Elbit Systems Ltd · TASE:ESLT
Elbit Systems — Investor Conference March 2022
34 slides from Elbit Systems's conference presentation, March 2022
Slide 1: Investor Conference March 2022
Investor Conference March 2022
Slide 2: Safe Harbor
2 2022 © Elbit Systems Proprietary Safe Harbor This presentation, reference to which herein includes information that may be provided by Elbit Systems Ltd. ("Elbit systems", and collectively with any or all of its subsidiaries, the “Company”) orally or in writing in connection therewith, is provided
Slide 3: Elbit Systems | A Highly Innovative Global Defense Company
3 2022 © Elbit Systems Proprietary 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 wit
Slide 4: Table of Contents
4 2022 © Elbit Systems Proprietary Table of Contents ■ Financial Results & Long-Term Trends ■ Business Highlights ■ Elbit’s growing positions in the maritime market ■ Corporate Responsibility - ESG
Slide 5: Financial Results
Financial Results
Slide 6: 2021 Financial Highlights
6 2022 © Elbit Systems Proprietary 2021 Financial Highlights $13.7Bn $5.3Bn $451M $417M Backlog Revenues Non-GAAP (*) Operating cashflow Operating income (*)GAAP Operating Income: $390m. For non-GAAP reconciliations reference the appendix to this presentation and Elbit Systems’ investor relations we
Slide 7: Financial Results | 2021
7 2022 © Elbit Systems Proprietary Financial Results | 2021 2020 2021 Change Sales ($M) 4,663 5,279 13.2% Non-GAAP Operating Profit ($M) 390 451 15.6% Non-GAAP Operating margin (%) 8.4% 8.5% 18 bps GAAP Operating Profit ($M) 326 419 28.4% GAAP Operating Profit margin (%) 7.0% 7.9% 94 bps Non-GAAP Ea
Slide 8: Financial Results | Q4 2021
8 2022 © Elbit Systems Proprietary Financial Results | Q4 2021 2020 2021 Change Sales ($M) 1,322 1,494 13.0% Non-GAAP Operating Profit ($M) 114 120 5.5% Non-GAAP Operating margin (%) 8.3% 8.0% (23 bps) GAAP Operating Profit ($M) 105 107 2.6% GAAP Operating Profit margin (%) 7.6% 7.2% (42 bps) Non-GA
Slide 9: 2021 Results | Revenues by Areas of Operation
9 2022 © Elbit Systems Proprietary 2021 Results | Revenues by Areas of Operation Others Others 3% 4% Electro Optics Electro Optics 10% 9% 476 453 Airborne 35% Airborne 38% 1,650 2,006 Areas of Areas of Operations Land Operations 1,259 1,255 Land 24% 27% 2020 2021 1,146 1,372 C4ISR C4ISR 25% 26% A br
Slide 10: 2021 Results | Revenues by Geographical Regions
10 2022 © Elbit Systems Proprietary 2021 Results | Revenues by Geographical Regions Other Other LATAM 3% LATAM 3% 3% 2% 140 North America 127 North America 32% 31% APAC 21% 962 1,501 APAC 1,444 1,609 27% Geographical Geographical Regions Regions 2020 2021 819 885 1,106 1,095 Europe 17% Israel Europe
Slide 11: Order backlog | Growth through the cycle
11 2022 © Elbit Systems Proprietary Order backlog | Growth through the cycle 14,000 13,661 12,000 11,024 10,029 10,000 9,399 8,000 7,561 6,909 6,564 6,265 5,683 5,822 6,000 4,000 2,000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 12: Revenues | Growth through the cycle
12 2022 © Elbit Systems Proprietary Revenues | Growth through the cycle 6,000 5,279 5,000 4,663 4,508 4,000 3,684 3,378 3,260 3,108 2,889 2,925 2,958 3,000 2,000 1,000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 13: Strong Positions across Europe support organic growth
13 2022 © Elbit Systems Proprietary Strong Positions across Europe support organic growth Austria Belgium France Germany Hungary Italy Romania Sweden Switzerland United Kingdom European subsidiaries employ hundreds of local employees and support domestic suppliers
Slide 14: European Revenues | Expanding positions driving LT growth
14 2022 © Elbit Systems Proprietary European Revenues| Expanding positions driving LT growth 900 885 500 854 92% 819 Growth 800 450 Elbit Systems 742 740 European Revenues ($M) 700 400 2014-2021 641 600 337 350 24% 500 498 298 300 Growth 461 278 279 271 NATO 251 Europe 400 236 238 250 Budgets* ($Bn)
Slide 15: Value creating M&A | Significant Acquisitions
15 2022 © Elbit Systems Proprietary Value creating M&A | Significant Acquisitions UNIVERSAL IMI ENV SPARTON Commercial Avionics Land System & Munitions Night Vision Underwater Warfare Acquired in 2018 Acquired in 2018 Acquired in 2019 Acquired in 2021 Purchase price $120m Purchase price
Slide 16: Annual Dividend | Returning cash to shareholders
16 2022 © Elbit Systems Proprietary Annual Dividend | Returning cash to shareholders 2.0 1.86 1.76 1.76 1.76 1.67 1.60 1.5 1.44 1.28 1.20 1.20 1.0 0.5 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Annual Dividend Per Share ($) Distributed more than $700m to shareholders during the period
Slide 17: Business Highlights
Business Highlights
Slide 18: Business Highlights | U.S. & the Americas
18 2022 © Elbit Systems Proprietary Business Highlights | U.S. & the Americas Completed the acquisition of Sparton Corporation Lockheed Martin New orders for F-35 HMDS, LAD and aerostructures Expanding our market positions U.S Army Canada $76m contract to provide HMDS for Apache Selected to supply T
