Slide 1: Investor Briefing March 2020
Investor Briefing March 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1943, as amended and the Israeli Securities Law, 1968) regarding Elbit Systems Ltd. and/or its su
Slide 3: Agenda
Agenda ■ Financial Results ■ Business Environment ■ Market Positions and Growth Engines ■ Innovation ■ Operational Excellence ■ Corporate Responsibility 3 2020 © Elbit Systems | Elbit Systems Proprietary
Slide 4: Financial Results
Financial Results
Slide 5: Financial Results | 2019
Financial Results | 2019 2018 2019 Change Sales ($M) 3,684 4,508 22.4% Non-GAAP Operating Profit ($M) 341 380 11.4% Non-GAAP Operating margin (%) 9.2% 8.4% (83 bps) GAAP Operating Profit ($M) 293 322 9.8% GAAP Operating Profit margin (%) 7.9% 7.1% (82 bps) Non-GAAP Earnings per share ($) 6.25 6.79 8
Slide 6: Financial Results | 4Q 2019
Financial Results | 4Q 2019 2018 2019 %Change Sales ($M) 1,078 1,322 22.6% Non-GAAP Operating Profit ($M) 113 125 11.6% Non-GAAP Operating margin (%) 10.4% 9.5% (94 bps) GAAP Operating Profit ($M) 39 64 64.8% GAAP Operating Profit margin (%) 3.6% 4.8% 123 bps Non-GAAP Earnings per share ($) 1.96 2.4
Slide 7: 2019 Results | Revenues by Geographical Regions and Areas of Operation
2019 Results | Revenues by Geographical Regions and Areas of Operation Other Others Latin EO America Airborne 3% North 3% Systems 3% 8% America 28% Asia 23% 36% Pacific Geographical 26% Areas of Regions C4I Operation Systems 19% 24% Europe Israel 27% Land Systems A diverse client base and broad prod
Slide 8: Business Environment
Business Environment j Elbit Systems" —<—<——
Slide 9: Elbit Systems | A Highly Innovative Global Defense Company
Elbit Systems | A Highly Innovative Global Defense Company ■ Internationally diversified presence and client base ■ Broad range of market leading products and technologies aligned with customer priorities ■ Significant investment in R&D to generate market leading IP ■ Integrated and supportive suppl
Slide 10: Defense budgets are cyclical
Defense budgets are cyclical ■ Defense spending is not immune to economic cycles ■ Historically, economic recessions have not reduced geopolitical tensions ■ During previous recessions governments have increased defense spending and internal security budgets as part of the fiscal measures to stimula
Slide 11: Revenues & backlog | Growth through the cycle
Revenues & backlog | Growth through the cycle 11,000 10,029 10,000 9,399 9,000 7,561 8,000 6,909 7,000 6,564 6,265 5,683 5,822 6,000 5,446 5,528 5,044 5,030 5,000 4,624 4,508 3,786 3,684 4,000 3,378 3,347 3,260 2,958 3,108 2,832 2,818 2,889 2,925 3,000 2,638 2,670 2,154 1,981 1,689 1,752 2,000 1,437
Slide 12: Broad global footprint of customers and subsidiaries
Broad global footprint of customers and subsidiaries ■ Australia ■ Austria ■ Belgium ■ Brazil ■ Canada ■ France ■ Georgia ■ Germany ■ Hungary ■ India ■ Mexico ■ Northern Macedonia ■ Romania ■ United Kingdom ■ USA We have subsidiaries in over 20 countries 12 2020 © Elbit Systems | Elbit Systems Propr
Slide 13: COVID-19 and the Global Economy
COVID-19 and the Global Economy We are monitoring the situation closely and adhering to the instructions of the governments of the countries in which we operate Elbit Systems has not experienced a material impact on its ongoing business We have not seen changes in customer behavior We have i
Slide 14: Growth Engines and Market Positions
Growth Engines and Market Positions
Slide 15: Strengthening Market Positions | Israel – Long Term Programs
Strengthening Market Positions | Israel – Long Term Programs C4ISR Electronic Warfare Battle Management Systems (BMS), Developing the next generation of supply and maintenance of networks Electronic Warfare systems and radios Armor Ammunition Iron Fist Active Protection System selected for the Eitan
Slide 16: Focus on the U.S.A
Focus on the U.S.A
Slide 17: Evolution of Success
Evolution of Success Building the Future F-35 ■ Missile Warning Systems T-7A ■ Air Launched Effects F-18 F-35 HMD ■ Guided-Munitions ■ Future Soldier ■ Augmented reality V-22 ■ Digital Night Vision JDAM ■ Tactical Networks CLRF-IC ■ Next Generation of Target F-15 Acquisition Systems F-16 $1,260M ENV
Slide 18: Avionics Solutions for new and legacy aircraft
Avionics Solutions for new and legacy aircraft F-35 F-18 F-15 C-17 V-22 AH-64 F-16 UH-60 Average shipset value: $0.5M - $1.5M 18 2020 © Elbit Systems | Elbit Systems Proprietary
Slide 19: Boeing T-7A | US Air Force's new advanced pilot training aircraft
Boeing T-7A | US Air Force’s new advanced pilot training aircraft T-7A Advanced Cockpit T-7A Avionics Systems EFD UFCD HUD Data Link LAD DTU Revolutionizing Flight Training 19 2020 © Elbit Systems | Elbit Systems Proprietary
Slide 20: Soldier Systems | Current & future targeting systems
