Elbit Systems Ltd (ESLT) 2022 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the conference call to discuss Elbit Systems 2022 Annual Report. (Operator Instructions) As a reminder, this conference is being recorded.

女士們，先生們，謝謝你們的支持。歡迎參加電話會議，討論 Elbit Systems 2022 年度報告。 （操作員說明）提醒一下，正在錄製此會議。

I would now like to hand over the call to Rami Myerson, Elbit Systems Investor Relations Director. Rami, please go ahead.

我現在想把電話轉給 Elbit Systems 投資者關係總監 Rami Myerson。拉米，請繼續。

Thank you, Joni. Good day, everyone, and welcome to the call today to discuss our 2022 annual report that includes disclosure on the segmental reporting structure.

謝謝你，瓊妮。大家好，歡迎參加今天的電話會議，討論我們的 2022 年年度報告，其中包括對分部報告結構的披露。

On the call with me today are Butzi Machlis, President and CEO; Kobi Kagan, our CFO; and Yossi Gaspar, Senior EVP, Business Management. Before we begin, I would like to point out that the safe harbor statement in the company's annual report on Form 20-F filed on 1 May 2023, also refers to the contents of this conference call. As we do on our regular quarterly conference calls, we will provide you with both our regular GAAP financial data as well as certain supplemental non-GAAP information. We believe that this non-GAAP information provides additional detail to help understand the performance of the ongoing business. You can find all the detailed GAAP financial data as well as the non-GAAP information and the reconciliation in the annual report.

今天與我通電話的是總裁兼首席執行官 Butzi Machlis；我們的首席財務官 Kobi Kagan；和業務管理高級執行副總裁 Yossi Gaspar。在我們開始之前，我想指出，公司於 2023 年 5 月 1 日提交的 20-F 表年度報告中的安全港聲明也提到了本次電話會議的內容。正如我們在定期的季度電話會議上所做的那樣，我們將為您提供我們的常規 GAAP 財務數據以及某些補充性非 GAAP 信息。我們相信，這一非 GAAP 信息提供了額外的細節，有助於了解正在進行的業務的績效。您可以在年度報告中找到所有詳細的 GAAP 財務數據以及非 GAAP 信息和對賬。

On this call, we will only discuss our financial results as of 31 December 2022. We plan to report Q1 2023 results to end of May. We reported our earnings for 2022 on 28 March 2023 in our 2022 annual results press release. There are no changes to the financial information we disclosed in our 2022 annual. However, we would like to highlight our segment financial information included in the annual report, which we will report going forward. Butzi will begin with the presentation of Elbit Systems 5 segments, followed by Kobi, who will provide information on the financial results of the segment. We will then turn the call over to a question-and-answer session.

在此次電話會議上，我們將僅討論截至 2022 年 12 月 31 日的財務業績。我們計劃在 5 月底之前報告 2023 年第一季度的業績。我們於 2023 年 3 月 28 日在 2022 年年度業績新聞稿中報告了 2022 年的收益。我們在 2022 年年度報告中披露的財務信息沒有變化。但是，我們想強調我們將在未來報告的年度報告中包含的分部財務信息。 Butzi 將首先介紹 Elbit Systems 5 部門，然後是 Kobi，他將提供有關該部門財務結果的信息。然後，我們會將電話轉入問答環節。

With that, I would like now to turn the call over to Butzi. Butzi, please?

有了這個，我現在想把電話轉給 Butzi。 Butzi，請問？

Thank you, Rami. The annual report that we filed today includes new information on the segmental reporting structure that Elbit has adopted and plan to disclose going forward. I would like to provide some background on our decision to update our disclosures.

謝謝你，拉米。我們今天提交的年度報告包含有關 Elbit 已採用併計劃在未來披露的部門報告結構的新信息。我想就我們更新披露的決定提供一些背景信息。

At our investor conference on 28th March, we presented the transformation that Elbit is implementing from a company with revenues of around $3.5 billion a few years ago to a company with infrastructure in place to support annual revenues of $6 billion to $7 billion with improved profitability and cash innovation. This follows the strong growth in our backlog to a record level of more than $15 billion, approximately 2.8x our 2022 revenues. As part of our regular processes, and the operational transformation that also includes changes to our internal reporting as well as correspondence with our regulator, we decided to adopt the way we disclose our operations to the market. This is also an opportunity to provide additional transparency to investors and analysts.

