Slide 1: Investor's Presentation May 2024
I N V E S TO R’ S P R E S E N TAT I O N May 2024
Slide 2: Looking Forward Statements
LOOKING FORWARD STATEMENTS INVESTOR'S PRESENTATION - May 2024 2 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,” “goal
Slide 3: First Quarter 2024 Results key indicators
First Quarter 2024 Results key indicators In K USD Q1-2024 Q1-2023 Variance Revenues 34,088 25,217 8,871 - 35% Gross profits 7,066 4,259 2,807 - 66% Gross Margin 20.7% 16.9% 3.8bp Adj. EBITDA 3,677 2,079 1,598 – 77% EBITDA Margin 10.8% 8.6% 2.2bp Net Income/ (loss) 2,110 658 1,452 – 220% Improvement
Slide 4: Upward trend in revenue and EBITDA started in Q4/22
UPWARD TREND IN REVENUE AND EBITDA STARTED IN Q4/22 INVESTOR'S PRESENTATION - May 2024 4
Slide 5: Revenues and Profit
Revenues and Profit INVESTOR'S PRESENTATION - May 2024 5
Slide 6: TAT Unique Proposition
TAT UNIQUE PROPOSITION INVESTOR'S PRESENTATION - MARCH 2024 6 EXPERIENCE AND EXPERTISE Over 7 decades in defense and commercial aviation THERMAL SOLUTION Over 60 years of design, production and repair of heat transfer solutions OVER $400 MILLION Backlog and LTA 3 OPERATIONAL SITES Greensboro NC, Tul
Slide 7: Key Strategic Product Segments
KEY STRATEGIC PRODUCT SEGMENTS INVESTOR'S PRESENTATION - May 2024 7 THERMAL SYSTEMS & COMPONENTS OEM AND MRO APU-HONEYWELL AUTHORIZED MRO LANDING GEARS- LIEBHERR & SAFRAN AUTHORIZED MRO
Slide 8: Top Management
TOP MANAGEMENT INVESTOR'S PRESENTATION - May 2024 8 Previous Positions: 2007-2015 – Chairman of the Board of Logic Industries Ltd. 2007-2010 – Chairman of the Board of Plasan Sasa Ltd. 2002-2005 – CEO at Elul Technologies Ltd. Previous Positions: 2009-2013 – President at Mapco Express (subsidiary of
Slide 9: Global Presence
GLOBAL PRESENCE INVESTOR'S PRESENTATION - MARCH 2024 9 TULSA, OKLAHOMA OEM & MRO THERMAL MANAGEMENT SOLUTIONS GREENSBORO, NORTH CAROLINA MRO POWER & ACTUATION SOLUTIONS CHARLOT TE, NORTH CAROLINA GROUP OFFICE KIRYAT GAT, ISRAEL OEM & MRO THERMAL MANAGEMENT AND POWER & ACTUATION SOLUTIONS SCHENZHEN C
Slide 10: Strategic Shift – Key Elements 2020–2024
STRATEGIC SHIFT – KEY ELEMENTS 2020 – 2024 INVESTOR'S PRESENTATION - May 2024 10 FROM 4 INDEPENDENT COMPANIES TO ONE GROUP WITH 3 OPERATIONAL SITES centralized S&M, R&D and finance team. Cost savings of $1.5 million a year STRONG MRO PARTNERSHIP WITH HONEYWELL for certifications and part costs on th
Slide 11: Strategic Shifts Timeline - Started in 2020
STRATEGIC SHIFTS TIMELINE- STARTED IN 2020 INVESTOR'S PRESENTATION - May 2024 11 2020 2021 2022 2023 ORGANIZATION STRUCTURE CHANGE LEASING AND TRADING BUSINESS UNIT INITIATION 3 HONEYWELL APU STRATEGIC AGREEMENTS APU 331-500 LICENSE AGREEMENT APU 131 LICENSE AGREEMENT 131 A/ B APU READINESS $50M CON
Slide 12: Honeywell Strategic Agreements During 2020-21
HONEYWELL STRATEGIC AGREEMENTS DURING 2020-21 INVESTOR'S PRESENTATION - MARCH 2024 12 18 ENGINES PURCHASED AS HONEYWELL EXCLUSIVE ENGINE BANK FOR APU B777. CURRENTLY 1,600 AIRCRAFTS AND PRODUCTION IS ONGOING. 10 years agreement Annual estimated lease income of $4.5M MRO FOR B777 APU CURRENTLY 1,600
Slide 13: Honeywell Strategic Deals Potential
HONEYWELL STRATEGIC DEALS POTENTIAL INVESTOR'S PRESENTATION - May 2024 13 CURRENT ENGINE PLATFORM YEARLY TAT’S CURRENT MARKET 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 $145M NONE 10% 131 B 737, A 319-21 $1,000M NONE 5%
Slide 14: Revenue and EBITDA Growth Engines for 2024-2025
REVENUE AND EBITDA GROWTH ENGINES FOR 2024-2025 14 Strong demand for products and services as the industry is ramping out of COVID- strong backlog coverage for 2024-2025 Strong growth in APU331-200 for 2024 and 2025 Growth from APU131 and 331-500 with improved profitability as we start penetrating t
