Interim Management Statement

24 April 2014

Cobham INTERIM MANAGEMENT STATEMENT

Current Trading

The Group's trading performance in the first three months of the year has been in line with the Board's expectations. As anticipated at the 2013 preliminary results, foreign currency headwinds have impacted the translation of the Group's revenue and earnings in the period.

Financial Position

Cobham has maintained its strong balance sheet at the end of March 2014, with free cash flow generation in line with expectations.

Strategy Update

At its preliminary results Cobham outlined an ongoing review of its structure to enable the next step of its strategic development towards achieving sustainable growth. The Group is making good progress with this review, which includes the planned consolidation of Cobham's separate Special Security Agreements within its US Defence Electronics Sector. Today the Group has provided five year historical information on its website (www.cobhaminvestors.com/reports) reflecting the structure which will be reported from its 2014 interim results.

Mergers and Acquisitions

On 17 April 2014 Cobham announced that it had completed the divestment of its last remaining non-core business to management. The small business, which is based in Mineral Wells, Texas, manufactures a range of displays and navigation and safety aids for general aviation customers primarily within the US market. The transaction includes a US$15m loan note which is payable to Cobham.

Board Update

As previously announced, John Patterson, Non-executive Director and Chairman of the Remuneration Committee, will stand down from the Board at the conclusion of the Annual General Meeting after nine years service. The Board is grateful for his significant contribution and support. Alison Wood will assume the role of Chair of the Remuneration Committee following his departure.

Cobham has also separately announced today that Birgit Nørgaard will join the Board as a Non-executive Director at the conclusion of the Annual General Meeting. Birgit will also become a member of the Board Remuneration Committee.  

Outlook

Consistent with the Group's current trading performance, Cobham continues to plan for organic revenue to decline by low-to-mid single digits in 2014. It will continue to take further actions as appropriate to substantially mitigate the impact of this organic decline.

Cobham has innovative technology and know-how supported by leading positions in attractive end markets. As a result, the Board continues to anticipate that Cobham can deliver mid-single digit organic revenue growth from 2015.

Cobham's Annual General Meeting is to be held today at 12.00pm and its interim results for the six months ended 30 June 2014 will be announced on 7 August 2014.

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ENQUIRIES

NOTES

1. Cobham protects lives and livelihoods with its differentiated technology and know-how. The Group offers an innovative range of technologies and services to solve challenging problems across commercial, defence and security markets, from deep space to the depths of the ocean. It has market leading positions in air-to-air refuelling; aviation services; audio, video and data communications, including satellite communications; defence electronics; life support and mission equipment.

2. This document contains 'forward-looking statements' with respect to the financial condition, results of operations and business of Cobham and to certain of Cobham's plans and objectives with respect to these items.

Forward-looking statements are sometimes but not always identified by their use of a date in the future or such words as 'anticipates', 'aims', 'due', 'could', 'may', 'should', 'expects', 'believes', 'intends', 'plans', 'targets', 'goal', or 'estimates'. By their very nature forward-looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that may or will occur in the future.

There are various factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, changes in the economies, political situations and markets in which the Group operates; changes in government priorities due to programme reviews or revisions to strategic objectives; changes in the regulatory or competition frameworks in which the Group operates; the impact of legal or other proceedings against or which affect the Group; changes to or delays in programmes in which the Group is involved; the completion of acquisitions and divestitures and changes in commodity prices, inflation or exchange rates.

All written or verbal forward-looking statements, made in this document or made subsequently, which are attributable to Cobham or any other member of the Group or persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. Cobham does not intend to update these forward-looking statements.