Elbit Systems Ltd · TASE:ESLT
Elbit Systems — Investor Conference April 2021
34 slides from Elbit Systems's conference presentation, April 2021
Slide 1: Investor Conference April 2021
Investor Conference April 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation may contain forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Israeli Securities Law, 1968) regarding Elbit Systems Ltd. and/or its su
Slide 3: A Highly Innovative Global Defense Company
Elbit Systems | A Highly Innovative Global Defense Company Internationally diversified Broad range of market Significant investment Large backlog presence and client base leading products & in R&D to generate market provides good visibility technologies aligned with leading IP customer priorities In
Slide 4: Table of Contents
Table of Contents ■ Financial Results & Long-Term Trends ■ Business Highlights and Recent Successes ■ Growth Engines & Innovation ■ Corporate Responsibility - ESG 4 2021 © Elbit Systems | Elbit Systems Proprietary
Slide 5: Financial Results & Long-Term Trends
Financial Results & Long-Term Trends
Slide 6: 2020 Financial Highlights
2020 Financial Highlights $11.0Bn $4.7Bn $390M $279M Backlog Revenues Non-GAAP (*) Operating cashflow Operating income (*)GAAP Operating Income: $325.7m. For non-GAAP reconciliations reference the appendix to this presentation and Elbit Systems’ investor relations website 6 2021 © Elbit Systems | El
Slide 7: Financial Results | 2020
Financial Results | 2020 2019 2020 Change Sales ($M) 4,508 4,663 3.4% Non-GAAP Operating Profit ($M) 380 390 2.8% Non-GAAP Operating margin (%) 8.4% 8.4% (5 bps) GAAP Operating Profit ($M) 322 326 1.3% GAAP Operating Profit margin (%) 7.1% 7.0% (14 bps) Non-GAAP Earnings per share ($) 6.79 7.20 6.0%
Slide 8: Financial Results | Q4 2020
Financial Results | Q4 2020 2019 2020 Change Sales ($M) 1,322 1,378 4.3% Non-GAAP Operating Profit ($M) 125 114 (9.3%) Non-GAAP Operating margin (%) 9.5% 8.3% (123 bps) GAAP Operating Profit ($M) 64 105 64.8% GAAP Operating Profit margin (%) 4.8% 7.6% 278 bps Non-GAAP Earnings per share ($) 2.47 2.3
Slide 9: 2020 Results | Revenues by Geographical Regions and Areas of Operation
2020 Results | Revenues by Geographical Regions and Areas of Operation Other LATAM 3% Others 3% 3% Electro Optic 10% North America 32% Airborne APAC 35% 21% Geographical Areas of Regions Land Operations 27% Europe 17% Israel 24% C4ISR 25% A diverse client base and broad product portfolio reduce risk
Slide 10: Revenues & backlog | Growth through the cycle
Revenues & backlog | Growth through the cycle 12,000 11,024 11,000 10,029 10,000 9,399 9,000 8,000 7,561 6,909 7,000 6,564 6,265 5,683 5,822 6,000 5,446 5,528 5,000 4,508 4,663 4,000 3,684 3,260 3,378 2,925 2,958 3,108 2,818 2,889 3,000 2,670 2,000 1,000 0 2010 2011 2012 2013 2014 2015 2016 2017 201
Slide 11: Geographical Regions 2020 | Maintaining the balance
Geographical Regions 2020 | Maintaining the balance Other Other LATAM 1% LATAM 3% 6% 3% North America North America 32% 32% APAC APAC 17% 21% 2010 2020 Revenues Revenues $2.7Bn $4.7Bn Europe 20% Europe 17% Israel Israel 24% 24% Maintaining a diverse geographical footprint during a period of growth 1
Slide 12: Broad global footprint of customers and subsidiaries
Broad global footprint of customers and subsidiaries ■ Australia ■ Austria ■ Belgium ■ Brazil ■ Canada ■ France ■ Georgia ■ Germany ■ Hungary ■ India ■ Mexico ■ Northern Macedonia ■ Romania ■ Switzerland ■ United Kingdom ■ USA We have subsidiaries in over 20 countries and sell to more than 50 12 202
Slide 13: GAAP and Non-GAAP Operating Profit
GAAP and Non-GAAP* Operating Profit 450 400 390 380 353 350 341 324 326 317 323 322 299 300 292 279 284 268 269 252 247 246 250 239 203 203 200 150 116 100 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Non-GAAP Op. Profit ($M) GAAP Op. Profit ($M) For non-GAAP reconciliations reference the
Slide 14: Sustained R&D investment | Underpins our long-term prospects
Sustained R&D investment | Underpins our long-term prospects 400 10% 350 8.8% 360 9% 8.6% 332 8.1% 300 7.8% 7.8% 7.8% 7.8% 8% 7.7% 7.7% 7.5% 287 7.4% 265 250 256 7% 241 243 234 233 228 220 200 6% 150 5% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net R&D (M$) % of revenues 14 2021 © Elbit
Slide 15: And supports development of the next generation of solutions
And supports development of the next generation of solutions Robotics Training Active & Simulation Protection Systems Lasers Avionics 9% of sales in R&D* Artificial Autonomous Intelligence Systems Precision Guided Electro-Optics Munitions * ~8% self funded and ~1% customer funded R&D in 2020 15 2021
Slide 16: Value creating M&A | Major acquisitions 2010-2020
Value creating M&A | Major acquisitions 2010-2020 SOLTAM NICE CYBER & INTEL. UNIVERSAL IMI HNV SPARTON Artillery Cyber Commercial Avionics Land System & Munitions Night Vision Underwater Warfare 2010 2015 2018 2018 2019 2021 Multiple bolt-on acquisitions since 2000 to acquire technologies or market
Slide 17: Annual Dividend | Returning cash to shareholders
Annual Dividend | Returning cash to shareholders 2.0 1.76 1.76 1.76 1.67 1.60 1.5 1.44 1.44 1.44 1.28 1.20 1.20 1.0 0.5 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Annual Dividend Per Share ($) Distributed more than $700m to shareholders during the period 17 2021 © Elbit Systems | Elbit S
