Tat Technologies Ltd. · NASDAQ:TATT
Tat Technologies — Q3 2024 Earnings Presentation
31 slides from Tat Technologies's earnings presentation, Nov 1, 2024
Slide 1: Investor Presentation Q3 2024
I N V E S TO R P R E S E N TAT I O N Q3 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation may contain certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Generally, the words “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “
Slide 3: Third Quarter 2024 Results Key Indicators
Third Quarter 2024 Results Key Indicators $M Q3-24 Q3-23 ∆ 9M-24 9M-23 ∆ Revenue 40.5 29.9 ↑ 35% 111.1 82.0 ↑ 36% Gross Profit 8.5 5.8 ↑ 46% 23.5 15.5 ↑ 52% Gross Margin 21.0% 19.4% ↑ 160bp 21.2% 18.9% ↑ 230bp Operating Profit 3.4 1.8 ↑ 96% 8.4 4.2 ↑ 98% Operating Margin 8.5% 5.9% ↑ 260bp 14.0% 9.5%
Slide 4: Upward Trend in Revenue and EBITDA Started in Q4/22
UPWARD TREND IN REVENUE AND EBITDA STARTED IN Q4/22 INVESTOR PRESENTATION - Sep 2024 4
Slide 5: TAT Unique Proposition
TAT UNIQUE PROPOSITION EXPERIENCE THERMAL OV E R $400 AND EXPERTISE SOLUTION MILLION Over 7 decades in defense and Over 60 years of design, Backlog and LTA commercial aviation production and repair of heat transfer solutions DECADES OF OVER 300 3 OPERATIONAL EXCELLENCE CUSTOMERS SITES In MRO for Hon
Slide 6: Key Strategic Product Segments
KEY STRATEGIC PRODUCT SEGMENTS THERMAL SYSTEMS & APU-HONEYWELL LANDING GEARS- COMPONENTS OEM AUTHORI ZED MRO LIEBHERR & SAFRAN AND MRO AUTHORI ZED MRO INVESTOR PRESENTATION - Sep 2024 6
Slide 7: Top Management
TOP MANAGEMENT Amos Malka Mr. Igal Zamir Mr. Ehud Ben Yair Chairman of the Board President & CEO CFO In position since June 2016 In position since April 2016 In position since May 2018 Maj. Gen. (ret.) Former Head of the Israeli Defense Intelligence and Commander of the IDF Ground Forces Command. Re
Slide 8: Global Presence
GLOBAL PRESENCE GREENSBORO, NORTH CAROLINA MRO TULSA, OKLAHOMA KIRYAT GAT, ISRAEL POWER & ACTUATION SOLUTIONS OEM & MRO OEM & MRO C H A R LOT T E, N O RT H C A RO L I N A THERMAL MANAGEMENT THERMAL MANAGEMENT AND GROUP OFFICE SOLUTIONS POWER & ACTUATION SOLUTIONS SCHENZHEN CHINA THERMAL COMPONENTS M
Slide 9: Strategic Shift – Key Elements 2020–2024
STRATEGIC SHIFT – KEY ELEMENTS 2020 – 2024 STRONG MRO PARTNERSHIP WITH FROM 4 INDEPENDENT COMPANIES TO HONEYWELL ONE GROUP WITH 3 OPERATIONAL for certifications and part costs on the SITES new APU models (LTAs over $90M) centralized S&M, R&D and finance team. Cost savings of $1.5 million a year ESTA
Slide 10: Strategic Shifts Timeline Started in 2020
STRATEGIC SHIF TS TIMELINE STARTED IN 2020 2020 2021 2022 2023 2024 ORGANIZATION STRUCTURE CHANGE LEASING AND TRADING BUSINESS UNIT INITIATION PRIVATE JETS LANDING GEAR MRO 3 HONEYWELL APU STRATEGIC AGREEMENTS FIRST APU 331-20X APU 331-500 APU 131 FIRST 131 A/ B $50M $50M REVENUE LICENSE LICENSE LIC
Slide 11: Honeywell Strategic Agreements During 2020-21
HONEYWEL L STRATEGIC AGREEMENTS DURING 2020-21 MRO FOR B757/767,C17 APU 18 ENGINES PURCHASED AS HONEYWELL 1,500 AIRCRAFTS SIGNED EXCLUSIVE ENGINE BANK FOR APU B777. 10 years agreement 09/2020 10 years agreement SIGNED Estimated annual market size of $85M Annual estimated lease income of $4.5M 12/202
Slide 12: The Opportunity
The Opportunity CURRENT TAT’S MARKET ENGINE PLATFORM YEARLY CURRENT SHARE POTENTIAL MARKET SIZE MARKET SHARE FOR THE COMING YEARS 331-20X B 767, B 757, C 17 $85M 29% 53% 331-500 B 777 $290M NONE 10% 131 B 737, A 319-21 $2,200M NONE 5% TAM prior Q1-24 < $380M; and > $2.5B After Q1-24 INVESTOR PRESENT
Slide 13: Revenue and EBITDA Growth Engine for 2025-2026
REVENUE AND EBITDA GROWTH ENGINE FOR 2025-2026 STRONG DEMAND for products and services as the industry is ramping out of Covid-strong backlog coverage for 2025 and 2026 SEVERAL STRONG INCREASED DEMAND in OEM orders as production accelerates PILLARS WILL GROWTH in APU331-200 for 2025 and 2026 SUPPORT
