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2009 Corporate Overview

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Title: 2009 Corporate Overview


1
2009 Corporate Overview
RF COMMUNICATIONS GOVERNMENT
COMMUNICATIONS SYSTEMS BROADCAST
COMMUNICATIONS
2
Segments and business units
Government Communications Systems
RF Communications
Dept of Defense
Defense Programs
International
National Programs
Civil Programs
Public Safety
IT Services
Broadcast Communications
3
Revenue mix
Government Communications Systems
RF Communications
Defense Programs
Dept of Defense
National Programs
International
Civil Programs
Public Safety
IT Services
Broadcast
Broadcast Communications
Based on last twelve months pro forma revenue as
of April 3, 2009 of 5.4 billion, including
Wireless Systems and Crucial Security and
excluding Harris Stratex Networks. Reference
non-GAAP reconciliation on the Harris investor
relations website.
4
Different business models
Government
Commercial
Based on last twelve months pro forma revenue as
of April 3, 2009 of 5.4 billion, including
Wireless Systems and Crucial Security and
excluding Harris Stratex Networks. Reference
non-GAAP reconciliation on the Harris investor
relations website.
5
Solid financial track record
Revenue
Earnings per share
( in billions)
16 CAGR (reported) 12 CAGR (organic)
22 CAGR
4.9
3.77-3.79
4.6
3.35
3.7
2.71
3.1
2.15
Based on 2009 guidance provided on June 1, 2009.
Excludes Harris Stratex Networks. Reference
non-GAAP reconciliation on the Harris investor
relations website.
6
Strategies for growth
  • Increase technology-based new product
    introductions
  • Expand addressable markets and customer base
  • Invest in international markets and channels
  • Leverage technology transfer across business
    segments
  • Focus on supply chain and operations excellence
  • Complete strategic acquisitions to enhance the
    portfolio

7
Engineering RD investments
Fiscal 2008 980 million
Government Funded732
Internally Funded248
( in millions)
248
196
169
118
90
FY04
FY05
FY06
FY07
FY08
Excludes Harris Stratex Networks. Reference
non-GAAP reconciliation on the Harris investor
relations website.
8
New products growth
Percentage of revenue from new products
Revenue
( in millions)
31
49 CAGR
741
25
24
524
446
16
226
LTM
FY08
FY07
FY06
4/03/09
4/03/09
Based on revenue from products introduced within
the prior 3 years and includes RF Communications,
Broadcast Communications and Wireless Products
Group.
9
RF addressable market expansion
10.7B
Legacy tactical radio market
Expanded core tactical radio market
Expanding into other adjacent markets
8.7B
International Land Mobile Radios and Systems
7.0B
6.4B

2.7B
U.S. Land Mobile Radios and Systems
1.6B
CY12 public safety market
CY07
CY08
CY12
CY06
CY05
10
International growth
Revenue
Geographic mix
( in millions)
CALA
986
22 CAGR
EMEA
760
APAC
634
549
North America
4/03/09
Excludes Harris Stratex Networks. Reference
non-GAAP reconciliation on the Harris investor
relations website.
11
RF Communications
12
Principal products
  • Military tactical radios
  • Interoperable Falcon II,software-defined
    tactical radios
  • Falcon III multiband, multimission,
    JTRS-compliant tactical radios
  • HF, VHF, UHF and multiband manpack, vehicular,
    handheld, secure personal radios
  • Products for adjacent markets
  • Wideband High Capacity Line of Sight radios
  • MIL Spec BGAN INMARSAT terminals
  • Unmanned Ground Sensors
  • Tactical vehicular intercom systems
  • Handheld ISR video receivers
  • Multiband public safety radios
  • Unity XG-100, RF-1033M
  • Cryptographic solutions
  • NSA-recognized leaders in embedded encryption
    Sierra, Citadel
  • Communications security terminals

