Eltek Ltd. · NASDAQ:ELTK
Eltek — Investor Presentation (May 2022)
19 slides from Eltek's investor presentation, May 2022
Slide 1: Pg Bm See
* E- ¥ ._ a —__ = Pg Bm See
Slide 2: Disclaimer
Disclaimer General Basis of Presentation The information contained in this presentation does not purport to be all inclusive or to contain all information that prospective investors may require. GAAP Prospective investors are encouraged to conduct their own analysis and Unless otherwise stated, all
Slide 3: Eltek History & Overview
Eltek History & Overview Petach Tikva, NADCAP, AS9100D, Founded in 1970, Eltek is a global PCB manufacturer. Israel ISO9001:2015, UL 94V-0 We have 50 years of experience in the space, a wealth of key Location Key Qualifications engineering talent, and additional capacity in our facility to 100,000 f
Slide 4: Where Eltek PCBs are Used
Where Eltek PCBs are Used 4
Slide 5: Where We Shine
Where We Shine Strong Portfolio of OEM Customers Eltek is a leading global manufacturer of quality and highly-reliable printed circuit boards (PCBs)—creating rigid, flex-rigid, and flex PCBs for use in a variety of industries, including Aerospace, Military, Medical, Satellite, and many others. We ar
Slide 6: Since 2009, Western PCB Manufacturing Market Share has shrunk ~66%
Since 2009, Western PCB Manufacturing Market Share has shrunk ~66% PCB manufacturers in the West have PCB Manufacturing by Region, 2021 disappeared—leaving global manufacturing highly concentrated in China and Taiwan. Europe & US 9% China’s PCB dominance and global security issues have caused wester
Slide 7: High Barriers for New Entrants in PCB Production
High Barriers for New Entrants in PCB Production Technical “Know-How” There are no university degrees for PCB production, engineers become experts in PCBs on the job and advance over time The Western world is looking to shift back to purchasing Western Machine Infrastructure Cost produced PCB’s, but
Slide 8: Growing to Satisfy Market Appetite
Growing to Satisfy Market Appetite R&D programs in Unlocking 30% in Vertical and Horizontal Accelerated investment partnership with Israeli additional production mergers can fuel growth, program in Petach Tikva innovation authorities. capacity via a 3rd shift in both domestically and facility in a t
Slide 9: What Makes Eltek Unique
What Makes Eltek Unique 50 years of operational history developing PCBs ITAR and EAR Pioneers in Constant High-Mix, Certifications Flex PCBs R&D Low-Volume Certifications allow Eltek to Eltek is a brand-name in the Bringing advanced tech Our proprietary production sell to defense contractors Flex PC
Slide 10: Massive Global Opportunity Size
Massive Global Opportunity Size Total Available Market – Global PCBs, 2027 – Growing at a 4.8% CAGR $76B Serviceable Addressable Market – Global Flex-Rigid PCBs, 2025 – Growing at a 9.8% CAGR $7.5B Current Revenue Capacity – Single Facility at 70%-90% Capacity $35-45M Future Revenue Capacity – After
Slide 11: Generating Profits in a Capital Intensive Industry
Generating Profits in a Capital Intensive Industry Complex Flex PCB Rigid PCB manufacturing supports the capital intensive Manufacturing with fixed costs of our facility, machinery, and staffing—ensuring 50%+ Positive Contribution that Eltek reaches its break even point. Breakeven Point Eltek’s Flex
Slide 12: Setting the Stage for Rampant Growth
Setting the Stage for Rampant Growth PROFIT (K$) In 2018, newly hired Eltek management led a 2018-2022+ turnaround plan and implementation of “Achieving 2016-2018 Competitive Excellence”. (Before) SALES (K$) (BEP) Our turnaround targeted higher operational efficiency by reducing fixed costs and impr
Slide 13: Eltek Growth Pillars
Eltek Growth Pillars Business Excellence Operational Efficiency Market Share Expansion Right pricing Adopt Achieve Competitive Excellence Focus on US market program (ACE-similar to 6-sigma) Product rationalization Look for M&A Use big data technology for PCB engineering Trade PCB FMF between USA and
Slide 14: Our R&D Roadmap
Our R&D Roadmap Mirrored to Global Demand of High Reliability, Miniaturization, Faster Data Traffic, and High Power 2018-2019 GOAL HDI VIA COPPER FILLING – Comprehensive Buried/Blind-filled manufacturing Non-conductive Paste capabilities of: Dynamic Rigid/Flex designs • 5/6G Products High-en
Slide 15: Experienced Leadership Team
Experienced Leadership Team Eli Yaffe Oriel Sallary CEO VP, Worldwide Sales and Marketing Joined Eltek as CEO in July 2018. Prior, Eli served as the CEO of Carmel Joined Eltek as VP of Worldwide Sales and Marketing in May 2020. Oriel has Forge Ltd. (Aerospace), and prior thereto he served as the CEO
Slide 16: 2021 Revenues By Geography By Sector
2021 Revenues By Geography By Sector Others Defense & Aerospace India 6% 41.19% 6% Netherlands Industrial 13% 4.37% Medical Israel Equipment 55% 8.76% North America Telecom & 20% Networking 0.87% CEM, Distributors & Others 44.81% 16
Slide 17: Financial Snapshot
Financial Snapshot Revenues Gross Profit Net Profit 6M Thousands 37M 10M Thousands Thousands 5M 36M 8M 4M 35M 6M 3M 34M 4M 2M 33M 2M 1M 32M 0M 0M 2019 2020 2021 2019 2020 2021 2019 2020 2021 Q1 2022 $9.8M $2.0M $0.7M $0.6M $1.1M Revenues Gross Profit Operating Profit Net Profit EBITDA 17 * Eltek use
Slide 18: Company Capitalization
Company Capitalization As of March 31, 2022 Eltek has 5,849,678 issued and outstanding shares: Nistec 3,891,596 66.5% Yitzhak Nissan (Chairman) 174,316 3.0% Total Nistec and Yitzhak Nissan 4,065,912 69.5% Public Float 1,774,445 30.5% Total 5,840,357 100.0% As of March 31, 2021: 388,175 Outstanding O
Slide 19: Contact Us
Contact Us www.nisteceltek.com Manufacturing Eltek Ltd. 20 Ben Zion Gelis Street Petach Tikvah, 4927920, Israel Tel: +972 3 939 5050 Fax: +972 3 9342584 Email: main@nisteceltek.com Customer Service Sales – Engineering Eltek USA Inc. 250 Commercial Street Suite 3010 Manchester, New Hampshire, USA Pho