4%

growth

9 -

FY09

FY10

FY11

FY12

Guid

Total company backlog

Funded backlog

Unfunded backlog

6-

8%

lower

6,072

6,258

7,531

Based on guidance provided May 1, 2012.  Reference non-GAAP reconciliation on the Harris investor relations website. Segment information excludes eliminations.

Financial Summary

Page 3

2012 Investor and Analyst Meeting

Operating income and margin

($million)

33%

35%

34%

~33%

30-31%

11%

13%

13%

~14%

~14%

12%

12%

9%

7.5-8.5%

8-11%

FY09

FY10

FY11

FY12

Guid

FY13

Guid

RF

GCSD

INS

109

200

581

124

230

727

137

227

787

792

975

1,042

Based on guidance provided May 1, 2012.  Eliminations and corporate expenses are not shown.  Reference non-GAAP reconciliation on the Harris investor 

relations website.

Financial Summary

Page 4

2012 Investor and Analyst Meeting

Operating cash flow

•

Drive down unbilled

•

Optimize payment terms

•

Focus on collections

•

Reduce billing cycle

Based on guidance provided May 1, 2012.  Reference non-GAAP reconciliation on the Harris investor relations website

($million)

Actions to improve

working capital turns

667

803

833

~825

825-875

6.4%

5.3%

4.8%

~6.5%

~5.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

FY09

FY10

FY11

FY12

Guid

FY13

Guid

Net operating

working capital

as a % of sales

Financial Summary

Page 5

2012 Investor and Analyst Meeting

Free cash flow

110%

FY09

FY10

FY11

108%

101%

80%

~96%

~110%

Free cash flow

to net income

Return cash to shareholders

–

Pay attractive dividend

–

Repurchase shares

Maintain healthy balance sheet

–

BBB+/Baa1

Pursue accretive acquisitions

–

Core

–

Near adjacencies

Philosophy

Based on guidance provided May 1, 2012.  Reference non-GAAP reconciliation on the Harris investor relations website

($million)

(122)

(

198)

(325)

(

240-

250)

(210-

230)

667

803

833

~825

825-

875

FY09

FY10

FY11

FY12

Guid

FY13

Guid

595-665

575-585

Free cash

flow

508

545

605

Operating

cash flow

CapEx

Financial Summary

Page 6

2012 Investor and Analyst Meeting

Cash returned to shareholders

Based on guidance provided May 1, 2012.  Reference non-GAAP reconciliation on the Harris investor relations website

Dividends/free

cash flow

20%

19%

25%

~24%

~25%

Repurchases/free

cash flow

24%

34%

50%

~82%

~63%

($million)

132

208

256

107

115

127

133

130

126

FY09

FY10

FY11

FY12

Guid

FY13

Guid

Share repurchases

Dividends

Average fully diluted share count (millions)

~140

~158

~473

~400

~115

~110

Financial Summary

Page 7

2012 Investor and Analyst Meeting

Debt maturity schedule

($million)

336

•

~$300M cash on hand

•

Over $650M available under

revolvers at the end of 3Q12

•

Expect to replace existing revolvers

with a new $1 billion facility this fall

•

No term debt coming due before

October 2015

Excellent liquidity

FY12

FY14

FY16

FY18

FY20

FY22

FY24

FY26

FY28

FY30

FY32

FY34

FY36

FY38

FY40

FY42

250

revolver

Sep 2012

750

revolver

Sep 2013

300

5.00%

Oct 2015

400

5.95%

Dec 2017

350

6.375%

June 2019

400

4.40%

Dec 2020

100

7.00%

Jan 2026

26

6.35%

Feb 2028

300

6.15%

Dec 2040

Financial Summary

Page 8

2012 Investor and Analyst Meeting

Solid financial foundation

BBB+/Stable/A-2

–

Recently reconfirmed rating 

Baa1/Stable/P-2

–

Recently reconfirmed rating

$ in millions. Based on guidance provided May 1, 2012.  Reference non-GAAP reconciliation on the Harris investor relations website

FY12

Guideline

FY11

Guidance

Target credit rating:

          S&P

BBB+/A

BBB+

BBB+

          Moody's

Baa1/A3

Baa1

Baa1

Cash on hand  

$300 to $400

$367

~$300

Available revolving credit facility

$970

$870

~$850

ROIC

>12%

17.4%

~16%

Debt to total capital

<50%

46.7%

~52%

Debt to EBITDA

<2.0 X

1.9

~1.8

EBITDA to interest expense

>9.0 X

13.5

~11

Free cash flow to debt

>20%

23.1%

~27%

Financial Summary

Page 9

2012 Investor and Analyst Meeting

Fiscal 2012 and 2013 guidance

Based on guidance provided May 1, 2012 (and excludes Cyber and Broadcast).  Reference non-GAAP reconciliation on the Harris investor relations website

Segment guidance

FY11

FY12

FY13

FY11

FY12

FY13

Harris Corporation

5.42B

~ 5.45B

0 – 2% growth

$  4.98

$  5.15 – 5.25

$  5.10 – 5.30

RF Communications

  2.29B

6 – 8% lower

3 – 4% lower

34.4%

~33%

30% – 31%

Integrated Network Solutions

1.44B

9 – 11% growth

3 – 4% growth

9.4%

7.5% – 8.5%

8% – 11%

Government Communications

1.78B

1 – 3% growth

2 – 3% growth

12.8%

~14%

~14%

Other guidance

($millions)

FY11

FY12

FY13

Cash flow from operations

833

~ 825

825 – 875

Depreciation and amortization

212

  260 – 270

  255 – 265

Capital expenditures

325

  240 – 250

  210 – 230

Free Cash Flow

508

  575 – 585

595 – 665

Tax rate

33%

~33%

~33%

Revenue

EPS and op margin

(non-GAAP)

Financial Summary

Page 10

2012 Investor and Analyst Meeting

Executive summary

•

Solid financial results

•

Strong and improving free cash flow

•

Disciplined capital deployment

•

Strong balance sheet

RF COMMUNICATIONS

Dana Mehnert

GROUP PRESIDENT

RF Communications

Page 2

2012 Investor and Analyst Meeting

Executive summary

•

#1 in global tactical radio market, #2 in LMR

•

Unique “commercial”

business model

provides “first-mover”

advantage

•

Broad product portfolio and technology

leadership

•

First and only, widely deployed tactical

wideband networking solution

•

Outstanding customer intimacy and support

•

Reliable, proven mission-critical solutions

–

On the battlefield

–

On the city streets

–

In the Army’s Network Integration

Evaluation (NIE) exercises

•

Winning major LMR opportunities and

well-positioned for the emerging LTE roll-out

•

Leveraging unique synergies between Tactical

Communications and Public Safety

RF Communications

Page 3

2012 Investor and Analyst Meeting

Based on guidance provided May 1, 2012.  Reference non-GAAP reconciliation on the Harris investor relations website.

Revenue and operating margin

U.S. DoD

Public Safety and

Professional Communications

International

3-4%

lower

6-8%

lower

2,289

2,067

1,761

1,507

1,179

809

34%

($million)

507

851

1,095

1,008

1,207

1,115

302

328

412

685

366

660

68

494

514

34%

35%

33%

35%

34%

~33%

30-

%

FY06

FY07

FY08

FY09

FY10

FY11

FY12

Guid

FY13

Guid

DoD

International

PSPC

ROS

31

RF Communications

Page 4

2012 Investor and Analyst Meeting

Strong market leadership positions

Harris

~40%

Harris

68%

#2

10%

#3

6%

Harris

28%

#2

12%

#3

7%

U.S. DoD

International

Utilities

Transportation

Fed/DoD

Law enforcement

#1

Global tactical radio

North America land mobile radio

$4.1B

CY2011

$5.3B

CY2011

9% CAGR

6% CAGR

2% CAGR

3% CAGR

Global share

Source:  Company estimates

Targeted segments

Harris

10%

#2

$1.7B

16%

18%

19%

23%

28%

32%

39%

38%

43%

39%

~40%

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2011

2012

2013

2014

2015

RF Communications

Page 5

2012 Investor and Analyst Meeting

Investing to stay ahead globally

R&D investment

Based on guidance provided May 1, 2012. 

Up

10%

Product portfolio

Falcon III

®

Next generation

radios

Tactical Cellular

and Network

Communications

Server

User terminals

and applications

LMR terminals

and

infrastructure

LTE

FY12 Guid

FY13 Guid

RF Communications

Page 6

2012 Investor and Analyst Meeting

Based on guidance provided May 1, 2012.  Reference non-GAAP reconciliation on the Harris investor relations website. 

