L3harris Technologies, Inc. · NYSE:LHX
L3harris Technologies — Merger or Acquisition (December 2022)
10 slides from L3harris Technologies's merger presentation, Dec 18, 2022
Slide 1: L3Harris to acquire Aerojet Rocketdyne
L3Harris to acquire Aerojet Rocketdyne December 18, 2022
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements that reflect management's current expectations, assumptions and estimates of future performance and economic conditions. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securit
Slide 3: Key takeaways…the right asset for L3Harris
Key takeaways…the right asset for L3Harris Advances L3Harris’ Trusted Disruptor strategy and broadens reach in weapon 1 systems and space Aerojet Rocketdyne is a national asset closely aligned with U.S. security and budget 2 priorities…highly skilled and engaged employee base also an asset Access to
Slide 4: Transaction overview
Transaction overview • Purchase price of $58 per share implies transaction value of $4.7B, inclusive of net debt Transaction Structure • 2024E adjusted EBITDA1 multiple of ~12x, including run rate cost synergies • Business will operate as part of a new standalone segment post-transaction • Advances
Slide 5: Defense: National asset with unique capabilities
National asset with unique capabilities By The Numbers ✓ Full spectrum of Key Defense Programs propulsion for strategic, missile defense and tactical missile systems $2.5B ~12% / ~14% Revenue1 EBIT / EBITDA margin1 ✓ Technologies for Standard Missile Patriot/PAC-3 strategic defense, Defense missile
Slide 6: Market tailwinds to drive sustained demand
Market tailwinds to drive sustained demand $40B+ $30B+ $10B+ $25B+ DoD’s FY23 NDAA Approved U.S. Total approved NASA FY23 for missile and funding for FMS orders for budget request, missile defense defense-related Aerojet Rocketdyne up 8%, supported systems assistance to systems in 2022 by Artemis mi
Slide 7: Financially attractive…diversifies and enhances portfolio resilience
Financially attractive…diversifies and enhances portfolio resilience 1 1 TDL Increased Revenue ~$18B ~$2B ~$20B Scale Improved Backlog ~$21B ~$7B ~$30B Visibility Adjusted Larger EBITDA ~$3.8B ~$0.3B ~$4B Earnings Base Adjusted Maintain best EBITDA ~21% ~14% 20%+ in class margin Margin Long / Short
Slide 8: Supporting information
Supporting information L3HARRIS 8
Slide 9: Regulation G disclosures
Regulation G disclosures To supplement our condensed consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we provide additional measures, including Adjusted EBITDA and Adjusted EBITDA Margin. L3Harris management believes that these non-
Slide 10: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures $million 2021 Net Income $ 1,842 Adjustments: Income taxes 440 Net interest expense 265 Depreciation and amortization 967 L3Harris merger integration costs 128 Business divestiture-related (gains) losses (220) Impairment of goodwill and other assets and
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