Slide 18: Business Highlights & Recent Successes
Business Highlights & Recent Successes
Slide 19: Business Highlights | North America
Business Highlights | North America Strengthening positions in land systems U.S Army Partnering with BAE Systems U.S Army $79m contract for Bradley components To develop future Army combat vehicles ATMOS participates in howitzer shoot-off Enhancing our digital soldier capabilities U.S Army U.S Army
Slide 20: Business Highlights | North America
Business Highlights | North America Maintain leading positions as a supplier of critical systems on multiple fixed-wing and rotary-wing aircraft Boeing U.S Navy Lockheed-Martin platforms F15EX flies with Elbit Systems’ $35m contract for V-22 support Contract for additional complex advanced avionics
Slide 21: Business Highlights | North America & Latin America
Business Highlights | North America & Latin America Maritime Brazil Canada Sparton Corporation Acquisition Airborne radio aboard F-5 Fighters Hermes StarLiner selected for environmental monitoring 21 2021 © Elbit Systems | Elbit Systems Proprietary
Slide 22: Business Highlights | Israel
Business Highlights | Israel IDF Commences Training in Elbit Systems’ new Upgraded TORCH-X Command and Control Autonomous air and ground capabilities Battlegroup Mission Training Center system entered into service implemented in the Refaim “multi-dimensional” unit Advanced capabilities entered into
Slide 23: Business Highlights | Europe
Business Highlights | Europe Investments made during the previous decade in Training & Greece Italy United Kingdom United Kingdom Simulation bear fruit Selection for $1.7bn Flight Training $96m contract for a helicopter Expansion of UK Military Flight $166m contract for Naval Center mission training
Slide 24: Business Highlights | Europe
Business Highlights| Europe Our networked warfare capabilities became key to the Switzerland Netherlands Spain Sweden digitization efforts of $338m contract for tactical mobile software Three contracts worth $85m for Selected to provide the Spanish Orders 1,000 additional SDR tactical European milit
Slide 25: Business Highlights | Asia-Pacific
Business Highlights | Asia-Pacific Maintaining leadership in Leading land vehicle Improving position in the air by providing procurement programs the maritime arena advanced capabilities $172m contract to supply “Sabrah” Light Tanks $300m contract to deliver Hermes 900 Unmanned Air Contract to suppl
Slide 26: Growth Engines & Innovation
A | Se Growth Engines — = ais & Innovation | Elbit Systems Za, oa
Slide 27: Networked Precision Fires
Networked Precision Fires ■ Demand is accelerating for multi-domain networked precision fire capabilities, as Armed Forces are increasingly required to engage time sensitive targets with power and minimal collateral damage. ■ Elbit Systems is uniquely positioned to enable customers with networked ca
Slide 28: Maritime | Surface & Underwater Warfare
Maritime | Surface & Underwater Warfare ■ As the maritime domain is becoming increasingly contested, navies are increasing investments to improve their ability to protect of vital interests and provide strategic deterrence. ■ In recent years we have experienced increased demand for our maritime capa
Slide 29: High Power Laser
High Power Laser ■ The growing threat from rockets and missiles around the world increases the urgency to develop a solution that alters the equation by providing improved protection at a significantly reduced cost. ■ After 4 decades of fielding laser technologies, Elbit Systems is widely recognized
Slide 30: Corporate Responsibility | Environmental - Social - Governance
Corporate Responsibility | Environmental - Social - Governance Caring for our communities is at the heart of what we do ■ We promote technological education around the world, especially among female students and youth from challenging backgrounds ■ 5,100 of our employees volunteered in their communi
Slide 31: Appendix | Non-GAAP Financial Data
Appendix | Non-GAAP Financial Data Non-GAAP financial data is presented to enable investors to have additional information on our business performance as well as a further basis for periodical comparisons and trends relating to our financial results. We believe such data provides useful information
Slide 32: Reconciliation of GAAP to Non-GAAP Supplemental Financial Data
Reconciliation of GAAP to Non-GAAP (Unaudited) Supplemental Financial Data Years Ended December 31, 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 GAAP gross profit 797.9 732.0 815.9 824.8 825.1 897.1 965.3 1,003.1 976.2 1,136.5 1,165.1 Adjustments: Amortization of purchased intangible asset
Slide 33: Reconciliation of GAAP to Non-GAAP Supplemental Financial Data
Reconciliation of GAAP to Non-GAAP (Unaudited) Supplemental Financial Data Years Ended December 31, 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 GAAP net income attributable to Elbit Systems’ shareholders 183.5 90.3 167.9 183.4 171.0 202.5 236.9 239.1 206.7 227.9 237.7 Adjustments: Amortiz
Slide 34: Thank You
THANK YOU INVESTOR CONTACTS Joseph Gaspar, Executive VP & CFO Tel: +972-772946663 | j.gaspar@elbitsystems.com Rami Myerson, Investor Relations Director Tel: +972-772948984 | rami.myerson@elbitsystems.com elbitsystems.com