L3harris Technologies, Inc. · NYSE:LHX
L3harris Technologies — Q4 2021 Earnings Presentation
14 slides from L3harris Technologies's earnings presentation, Jan 31, 2022
Slide 1: L3Harris 2021 Fourth Quarter Earnings Call Presentation
L3HARRIS 2021 FOURTH QUARTER EARNINGS CALL PRESENTATION January 31, 2022 Use of U.S. DoD visual information does not imply or constitute DoD endorsement. PROPRIETARY INFORMATION
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: Strategic focus areas
Strategic focus areas Grow revenue...innovate, disrupt, and expand • 2021 organic1 revenue up 2% and total organic1 backlog up 5% • 2022 organic1 revenue growth of 1 - 3%...supply chain and ISR aircraft timing impact 1H • Multi-pronged strategy to support sustainable and differentiated growth • LHX
Slide 4: L3Harris 4Q21 and CY21 financials
L3Harris 4Q21 and CY21 financials ($ million, except per share amounts) Revenue EBIT and Margin GAAP 4,660 4,350 18,194 17,814 17,542 17,814 3,280 3,397 +4% +2% 19.1% 18.0% Organic1 EBIT2 864 836 4,379 4,350 (3)% (1)% EBIT 19.2% margin2 18.5% 4Q20 4Q21 CY20 CY21 4Q20 4Q21 CY20 CY21 EPS Cash Flow Ope
Slide 5: Non-GAAP EPS bridges
Non-GAAP EPS1 bridges 4Q21 year over year 2021 year over year $12.95 $0.32 +12% + Pension $0.76 + Tax $11.60 $0.32 $3.30 $(0.43) $0.67 $0.07 $(0.29) $3.14 $0.22 + Pension +5% $(0.24) $0.04 + Volume / e3 Performance $(0.14) $0.21 + Tax - R&D Investments + e3 Performance - Mix + Expense Management - M
Slide 6: Integrated Mission Systems 4Q21 and CY21 Results
Integrated Mission Systems ($ million) Revenue 4Q21 and CY21 Results 5,839 5,538 +5% • 4Q21 revenue up 6% and CY21 up 5% – 4Q21 • Double-digit growth in both ISR, from aircraft missionization, and 1,465 1,558 Electro Optical on higher product deliveries +6% • Partially offset by classified program t
Slide 7: Space & Airborne Systems 4Q21 and CY21 Results
Space & Airborne Systems ($ million) Revenue 4Q21 and CY21 Results GAAP 1,256 1,286 4,946 5,093 5,093 • 4Q21 revenue up 2% and CY21 organic1 revenue up 3% 4,939 +3% – 4Q21 • High-single-digit growth in Space from ramping missile defense and other responsive programs • Partially offset by transition
Slide 8: Communication Systems 4Q21 and CY21 Results
Communication Systems ($ million) Revenue 4Q21 and CY21 Results GAAP 1,143 1,018 4,443 4,287 • 4Q21 revenue down 11% and CY21 organic1 revenue down 3% 4,402 4,287 (3)% – 4Q21 • Decline in Tactical Communications due to product delivery delays from supply chain-related constraints • Lower volume on l
Slide 9: Aviation Systems 4Q21 and CY21 Results
Aviation Systems ($ million) 4Q21 and CY21 Results Revenue GAAP 845 535 3,448 2,783 • 4Q21 organic1 revenue down 5% and CY21 organic1 revenue down 2% 2,844 2,783 – 4Q21 (2)% • Contract roll-offs and delayed awards within Defense Aviation, and lower FAA volume in Mission Networks • Double-digit growt
Slide 10: 2022 full-year guidance
2022 full-year guidance Total L3Harris By Segment Revenue Segment margin Revenue Margin $17.3B - $17.7B 16.00 - 16.25% IMS $7.1B - $7.3B 13.50 - 13.75% (up 1.0 - 3.0%)1 (prior year of 16.0%) (up 2.0 - 4.0%) (prior year of 13.5%) EPS2 FCF2 SAS $6.0B - $6.1B 12.50 - 12.75% (flat - up 2.0%) (prior year
Slide 11: Non-GAAP 2022 guidance EPS bridge
Non-GAAP 2022 guidance EPS1 bridge $13.50 $(0.05) $12.95 $0.60 - Pension +4% + Tax $(0.44) $0.62 $(0.18) + Volume + e3 Performance - Inflation - Internal Investments - Mix 2021 Divestitures Supply chain Operations Share count Other 2022 guidance impact mid-point 1 Non-GAAP EPS is a NGFM; refer to NG
Slide 12: Appendix
Appendix L3Harris CALENDAR YEAR 2021 FOURTH QUARTER EARNINGS PRESENTATION 12
Slide 13: Other financial information
Other financial information ($ million except noted) CY22 4Q20 4Q21 CY21 Guide Net FAS/CAS pension adjustment1 $131 $145 $568 ~$540 Net interest expense $64 $67 $265 ~$265 Integration expenses2 $28 $48 $110 ~$35 Effective tax rate (non-GAAP) 17.0% 15.6% 16.0% ~15% Average diluted shares outstanding
Slide 14: Pension reconciliation
Pension reconciliation ($ million) 2021 Actuals 2022 Outlook FAS pension service cost $ (68) $ ~ (45) Less: CAS pension 191 ~ 145 FAS/CAS operating adjustment1 123 ~ 100 Non-service FAS pension income2 445 ~ 440 Net FAS/CAS pension adjustment2 $ 568 $ ~ 540 1 Effective with fiscal 2022, the Company'
L3Harris Technologies — Q4 2021 Earnings Presentation on 6ix