Slide 14: New Technologies: Long-Term Growth Potential
NEW TECHNOLOGIES: LONG-TERM GROWTH POTENTIAL T H E R M A L SYST E M S ADDITIVE CO N FO R M A L HEAT FO R E L EC T R I C A L M A N U FAC T U R I N G E XCH A N GE RS AND A I RC R A F T A N D AND 3D P R I N T I N G OIL COOLERS FOR AU TO N O M O US E N GI N ES A I RC R A F T S INVESTOR PRESENTATION - Se
Slide 15: Financials
FI N A N C I A L S INVESTOR'S PRESENTATION - MARCH 15 2024
Slide 16: Third Quarter 2024 Results Key Indicators
Third Quarter 2024 Results Key Indicators $M Q3-24 Q3-23 ∆ 9M-24 9M-23 ∆ Revenue 40.5 29.9 ↑ 35% 111.1 82.0 ↑ 36% Gross Profit 8.5 5.8 ↑ 46% 23.5 15.5 ↑ 52% Gross Margin 21.0% 19.4% ↑ 160bp 21.2% 18.9% ↑ 230bp Operating Profit 3.4 1.8 ↑ 96% 8.4 4.2 ↑ 98% Operating Margin 8.5% 5.9% ↑ 260bp 14.0% 9.5%
Slide 17: Last Five Quarters Key Indicators
Last Five Quarters Key Indicators TAT P&L ($M) Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q3 YOY Revenue 29.9 31.8 34.1 36.5 40.5 35% Gross Profit 5.8 7.0 7.1 8.0 8.5 46% Gross Margin 19.4% 21.9% 20.7% 21.9% 21.0% 160bp Operating Profit 1.8 1.8 2.2 2.7 3.4 96% Operating Margin 5.9% 5.8% 6.5% 7.5% 8.5% 260bp Net
Slide 18: Revenue by Product
Revenue by Product Revenue By Product ($M) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q3 YOY Heat Exchange 12.5 13.3 14.2 15.8 16.6 33% APU 8.2 9.2 9.2 10.7 10.5 27% Trading & Leasing 1.8 2.2 2.9 2.0 5.7 222% Landing Gears 2.5 2.3 1.5 2.0 1.8 -28% Others 5.0 4.7 6.3 6.1 5.9 19% Total Revenues 29.9 31.8
Slide 19: Upward Trending Revenue
UPWARD TREN DING REVENU E INVESTOR PRESENTATION - Sep 2024 19
Slide 20: Improve Profit and Margins
Improve Profit and Margins * Q4-22 include Grants INVESTOR PRESENTATION - Sep 2024 20
Slide 21: Investor Presentation - Sep 2024
* Q4-22 include Grants INVESTOR PRESENTATION - Sep 2024 21
Slide 22: Investor Presentation - Sep 2024
* Q4-22 include Grants INVESTOR PRESENTATION - Sep 2024 22
Slide 23: Back-log
Back-log INVESTOR PRESENTATION - Sep 2024
Slide 24: Business Breakdown Q3-2024
BUSINESS BREAKDOWN Q3-2024 24 INVESTOR PRESENTATION - Sep 2024
Slide 25: Appendices Product Lines and Services
A P P E N DI C E S PRODUCT LINES AND SERVICES INVESTOR'S PRESENTATION - MARCH 25 2024
Slide 26: We Keep Our Customers Flying
WE KEEP OUR CUSTOMERS FLYING MORE THAN 3 0 0 C U STO M E R S WO R K I N G W I T H M O R E T H A N 50 MAJOR AIRLINES 5 L A RG E ST C U STO M E R S , P R E S E N T 3 3 % O F R EV E N U E INVESTOR'S PRESENTATION - MARCH INVESTOR PRESENTATION - Sep 2024 26 2024
Slide 27: We Keep Our Customers Flying
WE KEEP OUR CUSTOMERS FLYING INVESTOR PRESENTATION - Sep 2024 27
Slide 28: Thermal Management
THERMAL MANAGEMENT DESIGN, MANUFAC TURE (OEM) AND HEAT E XC H A NG E RS C O L D P L AT ES OIL COOLERS MRO SERVICES FOR THERMAL MANAGEMENT SOLUTIONS E L EC T RO N I C D E V IC ES FUEL S U B M E RG E D HX EC U CO O L ING SYSTEM INVESTOR PRESENTATION - Sep 2024 28
Slide 29: Thermal Management Solutions
THERMAL MANAGEMENT SOLUTIONS ENVIRONMENTAL GALLEY: CONTROL SYSTEM: AIR CHILLERS PRECOOLERS APU: CO N D E N S E RS POWER E L EC TRO N IC S : A I R-CO O L E D REHEATERS COLD PLATES (PAO) OIL COOLERS L I Q U I D-CO O L E D H EAT CONFORMA L EXCHANGERS A I R-CO O L E D OIL COOLERS POWER PLANT: A I R-CO O
Slide 30: Power and Actuation
POWER AND ACTUATION DESIGN, MANUFACTURING AND MRO SERVICES FOR POWER AND ACTUATION SOLUTIONS APU L A ND ING G EA RS FUEL SYSTEM AC C ES S O R I ES ECS AC C ES S O R I ES BLADES CO O L ING SYSTEMS PUMPS AC C ES S O R I ES INVESTOR'S PRESENTATION - MARCH INVESTOR PRESENTATION - Sep 2024 30 2024
Slide 31: Thank You
T H A N K YO U INVESTOR'S PRESENTATION - MARCH 31 2024