在 3 月 28 日的投資者會議上，我們介紹了 Elbit 正在實施的轉型，從一家幾年前收入約為 35 億美元的公司轉變為一家基礎設施到位的公司，以支持 60 億至 70 億美元的年收入，並提高盈利能力和現金創新。在此之前，我們的積壓訂單強勁增長至超過 150 億美元的創紀錄水平，約為我們 2022 年收入的 2.8 倍。作為我們常規流程的一部分，以及還包括更改我們內部報告以及與監管機構通信的運營轉型，我們決定採用向市場披露運營情況的方式。這也是向投資者和分析師提供額外透明度的機會。

Elbit Systems [import] segment information in five segments, beginning with the year ended December 31, 2022. The 2022 financial information we reported from each segment is compared retrospectively to the financial performance of each segment in 2021 and 2020. The segments are organized by a combination of the nature of products and services offered together with [Aerospace] based segment [Elbit System of America] or ESA reflecting a way management manages the company. The U.S. is the largest defense market, and we believe this structure is suitable to maximize the significant potential. The five reportable segment of aerospace, which provides products and systems for urban platforms, unmanned air solutions, precision guidance munition or PGM sensors, (inaudible), training and simulator systems as well as commercial aviation system.

從截至 2022 年 12 月 31 日的年度開始，Elbit Systems [導入] 五個部門的部門信息。我們將每個部門報告的 2022 年財務信息與 2021 年和 2020 年每個部門的財務業績進行追溯比較。這些部門由產品和服務的性質與基於 [航空航天] 的部門 [美國埃爾比特系統] 或 ESA 一起提供的組合，反映了管理層管理公司的方式。美國是最大的國防市場，我們相信這種結構適合最大限度地發揮巨大潛力。航空航天的五個可報告部分，為城市平台、無人機解決方案、精確制導彈藥或 PGM 傳感器、（聽不清）、訓練和模擬器系統以及商業航空系統提供產品和系統。

C4I and Cyber provide C4I systems, data links and radio communication systems and equipment, cyber intelligence, autonomous and homeland security solutions. ISTAR and EW provide a wide range of electro-optics and laser systems as well as a range of electronic warfare and seeking systems. Land provides land-based systems for armed, armored and other military vehicles, artillery and motor systems, ammunition for land, air and three applications, including PGM, armed vehicle and other platforms mobility and protection systems. Elbit Systems of America, or ESA, provides products and system solutions, principally to the U.S. military, foreign ministry service, homeland security, medical instrumentation and commercial aviation customers.

C4I 和 Cyber 提供 C4I 系統、數據鏈路和無線電通信系統和設備、網絡情報、自主和國土安全解決方案。 ISTAR 和 EW 提供範圍廣泛的光電和激光系統以及一系列電子戰和搜索系統。 Land 提供用於武裝、裝甲和其他軍用車輛的陸基系統、火砲和機動系統、用於陸地、空中和三個應用的彈藥，包括 PGM、武裝車輛和其他平台的機動和保護系統。 Elbit Systems of America，或 ESA，主要為美國軍方、外交部服務、國土安全、醫療儀器和商業航空客戶提供產品和系統解決方案。

Management encourages the segment to cooperate on a range of common projects performed by the company. It is common for the segment to provide the products to the same customers, either from joint projects or by marketing and offering combined and integrated solutions containing variety of capabilities, products and technologies of the company's portfolio from various businesses or subsidiaries all tailored to satisfy the customers or project-specific requirements. Management also remains focused on the consolidated results as an important measure of performance, particularly given the high level of cooperation among the segments.

