Slide 1: 4Q18 and 2018 Highlights and 2019 Guidance
4Q18 and 2018 Highlights and 2019 Guidance January 30, 2019 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 Financial metrics at all-time highs: 4Q18 2018 Revenue $10.4B $36.2B Continued Operating Earnings $1.23B $4.46B Strong Financial Net Income* $909M $3.36B Earnings per Share* $3.07 $11.22 Performance • Revenue up 25% in 4Q; 17% for the year – all segments expanded • Aerospace ros
Slide 4: Financial Highlights (continued)
Financial Highlights (continued) 2018 Cash from Operations $3.15B Value-Creating Free Cash Flow* $2.46B Capital Deployment • Reshaped GDIT to enhance market position • Acquired CSRA for $9.7B • CSRA immediately accretive excluding transaction costs • Returned $2.8 billion to shareholders • Repurchas
Slide 5: Aerospace Highlights
Aerospace Highlights • Annual revenue grew 4% to $8.5B Q4 grew by 36.4% to $2.7B • Delivered 121 aircraft consistent with initial guidance of 115 – 125 aircraft • Successful transition from G450 to G500 G500 received type and production certification Delivered 10 G500s in the second half G45
Slide 6: Defense Highlights
Defense Highlights Combat Systems Revenue up 5% over 2017; exceptional margins at 15.4% Stryker and Abrams awards in excess of $1B each demonstrate U.S. Army commitment to these franchises AJAX transition to low rate production $445M award for Romanian wheeled vehicles MPF award for $335M
Slide 7: Defense Highlights (continued)
Defense Highlights (continued) Information Technology Revenue up 87.5% over 2017 (4.3% excluding CSRA); margins at 7.4% (9.6% excluding CSRA amortization) Reshaped GDIT into a premier provider of federal IT services; divested non-core contact center and SETA businesses Win rate >75% in 2018
Slide 8: Financial Guidance
Financial Guidance 2019 Guidance EPS* $11.60 – 11.70 Revenue Operating Earnings ~$9.7B Slightly in excess of $1.5B Aerospace ~145 business jets Margin ~15.5% Combat Systems $6.5 – 6.6B $965 – 975M Information Technology ~$8.3B Margin ~7.5% Mission Systems $4.8 – 4.9B Margin mid- to high-13% ~$770M M
Slide 9: Appendix
Appendix GENERAL DYNAMICS
Slide 10: Non-GAAP Financial Measures
Non-GAAP Financial Measures $ in millions a) We believe earnings before interest, taxes, depreciation and amortization (EBITDA) is a useful measure for investors because it provides another measure of our profitability and our ability to service our debt. We calculate EBITDA by adding back interest,
Slide 11: GENERAL DYNAMICS
GENERAL DYNAMICS