Slide 1: FY 2019 Q4 Earnings Call
FY 2019 Q4 Earnings Call November 19, 2019
Slide 2: Agenda
Agenda TransDigm Overview and Highlights Nick Howley Executive Chairman Operating Performance, Market Review Kevin Stein and Outlook President and CEO Financial Results Mike Lisman CFO Q&A 1
Slide 3: Forward Looking Statements & Special Notice Regarding Pro Forma and Non-GAAP Information
Forward Looking Statements & Special Notice Regarding Pro Forma and Non-GAAP Information 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 futur
Slide 4: TransDigm Overview (Includes Esterline)
TransDigm Overview (Includes Esterline) Distinguishing Characteristics Highly engineered aerospace components Significant aftermarket content Proprietary and sole source products High free cash flow Proprietary Revenues (1) Pro Forma Revenues (1) Pro Forma EBITDA As Defined (1) Non- Propriet
Slide 5: 2019 Q4 Financial Performance by Markets – Pro Forma (Excludes Esterline)
2019 Q4 Financial Performance by Markets – Pro Forma (Excludes Esterline) Highlights Q4 Review – Pro Forma Revenues⁽¹⁾ 20% Biz Actual vs. Prior Year Jet/Heli Q4 Total Year Commercial OEM: 80% Com Transport Commercial OEM: Up 11% Up 11% Q4 ‘19 Commercial Transport Revenue Up 12% Q4 ’19 Business J
Slide 6: Fourth Quarter 2019 Select Financial Results
Fourth Quarter 2019 Select Financial Results ($ in millions, except per share amounts) Q4 FY Q4 FY 2019 2018 • 8.0% organic sales growth Revenue $1,541 $1,049 46.9% Increase • Lower Esterline gross margins vs. legacy TDG • Legacy TDG business margins expanded Gross Profit $882 $597 0.3% Margin Incre
Slide 7: Full Year 2019 Select Financial Results
Full Year 2019 Select Financial Results ($ in millions, except per share amounts) FY2019 FY2018 • 10.5% organic sales growth Revenue $5,223 $3,811 37.1% Increase • Lower Esterline gross margins vs. legacy TDG • Higher acquisition integration related costs Gross Profit $2,809 $2,178 -3.4% Margin Decr
Slide 8: Fiscal 2020 Outlook
Fiscal 2020 Outlook Market Growth Assumptions (Includes Esterline) FY 2019 Pro FY 2020 Expected Forma Sales Mix (1) Market Growth 32% Commercial OEM Up LSD to MSD% 31% Commercial Aftermarket Up MSD to HSD% 37% Defense Up MSD% Misc. Financial Assumptions Guidance Summary FY 2020 Guidance Low High F
Slide 9: Reconciliation of Fiscal 2020 Outlook
Reconciliation of Fiscal 2020 Outlook ($ in millions, except per share amounts) FY 2020 Guidance Midpoint Net income $ 1,040 Adjustments: Includes approx. $62m Depreciation and amortization expense 302 of backlog amortization Interest expense - net 1,020 Income tax provision 317 EBITDA 2,679 Adjustm
Slide 10: Liquidity & Taxes
Liquidity & Taxes ($ in millions) Cash Pro Forma Capital Structure FY 19 FY 18 9/30/19 9/30/18 Pro forma capitalization Actual Pro forma (1) ($ in millions) 9/30/19 Adj. 9/30/19 Rate Net Cash Provided by $1,028.6 $1,022.2 Cash $1,467 $1,463 $2,930 Operating Activities $760mm revolver – – – L + 3.000
Slide 11: Reconciliation of GAAP to Adjusted EPS - Guidance
Reconciliation of GAAP to Adjusted EPS - Guidance Full Year Guidance Thirteen Week Periods Ended Fiscal Years Ended Mid-Point September 30, September 30, September 30, September 30, September 30, 2019 2018 2019 2018 2020 GAAP earnings per share $ 4.08 $ 4.14 $ 12.94 $ 16.28 $ 17.00 Adjustments to ea
Slide 12: Appendix
TRANSDIGM 29: * APPENDIX 11
Slide 13: 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 Years Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Net income including noncontrolling interests $ 348,027 $ 228,763 $ 891,311 $ 957,062 Les
Slide 14: 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 Years Ended September 30, September 30, September 30, September 30, Reported Earnings Per Share 2019 2018 2019 2018 Income from continuing operations including nonco
Slide 15: Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined ($ in thousands) Fiscal Years Ended September 30, 2019 September 30, 2018 Net cash provided by operating activities $ 1,015,472 $ 1,022,173 Adjustments: Changes in assets and liabilities, net of eff