管理層鼓勵該部門就公司執行的一系列共同項目進行合作。該部門通常通過聯合項目或通過營銷和提供組合和集成解決方案向相同客戶提供產品，這些解決方案包含來自不同業務或子公司的公司投資組合的各種能力、產品和技術，所有這些都是為滿足客戶或項目特定要求。管理層還繼續關注綜合業績，將其作為衡量業績的重要指標，尤其是考慮到各部門之間的高度合作。

I will now hand over the call to Kobi to discuss the financial results of each segment for 2022. Kobi, please?

我現在將電話轉給 Kobi，討論 2022 年每個部門的財務業績。Kobi，好嗎？

Thank you, Butzi. Hello, everyone, and thank you for joining us today. I would like to reiterate Ramin's comments that there are no changes to the consolidated financial results we reported on the 28th March in the annual report filed today.

謝謝你，布茨。大家好，感謝您今天加入我們。我想重申 Ramin 的評論，即我們在今天提交的年度報告中於 3 月 28 日報告的綜合財務業績沒有變化。

I will start my review with some of the highlights of our consolidated 2022 financial results and will then elaborate on the financial information of each segment. Our consolidated revenues increased by 4% to $5.5 billion in 2022 from $5.3 billion in 2021. GAAP Operating income was $368 million versus $419 million in 2021. Non-GAAP operating income in 2022 was $357 million or 6.5% of revenues compared was $451 million or 8.5% of revenues in 2021.

我將從我們 2022 年綜合財務業績的一些亮點開始我的回顧，然後將詳細說明每個部門的財務信息。我們的綜合收入從 2021 年的 53 億美元增長 4% 到 2022 年的 55 億美元。GAAP 營業收入為 3.68 億美元，而 2021 年為 4.19 億美元。2022 年非 GAAP 營業收入為 3.57 億美元，佔收入的 6.5%，相比之下為 4.51 億美元或2021 年收入的 8.5%。

As a reminder, GAAP and non-GAAP operating income in 2022 included expenses of approximately $62 million related to stock price linked compensation plans. I will now review the financial results of each segment as we note that our segmented disclosure of operational income is provided on a GAAP basis.

提醒一下，2022 年的 GAAP 和非 GAAP 營業收入包括與股價掛鉤的薪酬計劃相關的大約 6200 萬美元的費用。我現在將審查每個部門的財務結果，因為我們注意到我們的部門營業收入披露是根據公認會計原則提供的。

Aerospace revenue increased by 9% to $1.73 billion in 2022 from $1.58 billion in 2021, mainly due to training and simulation and UAS sales. Aerospace operating income in 2022 was $106.8 million and 6.2% of Aerospace segment revenues compared to $129.2 million and 8.2% of segment revenues in 2021. The $22.5 million decrease in operating income was mainly due to increased employee compensation expenses and negative program mix.

航空航天收入從 2021 年的 15.8 億美元增長 9% 至 2022 年的 17.3 億美元，這主要是由於培訓和模擬以及無人機銷售。 2022 年航空航天營業收入為 1.068 億美元，佔航空航天部門收入的 6.2%，而 2021 年為 1.292 億美元，佔航空航天部門收入的 8.2%。營業收入減少 2250 萬美元，主要原因是員工薪酬支出增加和負項目組合。

C4I and Cyber revenues increased by 8% to $678 million in 2022 from $625 million in 2021, mainly due to growth in radio-enabled command and control system sales. C4I and Cyber operating income in 2022 was $49 million and 7.2% of C4I and Cyber segment revenues compared to $44.4 million and 7.1% of segment revenues in 2021. The $4.6 million increase in operating income was mainly due to the increase in revenues partially offset by increased employee compensation expenses. ISTAR and EW revenues increased by 2% to $1.05 billion in 2022 from $1.03 billion -- [million] 2021, mainly due to armored vehicles, night vision and target acquisition system sales.