13
Global ground tactical radio market leadership
Harris 37
Harris 42
AllOthers 8
ITT 21
Selex 2
Thales 16
Rohde Schwarz 2
Raytheon 4
Tadiran 5
Harris market share increased from 37 in CY 2007
to 42 in CY 2008 in a market that grew 11
Harris market share has doubled over the past 5
years
Harris market share estimates based on calendar
year 2008 ground-based, global tactical radio
market of 3.8B compared to 3.4B in the prior
year.
14
Long-term market drivers
  • U.S. Department of Defense
  • Rapidly evolving mission requirements of
    irregular warfare are driving changes in doctrine
    and force structure and the application of new
    technologies that require enhanced communication
  • Secure high-speed mobile networking to improve
    situational awareness and enable data-intensive
    ISR applications
  • Deployment of smaller, more mobile, more
    autonomous and better protected units
  • Expansion of U.S. Army, USMC and U.S. Special
    Operations Command
  • Early fielding of JTRS technology
  • Improved interoperability across services and
    with allies in frequently changing coalitions
  • International
  • Modernization programs to provide more
    sophisticated communications capabilities to
    address traditional and emerging threats and to
    provide interoperability
  • Security assistance programs to improve the
    communications capabilities of emerging allied
    nations

15
Falcon III is changing the game with
multi-mission JTRS radios
  • Multimode interoperability
  • Ground-to-ground SINCGARS
  • Ground-to-air
  • Long-range tactical satellite
  • Easy vehicle dismount mobility
  • Interoperability with legacy radios
  • Advanced features
  • Extended frequency range
  • Significantly reduced weight and size
  • Secure wideband networking
  • Programmable encryption
  • Software upgradeable to incorporate new waveforms
  • APCO P25 for first responders

16
Falcon III AN/PRC-117G wideband networking radio
  • Initial deliveries completed to all services
  • Key launch orders
  • Air force Special Operations Command
  • U.S. Special Operations Command
  • Air Force Tactical Air Control Parties (TACP)
  • USMC
  • U.S. Army
  • Unique field-proven value equation
  • JTRS-approved, NSA-certified
  • Usable high-speed data networking
  • Simultaneous voice, SA, wideband data
  • Extended 30 MHz- 2 GHz frequency range
  • ROVER UAV down-link
  • Software upgradeable to address future
    requirements
  • Soldier Radio Waveform (SRW)
  • Mobile User Objective System (MUOS)
  • Wideband Networking Waveform (WNW)

The only JTRS-approved, NSA-certified wideband
tactical radio
17
The global Falcon footprint
Falcon tactical radio family users are in 100
countries on five continents
18
Government Communications Systems
2009 Analyst Meeting, May 11, 2009
19
Diversified customer base
  • Defense Programs
  • U.S. Army
  • U.S. Navy
  • U.S. Air Force
  • U.S. Marine Corps
  • National Intelligence Programs
  • NSA
  • NRO
  • NGA
  • NASA
  • Other classified
  • IT Services
  • NRO
  • U.S. Air Force
  • U.S. Navy
  • Dept. of State
  • Dept. of Health Human Services
  • Civil Programs
  • FAA
  • Census Bureau
  • NOAA
  • Veterans Admin. and Military Health

20
Differentiators technologies
Electro-optics
  • Acoustic optical devices
  • Free space optical links
  • Custom high-speed optical connections

Image processing
  • Geospatial image registration
  • Automated change detection
  • Automated multi-intel Feature extraction

Technology enabler Information management and
knowledge management
  • Service-oriented architecture solutions
  • Enterprise architecture and systems modeling

Technology enabler Information assurance
  • Defense-in-depth solutions (multiple perimeter
    protection)
  • Behavioral-based intrusion detection systems

21
Modernization of Enterprise Terminals (MET)
  • U.S. Army CECOM
  • Design and replace the AN/GSC-52 strategic
    terminals over the next 10 years
  • Transportable 7.2-meter antenna to fixed terminal
    12-meter antenna
  • Supports legacy and Wideband Global Satellites
    (WGS)
  • Strategic terminals with X/Ka operation

NEW WIN
  • Potential program value
  • 600M, 10 years
  • Awarded April 2009

22
GOES-R
  • Geostationary Operational Environmental Satellite
    R-Series
  • Ingest, process, and distribute weather data
  • Contract scope design, develop, deploy,
    operate
  • Potential program value
  • 800M over 10 years
  • Awarded May 2009