Operating margins

High value, new products

Manufacturing efficiencies

Economies of scale

Public Safety margin expansion

Business mix (Public Safety % of total)

Increased R&D investment

Pricing and competition

($million)

Sustaining

30%

plus

margin

20%

26%

28%

31%

34%

34%

35%

33%

35%

34%

~33%

30-31%

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

Guid

FY13

Guid

Revenue

ROS

RF Communications

Page 7

2012 Investor and Analyst Meeting

•

Leverage technology

advantage, installed base

and strong user advocacy

•

Capture Army Brigade

Combat Team (BCT)

modernization opportunities

–

Strong performance at

Army NIEs

–

Already selected in place of

GMR and HMS manpack

requirements for CS13

•

Provide ultimate Mid-tier

Network Vehicular Radio

(MNVR) solution

•

Expand and leverage U.S.

DoD leadership position

•

Focus on early international

adopters

•

Utilize Falcon III

®

networking

to provide integrated IP

system solutions

•

Build on leading global

position

•

Accelerate introduction of

new

Fusion

family

of

tactical

cellular and Network

Communications Server

(NCS) products

•

Integrated

communications

and ISR solutions using

multi-channel and

embedded modular radios

Tactical Communications

way forward

Lead global transition

to wideband

tactical networking

Capture majority

of  U.S. DoD

modernization

Expand addressable

market with new product

and system offerings

RF Communications

Page 8

2012 Investor and Analyst Meeting

< 2% JTRS

wideband capable

Wideband transition is driving the

DoD market…

Transition from narrowband to wideband

SPR

JTRS HH

HF

MB UHF/MP

MB HH

VHF-SINCGARS

Narrowband

Wideband

Time

1.3M

22K

300K*

Today

PRC117Gs

*Currently approved acquisition objective for all the services

Installed base to be modernized

300K current acquisition

objective for all services

1.35 million radios fielded

~$17B spent on legacy radios

…and Harris is driving the transition

RF Communications

Page 9

2012 Investor and Analyst Meeting

Fiscal 2013 U.S. DoD

Revenue

~25%

Available contract ceiling

FY11

FY12

USAF/

other

SOCOM

USMC/

Navy

Army

Based on guidance provided May 1, 2012. 

80% of revenue is either in

backlog or funded from

GFY12 or previous years

$1.7B

$2.2B

RF Communications

Page 10

2012 Investor and Analyst Meeting

Leadership position across all services

provides strong foundation for future growth

190,000 Falcon III

®

radios fielded…22,000 for

wideband applications

SOCOM

USMC

USN

USAF

ARMY

Deployed

“Wideband

standardization”

Contracts available

Building on large installed base and strong

customer advocacy

RF Communications

Page 11

2012 Investor and Analyst Meeting

Showcasing our performance

advantage at the Army’s NIE

PRC-

117G/ANW2

bridge network

Secure SRW in

PRC-117G

PRC-117G and

Rifleman Radio

“suitable for

fielding”

PRC-152A Nett

Warrior solution with

SRW and ANW2;

SRW appliqué

PRC-117G/

ANW2 backbone

network validation

Network

capacity and

stability issues

with SRW

and WNW

GMR Program

cancelled

HMS MP not

ready for

CS13 fielding

Falcon III

selected as

solution for

GMR and HMS

requirement

for

CS13

Harris

capabilities

demonstrated

Harris at NIE 12.2

400 PRC-117G

100 PRC152A

30  PRC-152A based SRW appliqués

33  RF-7800W HCLOS

Program of Record at NIE 12.2

~100 HMS manpacks

~600 Rifleman Radios

~12 HMS SRW appliqués

Outcomes

PRC-152A 

with ANW2

networking

RF Communications

Page 12

2012 Investor and Analyst Meeting

Brigade

Combat

Team

Army

Objective

Capability Set 13

Fielding

Multi-

channel

vehicular

systems

GMR

HMS

Mounted

SRW

Appliqué

Dismount

systems

HMS

Dismount

Soldier

radios

Type

1

Type 2

Rifleman Radio

AN/PRC-154

“We

intend

to

buy

commercial

technologies

that

represent

the

best

capability

at

the

best

cost to the taxpayer.  We're going to compete to bring the prices down…the Agile Process

will

ultimately

streamline

acquisition

so

it

is

more

incremental

and

more

affordable.”

We are winning today, the

opportunity is significant…

•

Army plans to open

future procurements

to competition

•

Affordability and

performance will

drive future

fielding solutions

•

$2B near-term

opportunity for

32 active BCTs…

at ~$60M each

First mover

advantage

for future

acquisitions

–

Col. Dan Hughes, Director of the Army’s System of Systems Integration Directorate

RF Communications

Page 13

2012 Investor and Analyst Meeting

…and we will continue to win on

affordability and performance

Creating a

competitive

environment

Outperforming

the Program

of Record

•

Proven benefits of competition

–

$1.2B saved on CISCHR

–

$360M to be saved with MNVR

–

$500M potential savings

for CS-13/14

–

Available today

•

Gain access to JTRS funding

–

MNVR, AMF, SRW Appliqué

•

Validated performance at NIE

•

Wideband waveform leadership

–

ANW2 CS-13 backbone

–

SRW

–

MUOS-ready platforms 

•

Interoperable with legacy radios

•

Only Type 1 NSA-certified radios

•

Over 200K JTRS radios fielded

HMS Program of Record

2004

Program award

9 form factors

6 waveforms

2012

4 form factors

3 waveforms

Dev. cost

$544M

Full rate prod.

2007

Dev. cost

$1,272M

Full rate prod.

2013????

1,218M

($million)

~$0.5B savings

Army CS-13/14 Acquisition cost

Procurement

RDT&E

$728M increase

6-year delay

Contract

award

183

1,035

702

Program of Record

price to USG

Harris price to USG

RF Communications

Page 14

2012 Investor and Analyst Meeting

Waveforms demonstrated/demonstrable at NIE 12.2

ANW2 High-capacity WB networking

SRW networking

SINCGARS

MIL-STD SATCOM (DAMA)

High-performance Waveform SATCOM

IW improved SATCOM

Have Quick II Ground-to-Air

NSA Certified type 1 COMSEC

Classified Waveform

Rover ISR

APCO P25 LMR

Planned future waveform capabilities

WNW High-capacity wideband networking

MUOS

SATURN NATO Ground-to-Air

ANW2C Next Gen High-performance higher capacity WB networking

Size, volume and weight in 2-channel configuration

3.7”

x 7.4”

x 13.6”

360 in³–12.5 lb

2.9”

x 11.4”

x 14.5”

460 in³–19 lb

Program quantity price in 2-channel configuration

Approx. $30K

Approx. $60K

Falcon III…smaller, lighter, more capable, combat and

NIE proven, significantly lower-cost and available now

U.S. Government waveform

Harris waveform

AN/PRC-117G

HMS Manpack

RF Communications

Page 15

2012 Investor and Analyst Meeting

Tactical Cellular                Apps Store

4G LTE

Fusion™

Networking

System

Android Applications

RF-330E-ER

Embeddable 

Radio

RF-3590RT    

Rugged Tablet

Multichannel

Manpack

2.5+ Channel Radio

RF-330E

Soldier Radio

MNVR Radio              

Wideband Networking

Waveform

Next Gen

Handheld

MUOS/Wideband

Harris delivers the future

We are delivering the future…

RF Communications

Page 16

2012 Investor and Analyst Meeting

Multi-channel

Manpack

TOC server

Biometrics,

database

updates

Biometrics,

database

updates

Situational

awareness

intel data

Next Gen

handheld

…and widening the capability gap!

Embedded

Modular Radio

New

products

Tactical Cellular

Network Communication

Server (NCS)

Rugged Android tablet

and applications

Embedded modular radio

Converged Comms

and ISR

Soldier radio

Leader radio

Enhanced

performance

Ruggedized

tablets

Multi-channel

vehicle and

dismounted radio

Fusion™

-

Tactical Cellular

-

Network Comm Server

MUOS

5x data rate

Longer battery life

MUOS capable

Intel     C2      SA

Mission-critical

content

Next generation radios

Tactical Operations

Center  databases

FOB/TOC

RF Communications

Page 17

2012 Investor and Analyst Meeting

HF

Tactical

Cellular

VHF

HCLOS

Packaged

systems

Wideband

manpack and

handheld radios

SPR

IP Network

systems

•

Lead international wideband

market transition with

Falcon

III

®

products,

systems and applications

•

Capture emerging market

for tactical broadband IP

communications systems

•

Provide highly interoperable

communications solutions

for defense and public

safety missions

Multiband

Edge

devices

Defense

Paramilitary

Public Safety

Growing

addressable

markets

Driving international growth

Expanded

offerings

Battlefield

Mgmt System

RF Communications

Page 18

2012 Investor and Analyst Meeting

Regional hub

CALA

Middle East/

Central Asia/Africa

Asia Pacific

•

Brazil

-

Multiple

major

communications

modernization and

surveillance programs

•

Mexico –

Critical internal

security infrastructure

•

U.S. SOUTHCOM

Regional

Narco-terror initiatives

•

Persistent Iranian threat

•

Standardization

Programs: Pakistan,

Iraq, Jordan

•

Emerging broad band IP

network requirements

(UAE, Saudi, OMAN)