C4I 和網絡收入從 2021 年的 6.25 億美元增長 8% 至 2022 年的 6.78 億美元，這主要是由於無線電指揮和控制系統銷售額的增長。 2022 年 C4I 和網絡營業收入為 4900 萬美元，佔 C4I 和網絡部門收入的 7.2%，而 2021 年為 4440 萬美元，佔部門收入的 7.1%。營業收入增加 460 萬美元的主要原因是收入增加部分被員工薪酬支出增加。 ISTAR 和 EW 的收入從 2021 年的 10.3 億美元增長到 2022 年的 10.5 億美元——[百萬]，這主要是由於裝甲車、夜視儀和目標獲取系統的銷售。

ISTAR and EW operating income in 2022 was $49.1 million and 4.7% of ISTAR and EW segment revenues compared to $66 million and 6.4% of segment revenues in 2021. The $16.9 million decrease in operating income was mainly due to increased employee compensation expenses and negative program mix. Land revenues increased 5% to $1.17 billion in 2022 from $1.12 billion in 2021, mainly due to airborne precision munition sales.

2022 年 ISTAR 和 EW 營業收入為 4910 萬美元，佔 ISTAR 和 EW 部門收入的 4.7%，而 2021 年為 6600 萬美元，佔部門收入的 6.4%。營業收入減少 1690 萬美元，主要是由於員工薪酬支出增加和負面計劃混合。土地收入從 2021 年的 11.2 億美元增長 5% 至 2022 年的 11.7 億美元，這主要是由於機載精確彈藥的銷售。

Land operating income in 2022 was $28.6 million and 2.4% of Land segment revenues compared to $35.6 million and 3.2% of segment revenues in '21, the $7 million decrease in operating income was mainly due to increased employee compensation expenses. ESA revenues decreased by 2% to $1.46 billion in '22 from $1.49 billion in 2021, mainly due to lower medical instrumentation and military avionics sales, partially offset by growth of night vision sales and one additional quarter of Sparton sales compared to 2021. ESA operating income in 2022 was $75 million and 5.1% of ESA segment revenues compared to $124.3 million and 8.3% of segment revenues in 2021. The $49.3 million decrease in operating income was mainly due to the decrease in COVID-19, medical instrumentation sales that peaked in 2021, supply chain disruptions and negative program mix. Other operating income was $68.9 million in 2022 compared to $14.7 million in 2021 and included capital gains related to the sales of building and investments by subsidiaries in Israel and the U.K. as well [finite] evacuation rent received by subsidiary in Israel.

2022 年土地營業收入為 2860 萬美元，佔土地部門收入的 2.4%，而 21 年的土地營業收入為 3560 萬美元，佔土地部門收入的 3.2%，營業收入減少 700 萬美元主要是由於員工薪酬支出增加。 ESA 收入從 2021 年的 14.9 億美元下降 2% 至 22 年的 14.6 億美元，這主要是由於醫療儀器和軍用航空電子設備銷售額下降，部分被夜視儀銷售額增長和與 2021 年相比 Sparton 銷售額增加四分之一所抵消。ESA 運營2022 年的收入為 7500 萬美元，佔 ESA 分部收入的 5.1%，而 2021 年的收入為 1.243 億美元，佔分部收入的 8.3%。營業收入減少 4930 萬美元，主要原因是 COVID-19 的減少，醫療器械銷售在 2021 年達到頂峰2021 年，供應鏈中斷和負面項目組合。其他營業收入在 2022 年為 6890 萬美元，而 2021 年為 1470 萬美元，其中包括與以色列和英國子公司出售建築物和投資相關的資本收益，以及以色列子公司收到的[有限]搬遷租金。

Going forward, we plan to continue to report revenues and operating income of each segment in our annual report. In our press release for the first, second and third quarter, we will provide revenues by segment, which reflect the way we manage our business. Revenues by segment in our press releases for the first, second and third quarter will replace revenues by areas of operations that were previously provided.

