Northrop GrummanNorthrop Grumman Aerospace Systems

July 2014

Forward Looking Statements

This presentation contains statements, other than statements of historical fact, that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “intend,” “may,” “could,” “plan,” “project,” “forecast,” “believe,” “estimate,” “outlook,” "anticipate,” “trends,” “guidance,” "goals," and similar expressions generally identify these forward-looking statements. Forward-looking statements in this release and the attachments include, among other things, statements relating to our future financial condition results of operations and cash flows Forward-looking statements are based uponrelating to our future financial condition, results of operations and cash flows . Forward-looking statements are based upon assumptions, expectations, plans and projections that we believe to be reasonable when made, but which may change over time. These statements are not guarantees of future performance and inherently involve a wide range of risks and uncertainties that are difficult to predict. Specific risks that could cause actual results to differ materially from those expressed or implied in these forward-looking statements include, but are not limited to, risks related to: the assumptions on which our guidance is based; our dependence on U.S. Government contracts; the effect of economic conditions in the United States and globally; changes in government and

f f fcustomer priorities and requirements; government budgetary constraints; shifts or reductions in defense spending resulting from budget pressures and/or changes in priorities, sequestration under the Budget Control Act of 2011, a continuing resolution with limited new starts; the lack of annual appropriations legislation or otherwise; debt-ceiling limits and disruption to or shutdown of government operations; timing of payments; changes in import and export policies; changes in customer short-range and long-range plans; major program terminations; the acquisition, deferral, reduction or termination of contracts or programs; our non-U.S. business, including legal, regulatory, financial, security and governmental risks related to doing business internationally; the outcome of litigation, claims,legal, regulatory, financial, security and governmental risks related to doing business internationally; the outcome of litigation, claims, audits, appeals, bid protests and investigations; our ability to recover certain costs under U.S. Government contracts; market conditions; our ability to access capital; performance and financial viability of key suppliers and subcontractors; interest and discount rates or other changes that may impact pension plan assumptions and actual returns on pension plan assets; the adequacy of our insurance coverage and recoveries; the costs of environmental remediation; our ability to attract and retain qualified personnel; changes in health care costs and requirements; changes in organizational structure and reporting segments; acquisitions, dispositions, spin off transactions joint ventures strategic alliances and other business arrangements; possible impairments of goodwill or otherspin-off transactions, joint ventures, strategic alliances and other business arrangements; possible impairments of goodwill or other intangible assets; the effects of legislation, regulations, and other changes in accounting, tax, defense procurement or other rules or practices; technical, operational or quality setbacks in contract performance; availability of materials and supplies; controlling costs of fixed-price development programs; domestic and international competition; potential security threats, information technology attacks, natural disasters and other disruptions not under our control; and other risk factors and other important factors disclosed in our Form 10-K for the year ended December 31, 2013, and other filings with the Securities and Exchange Commission. You are urged to

2

y g g gconsider the limitations on, and risks associated with, forward-looking statements and not unduly rely on forward-looking statements. These forward-looking statements speak only as of the date of this release, and we undertake no obligation to publicly update orrevise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required byapplicable law.

Northrop Grumman Today

• Leading global security company• 2013 sales of $24.7 billion• Leading capabilities• Leading capabilities

– Unmanned systems– Cyber

C4ISR– C4ISR– Logistics– Strike aircraft

• Aerospace Systems– 2013 sales of $10 billion– 2013 operating margin rate of 12.1%p g g– $16.7 billion backlog (6/30/14) – ~20,000 employees

Strong sustainable performance for shareholders and customersStrong sustainable performance for shareholders and customers3

Aerospace Systems – Value Proposition

Performance• Margin performance and cash generation• Invest and innovate for affordability • Diverse, engaged workforceStrategy - sustainable competitive differentiationStrategy sustainable competitive differentiation• Invest in our people• Perform on our programs

B ild t t t d t l ti hi• Build strong trusted customer relationships • Develop affordable and sustainable solutions• Invest in new technologies necessary to solve

h d ti l it h llhard national security challenges• Grow the businessRisk management• Focus on execution• Smart capture management

4

Financial Performance

Sales 14%15

Sales and OM %

• Stable revenue performance in challenging budget environment 11.6%

12.2% 12.2% 12.1%12%

14%

12

13

14

15

OM %

• Sustained performance level

10.0%

10%

8

9

10

11

in B

illio

ns)

• Maintaining top margin rate performance among peers

9.9 10.4 10.0 10.0 10.0 6%

8%

5

6

7

8Sa

les

($ i

Cash

• Strong, consistent cash generation

4%

1

2

3

4

generation2%0

2009 2010 2011 2012 2013

5

2013 Achievements

UNMANNED MANNED

•X‐47B first carrier operations•Triton first flight• Fire Scout first flight

•Awarded E‐2D full rate production•Awarded F‐35 production lots 6 & 7

SPACE INTERNATIONAL

L h d AEHF P l d 3 NATO AGS d i• Launched AEHF Payload 3•Awarded AEHF Payloads 5 & 6•Restricted