•

AFRICOM Regional

Counter-terror initiatives

•

Australia, NZ Wideband

C4ISR Programs

•

SE Asia Regional

Disputes:

“Pivot towards Asia”

•

CNR standardizations:

Indonesia, Philippines,

Brunei

Regional growth drivers

•

NATO transition to

netcentric operations

•

U.S. Type 1:

Secure Interoperability

•

NATO SDR “JTRS-like”

requirements

Europe/Canada

RF Communications

Page 19

2012 Investor and Analyst Meeting

Major opportunity pipeline

Europe/Canada

Netherlands

Denmark

Poland

Canada

Romania

Bulgaria

Georgia

Czech

Norway

Asia Pacific

Australia

Indonesia

Singapore

Philippines

Brunei

New Zealand

Caribbean and Latin America

(CALA)

Brazil

Mexico

Colombia

Ecuador

Middle East/Central Asia/Africa

(ME/CA/AF)

Pakistan

Iraq

Saudi  Arabia

UAE

Jordan

Oman

Kenya

$4.2B 3-year pipeline

($million)

$2.1B 12-18 month pipeline

2012 Investor and Analyst Meeting

Brazil opportunity

•

Harris standardized for the

Brazilian Army

•

Falcon III

®

tactical radios and      

pre-packaged systems

•

$34M in orders 2010-2012

•

$300M of opportunities

•

Strong position as communications

supplier on major new programs

–

SISFRON

–

SISGAAZ

–

Brigade Braco Forte

•

Established local

assembly capability

RF Communications

Page 20

Middle East opportunity

IRAQ:

$550M

•

Incumbent HF and multiband supplier

•

Significant MoD/MoI modernization plans 

•

Developing border and energy protection

SAUDI ARABIA:  $240M

•

30+ year HF incumbent supplier

•

Strategic local production partnership

•

Air Force JTAC modernization program

•

MoD P25 LMR modernization

OMAN:  $35M

•

Special Forces

tactical modernization

•

Falcon III adopted by MoD   

•

Wideband networks emerging

JORDAN:  $100M

•

Selected for C4ISR program

•

MoD/Tri-Service tactical standardization

•

Border surveillance program

UAE:

$110M

•

20 year partnership with Special       

Operations Command

•

Emerging tactical wideband

•

Tactical/LMR/LTE convergence

RF Communications

Page 21

2012 Investor and Analyst Meeting

RF Communications

Page 22

2012 Investor and Analyst Meeting

Other multi-year opportunities

Australia JP 2072

Based on third quarter fiscal 2012.

Country in Central Asia

•

$585M orders

received to-date

•

Army standardized

on Falcon II HF, and

Falcon III Secure

Personal Radios

•

Multi-phase

integrated C4ISR

system for

Frontier Corps

•

$400M of additional

opportunities

Mexico

•

$110M orders

received to-date

•

Army, Navy, Federal

Electric Commission

of Mexico

standardized on

Falcon II HF; and

Navy standardized

on Falcon II VHF

handheld radios

•

$100M of additional

opportunities

Undisclosed country

•

$322M orders

received to-date

•

Supports local assembly of

HF and VHF radio products,

creating an enduring

standardization relationship

•

$150M additional

opportunities

•

Next generation secure,

voice and data

communications

infrastructure in support

of vehicular and

dismounted combat

systems

•

$200M additional

opportunities with

Australian Defence Force

•

$362M orders

received to-date

RF Communications

Page 23

2012 Investor and Analyst Meeting

Falcon III

®

Public Safety

Unity

Paramilitary

Falcon III

®

Emergency Operations

Center

Military

Network

Public

Safety

Network

Defense

•

Unprecedented interoperability

•

Common situational awareness

•

Bridging commercial, public

safety and military networks

P25

ANW2

Fusion Tactical Cellular    

4G LTE

ANW2

P25

4G LTE

Harris is uniquely positioned to address

converging defense and public safety missions

Leveraging technology, distribution synergies and a strong global customer base

Public Safety and Professional

Communications

•

Significantly improved program

performance and product quality

•

Established strong Harris brand position

•

Won multiple major programs in

competition with Motorola

•

Expanded product portfolio

•

Strengthened global dealer network

•

Gaining traction internationally

and with U.S. DoD

On the

battlefield…

…and

at home

We’ve made great progress…

RF Communications

Page 24

2012 Investor and Analyst Meeting

Public Safety and Professional

Communications way forward

•

Grow share in targeted North

American segments and

international P25 market

•

Win major targeted

infrastructure programs

•

Expand and strengthen

distribution channels

•

Expand and strengthen

product portfolio

•

Field family of high

performance P25/LTE

subscriber terminals

•

Convert key pilot systems to

launch orders

•

Win a significant position on

FirstNet national broadband

infrastructure program

•

Leverage new Rochester

manufacturing facility

•

Expand low-cost in-country

operations and supply base

•

Accelerate operational

integration

•

Exploit technology synergies

and global distribution

network

RF Communications

Page 25

2012 Investor and Analyst Meeting

Expand core LMR

business

Establish strong position

in emerging Public Safety

LTE market

Fully leverage synergies

with tactical

communications

RF Communications

Page 26

2012 Investor and Analyst Meeting

•

Target utility and transportation

segments with high performance

OpenSky

®

voice and data solution

•

Leverage key reference wins in

target segments

–

American Electric Power

–

San Francisco Municipal Transit

Agency (SFMTA)

–

U.S. Marine Corps Enterprise

Land Mobile Radio

–

Alberta First Responder Radio

Communications System

–

Oregon State Radio Program

•

Capitalize on tactical leadership

position with U.S. DoD

•

Sell radios on competitor-installed

P25 systems

Utilities

Fed/DoD

Law enforcement

Targeted industry segments

Transportation

$1.7B

Harris position in CY11

Targeting growing market segments

with sustainable advantage

30%

9%

4%

20%

RF Communications

Page 27

2012 Investor and Analyst Meeting

Large opportunity pipeline…$3B

Major targeted opportunities

•

State of Florida

•

San Diego

•

Commonwealth of

Massachusetts

•

State of Iowa

•

Oncore Energy

•

Province of Ontario

•

U.S. Navy Hydra Modernization

•

U.S. Army training ranges

RF Communications

Page 28

2012 Investor and Analyst Meeting

Strengthening and expanding

channels to market

up 20%

Regional centers of excellence

Current channel partners

Channel partners added in prior 12 months

Targeted new channel partners

•

Established 4 regional

centers of excellence

•

Enhanced and expanded

channel partner network

•

Gained customer

intimacy through

increased localization

RF Communications

Page 29

2012 Investor and Analyst Meeting

Expanding product portfolio

IP-based

network products

LTE devices and

applications

LMR radio solutions

DMR

•

P25 Cell Site

•

IP Control Point

•

P25 Phase II

•

Digital Mobile Radio

•

Low-end LMR Market

•

Broad Portfolio

•

XG-25 Portable/Mobile

•

XG-75 Portable/Mobile

•

Unity Mobile Radio

•

Rugged Tablet

•

MBC –

100 Modem

•

BeOn

®

voice/data App.

RF Communications

Page 30

2012 Investor and Analyst Meeting

New spectrum bill signed into law defines the market

FCC Interoperability Board

NTIA FirstNet

$2B available now

$5B available after spectrum

auction (max. 3 years from now)

Allocated to Public Safety

Public safety use

Nationwide private

LTE Network

700 MHz spectrum

User devices

Operations, maintenance

and support

Emerging Public Safety LTE

market

•

FirstNet

•

•

•

•

•

•

•

•

•

RF Communications

Page 31

2012 Investor and Analyst Meeting

LTE market forecast

2012

2013

2014

2015

2016

2017

2018

2019

Public Safety LTE Market

Estimated

market size 

prior to

Spectrum Bill

“This is going to transform public-safety

communications the same way that two-

way radio did in the 1930s. That’s how big

of a change this is going to be.”

“A new standard, resting on a single, cutting-

edge, and nationwide network…

blueprint for

single national network architecture.”

1

2

3

4

2012

2013

2014

2015

2016

2017

2018

2019

Cellular data

LMR

LTE accelerated

($billion)

~4.5

~2.8

Source:  Company estimates

RF Communications

Page 32

2012 Investor and Analyst Meeting

Delivering LTE to public safety

•

Proven infrastructure

capabilities with integrated

RAN and core

•

On going LTE pilot programs

–

Las Vegas, Miami Dade

•

FirstNet regional opportunities

•

Harris participation in FCC

interoperability board

•

Key alliances and partnerships

•

Family of ruggedized LTE/P25

devices and applications

LTE and

integrated

LTE/P25 devices

MBC-200 LTE

mobile terminal

LTE tablet

computer

Voice app

for LTE

Notional plan for

FirstNet

Active pilots

“Our vision is to bring the most

advanced capabilities of LTE in the

hands of Las Vegas First Responders.”

