Northrop Grumman held an institutional investor conference on November 9, 2006. The document discusses several of Northrop Grumman's business segments, including Ship Systems, Newport News, and their focus on performance improvement. Ship Systems is recovering from Hurricane Katrina and has a backlog of work including various Navy and Coast Guard ships. Newport News builds nuclear-powered aircraft carriers and submarines. Both segments aim to increase sales, margins, and cash flow through initiatives like workforce development and process improvements.

1. Northrop
Grumman
2006 Institutional
Investor
Conference
November 9, 2006
Gaston Kent
Vice President, Investor Relations
Northrop Grumman Corporation
0
Copyright 2006 Northrop Grumman Corporation

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.
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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
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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. Ships
Growth Operating Margin
2007E
2006E ($B) 2006E 2007E Long-Term
Growth Margin
Opportunity2
Operating Margin %
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. Ship Systems
Overview
Institutional Investor’s Conference
November 9, 2006
Philip Teel
President
Northrop Grumman Ship Systems
3 Copyright 2006 Northrop Grumman Corporation

7. Ship Systems at a Glance. . .
Coast Guard & Commercial
& Other
$3B – 2005 Sales Coastal Defense
2%
17,000 employees 8%
Three primary operating locations
Sole designer, builder of large Surface
deck amphibs and next Combatants
generation Coast Guard fleet
32%
Expeditionary
Surface combatants co-design
Warfare
and construction
58%
Primary customers: U.S. Navy &
U.S. Coast Guard
Katrina recovery proceeding on
schedule
2006E Sales
$5.3B Total Backlog
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8. Katrina
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9. Katrina . . . Impact
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10. Katrina . . . Impact
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11. Katrina . . . Impact
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12. Katrina . . . Impact
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13. Katrina . . . Impact
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14. LPD 17 Sail Away . . . November 28, 2005
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15. DDG 98 Sail Away . . . December 17, 2005
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16. LPD 20 Float Off . . . August 11, 2006
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17. LHD 8 Float Off . . . September 22, 2006
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18. NSC 1 Float Off . . . September 29, 2006
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19. LPD 18 Sea Trials . . . October 23, 2006
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20. Transition Current Platforms to New Missions
with Increased NOC Content
In Development Future Pursuits
Production/Support
Contracts
Surface Combatants
Surface Combatants
Surface Combatants Cruiser (CG(X)
Zumwalt Class (DDG 1000)
Arleigh Burke Class
Amphibs
Amphibs
(5 x DDG 51)
Maritime Pre-position Force
Large Deck Amphibs (LHA 6)
Amphibs Future (MPF(F)
WASP Class (1 x LHD 8) Coast Guard
Coastal Defense
San Antonio Class (6 x LPD USCG Deepwater
17) International
Fast Response Cutters
(FRC)
Coast Guard
National Security Cutter
(3 x NSC)
Fleet Support
DDG 1000
LPD CG(X)
17 Copyright 2006 Northrop Grumman Corporation

21. Performance Improvement Strategies
2007 2008 2009 2010 2011
J F MA MJ J A S ONDJ F MA MJ J A S ONDJ F MA MJ J A S ONDJ F MA MJ J A S ONDJ F MA MJ J A S OND
Ship Schedules
103 105 107 110
DDG
DH
DDG 1000 DDG 1000 Delivery 2012
18 19 20 21 22 23 24
LPD
8
LHD 8/LHA 6 LHA 6 Delivery 2012
1 2 3 4 5
NSC
1
FRC
Indicates Ships Under Construction at the Time of Katrina
Tools and Process
People Facility Process Maturity &
Improvement
Retention &
Shipyard Recovery
Development of
Workforce Improving Quality
Shipyard
Value Stream Centric Regeneration Enabling
Organization
Technology
Production Support
Drives OM and Cash from Operations
Improvements
18 Copyright 2006 Northrop Grumman Corporation

22. Business Base
2007 2008 2009 2010 2011
Surface Combatants
DDG 103
DDG 105
DDG 107
DDG 110
DDG 1000
DDG 1001 Deckhouse
Expeditionary Warfare
LPD 18
LPD 19
LPD 20
LPD 21
LPD 22
LPD 23
LPD 24
LPD 25
LHD 8
LHA 6
Coast Guard
NSC 1
NSC 2
NSC 3
NSC 4
NSC 5
FRC 1
FRC 2
Current Schedule
19 Copyright 2006 Northrop Grumman Corporation

