Elbit Systems Ltd · TASE:ESLT
Elbit Systems — Investor Conference 2024
37 slides from Elbit Systems's conference presentation, March 2024
Slide 1: Investor Conference 2024
Investor Conference 2024 March 2024
Slide 2: Safe Harbor
2 2024 © 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: In Memory of Our Employees
In Memory of Our Employees Avichai Amsalem Omri Roth Nitai Meisels Ohad Ashur Liav Atiya 30 years old 25 years old 30 years old 23 years old 25 years old Radio engineer SW QA Experimental Engineer Drone pilot Security
Slide 4: Financial Results
Financial Results
Slide 5: 2023 Financial Highlights
5 2024 © Elbit Systems Proprietary 2023 Financial Highlights $17.8Bn $6.0Bn $449M $114M Backlog Revenues Non-GAAP (*) Operating cashflow Operating income (*)GAAP Operating Income: $369m. For non-GAAP reconciliations reference the appendix to this presentation and Elbit Systems’ investor relations we
Slide 6: Financial Results | 2023
6 2024 © Elbit Systems Proprietary Financial Results | 2023 2022 2023 Change Sales ($M) 5,512 5,975 8.4% Non-GAAP Operating Profit* ($M) 367 449 22.3% Non-GAAP Operating margin* (%) 6.7% 7.5% 80 bps GAAP Operating Profit ($M) 368 369 0.3% GAAP Operating Profit margin (%) 6.7% 6.2% (50 bps) Non-GAAP
Slide 7: Financial Results | Q4 2023
7 2024 © Elbit Systems Proprietary Financial Results | Q4 2023 2022 2023 Change Sales ($M) 1,506 1,626 8.0% Non-GAAP Operating Profit* ($M) 104 105 1.0% Non-GAAP Operating margin* (%) 6.9% 6.4% (50 bps) GAAP Operating Profit ($M) 120 68 (43.3%) GAAP Operating Profit margin (%) 8.0% 4.2% (380 bps) No
Slide 8: 2023 Results | Revenues by Geographical Regions
8 2024 © Elbit Systems Proprietary 2023 Results | Revenues by Geographical Regions Other Other LATAM 3% LATAM 4% 2% 2% North America 180 North America 121 229 24% 120 27% APAC 1,418 APAC 1,490 21% 26% 1,405 1,264 2022 2023 Sales by Sales by geography geography 1,167 1,072 Israel 1,244 Israel 1,776 2
Slide 9: Business Segments | Annual Revenues ($M)
9 2024 © Elbit Systems Proprietary Business Segments | Annual Revenues ($M) 2,000 1,873 ESA, 1,465 1,800 1,733 Aerospace, 1,873 1,600 1,457 1,465 1,400 1,306 1,179 1,169 1,200 2023 1,046 Revenue 1,000 split 800 721 678 600 Land, 1,306 400 C4I & 200 Cyber, 721 0 ISTAR & EW, Aerospace C4I & Cyber ISTA
Slide 10: Business Segments | Annual Operating Income ($M)
10 2024 © Elbit Systems Proprietary Business Segments | Annual Operating Income ($M) 12% 11.4% 10% 8% 7.2% 7.0% 6.7% 6.2% 6.2% 6% 5.1% 4.7% 4% 2.4% 2% 0% Aerospace C4I & Cyber ISTAR & EW Land ESA (0.3%) -2% 2022 2023
Slide 11: Capital Allocation Framework
11 2024 © Elbit Systems Proprietary Capital Allocation Framework Invest in organic growth R&D - $424m in 2023 CAPEX - $187m in 2023 M&A $10m in 2023 Consistently return cash to shareholders $89 m dividends distributed to shareholders in 2023 Maintain a strong balance sheet
Slide 12: Summary
12 2024 © Elbit Systems Proprietary Summary 2023 results demonstrate that we are on track despite challenges Strong growth in revenues and order backlog Improved profitability. Cash flow impacted by strong growth and preparation for future deliveries.