FirstNet Op Center

in CO (NTIA)

FirstNet Op

Center in DC

RF Communications

Page 33

2012 Investor and Analyst Meeting

Seamlessly bridging LTE and P25

systems…enabled by Harris IP Core

Harris LTE

BeOn

users

Cellular

system

P25

IP

system

Dispatch

P25

IP

users

Mobile

users

P25

IP

users

RF Communications

Page 34

2012 Investor and Analyst Meeting

Leveraging Tactical Communications

and Public Safety synergies

•

Leverage common Rochester manufacturing

•

Focus on cost of poor quality across business

•

Utilize low cost country sourcing

•

LTE for battlefield cellular and public safety

•

Advanced software defined radios

•

Tablet and “edge”

devices for the warfighter

and the first responder

•

U.S. Marine Corps Enterprise LMR network

•

DOJ IWN and Department of Energy

•

Trinidad, Morocco, UAE

•

Base infrastructure

•

Counter-terror, counter-narcotics

•

Disaster recovery

Operational excellence will reduce

cost and improve profitability

Complementary products and

technologies leverage IRAD investment

and enable differentiated solutions

Well-established U.S. Government

and international market positions

facilitate Public Safety expansion

Converging defense and public

safety mission requirements create

unique opportunities

GOVERNMENT COMMUNICATIONS SYSTEMS

Sheldon Fox

GROUP PRESIDENT

Government Communications Systems

Page 2

2012 Investor and Analyst Meeting

Executive summary

•

Government Communications Systems

remains well-positioned for growth

–

Solid foundation of franchise programs

–

Diverse program and customer portfolio

–

Major program areas currently well-funded

–

Large pipeline of new business opportunities

•

Delivering high-priority solutions in comms,

networks, classified and ISR –

areas expected

to receive funding priority

•

Strong operating margin –

superior program

execution and products portfolio

Government Communications Systems

Page 3

2012 Investor and Analyst Meeting

Well-positioned for continued

growth in markets served

National

Intelligence

~45% of revenue

NGA, ODNI, NRO,

other classified

Defense

~25% of revenue

Air Force, Army,

Navy, Marines

National

Civil

Defense

Civil

~30% of revenue

FAA, NOAA,

NASA

Revenue and operating margin

($million)

Based on guidance provided May 1, 2012. Reference non-GAAP reconciliation on the Harris investor relations website.

Government Communications Systems

Page 4

2012 Investor and Analyst Meeting

FAA NextGen

Core

+ 38%

+ 7%

Solid, sustainable core business

•

Strong franchise base with

major program areas

currently well-funded

•

Backlog increasing

•

Growth in proposals outstanding

Based on guidance provided May 1, 2012.

+ 2-3%

Guid

FY12

Guid

FY13

Guid

Top 20 programs

represent 70% of revenue

FY11

FY12

Funded backlog

FY11

FY12

Guid

Proposals outstanding

Government Communications Systems

Page 5

2012 Investor and Analyst Meeting

Strong franchises provide diversity

and platform for growth

National

Defense

FTI

Classified ground

Space

Satcom

Airborne

GOES-R

Revenue

Civil

Government Communications Systems

Page 6

2012 Investor and Analyst Meeting

Expanding the FAA franchise –

capability for the next 20 years

Data Communication and Integrated

Services (DCIS)

•

•

•

National Air Space Voice System (NVS)

•

•

•

•

Expected

award date

Summer 2012

Expected

award date

Winter 2012

Potential program value:

•

Harris prime –

awarded 2002

•

Nationwide air traffic mission network

•

99.999% of network availability

•

25,000+ services connected including SWIM

NAS Enterprise Messaging Service  (NEMS)

$5B

20 years

Digital messaging services between air

traffic tower and cockpit

Enterprise architecture, network

deployment and network services

Potential program value:  $700M, 17 years

Potential program value:   $700M, 15 years

Includes enterprise network engineering

Transition to VoIP infrastructure with 500

new IP switches

Recap of NAS voice enterprise

FAA Telecommunications

Infrastructure (FTI)

$3.5B, 15 years

Government Communications Systems

Page 7

2012 Investor and Analyst Meeting

Expanding the weather franchise –

value to new missions

U.S. Government ground opportunities

Potential program value:  $1B, 10 years

•

Harris prime –

awarded May 2009

•

Processing 5 Gb/sec of raw sensor data

•

Creating 30+ weather products delivered to

U.S. Government and global partners

DMSP

JPSS

Defense Weather Satellite

System (DWSS) –

USAF

•

•

•

•

Joint Polar Satellite System

(JPSS) –

NOAA

•

•

•

Expected

award date

Winter 2014

Expected

award date

Summer 2015

Geostationary Operational Environmental

Satellite (GOES-R) program

Potential program value:  $300M, 4 years

Highly affordable, state-of-the-art ground

solution leveraging GOES-R architecture

NOAA polar weather system

Potential program value:  $200M, 6 years

Strong value proposition for  leveraging

GOES-R investment for defense mission

Studies underway to define constellation

Replaces aging Defense Meteorological

Satellite Program (DMSP)

Government Communications Systems

Page 8

2012 Investor and Analyst Meeting

Space –

new frontiers for payloads,

services and affordability

Combined value:  $142M, 3 years

•

Harris sub –

awarded FY11

•

Mexsat –

22m commercial reflector

•

WGS –

Gimbaled dish antenna for military Ka

•

Inmarsat –

Gimbaled dish antenna for Comm’l Ka

Space structures and

electronics opportunities

Ka-band services

Hosted payloads

Expected

award date

beginning

Summer 2012

Expected

award date

beginning

Summer 2012

Deployable space structures

•

•

•

•

•

•

•

Small deployable reflectors with precision

surfaces and larger aperture

Lightweight fixed mesh reflectors for small bus

applications

Potential market:  $150M, 5 years

Growing mission area covering all

segments of space market

Aligns with market needs for responsiveness

and affordability

Programmable payload solution for multiple

applications

Potential market:  $250M, 5 years

Government Communications Systems

Page 9

2012 Investor and Analyst Meeting

Ground processing –

situational

awareness on demand

Potential program value:  $300M over 7 years

•

Harris prime –

awarded 2008/10

•

Enterprise wide systems and application services

•

Highly

advanced

technology

–

over

1.6M

lines

of

software delivered to date

GeoInt opportunities

Full Motion Video

(FMV) modernizations

Expected

award date

Winter 2012

Expected

award date

beginning 

Winter 2012

Potential program value:  $750M IDIQ, 10 years

•

Harris prime –

awarded 2003

•

Production of geospatial products for situational

awareness and precision operations supporting

intel, military and humanitarian missions

NRO ground enterprise

Global Geospatial Intelligence (GGI)

GeoInt Data Services (GDS)

Harris prime

New automation technologies for

geospatial data readiness

“On demand”

product generation

and delivery

Potential program value:  $300M, 5 years

“Video Operating System”

for

enterprise ISR

NGA Motion Imagery Services (NMIS)

Opportunities with network

modernization for NGA, SOCOM

and Air Force

Potential market:  $400M, 5 years

Government Communications Systems

Page 10

2012 Investor and Analyst Meeting

SATCOM –

global, secure

connectivity

Standard Transportable

Terminal

Small Fixed Terminal

Large Fixed X,

X/Ka-band Enterprise

Terminals

Hardened

Transportable

Terminal

Potential program value:  $650M, 10 years

•

Awarded April 2009

•

U.S. Army (CECOM)

•

Family of terminals: 4.8-meters to 12.2-meters

•

Supports Wideband Global SATCOM (WGS)

Core IDIQ opportunities

Global Tactical

Advanced

Communications Systems

(GTACS)

Harris prime

Multi-award IDIQ

$10B ceiling, 5 years

Army tactical comms

Communication and

Transmission Systems (CTS)

Harris prime

Multi-award IDIQ

$4B ceiling, 5 years

Army strategic comms

Expected

award date

Winter 2012

Expected

award date

Spring 2013

Modernization of Enterprise

Terminals (MET)

Government Communications Systems

Page 11

2012 Investor and Analyst Meeting

Airborne –

new capabilities for modern

aircraft and unmanned systems

Potential program value:  $4.2B

•

Advanced avionics infrastructure, high-speed fiber-optic

networking and switching

•

Multifunction Advanced Data Link (MADL)

Potential program value:  $600M

•

Processing and high speed networking avionics

•

Digital map, mass storage and  processing upgrades

•

Multifunction Information Distribution System (MIDS)

Airborne opportunities

F-35 Lightning II

F/A-18 Super Hornet

Unmanned systems

•

STUAS / Firescout

–

Comms relay payloads

•

Global Hawk

–

Anti-jam GPS

•

Secure data links / antennas

•

Advanced avionics

•

Potential value:  $180M, 5 years

F/A-18 expansions

•

F/A-18 modernizations / EW

–

Network Processors

–

NextGen Jammer Arrays

–

Obsolescence upgrades

•

F/A-18 International sales

•

Potential value:  $200M, 5 years

Expected

award dates

beginning

Winter 2012

Expected

award dates

beginning

Winter 2012

Government Communications Systems

Page 12

2012 Investor and Analyst Meeting

Strong operating margin

performance

•

Excellent execution on fixed-price and

cost-plus programs –

high award fees

•

Emphasis on operational efficiencies and

affordability to lower operating costs

•

Benefiting from product sales

Revenue mix

Cost-plus

Fixed-price

~10% products

Average award fees

Operating costs

Based on guidance provided May 1, 2012.

