[Second Quarter 2023 Financial Results](index=1&type=section&id=Second%20Quarter%202023%20Financial%20Results) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Elbit Systems reported strong second-quarter 2023 results with revenues of **$1.5 billion** and a significant order backlog of **$16.1 billion**, with GAAP net income at **$62.4 million** and Non-GAAP net income at **$70.2 million** Key Financial Metrics | Metric | Value | | :--- | :--- | | Order Backlog | $16.1 billion | | Revenues | $1.5 billion | | GAAP Net Income | $62.4 million | | Non-GAAP Net Income | $70.2 million | | GAAP Diluted EPS | $1.40 | | Non-GAAP Diluted EPS | $1.57 | [Management Commentary](index=1&type=section&id=Management%20Commentary) The CEO highlighted double-digit revenue growth from backlog conversion and sustained demand, noting improved operating profitability from operational programs despite higher interest rates impacting financial expenses, maintaining a positive long-term outlook - Double-digit revenue growth was driven by the conversion of the order backlog, increased capacity, and sustained customer demand[4](index=4&type=chunk) - Operational improvement programs have started to increase operating profitability, aided by easing supply chain and labor market pressures[5](index=5&type=chunk) - Increased financial expenses in the first half of the year were primarily a result of rising interest rates[5](index=5&type=chunk) - The company's portfolio of technological solutions, global presence, and innovative culture are expected to support a positive long-term outlook[6](index=6&type=chunk) [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) The company reported **$1.45 billion** in Q2 2023 revenues, an **11.5%** increase, driven by Aerospace and ISTAR & EW segments, with net income impacted by higher financial expenses despite a robust **$16.1 billion** order backlog and negative operating cash flow [Revenues](index=1&type=section&id=Revenues) Total revenues for Q2 2023 increased by **11.5%** to **$1,453.9 million**, primarily driven by strong growth in the Aerospace and ISTAR & EW segments, alongside a 7% increase in Elbit Systems of America Revenue by Segment (Q2) | Segment | Q2 2023 Revenue (M) | Q2 2022 Revenue (M) | YoY Growth | | :--- | :--- | :--- | :--- | | Aerospace | $487.0 | $408.9 | 19% | | ISTAR and EW | $292.7 | $241.5 | 21% | | Elbit Systems of America | $355.3 | $330.6 | 7% | | Land | $294.1 | $284.9 | 3% | | C4I and Cyber | $168.7 | $167.3 | 1% | [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Q2 2023 saw GAAP gross profit at **$372.2 million** and operating income at **$101.6 million**, with net income significantly impacted by a sharp rise in financial expenses due to higher interest rates Profitability Metrics (Q2 2023) | Metric (Q2 2023) | GAAP | Non-GAAP | | :--- | :--- | :--- | | Gross Profit | $372.2M (25.6%) | $378.8M (26.1%) | | Operating Income | $101.6M (7.0%) | $112.2M (7.7%) | | Net Income | $62.4M (4.3%) | $70.2M (4.8%) | | Diluted EPS | $1.40 | $1.57 | - Net financial expenses increased to **$32.1 million** in Q2 2023 from **$9.3 million** in Q2 2022, primarily due to a significant increase in interest rates[12](index=12&type=chunk) - The year-over-year comparison for GAAP net income is affected by capital gains from asset sales that were included in the Q2 2022 results[14](index=14&type=chunk) [Order Backlog and Cash Flow](index=3&type=section&id=Order%20Backlog%20and%20Cash%20Flow) The order backlog reached **$16.1 billion** as of June 30, 2023, with **75%** from international customers, while operating cash flow for H1 2023 was negative **$210.7 million** due to increased working capital - The order backlog as of June 30, 2023, totaled **$16.1 billion**. **75%** of this is from international customers, and **49%** is scheduled for performance through 2024[15](index=15&type=chunk) - Cash flows used in operating activities for the first half of 2023 were **$210.7 million**, primarily affected by an