Slide 1: Fourth-Quarter and Full-Year 2020 Highlights and 2021 Outlook
AEROSPACE AEROSPACE MARINE SYSTEMS COMBAT SYSTEMS TECHNOLOGIES Fourth-Quarter and Full-Year 2020 Highlights and 2021 Outlook January 27, 2021 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 Three Months Variance ($ in millions, except for EPS) 4Q20 3Q20 $ % Revenue $10,481 $9,431 $1,050 11% Operating Earnings $1,293 $1,072 $221 21% Operating Margin 12.3% 11.4% +90 bps Net Earnings $1,002 $834 $168 20% EPS, Diluted $3.49 $2.90 $0.59 20% Cash from Operations $2,562 $
Slide 4: Aerospace
Aerospace Three Months Variance ($ in millions) 4Q20 3Q20 $ % Revenue $2,435 $1,975 $460 23% Operating Earnings $401 $283 $118 42% Operating Margin 16.5% 14.3% +220 bps Backlog $11,626 $11,964 ($338) (3%) • Gulfstream 4Q Deliveries of 40, led by the G600 and G650 • 4Q Demonstrated Operating Leverage
Slide 5: Marine Systems
Marine Systems Three Months Variance ($ in millions) 4Q20 3Q20 $ % Revenue $2,857 $2,405 $452 19% Operating Earnings $247 $223 $24 11% Operating Margin 8.6% 9.3% - 70 bps Backlog $49,982 $41,082 $8,900 22% • Volume Increased 19% Sequentially and 9% for the Year – Virginia Block V and Columbia contin
Slide 6: Combat Systems
Combat Systems Three Months Variance ($ in millions) 4Q20 3Q20 $ % Revenue $1,960 $1,801 $159 9% Operating Earnings $309 $270 $39 14% Operating Margin 15.8% 15.0% +80 bps Backlog $14,567 $14,711 ($144) (1%) • Revenue for 2020 reached $7.2B, up 3% after 12.3% Growth in 2019 – U.S. business grew about
Slide 7: Basis for GD Technologies Reporting Segment
Basis for GD Technologies Reporting Segment • Rationale for New Segment Reporting – Accounting change to reflect shifts in the market and the way we are running the business • Industry consolidating IT and hardware capabilities • Customers requiring solutions melding technology, hardware and softwar
Slide 8: Technologies
Technologies Three Months Variance ($ in millions) 4Q20 3Q20 $ % Revenue $3,229 $3,250 ($21) (1%) Operating Earnings $352 $314 $38 12% Operating Margin 10.9% 9.7% +120 bps EBITDA * $472 $432 $40 9% EBITDA Margin * 14.6% 13.3% +130 bps Total Estimated Contract $41,041 $40,005 $1,036 3% Value • Turnin
Slide 9: COVID-19 Update
COVID-19 Update • Continuing to ensure safe work environment for our employees remains a top priority • COVID-related disruptions continue, but businesses managing through challenges and supply chain perturbations 9
Slide 10: Financial Guidance
Financial Guidance 2020 Actual 2021 Guidance EPS, diluted $11.00 $11.00 – 11.05 Operating Operating Revenue ($B) Margin / Revenue ($B) Margin / Earnings ($B) Earnings ($B) ≈ $8.0 $8.1 Aerospace 13.4% ≈112 – 117 ≈ 12.5% 127 deliveries deliveries Marine Systems $10.0 8.6% ≈ $10.3 ≈ 8.3% Combat Systems
Slide 11: Appendix
Appendix GENERAL DYNAMICS 11
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures 2020 Twelve Months ($ in millions) Fourth Quarter Third Quarter 2020 2019 Earnings before interest, taxes, depreciation and amortization: Net earnings $ 1,002 $ 834 $ 3,167 $ 3,484 Interest, net 120 118 477 460 Provision for income tax, net 183 144 571 718 Depreciation of
Slide 13: Non-GAAP Financial Measures – Technologies
Non-GAAP Financial Measures – Technologies 2020 Twelve Months ($ in millions) Fourth Quarter Third Quarter 2020 2019 Earnings before interest, taxes, depreciation and amortization: Operating earnings $ 352 $ 314 $ 1,211 $ 1,311 Other, net 12 15 67 52 Depreciation of property, plant and equipment 35
Slide 14: GENERAL DYNAMICS
GENERAL DYNAMICS