Slide 1: FY 2015 Fourth Quarter Earnings Call
FY 2015 FOURTH QUARTER EARNINGS CALL November 12, 2015
Slide 2: Agenda
Agenda TransDigm Overview W. Nicholas Howley Chairman and CEO Highlights, Market Review, Operating W. Nicholas Howley Performance and Outlook Chairman and CEO Operations and Value Creation Kevin Stein COO – Power Financial Results Terrance Paradie Executive Vice President and Chief Financial
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including information regarding our guidance for future periods. These forward-looking statements are based on management’s current expectation
Slide 4: Special Notice Regarding Pro Forma and Non-GAAP Information
Special Notice Regarding Pro Forma and Non-GAAP Information This presentation sets forth certain pro forma financial information. This pro forma financial information gives effect to certain recently completed acquisitions. Such pro forma information is based on certain assumptions and adjustments a
Slide 5: TransDigm Overview
TransDigm Overview DISTINGUISHING CHARACTERISTICS Highly engineered aerospace components Significant aftermarket content Proprietary and sole source products High free cash flow Proprietary Pro Forma Revenues Pro Forma EBITDA Revenues (1) (Excluding Non-Aviation Segment) (1) As Defined (1) N
Slide 6: 2015 Q4 Financial Performance by Markets – Pro Forma
2015 Q4 Financial Performance by Markets – Pro Forma Highlights⁽¹⁾ Q4 Market Review – Pro Forma Revenues⁽¹⁾ Actual vs. Prior Year Q4 YTD Commercial OEM Commercial OEM: Up ≈ 4% Up ≈ 5% Commercial transport revenue up 6% YTD Commercial Aftermarket: Up ≈ 5% Up ≈ 5% Commercial Aftermarket Commercial
Slide 7: Fiscal 2016 Outlook
Fiscal 2016 Outlook FY 2015 Pro Forma Sales Mix (1) Market FY 2016 Expected Growth 32% Commercial OEM Up Mid Single-Digit % 39% Commercial Aftermarket Up Mid to High Single-Digit % 29% Defense Up Low Single-Digit % Assumptions Guidance Summary ($ in millions) Worldwide RPM growth ≈ 5% Low High F
Slide 8: Fourth Quarter 2015 Results
Fourth Quarter 2015 Results ($ in millions, except per share amounts) Q4 FY15 Q4 FY14 Revenue $809.8 $642.2 26.1% Increase Gross Profit $427.6 $348.6 1.5 Margin Point Decrease Margin % 52.8% 54.3% ● Dilutive impact from acquisitions ● Strength of our proprietary products and productivity improvement
Slide 9: Liquidity & Taxes
Liquidity & Taxes ($ in millions) Cash Liquidity Net Debt to Pro FY 9/30/2015 FY 9/30/2014 Actual Forma EBITDA As 9/30/2015 Defined Multiple Rate Net Cash Provided by Operating Activities $520.9 $541.2 Cash $714 Capital Expenditures ($54.9) ($34.1) $550m revolver – L + 3.00% Free Cash Flow $466.0 $5
Slide 10: Reconciliation of GAAP to Adjusted EPS - Guidance
Reconciliation of GAAP to Adjusted EPS - Guidance Full Year Guidance Thirteen Week Periods Ended Fiscal Year Ended Mid-Point September 30, September 30, September 30, September 30, September 30, 2015 2014 2015 2014 2016 Earnings per share $ 2.50 $ 1.91 $ 7.84 $ 3.16 $ 9.32 Adjustments to earnings pe
Slide 11: Appendix - Reconciliation of Net Income to EBITDA and EBITDA As Defined
Appendix - Reconciliation of Net Income to EBITDA and EBITDA As Defined ($ in thousands) Thirteen Week Periods Ended Fiscal Year Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 Net income $ 141,673 $ 114,255 $ 447,212 $ 306,910 Adjustments: Depreciation and amortiza
Slide 12: Appendix - Reconciliation of Reported EPS to Adjusted EPS
Appendix - Reconciliation of Reported EPS to Adjusted EPS ($ in thousands, except per share amounts) Thirteen Week Periods Ended Fiscal Year Ended September 30, September 30, September 30, September 30, Reported Earnings Per Share 2015 2014 2015 2014 Net income $ 141,673 $ 114,255 $ 447,212 $ 306,91
Slide 13: Appendix - Reconciliation of Net Cash Provided by Operating Activities to EBITDA
Appendix - Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined ($ in thousands) Fiscal Year Ended September 30, 2015 September 30, 2014 Net cash provided by operating activities $ 520,938 $ 541,222 Adjustments: Changes in assets and liabilities, net of effects