Engineering

Manufacturing

Wrap

rates

8% reduction

5% reduction

Government Communications Systems

Page 13

2012 Investor and Analyst Meeting

Increased R&D expands product set

($million)

Based on guidance provided May 1, 2012.

Products

Product Portfolio

Intelligence Data

Processing, Exploitation

and Dissemination

Space Communications

Products

SATCOM Terminals

Broadband Backhaul

Radios

Tactical Data Links

Tactical ISR

INTEGRATED NETWORK SOLUTIONS

DAN PEARSON

EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER

Integrated Network Solutions

Page 2

2012 Investor and Analyst Meeting

Executive summary

•

Portfolio shaping results in a more focused strategy

•

Leveraging proven capabilities in information technology, assured

communications

®

and situational awareness to address new growth

markets –

energy, maritime and healthcare

•

CapRock revenue is growing, and integration is driving improved

performance

•

IT Services business focusing on customer intimacy, leveraging IDIQ

vehicles, and maintaining a lean cost structure

•

Healthcare opportunities in government market are strong, commercial

healthcare is work-in-progress

Integrated Network Solutions

Page 3

2012 Investor and Analyst Meeting

Driving revenue growth and

improved operating performance

Based on guidance provided May 1, 2012.  Eliminations not shown.

Reference non-GAAP reconciliation on the Harris investor relations website.

Software development

and integration solutions

for growing complexity of

healthcare IT

Managed satellite

communications

solutions serving

operations in remote

and harsh environments

Government managed

IT services

Harris IT Services

Healthcare

Harris CapRock

ROS

9-11%

growth

3-4%

growth

1,445

1,000

897

($million)

12%

12%

8 -

11%

9%

FY09

FY10

FY11

FY12

Guid

FY13

Guid

7.5 -

8.5%

Integrated Network Solutions

Page 4

2012 Investor and Analyst Meeting

Formed an industry leader in

growing markets

CapRock

Communications

•

Satellite and terrestrial

•

Systems integration

•

Field services

•

Energy

•

Government

•

Maritime

Global Connectivity

Services

(Schlumberger)

•

Satellite and terrestrial

•

VSAT manufacturing

•

Field services

•

Submarine fiber

•

Energy

Acquired July 2010

Existing Harris BU

Acquired April 2011

Acquired March 2011

Harris Maritime

Communications

•

Satellite

•

Maritime

•

Subsea networks

Core180

Infrastructure

•

Terrestrial network

•

Government

Integrated Network Solutions

Page 5

2012 Investor and Analyst Meeting

CapRock business model

•

Highly specialized end-to-end solutions

•

Self-owned and operated global infrastructure

Integrated Network Solutions

Page 6

2012 Investor and Analyst Meeting

U.S. Government

Maritime

Energy

CAGR

12-14%

6-8%

16-18%

14-16%

Leadership addressing a growing

industry

2011 industry position

Maritime

U.S. Government

Energy

Source:  COMSYS and company estimates

2,850

($million)

Double-digit growth

Integrated Network Solutions

Page 7

2012 Investor and Analyst Meeting

Industry growth drivers

Source:  Company estimates

Energy

Government

Maritime

Source:  COMSYS Maritime VSAT Report 2010

Vessels Equipped With Stabilized VSATS

CAGR = 19%

Global Offshore Rig Count

CAGR = 7%

Source:  Rig Logix

Aggregate U.S. Government Bandwidth Demand (Mbps)

MILSATCOM Supply

Total SATCOM Demand

CAGR=9%

Market Opportunity

CAGR=4.5%

E&P Operators

CAGR=32%

Drilling Contractor

CAGR=23%

Cruise

CAGR=37%

Other Vessel

CAGR=23%

Source:  Company estimates

Source:  NSR GMSC8

Source:  NSR GMSC8

All frequencies included

CAGR = 8.4%

U.S.  Government SatCom Spending ($million)

0.000

1.024

2.048

3.072

4.096

2005

2007

2009

2011

2013

2015

Average Bandwidth Per Rig (Mbps)

0.000

1.024

2.048

3.072

4.096

2005

2007

2009

2011

2013

2015

Average

Bandwidth Per Vessel (Mbps)

Integrated Network Solutions

Page 8

2012 Investor and Analyst Meeting

Digital oilfield

Video Surveillance Above

and Below Decks

Remotely Operated

Vehicles

Wireless

Rig-Area-Networks™

Ultra Broadband

100 Mbps+ Network

Subsea Fiber

Networks

Success depends on

•

100x bandwidth of today

•

Every device IP connected

•

Multi-path communications

•

Applications aware network

Rig of the future

•

Improved situational awareness

•

Faster decision making

•

Real-time remote control

•

Increased automation

•

Lower operating costs

•

Safer work environment

Crew Infotainment

and Training

Spill Detection and

Prevention Sensors

Down-hole Drilling

Information

Integrated Network Solutions

Page 9

2012 Investor and Analyst Meeting

Royal Caribbean

Success depends on

•

100x bandwidth of today

•

Every device IP connected

•

Multi-path communications

•

Applications aware network

Cruise vessel of the future

•

Significantly enhanced guest experience

•

Improved crew morale

•

Faster decision making and real-time remote control

•

Lower operating costs

•

Safer work environment

Video

On

Demand

Entertainment

Mobile

Calling

Services

Video

Conferencing

and

Crew

Training

WiFi

Enabled

Passengers

Retail and

Concession

Integrated Network Solutions

Page 10

2012 Investor and Analyst Meeting

From “troops on the ground”

to

network-driven force-multiplier

Source:  Northern Sky Research 2012

Special Forces missions replacing 

large troop deployments

•

More use of commercial SATCOM

•

150 Mbps growing to >250 Mbps

UAV missions increasing by 30%

•

Single UAV mission uses up to 50 Mbps

•

3.5 Gbps growing to ~6.0 Gbps

Fixed intelligence and surveillance

sensors replacing troops on ground

•

Intelligence sites transmit terabytes per day

•

0.7 Gbps growing to ~1.5 Gbps

Allied governments following

U.S. DoD model

•

Network centric readiness

•

Key markets:  Brazil, UAE, Saudi Arabia

Integrated Network Solutions

Page 11

2012 Investor and Analyst Meeting

Shaping CapRock into a

franchise business

Strategic initiative

Business outcome

•

Grow share

•

Differentiate value proposition

•

Increase share of customer wallet

•

Increase field productivity

•

Improve customer satisfaction

•

Improve margins

•

Strengthen market retention

1.  Enhance sales team and leverage global presence

2.  Expand product and service portfolio

3.  Build on the scale of the business

4.  Improve service delivery and quality

5.  Achieve greater operational efficiency

•

Automate processes, consolidate

teleports and facilities, and create

room for investment

Integrated Network Solutions

Page 12

2012 Investor and Analyst Meeting

CapRock revenue growing and

operating performance improving

525

U.S. Government

Maritime

Energy

~400 basis

points

ROS

579

609

($million)

8%

8%

7%

0%

2%

4%

6%

8%

10%

12%

14%

16%

FY09*

FY10*

FY11*

FY12

Guid

FY13

Guid

Based on guidance provided May 1, 2012.  Reference non-GAAP reconciliation on the Harris investor relations website.  * Pro forma.

