Heico Corporation · NYSE:HEI
Heico — Investor Presentation (November 2024)
34 slides from Heico's investor presentation, November 2024
Slide 1: Corporate Overview 2024
CORPORATE OVERVIEW 2024 H E I C O. C O M
Slide 2: About
ABOUT HEICO Corporation is a rapidly growing aviation, aerospace, defense and electronics company which is focused on niche markets, highly engineered and reliable products and the generation of strong cash flow. Founded in 1957, HEICO has been in business for 67 years with current management involv
Slide 3: A Solid Partner with an Entrepreneurial Approach
A SOLID PARTNER WITH AN HEICO operates a decentralized structure, empowering entrepreneurs and management ENTREPRENEURIAL APPROACH teams to continue to run their businesses with the resources of HEICO at their disposal… for long-term growth to work closely for businesses to through which of our busi
Slide 4: Located in US States and Countries
Located in And in 27 10,000 Team Members 100 Facilities 16 US States Countries Arizona Alabama New Mexico New York I Canada China France Germany • California North Dakota Colorado Connecticut Ohio Oklahoma India • Korea Laos Morocco Florida Oregon Georgia South Carolina Illinois Tennessee Netherland
Slide 5: Operating Performance Trends
OPERATING PERFORMANCE TRENDS • Revenues have increased from $26 million in 1990 to $3.8 billion for TTM Q3 FYE 2024 • Operating Income has increased from $2 million in 1990 to $795 million for TTM Q3 FYE 2024 • Net Income has increased from $2 million in 1990 to $478 million for TTM Q3 FYE 2024 Reve
Slide 6: Compounding Cash Flows
COMPOUNDING CASH FLOWS • EBITDA increased from $4 million in 1990 to a record $969.6 million in TTM Q3 2024 • Operating Cash Flow increased from $2 million in 1990 to a record $615.1 million in TTM Q3 2024 • Cumulative Free Cash Flow has compounded from $1 million in 1990 to $4.5 billion in TTM Q3 2
Slide 7: Operating in Two Business Segments
OPERATING IN TWO BUSINESS SEGMENTS (NYSE: HEI.A & HEI) FLIGHT SUPPORT GROUP (FSG) ELECTRONIC TECHNOLOGIES GROUP (ETG) Revenue Operating Income Customer Market TTM Q3 FY24 TTM Q3 FY24 TTM Q3 FY24 Other, Space, 12% 4% ETG ETG $1.2 B ~35% Defense, 29% FSG FSG (33%) $2.6 B ~65% (67%) Commercial Aviation
Slide 8: Business Segments
Flight Support BUSINESS • Largest independent provider of commercial, FAA-Approved alternative replacement parts, and aircraft accessory component repair & overhaul SEGMENTS services for: – Avionics – Electronics – Electro-mechanical – Hydraulics Flight – Flight Structures – Pneumatics Support • Lar
Slide 9: FSG
Holding over 19,000 FAA approvals on parts for: FSG • Nearly every aircraft and engine platform • Every area of aircraft and engine PMA (PARTS) COMPANIES Producing more than 500 new, highly engineered parts each year: HEICO is the world’s largest independent supplier • PMA Management of FAA-PMA appr
Slide 10: PMA Companies
PMA COMPANIES Eight independent companies sharing technical resources and HEICO’s and Wencor’s sales forces Flight Specialties Components Corp. (FSC) Highland Heights, OH Turbine Kinetics Glastonbury, CT Aero Design Mount Juliet, TN Action Research Corp (ARC) Greer, SC Wencor Peachtree City, GA Wenc
Slide 11: HEICO Designed Parts
HEICO DESIGNED PARTS Quality & Performance Total Quantity of HEICO Parts Sold: Number of SBs Issued: Number of ADs Issued: Number of IFSDs: *Through 10/01/24 PROVEN FIELD EXPERIENCE The HEICO Design & Quality Process Works! 11
Slide 12: FSG Repair Companies
