L3harris Technologies, Inc. · NYSE:LHX
L3harris Technologies — Investor Presentation (July 2019)
17 slides from L3harris Technologies's investor presentation, Jul 1, 2019
Slide 1: L3Harris Technologies Overview
Use of U.S. DoD visual information does not imply or constitute DoD endorsement. L3HARRIS TECHNOLOGIES OVERVIEW July 1, 2019
Slide 2: Forward Looking Statements
Forward Looking Statements L3HARRIS L3HARRIS TECHNOLOGIES OVERVIEW Proprietary Information 2 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 condi
Slide 3: L3Harris Technologies overview
DoD 56% 23%Other 21% L3Harris Technologies overview 1 CY18 reported financials. 2 EBIT = earnings before interest and taxes adjusted to exclude discontinued operations and deal and integration costs. 3 Operating cash flow less net capital expenditures, excluding deal and integration costs. Engineers
Slide 4: Summary
Summary Chairman & Chief Executive Officer: William M. BrownVice Chairman, President & Chief Operating Officer: Christopher E. Kubasik12 total board members…10 independent directors drawn equally from Harris and L3 Boards Fully staffed integration office…weekly CEO/COO reviewsClear roadmap to meet s
Slide 5: Diverse board of business and thought leaders
9 12 9 3 7 3 7 8 10 Senior P&L Experience Public Company Board M&A/Post Merger Integration Diverse Aerospace & Defense Military Service Technology Finance Expertise Global Operations Diverse board of business and thought leaders William Brown Sallie Bailey Chris Kubasik Robert Millard Thomas Corcora
Slide 6: Seasoned and experienced leadership team
Seasoned and experienced leadership team Bill BrownChairman & CEO Omar FathiVP & CIO Tania HannaVP,Government Relations Jim GirardVP & CHRO Jim JordanoVP, Integration Christopher KubasikPresident & COO Jay MalaveSVP & CFO Scott MikuenSVP, General Counsel & Secretary Ross NiebergallVP & CTO Greg Tayl
Slide 7: Segment descriptions
Segment descriptions Ed Zoiss, President Mission solutions for space and airborne domain with defense, intelligence and commercial applications Space communications Small optical payloads Ruggedized military displays Intelligence systems Todd Gautier, President Commercial and military aviation solut
Slide 8: Integrated Mission Systems
Integrated Mission Systems ISRComplex intelligence, surveillance and reconnaissance systems for large military platforms MaritimeElectrical and electronic systems and integration for large naval platforms Electro OpticalAdvanced Electro-Optic / Infrared (EO/IR), laser imaging and targeting sensor sy
Slide 9: Space and Airborne Systems
Space and Airborne Systems SpacePayloads, sensors, and full-mission solutions for classified, civil and commercial customers AvionicsSensors, hardened electronics, release systems, data links and antennas supporting fixed wing and rotary platforms Electronic WarfareMulti-spectral situational awarene
Slide 10: Communication Systems
Communication Systems Tactical CommunicationsRadio communications, SATCOM terminals and battlefield management networks for U.S. and international defense customers Night VisionFull suite of helmet and weapon mounted integrated systems for U.S. and international customers Broadband Communications Se
Slide 11: Aviation Systems
Aviation Systems Commercial Aviation ProductsAirport security & detection solutions and airborne avionics products - traffic collision avoidance, flight recorders Commercial and Military TrainingFlight and maintenance simulation, pilot training to military customers, FAA, and global airlines Mission
Slide 12: Operating as one company
Operating as one company… One team with common goals and valuesLeveraging best practicescompany-wideScalable, global platform to driveefficiency and growthStrategic investments ininnovationUnwavering focus on customerquality and on-time deliveryLeader in core growth markets and technologiesUnified t
Slide 13: …to drive cost synergies…
…to drive cost synergies… 1 Exclude deal related costs. Year 3 savings $450M Corporate and segment consolidation Functional efficiencies, OH reduction & shared services Supply chain and footprint rationalization $500M gross$300M net Cash investment1 Executive Steering Committee Integration Managemen
Slide 14: …and generate cash flow growth
…and generate cash flow growth Proforma CY18 Organic Growth Synergies + Capital Efficiencies Year 3 Run Rate ~$3B1 ~$0.5B~$0.5B 1 Free cash flow = operating cash flow less net capital expenditures, excluding deal and integration costs. . $1.9B1 Strong free cash flow profile… …supporting shareholder
Slide 15: Key investment themes
Key investment themes L3HARRIS L3HARRIS TECHNOLOGIES OVERVIEW Proprietary Information 14 Stronger platform for long-term revenue growthCreates scale with a well-balanced portfolioAccelerates innovation and time to marketShared operating philosophy to continue driving margin expansionFocus on operati
Slide 16: Preliminary L3Harris Pro forma Quarterly Segment Financials
Appendix: Preliminary L3Harris Pro forma Quarterly Segment Financials ($millions) 1 Includes intersegment revenue and excludes legacy HRS Night Vision revenue. 2 Does not include adjustments to give effect to the merger as if it occurred as of the beginning of Q1 CY2018. Revenue by Segment 1 Approxi
Slide 17: Other L3Harris Supplemental Information
Appendix: Other L3Harris Supplemental Information 1 Combination of the pro forma effective tax rates of the two companies, which exclude the tax effect of integration costs and other items as reported during those periods. L3HARRIS L3HARRIS TECHNOLOGIES OVERVIEW Proprietary Information 17 Pro forma
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