NEW WIN
23
Advanced Fighter programs
  • F/A-18
  • Avionics processing andmass storage products
  • Digital map products
  • Potential program value 650M
  • F/A-18 New opportunities
  • Image georegistration
  • DTP upgrades
  • F-22
  • Fiber-optic network products
  • Fiber network interface unit
  • High speed data bus products
  • Potential program value 400M

Network processor
Leverage
  • F-22 and F-35 New opportunities
  • IP networking and SATCOM
  • Harris extremelysensitive receiver
  • Image georegistration
  • Wideband network rack
  • Retrofit opportunities
  • F-35
  • Fiber-optic network products
  • Avionics infrastructure solutions
  • Multifunction Advanced Data Link (MADL) antennae
  • Potential program value 4B

24
FAA Telecommunications Infrastructure (FTI)
program
  • FTI Operations Network
  • FTI Mission Support Network
  • FTI Satellite/Microwave Network
  • FTI Network and Security Operations Control
    Centers
  • Over 4,500 locations nationwide, 21,000 services
  • 600 million life-cycle savings
  • Ongoing network evolution - National Optical
    Backbone build-out underway
  • Potential program value
  • 2.5B, 15 years
  • 3.5B contract ceilingFAA communications
    franchise
  • Awarded July 2002
  • Harris prime

25
IT Services overview
  • IT transformation Migrating customers
    non-integrated and often disparate networks and
    systems to a full end-to-end managed service
  • Managed services Repeatable, service level
    agreement, performance based contracts
  • Information assurance Providing customers
    networks, systems and data with the highest level
    of assured communications

26
IT differentiators
  • 3,000 highly specialized, continually trained and
    appropriately certified employees at 300
    locations
  • Extend overall Harris value chain by providing
    IT services across Harris businesses

Alaska
HQ
Hawaii
Major offices
Greater than 50 employees
Service area with 4-hour response capability
  • Mid-size IT services business with large
    company infrastructure offering
  • Help desk
  • Network operations center
  • Data center
  • Excellent credentials strong past performance
    on large, mission-critical systems that
    require the highest level of availability and
    security
  • National Reconnaissance Office Patriot
  • Navy Marine Corps Intranet largest
    subcontractor to EDS
  • FAA Telecommunications Infrastructure (FTI)
    program partner to Harris Civil programs

27
National Reconnaissance Office (NRO)Operations,
maintenance and support
  • Patriot program
  • 24/7 365 days/year, 100 reliable and available
  • Operations, maintenance and support services for
    the NROs information systems network in space
    and on the ground, which support their global
    analyst community
  • New processes, efficiency tools and a
    centralized enterprise management system
  • Potential program value
  • 1B, 10 years
  • Harris prime
  • Awarded August 2004

28
Navy Marine Corps Intranet (NMCI) program
  • Providing U.S. Navy with comprehensive,
    end-to-end support for data, video and voice
    communications
  • NMCI is largest government-managed services
    contract
  • 700,000 users
  • 100 million email messages per month
  • 5.2 million unauthorized intrusion attempts
    prevented each month
  • Harris is the largest subcontractor to EDS
  • Potential program value
  • 1.1B, 10 years
  • Awarded October 2000
  • Contract extension expected

29
Major IDIQ contracts
U.S. Air Force NETCENTS
  • Provides IT installation, integration and OM
    services for networks, systems offers IT
    products for networks
  • Wins include
  • Maxwell AFB
  • Overseas Navy Enterprise Network (ONE-NET)
  • Potential program value
  • 9B ceiling, 5 years
  • Harris prime
  • Awarded April 2006
  • Contract extension - 2 years

U.S. Army ITES-2S
  • Provides IT installation, integration,
    infrastructure and OM services for networks and
    systems
  • Wins include
  • Ft Bliss DOIM (Department of Information
    Management)
  • Army G-1 support
  • Army.mil website and content support
  • Potential program value
  • 20B ceiling, 3-year base, three 2-year options
  • Harris prime
  • Awarded December 2006

ALLIANT
  • Government-Wide Acquisition Contract (GWAC)
  • Alliant can be used by any and all agencies
  • Potential program value
  • 50B across all large business primes
  • 5 years with 1 x 5-year option awarded to 59
    primes
  • Awarded March 2009

