Eltek Ltd. · NASDAQ:ELTK
Eltek — Investor Presentation (October 2023)
26 slides from Eltek's investor presentation, October 2023
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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 GAAP require. Prospective investors are encouraged to conduct their own Unless otherwise stated, all historical an
Slide 3: What is PCB?
What is PCB? General PCB Types ✓ Every electronic system contains an electronic printed circuit board ✓ PCBs are constructed from a variety of base raw materials and metals. (PCB), upon which are integrated several electronic components. The A standard PCB can be double-sided or multi-layered and ma
Slide 4: 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 5: The Israeli Economy
The Israeli Economy ✓ Israel is widely considered to be one of the most advanced Unemployment Rate Inflation Rates countries in Southwest Asia in both economic and industrial 8.0% 6.0% development. 7.5% 7.0% 5.0% 6.5% 4.0% 6.0% 3.0% ✓ With a robust and growing economy, Israel is a leading 5.5% 2.0%
Slide 6: Where Eltek PCBs are Used
Where Eltek PCBs are Used Rafael Iron Dom Opgal Imaging Systems Lockheed Martin F-35 Medtronic's PillCam Elta Radar Systems IAI Arrow ASN Satellites Corp Flir Thermal Systems 6 * Footer
Slide 7: Where Eltek PCBs are Used (Cont.)
Where Eltek PCBs are Used (Cont.) J&J SMARTABLATE Controp Vision Systems Smart Shooter ASML systems Netline Systems HiSky satellite communicationn Tandem Insulin Pumps Nyxoah Genio 7 * Footer
Slide 8: Where We Shine
Where We Shine Strong Portfolio of 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 are an
Slide 9: PCB Manufacturing Trends
PCB Mmanufacturing Trends For several decades PCB manufacturers in the West PCB Manufacturing by Region have disappeared—leaving global manufacturing highly concentrated in China and Taiwan. Europe & US China’s PCB dominance and global security issues 9% have caused western government and companies
Slide 10: 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 11: Growing to Satisfy Market Appetite
Growing to Satisfy Market Appetite R&D programs in Unlocking 30% in Vertical and Horizontal $15 million accelerated partnership with Israeli additional production mergers can fuel growth, investment program will innovation authorities. capacity via a 3rd shift in both domestically and gradually incr
Slide 12: 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 Bringing advanced tech Our proprietary production sell to defense contractors the Flex PC
Slide 13: Massive Global Opportunity Size
Massive Global Opportunity Size Total Available Market – Global PCBs, 2028 – Growing at a 4.8% CAGR $75B $7.5B Serviceable Addressable Market – Global Flex-Rigid PCBs, 2025 $0.75B-$1.0B Estimated High mix, – Growing at a 9.8% CAGR Low volume for Defense & Aerospace market Current Revenue Capacity –
Slide 14: Generating Profits in a Capital Intensive Industry
Generating Profits in a Capital Intensive Industry Complex Flex PCB Rigid PCB manufacturing supports the capital intensive Manufacturing with fixed costs of our facility, machinery, and staffing— 50%+ Positive Contribution ensuring that Eltek reaches its break even point. Breakeven Point Eltek’s Fle
Slide 15: Setting the Stage for Rampant Growth
Setting the Stage for Rampant Growth PROFIT (K$) In 2018, newly hired Eltek management led a 2023-2024 turnaround plan and implementation of “Achieving 2018-2022 Competitive Excellence”. 2016-2018 SALES (K$) Our turnaround targeted higher operational (BEP) efficiency by reducing fixed costs and impr
Slide 16: Eltek Growth Pillars
Eltek Growth Pillars Business Excellence Operational Efficiency Market Share Expansion Right pricing Adopt Achieve Competitive Excellence Focus on the US and India markets program (ACE-similar to 6-sigma) Product rationalization Look for M&A transaction (US or Europe) Use big data technology for PCB
Slide 17: Our R&D Roadmap
Our R&D Roadmap Mirrored to Global Demand of High Reliability, Miniaturization, Faster Data Traffic, and High Power 2020 GOAL ✓ Hi speed/frequency PCB’s – Comprehensive ✓ PTFE fusion bonding manufacturing technology capabilities of: ✓ Advanced raw material • 5/6G Products implementation • IC/SOM pac
Slide 18: Capital Expenditure
Capital Expenditure Investments over the years were mainly in increasing redundancy and renewing old lines 9.5 8.5 14 7.5 During the last several years, investments included increasing technical and production capabilities in 6.5 12 the fields of drilling and hot press lamination. 5.5 4.5 Investment
Slide 19: 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 Forge Ltd. (Aerospace), and prior thereto he served as the CEO of U
Slide 20: Experienced Leadership Team (Cont.)
Experienced Leadership Team (Cont.) Sagi Balter Shlomi Kisluk VP Process Engineering Quality Manager Joined Eltek in December 2015 as electroplating process engineer and Joined Eltek in October 2022 as a quality manager. Prior to joining Eltek, became VP Process Engineering in September 2019. From 2
Slide 21: 2022 Revenues
2022 Revenues By Geography By Sector Others Defense & Aerospace 5% 48.7% India 15% Netherlands 9% Israel Industrial 55% 6.4% Medical Equipment North America 8.0% 16% Telecom & CEM, Distributors & Others Networking 36.2% 0.7% 21 21
Slide 22: Customers and SKUs
Customers and SKUs Customer Distribution by Sales High Mix, Low Volume 160 13000 140 11000 120 9000 No. of Customers Annual sales - $ 100 80 7000 60 5000 40 3000 20 1000 0 0-50 50-150 150-400 400-800 800-5,000 5,000> Annual Production – PCBs per SKU Annual Sales per Customer - $ 22 22
Slide 23: Financial Snapshot
Financial Snapshot Revenues Gross Profit Income before income taxes 8M Thousands 14M 7M Thousands Thousands 45M 12M 6M 10M 20.8% 5M * EXTRAPOLATION * EXTRAPOLATION 40 21.1% * EXTRAPOLATION 40M 8M 9.7% 20.4% 4M 37 6M 3M 7.3% 35M 34 4M 2M 4.4% 2M 1M 30M 0M 0M 2020 2021 2022 2023 2020 2021 2022 2023 20
Slide 24: Company Capitalization
Company Capitalization As of June 30, 2023 Eltek has 5,907,715 issued and outstanding shares: Nistec 3,885,096 65.8% Yitzhak Nissan (Chairman) 165,224 2.8% Total Nistec and Yitzhak Nissan 4,050,320 68.6% Public Float 1,857,395 31.4% Total 5,907,715 100.0% As of June 30, 2023: 337,134 Outstanding Opt
Slide 25: Business Factors Implications
Business Factors Implications Medical sector Defense budgets Exchange rate Qualified labor availability Rate of production capacity increase Demand Vs. western Raw materials prices Footprint in India Aerospace sector Footprint in the USA world capacity and availability Installed capacity Energy Pric
Slide 26: 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. Phone: (480) 716-8645 Email: info@eltek.us 26