increase in inventories and trade receivables[16](index=16&type=chunk) [GAAP to Non-GAAP Reconciliation](index=3&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) Elbit Systems provides non-GAAP financial data to offer a clearer view of core business performance by excluding non-recurring items and amortization of intangible assets, adjusting Q2 2023 GAAP net income of **$62.4 million** to a Non-GAAP net income of **$70.2 million** - The company uses non-GAAP measures to provide a clearer view of underlying financial performance by excluding items such as amortization of acquired intangible assets, capital gains, and other non-recurring or non-cash expenses[17](index=17&type=chunk)[18](index=18&type=chunk) GAAP to Non-GAAP Net Income Reconciliation (Q2 2023) | Reconciliation Item (Q2 2023, in millions) | Amount | | :--- | :--- | | **GAAP net income attributable to shareholders** | **$62.4** | | Amortization of purchased intangible assets | $10.6 | | Non-operating foreign exchange (gains) | ($1.4) | | Tax effect and other tax items, net | ($1.4) | | **Non-GAAP net income attributable to shareholders** | **$70.2** | [Recent Developments and Corporate Actions](index=5&type=section&id=Recent%20Developments%20and%20Corporate%20Actions) Elbit Systems secured significant contracts, including a **$180 million** order for Watchkeeper X UAS and a **$150 million** contract for PULS rocket launchers, while also announcing board changes and a quarterly dividend [Recent Events & Contract Awards](index=5&type=section&id=Recent%20Events%20%26%20Contract%20Awards) The company announced several significant contract awards, reinforcing its strong order pipeline with key wins including **$180 million** for Watchkeeper X UAS and **$150 million** for PULS rocket launchers - Received a **$180 million** purchase order from Romania for three Watchkeeper X tactical Unmanned Aerial Systems (UAS)[27](index=27&type=chunk) - Awarded a **$114 million** contract to supply two long-range patrol aircraft to an Asian-Pacific country[28](index=28&type=chunk) - Secured a **$150 million** contract to supply PULS™ rocket launchers and long-range rockets to an international customer[29](index=29&type=chunk) - Awarded a **$60 million** contract to supply thousands of 155mm artillery shells to the Israel Defense Forces[30](index=30&type=chunk) [Dividend Declaration](index=5&type=section&id=Dividend%20Declaration) The Board of Directors declared a dividend of **$0.50 per share**, payable on October 23, 2023, with a record date of October 10, 2023 Dividend Information | Dividend Information | Details | | :--- | :--- | | Dividend per Share | $0.50 | | Record Date | October 10, 2023 | | Payment Date | October 23, 2023 | [Financial Statements](index=8&type=section&id=Financial%20Statements) This section presents the detailed unaudited consolidated financial statements as of June 30, 2023, including Balance Sheets, Statements of Income, and Cash Flow, alongside revenue breakdowns by geography and business segment [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2023, total assets increased to **$9.56 billion** driven by inventories and receivables, while total liabilities rose to **$6.77 billion** due to increased short-term bank credit, with equity remaining stable Consolidated Balance Sheet Summary | Balance Sheet Item (in billions) | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Current Assets | $5.42 | $5.03 | | **Total Assets** | **$9.56** | **$9.22** | | Total Current Liabilities | $4.91 | $4.28 | | **Total Liabilities** | **$6.77** | **$6.46** | | **Total Equity** | **$2.79** | **$2.76** | [Consolidated Statements of Income](index=9&type=section&id=Consolidated%20Statements%20of%20Income) For Q2 2023, revenues reached **$1.45 billion** with net income of **$62.4 million**, a decrease from Q2 2022 primarily due to higher financial expenses and the absence of prior-year operating income Consolidated Income Statement (Q2) | Income Statement (Q2, in millions) | 