Integrated Network Solutions

Page 13

2012 Investor and Analyst Meeting

Tapping into Harris satellite communication

capabilities to expand offerings

Engineering

enhancements

SpaceTrack

antenna

•

•

•

Manufacturing

New

man-packable

antennas

•

•

•

UHF

experience

New

TacSat

managed

service

•

•

•

Adding new multiband configurations:  C, Ku and Ka

Single feed design reduces downtime for switching bands

Enables flexible “global roaming”

across networks

Replacing third-party equipment with in-house designs

Built to specifications, differentiates offering

Supports growth of CommandAccess service

Leverage RF Communications installed base of radios

Adapting Harris waveform to international market

First of its kind BLOS UHF satellite managed service

Integrated Network Solutions

Page 14

2012 Investor and Analyst Meeting

CapRock integration status

Integration focus

Status

Target

Financial,

back

office

and

IT

systems

–

4

Harris

financial,

back

office

and

IT

systems

–

1

Network

operation

centers

(NOC)

–

6

Network

operation

centers

(NOC)

–

4

Owned

teleports

–

9

Owned

teleports

–

5

Workforce rationalization

Workforce reduced 6% to date

No automated field service tools

Automated network management and field

service tools

Satellite buying power limited by spot

market acquisition

Life cycle economics through long-term

supplier agreements

Space segment utilization 85.9%

Antenna

platforms

in-sourced

–

1

Utilization

to

~90%

maximum

–

maintaining

operational flexibility while benefiting from

cross-vertical market portfolio management

Antenna platforms in-sourced 3 or more,

100% of 2.4M stabilized in-sourced

Completed

In process

Integrated Network Solutions

Page 15

2012 Investor and Analyst Meeting

•

Gain customer intimacy

–

DISA

–

DHS

–

Justice

–

Commercial Healthcare

•

Leverage IDIQ vehicles

•

Offer enhanced solutions

–

Mobility

–

Cloud

–

Cyber security

•

Support  franchise programs in

Government Communications

to increase customer intimacy

and Harris win rate on

new opportunities

IT Services –

facing a constrained

budget environment

What we do

Staff

augmentation

Managed

services

Systems and

network

integration

Product sales

Operational excellence

Opportunities

•

Lean  cost

structure

•

Customer

intimacy

•

Efficient

hiring and

training

•

Technical

expertise

•

Past

performance

Integrated Network Solutions

Page 16

2012 Investor and Analyst Meeting

IT Services revenue model

*Short term = product sales and contracts <12 months

Managed

services

59%

Product sales

11%

Staff

aug.

13%

Systems/

network

integration

16%

Sources of revenue

Short-term vs. long-term contracts*

Short-term

11%

Long-term

89%

Integrated Network Solutions

Page 17

2012 Investor and Analyst Meeting

Managed services

RFP

May 10

Submit

July 18

Award

February 2013

Transport

Harris prime

Enterprise

Services

CSC prime

Combined

bid

CSC prime

•

Harris-CSC team vs. HP

•

New operating model –

Federal Acquisition Regulation

(FAR) contract vs. commercial contract

•

Single award to HP

–

Commercial contract

•

Harris currently delivers transport

Integrated Network Solutions

Page 18

2012 Investor and Analyst Meeting

Systems and network integration

•

Potential program value:  $100M, 5 years

•

Design and install IT equipment for U.S. Army Materiel

Command (AMC)

•

Successful systems integration work led to long-term

managed services contract with AMC

Ft. Belvoir, VA

Huntsville,

AL

•

Potential program value:  $75M, 2 years

•

Migration of nine local Florida buildings and infrastructure

into new headquarters

•

Design, integration and migration of command, control,

communications, computers, and intelligence information

technology (C4/IT)

Integrated Network Solutions

Page 19

2012 Investor and Analyst Meeting

Accessing new customers

through IDIQs

Fiscal 2013

*Awaiting recompete or new IDIQ award.

Fiscal 2011

CIO-SP2i

EAGLE I

ECS III

GSA schedules

(IT 70, PES, MOBIS)

NETCENTS

GSA Alliant

CIO-SP3

EAGLE II*

ECS IV*

ENCORE II

FBI IT SSS

GSA:  Cloud BPA*,

Connections II

NETCENTS 2*

T4

TCI Pillar*

ITES-2S

GSA schedules

(IT 70, PES, MOBIS)

GSA Alliant

ITES-2S

Source:  TechAmerica 2011 Vision Conference

DHS TacCom

60%

77%

2011

2017

% Federal IT spend

using IDIQs

Integrated Network Solutions

Page 20

2012 Investor and Analyst Meeting

Healthcare Solutions –

connecting

the full continuum of care

•

Clinical enterprise portal

•

Single sign-on / context management

•

Business intelligence

•

Express –

for on-boarding to Nationwide

Health Information Network (NHIN)

•

Enterprise imaging as a service

•

Disaster recovery

•

Secure image sharing

•

Imaging software analytics

•

Managed services networks

and IT infrastructure

•

Cyber security

•

Standards based enterprise

software and systems integration

Interoperability

Imaging

Physicians

Hospitals

Regional

exchanges

States

Federal

agencies

Commercial

enterprises

IT Managed Services

Integrated Network Solutions

Page 21

2012 Investor and Analyst Meeting

Market drivers

Competitive landscape

Healthcare Solutions –

market and

competition

•

U.S. policy (meaningful use and

accountable care) using

reimbursements to drive Healthcare

IT and incent interoperability

•

Provide continuity of core and

lower costs

•

Digital transformation and growing

complexity of IT

Healthcare IT spend

Harris addressable

($billion)

Government

Commercial

Source:  IDC, HIMSS Analytics

0

2

4

6

8

10

12

14

2011

2012

2013

2014

2015

Integrated Network Solutions

Page 22

2012 Investor and Analyst Meeting

Recent wins in federal healthcare

•

Awarded June 2011

•

8 large + 7 small businesses

•

$12B ceiling over 5 year ordering period

•

Supports

VA

plan

for

a

21

st

century IT organization

•

Upgrade IT, streamline operations, modernize care

•

$112M awarded to date

VA –

DoD Service Oriented Architecture Suite

Wireless Infrastructure Installation

Awarded March 2012

Awarded September 2011

$80M over 5 years

$19M over 2 years for 26 sites (eventually 85 more sites)

Deploy commercial enterprise service business to VA/DoD to

facilitate data sharing and application communication for iEHR

Install clinical and administrative WiFi infrastructure

VA Transformation Twenty-One Total Technology (T4) IDIQ

Integrated Network Solutions

Page 23

2012 Investor and Analyst Meeting

Government

Healthcare –

government growing,

commercial a work-in-progress

Commercial

Based on guidance provided May 1, 2012. 

Profitability

Government

~10

~200

From startup to 

$200M in 4 years

($million)

Healthcare Solutions revenue

FY08

FY09

FY10

FY11

FY12

Guid

FY13

Guid

Commercial

Integrated Network Solutions

Page 24

2012 Investor and Analyst Meeting

2. Next generation software architecture

Commercial healthcare challenges

•

Lost partners who

viewed Harris as a

competitor –

other

partners purchased

by competitors

•

Building the channel

through integrators

and consultants

CAREfx

®

orders

3 quarters YTD

Direct

Indirect

channel

1. Rebuild the channel

Typical Hospital  > 40 custom integration points

1. Labs

2. Radiology

3. Cardio

4…

40. Pharmacy

NextGen

Architecture

Based on guidance provided May 1, 2012.

•

Current product requires high-cost customization

•

New architecture based on Federal NHIN solution

•

Converting from high-level customization to a

more configured solution…lowering costs

up

20%

down

67%

FY11

FY12

Guid

Integrated Network Solutions

Page 25

2012 Investor and Analyst Meeting

Integrated Network Solutions

•

Harris CapRock and Healthcare

Solutions markets are large

and growing

•

IT Services market is flat/down

•

Harris CapRock revenue and

margins growing

•

Healthcare Solutions is a “tale of

two cities”...we are on the path to

fix the commercial business

Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosures

2012 Investor and Analyst Meeting

Reconciliation of Non-GAAP Financial Measures

Page 2

2012 Investor and Analyst Meeting

Regulation G Disclosures

To supplement our condensed consolidated financial statements presented in accordance with

U.S. generally accepted accounting principles (GAAP), we provide additional measures of

segments’ operating income (loss) and income from continuing operations per diluted common

share attributable to Harris Corporation common shareholders, adjusted to exclude certain

costs, charges, expenses and losses. Harris management believes that these non-GAAP

financial measures, when considered together with the GAAP financial measures, provide

information that is useful to investors in understanding period-over-period operating results

separate and apart from items that may, or could, have a disproportionately positive or

negative impact on results in any particular period. Harris management also believes that

these non-GAAP financial measures enhance the ability of investors to analyze Harris’

business trends and to understand Harris’ performance. In addition, Harris may utilize non-

GAAP financial measures as a guide in its forecasting, budgeting, and long-term planning

process and to measure operating performance for some management compensation

purposes. Any analysis of non-GAAP financial measures should be used only in conjunction

with results presented in accordance with GAAP. A reconciliation of these non-GAAP financial

measures with the most directly comparable financial measures calculated in accordance with

GAAP follows:

Reconciliation of Non-GAAP Financial Measures

Page 3

2012 Investor and Analyst Meeting

Reconciliation of Non-GAAP Financial Measures

Mr.