展望未來，我們計劃繼續在年度報告中報告每個部門的收入和營業收入。在我們第一、第二和第三季度的新聞稿中，我們將按部門提供收入，這反映了我們管理業務的方式。我們在第一、第二和第三季度的新聞稿中按部門劃分的收入將取代之前提供的按運營領域劃分的收入。

The revenue split by geographical revenues and areas of operations were also disclosed in our annual report. The areas of operations are a capability or a platform-based classification that cross over the different segments. An example of this our EW systems provided to the U.S. and customers through our ESA segment for installation on the U.S. Air National Guard F-16 aircraft. These are included in the airborne systems area of operations, and they are reported as intersegment sales by the ISTAR and EW segment and a third-party sales by the ASA segment.

我們的年度報告中還披露了按地域收入和運營領域劃分的收入分配。運營領域是跨越不同部分的能力或基於平台的分類。例如，我們的電子戰系統通過我們的 ESA 部分提供給美國和客戶，用於安裝在美國空軍國民警衛隊 F-16 飛機上。這些包括在機載系統運營領域，ISTAR 和 EW 部門報告為部門間銷售，ASA 部門報告為第三方銷售。

And with that, we will be happy to take your questions. Operator?

因此，我們很樂意回答您的問題。操作員？

(Operator Instructions) The first question is from Pete Skibitski of Alembic Global.

（操作員說明）第一個問題來自 Alembic Global 的 Pete Skibitski。

Guys, do you expect any cost savings or any revenue synergies from this new alignment? Butzi, maybe you could give us more color on how you think things could change as a result of this.

伙計們，您是否期望這種新的結盟可以節省任何成本或產生任何收入協同效應？ Butzi，也許你可以給我們更多關於你認為事情會因此發生什麼變化的顏色。

As you know, Pete, we organized the company in a different structure recently. And just we combined the UAV division with the Airborne division, and we combined EW and the electrooptic activities together under another division. And it's part of the transformation we are performing in the company in order to gain more synergies to reduce overheads and to be more effective and proactive to the market.

如你所知，皮特，我們最近以不同的結構組織了公司。只是我們將無人機部門與機載部門合併，我們將電子戰和電光活動合併到另一個部門下。這是我們在公司中進行的轉型的一部分，目的是獲得更多的協同效應，以減少管理費用，並更有效、更積極地進入市場。

And as I said, this is part of the transformation process. The company is activating right now in order to reach the -- the revenue level of between $6 billion to $7 billion in the coming years and to improve profitability and cash generation.

正如我所說，這是轉型過程的一部分。公司現在正在積極行動，以在未來幾年達到 60 億至 70 億美元的收入水平，並提高盈利能力和現金產生能力。

That's great. Very helpful. And then you may have touched on this at the beginning. But in terms of the segment heads and their annual incentive compensation, how are you guys incenting them? Is it sales growth, margin growth? Anything else? I wasn't sure about that.

那太棒了。很有幫助。然後你可能在一開始就提到了這一點。但是從部門負責人和他們的年度激勵薪酬來看，你們是如何激勵他們的？是銷售額增長、利潤增長嗎？還要別的嗎？我不確定。

Pete, this is Yossi. Regarding the incentive program, we have for each individual starting from the highest level, executive level and down to our program managers and below defined goals that vary from a function to function that includes for example, cash generation that include profitability that includes revenues, new business, quality criteria and so on. Every year, we define major highlights that are important for the company. And accordingly, we assign for each function, the goals and we measure them, of course, quarterly, and we compensate them by year-end usually with an advance by midyear.

皮特，這是約西。關於激勵計劃，我們為每個人制定了從最高級別、執行級別到我們的項目經理以及以下定義的目標，這些目標因職能而異，包括例如，包括收入在內的盈利能力、新的業務、質量標準等。每年，我們都會定義對公司重要的主要亮點。因此，我們為每個職能分配目標，並衡量它們，當然，每季度進行一次，我們通常在年底前通過年中預付款來補償它們。

Okay. Okay. Very helpful. And just last one for me. A question about the U.S. segment. I think you guys mentioned it was a 5.1% operating margin in 2022 which 5.1%, I would say, is below U.S. peers. And I know you guys have built ESA up over decades, kind of one piece at a time, small pieces initially to get a foothold. But so my question is, do you guys expect to consider maybe some portfolio reshaping, maybe some portfolio pruning in the U.S.? Because I imagine there are some big margin differences among the businesses in ESA for you. I imagine there's some lower margin businesses and some much higher margin businesses, and it strikes me that maybe there's an opportunity there longer term?

