2. Safe Harbor Statement
Certain statements and assumptions in these presentations and materials contain or are based on “forward-
looking” information. Such “forward-looking” information includes, among other things, projected deliveries,
expected funding for various programs, future effective income tax rates, financial guidance and estimated
amounts regarding sales, segment operating margin, pension expense, employer contributions under
pension plans and medical and life benefits plans, cash flow and earnings per share, and is subject to
numerous assumptions and uncertainties, many of which are outside Northrop Grumman’s control. These
include Northrop Grumman’s assumptions with respect to future revenues, expected program performance
and cash flows, returns on pension plan assets and variability of pension actuarial and related assumptions,
the outcome of litigation and appeals, environmental remediation, divestitures of businesses, successful
reduction of debt, successful negotiation of contracts with labor unions, effective tax rates and timing and
amounts of tax payments, and anticipated costs of capital investments, among other things. Northrop
Grumman’s operations are subject to various additional risks and uncertainties resulting from its position as
a supplier, either directly or as subcontractor or team member, to the U.S. Government and its agencies as
well as to foreign governments and agencies; actual outcomes are dependent upon various factors,
including, without limitation, Northrop Grumman’s successful performance of internal plans; government
customers’ budgetary constraints; customer changes in short-range and long-range plans; domestic and
international competition in both the defense and commercial areas; product performance; continued
development and acceptance of new products and, in connection with any fixed price development
programs, controlling cost growth in meeting production specifications and delivery rates; performance
issues with key suppliers and subcontractors; government import and export policies; acquisition or
termination of government contracts; the outcome of political and legal processes and of the assertion or
prosecution of potential substantial claims by or on behalf of a U.S. government customer; natural disasters,
and any associated amounts and timing of recoveries under insurance contracts, availability of materials
and supplies, continuation of the supply chain, contractual performance relief and the application of cost
sharing terms, impacts of timing of cash receipts and the availability of other mitigating elements; terrorist
acts; legal, financial and governmental risks related to international transactions and global needs for
military aircraft, military and civilian electronic systems and support, information technology, naval vessels,
space systems, technical services and related technologies, as well as other economic, political and
technological risks and uncertainties and other risk factors set out in Northrop Grumman’s filings from time
to time with the Securities and Exchange Commission, including, without limitation, Northrop Grumman
reports on Form 10-K and Form 10-Q.
1
Copyright 2006 Northrop Grumman Corporation
3. Presentation Format
Guidance
Effective 1/1/07 Radio Systems business will be transferred from Space
Technology to Mission Systems
Reported results for Q4 2006 & Full Year 2006 will not reflect the transfer
Guidance does not reflect the change
Guidance does not include Essex
Segment results 2003 - 2005
Presented on a pro forma basis reflecting
Previously announced organizational realignments
Transfer of Radio Systems business
Adoption of dual-margin recognition on inter-segment sales
3
Copyright 2006 Northrop Grumman Corporation
4. The Leadership Team
Bus Dev & HR &
Communications Law
Govt Relations Administration
Ron Sugar Wes Bush
Chairman President
& CFO
& CEO
Bob Helm Burks Terry
Ian Ziskin
Rosanne O'Brien
Corp VP Corp VP &
Corp VP & Chief
Corp VP
General Counsel
HR & Admin Officer
Mission Information Technical Electronic Integrated Space Ship Newport
Systems Technology Services Systems Systems Technology Systems News
Jerry Agee Jim O’Neill Jim Cameron Jim Pitts Scott Seymour Alexis Livanos Phil Teel Mike Petters
Corp VP & President Corp VP & President Corp VP & President Corp VP & President Corp VP & President Corp VP & President Corp VP & President Corp VP & President
Information & Services Electronics Aerospace Ships
The Right Team For Our Strategy
1 Copyright 2006 Northrop Grumman Corporation
5. Aerospace
Growth Operating Margin
2007E 2006E 2007E
2006E ($B) Long-Term
Growth Margin
Operating Margin % Opportunity2
I&S ~$11 8-10% Information & Services Low 8 ~8 8-9
Aerospace Low 9 ~9 9-10
Aerospace ~$9 ~(5)%
Mid to
Electronics High 11 ~12
High 11
Electronics ~$6.6 ~5% Ships ~7 Mid 8 9+
Segment OM1 Low 9 Low 9 ~10
Ships ~$5 ~10%
Total Operating Margin Low 8 High 8 9+
Total ~$30.2 $31-32 1 Non-GAAP Metric - see reconciliation and definition on pages 25 & 26