© Avionics & Instruments ~ Interiors FSG fl; Electronics ~,,If_"- Power Generation REPAIR COMPANIES ,' ~ Fuel Electrical Harnesses & Rewinds .=:l'..P. ~--00 HEICO is the largest independent component MRO and Asset Management Services provider in the world. Our success is a direct result of our team’
Slide 13: Repair Companies
REPAIR COMPANIES Twenty independent companies sharing Absolute Camtronics LLC CSI Aerospace Tulsa, OK technical resources and HEICO’s and Aviation Broken Arrow, OK Wencor’s sales forces Prime Air Cheney, WA Skokie, IL Miami, FL London, UK Aviatron Soundair South Aviation Burlington,VT Snohomish, WA
Slide 14: FSG Defense Sustainment
FSG DEFENSE SUSTAINMENT blue aerospace ACT ~..C: t,,MCOMMl"IICIAI i';IOiOU'l(';I U.U.(: ~~ A HEICO COMPANY Blue Aerospace provisions a ACT is licensed by Lockheed Martin and wide range of innovative supports the F-16 fleet with OEM products for services and support concepts the airframes and its sys
Slide 15: FSG Distribution
Technical sales and distribution of original equipment, aftermarket, and FSG DISTRIBUTION surplus aerospace and defense components HEICO Distribution, through its Seal Dynamics, Air Strategic partnerships with many of the most respected OEMs in the Cost Control, Pioneer Industries and Wencor aviatio
Slide 16: FSG Specialty Products: Composites
FSG SPECIALTY PRODUCTS COMPOSITES REINHOLD AEROWOR « > INNOVATIVE AFAOSPAr:F PRO REINHOLD INDUSTRIES AEROWORKS CARBON BY DESIGN DECAVO • Manufactures composite • Designs and manufactures • Manufactures composite • Designs and manufactures structures for aerospace composite parts used primarily compo
Slide 17: FSG Specialty Products: Metals
111:111: :111:111 111:111: FSG SPECIALTY PRODUCTS METALS :111:111 ACCURATE METAL ASTROSEAL THERMAL RIDGE ENGINEERING & JETSEAL CAPEWELL MACHINING STRUCTURES THE BECHDON COMPANY • With the latest machine tool • Engineers and • Manufactures thermal • Tight-tolerance machining • Designs and • Designs a
Slide 18: A Global Network of Customers (Partial List)
A GLOBAL NETWORK OF CUSTOMERS (Partial List)* * Supporting 250 A/L and 500 MRO’s 18
Slide 19: Electronic Technologies Group
Niche ELECTRONIC TECHNOLOGIES GROUP STRATEGY Solutions • Niche Products at Subcomponent Level • Found on Multiple Platforms in Multiple Industries: Aerospace & Defense, Homeland Security, Space, Medical and Other Markets Space Flight Infrared Missile Laser System • Avoid High Exposure to Large Progr
Slide 20: Antenna Companies
ANTENNA COMPANIES HEICO designs and manufactures high-performance guidance antennas for commercial aircraft, military aircraft, precision- guided munitions, marine vessels and other applications >~ / AeroAntenna Technology, Inc. tems CA MTRONICS A HEICD COMPANY . Aero Antenna Technology, Inc. Chatsw
Slide 21: Connectors Companies
CONNECTORS COMPANIES HEICO designs, manufactures, and distributes connectors, cables, and other interconnect-related components for niche uses, such as high-voltage, high-current, mil-spec and commercial aerospace, and various rugged environments Switcheraft CONXALL• IIA•S11 (1'\11tOH"'O•I COfo•HCfl
Slide 22: EMI / RFI Shielding Companies
EMI / RFI SHIELDING COMPANIES HEICO designs and manufactures a wide variety of shielding products to prevent electromagnetic interference and radio- frequency interference 4 • • u LERDEA TECl-t • • a HEICO com~any 11 • I 1,~t,1,vMN • LeaderTech Specialty Silicone Products Solid Sealing Technology Ta
Slide 23: Human-Machine Interface (HMI) Companies
HUMAN-MACHINE INTERFACE (HMI) COMPANIES HEICO designs, manufactures, and repairs a variety of HMI components for both original equipment use and the aftermarket and for both commercial and military aerospace applications DESIGN & MANUFACTURING REPAIR & OVERHAUL II II II Interface Displays & Controls