•NATO AGS production start

6

Strategic Objectives

UNMANNED MANNED

Remain a leader in unmanned systems market

Perform on our programs, position for growth

S ISPACE INTERNATIONAL

Expand market share Grow international revenuesExpand market share Grow international revenues  

7

Portfolio… Where We Work…

United StatesEmployees: ~19,800

Palmdale, CAAircraft Integration

Center of Excellence

Bethpage, NYElectronic Attack

Center of ExcellenceInternational Offices

San Diego, CAUnmanned Systems

St. Augustine, FLAircraft Integration

Center of Excellence

Redondo Beach, CASpace Systems

Center of ExcellenceAdvanced Concepts Melbourne, FL

Manned Aircraft DesignCenter of Excellence

International OfficesEmployees: ~200

Unmanned SystemsCenter of Excellence

Center of Excellence

8Centers of Excellence – Driving Capability Optimization and Affordability

Portfolio … Who We Serve

28%Our Customers

Other U.S. Gov't, 6%

72%

Prime Sub

Int'l, 5% U.S. Navy, 36%

48%

15%

U.S. Air Force , 27% Restricted,

37%

R&D O&MProduction

25%

58%

42%

9All data are based on 2013 Sales

Cost Type Fixed Price/T&M

Portfolio … What We Do

2013 NGAS Sales by Business Focus Area

Cyber 3%

St ik

Unmanned Systems27%

C4ISR 33%Strike

Aircraft 27%

Other 10%

10

C4ISR Portfolio

CapabilitiesP i t t f i

ProductsE 2D Ad d H k

OpportunitiesE i i i h Prime contractor of air

and space-based C4ISR platforms

Differentiated by state-

E-2D Advanced Hawkeye

E-8C JSTARS

AEHF

Emerging missions such as communications relay, air and missile defense

Capability enhancements Differentiated by stateof-the-art technology and systems integration capabilities

Restricted Capability enhancements

for current programs

Next generation program development

Capitalize on our broad ISR experience and key discriminators to shape and deliver mission capabilities

11

Unmanned Systems Portfolio

CapabilitiesP i t t f

ProductsRQ 4 Gl b l H k

OpportunitiesL d l t Prime contractor of

unmanned aircraft and ground control systems

Differentiated by

RQ-4 Global Hawk

NATO Alliance Ground Surveillance

Large development programs transitioning into production

Reliability training and Differentiated by technology leadership in autonomy and networked systems

MQ-4C Triton

X-47B UCAS

MQ-8B & MQ-8C Fire

Reliability, training and sustainment at affordable costs

Significant follow-on World-class workforce

MQ 8B & MQ 8C Fire Scout

Bat UAS

opportunities, domestic and international

Remain a Leader in Unmanned Systems Market

12

Cyber Portfolio

Capabilities Products Opportunities Differentiated by our in-

depth mission understanding and next generation offensive

EA-18G

Directed Energy Systems

Restricted

EA-18G “Advanced Growler” integration and upgrades

generation offensive cyber capabilities

Restricted Multifunction electronic warfare

Directed energy weapons

Outpace the rapidly evolving cyber threat spectrum

13

Strike Aircraft Portfolio

Capabilities Products Opportunities Differentiated by our

unique experience base, systems engineering expertise and focused

B-2 Spirit Bomber

F-35 Lightning II

F/A 18 E/F Super Hornet

International expansion on F/A-18 and F-35

Emerging opportunities expertise and focused risk reduction efforts

Vehicle design

Survivability

F/A-18 E/F Super Hornet for long range strike, F/A-XX, and F-X

Restricted Survivability

State-of-the-art composite manufacturing

Directly support power projection at global ranges

14

Northrop Grumman Aerospace Systems

Aerospace Systems

U d BatNATO AGSGlobal Hawk

Triton

Euro HawkUnmanned Systems

E-2 E-8C JSTARSC-2

UCLASS

Bat

UCASMQ-8B Firebird

Euro Hawk

MQ-8C

Military Aircraft

Systems

B-2

F-35 F/A-18 EA-18G

DEW

Space Systems

DEW

AEHF

eEHF

Restricted

JWST STSS

Products

Strategic Programs & Technology

Restricted Scaled Composites

Strategic Business Units:AOAAstro AerospaceCutting Edge OptronicsSonoma PhotonicsSynoptics

Strong & diversified portfolio15

Restricted Sca ed Co pos tes