L3harris Technologies, Inc. · NYSE:LHX
L3harris Technologies — Q3 2020 Earnings Presentation
14 slides from L3harris Technologies's earnings presentation, Oct 30, 2020
Slide 1: L3Harris CY2020 Third Quarter Earnings Call Presentation
L3HARRIS CY2020 THIRD QUARTER EARNINGS CALL PRESENTATION October 30, 2020
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 • 3Q net cost synergies of $50M...on track to deliver $185M for 2020 and exit the year Execute seamless integration...$500M • with 3Q cost $250Msynergies of $50M,savings net cumulative on track for $185M in gross cost synergies • • Plan Planto toachieve achieveat
Slide 4: Solid 3Q20 financials
Solid 3Q20 financials ($ million, except per share amounts) Organic2 Revenue EBIT and Margin GAAP 4,431 4,463 8,024 13,534 13,265 13,534 +2.0% 2,416 2,204 +10% +4.1% EBIT3 16.6% 17.9% 4,431 4,463 766 798 +0.7% +4.2% EBIT +4.4% margin3 17.3% 17.9% 1 1 3Q19 3Q20 YTD19 YTD20 3Q19 3Q20 YTD19 YTD20 EPS C
Slide 5: Integrated Mission Systems
Integrated Mission Systems ($ million) Organic2 Revenue 3Q20 GAAP 1,292 1,372 1,317 4,073 • Revenue up 6.2% 3,894 4,073 +4.6% –Growth in Maritime from a ramp on manned and +4.6% classified platforms and in ISR on aircraft missionization demand 1,292 1,372 +6.2% –Modest decline in Electro Optical due
Slide 6: Space & Airborne Systems
Space & Airborne Systems ($ million) Organic2 Revenue GAAP 1,173 1,249 3,148 3,690 3Q20 3,690 3,485 +5.9% • Revenue up 6.5% and up 6.8% on an organic2 +6.1% basis 1,249 –F-35 growth in Mission Avionics and classified growth 1,173 +6.5% in Intel & Cyber +6.8% –Partially offset by program timing in Sp
Slide 7: Communication Systems
Communication Systems ($ million) Organic3 Revenue 3Q20 GAAP 1,032 1,094 2,221 3,300 3,159 3,300 • Revenue up 6.0% and up 6.7% on an organic3 basis +4.5% – Growth in Tactical Communications and Integrated Vision +4.7% Systems (IVS) 1,094 – International Tactical demand from the Middle East, Europe 1
Slide 8: Aviation Systems
Aviation Systems ($ million) Organic3 Revenue GAAP 948 792 1,278 2,603 3Q20 2,827 2,603 • Revenue down 16% and down 4.1% on an organic3 -7.9% basis flat – Commercial aviation performance in-line with expectations 948 – Growth in Defense Aviation Products and Mission 792 -16% -4.1% Networks 1 3Q19 3Q
Slide 9: Non-GAAP 3Q20 EPS bridge
Non-GAAP 3Q20 EPS1 bridge $0.04 $2.84 $0.13 $0.18 + Pension $2.58 + Minority interest $(0.05) $0.06 - Interest $(0.10) + Volume + Operational efficiencies - Mix - Investments 3Q19 Actual Divestitures Pandemic- Operations Synergies Share count Other 3Q20 Actual related end- market 1 Adjusted EBIT, ad
Slide 10: 2020 full-year guidance
2020 full-year guidance Total L3Harris By Segment Organic revenue1 Margin2 Organic revenue 1 Margin 2 IMS up ~6.0% ~15.00% (vs. up 5.5 - 7.0%) (vs. 13.50%+) up ~4.0% ~17.75% (vs. up 3.0 - 5.0%) (vs. 17.50%+) SAS up ~7.0% ~18.75% (vs. up 6.0 - 7.5%) EPS2 FCF2 CS up ~4.0% ~24.00% (vs. up 3.5 - 5.0%) (
Slide 11: Non-GAAP 2020 guidance EPS bridge
Non-GAAP 2020 guidance EPS1 bridge $0.22 ~$11.55 $0.45 $0.69 + Pension Minority $10.26 + Interest - $0.67 Tax $(0.19) $(0.55) + Volume + Operational efficiencies - Mix 2019 Adjusted Divestitures Pandemic- Operations Synergies Share Other 2020 guidance Pro forma2 related end- count market Variance to
Slide 12: Appendix
Appendix L3Harris CALENDAR YEAR 2020 THIRD QUARTER EARNINGS PRESENTATION 12
Slide 13: Other financial information
Other financial information ($ million except noted) CY20 3Q19 3Q20 Guide Cost synergies (net) $15 $50 ~$185 Net interest expense $58 $62 ~$255 Integration expenses1 $35 $27 ~$145 (prior ~$158) Effective tax rate (non-GAAP) 17.1% 17.0% ~17% Noncontrolling interests, net of income taxes2 $6 $— ~$7 (p
Slide 14: Supplemental L3Harris tactical communications history
Supplemental L3Harris tactical communications history ($ million) 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Orders 289 488 371 486 450 458 515 Sales 407 435 401 435 454 477 460 DoD 189 195 193 227 270 279 209 International 218 240 208 208 184 198 251 Funded Backlog1 1,034 1,079 1,049 1,100 1,096 1,077 1,13
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