Slide 13: President and CEO
Elbit Systems” AaS—t—S
Slide 14: Key Messages
14 2024 © Elbit Systems Proprietary Key Messages Successful implementation of our strategy Progress in the operational transformation and accelerated growth Global defense budget growth driving demand for our solutions Demonstrating our resilience
Slide 15: Elbit Systems' Strategic Pillars
15 2024 © Elbit Systems Proprietary Elbit Systems’ Strategic Pillars Internationally diversified Broad portfolio of presence and client base solutions ▪ Unique global footprint ▪ Aligned with customer priorities ▪ Multiple domestic subsidiaries ▪ Accelerating sensor to shooter loop Innovating to pro
Slide 16: Order Backlog & Revenues | From Growth to Transformation
16 2024 © Elbit Systems Proprietary Order Backlog & Revenues| From Growth to Transformation 18,000 17,800 16,000 14,000 15,100 13,700 12,000 10,000 11,024 10,029 9,399 8,000 7,561 5,975 6,909 5,279 5,511 6,000 6,265 6,564 5,822 4,508 4,663 3,378 3,684 4,000 2,925 2,958 3,108 3,260 2,000 0 2013 2014
Slide 17: Progressing in Operational Transformation
17 2024 © Elbit Systems Proprietary Progressing in Operational Transformation Production Sites Our People Supply Chain OneERP ▪ New factories opened in ▪ Improved recruitment and ▪ Improved availability of ▪ Completed rollout in 2023 the US, UK and Germany retention electronic components ▪ Generatin
Slide 18: Ramat Beka | New, state of the art, munitions production facility
18 2024 © Elbit Systems Proprietary Ramat Beka | New, state of the art, munitions production facility Area Be’er-Sheva 52,000 Dunam Facilities > 70,000 M2 60 Factories ~1,000 Employees Operations to begin in 2024 Ramat Beka
Slide 19: Israel
le Elbit Systems j —
Slide 20: Elbit Systems – "Swords of Iron" – Clip
Elbit Systems – “Swords of Iron” – Clip
Slide 21: Swords of Iron | Supporting the IDF Efforts
21 2024 © Elbit Systems Proprietary Swords of Iron | Supporting the IDF Efforts ■ Approximately 15% , more than 2,000 of the company's employees in Israel were recruited into reserves ■ Factories working around the clock and on weekends ■ Ramped production by recruiting hundreds of additional employ
Slide 22: Israel | Providing the Backbone for Digital Warfare
22 2024 © Elbit Systems Proprietary Israel | Providing the Backbone for Digital Warfare Enabling multi-domain warfare and accelerating the sensor to shooter loop
Slide 23: Israel | Equipping the IDF with a Range of Advanced Platforms
23 2024 © Elbit Systems Proprietary Israel | Equipping the IDF with a Range of Advanced Platforms ROEM Mortars Rocket Artillery UAVs and Drones New 155 mm Howitzer for the IDF Indirect Fire for Tactical Forces Precision Guided Munition Launchers Integrating Aerial Unmanned Support in all Echelons Cu
Slide 24: Israel | A Broad Range of Precision Munitions and Ammunition
24 2024 © Elbit Systems Proprietary Israel | A Broad Range of Precision Munitions and Ammunition Rocket Artillery Mortars Shells Artillery Munition Tank Ammunition Air Launched Munitions Leveraging the Acquisition of IMI
Slide 25: Israel | Accelerating development and deployment
25 2024 © Elbit Systems Proprietary Israel | Accelerating development and deployment SKEYE Autonomy Counter UAS Digital Army Leveraging Unique IP to Supply Advance Solutions to Battlefield
Slide 26: Business Environment
Business Environment
Slide 27: Europe | Continue to Grow Faster than European Defense Budget
27 2024 © Elbit Systems Proprietary Europe | Continue to Grow Faster than European Defense Budget European Defense Spend (US$ Bn) and Elbit European Revenues (M$) 141% 1,776 500 Growth 1,700 Elbit Systems European 1,500 450 Revenues ($M) 2018-2023 1,300 1,243 400 1,100 854 885 375 900 819 350 35% 74
Slide 28: Europe | Expanding Positions Driving Long Term Growth
28 2024 © Elbit Systems Proprietary Europe| Expanding Positions Driving Long Term Growth Germany - C3I for Arrow missile defense system Swedish Army digitization Rocket artillery for The Netherlands Systems for 230 Armored Vehicles Opened new factories in Germany and the UK Supplying UK Watchkeeper
Slide 29: USA | Defense Budgets Growing to Address the Evolving Threat Environment
29 2024 © 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 ($Bn) growing to address the Chinese challenge 900 ■ US Army budgets benefitting from 800 816 817 restocking of equipmen
Slide 30: USA | Another Year of Strategic Progress
30 2024 © Elbit Systems Proprietary USA | Another Year of Strategic Progress 500M$ ID/IQ For SBNVG for the Iron Fist selected for Bradley and future USMC infantry fighting vehicles Photo credit: US Army Charleston ground combat vehicle center of excellence New Sparton sonobuoy facility Photo credit:
Slide 31: Asia Pacific | China Concerns Driving Defense Budget Growth
31 2024 © Elbit Systems Proprietary ■ Asia Pacific | China Concerns Driving Defense Budget Growth Asia - Pacific Defense Spend (US$ Bn) 700 640 626 600 591 603 620 536 537 550 600 500 580 400 560 Networked precision UAS to multiple customers guided munitions across the region 300 540 200 520 100 500
Slide 32: Achievements
~ 23 NESS ACHI EVEM ENTS
Slide 33: Takeaways
33 2024 © Elbit Systems Proprietary Takeaways Supportive business environment Operational transformation on track Resilient business model Delivering on our potential Focused on long term value creation for all our stakeholders
Slide 34: Questions & Answers
Questions & Answers
Slide 35: Appendix | Non-GAAP Financial Data
35 2024 © Elbit Systems Proprietary Appendix | Non-GAAP Financial Data The following non-GAAP financial data, including Adjusted gross profit, Adjusted operating income, Adjusted net income, and Adjusted diluted earnings per share, is presented to enable investors to have additional information on o
Slide 36: Reconciliation of GAAP to Non-GAAP (Unaudited) Supplemental Financial Data
36 2024 © Elbit Systems Proprietary Reconciliation of GAAP to Non-GAAP (Unaudited) Supplemental Financial Data Year Ended December 31, Year Ended December 31, 2022 2023 2022 2023 GAAP gross profit 1,373.3 1,483.0 Adjustments: GAAP net income attributable to Elbit Systems’ shareholders 275.4 215.1 Am
Slide 37: 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