Eltek Ltd. · NASDAQ:ELTK
Eltek — Investor Presentation (December 2023)
24 slides from Eltek's investor presentation, December 2023
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Slide 2: Disclaimer
Disclaimer General Basis of Presentation The information contained in this presentation does not purport to be all inclusive or to contain all information that prospective investors may GAAP require. Prospective investors are encouraged to conduct their own Unless otherwise stated, all historical an
Slide 3: What is PCB?
What is PCB? General PCB Types ✓ Every electronic system contains an electronic printed circuit board ✓ PCBs are constructed from a variety of base raw materials and metals. (PCB), upon which are integrated several electronic components. The A standard PCB can be double-sided or multi-layered and ma
Slide 4: Eltek History & Overview
Eltek History & Overview Petach Tikva, NADCAP, AS9100D, Founded in 1970, Eltek is a global PCB manufacturer. Israel ISO9001:2015, UL 94V-0 We have 50 years of experience in the space, a wealth of key Location Key Qualifications engineering talent, and additional capacity in our facility to 100,000 f
Slide 5: Where Eltek PCBs are Used
Where Eltek PCBs are Used Rafael Iron Dome Opgal Imaging Systems Lockheed Martin F-35 Medtronic's PillCam Elta Radar Systems IAI Arrow ASN Satellites Corp Flir Thermal Systems 5 * Footer
Slide 6: Where Eltek PCBs are Used (Cont.)
Where Eltek PCBs are Used (Cont.) J&J SMARTABLATE Controp Vision Systems Smart Shooter ASML systems Netline Systems HiSky satellite communicationn Tandem Insulin Pumps Nyxoah Genio 6 * Footer
Slide 7: Where We Shine
Where We Shine Strong Portfolio of Customers Eltek is a leading global manufacturer of quality and highly-reliable printed circuit boards (PCBs)—creating rigid, flex-rigid, and flex PCBs for use in a variety of industries, including Aerospace, Military, Medical, Satellite, and many others. We are an
Slide 8: PCB Manufacturing Trends
PCB Manufacturing Trends For several decades PCB manufacturers in the West PCB Manufacturing by Region* have disappeared—leaving global manufacturing highly concentrated in China and Taiwan. Europe & US China’s PCB dominance and global security issues 9% have caused western government and companies
Slide 9: High Barriers for New Entrants in PCB Production
High Barriers for New Entrants in PCB Production Technical “Know-How” There are no university degrees for PCB production, engineers become experts in PCBs on the job and advance over time The Western world is looking to shift back to purchasing Western Machine Infrastructure Cost produced PCB’s, but
Slide 10: Growing to Satisfy Market Appetite
Growing to Satisfy Market Appetite R&D programs in Unlocking 30% in Vertical and Horizontal $15 million accelerated partnership with Israeli additional production mergers can fuel growth, investment program will innovation authorities. capacity via a 3rd shift in both domestically and gradually incr
Slide 11: What Makes Eltek Unique
What Makes Eltek Unique 50 years of operational history developing PCBs ITAR and EAR Pioneers in Constant High-Mix, Certifications Flex PCBs R&D Low-Volume Certifications allow Eltek to Eltek is a brand-name in Bringing advanced tech Our proprietary production sell to defense contractors the Flex PC
Slide 12: Massive Global Opportunity Size
Massive Global Opportunity Size Total Available Market* Global PCBs, 2028 $75B $7.5B Serviceable Addressable Market* $0.75B-$1.5B – Global Flex-Rigid PCBs, 2025 Estimated High mix, Low volume for Defense & Aerospace market Current Revenue Capacity – Single Facility at 70%-90% Capacity + accelerated
Slide 13: Generating Profits in a Capital Intensive Industry
Generating Profits in a Capital Intensive Industry Complex Flex PCB Rigid PCB manufacturing supports the capital intensive Manufacturing with fixed costs of our facility, machinery, and staffing— 50%+ Positive Contribution ensuring that Eltek reaches its break even point. Breakeven Point Eltek’s Fle
Slide 14: Setting the Stage for Rampant Growth
Setting the Stage for Rampant Growth PROFIT (K$) In 2018, newly hired Eltek management led a 2023-2024 turnaround plan and implementation of “Achieving 2018-2022 Competitive Excellence”. 2016-2018 SALES (K$) Our turnaround targeted higher operational (BEP) efficiency by reducing fixed costs and impr
Slide 15: Eltek Growth Pillars
Eltek Growth Pillars Business Excellence Operational Efficiency Market Share Expansion Right pricing Adopt Achieve Competitive Excellence Focus on the US and India markets program (ACE-similar to 6-sigma) Product rationalization Look for M&A transaction (US or Europe) Use big data technology for PCB
Slide 16: Experienced Leadership Team
Experienced Leadership Team Eli Yaffe Oriel Sallary CEO VP Worldwide Sales and Marketing Joined Eltek as CEO in July 2018. Prior, Eli served as the CEO of Carmel Joined Eltek as VP of Worldwide Sales and Marketing in May 2020. Oriel Forge Ltd. (Aerospace), and prior thereto he served as the CEO of U
Slide 17: Experienced Leadership Team (Cont.)
