Slide 1: L3Harris 2021 Second Quarter Earnings Call Presentation
August 3, 2021 Use of U.S. DoD visual information does not imply or constitute DoD endorsement. L3HARRIS 2021 SECOND QUARTER EARNINGS CALL PRESENTATION
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: L3Harris strategic priorities update
L3Harris strategic priorities update • Organic1 revenue up 6.2%, with growth across all segments and end-markets Grow revenue...well-aligned portfolio • Funded B:B of 1.00 and 1.05 YTD...notable award activity across all domains with investment in innovation • FY22 DoD budget reflects stability...LH
Slide 4: Strong L3Harris 2Q21 financials
Strong L3Harris 2Q21 financials ($ million, except per share amounts) Revenue EBIT and Margin GAAP 4,445 4,668 9,071 9,235 9,235 1,731 8,881 +4.0% 1,618 +7.0% Organic1 4,396 4,668 EBIT2 810 869 18.7% +6.2% +7.3% 17.8% EBIT 18.6% margin2 18.2% 2Q20 2Q21 1H20 1H21 2Q20 2Q21 1H20 1H21 EPS Cash Flow GAA
Slide 5: Non-GAAP 2Q21 EPS bridge
Non-GAAP 2Q21 EPS1 bridge $0.07 $3.26 $0.18 +15% + Pension $0.10 $0.08 + Tax $2.83 + Volume / Productivity - Internal Investments 2Q20 Actual Operations Synergies Share count Other 2Q21 Actual 1 Non-GAAP EPS, adjusted EBIT, adjusted EBIT margin and adjusted free cash flow (FCF) are NGFMs; refer to N
Slide 6: Integrated Mission Systems
Integrated Mission Systems ($ million) Revenue 2,701 2,945 +9.0% 2Q21 • Revenue up 12% 1,494 – Growth in ISR from recently awarded NATO program, 1,331 +12% and in Maritime from ramp on key platforms – Decline in Electro Optical due to product delivery timing 2Q20 2Q21 1H20 1H21 • Operating income in
Slide 7: Space & Airborne Systems
Space & Airborne Systems ($ million) Revenue GAAP 1,249 1,287 2,441 2,523 2Q21 2,434 2,523 +3.7% • Revenue up 3.0% and up 3.2% on an organic1 basis – Ramp on missile defense and other responsive Space programs, as well as classified growth in Intel & Cyber Organic1 1,247 1,287 +3.2% – Strength outwe
Slide 8: Communication Systems
Communication Systems ($ million) Revenue 2Q21 GAAP 1,112 1,127 2,206 2,239 • Revenue up 1.3% and up 3.2% on an organic1 basis 2,173 2,239 – Growth in Tactical Communications, including double- +3.0% digits internationally... Organic1 1,092 1,127 +3.2% – ...and in Global Communications Solutions and
Slide 9: Aviation Systems
Aviation Systems ($ million) Revenue 2Q21 GAAP 800 809 1,811 1,623 1,661 1,623 • Revenue up 1.1% and up 4.7% on an organic1 -2.3% basis Organic1 773 809 +4.7% – Double-digit growth in commercial aerospace from recovering training and avionics product sales – Growth in Defense Aviation from a ramp in
Slide 10: Revised 2021 full-year guidance
Revised 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% (upper-end) up 3.0 - 5.0% ~18.50% (vs. 18.00 - 18.50%) SAS up 4.0 - 6.0% 18.25 - 18.75% (upper-end) EPS2 FCF2 CS up 2.5 - 4.5% 24.25 - 24.75% $12.80 - $13.00
Slide 11: Non-GAAP 2021 guidance EPS bridge
Non-GAAP 2021 guidance EPS1 bridge $12.90 $0.30 +11% + Pension $0.76 + Tax $11.60 $0.31 $(0.38) $0.31 + Volume / Productivity - Internal Investments 2020 Completed 2 Operations Synergies Share count Other 2021 guidance divestitures mid-point Variance to Prior Guidance $(0.31) $0.07 $0.06 $0.19 $0.04
Slide 12: Other financial information
Other financial information ($ million except noted) CY21 2Q20 2Q21 Guide Incremental cost synergies (net) $60 $27 ~$80 (prior $50 - $80) Net interest expense $65 $65 ~$255 Integration expenses1 $37 $17 $75 - $100 Effective tax rate (non-GAAP) 16.9% 16.4% ~16% (prior 16 - 17%) Average diluted shares