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Elbit Systems Ltd.

Advanced Technology Center
P.O.B 539, Haifa 31053

Tel: +972-4-8315315


I am pleased, in my first year as Elbit Systemsí President and CEO, to introduce our Sustainability Report for activities through 2012, which reflects the way we do business and highlights impacts we have on our stakeholders, society and the environment. I am also pleased to be able to continue the legacy of my predecessor, Joseph Ackerman, who retired from Elbit Systems recently after 32 years of dedicated service, of which 17 were as President and CEO.

Under his guidance, we have become a leading global industry in our markets, and have continuously strived to ensure that the way we do business voluntarily conforms to the highest standards of responsible corporate practice.
We recently conducted a major strategic review, including an analysis of the way the defense and homeland security markets are changing around the world. This review helps us understand the ways in which we must adapt to meet new and emerging needs and address the risks associated with changing market conditions and global sustainability. The review covered our past performance, global economic and geo-political pressures which drive defense needs and technology capabilities that provide responses to these needs.

We increasingly understand the need for convergence of technologies that provides our customers with integrated solutions. We believe we are well placed to maintain our leadership position in the years to come, based upon the breadth of our technologies, from electro-optics to unmanned aircraft systems, from robotics to missile warning systems, advanced simulators and nanotechnology, which enable us to offer our customers advanced, cutting-edge turn-key solutions. We are pleased that our customersí confidence is reflected in our ongoing strong financial performance, with an increase in revenues of 45% over the past five years (2007 - 2012).
We have also seen the increasing focus of our customers on economic efficiency. Many governments are under pressure to reduce defense spending, while at the same time continue to provide quality solutions necessary to protect their citizens. This means we must deliver high quality solutions at competitive prices, through optimizing our processes and maximizing efficiencies.
At the same time as governments look to reduce defense and homeland security spending, the threats to national defense and domestic security are as prevalent as ever. Civil wars, national and regional security threats, terrorism and random acts of violence continue to challenge governments to find increasingly smart solutions. Here again, Elbit Systems is at the cutting edge, and we are pleased to be able to contribute by providing systems that help protect  citizens and also increase the safety of those charged  with protecting them.
We see opportunities for growth and increased contributions in many directions. Cyber-crime is becoming more prevalent, and we offer solutions to counter such threats. The homeland security industry is growing in importance, and we are well placed to support this need. Markets are demanding sustainability, accountability and transparency from companies. At Elbit Systems, we are committed to operating our business in a sustainable way and adopting best practices. We believe this not only brings us competitive advantages, it also provides a solid platform for successful operations well into the future.
As we continue to grow, both organically and through acquisitions, it is more critical than ever that our worldwide business be aligned synergistically to provide integrated solutions which leverage capabilities of our various operating divisions and technology centers of excellence.

We also continue to invest in the development of our 12,000 employees worldwide and in the advancement of a working culture which supports personal and professional growth, in an organization that values involvement and engagement. Recently, we also reinforced our commitment to ethical conduct by becoming a member of the International Forum on Business Ethical Conduct (IFBEC) for the Aerospace and Defense Industry. IFBEC is a joint initiative of the U.S. Aerospace Industries Association and its European counterpart, and we are pleased to be the first Israeli-headquartered company to be accepted as a member.
Thank you for taking an interest in this report. We welcome your feedback and value your support.
Bezhalel Machlis
President and Chief Executive Officer

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