30

Broadcast Communications
2008 Analyst Meeting, May 11, 2009
31
Broadcast Communications vision
  • The leading supplier of technology and services
    to consumers of rich media
  • Differentiated with the industrys most
    comprehensive Advanced Media Workflow end-to-end
    solution
  • Receive content in any format
  • Manage, move and reformat that content for any
    delivery network to any viewer device

32
Business summary
  • Cyclical nature of market and global recession
  • Will benefit when cycle turns positive
  • Cost reductions have improved profitability
  • Structural decline in traditional U.S. TV market
  • Shifting resources to international and New
    Media initiatives
  • Making good progress in addressing attractive new
    growth segments
  • Mobile TV
  • Digital signage/out-of-home advertising
  • FAME full-motion video for government ISR
    applications

33
Diverse and expanding global customer base
34
Market breadth sets Harris apart
Competitive Landscape
35
Emerging Business Opportunities
RF COMMUNICATIONS GOVERNMENT
COMMUNICATIONS SYSTEMS BROADCAST
COMMUNICATIONS
36
Actively pursue break-out growth market
opportunities around the core
Public Safety
International Systems
New Media
Core
Cyberspace
CommercialManaged Services
Healthcare IT
37
Public Safety communications
Unity XG-100 Multiband Land Mobile Radio
38
Unity XG-100P
Delivering reliable and interoperable
communications into the hands of the user
  • Unprecedented connectivity
  • Full-spectrum multiband interoperability
  • Digital P25 conventional and trunking
  • Backwards compatible with analog FM
  • User-centric design
  • Simplified operation
  • Built for every day use
  • Advanced capabilities
  • Internal GPS receiver for situational awareness
  • Internal secure Bluetooth wireless technology
  • Noise suppression
  • Reliability
  • 3-year standard warranty
  • MIL-STD rugged and submersible
  • Software-defined architecture

39
Unprecedented connectivity
  • Unlike traditional single-banded radios, the
    XG-100 Full-Spectrum Multiband Radios cover all
    bands in one radio
  • Allows users to communicate across jurisdictions
    and disciplines
  • Eliminates need to replace radios as a result of
    frequency re-banding
  • Operates on Digital P25 conventional and trunked
    systems
  • Interoperable with analog FM systems

vs
40
Advanced capabilities
  • Internal GPS receiver
  • User position sent securely over-the-air
  • Personnel position tracking
  • Rapid response for emergencies
  • Situational awareness in the field
  • Capable of receiving positional data
  • Large color display
  • Memory capacity to support street level mapping
  • Noise cancellation
  • Automatic suppression of background noise
  • Intelligible voice transmission in high noise
    environments
  • Dual-microphones (front and back of radio)
  • Works with both analog and digital voice
  • secure wireless technology
  • Audio accessories
  • Data connection laptops, PDAs, cameras
  • Wireless radio programming

41
International Systems
42
Cyberspace
43
Healthcare IT solutions
  • Infrastructure
  • Imaging
  • Informatics

Enterprise Intelligence
The right data, to the right person, on the
right device at the point of care
44
Healthcare programs
CONNECT Federal Health Architecture Military
Health SystemGlobal artifacts and images Health
First Multi-hospital IT network
Over 115M in new business awarded since March
2008 Harris is well positioned for growth in
federal and commercial sectors
45
Commercial Managed IT Services
Government
Commercial
  • Mobile TV
  • Out of home ads

Defense
National
Civil
Cyber
Healthcare
New Media
Mission-critical IT services
46
New Media markets
Digital signage and IPTV systems that enhance the
experience in live entertainment venues
Digital signage systems to support out-of-home
advertising models and build brand awareness
Mobile TV solutions for over-the-air broadcast to
wireless devices
47
Mobile TV
  • Global ad revenue from mobile TV projected at
    13B to 26B per year over next 5 years
  • Harris participation digital transmitters,
    encoding equipment, and launch of new channels
  • U.S. addressable market for Harris is 120M
    200M over 5 years
  • In U.S., 800 commercial stations are planning
    MPH 60 of these in CY 2009
  • At 150K per station and a 60 capture rate, this
    is a 72M Broadcast Communications opportunity
  • Worldwide addressable market for Harris is 300M
    400M over 5 years
  • Harris win strategy
  • Leverage strong installed base
  • Provide overall business-in-a-rack solution
  • Ad sales
  • Automation
  • Server
  • Master control
  • Branding