2023 | 2022 | | :--- | :--- | :--- | | Revenues | $1,453.9 | $1,303.4 | | Gross Profit | $372.2 | $339.7 | | Operating Income | $101.6 | $115.1 | | Net Income | $62.4 | $80.8 | | Diluted EPS | $1.40 | $1.82 | [Consolidated Statements of Cash Flow](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flow) For H1 2023, net cash used in operating activities increased to **$210.7 million**, with net cash provided by financing activities at **$244.9 million**, resulting in a net decrease in cash of **$99.4 million** Consolidated Cash Flow Statement (H1) | Cash Flow (H1, in millions) | 2023 | 2022 | | :--- | :--- | | Net Cash from Operating Activities | ($210.7) | ($133.5) | | Net Cash from Investing Activities | ($133.6) | ($7.5) | | Net Cash from Financing Activities | $244.9 | $129.3 | | **Net Decrease in Cash** | **($99.4)** | **($11.7)** | [Revenue Distribution](index=11&type=section&id=Revenue%20Distribution) In Q2 2023, Europe became the largest market at **31.9%** of total revenues, while Aerospace was the top segment contributor to external revenues at **$421.9 million** Revenue by Geography (Q2 2023) | Revenue by Geography (Q2 2023) | % of Total | | :--- | :--- | | Europe | 31.9% | | North America | 23.2% | | Asia-Pacific | 21.7% | | Israel | 16.8% | | Other | 6.4% | Revenue by Segment (Q2 2023, External) | Revenue by Segment (Q2 2023, External) | Revenue (M) | | :--- | :--- | | Aerospace | $421.9 | | ESA | $355.3 | | Land | $276.2 | | ISTAR and EW | $243.4 | | C4I and Cyber | $157.1 |

In this release, the Company is providing US-GAAP results as well as additional non-GAAP financial data, which are intended to provide investors a more comprehensive view of the Company's business results and trends. For a description of the Company's non-GAAP definitions see page 3 below, "Non-GAAP financial data". Unless otherwise stated, all financial data presented is US-GAAP financial data. Management Comment: Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented: "The financial resul ...

Elbit Systems 2022 Annual Report Conference Call Summary Company Overview - **Company**: Elbit Systems (NASDAQ: ESLT) - **Date of Call**: May 1, 2023 - **Participants**: - Rami Myerson - Investor Relations - Butzi Machlis - President, CEO - Kobi Kagan - CFO - Yossi Gaspar - Senior EVP, Business Management Key Points Industry and Company Context - Elbit Systems operates in the defense and aerospace industry, focusing on advanced technology solutions for military and commercial applications [6][7]. Financial Performance - **Consolidated Revenues**: Increased by 4% to $5.5 billion in 2022 from $5.3 billion in 2021 [11]. - **GAAP Operating Income**: Decreased to $368 million in 2022 from $419 million in 2021 [11]. - **Non-GAAP Operating Income**: $357 million (6.5% of revenues) in 2022 compared to $451 million (8.5% of revenues) in 2021 [11]. - **Stock Price Linked Compensation Expenses**: Approximately $62 million impacted both GAAP and non-GAAP operating income [11]. Segment Performance - **Aerospace**: - Revenues increased by 9% to $1.73 billion in 2022 [12]. - Operating income decreased to $106.8 million (6.2% of revenues) from $129.2 million (8.2% of revenues) in 2021 [12]. - **C4I and Cyber**: - Revenues increased by 8% to $678 million [13]. - Operating income increased to $49 million (7.2% of revenues) from $44.4 million (7.1% of revenues) in 2021 [13]. - **ISTAR and EW**: - Revenues increased by 2% to $1.05 billion [14]. - Operating income decreased to $49.1 million (4.7% of revenues) from $66 million (6.4% of revenues) in 2021 [14]. - **Land**: - Revenues increased by 5% to $1.17 billion [14]. - Operating income decreased to $28.6 million (2.4% of revenues) from $35.6 million (3.2% of revenues) in 2021 [14]. - **Elbit Systems of America (ESA)**: - Revenues decreased by 2% to $1.46 billion [14]. - Operating income decreased to $75 million (5.1% of revenues) from $124.3 million (8.3% of revenues) in 2021 [14]. Strategic Initiatives - **Transformation