Slide 1: 3Q19 Highlights
3Q19 Highlights October 23, 2019 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains information about the company’s expectations of future performance, including future financial or operating performance. This information constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act
Slide 3: Financial Highlights
Financial Highlights ($ in millions, except for EPS) 3Q19 3Q18 % Change Revenue $9,761 $9,094 7.3% Solid Performance Operating Earnings $1,216 $1,135 7.1% Created by Delivering Value to Earnings from Cont. Ops. $913 $864 5.7% the Customer Earnings per Share* $3.14 $2.89 8.7% EBITDA** $1,414 $1,352 4
Slide 4: Aerospace
Aerospace • Revenue up 22.8% to $2.5B, YTD up • Launch of the G700 expands Gulfstream 19.5% to $6.9B product line Delivered 38 aircraft vs. 27 in 3Q18 Largest cabin volume for any business jet Compelling range of 7,500 nm at Mach 0.85 • Operating margins expanded 30 bps sequentially to 15.8%
Slide 5: Combat Systems
Combat Systems • Revenue up 14.2% to $1.7B; YTD up 12.0% to $5.0B • Margins up 60 bps sequentially to 15.2% • Book-to-bill of 1.3x; funded backlog tops two years of revenue • Awarded $1.3B from Canada for 360 armored combat support vehicles (ACSV) • Submitted proposal for U.S. Army’s Optionally Mann
Slide 6: Information Technology
Information Technology • Revenue of $2.1B down as a result of divestitures and program timing • Cash Flow YTD a robust 150% of Net Income • Continued YTD win rate of 75%; recompete rate of 91% • Book-to-bill for Q3 and YTD of 1.2x underscores strength of combined business • Total Estimated Contract
Slide 7: Mission Systems
Mission Systems • Revenue up 5.2% to $3.7B YTD • Margins up 60 bps to 15.2% in Q3 • Book-to-bill of 1.2x; YTD book-to-bill somewhat above 1.0x • Awarded $295M potential for the Prophet Enhanced Communications System • Awarded $65M for Strategic Submarine Weapon System Fire Control • Awarded $45M con
Slide 8: Marine Systems
Marine Systems • Revenue up 11.6% to $2.2B; YTD up 6.7% to $6.6B • Margins up 100 basis points to 9.4% in Q3 • Awarded $1.6B for ESB 6 and 7 support ships, and option for ESB 8 • Awarded $175M for engineering, design and support for operational strategic and attack submarines, including options the
Slide 9: Appendix
Appendix GENERAL DYNAMICS
Slide 10: Non-GAAP Financial Measures
Non-GAAP Financial Measures $ in millions a) We believe earnings before interest, taxes, depreciation and amortization (EBITDA) is a useful measure for investors because it provides another measure of our profitability and our ability to service our debt. We calculate EBITDA by adding back interest,
Slide 11: GENERAL DYNAMICS
GENERAL DYNAMICS