Industrys only total end-to-end supplier
48
Sports stadiums and arenas
  • Worldwide opportunity for control room
  • Router, infrastructure, multiviewer, fiber, TM,
    server, graphics
  • Instant replay
  • Highlights editing and playout
  • Digital signage OOHA and IPTV solutions
  • 2B worldwide market opportunity over 3 to 5
    years
  • 1M 10M per Tier 1 stadium x 300 worldwide
  • 200K 2M per Tier 2 stadium x 3,000 worldwide
  • Harris win strategy
  • Leverage Broadcast brand and association
  • Digital signage solution (Infocaster)
  • Ad sales and scheduling software (Punctuate)
  • Field deployment (HITS)
  • Managed IT services for the stadium network

Industrys only total end-to-end supplier
49
Digital signage
  • Opportunities for customers to expand revenue
    through out-of-home content and
    targeted advertising
  • Harris win strategy
  • Best-of-class digital signage player (Infocaster)
  • Ad sales and scheduling software (Punctuate)
  • Network management software (Connectus)
  • Field deployment
  • Managed IT services for the network
  • 4B market with 28 CAGR
  • 1.5B addressable market

Industrys only total end-to-end supplier
50
Acquisition of Tyco Electronics Wireless Systems
  • Announced April 16, 2009
  • 675M purchase price (615M net of 60M tax
    step-up)
  • Wireless Systems reported(1) FY 2008 financials
    (as of 9/26/08)
  • Sales 463M
  • Operating income 67M (14.5 margin)
  • DA 19M (EBITDA of 86M, 18.6 margin)
  • Wireless Systems will be combined with RF
    Communications, creating a dynamic new
    organization that will provide end-to-end
    wireless network solutions to the growing 9B
    global land mobile radio systems market
  • Transaction closed on May 29, 2009
  • Harris funded the purchase price with a
    combination of cash-on-hand, commercial paper and
    350M of 6.375 notes due June 15, 2019

(1) Source Tyco Electronics Ltd. Form 10-K/A
Amendment No. 1 filed January 19, 2009.
51
Wireless Systems product portfolio
End-to-End Internet Protocol
Vertical Integration
52
Wireless Systems leader in IPbased voice and
data networks
Comprehensive and network-centric product
offering
VIDA Voice, Interoperability, Data and Access
A VIDA network supports multiple platforms on a
secure and scalable IP backbone
53
Wireless Systems customers
U.S. DoD and Federal
Public Safety / Service
Utilities
National Capitol Region Army Bases P25
Systems Navy HYDRA Shipboard Systems
Commonwealth of Pennsylvania State of
Florida State of Nevada Royal Canadian Mounted
Police Saskatchewan Public Safety Miami-Dade
PD Las Vegas Metro PD Madison County, KY
Transportation
Transit
54
The winning combination!
  • Multiband LMR products
  • Radio technology leader
  • Strong DoD and International distribution
  • Systems engineering and program management depth
  • Complementary products
  • High volume radio manufacturing
  • Full range of single band LMR products
  • End-to-end IP systems capability
  • Proud LMR heritage
  • Strong market position and North American
    distribution
  • Systems technology and next-gen APCO standards
    leader
  • Harris Public Safety Communications
  • Strong global player in LMR products and systems
  • Technical and operational depth and breadth
  • Strengthened position to challenge Motorola

55
Acquisition of Crucial Security
  • Capitalizes on U.S. government market trend of
    increased cyberspace awareness and security
  • Business model and culture similar to Harris
  • Adds nearly 100 engineers and scientists
    holding top secret clearances who specialize in
    cyber and information assurance
  • Adds to cyber capability offering and broadens
    customer base
  • Certification and accreditation
  • Hardware reverse engineering and tools
  • Security architecting and operations
  • Wireless networks
  • Ethical hacking
  • Security architecting and operations
  • Information operations and forensics software
    reverse engineering and tools
  • Cyber visualization

56
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