| 12014 Annual Meeting of Shareholders| 10/24/2014
Annual Meeting
of Shareholders
William M. BrownChairman, President &
Chief Executive Officer
| 22014 Annual Meeting of Shareholders| 10/24/2014
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 provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements in this presentation include but are not limited to: earnings, revenue, operating margin, free cash flow, tax
rate and other guidance for fiscal 2015; potential contract opportunities and awards; the potential value and timing of contract awards;
the value of opportunity pipelines; and statements regarding outlook, including expected revenue, orders, cash flow, share repurchases
and dividends and potential growth and expansion. 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 reduction 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, sequestration and cost-cutting initiatives); 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; risks inherent with large long-term fixed-price contracts, particularly the ability to contain cost overruns; financial and
government and regulatory risks relating to international sales and operations; the continued effects of the general weakness in the
global economy and U.S. Government’s budget deficits, national debt and sequestration; the company’s 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 company’s ability to manage and integrate acquired businesses; performance of the
company’s 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; 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 this presentation are made as of the date of this
presentation, 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.
Forward-looking statements
| 32014 Annual Meeting of Shareholders| 10/24/2014
Financial performance
FY14 performance
Revenue down 2%
EPS up 2%
Free cash flow up 3%
($million except EPS)
*Reference non-GAAP reconciliation on the Harris investor relations website.
4,725
5,418 5,451
5,112 5,012
21% 19% 18% 18% 18%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
FY10 FY11 FY12 FY13 FY14
EPS*
Operating
income
margin*
Revenue
$4.57 $4.98 $5.20 $4.90 $5.00
| 42014 Annual Meeting of Shareholders| 10/24/2014
Central Asia
$160M
35.2% 34.4%32.8%
31.7% 30.7%
0
500
1000
1500
2000
2500
3000
FY10 FY11 FY12 FY13 FY14
RF Communications
2,1442,289
2,067
1,849
Operating
income
margin*
PSPC
DoD
International
Down
1%
-12%
-20%
+25%
Notable AccomplishmentsRevenue ($million)
*Reference non-GAAP reconciliation on the Harris investor relations website.
1,828
MNVR
$141M
Australia
$111M
USMC
$97M
US Army
$109M
Mobile County
$40M
| 52014 Annual Meeting of Shareholders| 10/24/2014
Government Communications Systems
Commercial
Broadband Satellite
Program
F-35 Common
Components and
Data Link
$150M
Notable AccomplishmentsRevenue ($million)
13.3% 12.9%14.2% 14.7% 15.4%
0
500
1000
1500
2000
2500
FY10 FY11 FY12 FY13 FY14
1,7291,786 1,784 1,801
1,718
Operating
income
margin*
Civil
National
Defense
Data CommNetwork Services
(DCNS)
Foundation GEOINT
Content
Management
*Reference non-GAAP reconciliation on the Harris investor relations website.
$133M $120M
Joint
Strike
Fighter
$770M
Up
1%
| 62014 Annual Meeting of Shareholders| 10/24/2014
Integrated Network Solutions
Dept of Veterans
Affairs
$89M
Notable AccomplishmentsRevenue ($million)
12.1%9.4% 8.1% 8.4% 8.0%
(100)
400
900
1,400
1,900
FY10 FY11 FY12 FY13 FY14
1,6101,488
1,027
1,576
Operating
income
margin*
Healthcare
IT Services
CapRock
Down
7%
Carnival
102
ships
Dept of State
$29M
*Reference non-GAAP reconciliation on the Harris investor relations website.
1,463
Channel Partners
UK/Canada
Partnerships
Energy
$135M
| 72014 Annual Meeting of Shareholders| 10/24/2014
Objective Measure
Improve customer satisfactionBU specific; e.g. on time
delivery; zero out of box failures
Objective Measure
Deliver supply chain productivitySupply chain savings (OI & total)
$, % of spend
Increase labor productivityLabor productivity $, % of labor
cost
Improve cost of poor quality
(warranty, scrap, rework, turnbacks,
escapes)
COPQ improvement $, % of total
cost of sales
Improve overhead leverageCost to serve $, % of revenue,
% improvement
Improve competitive rates % improvement
ROS % (government programs)
GM % (commercial programs)
NRM % (targeted programs)
Objective Measure
Improve net working capital Days improvement
Capex % of revenue
Capex % of depreciation
Improve return on invested capital ROIC
Cu
sto
me
r
Sa
tis
fac
tio
n
Are we exceeding our customers' expectations?