Brown’s

Presentation

–

pages

4

and

18

and

Mr.

McArthur’s

Presentation

–

pages

2

and

3

($ in millions)

FY08

FY09

FY10

FY11

FY12P

Harris revenue

4,596.1

$        

5,005.0

$       

5,206.1

$       

5,924.6

$       

~$5,450

Less Cyber Integrated Solutions revenue

(0.7)

(3.6)

Less Broadcast Communications revenue, adjusted for eliminations

(640.1)

(574.3)

(480.4)

(502.6)

Revenue, excluding Cyber Integrated Solutions and Broadcast Communications

3,956.0

$        

4,430.7

$       

4,725.0

$       

5,418.4

$       

~$5,450

GAAP operating income - Harris

704.0

$           

538.0

$          

912.8

$          

970.2

$          

$935 - $974

Exclude GAAP operating loss - Cyber Integrated Solutions

3.5

22.4

Exclude GAAP operating (income) loss - Broadcast Communications, adjusted for eliminations

(31.1)

243.7

32.7

2.5

GAAP operating income, excluding Cyber Integrated Solutions and Broadcast Communications

672.9

$           

781.7

$          

949.0

$          

995.1

$          

$935 - $974

Non-GAAP adjustments, excluding Cyber Integrated Solutions and Broadcast Communications

1.7

(1)

10.1

(2)

25.8

(3)

46.6

(4)

42

(5)

Non-GAAP operating income, excluding Cyber Integrated Solutions and Broadcast Communications

674.6

$           

791.8

$          

974.8

$          

1,041.7

$       

$977 - $1,016

Non-GAAP operating income margin

17.1%

17.9%

20.6%

19.2%

18% - 19%

(1)

Adjustments relate to costs associated with our acquisition of Multimax Incorporated ("Multimax").

(2)

Adjustments relate to costs associated with our acquisitions of the Tyco Electronics Wireless Systems business ("Wireless Systems") from Tyco Electronics Ltd. and

Crucial Security, Inc. ("Crucial Security").

(3)

Adjustments relate to costs associated with our acquisitions of Wireless Systems, Crucial Security, the Air Traffic Control business unit of SolaCom Technologies Inc. ("SolaCom ATC"),

Patriot Technologies, LLC ("Patriot") and CapRock Holdings, Inc. and its subsidiaries, including CapRock Communications, Inc. (collectively, "CapRock").

(4)

Adjustments relate to costs associated with our acquisitions of CapRock, the Global Connectivity Services business of the Schlumberger group ("Schlumberger GCS"),

Carefx Corporation ("Carefx") and the terrestrial network infrastructure assets of the government business of Core180, Inc. ("Core180").

(5)

Adjustments relate to costs associated with our acquisitions of CapRock, Schlumberger GCS and Carefx.

Revenue / Operating Income Margin

Reconciliation of Non-GAAP Financial Measures

Page 4

2012 Investor and Analyst Meeting

Reconciliation of Non-GAAP Financial Measures

Mr.

Brown’s

Presentation

–

pages

4

and

18

Mr.

McArthur’s

Presentation

–

page

9

FY08

FY09

FY10

FY11

FY12P

FY13P

Income from continuing operations per diluted share:

GAAP EPS - Harris

3.31

$  

2.33

$  

4.28

$  

4.60

$   

$4.90-5.00

$5.10-5.30

Less GAAP EPS - Cyber Integrated Solutions

0.01

0.11

Less GAAP EPS - Broadcast Communications

(0.16)

1.40

0.13

(0.02)

and Broadcast Communications

3.15

$  

3.73

$  

4.42

$  

4.69

$   

$4.90-5.00

$5.10-5.30

Solutions and Broadcast Communications

0.01

(1)

0.05

(2)

0.15

(3)

0.29

(4)

0.25

(5)

Solutions and Broadcast Communications

3.16

$  

3.78

$  

4.57

$  

4.98

$   

$5.15-5.25

$5.10-5.30

(1)

Adjustments relate to costs associated with our acquisition of Multimax.

(2)

Adjustments relate to costs associated with our acquisitions of Wireless Systems and Crucial Security.

(3)

Adjustments relate to costs associated with our acquisitions of Wireless Systems, Crucial Security, SolaCom ATC, Patriot and CapRock.

(4)

Adjustments relate to costs associated with our acquisitions of CapRock, Schlumberger GCS, Core180 and Carefx.

(5)

Adjustments relate to costs associated with our acquisitions of CapRock, Schlumberger GCS and Carefx.

GAAP EPS, excluding Cyber Integrated Solutions

Non-GAAP adjustments, excluding Cyber Integrated

Earnings Per Share

Fiscal '08 Actual to Fiscal '13 Guidance

Non-GAAP EPS, excluding Cyber Integrated

Reconciliation of Non-GAAP Financial Measures

Page 5

2012 Investor and Analyst Meeting

Reconciliation of Non-GAAP Financial Measures

Mr.

McArthur’s

Presentation

–

pages

2,

3

and

9

and

Mr.

Pearson’s

Presentation

–

page

3

($ in millions)

FY09

FY10

FY11

FY12P

FY13P

GAAP operating income (loss)

(133.6)

$     

85.3

$        

70.2

$        

$76 - $94

$130 - $184

Exclude Cyber Integrated Solutions operating loss

3.5

22.4

Exclude Broadcast Communications operating (income) loss, adjusted for eliminations

242.6

31.1

(1.9)

GAAP operating income, excluding Cyber Integrated Solutions and Broadcast Communications

109.0

$      

119.9

$      

90.7

$        

$76 - $94

$130 - $184

Non-GAAP adjustments, excluding Cyber Integrated Solutions and Broadcast Communications

-

4.1

(1)

46.6

(2)

42

(3)

Non-GAAP operating income, excluding Cyber Integrated Solutions and Broadcast Communications (A)

109.0

$      

124.0

$      

137.3

$      

$118 - $136

$130 - $184

Integrated Network Solutions revenue

1,476.1

$   

1,485.1

$   

1,985.8

$   

$1,575 - $1,604

$1,623 - $1,668

Less Cyber Integrated Solutions revenue

-

(0.7)

(3.6)

Less Broadcast Communications revenue, adjusted for eliminations

(578.8)

(484.9)

(536.9)

Revenue, excluding Cyber Integrated Solutions and Broadcast Communications (B)

897.3

$      

999.5

$      

1,445.3

$   

$1,575 - $1,604

$1,623 - $1,668

Operating margin (A)/(B)

12.1%

12.4%

9.5%

7.5% to 8.5%

8% to 11%

(1)

Adjustments relate to costs associated with our acquisitions of Patriot and CapRock.

(2)

Adjustments relate to costs associated with our acquisitions of CapRock, Schlumberger GCS, Core180 and Carefx.

(3)

Adjustments relate to costs associated with our acquisitions of CapRock, Schlumberger GCS and Carefx.

Integrated Network Solutions Segment - Operating Margin

Reconciliation of Non-GAAP Financial Measures

Page 6

2012 Investor and Analyst Meeting

Reconciliation of Non-GAAP Financial Measures

Mr.

McArthur’s

Presentation

–

pages

2,

3

and

9

and

Mr.

Fox’s

Presentation

–

page

3

($ in millions)

FY09

FY10

FY11

FY12P

FY13P

GAAP operating income

199.2

$      

227.4

$      

227.0

$      

$251 - $256

$256 - $264

Non-GAAP adjustments

0.6

(1)

2.4

(2)

Non-GAAP operating income (A)

199.8

$      

229.8

$      

227.0

$      

$251 - $256

$256 - $264

Revenue (B)

1,864.2

$   

1,747.3

$   

1,776.5

$   

$1,794 - $1,830

$1,830 - $1,885

Operating margin (A)/(B)

10.7%

13.2%

12.8%

14.0%

14.0%

(1)

Adjustments relate to costs associated with our acquisition of Crucial Security.

(2)

Adjustments relate to costs associated with our acquisitions of Crucial Security and SolaCom ATC.

Government Communications Systems Segment - Operating Margin

Reconciliation of Non-GAAP Financial Measures

Page 7

2012 Investor and Analyst Meeting

Reconciliation of Non-GAAP Financial Measures

Mr.

McArthur’s

Presentation

–

pages

2,

3

and

9

and

Mr.

Mehnert’s

Presentation

–

pages

3

and

6

($ in millions)

FY09

FY10

FY11

FY12P

FY13P

GAAP operating income

571.5

$      

707.4

$      

787.0

$      

$695 - $710

$607 - $647

Non-GAAP adjustments (1)

9.5

19.3

Non-GAAP operating income (A)

581.0

$      

726.7

$      

787.0

$      

$695 - $710

$607 - $647

Revenue (B)

1,760.6

$   

2,067.2

$   

2,289.2

$   

$2,106 - $2,152

$2,022 - $2,087

Operating margin (A)/(B)

33.0%

35.2%

34.4%

33.0%

30% to 31%

(1)

Adjustments relate to costs associated with our acquisition of Wireless Systems.

