Q2 fy14 quarterly earnings presentation

© 2014 Rockwell Collins
All rights reserved.
Proprietary Information
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2nd Quarter FY 2014
Conference Call
April 17, 2014

Proprietary Information 2
Safe Harbor Statement
This presentation contains statements, including certain projections and business trends, that are forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result
of certain risks and uncertainties, including but not limited to the financial condition of our customers, including bankruptcies; the
health of the global economy, including potential deterioration in economic and financial market conditions; adjustments to the
commercial OEM production rates and the aftermarket; the impacts of natural disasters, including operational disruption, potential
supply shortages and other economic impacts; cybersecurity threats, including the potential misappropriation of assets or other
sensitive information, corruption of data or operational disruption; delays related to the award of domestic and international
contracts; delays in customer programs; unanticipated impacts of sequestration and other provisions of the Budget Control Act of
2011 as modified by the Bipartisan Budget Act of 2013; the discontinuance of support for military transformation and
modernization programs; potential adverse impact of oil prices on the commercial aerospace industry; the impact of terrorist
events on the commercial aerospace industry; declining defense budgets resulting from budget deficits in the U.S. and abroad;
changes in domestic and foreign government spending, budgetary, procurement and trade policies adverse to our businesses;
market acceptance of our new and existing technologies, products and services; reliability of and customer satisfaction with our
products and services; potential unavailability of our mission-critical data and voice communication networks; favorable outcomes
on or potential cancellation or restructuring of contracts, orders or program priorities by our customers; recruitment and retention
of qualified personnel; regulatory restrictions on air travel due to environmental concerns; effective negotiation of collective
bargaining agreements by us and our customers; performance of our customers and subcontractors; risks inherent in
development and fixed-price contracts, particularly the risk of cost overruns; risk of significant reduction to air travel or aircraft
capacity beyond our forecasts; our ability to execute to our internal performance plans such as our productivity and quality
improvements and cost reduction initiatives; achievement of ARINC integration and synergy plans as well as our other acquisition
and related integration plans; continuing to maintain our planned effective tax rates; our ability to develop contract compliant
systems and products on schedule and within anticipated cost estimates; risk of fines and penalties related to noncompliance with
laws and regulations including export control and environmental regulations; risk of asset impairments; our ability to win new
business and convert those orders to sales within the fiscal year in accordance with our annual operating plan; and the
uncertainties of the outcome of lawsuits, claims and legal proceedings, as well as other risks and uncertainties, including but not
limited to those detailed herein and from time to time in our Securities and Exchange Commission filings. These forward-looking
statements are made only as of the date hereof.

($ in millions except EPS amounts)
2nd Quarter FY 2014 Results
$1,131
$1,272
2Q FY13 2Q FY14
Sales
12% increase $161
$147
2Q FY13 2Q FY14
Income from Continuing
Operations, net of taxes
9% decrease
$1.17
$1.07
2Q FY13 2Q FY14
EPS from Continuing Operations
9% decrease
137.8 137.2
2Q FY13 2Q FY14
Diluted Average Shares
Outstanding

(1)
4
($ in millions)
Sales
$9 million Aftermarket increase: 4%
• Increased service and support
• Increased revenue from regulatory airspace
mandates
$5 million OEM growth: 2%
• Higher hardware delivery rates for Boeing
787 aircraft
• Partially offset by reduction in sales at light-
end of business jet market
Operating Earnings
$11 million Increase in operating earnings
• Higher sales
• Lower company-funded R&D expenses
• Savings from cost reduction initiatives
Commercial Systems
22.8%21.4%
Operating
Margins
(1) Certain prior year amounts have been reclassified to the Information Management
Services segment. See the supplemental schedule included in the press release filed
on Form 8-K dated January 21, 2014 for a reconciliation of amounts reclassified.
(1)
$542 $556
2Q FY13 2Q FY14
CS Sales
3% increase
$116
$127
2Q FY13 2Q FY14
CS Operating Earnings
9% increase

19.4% 19.2%
($ in millions)
Government Systems
Sales
Sales decline $11 million: (2%)
• Lower satellite communication sales
• Lower KC-46 and KC-10 development
program sales
• Partially offset by increased hardware sales:
• E-6B aircraft upgrade
• International platforms
Sales by product category:
• Avionics increase 3%
• Communication Products decrease (13)%
• Surface Solutions decrease (2)%
• Navigation Products increase 2%
Operating Earnings
Decrease in operating earnings and operating
margin primarily due to lower sales
Operating
Margins
$578 $567
2Q FY13 2Q FY14
GS Sales
2% decrease
$112 $109
2Q FY13 2Q FY14
GS Operating Earnings
3% decrease

($ in millions)
Sales
• $137 million sales from ARINC
• $1 million organic sales growth
Operating Earnings
Increase in operating earnings and operating
margin primarily due to the acquisition of
ARINC
Information Management Services
12.1%9.1%
Operating
Margins
$11
$149
2Q FY13 2Q FY14
IMS Sales
$1
$18
2Q FY13 2Q FY14
IMS Operating Earnings

