Rafael Advanced Defense Systems Ltd.

During the first nine months of 2020, Rafael was able to secure new orders of close to NIS5.0 billion (compared to NIS6.5 billion in the same period in 2019), bringing the company's backlog to about NIS23 billion (of which 50% to foreign countries). The company explains the drop in new order as stemming from several countries shifting focus from ongoing priorities to dealing with COVID-19. Furthermore, a few rounds of elections in Israel have resulted in a lack of budget in the last two years. With the drop in the order intake in 2020 and given the current uncertainty, we assume a prudent EBITDA of NIS740 million-NIS800 million in 2021. Israel recently signed peace agreements with some countries in the

...Important order intakes prior to the pandemic, and the ability to execute those during 2020, saw the company post reasonable results. The company's pre-COVID-19 orders and its ability to maintain its activities without material disruptions have resulted in relatively robust financial ratios, especially compared to similar companies. Based on year-to-date results, we project EBITDA of about new Israeli shekels (NIS) 830 million-NIS850 million in 2020, compared to peak EBITDA of close to NIS880 million in 2019. During the first nine months of 2020, Rafael was able to secure new orders of close to NIS5.0 billion (compared to NIS6.5 billion in the same period in 2019), bringing the company's backlog to about NIS23 billion (of which 50% to foreign countries). The company explains the drop in new order as stemming from several countries shifting focus from ongoing priorities to dealing with COVID-19. Furthermore, a few rounds of elections in Israel have resulted in a lack of budget in the last...

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