Slide 24: RF & Microwave Companies
RF & MICROWAVE COMPANIES HEICO designs and manufactures an extensive range of RF and microwave components and systems for numerous demanding, mission-critical applications (!j CHARTER ENGl~!UJ!!l,..!!i1 dB Control Charter Engineering, Inc. Fremont, CA Pinellas Park, FL Research Electronics Internati
Slide 25: Security & Detection Companies
SECURITY & DETECTION COMPANIES HEICO develops, manufactures, and sustains detection devices and systems that support the security requirements of government, military, law enforcement, and private sector customers Research Electronics International Intelligent Devices Cookeville, TN Columbia, MD R R
Slide 26: Space Companies
SPACE COMPANIES HEICO designs and manufactures a wide variety of space-qualified components for satellites and spacecraft used for deep space exploration and interplanetary missions 3D Plus Sierra Microwave Technologies Buc, France, with a location in California Space-grade, high-density 3D (917) Ge
Slide 27: Aircraft Programs (Commercial & Military)
Aircraft Programs (Commercial & Military) • Airbus A320 series, A330, A340, A380 • Northrop Grumman Global Hawk RQ-4 • Boeing 737NG, 747, 757, 767, 777, 787 UAV • Piper Archer, Arrow, Saratoga, Seminole, • B-52, E3 Sentry, P-8 Warrior, Malibu • Bombardier Challenger CRJ, Global Express • Sikorsky S7
Slide 28: Spacecraft Programs
Spacecraft Programs • NextGen GPS • ESA Rosetta, Solar Orbiter, Bepi Colombo, • GPS III Sentinel satellites, Metop satellites, SAR- Lupe & SARah satellites • Wideband Global SATCOM--ViaSat-2 • Tracking Data Relay Satellite/Global Data • SMAP, SWOT, NISAR, Raincube - JPL Relay - NASA, U.S. Govt. • Am
Slide 29: Defense Programs
Defense Programs • Patriot PAC-2 & 3 Missiles • Standard Missile • THAAD Missile Defense System • Multi Spectral Targeting System - MTS-B • SPQ-9B Shipboard • Bradley Fighting Vehicles, Amphibious • Air Missile Defense Radar Combat Vehicles • RC-135 Cobra Ball • Long Range Discrimination Radar • Spy
Slide 30: Major Direct Customers (Partial List)
+ CENEIUU ATOMICS A • RONAUffCAI.. ~ BOMBARDIER SODER~ Honeywell PHILIPS sense and simplicity fl! ASM Technologies Lim ited ~ Booz I Allen I Hami lton 6 MITSUBISHI ,ocKHEED MA~ v,asat €:OS HITACHI SAFRAN I 191. ELECTRIC ~EMBRAER ~ ::. ']--JvJt CAO l~ LEONARDO ORS TH A LES ,,, • SP~ CE :X:--- ':?; Ag
Slide 31: HEICO Is... Reliability, Quality, People, Innovation
HEICO IS… D\-- -- / ' ✓ ' """ RELIABILITY QUALITY PEOPLE INNOVATION • Fast response, short lead and turn • HEICO is the only ODA • Committed, driven and • Continuous investment into new around times (TATs) (Organization Designation innovative Team technologies – cutting edge Authorization) in the U.
Slide 32: Then and Now
THEN NOW A dramatic increase in demand for the HEICO rises beyond the limits JT8 Combustor in the mid-to-late 1980s of Earth, reaching Mars, Pluto and fueled HEICO’s growth as the world’s Comet 67P with critical components premier FAA-approved aircraft and operating on: engine replacement parts manu
Slide 33: Historical Stock Performance
HISTORICAL STOCK PERFORMANCE $100,000 investment in HEICO shares in 1990 became worth approximately $102.5 million as of October 25, 2024 (adjusted for stock splits, stock dividends and reinvestment of cash dividends) HEICO Common Stock Value $120,000 $100,000 $80,000 $Million $60,000 $40,000 $20,00
Slide 34: Thank You
THANK YOU For more information, please visit us at: H E I C O. C O M