好的。好的。很有幫助。最後一個給我。關於美國段的問題。我想你們提到 2022 年的營業利潤率為 5.1%，我想說，5.1% 低於美國同行。而且我知道你們已經建立了 ESA 數十年，一次一小塊，最初是小塊以獲得立足點。但我的問題是，你們是否期望考慮在美國進行一些投資組合重塑，或者一些投資組合修剪？因為我想 ESA 中的企業之間存在一些很大的利潤差異。我想有一些利潤率較低的業務和一些利潤率高得多的業務，這讓我感到震驚，從長遠來看，也許那裡有機會？

Pete, we see all our activities in the U.S. and core activities. We always adapt here and there in some of the activities. But in general, we -- all the activities we have in the U.S. the company in the U.S. is very important. That's the largest market for Elbit today, and we see it's a strategic market for us. It's true that in 2022, (inaudible) or the profit was impacted by stock price linked compensation expenses as well as lower medical infra instrumentation sales and by supply chain disruptions and the increase of electronic components. I also want to remind all of us that we went live with the new ERP system in the U.S., which was not an easy task as well. But all of it -- and of course, project mix as usual. So all of it is -- most of it is behind us, and I expect our numbers in the U.S. to improve.

皮特，我們看到了我們在美國的所有活動和核心活動。在某些活動中，我們總是在這里和那裡進行調整。但總的來說，我們——我們在美國的所有活動，在美國的公司都非常重要。這是當今 Elbit 最大的市場，我們認為這是我們的戰略市場。的確，在 2022 年，（聽不清）或利潤受到與股價掛鉤的補償費用以及醫療基礎設施銷售下降以及供應鏈中斷和電子元件增加的影響。我還想提醒大家，我們在美國上線了新的 ERP 系統，這也不是一件容易的事。但所有這一切——當然，還有像往常一樣的項目組合。所以所有這一切——大部分都已經過去了，我希望我們在美國的人數會有所改善。

The next question is from Ellen Page of Jefferies.

下一個問題來自 Jefferies 的 Ellen Page。

Just following Pete's question on margins. If we look across the segment, you're in kind of the mid- to high single-digit range across segments. Where do you see the most opportunity for margin expansion? You used to talk about a 10% total company target long term. Just as we think about margin improvement across the businesses to get there?

就在皮特關於邊距的問題之後。如果我們縱觀整個細分市場，您會發現各個細分市場處於中高個位數範圍內。您認為哪裡最有機會擴大利潤率？你曾經談論過 10% 的公司長期目標。正如我們考慮提高整個企業的利潤率以實現目標一樣？

I would expect all segments to grow to the neighborhood of 10%. That's a strategic -- or even above that, that's a strategic goal we have placed to the management and the things that are there to go to this direction. And the beauty of that is the wide portfolio, the wide portfolio we have on one hand and the vertical spread on the other hand. And the combination of these two creates stability. So altogether, I do -- all together, I think the company will reach the 10% quite soon. And as we've mentioned in the conference, which was held a month ago, 2022 was a year of transformation. We are investing hundreds of million dollars in new facilities in Israel as well as in the U.S., in Germany, in the U.K. in order to convert the backlog to revenues and to profits we are going to conclude implementation of new [Elbit system] mid this year. And after that, we will all operate on 1 ERP, based on one standard system, which will help us also to create -- to be more effective and more efficient. And we reorganized the company recently in order to be to be more relevant to the market and more effective as well -- but this is true for all the segments.

