Slide 1: Investor Conference 2023
Investor Conference 2023 March 2023
Slide 2: Safe Harbor
2 2023 © Elbit Systems Proprietary Safe Harbor This presentation, reference to which herein includes information that may be provided by Elbit Systems Ltd. ("Elbit systems", and collectively with any or all of its subsidiaries, the “Company”) orally or in writing in connection therewith, is provided
Slide 3: Financial Results
Financial Results
Slide 4: 2022 Financial Highlights
4 2023 © Elbit Systems Proprietary 2022 Financial Highlights $15.1Bn $5.5Bn $357M $240M Backlog Revenues Non-GAAP (*) Operating cashflow Operating income (*)GAAP Operating Income: $368m. For non-GAAP reconciliations reference the appendix to this presentation and Elbit Systems’ investor relations we
Slide 5: Financial Results | 2022
5 2023 © Elbit Systems Proprietary Financial Results | 2022 2021 2022 Change Sales ($M) 5,279 5,512 4.4% Non-GAAP Operating Profit ($M) 451 357 (20.8%) Non-GAAP Operating margin (%) 8.5% 6.5% (206 bps) GAAP Operating Profit ($M) 419 367 (12.4%) GAAP Operating Profit margin (%) 7.9% 6.7% (128 bps) No
Slide 6: Financial Results | Q4 2022
6 2023 © Elbit Systems Proprietary Financial Results | Q4 2022 2021 2022 Change Sales ($M) 1,494 1,506 8.0% Non-GAAP Operating Profit ($M) 120 103 (14.2%) Non-GAAP Operating margin (%) 8.0% 6.8% (119 bps) GAAP Operating Profit ($M) 107 120 12.1% GAAP Operating Profit margin (%) 7.2% 8.0% 81 bps Non-
Slide 7: 2022 Results | Revenues by Areas of Operation
7 2023 © Elbit Systems Proprietary 2022 Results | Revenues by Areas of Operation Others Others 4% 3% Electro Optics Electro Optics 9% 10% 453 524 Airborne Airborne 38% 37% 2,006 1,650 2,012 Areas of Areas of Land Land 1,255 Operations 22% 1,217 Operations 24% 2021 2022 1,372 1,611 C4ISR C4ISR 26% 29
Slide 8: 2022 Results | Revenues by Geographical Regions
8 2023 © Elbit Systems Proprietary 2022 Results | Revenues by Geographical Regions Other Other LATAM 2% LATAM 3% 2% 2% North America North America 127 120 27% 31% APAC 1,609 1,501 APAC 27% 1,444 1,490 26% 1,405 Geographical Geographical Regions Regions 2021 2022 885 1,095 1,072 1,106 1,244 Israel Eu
Slide 9: Annual Dividend | Returning cash to shareholders
9 2023 © Elbit Systems Proprietary Annual Dividend | Returning cash to shareholders 2.0 1.86 2.00 1.76 1.76 1.76 1.67 1.60 1.5 1.44 1.28 1.20 1.20 1.0 0.5 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Annual Dividend Per Share ($) Distributed more than $740m to shareholders during the perio
Slide 10: Business Environment
Business Environment
Slide 11: Israel | Largest Israeli Defense Company with Multiple Leading Positions
11 2023 © Elbit Systems Proprietary Israel | Largest Israeli Defense Company with Multiple Leading Positions UAV Artillery Electro-Optics Precision Munitions Electronic Warfare More than 80% of the IDF’s UAVs Roem - New 155mm Howitzers Production and Maintenance Leveraging IMI acquisition IMoD EW Ce
Slide 12: Elbit Achievements in Israel 2022 Clip
Elbit Achievements in Israel 2022 Clip
Slide 13: USA | Defense Budgets growing to address the evolving threat environment
13 2023 © Elbit Systems Proprietary USA | Defense Budgets growing to address the evolving threat environment ■ US Air Force and US Navy budgets US DoD Budget - Investment Accounts ($Bn) growing to address the Chinese challenge 350 ■ US Army budgets benefitting from restocking of equipment and 300 14
Slide 14: USA | A Strong Presence in a Strategic Market
14 2023 © Elbit Systems Proprietary USA | A Strong Presence in a Strategic Market ■ Elbit Systems is an integral part of the US Defense industrial base. ■ Supplying directly to the US DOD and working with all major prime contractors ■ SPARTON and Elbit Night Vision acquisitions have strengthened Elb
Slide 15: USA | Positions on multiple platforms and programs
15 2023 © Elbit Systems Proprietary USA | Positions on multiple platforms and programs F35 F15 F16 F18 V22 AH-64 T7 Bradley Underwater Warfare Precision Fires Night Vision and Soldier Systems Survivable C4I
Slide 16: Asia Pacific | Significant potential from Abraham Accords Countries
16 2023 © Elbit Systems Proprietary Asia Pacific | Significant potential from Abraham Accords Countries Annual Defense Spend 2022 UAE Morocco Bahrain $25.2 Bn $6.8 Bn $1.9 Bn Source: Source: Instagram Members of the Abu Dhabi Royal Family meeting Elbit Systems Emirates Employees at IDEX 2023 Elbit S
Slide 17: Europe | Defense budgets growing