Pro
du
cti
vit
y
Are we improving year over year?
Improve program execution /
performance
As
se
t V
elo
cit
y
How fast are our assets being used to make more money?
Improve capital intensity
Objective Measure
Improve customer satisfactionBU specific; e.g. on time
delivery; zero out of box failures
Objective Measure
Deliver supply chain productivitySupply chain savings (OI & total)
$, % of spend
Increase labor productivityLabor productivity $, % of labor
cost
Improve cost of poor quality
(warranty, scrap, rework, turnbacks,
escapes)
COPQ improvement $, % of total
cost of sales
Improve overhead leverageCost to serve $, % of revenue,
% improvement
Improve competitive rates % improvement
ROS % (government programs)
GM % (commercial programs)
NRM % (targeted programs)
Objective Measure
Improve net working capital Days improvement
Capex % of revenue
Capex % of depreciation
Improve return on invested capital ROIC
Cu
sto
me
r
Sa
tis
fac
tio
n
Are we exceeding our customers' expectations?
Pro
du
cti
vit
y
Are we improving year over year?
Improve program execution /
performance
As
se
t V
elo
cit
y
How fast are our assets being used to make more money?
Improve capital intensity
Objective Measure
Improve customer satisfactionBU specific; e.g. on time
delivery; zero out of box failures
Objective Measure
Deliver supply chain productivitySupply chain savings (OI & total)
$, % of spend
Increase labor productivityLabor productivity $, % of labor
cost
Improve cost of poor quality
(warranty, scrap, rework, turnbacks,
escapes)
COPQ improvement $, % of total
cost of sales
Improve overhead leverageCost to serve $, % of revenue,
% improvement
Improve competitive rates % improvement
ROS % (government programs)
GM % (commercial programs)
NRM % (targeted programs)
Objective Measure
Improve net working capital Days improvement
Capex % of revenue
Capex % of depreciation
Improve return on invested capital ROIC
Cu
sto
me
r
Sa
tis
fac
tio
n
Are we exceeding our customers' expectations?
Pro
du
cti
vit
y
Are we improving year over year?
Improve program execution /
performance
As
se
t V
elo
cit
y
How fast are our assets being used to make more money?
Improve capital intensity
Excellence and Innovation
Lean Six Sigma
CUSTOMER
SATISFACTION
PRODUCTIVITY
ASSET VELOCITY
Tools
Metrics
Training
228
240
219
254
264
4.8%4.4%
4.0%
5.0%5.3%
FY10 FY11 FY12 FY13 FY14
Company-funded R&D Spend
% of
revenue
($million)
Pre-Launch FY14 FY15
Yellow
Belt
Green
Belt
Black
Belt
White
Belt
Forecast
~3x
~2x
Source: Annual SEC filings
| 82014 Annual Meeting of Shareholders| 10/24/2014
605
508
619 655 675
(198)
(325)
(234)
(178)(209)
FY10 FY11 FY12 FY13 FY14
Cash generation and deployment
Philosophy
Fully fund internal requirements
Pursue accretive acquisitions
Maintain healthy balance sheet
Return cash to shareholders
101%
80%
102%
119%125%
Free cash flow
to non-GAAP
net income*
Free cash
flow*
CapEx
*Reference non-GAAP reconciliation on the Harris investor relations website.
($million)
| 92014 Annual Meeting of Shareholders| 10/24/2014
32 43 58 82 107 115 127 140 165 180 ~200
56 45
251 235
132
208
256
474
415
309
~200
141 142 141
137
133
130
126
115 111
107
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15Guidance
239
Return cash to shareholders
Dividends and
repurchases/
free cash flow * 37% 47% 99% 77% 44% 53% 75% 99% 89% 73% 77%**
($million)
~$3.4 billion
dividends/repurchases
over last ten years
323
383
613
580
490
Dividends
Share repurchases
Average fully diluted
share count (millions)
~400
88 88
310 316
**Based on midpoint of guidance provided July 29, 2014.
*Reference non-GAAP reconciliation on the Harris investor relations website.
| 102014 Annual Meeting of Shareholders| 10/24/2014
$0.24 $0.32
$0.44
$0.60
$0.80 $0.88
$1.00
$1.22
$1.48
$1.68
$1.88
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Track record of double-digit dividend
growth
12% increase
approved
August 2014
| 112014 Annual Meeting of Shareholders| 10/24/2014
Annual Meeting
of Shareholders