Slide 19: Business Highlights | U.S. & the Americas
19 2022 © Elbit Systems Proprietary Business Highlights | U.S. & the Americas Inaugurated two new facilities in two new US States Boeing Delivered first avionics packages for T-7 Red Hawk Expanding our market positions U.S Army Brazil $124m in contracts to provide Night Vision systems Follow-on orde
Slide 20: Business Highlights | Israel
20 2022 © Elbit Systems Proprietary Business Highlights | Israel Laid cornerstone for modern Selected to lead development of $16m Contract to Supply Space Autonomous swarms entered ammunition technology park in infantry soldier systems Telescope to the Weizmann service with the IDF Ramat Beka Instit
Slide 21: Business Highlights | Europe
21 2022 © Elbit Systems Proprietary Business Highlights | Europe United Kingdom United Kingdom $100m contract to provide EW Systems for Royal Navy Ships $88m contract to expand flight school program Expanding our market Germany Electronic Warfare positions Selected to provide Radio systems to the Ge
Slide 22: Business Highlights | Europe
22 2022 © Elbit Systems Proprietary Business Highlights | Europe Sweden Sweden Contracted to supply Combat Management Systems to the $23 Million contract to supply additional E-LynX Multi-Channel Radios Royal Swedish Navy Expanding our market positions Sweden Greece $27m contract to supply tank ammu
Slide 23: Business Highlights | Asia-Pacific
23 2022 © Elbit Systems Proprietary Business Highlights | Asia-Pacific United Arab Emirates United Arab Emirates Established Elbit Systems Emirates $53m Contract to supply DIRCM and Airborne EW Geopolitical tensions sustain demand for Elbit systems' solutions South Korea Australia $74m contract for
Slide 24: Business Highlights | Asia-Pacific
24 2022 © Elbit Systems Proprietary Business Highlights | Asia-Pacific Maritime Maritime $56m contracts to supply anti-submarine warfare capabilities $80m contract to provide Naval SPECTRO XR Geopolitical tensions sustain demand for Elbit systems' solutions Fire capabilities $106m contract to supply
Slide 25: Maritime Market
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Slide 26: Maritime | Elbit Systems making progress in the Maritime Market
26 2022 © Elbit Systems Proprietary Maritime | Elbit Systems making progress in the Maritime Market I am very satisfied by the progress that we made over the last 12 months. The Sparton acquisition and the Royal Navy contracts have improved our position as a supplier of choice for leading navies. I
Slide 27: Maritime | The maritime domain is becoming increasingly contested
27 2022 © Elbit Systems Proprietary Maritime | The maritime domain is becoming increasingly contested 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
Slide 28: Maritime | Sparton - A Leading US Underwater Warfare Supplier
28 2022 © Elbit Systems Proprietary Maritime | Sparton - A Leading US Underwater Warfare Supplier Elbit Systems acquired Sparton Corporation in 2021, a critical supplier of advanced solutions for undersea warfare. With Sparton joining the Elbit family, we now have tremendous capabilities to address
Slide 29: Maritime | Growing demand in the UK for Elbit Systems' Solutions
29 2022 © Elbit Systems Proprietary Maritime | Growing demand in the UK for Elbit Systems’ Solutions Russia, in addition to new ships and submarines, continues to perfect both unconventional capabilities and information warfare. And there is a new risk to our way of life, which is the vulnerability
Slide 30: Commitment to Environmental, Social & Governance Best Practices
30 2022 © Elbit Systems Proprietary Commitment to Environmental, Social & Governance Best Practices ■ Our technologies help monitor the environment ■ We are working to reduce our environmental footprint by reducing Protecting the consumption of water, energy and paper, waste generation & emissions e
Slide 31: Appendix | Non-GAAP Financial Data
31 2022 © Elbit Systems Proprietary 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 su
Slide 32: Reconciliation of GAAP to Non-GAAP (Unaudited) Supplemental Financial Data
32 2022 © Elbit Systems Proprietary Reconciliation of GAAP to Non-GAAP (Unaudited) Supplemental Financial Data Years Ended December 31, 2019 2020 2021 GAAP gross profit 1,136.5 1,165.1 1,358.0 Adjustments: Amortization of purchased intangible assets 22.0 22.7 26.7 Covid-19 related expenses and write
Slide 33: Reconciliation of GAAP to Non-GAAP (Unaudited) Supplemental Financial Data
33 2022 © Elbit Systems Proprietary Reconciliation of GAAP to Non-GAAP (Unaudited) Supplemental Financial Data Years Ended December 31, 2019 2020 2020 227.9 237.7 274.4 GAAP net income attributable to Elbit Systems’ shareholders Adjustments: Amortization of purchased intangible assets 36.1 39.4 47.0
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