17 2023 © Elbit Systems Proprietary Europe | Defense budgets growing Total European Defense Spend (US$ Bn) 500 433 440 450 414 423 400 405 400 388 361 350 334 306 319 300 250 200 150 100 50 0 2020 2021 2022 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F Source: Recapitalizing armed forces and the d
Slide 18: Europe | Strong positions to benefit from defense budget growth
18 2023 © Elbit Systems Proprietary Europe | Strong positions to benefit from defense budget growth ■ Part of the domestic defense industrial base ■ Partnerships with leading prime contractors Elbit Systems Subsidiary Significant subsidiaries and local presence in multiple countries
Slide 19: Europe | Operational Insights from Russia - Ukraine War
19 2023 © Elbit Systems Proprietary Europe | Operational Insights from Russia - Ukraine War The conflict has highlighted Drones & UAV Critical enabler for Artillery & Loitering Munitions the relevance of ISTAR missions Provide a unique capability Counter UAS Systems Elbit Systems’ Long range fires p
Slide 20: Business Achievements Clip
Business Achievements Clip
Slide 21: Order Backlog & Revenues | From Growth to Transformation
21 2023 © Elbit Systems Proprietary Order Backlog & Revenues| From Growth to Transformation 16,000 14,000 Transformation 15,100 13,700 12,000 10,000 Growth 11,024 10,029 9,399 8,000 7,561 6,000 6,909 5,511 6,265 6,564 5,279 5,683 5,822 4,508 4,663 3,684 4,000 3,108 3,260 3,378 2,889 2,925 2,958 2,00
Slide 22: Operational Transformation to support significant revenue growth
22 2023 © Elbit Systems Proprietary Operational Transformation to support significant revenue growth Production sites Our People Supply chain OneERP
Slide 23: Upgrading and Expanding Manufacturing Facilities
23 2023 © Elbit Systems Proprietary Upgrading and Expanding Manufacturing Facilities Ramat Hasharon - Heavy Industry Robotics Yokneam - Heavy Industry Robotics Karmiel - New production line for Gen. 5 Avionic systems Capacity +100% Capacity +100% Capacity +300% Tel Hai - New SMT Line Rehovot - Advan
Slide 24: Building new facilities around the world
24 2023 © Elbit Systems Proprietary Building new facilities around the world US - South Carolina | 12,600 sqm UK - Bristol | 5,000 sqm GERMANY - ULM | 800 sqm Heavy Manufacturing Development and production Radio development and production ISRAEL - Ramat Beka | 50,000 sqm ISRAEL – Modi’in | 20,000 sq
Slide 25: Investing in Our People
25 2023 © Elbit Systems Proprietary Investing in Our People ■ Headcount +5% in 2022 ■ Retention plans - expenses of approximately $72m in 2022 ■ Revenue per employee - up significantly over the last 5 years ■ Continue to recruit around the world Increasing our workforce to deliver a growing backlog
Slide 26: Supply chain | Significant disruption but pressures easing
26 2023 © Elbit Systems Proprietary Supply chain | Significant disruption but pressures easing Supply chain status: ■ Raw materials - Significantly improved ■ Freight and Transportation - No longer a bottle neck ■ Electronic components - Continues to impact the business How we addressed the challeng
Slide 27: OneERP | Digital transformation of all Business Units
27 2023 © Elbit Systems Proprietary OneERP | Digital transformation of all Business Units Cash flow | Profit | Efficiency More than More than More than 27 20 14 11 2B$ 11K 4K Geographical Software Companies ERP systems Managed Managed Managed Sites Procurement Suppliers Projects Our ERP integration
Slide 28: Summary
28 2023 © Elbit Systems Proprietary Summary Multiple Global Positions Broad and Relevant Portfolio Operational transformation to support growth and improved performance Focused on long term value creation for all our stakeholders
Slide 29: Questions & Answers
Questions & Answers
Slide 30: Appendix | Non-GAAP Financial Data
30 2023 © Elbit Systems Proprietary Appendix | Non-GAAP Financial Data Non-GAAP financial data is presented to enable investors to have additional information on our business performance as well as a further basis for periodical comparisons and trends relating to our financial results. We believe su
Slide 31: Reconciliation of GAAP to Non-GAAP Supplemental Financial Data
31 2023 © Elbit Systems Proprietary Reconciliation of GAAP to Non-GAAP (Unaudited) Supplemental Financial Data Year Ended December 31, Years Ended December 31, 2021 2022 2021 2022 GAAP gross profit 1,358.0 1,373.3 GAAP net income attributable to Elbit Systems’ shareholders 274.4 275.4 Adjustments: A
Slide 32: Thank You
THANK YOU INVESTOR CONTACTS Dr. Yaacov (Kobi) Kagan, Executive VP - CFO Tel: +972-77296663 | kobi.kagan@elbitsystems.com Rami Myerson, Investor Relations Director elbitsystems.com Tel: +972-772948984 | rami.myerson@elbitsystems.com