Tat Technologies Ltd. · NASDAQ:TATT
Tat Technologies — Investor Presentation (March 2018)
26 slides from Tat Technologies's investor presentation, Mar 29, 2018
Slide 1: TAT Technologies Corporate Presentation March 2018
TAT Technologies Corporate Presentation March 2018
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: Investment Highlights
Investment Highlights TAT is a leading provider of heat management solutions, related accessories andservices for the aerospace and defense industries. Target marketsDesign and Manufacturing (OEM)Heat management solutions: components and systemsMaintenance, repair and overhaul (MRO)Heat management s
Slide 4: TAT Group – Key Facts
Founded in 1969Acquired Limco in 1993Acquired Piedmont in 2005Acquired Turbochrome in 2015 > 500 customers (Boeing, Lockheed Martin, Airbus, Embraer …) More than 600 employees in 4 locations: Gadera and Kiryat Gat, IsraelTulsa, Oklahoma, USAKernersville, North Carolina, USA NASDAQ and Tel Aviv stock
Slide 5: TAT Group – Senior Management
TAT Group –Senior Management In position since June 2016Former Head of the Israeli Defense Intelligence and Commander of the IDF Ground Forces Command. Retired in 2002Founder and Chairman of Spire Security Solutions Ltd. and Nyotron Information Security LtdPrior positions:2007-2015: Chairman of the
Slide 6: Aviation Industry – Market Trends
Aviation Industry – Market Trends
Slide 7: Target Markets: Heat management components
1. Target Markets Design and manufacturing of heat management components Heat exchangersCold platesOil CoolersFuel submerged HX
Slide 8: Component Locations
Hydraulic Systems Fuel Submerged Oil Cooler Air Cooled Oil Cooler Component Locations Power ElectronicsCold Plates (Weather Radars + Avionics+ Entertainment)Heat Exchangers (Same) APU Oil Cooler EngineOil Cooler Galley Auxiliary HX Chillers Air SystemsPre-cooler (Bleed Air System)Emergency HX (Bleed
Slide 9: Component Locations
Component Locations Hydraulic Systems Oil Cooler Engine Oil Cooler Main Gearbox Oil Cooler
Slide 10: Target Markets: Heat management systems
Target Markets Design and manufacturing of heat management systems From components to system levelPECS: power electronics cooling systemsAir Conditioning Systems 2.
Slide 11: Target Markets: Fuel flow accessories
3. Target Markets Design and manufacturing of fuel flow accessoriesFuel valvesSolenoid valvesFuel control valvesFuel pumps
Slide 12: Target Markets: Maintenance, repair and overhaul (MRO)
4. Target Markets Maintenance, repair and overhaul (MRO) Heat Exchangers APU Landing gearsJet engines blades
Slide 13: Commercial Platforms
Commercial Platforms Airbus A300, A310, A319, A320, A321, A330 Bombardier CRJ ATR 42, 72 PilatusPC-12 Boeing 737, 747, 767, 777 SukhoiSuper Jet CessnaCJ-3, CJ-4, Citation-X, Caravan EmbraerERJ145, ERJ170, ERJ190
Slide 14: Defense Platforms
Defense Platforms BoeingF-15 Boeingv22 BoeingF-18 BoeingCH-47 BoeingAH-64 Iron Dome SikorskyUH-60 SikorskyCH-53 Lockheed MartinF-16
Slide 15: Customer Base
Service centers Air Forces Customer Base Air Lines OEM
Slide 16: Strength / Differentiators
Strength / Differentiators Over 40 years of experience – proven competence in demanding aerospace world Technology Unique manufacturing capabilities – 4 facilities world wide, including dip brazing and vacuum brazing, EBW Manufacturing Expertise FAA, EASA, AS9100, Honeywell authorized repair center
Slide 17: Capabilities and Expertise
Capabilities and Expertise CertificationsAS 9100ISO 9001Preferred Supplier for: Boeing, Lockheed MartinAviation Authorities Certifications: FAA, EASA, DGAC, Thai, CAAV, NADCAP Authorized Repair Station – Honeywell
Slide 18: Growth Drivers
Growth Drivers Going upstream in the chain (from components to systems)Enter into new platforms – aviation and groundMaintenance, repair and overhaul (MRO) of new parts Organic growth and acquisitionsExpand to new territories: Eastern Europe, Asia, UK etc
Slide 19: Finance
FINANCE far Tachnoloqies
Slide 20: Revenue 2012-2017 (US$ Millions)
US $ Millions 120 106.5 200 95.8 79.6 80.7 sai 80 779 60 40 20 0 2012 2013 2014 2015 2016 2017 £
Slide 21: Geographical Distribution
Geographical Distribution Other Israel 11% Asia-Pacific 6% USA s Asia-Pacific "Europe © Israel = Other MRO/OEM Defense/Commercial —T Commercial Military
Slide 22: Financial Results - Annual
2017 2016 2015 2014 2013 2012 $ Millions 106.5 95.8 85.6 80.7 79.6 77.9 Revenue 20.4 19.0 13.7 16.2 17.8 18.5 Gross Profit 19.2% 19.9% 16.0% 20.1 % 22.4% 23.7% Gross Margin 5.3 4.1 5.6 3.8 5.3 5.4 Operating Income 5.0% 4.3% 6.5% 4.7% 6.7% 6.9% Operating Margin 2.4 0.1 5.8 1.4 2.8 -1.7 Net Income (lo
Slide 23: Financial Results - Quarterly
Financial Results - Quarterly Q4’17 Q3’17 Q2’17 Q1’17 Q4’16 Q3’16 Q2’16 Q1’16 $ Millions 26.3 26.6 26.5 27.1 25.0 23.7 23.5 23.6 Revenue 4.8 5.1 5.0 5.6 5.8 4.9 4.4 3.9 Gross Profit 18.3% 19.2% 18.8% 20.7% 23.3% 20.7% 18.6% 16.7% Gross Margin 0.6 1.5 1.3 1.9 2.1 1.5 0.3 0.3 Operating Income 2.3% 5.6
Slide 24: Strong Balance Sheet
Strong Balance Sheet 2017 2016 2015 2014 2013 $ Millions 18.0 22.4 26.8 28.0 29.9 Cash And Deposits 67.0 66.7 70.8 70.8 73.8 Working Capital 112.0 112.0 109.6 99.2 108.9 Total Assets 0.0 0.0 0.0 0.0 0.9 Debt 88.6 88.7 91.4 85.5 85.6 Equity (*) During 2016 and during 2017 the company has distributed
Slide 25: Dividend Distribution History
Dividend Distribution History Total 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 $ Millions 20.6 3.0 3.0 - 2.0 - 2.5 - - 6.3 - 2.6 1.2 Cash Dividend
Slide 26: Thank You
THANK YOU. AT Technologies
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