Slide 1: Third-Quarter 2020 Highlights and 2020 Outlook
AEROSPACE AEROSPACE COMBATSYSTEMS COMBAT SYSTEMS INFORMATION TECHNOLOGY MISSION SYSTEMS MARINE MARINE SYSTEMS SYSTEMS Third-Quarter 2020 Highlights and 2020 Outlook October 28, 2020 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: COVID-19 Update
COVID-19 Update • Businesses remain open and fully operational • COVID-related disruptions continue, but businesses managing through challenges • Strengthened defense supply base • Aerospace supply chain stabilizing • Continuing to ensure safe work environment for our employees remains a top priorit
Slide 4: Financial Highlights
Financial Highlights Three Months Variance ($ in millions, except for EPS) 3Q20 2Q20 $ % Revenue $9,431 $9,264 $167 2% Operating Earnings $1,084 $841 $243 29% Operating Margin 11.5% 9.1% +240 bps Net Earnings $834 $625 $209 33% EPS, Diluted $2.90 $2.18 $0.72 33% Free Cash Flow * $903 $622 $281 45% •
Slide 5: COVID Impact – Third Quarter 2020
COVID Impact – Third Quarter 2020 Operating Operating ($ in millions, except for EPS) Revenue Earnings Margin EPS Reported 3Q Results $ 9,431 $ 1,084 11.5% $ 2.90 Aerospace Impact(1) 541 120 +60bps 0.34 GDIT Impact(2) 237 32 ‐ 0.09 GDIT CARES Act(3) (149) ‐ +20bps ‐ All Other Volume(4) 142 52 +30bps
Slide 6: Aerospace
Aerospace Three Months Variance ($ in millions) 3Q20 2Q20 $ % Revenue $1,975 $1,974 $1 - Operating Earnings $283 $159 $124 78% Operating Margin 14.3% 8.1% +620 bps Backlog $11,964 $12,113 ($149) (1%) • Gulfstream Deliveries of 32 Aircraft, Stable Sequentially • Improving Productivity Despite COVID D
Slide 7: Combat Systems
Combat Systems Three Months Variance ($ in millions) 3Q20 2Q20 $ % Revenue $1,801 $1,754 $47 3% Operating Earnings $270 $239 $31 13% Operating Margin 15.0% 13.6% +140 bps Backlog $14,711 $14,105 $606 4% • Revenue of $1.8B Up 3% Sequentially – Solid contribution from European Land Systems (ELS) – Mor
Slide 8: Information Technology
Information Technology Three Months Variance ($ in millions) 3Q20 2Q20 $ % Revenue $2,029 $1,884 $145 8% Operating Earnings $146 $83 $63 76% Operating Margin 7.2% 4.4% +280 bps EBITDA * $249 $197 $52 26% EBITDA Margin * 12.3% 10.5% +180 bps Backlog $8,969 $8,927 $42 - • Revenue Reflecting Recovery f
Slide 9: Mission Systems
Mission Systems Three Months Variance ($ in millions) 3Q20 2Q20 $ % Revenue $1,221 $1,181 $40 3% Operating Earnings $168 $164 $4 2% Operating Margin 13.8% 13.9% -10 bps Backlog $4,794 $5,041 ($247) (5%) • Revenue Up 3% Sequentially to $1.2B, Organic Growth of about 5% – Expansion in Naval, Air and E
Slide 10: Marine Systems
Marine Systems Three Months Variance ($ in millions) 3Q20 2Q20 $ % Revenue $2,405 $2,471 ($66) (3%) Operating Earnings $223 $200 $23 12% Operating Margin 9.3% 8.1% +120 bps Backlog $41,082 $42,483 ($1,401) (3%) • Sequential Volume Stable; Up Year over Year and Year to Date – Virginia Block V and Col
Slide 11: Financial Guidance
Financial Guidance 2020 Outlook (10/28/20) EPS, diluted $11.00 – 11.10 Revenue ($B) Op Earnings ($B) or Margin ≈ $8.4 $1.13 Aerospace 125‐130 deliveries ≈ 13.5% Combat Systems ≈ $7.3 ≈ 14.3% Information Technology ≈ $8.1 ≈ 6.3% Mission Systems ≈ $4.9 ≈ 14.5% Marine Systems ≈ $9.6 ≈ 8.8% Total GD ≈ $
Slide 12: Appendix
Appendix GENERAL DYNAMICS 12
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures 2020 Nine Months ($ in millions) Third Quarter Second Quarter 2020 2019 Earnings before interest, taxes, depreciation and amortization: Net earnings $ 834 $ 625 $ 2,165 $ 2,464 Interest, net 118 132 357 350 Provision for income tax, net 144 102 388 524 Depreciation of pro
Slide 14: Non-GAAP Financial Measures – Information Technology
Non-GAAP Financial Measures – Information Technology 2020 Nine Months ($ in millions) Third Quarter Second Quarter 2020 2019 Earnings before interest, taxes, depreciation and amortization: Operating earnings $ 146 $ 83 $ 379 $ 456 Other, net 15 20 55 48 Depreciation of property, plant and equipment
Slide 15: General Dynamics
GENERAL DYNAMICS