Experienced Leadership Team (Cont.) Sagi Balter Shlomi Kisluk VP Process Engineering Quality Manager Joined Eltek in December 2015 as electroplating process engineer and Joined Eltek in October 2022 as a quality manager. Prior to joining Eltek, became VP Process Engineering in September 2019. From 2
Slide 18: 2022 Revenues
2022 Revenues By Geography By Sector Others Defense & Aerospace 5% 48.7% India 15% Netherlands 9% Israel Industrial 55% 6.4% Medical Equipment North America 8.0% 16% Telecom & CEM, Distributors & Others Networking 36.2% 0.7% 21 18
Slide 19: Customers and SKUs
Customers and SKUs Customer Distribution by Sales High Mix, Low Volume (1-9.2023) 160 13000 140 11000 120 9000 No. of Customers Annual sales - $ 100 80 7000 60 5000 40 3000 20 1000 0 0-50 50-150 150-400 400-800 800-5,000 5,000> Annual Production – PCBs per SKU Annual Sales per Customer - $ 22 19
Slide 20: Financial Snapshot
Financial Snapshot Revenues Gross Profit Income before income taxes 7M Thousands 12M 17.6% Thousands Thousands 6M 45M 28% 10M 40 5M 20.8% 40M 21.1% 37 8M 9.7% 20.4% 4M 34 34 35M 6M 3M 7.3% 30M 4M 2M 4.4% 25M 2M 1M 20M 0M 0M 2020 2021 2022 1-9.2023 2020 2021 2022 1-9.2023 2020 2021 2022 1-9.2023 Trai
Slide 21: Financial Snapshot (Cont.)
Financial Snapshot (Cont.) Net Cash Net Worth / Total Assets Working Capital 18M 65% 17M 16.4 Thousands 16M 11.31 60% 58.6% 15M 11M 14M 13.3 12.9 55% 13M 50.6% 12M 49.3% 50% 11M 6M 4.65 3.90 10M 9.1 2.56 45% 43.4% 9M 8M 1M 40% 7M 12.2020 12.2021 12.2022 9.2023 12.2020 12.2021 12.2022 9.2023 12.2020
Slide 22: Company Capitalization
Company Capitalization As of September 30, 2023, Eltek has 5,913,965 issued and outstanding shares: Nistec 3,885,096 65.7% Yitzhak Nissan (Chairman) 165,224 2.8% Total Nistec and Yitzhak Nissan 4,050,320 68.5% Public Float 1,863,645 31.5% Total 5,913,965 100.0% As of September 30, 2023: 431,884 Outs
Slide 23: Business Factors Implications
Business Factors Implications Medical sector Defense budgets Exchange rate Qualified labor availability Rate of production capacity increase Demand Vs. western Raw materials prices Footprint in India Aerospace sector Footprint in the USA world capacity and availability Installed capacity Energy Pric
Slide 24: Contact Us
Contact Us www.nisteceltek.com Executive offices & manufacturing facility Eltek Ltd. 20 Ben Zion Gelis Street Petach Tikvah, 4927920, Israel Tel: +972 3 939 5050 Fax: +972 3 9342584 Email: [email protected] Customer Service Sales – Engineering Eltek USA Inc. Phone: (480) 716-8645 Email: info@elte