Specialist
Former senior director at Raytheon Co
Agenda
- Defence market overview and competitive analysis for Raytheon (NYSE: RTX)
- Supply and demand dynamics leading into 2021 – US defence budget outlook
- Growth opportunities and core platforms
- 12-18-month outlook
Questions
1.
What are your thoughts on the aerospace and defence market, including any key trends?
2.
What are your thoughts on Raytheon Technologies’ market positioning across commercial aerospace and defence? Are there any key headwinds or tailwinds related to the trends you noted?
3.
Raytheon recently divested its space ISR [intelligence, surveillance and reconnaissance] segment. What does this indicate about its focus on space?
4.
Do you think the USD 1bn in gross cost synergies Raytheon is projecting are achievable by 2024?
5.
What are the biggest organic growth drivers for Raytheon heading into 2021? How will it be able to leverage the technological synergies from the merger for growth?
6.
How should we think about the growth of Raytheon’s intelligence and space segment vs the missiles and defence segment? Both segments had book-to-bill ratios below one in Q3 2020, although the year-long average was able to stay just above one for both.
7.
How confident are you in Raytheon’s ability to realise its USD 70bn backlog in full? How is it leveraging defence vs commercial?
8.
About 40% of Raytheon’s backlog is from international customers. How has it been affected by its international exposure? What is your outlook there?
9.
What obstacles lie ahead for the aftermarket recovery? It’s traditionally quite a high-margin business.
10.
How confident are you in Raytheon’s ability to generate free cash flow, especially given the continuous declines in high-margin aftermarket demand and the commercial aspects?
11.
What does the Blue Canyon acquisition indicate about Raytheon’s strategic outlook, especially given the recent satellite contract loss to L3 and SpaceX?
12.
What new technological areas would be the next logical step for Raytheon?
13.
How difficult do you think it will be to break into the unmanned systems area? How will Raytheon approach that?
14.
Are there any other Raytheon platforms that you think need to be retired or recapitalised?
15.
Is there anything else you would like to add that we haven’t discussed already, or anything we have discussed that you want to elaborate on?