Goals**: Aiming for annual revenues of $6 billion to $7 billion with improved profitability and cash generation [6][18]. - **Segment Reporting Structure**: New segment reporting structure adopted to enhance transparency and align with operational management [5][7]. - **Investment in Facilities**: Hundreds of millions of dollars invested in new facilities across Israel, the U.S., Germany, and the U.K. to support transformation and backlog conversion [27][31]. Market Outlook - **Supply Chain and Cost Pressures**: Supply chain disruptions and increased electronic component prices affected all segments in 2022, but expected to be less relevant in 2023 [31]. - **Margin Improvement**: Management targets a long-term operating margin of around 10% across all segments [26][27]. Miscellaneous - **Incentive Compensation**: Defined goals for executives include cash generation, profitability, and revenue growth, measured quarterly [21]. - **No IPO Plans for ESA**: Elbit Systems of America will remain integrated within the company, with no plans for an IPO [39]. Conclusion - Elbit Systems is focused on enhancing operational efficiency, improving profitability, and capitalizing on growth opportunities in the defense and aerospace sectors while navigating challenges related to supply chain and cost pressures [6][31].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F □ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended December 31, 2022 Commission File No. 0-28998 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES E ...

Exhibit 1 Elbit Systems Announces the Filing of its Annual Report on Form 20-F for Fiscal Year 2022 Haifa, Israel, May 1, 2023 – Elbit Systems Ltd. (NASDAQ: ESLT and TASE: ESLT) ("Elbit Systems" or the "Company") announced that on May 1, 2023, the Company filed its annual report on Form 20-F for the fiscal year ended December 31, 2022 (the "2022 Annual Report") with the U.S. Securities and Exchange Commission, the Israel Securities Authority and the Tel Aviv Stock Exchange. The 2022 Annual Report can be vie ...

Financial Data and Key Metrics Changes - The company reported fourth quarter revenues of $1.506 billion, an increase from $1.494 billion in the same quarter of 2021 [32] - For the full year 2022, revenues were $5.5 billion compared to $5.3 billion in 2021 [32] - The GAAP gross margin for the fourth quarter was 25.3%, up from 25.1% in the fourth quarter of 2021, while the GAAP gross margin for 2022 was 24.9%, down from 25.7% in 2021 [35] - Non-GAAP operating income for 2022 was $357 million, or 6.5% of revenues, compared to $451 million, or 8.5% of revenues in the previous year [36] - The company ended 2022 with a record order backlog of $15.1 billion, an 11% increase from the end of 2021 [30] Business Line Data and Key Metrics Changes - C4ISR accounted for 29% of revenues, increasing year-over-year due to UAS and anti-submarine warfare sales [18] - Airborne systems represented 37% of revenues but declined year-over-year, offset by growth in training and simulation sales [18] - Land systems accounted for 22% of total revenues, with a decline attributed to the sale of Ashot Ashkelon [33] - Electro-optics increased to 10% of revenues due to higher sales of night vision systems [33] Market Data and Key Metrics Changes - North America contributed 27% of revenues, Europe 23%, Asia-Pacific 26%, and Israel 19% [34] - European revenues increased mainly due to growth in UAS, munitions, and training and simulation sales [34] - Asia-Pacific revenue declined due to lower precision guided munitions and C4ISR sales [13] Company Strategy and Development Direction - The company is focused on being a leader in various markets, investing in R&D, particularly in high power lasers, guided munitions, and autonomy [4][5] - Significant investments are being made in expanding manufacturing capabilities and upgrading production facilities [43][48] - The company is transitioning to a single ERP system to improve operational efficiency, with