我預計所有細分市場都將增長到 10% 左右。這是一個戰略 - 甚至高於此，這是我們為管理層以及朝著這個方向發展的事情設定的戰略目標。其美妙之處在於廣泛的投資組合，一方面是我們擁有的廣泛投資組合，另一方面是垂直傳播。而這兩者的結合創造了穩定性。所以總的來說，我認為——總的來說，我認為公司很快就會達到 10%。正如我們在一個月前舉行的會議中提到的那樣，2022 年是轉型的一年。我們正在以色列以及美國、德國和英國投資數億美元用於新設施，以便將積壓訂單轉化為收入和利潤，我們將在今年中期完成新 [Elbit 系統] 的實施年。之後，我們將基於一個標準系統在 1 個 ERP 上運行，這也將幫助我們創造——變得更有效和更有效率。我們最近對公司進行了重組，以便與市場更相關，也更有效——但這對所有部門都是如此。

Okay. And is there any kind of normalized profitability to think about for the Aerospace segment? It looks like it was pretty depressed a couple of years ago, and I just want to understand like in 2020. And I just want understand where it was like in the previous decade.

好的。航空航天部門是否需要考慮任何一種標準化的盈利能力？幾年前看起來很沮喪，我只想了解 2020 年的情況。我只想了解前十年的情況。

We have -- we have in 2020 -- Ellen, it's Kobi. We have in 2020 onetime write-off related to COVID-19, which was around $50 million on that segment. And we disclosed it in our disclosure. There is -- the noncash items are being disclosed by segment. So you can go and you can look and see the numbers out there in our new disclosure.

我們有——我們在 2020 年有——艾倫，是科比。我們在 2020 年有與 COVID-19 相關的一次性註銷，該部分約為 5000 萬美元。我們在披露中披露了它。有——非現金項目按部門披露。所以你可以去看看我們新披露的數字。

The next question is from Ella Fried of Bank Leumi.

下一個問題來自 Bank Leumi 的 Ella Fried。

And I would like to refer to say that it's a very, I think, very positive for the company and for the market. This sector information is really liking. And I have a question maybe already partly answered, but still maybe you could add something. I see that most of the sectors that were the weakest this year well, about 2% higher, really dramatically higher profit in the previous year 2021. So is it mostly this -- you mentioned lots of factors, but is it mostly the supply chain across the board, I mean if you should choose one factor to clearly hurt (inaudible) signed aerospace. I don't know the ones that we were lagging.

我想說的是，我認為這對公司和市場來說都是非常積極的。這個行業信息真的很喜歡。我有一個問題可能已經得到部分回答，但也許你還可以添加一些內容。我看到今年表現最差的大多數行業，高出約 2%，在前一年 2021 年的利潤確實大幅提高。所以主要是這個——你提到了很多因素，但主要是供應鏈嗎總的來說，我的意思是，如果你應該選擇一個因素來明顯傷害（聽不清）簽署的航空航天。我不知道我們落後的那些。

There are several reasons for that. In 2022, we had stock price compensation expenses which affected the '22 numbers. And actually, if you convert it to percentage, it's about 1.2% of profit, which was which was hurt by these expenses. On top of that, supply chain disruption and price increases of electronic components also affected us all over the company. So these two factors are common to the all segments, and they all affected us. And both of them will be less relevant or almost nonrelevant in 2023.

這有幾個原因。 2022 年，我們的股價補償費用影響了 22 號。實際上，如果你將它轉換成百分比，它大約是利潤的 1.2%，這是受到這些費用的影響。最重要的是，供應鏈中斷和電子元件價格上漲也影響了我們整個公司。所以這兩個因素對所有細分市場都是共同的，它們都影響了我們。到 2023 年，它們都將變得不那麼相關或幾乎不相關。

Also want to remind us that as was presented in the conference, we have invested hundreds of millions of dollars in new facilities in order to support the transformation the company is going through. And this took place in 2021 in a small numbers, in 2022 in big numbers, and it will continue also in 2023 in order to -- in order to enable us to convert the new business with the backlog we have into revenue and the profit.