Slide 15: New Technologies: Long-Term Growth Potential
NEW TECHNOLOGIES: LONG-TERM GROWTH POTENTIAL 15 THERMAL SYSTEMS FOR ELECTRICAL AIRCRAFT AND AUTONOMOUS AIRCRAFTS ADDITIVE MANUFACTURING AND 3D PRINTING CONFORMAL HEAT EXCHANGERS AND OIL COOLERS FOR ENGINES INVESTOR'S PRESENTATION - May 2024
Slide 16: Latest Investor News
LATEST INVESTOR NEWS 16 TAT Signs a new $50M contract with a major airline June 9, 2022 TAT signs a contract expansion valued $6 million a year with Collins Aerospace October 18, 2022 TAT signs a five years contract extension valued $50M with a major airline February 6, 2023 TAT received first APU33
Slide 17: Appendices: Product Lines and Services
APPENDICES PRODUCT L INES AND SERVICES INVESTOR'S PRESENTATION - MARCH 2024 17
Slide 18: We Keep Our Customers Flying
WE KEEP OUR CUSTOMERS FLYING INVESTOR'S PRESENTATION - MARCH 2024 18 MORE THAN 300 CUSTOMERS WORKING WITH MORE THAN 50 MAJOR AIRLINES 5 LARGEST CUSTOMERS, PRESENT 27% OF REVENUE
Slide 19: We Keep Our Customers Flying
WE KEEP OUR CUSTOMERS FLYING 19 INVESTOR'S PRESENTATION - May 2024
Slide 20: Thermal Management
THERMAL MANAGEMENT INVESTOR'S PRESENTATION - May 2024 20 HEAT EXCHANGERS ELECTRONIC DEVICES COOLING SYSTEM COLD PLATES FUEL SUBMERGED HX OIL COOLERS ECU DESIGN, MANUFACTURE (OEM) AND MRO SERVICES FOR THERMAL MANAGEMENT SOLUTIONS
Slide 21: Thermal Management Solutions
THERMAL MANAGEMENT SOLUTIONS INVESTOR'S PRESENTATION - MARCH 2024 21 POWER ELECTRONICS: COLD PLATES (PAO) LIQUID- COOLED HEAT EXCHANGERS POWER PLANT: AIR- COOLED OIL COOLERS FUEL- OIL HEAT EXCHANGERS CONFORMAL AIR- COOLED OIL COOLERS FUEL INERTING SYSTEM: AIR- COOLED AIR COOLERS APU: AIR- COOLED OIL
Slide 22: Power and Actuation
POWER AND ACTUATION INVESTOR'S PRESENTATION - MARCH 2024 22 APU ECS ACCESSORIES LANDING GEARS BLADES FUEL SYSTEM ACCESSORIES COOLING SYSTEMS ACCESSORIES PUMPS DESIGN, MANUFACTURING AND MRO SERVICES FOR POWER AND ACTUATION SOLUTIONS
Slide 23: Financials
F INANCIALS INVESTOR'S PRESENTATION - MARCH 2024 23
Slide 24: First Quarter 2024 Results key indicators
First Quarter 2024 Results key indicators In K USD Q1-2024 Q1-2023 Variance Revenues 34,088 25,217 8,871 - 35% Gross profits 7,066 4,259 2,807 - 66% Gross Margin 20.7% 16.9% 3.8bp Adj. EBITDA 3,677 2,079 1,598 – 77% EBITDA Margin 10.8% 8.6% 2.2bp Net Income/ (loss) 2,110 658 1,452 – 220% Improvement
Slide 25: Upward trend in revenue and EBITDA started in Q4/22
UPWARD TREND IN REVENUE AND EBITDA STARTED IN Q4/22 25 INVESTOR'S PRESENTATION - May 2024
Slide 26: Revenues by Product
Revenues by Product Product segment growth works according to our strategy INVESTOR'S PRESENTATION - May 2024
Slide 27: Upward Trending Revenue
27 UPWARD TRENDING REVENUE INVESTOR'S PRESENTATION - May 2024
Slide 28: Improve Profit and Margins
28 * Q4-22 include Grants Improve Profit and Margins INVESTOR'S PRESENTATION - May 2024
Slide 29: * Q4-22 include Grants
29 * Q4-22 include Grants INVESTOR'S PRESENTATION - May 2024
Slide 30: * Q4-22 include Grants
30 * Q4-22 include Grants INVESTOR'S PRESENTATION - May 2024
Slide 31: Back-log
Back-log During the period TAT was awarded contracts of over 40M$ INVESTOR'S PRESENTATION - May 2024
Slide 32: Business Breakdown Q1-2024
BUSINESS BREAKDOWN Q1-2024 32 INVESTOR'S PRESENTATION - May 2024
Slide 33: TAT Technologies Multiples
TAT Technologies (NASDAQ:TATT) Multiples 33 INVESTOR'S PRESENTATION - May 2024
Slide 34: Thank You
T H A N K YO U INVESTOR'S PRESENTATION - MARCH 2024 34