Northrop Grumman Corp. – NOC By: Hung Luong

- What is NOC? My recommendation on purchasing. - NOC earnings and revenues in the past year. - How the stock has been outperforming it’s competitors. - What NOC has been up to lately. - Why we should go into NOC now? What we will be going over today?

Formed in California in 1939, then moved to Delaware in Northrop Grumman is a leading global security company providing innovative systems, products and solutions in unmanned systems, cyber, C4ISR, and logistics and modernization to government and commercial customers worldwide. C.E.O./ Chairman of Board/ President – Wesley G. Bush C.F.O./ Vice President – Kenneth L. Bedingfield Northrop Grumman has been developing unmanned aircrafts, featuring the black hawk

NOC – Northrop Grumman Corp Ticker price: week range: – Volume: 1.3 million Market Cap: 32.8 billion P/E : Revenue: Billion Net income: 1.99 Billion I recommend buy and hold as a long term stock. Some numbers to consider

NOC against their 2 main competitors: Lockheed Martin and Raytheon

- They’re the one with the $80B contract. - Boeing shares lost 25% since the beginning of the year and they also had their protest denied by the Feds. Also, Boeing is focusing on their passenger aircrafts 787 and Lockheed Martin is too tied up with their old ‘stuff’ - Northrop Grumman is more focused on stealthy bombers than the other two, which is the contract that they won - Northrop will be going against the old F-35 by Lockheed with their next sixth generation fighter still to be produced which was featured in the Superbowl ad.Noc is always after the newest products, newest technologies. - Northrop has been developing a lot of unmanned aircrafts as well like their competitors. Northrop Grumman, the makers of RQ-4 Global Hawk surveillance drone, which was almost retired just two years ago, is set to be awarded a $4 billion contract by the U.S. Air Force to sustain and modernize the fleet over the next five years.awarded a $4 billion contract - They’re the one with the $80B contract. - Boeing shares lost 25% since the beginning of the year and they also had their protest denied by the Feds. Also, Boeing is focusing on their passenger aircrafts 787 and Lockheed Martin is too tied up with their old ‘stuff’ - Northrop Grumman is more focused on stealthy bombers than the other two, which is the contract that they won - Northrop will be going against the old F-35 by Lockheed with their next sixth generation fighter still to be produced which was featured in the Superbowl ad.Noc is always after the newest products, newest technologies. - Northrop has been developing a lot of unmanned aircrafts as well like their competitors. Northrop Grumman, the makers of RQ-4 Global Hawk surveillance drone, which was almost retired just two years ago, is set to be awarded a $4 billion contract by the U.S. Air Force to sustain and modernize the fleet over the next five years.awarded a $4 billion contract How are they better than their competitors?

Northrop Grumman Corporation (NOC), in partnership with the U.S. Army, Prototype Integration Facility, and prime contractor Redstone Defense Systems, has successfully conducted the Critical Design Review of the UH-60V BLACK HAWK program. Proving it is ready for transition to the fabrication and integration phase – NASDAQ In Oct, 2015 NOC won the contract for the new LRS-B (Long Range Strike Bomber) and during the superbowl, this ad was aired Northrop Grumman Corp. can resume work on developing a new Air Force bomber after a federal overseer Tuesday rejected a protest led by Boeing Co. against the award on a program that could ultimately cost more than $80 billion. – NASDAQNOChttps:// Northrop Grumman Corporation (NOC), in partnership with the U.S. Army, Prototype Integration Facility, and prime contractor Redstone Defense Systems, has successfully conducted the Critical Design Review of the UH-60V BLACK HAWK program. Proving it is ready for transition to the fabrication and integration phase – NASDAQ In Oct, 2015 NOC won the contract for the new LRS-B (Long Range Strike Bomber) and during the superbowl, this ad was aired Northrop Grumman Corp. can resume work on developing a new Air Force bomber after a federal overseer Tuesday rejected a protest led by Boeing Co. against the award on a program that could ultimately cost more than $80 billion. – NASDAQNOChttps:// What has NOC been up to?

Upcoming Singapore airshow: The company's airborne surveillance and advanced situational awareness capabilities will be showcased through visual displays of unmanned helicopters and high-altitude, long-endurance unmanned aircraft systems. – Global Newswire NOC continues to witness strong demand for its products on a global scale with programs like F-35 and E-2D, Triton, and SABR radar. Global demands accounted for 14.2% of 2015 revenues The White House new spending budget will feature a proposed $619 Billions in defense With rising security threats, the U.S. government has realized the need for ISR technologies and has thus shifted its emphasis to high-tech intelligence equipment. The FY2017 defense budget proposal put due emphasis on ISR. With escalating global tensions, military actions, and national security threats, defense contractors can expect a return to growth in Several governments are increasing defense budgets to combat terrorism and address sovereign security concerns, including cyber threats. For defense contractors, this represents an opportunity to sell more equipment and military weapons systems. Why invest in NOC now? Upcoming for NOC

Scenarios Bull Case If things go as expected now: - Foreign and domestic markets invest a lot in security and defense system - Nothing delays the LRS-B project anymore - Super jets and UAS projects finish in time - Earn as much in sales as expected Base Case - NOC fails to make as big of a splash at the airshow as expected - 6 th generation super jet is can’t beat F-35 - Do not get as much orders as expected - Delays in production and development Bear Case - Lockheed Martin and Boeing steal away all the contracts - The government cut defense funding - Either Hilary or Bernie becomes president - Northrop takes too long to develop new systems

If even Obama finally decides to spend extra on defense and bombers, then why wouldn’t you? Thank you for your time today.