還想提醒我們，正如在會議上介紹的那樣，我們已投資數億美元用於新設施，以支持公司正在進行的轉型。這發生在 2021 年少量，2022 年大量發生，並且它也將在 2023 年繼續，以便 - 為了使我們能夠將積壓的新業務轉化為收入和利潤。

And I also want to say that the exchange rate in 2023 is much more favorable than it used to be in 2022, and we see less pressure in the labor market. So I do not expect to invest so much in bonuses as we invested in 2022.

我還想說，2023 年的匯率比 2022 年要有利得多，我們看到勞動力市場的壓力較小。因此，我預計不會像我們在 2022 年那樣在獎金上投入那麼多。

Okay. And I don't know if you are relating to current update, but the same trend that you showed us at the first annual report. Are they intact? Are they -- I mean are there any changes? I mean, for better onwards that you could mention, if you can mention them.

好的。我不知道你是否與當前更新有關，但與你在第一份年度報告中向我們展示的趨勢相同。它們完好無損嗎？他們是——我的意思是有任何變化嗎？我的意思是，為了更好地前進，你可以提到，如果你可以提到他們。

The answer is very simple is no. We do not see any effect on our businesses. And we see a lot of potential ahead of us in Europe as well as in the Far East and in the U.S. and also here in Israel. So I do not see any impact on Elbit.

答案很簡單是否定的。我們沒有看到對我們的業務有任何影響。我們在歐洲、遠東、美國以及以色列看到了巨大的潛力。所以我看不到對 Elbit 有任何影響。

Ella, we report our results in a few weeks' time, and that's when we will refer to the current environment. We have this call on until the end of December 2022.

埃拉，我們將在幾週後報告結果，屆時我們將參考當前環境。我們將此呼籲持續到 2022 年 12 月結束。

(Operator Instructions) The next question is from [Shachar Carmey] of Psagot.

（操作員說明）下一個問題來自 Psagot 的 [Shachar Carmey]。

Just a quick one for me, please. With regard to ESA is the fact that you now present it separately, means that at one point in the future, that subsidiary might go to an IPA, is it something that you even consider?

請給我一個快速的。關於 ESA，您現在單獨展示它，這意味著在未來的某一時刻，該子公司可能會進入 IPA，您是否考慮過這一點？

It's Butzi. The answer is no. We -- the synergy between all the businesses, all the segments are crucial to the success of the company. And as you can see, there are many transactions between them. So we see a Elbit Systems of America as an integrated part of Elbit and it will continue to be this way. So we do not consider an IPO.

是布茲。答案是不。我們——所有業務之間的協同作用，所有部門對公司的成功至關重要。正如你所看到的，它們之間有很多交易。因此，我們將美國的 Elbit Systems 視為 Elbit 的一個組成部分，並將繼續保持這種狀態。所以我們不考慮IPO。

There are no further questions at this time. Before I ask Mr. Machlis to go ahead with his closing statement, I would like to remind participants that a replay of this call will be available two hours after the conference ends. In the U.S., please call 1 (888) 782-4291. In Israel, please call (03) 925-5900. And internationally, please call 972-3-925-5900. A replay of this call will also be available on the company's website, www.elbitsystems.com. Mr. Machlis, would you like to make your concluding statement?

目前沒有其他問題。在我請 Machlis 先生繼續他的閉幕詞之前，我想提醒與會者，會議結束兩小時後將重播此次電話會議。在美國，請撥打 1 (888) 782-4291。在以色列，請致電 (03) 925-5900。在國際上，請致電 972-3-925-5900。該公司網站 www.elbitsystems.com 也將提供此次電話會議的重播。 Machlis 先生，您要作總結髮言嗎？

I would like to thank everyone on the call. Thank you for joining us today and for your continued support and interest in our company. Have a good day, and goodbye.

我要感謝通話中的每一個人。感謝您今天加入我們，感謝您一直以來對我們公司的支持和興趣。祝你有美好的一天，再見。

Thank you. This concludes the Elbit Systems Ltd. 2022 Annual Report Conference Call. Thank you for your participation. You may go ahead and disconnect.

謝謝。 Elbit Systems Ltd. 2022 年度報告電話會議到此結束。感謝您的參與。您可以繼續並斷開連接。