an expected total investment of approximately $200 million [44] Management's Comments on Operating Environment and Future Outlook - Management noted that global supply chain pressures are expected to ease gradually in 2023, with significant improvements anticipated in the second half of the year [16] - The company is optimistic about growth in demand for unmanned systems and land systems, particularly in Europe [66] - Political developments in Israel have not yet impacted the business, but sustained instability could increase economic uncertainty [57] Other Important Information - The company declared a dividend of $0.50 per share [46] - The construction of a new ammunition production site in Ramat Beka is on schedule to be operational by 2024 [43] Q&A Session Summary Question: How much of the 11% backlog growth can be attributed to Europe? - A significant part of the backlog growth came from Europe, but Asia-Pacific and the U.S. also contributed positively [65] Question: What drove the weakness in unmanned systems in the quarter? - The company sees growing demand for unmanned systems in Europe and is optimistic about future growth in land systems [66] Question: Is a growth range of 4% to 6% reasonable for 2023? - The company does not provide guidance but expects to realize some backlog growth in revenues during 2023 [72] Question: Can the company cover inflation from base labor rates in pricing for 2023? - The company expects an improvement in labor costs in dollar terms due to currency exchange rate changes [75] Question: What are the opportunities in Japan following the recent strategic MOU? - The company sees significant opportunities in Japan's defense market, particularly in training solutions and air defense [81] Question: Updates on ongoing investment programs? - The new facility in Ramat Beka will be operational by June 2024, and the South Carolina facility will enter production in 2023 [82]

Elbit Systems Limited (NASDAQ:ESLT) Q3 2022 Earnings Conference Call November 29, 2022 9:00 AM ET Company Participants Butzi Machlis - President, Chief Executive Officer Kobi Kagan - Chief Financial Officer Yossi Gaspar - Senior Executive Vice President, Business Management Rami Myerson - Investor Relations Conference Call Participants Pete Skibitski - Alembic Global Ellen Page - Jefferies Ella Fried - Bank Leumi Ilya Fainer - Leader Capital Markets Operator Ladies and gentlemen, thank you for standing by. ...

Earnings Release ELBIT SYSTEMS REPORTS THIRD QUARTER 2022 RESULTS Backlog of orders at $14.7 billion; Revenues of $1.3 billion; Non-GAAP net income of $63 million; GAAP net income of $56 million; Non-GAAP net EPS of $1.40; GAAP net EPS of $1.26 Haifa, Israel, November 29, 2022 – Elbit Systems Ltd. ("Elbit Systems" or the "Company") (NASDAQ and TASE: ESLT), the international high technology company, reported today its consolidated results for the quarter ended September 30, 2022. In this release, the Company ...

Call Start: 09:00 January 1, 0000 9:51 AM ET Elbit Systems Ltd. (NASDAQ:ESLT) Q2 2022 Earnings Conference Call August 16, 2022, 09:00 ET Company Participants Rami Myerson - Director, Investor Relations Kobi Kagan - CFO Butzi Machlis - President & CEO Yossi Gaspar - Senior EVP Conference Call Participants Ellen Page - Jefferies Pete Skibitski - Alembic Global Ella Fried - Bank Leumi Operator Welcome to Elbit Systems Second Quarter 2022 Results Conference Call. [Operator Instructions]. As a reminder, this con ...

Earnings Release ELBIT SYSTEMS REPORTS SECOND QUARTER 2022 RESULTS Backlog of orders at $14.1 billion; Revenues of $1.3 billion; Non-GAAP net income of $77 million; GAAP net income of $81 million; Non-GAAP net EPS of $1.73; GAAP net EPS of $1.82 Haifa, Israel, August 16, 2022 – Elbit Systems Ltd. ("Elbit Systems" or the "Company") (NASDAQ and TASE: ESLT), the international high technology company, reported today its consolidated results for the quarter ended June 30, 2022. In this release, the Company is pr ...