Tat Technologies Ltd. · NASDAQ:TATT
Tat Technologies — Investor Presentation (November 2023)
31 slides from Tat Technologies's investor presentation, November 2023
Slide 1: Form 6-K cover page
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 132-16 OR 154-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of December 2023 TAT TECHNOLOGIES LTD. (Name of Registrant) Hamelacha 5, Netanya 4250407 Israel (Address of Pri
Slide 2: Explanatory Note and Disclaimer
TAT Technologies Ltd. Explanatory Note TAT Technologies Ltd. (the "Company") hereby furnishes its investors presentation, which is attached to this Form 6-K as Exhibit 99.1 Disclaimer The information contained herein is only a summary, does not exhaust all the information about the Company and its O
Slide 3: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized ‘TAT TECHNOLOGIES LTD, (Registrant) By: /s/ Ehud Ben-Yair Ehud Ben-Yair Chief Financial Officer Date: Decem
Slide 4: TAT Technologies Investor's Presentation November 2023
TAT.=> INVESTOR’S Technologies PRESENTATION November 2023
Slide 5: Looking Forward Statements
] LOOKING FORWARD 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 6: YTD Results key indicators
D YTD Results key indicators | Q1-3\22 Actual | Q1-3\23 Actual Variance Revenues 61,707 81,957 20,250, 33% Gross profits 10,512 15,499 4,987, 47% Gross Margin 17% 19% Adj. EBITDA 1,952 7,747 5,795 , 297% EBITDA Margin 3.2% 9.5% Net Income (2,047) 4,283 6,330 Improvement in all parameters compared to
Slide 7: Q3 2023 Results key indicators
DW Q3 2023 Results key indicators finkKUSD = Ss 322 Actual | Q3\23 Actual | Variance Revenues 20,977 Gross profits 3,434 Gross Margin 16.4% Adj. EBITDA 559 EBITDA Margin 2.7% Net Income 2,151 29,935 8,958, 43% 2,380, 70% 2,450 , 438% 2,506 TAT=> Tochnok Tachnologios Investor Presentation-November 20
Slide 8: Strong positive trend in performance since Q4 2022
Strong positive trend in performance since Q4 2022 23,000 17,000 mmRevenues, —EBTDA 22,849 2,083) 20,775 20,977 19,954 | a e. “ ~~ | so7 {559 ona ca cai ania Investor Presentation-November 2023 25,217 — anys p= 2,580 St nia anys 29,935 ass 3000 2500 2000 1500 1000 500
Slide 9: Experience and Expertise
EXPERIENCE AND EXPERTISE Over 7 decades in defense and commercial aviation DECADES OF EXCELLENCE In MRO for Honeywell APU, Safran and Liebherr landing gears , and thermal components MRO. ] TAT UNIQUE PROPOSITION THERMAL SOLUTION Over 60 years of design, production and repair of heat transfer solutio
Slide 10: Key Strategic Product Segments
] KEY STRATEGIC PRODUCT SEGMENTS APU-HONEYWELL AUTHORIZED MRO LANDING GEARS: THERMAL SYSTEMS & LIEBHERR & SAFRAN COMPONENTS OEM AUTHORIZED MRO AND MRO
Slide 11: Top Management
TOP MANAGEMENT Ny 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.