23. Focus on Performance
Sales Drivers:
Katrina…full recovery in
Sales ($M) and Op Margin as % of Sales 2007
LHA 6 and DDG 1000
construction
4,000 10%
8% Coast Guard NSC
3,000
production
6%
Margin Expansion:
4%
2,000
Post Katrina vs Katrina
2%
1,000
0% Regeneration &
process focus
0
Cash Generation:
2003 2004 2005
Driving Working Capital
improvements
Sales OM % Pre-K OM %
Cap-ex reduces post
Katrina recovery
20 Copyright 2006 Northrop Grumman Corporation

24. Summary: Focus on Affordability
and Shareholder Return
Strategic Focus
Improved affordability
Reduce cost to produce
Modify current designs for expanded
missions
Leverage broader company capabilities to
increase NOC content
Operating Focus
People, process, and facility investments
linked to ship by ship improvement plans
Financial Performance
Katrina recovery and regeneration
Contracts with acceptable risk profiles and
cash terms
21 Copyright 2006 Northrop Grumman Corporation

25. Newport News
Overview
2006 Institutional Investor Conference
November 9, 2006
Mike Petters
President
Northrop Grumman Newport News
22 Copyright 2006 Northrop Grumman Corporation

26. Newport News ... Delivering Naval Superiority
Services & Other
$2.9B – 2005 Sales 3%
19,200 employees
Three Primary Operating
Locations
Submarines Carrier
Sole Designer, Builder, and 28% Construction
Refueler of Nuclear-Powered 43%
Aircraft Carriers Carrier
Refueling &
One of Two Companies Capable Overhaul
of Designing and Building 26%
Nuclear-Powered Submarines
Substantial After-Market Business
Portfolio
2006E Sales
Quality Earnings Delivering Stable
Cash Flow
$7B Total Backlog
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27. Business Base
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Carrier Construction
REAGAN (CVN 76)
BUSH (CVN 77)
CVN 78
CVN 79
Submarine Construction
VIRGINIA (SSN 774)
TEXAS (SSN 775)
HAWAII (SSN 776)
NORTH CAROLINA (SSN 777)
NEW HAMPSHIRE (SSN 778)
NEW MEXICO (SSN 779)
SSN 780
SSN 781
SSN 782
SSN 783
VCS 11
VCS 12
VCS 13
VCS 14
VCS 15
VCS 16
Carrier Refueling
EISENHOWER (CVN 69)
VINSON (CVN 70)
ROOSEVELT (CVN 71)
LINCOLN (CVN 72)
Carrier Overhaul
ENTERPRISE (CVN 65)
Others REAGAN PSA BUSH PSA
Current Advance Planning and Procurement Navy Plan to Newport News
24 Copyright 2006 Northrop Grumman Corporation

28. Market
Near-term opportunities
CVN 78
VCS Block III
CVN 71 RCOH
Long-term growth expectations
CVN 79 and later - one per 4
USS Texas (SSN 775)
years
VCS - two per year
Carrier refueling
Carrier de-fueling &
deactivation
Success Factors
Stability of CNO's 30-Year
Shipbuilding Plan
Solid Navy & Congressional
George H.W. Bush (CVN 77)
support for our programs
25 Copyright 2005 Northrop Grumman Corporation

29. USS Texas (SSN 775)

30. George H.W. Bush (CVN 77)
George H.W. Bush (CVN 77)

31. Focus on Performance
2006-2007 sales
drivers:
Sales ($M) and OM% of Sales
3,000 9.0%
CVN 77 – Bush
8.5%
2,500
CVN 69 – Eisenhower
8.0%
2,000
CVN 70 – Vinson
7.5%
7.0% CVN 21
1,500
6.5%
VCS Construction
1,000
6.0%
Achieving Margin
500
5.5%
Expansion
0 5.0%
2003 2004 2005 Strong Cash Flow
Improving Working
Capital
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32. Summary – Building Shareholder Value
Secure backlog and predictable, stable future
Drive process excellence for improved efficiencies and
higher profit margins
Deliver high quality cash and earnings performance
Continue to strengthen our franchise in nuclear ship
programs
Deliver value and performance in support of Navy's
vision for the future fleet
Pursue growth in adjacent fleet maintenance and
carrier de-fueling markets
29 Copyright 2006 Northrop Grumman Corporation