($ in millions except EPS amounts)
Six Month FY 2014 Results
$2,193
$2,343
2Q FY13 YTD 2Q FY14 YTD
Sales
7% increase
$293 $278
Income from Continuing
Operations, net of taxes
5% decrease
$2.10 $2.03
EPS from Continuing Operations
3% decrease
$179
$63
Operating Cash Flow
65% decrease

76 89
246 230
142 132
R & D Investment
Company Funded R&D
Customer Funded R&D
Increase in Pre-production Engineering, Net
8
$464
$451
($ in millions)
Research and Development
• Company-funded R&D declined due to a
reduction in R&D efforts on various next
generation business jet avionics development
programs
• Customer funded R&D declined due to
development programs winding down in
Government Systems
• Increased investment in pre-production
engineering programs driven by:
• Boeing 737MAX
• Bombardier C-Series
• Global 7000/8000
21.2% 19.2%
% of
Sales

9/30/13 3/31/2014
Cash and cash equivalents 391$ 410$
Short-term Debt (436) (866)
Long-term Debt (563) (1,658)
Net Debt (608)$ (2,114)$
Equity 1,623$ 1,852$
Debt To Total Capital 38% 58%
Debt To EBITDA
(1)
0.9x 2.3x
($ in millions)
Capital Structure Status
(1) See slide 12 for non-GAAP disclosures

(shares in millions)
Status of Share Repurchases
0.5 million shares repurchased in fiscal year
2014 second quarter
• Cost of Purchases - $39 Million
• Average Cost per Share - $81.57
87 million shares repurchased since January
2002
• Cost of Purchases - $4.3 Billion
$356 million authorization remaining at the
end of Q2
135.9 135.5
2Q FY13 2Q FY14
Common Shares Outstanding

Total Sales $4.95 Bil. to $5.05 Bil.
Total Segment Operating Margins 20% to 21%
Earnings Per Share
$4.40 to $4.55
(from $4.35 to $4.55)
Cash Provided by Operating Activities $600 Mil. to $700 Mil.
Research & Development Investment About $950 Mil.
Capital Expenditures About $160 Mil.
FY 2014 Guidance

The Non-GAAP ratio of debt to EBITDA information included on slide nine is believed to be useful to
investors’ understanding and assessment of the Company’s total capital structure and liquidity. The
Company does not intend for the information to be considered in isolation or as a substitute for the
related GAAP measures. The table below explains the debt to EBITDA calculation in more detail for the
twelve-month period from October 1, 2012 through September 30, 2013 and the twelve-month period
from April 1, 2013 through March 31, 2014 (unaudited, in millions):
Non-GAAP Financial Information
12 months ended
9/30/13 3/31/14
Income from continuing operations before income taxes $ 868 $ 877
Interest expense 28 42
Depreciation 124 130
Amortization of intangible assets and pre-production engineering
costs 56 66
Earnings before interest, taxes, depreciation and amortization
(EBITDA) $ 1,076 $ 1,115
9/30/13 3/31/14
Total debt $ 999 $ 2,524
Debt to EBITDA 0.9x 2.3x

($ in millions)
Second Quarter 2014 ARINC Results
Three months ended March 31, 2014
ARINC
Corporate
Costs(a)
Total
Sales 137$ -$ 137$
Income before income taxes 17$ (10)$ 7$
Depreciation and amortization expense 11 - 11
Interest expense - 8 8
EBITDA 28 (2) 26
Transaction and integration costs - 1 1
EBITDA, adjusted 28$ (1)$ 27$
Total EBITDA, adjusted as a percentage of sales 20%
The Non-GAAP financial information included in the table below for earnings before interest, taxes, depreciation,
and amortization (EBITDA) and adjusted EBITDA are believed to be useful to an investor's understanding and
assessment of the recently completed ARINC acquisition. The Company does not intend for the Non-GAAP
information to be considered in isolation or as a substitute for the related GAAP measures. The table below
explains the impact that certain non-cash depreciation and amortization charges, and certain transaction and
integration expenses, had on the financial results for ARINC during the three months ended March 31, 2014. The
ASES business is treated as discontinued operations and is therefore excluded from the table (unaudited, in
millions).
(a) The Company’s definition of segment operating earnings excludes certain items, including interest and other
general corporate expenses not allocated to business segments. Corporate costs for the three months ended
March 31, 2014 include $8 million of interest expense, primarily attributable to incremental interest on the debt
we issued in December 2013 to finance the acquisition, and $1 million of deal related transaction costs. The
remaining corporate costs of $1 million represent selling, general and administrative expenses related to ARINC
that were incurred at the corporate level.

Q2 fy14 quarterly earnings presentation

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Q2 fy14 quarterly earnings presentation