Eltek Ltd. · NASDAQ:ELTK
Eltek — Q2 2023 Earnings Presentation
19 slides from Eltek's earnings presentation, Aug 1, 2023
Slide 1: Pg Bm See
* E- ¥ ._ a —__ = Pg Bm See
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 require. GAAP Prospective investors are encouraged to conduct their own analysis and Unless otherwise stated, all
Slide 3: 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 4: Where Eltek PCBs are Used
Where Eltek PCBs are Used 4
Slide 5: 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 6: PCB Manufacturing Trends
PCB Mmanufacturing 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 7: 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 8: 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 9: 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 the Bringing advanced tech Our proprietary production sell to defense contractors Flex PC
Slide 10: Massive Global Opportunity Size
Massive Global Opportunity Size Total Available Market – Global PCBs, 2027 – Growing at a 4.8% CAGR $76B Estimated High mix, Low volume for Serviceable Addressable Market Defense & Aerospace market - $1B – Global Flex-Rigid PCBs, 2025 – Growing at a 9.8% CAGR $7.5B Current Revenue Capacity – Single
Slide 11: Generating Profits in a Capital Intensive Industry
Generating Profits in a Capital Intensive Industry Complex Flex PCB Rigid PCB manufacturing supports the capital intensive Manufacturing with fixed costs of our facility, machinery, and staffing—ensuring 50%+ Positive Contribution that Eltek reaches its break even point. Breakeven Point Eltek’s Flex
Slide 12: Setting the Stage for Rampant Growth
Setting the Stage for Rampant Growth PROFIT (K$) 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 13: 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 14: Our R&D Roadmap
Our R&D Roadmap Mirrored to Global Demand of High Reliability, Miniaturization, Faster Data Traffic, and High Power 2018-2019 GOAL ✓ HDI VIA COPPER FILLING – Comprehensive ✓ Buried/Blind-filled manufacturing Non-conductive Paste capabilities of: ✓ Dynamic Rigid/Flex designs • 5/6G Products ✓ High-en
Slide 15: 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 has Forge Ltd. (Aerospace), and prior thereto he served as the CEO
Slide 16: 2022 Revenues by Geography and Sector
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% 16 16
Slide 17: Financial Snapshot
Financial Snapshot Revenues Gross Profit Income before income taxes 8M Thousands 50M 14M 7M Thousands Thousands 45M 12M 6M 10M 40M 20.8% 5M * EXTRAPOLATION * EXTRAPOLATION * EXTRAPOLATION 21.1% 8M 20.4% 9.7% 4M 35M 6M 7.3% 3M 30M 4M 2M 4.4% 25M 2M 1M 20M 0M 0M 2020 2021 2022 2023 2020 2021 2022 2023
Slide 18: Company Capitalization
Company Capitalization As of June 30, 2023 Eltek has 5,907,715 issued and outstanding shares: Nistec 3,885,096 65.8% Yitzhak Nissan (Chairman) 165,224 2.8% Total Nistec and Yitzhak Nissan 4,050,320 68.6% Public Float 1,857,395 31.4% Total 5,907,715 100.0% As of June 30, 2023: 337,134 Outstanding Opt
Slide 19: Contact Us
Contact Us www.nisteceltek.com Manufacturing 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: [email protected] 19