Soldier Systems | Current & future targeting systems for the U.S. Army & U.S. Marine Corps ■ Common Laser Rangefinder – Integrated Capability (CLRF-IC) ■ Joint Effects Targeting System (JETS) ■ Next Generation Handheld Targeting Systems (NGHTS) 20 2020 © Elbit Systems | Elbit Systems Proprietary
Slide 21: Precision Guided Munitions | A leader in laser seekers
Precision Guided Munitions | A leader in development & production of laser seekers ■ Laser-guided Joint Direct Attack Munition (LJDAM) ■ Griffin multi-platform, multi-service munition ■ Laser-Guided Small Diameter Bomb (LSDB) ■ Hatchet UAS-borne precision glide munition We have delivered tens of tho
Slide 22: Night Vision Systems | Strong Legacy, Significant Potential
Night Vision Systems | Strong Legacy, Significant Potential Leading global manufacturer of night vision devices: ■ More than 2 million 3rd Generation night vision devices ■ More than 500,000 AN/PVS-14s to the U.S. Army Developing and manufacturing the next generation of night vision: ■ Squad Night V
Slide 23: Laser Designator Products
Laser Designator Products ■ Common Lightweight Designator / Rangefinder (CLDR) Essential part in the modernization of the AC-130 Gunship and AH-1Z Hawkeye fire control systems ■ Two Color Laser System (TCLS) Laser designator supplier to Raytheon for their Multi-Spectral Targeting System (MTS) 23 202
Slide 24: Electronic Warfare | Missile Warning Systems
Electronic Warfare | Missile Warning Systems Infrared Missile Warning Systems (MWS) ■ Selected by the US Air Force to equip F-16 aircraft of the U.S. Air National Guard and Air Force Reserve Command with pylon-based infrared missile warning systems 24 2020 © Elbit Systems | Elbit Systems Proprietary
Slide 25: Homeland Security (HLS) | Leading Provider of Border Security Solutions
Homeland Security (HLS) | Leading Provider of Border Security Solutions Array of Integrated Towers Surveillance Systems Unattended Ground Sensors ■ Fixed and relocatable ■ Mobile and Modular Fielded today along the Southern Border of the USA 25 2020 © Elbit Systems | Elbit Systems Proprietary
Slide 26: Indirect Fires | Sole Provider of Mortar Systems to the US Army
Indirect Fires | Sole Provider of Mortar Systems to the US Army ■ Mortar Weapon Systems ■ Expeditionary Mortar Weapon Systems ■ Mortar Weapon Control Systems 26 2020 © Elbit Systems | Elbit Systems Proprietary
Slide 27: KMC Systems Medical Diagnostics
KMC Systems Medical Diagnostics ■ Elbit’s KMC Systems, Merrimack NH is a provider of highly automated, large volume medical test and diagnostic equipment to many of the world’s leading medical instruments companies ■ We are in discussion with several key customers regarding potential increased deman
Slide 28: Strengthening Market Positions | Europe
Strengthening Market Positions | Europe United Kingdom Germany Switzerland Netherlands ■ $38M contract for artillery ■ $73M DIRCM contract for Air ■ Selection as Tactical Radio ■ $65M follow-on contract for trainers (JSFT) Force A400M supplier soldier systems ■ Iron Vision Demo on ■ Follow on contra
Slide 29: Strengthening Market Positions | Europe
Strengthening Market Positions | Europe Sweden Finland Portugal European Union ■ Digital network infrastructure ■ $50M contract to supply EW ■ Expanding the deployment of ■ Ammunition for Leopard tanks UAVs for EU Maritime Patrol for the Army including radios suite for KC-390 transport and radio lin
Slide 30: Strengthening Market Positions | Asia-Pacific
Strengthening Market Positions | Asia-Pacific Unmanned Tactical Radios/ Defense Precision Airborne Systems Tank Upgrades Solutions Munitions Systems ■ $153M contract to supply a ■ $127M contract to provide ■ $670M contract to supply ■ $30M contract for high ■ $136M DIRCM contracts for networked mult
Slide 31: Innovation, Operational Excellence, Corporate Responsibility
Innovation Operational Excellence Corporate Responsibility
Slide 32: Innovation
Innovation AI & Big Data High Powered Lasers Integrating Artificial Intelligence Israel’s center of excellence and Big Data across all Elbit products for laser technology Satellites & Space Robotics In 2019 Elbit Systems launched Unmanned Ground Vehicles, its first Nano-satellite into space Swarm Ro
Slide 33: Operational Excellence
Operational Excellence Footprint New Product Mission OneERP optimization Supply chain Introduction Excellence ■ Building and deploying one ■ Infrastructure consolidation ■ Sustaining a robust supply ■ Improving the transition from ■ Improving the process and ERP system for the entire and facility mo
Slide 34: Corporate Responsibility
Corporate Responsibility 38% 5,100 reduction in total Employees waste generated volunteered in in 2018 vs 2013 their communities 97% Elbit Systems received the of employees highest "Platinum feel their work at +" rating from Elbit Systems is Maala in 2019 meaningful and (for 2018) creates value 34 2
Slide 35: Questions & Answers
Questions & Answers Elbit Systems”