2 Dependent on long-term business mix
2 Copyright 2006 Northrop Grumman Corporation
6. Space
Technology
Overview
2006 Institutional Investor Conference
November 9, 2006
Alexis Livanos
President
Northrop Grumman Space Technology
3 Copyright 2006 Northrop Grumman Corporation
7. Space Technology at a Glance. . .
$2.9B 2005 sales
Intelligence,
8,000 employees Surveillance,
Reconnaissance
Headquarters in Civil
40%
Redondo Beach, Space
26%
CA Technology
Missile
& Other
& Space
3%
A leading provider SatCom
Defense
of space systems, 17%
14%
and directed
energy
2006E Sales
$8.7B Total Backlog
Preliminary restatement of Radio Systems transfer
4 Copyright 2006 Northrop Grumman Corporation
8. Key Programs
National Polar-orbiting
Operational Environmental
Satellite System (NPOESS)
James Webb Space Telescope
(JWST)
Advanced Extremely High
Frequency Satellite (AEHF)
Space Tracking & Surveillance
System (STSS)
Airborne Laser (ABL)
Restricted Programs
Defense Support Program
(DSP)
Laser Weapon Systems
Space Radar
5 Copyright 2006 Northrop Grumman Corporation
9. Market
Budget: Overall stable, significant growth in
Communications, Intelligence, Surveillance,
Reconnaissance
Strategic Thrusts: Evolving heritage programs with
infusion of new technologies and inventing quick-
turnaround systems to solve new, urgent problems
Key New Programs:
Space Radar GOES-R TSAT Restricted
6 Copyright 2006 Northrop Grumman Corporation
10. Focused on Performance
5 10
Margin Expansion
Sales
Margin
Margin expansion continues
4 8
Margin % of Sales
with focus on program
Sales ($B)
3 6
performance
2 4
Cost management
1 2
Delivery milestones
Six Sigma
0 0
2003A 2004A 2005A
Preliminary restatement of Radio Systems transfer
Cash Generation
Maintaining strong negative working capital
Aggressively managing to reduce capital investment
Positioning for ’07-’08 growth
7 Copyright 2006 Northrop Grumman Corporation
11. Summary
Program Execution
Shaping Change
Immerse with Customers
System Engineering and
Technology as Competitive
Differentiators
Growth and Financial
Performance
Leverage Northrop
Grumman’s Potential
Flexibility, innovation,
speed
8 Copyright 2006 Northrop Grumman Corporation
12. Integrated
Systems
Overview
2006 Institutional Investor Conference
November 9, 2006
Scott Seymour
President
Northrop Grumman Integrated Systems
9 Copyright 2006 Northrop Grumman Corporation
13. Integrated Systems at a Glance. . .
$5.5 billion sales in 2005(A)
14,200 employees Airborne Ground
Surveillance & Battle
Major locations Management
Systems
El Segundo, Rancho Bernardo, 11%
Palmdale, CA
Airborne Early
Bethpage, NY Western Region
Warning &
Electronic (Air Combat Systems /
Melbourne, St. Augustine, FL Warfare Systems Unmanned Systems)
Primary customers 27% 62%
U.S. Air Force
U.S. Navy
U.S. Army
Key programs
E-2 Hawkeye
B-2
MP-RTIP
F/A-18E/F, EA-18G
2006E Sales
Joint STARS
F-35
E-10 / BMC2
Global Hawk
EA-6B ICAP III
Fire Scout
$9.8B Total Backlog
10 Copyright 2006 Northrop Grumman Corporation
2006 Integrated Systems Investors Conf 110906
14. Market Environment
• Budget
—Overall stable across core programs
• Strategic Thrusts
—Continued focus on performance and modernization
of core programs
—SDD program transition to production
—Leverage competencies in systems integration and
manned/ unmanned systems
Pursue next generation follow-on core programs
Identify adjacent/new market opportunities created
by recapitalization/transformation needs
11 Copyright 2006 Northrop Grumman Corporation
2006 Integrated Systems Investors Conf 110906
15. Key New Programs
• Broad Area Maritime
Surveillance (BAMS)
Tanker
• KC-135 Replacement (KC-X)
(Tanker)
BAMS
N-UCAS
• Navy Unmanned Combat Air
System (N-UCAS)
• Next Generation Long Range Strike
(NGLRS)
• Advanced Electronic Attack (AEA) NGLRS
NATO AGS
• International
AEA
—NATO Alliance Ground
Surveillance (NATO AGS)
—Euro Hawk
Euro Hawk
12 Copyright 2006 Northrop Grumman Corporation
2006 Integrated Systems Investors Conf 110906
16. Focus on Performance
Margin
Contract mix for development
programs at 57% of sales; major SDD
Sales
6,000 12%
programs transitioning to early
5,000
production
9%
4,000
Driving improved margin performance
Program execution
3,000 6%
– Independent Risk Review -
2,000
3%
minimizing performance risks
1,000
– Systems engineering and program
- 0%
management
2003 2004 2005
– Supply chain integration
Sales ROS
– Process improvement – Six Sigma
Cost reduction initiatives
Cash
Maintaining strong negative working capital
Improving balance sheet fundamentals for greater cash generation;
cash > margin
Aggressively managing to reduce capital investment, lease facilities
and labs
13 Copyright 2006 Northrop Grumman Corporation
2006 Integrated Systems Investors Conf 110906
17. Summary
• Drive a relentless customer focus
• Improve program execution
• Streamline operating model
and process
• Establish key internal/external
alliances
• Capture targeted business
pursuits
• Deliver strong financial results
Perform Position Grow
14 Copyright 2006 Northrop Grumman Corporation
2006 Integrated Systems Investors Conf 110906