L3harris Technologies, Inc. · NYSE:LHX
L3harris Technologies — Q4 2020 Earnings Presentation
14 slides from L3harris Technologies's earnings presentation, Jan 29, 2021
Slide 1: L3Harris CY2020 Fourth Quarter Earnings Call Presentation
L3HARRIS CY2020 FOURTH QUARTER EARNINGS CALL PRESENTATION January 29, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance on the safe harbor pro
Slide 3: Execution of strategic priorities
Execution of strategic priorities Solid 2020 results • Organic1 revenue up 2.9%...core U.S. up 6.8% and international up modestly • EPS2 of $11.60, up 13%...margin2 expansion of 120 bps to 18.0% • Adjusted FCF2 of $2,686M...returned $3,015M to shareholders; 8-day operational working capital improvem
Slide 4: Solid 4Q20 and CY20 financials
Solid 4Q20 and CY20 financials ($ million, except per share amounts) Organic2 Revenue EBIT and Margin GAAP 4,832 4,660 12,856 18,194 18,097 18,194 3,280 +0.5% 3,039 +7.9% +2.9% EBIT3 16.8% 18.0% 4,832 4,660 -3.6% 835 864 +3.5% EBIT flat margin3 17.3% 18.5% 1 1 4Q19 4Q20 CY19 CY20 4Q19 4Q20 CY19 CY20
Slide 5: Integrated Mission Systems
Integrated Mission Systems ($ million) Organic2 Revenue 1,466 2,783 5,538 • 4Q20 revenue flat and CY20 up 3.3% GAAP 1,465 5,360 5,538 +3.3% – 4Q20: Strong growth in Maritime from a ramp on manned +3.3% and classified platforms, offset by moderate decline in ISR due to aircraft timing and Electro Opt
Slide 6: Space & Airborne Systems
Space & Airborne Systems ($ million) Organic2 Revenue GAAP 1,204 1,256 4,352 4,946 • 4Q20 revenue up 4.3% and up 4.8% on an organic2 4,689 4,946 +5.5% basis; CY20 up 5.5% and up 5.8% organically2 +5.8% – 4Q20: F-35 ramp in Mission Avionics and growth in Space from recent wins, more than offset a low
Slide 7: Communication Systems
Communication Systems ($ million) Organic3 Revenue • 4Q20 revenue up 2.1% and up 3.4% on an organic3 GAAP 1,119 1,143 3,340 4,443 basis; CY20 up 3.9% and up 4.4% organically3 4,278 4,443 +3.9% – 4Q20: DoD and International Tactical up 17%, partially +4.4% offset by lower demand in Public Safety due
Slide 8: Aviation Systems
Aviation Systems ($ million) Organic3 Revenue • 4Q20 revenue down 22% and down 11% on an GAAP 1,090 845 2,368 3,448 organic3 basis; CY20 down 12% and down 3.0% 3,917 3,448 -12% organically3 -3.0% – Commercial aviation performance in-line with expectations – Growth in Defense Aviation, from ramp on c
Slide 9: Non-GAAP EPS bridges
Non-GAAP EPS1 bridges 4Q20 Year over year 2020 Year over year $0.21 $11.60 $0.45 $0.04 $3.14 $0.15 + Pension $0.76 $0.15 + Pension + Minority interest $2.85 $0.32 + Minority interest $10.26 $0.66 - Tax $(0.10) $(0.19) $(0.55) $(0.27) + Volume + Operational excellence + Operational excellence + Cost
Slide 10: 2021 full-year guidance
2021 full-year guidance Total L3Harris By Segment Organic revenue1 Margin Organic revenue 1 Margin 2 IMS up 4.0 - 6.0% 15.25 - 15.75% up 3.0 - 5.0% 18.00 - 18.50% SAS up 4.0 - 6.0% 18.25 - 18.75% EPS2 FCF2 CS up 2.5 - 4.5% 24.25 - 24.75% $12.60 - $13.00 $2.8 - $2.9B AS up 1.0 - 3.0% 13.75 - 14.25% 1
Slide 11: Non-GAAP 2021 guidance EPS bridge
Non-GAAP 2021 guidance EPS1 bridge $0.26 $12.80 $0.57 + Pension $0.25 + Tax $0.19 $11.60 $(0.07) + Volume + Operational excellence - Investments - Mix 2020 Divestitures 2 Operations Synergies Share count Other 2021 guidance mid-point 1 Non-GAAP EPS, adjusted EBIT, adjusted EBIT margin, and adjusted
Slide 12: Appendix
Appendix L3Harris CALENDAR YEAR 2020 FOURTH QUARTER EARNINGS PRESENTATION 12
Slide 13: Other financial information
Other financial information ($ million except noted) CY21 4Q19 4Q20 CY20 Guide Incremental cost synergies (net) $50 $40 $205 $50 - $80 Net interest expense $65 $64 $254 ~$255 Integration expenses, net of gains and losses1 $68 $28 $128 $75 - $100 Effective tax rate (non-GAAP) 16.9% 17.0% 17.0% 16 - 1
Slide 14: Supplemental L3Harris DoD and International Tactical Communications history
Supplemental L3Harris DoD and International Tactical Communications history ($ million) 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Orders 289 488 371 486 450 458 515 469 Sales 407 435 401 435 454 477 460 510 DoD 189 195 193 227 270 279 209 236 y/y growth % 54% 37% 33% 32% 43% 43% 8% 4% International 21
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