RF Communications Segment - Operating Margin

Reconciliation of Non-GAAP Financial Measures

Page 8

2012 Investor and Analyst Meeting

Reconciliation of Non-GAAP Financial Measures

Mr.

McArthur’s

Presentation

–

page

4

($ in millions)

FY09

FY10

FY11

FY12P

FY13P

Receivables

770.8

$     

736.0

$     

836.5

$     

724.2

$     

711.7

$     

Inventories

607.2

615.3

720.8

634.9

590.5

Current other assets

58.6

32.8

58.9

59.7

62.7

Payables and accrued expenses

(881.6)

(836.6)

(1,012.8)

(837.7)

(867.7)

Advance payments

(121.7)

(175.6)

(232.8)

(227.8)

(188.1)

Net operating working capital (A)

433.3

371.9

370.6

353.3

309.1

150.9

123.2

110.8

-

-

282.4

$     

248.7

$     

259.8

$     

353.3

$     

309.1

$     

Revenue, excluding Cyber Integrated Solutions and Broadcast Communications (B)

4,430.7

$  

4,725.0

$  

5,418.5

$  

5,450.0

$  

5,504.0

$  

Net operating working capital as a percentage of sales (A)/(B)

6.4%

5.3%

4.8%

6.5%

5.6%

Net Operating Working Capital as a Percentage of Sales

Less Cyber Integrated Solutions and Broadcast Communications net operating working capital, adjusted for eliminations

Ending net operating working capital - excluding Cyber Integrated Solutions and Broadcast Communications

Reconciliation of Non-GAAP Financial Measures

Page 9

2012 Investor and Analyst Meeting

Reconciliation of Non-GAAP Financial Measures

Mr.

McArthur’s

Presentation

–

pages

4,

5

and

9

($ in millions)

Guidance

Guidance

FY09

FY10

FY11

FY12*

FY13*

Operating cash flow

666.8

$    

802.7

$          

833.1

$          

825.0

$          

850.0

$         

Less capital expenditures

(121.8)

(198.0)

(324.9)

(245.0)

(220.0)

Free cash flow (A)

545.0

$    

604.7

$          

508.2

$          

580.0

$          

630.0

$         

GAAP net income

312.4

$    

561.6

$          

588.0

$          

559.7

$          

574.3

$         

Exclude Cyber Integrated Solutions GAAP net loss

-

2.1

13.9

Exclude Broadcast Communications GAAP net (income) loss

187.3

17.4

(2.2)

GAAP net income, excluding Broadcast Communications and Cyber Integrated Solutions

499.7

581.1

599.7

559.7

574.3

Non-GAAP adjustments, excluding Cyber Integrated Solutions and Broadcast Communications

6.4

(1)

19.7

(2)

36.8

(3)

41.5

(4)

Non-GAAP net income, excluding Cyber Integrated Solutions and Broadcast Communications (B)

506.1

$    

600.8

$          

636.5

$          

601.2

$          

574.3

$         

Free cash flow / net income (A) / (B)

108%

101%

80%

96%

110%

(1)

Adjustments relate to costs associated with our acquisitions of Wireless Systems and Crucial Security.

(2)

Adjustments relate to costs associated with our acquisitions of Wireless Systems, Crucial Security, SolaCom ATC, Patriot and CapRock.

(3)

Adjustments relate to costs associated with our acquisitions of CapRock, Schlumberger GCS, Core180 and Carefx.

(4)

Adjustments relate to costs associated with our acquisitions of CapRock, Schlumberger GCS and Carefx.

*

Based on mid-point of guidance provided May 1, 2012.

Free Cash Flow

Reconciliation of Non-GAAP Financial Measures

Page 10

2012 Investor and Analyst Meeting

Reconciliation of Non-GAAP Financial Measures

Mr.

McArthur’s

Presentation

–

page

8

($ in millions)

FY11

FY12P

GAAP operating income (1)

970.2

$       

957.1

$             

Taxes (~33%)

(323.4)

(317.8)

GAAP operating income after-tax (A)

646.8

$       

639.3

$             

Equity

2,512.0

$    

1,984.5

$         

Debt

2,072.1

2,019.9

Capital lease adjustment (2)

129.6

137.9

Cash and cash equivalents

(366.9)

(300.0)

Ending invested capital

4,346.8

3,842.3

Beginning invested capital

3,071.8

4,346.8

Average invested capital (B)

3,709.3

$    

4,094.6

$         

Return on invested capital (A)/(B)

17.4%

15.6%

(1)

FY12P excludes Cyber Integrated Solutions and Broadcast Communications.

(2)

Adjustment made to reflect rating agency guidelines.

Return on Invested Capital

Reconciliation of Non-GAAP Financial Measures

Page 11

2012 Investor and Analyst Meeting

Reconciliation of Non-GAAP Financial Measures

Mr.

McArthur’s

Presentation

–

page

8

($ in millions)

FY11

FY12P

Short-term debt

180.0

$      

131.5

$      

Current portion of long-term debt

4.9

5.2

Capital lease adjustment (1)

129.6

137.9

Long-term debt

1,887.2

1,883.2

Debt (A)

2,201.7

$   

2,157.8

$   

Equity

2,512.0

1,984.5

Debt plus equity (total capital) (B)

4,713.7

$   

4,142.3

$   

Debt to total capital (A)/(B)

46.7%

52.1%

(1)

Adjustment made to reflect rating agency guidelines.

Debt to Total Capital

Reconciliation of Non-GAAP Financial Measures

Page 12

2012 Investor and Analyst Meeting

Reconciliation of Non-GAAP Financial Measures

Mr.

McArthur’s

Presentation

–

page

8

($ in millions)

FY11

FY12P

Short-term debt

180.0

$    

131.5

$          

Current portion of long-term debt

4.9

5.2

Capital lease adjustment (1)

129.6

137.9

Long-term debt

1,887.2

1,883.2

Total debt (A)

2,201.7

$ 

2,157.8

$       

GAAP income before income taxes (2)

880.7

$    

858.0

$          

Net interest expense

87.6

110.1

Depreciation and amortization

212.0

264.5

EBITDA (B)

1,180.3

$ 

1,232.6

$       

Debt / EBITDA (A)/(B)

1.9

times

1.8

times

($ in millions)

FY11

FY12P

GAAP income before income taxes (2)

880.7

$    

858.0

$          

Net interest expense

87.6

110.1

Depreciation and amortization

212.0

264.5

EBITDA (C)

1,180.3

$ 

1,232.6

$       

Net interest expense (D)

87.6

$      

110.1

$          

EBITDA / interest expense (C)/(D)

13.5

times

11.2

times

(1) Adjustment made to reflect rating agency guidelines.

(2) FY12P excludes amounts for Cyber Integrated Solutions and Broadcast Communications.

Debt to EBITDA

EBITDA to Interest Expense

Reconciliation of Non-GAAP Financial Measures

Page 13

2012 Investor and Analyst Meeting

Reconciliation of Non-GAAP Financial Measures

Mr.

McArthur’s

Presentation

–

page

8

($ in millions)

FY11

FY12P

Operating cash flow

833.1

$      

825.0

$      

Less capital expenditures

(324.9)

(245.0)

Free cash flow (C)

508.2

$      

580.0

$      

Debt (D)

2,201.7

$   

2,157.8

$   

Free cash flow to debt (C)/(D)

23.1%

26.9%

Free Cash Flow to Debt

Reconciliation of Non-GAAP Financial Measures

Page 14

2012 Investor and Analyst Meeting

Reconciliation of Non-GAAP Financial Measures

Mr.

Pearson’s

Presentation

–

page

12

($ in millions)

FY09

FY10

FY11

FY12P

Revenue

32.8

$        

34.2

$        

449.6

$              

632.2

$        

Impact of acquisitions (1)

492.2

544.8

159.5

-

Pro forma revenue

525.0

$      

579.0

$      

609.1

$              

632.2

$        

GAAP operating income (loss)

0.8

$          

(0.6)

$         

(21.9)

$               

7.4

$             

Impact of acquisitions (1)

41.1

45.0

18.3

-

Non-GAAP adjustments

-

2.6

(2)

44.3

(1)

39.2

(3)

Pro forma operating income

41.9

$        

47.0

$        

40.7

$                

46.6

$          

ROS

8%

8%

7%

7%

(1)

Adjustments relate to our acquisitions of CapRock, Schlumberger GCS and Core180.

(2)

Adjustments relate to our acquisition of CapRock.

(3)

Adjustments relate to our acquisitions of CapRock and Schlumberger GCS.

Harris CapRock - Pro forma basis