Slide 12: Global Presence
GLOBAL PRESENCE eREECEN, NORTH CAROLINA 9 FULL OWNERSHIP Qg PARTIAL OWNERSHIP / COLLABORATION MRO PS BO KUO HON POWER & ACTUATION SOLUTIONS —————— OEM & MRO THERMAL MANAGEMENT CHARLOTTE, NORTH CAROLINA GROUP OFFICE SOLUTIONS KIRYAT GAT, ISRAEL OEM & MRO THERMAL MANAGEMENT AND POWER & ACTUATION SOLUT
Slide 13: Strategic Shift - Key Elements 2020-2023
] STRATEGIC SHIFT — KEY ELEMENTS 2020 - 2023 FROM 4 INDEPENDENT COMPANIES TO ONE GROUP WITH 3 OPERATIONAL . oO SITES centralizedS&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 the new APU models (LTAs over $90M
Slide 14: Strategic Shifts Timeline - Started in 2020
D STRATEGIC SHIFTS TIMELINE- STARTED IN 2020 2020 2022 2023 @) ) @) @ | LEASING AND TRADING BUSINESS UNIT 5 PRIVATE JETS LANDING GEAR MRO 3 HONEYWELL APU STRATEGIC AGREEMENTS Za i= eS =~ ~ r~ i ? ® o—_©_@_¢_¢ APU331-20X APU331-500 APU131 Ssont som RST 131 A/B EXPECTED LICENSE LICENSE LICENSE REVENUE
Slide 15: Honeywell Strategic Agreements During 2020-21
MRO FOR B757/767,C17 APU 1,500 AIRCRAFTS SIGNED 10 years agreement 09/2020 Estimated annual markel size of $85M MRO FOR B777 APU CURRENTLY 1,600 AIRCRAFT AND PRODUCTION IS ONGOING SIGNED 10 years agreement 12/2020 Estimated market size of $145M Annually First customer launched in June\23 |] HONEYWEL
Slide 16: Honeywell Strategic Deals Potential
] HONEYWELL STRATEGIC DEALS POTENTIAL CURRENT TAT'S FNGINF PI ATFORM YEARLY CURRENT MARKET SIZE MARKET SHARE 331-20X B767,B757, C17 $85M 29% 331-500 B777 $145M NONE 131 B737, A319-21 $1,000M NONC MARKET SHARE POTENTIAL FOR THE COMING YEARS
Slide 17: Revenue and EBITDA Growth Engines for 2023-4
] REVENUE AND EBITDA GROWTH ENGINES FOR 2023-4 SEVERAL STRONG PILLARS WILL SUPPORT THE GROWTH IN REVENUE AND EBITDA: Strong demand for products and services as the industry is ramping out of COVID- strong backlog coverage for 2023 Strong growth in APU331-200 for 2023 and 2024 - 2 major deals in the
Slide 18: New Technologies
] NEW TECHNOLOGIES: THERMAL SYSTEMS FOR ELECTRICAL AIRCRAFT AND AUTONOMOUS AIRCRAFTS LONG-TERM GROWTH ADDITIVE MANUFACTURING AND 3D PRINTING POTENTIAL Sm. s\\. “a oe Zz AS CONFORMAL HEAT EXCHANGERS AND OIL COOLERS FOR ENGINES TAT= Technologies
Slide 19: Latest Investor News
] LATEST INVESTOR NEWS 16 TAT Signs a new $50M contract with a major airline June 9, 2022 Read more TAT signs a contract expansion valued $6 million a year with Collins Aerospace October 18, 2022 Read more TAT signs a five years contract extension valued $50M witha major airline February 6, 2023 Rea
Slide 20: Financials
FINANCIALS Wf sono TAT>
Slide 21: Business Breakdown
] BUSINESS BREAKDOWN COMMERCIAL OEM VS. MRO VS. DEFENSE DEFENSE DEM 30% 18 INVESIUK'S PRESENIALION-NUVEMEK 2028 GEOGRAPHICAL DISTRIBUTION J TAT=> Technologies
Slide 22: Product segment
D} Product segment TAT=> Technologies Actual Actual September | September $ Thousands YTD 2022 | YTD 2023 G% Heat Exchangers OEM& MRO 24,103 31,941| 33% APU MRO 12,272 22,292| 82% Landing Gears MRO 5,270 6,211| 18% Trading & Leasing 4,978 6,145) 23% Accessories OEM _ 4,719| 5,406} 15% Others 10,363}
Slide 23: Back-log
D) Back-log Back-log by segments 2016 $170M 2017 188,629, 46% 2018 222,988 , 54% 65,912, 16% AR 2019 mAPU Tks 2020 $185M. mMRO mOEM Geteati macc 81,736, 20% mi Leasing & Trading 2021 $257M mOthers Backlog 2022 $400M 2023 $411M TAT=> Tochnok Tachnologios Investor Presentation-November 2023
Slide 24: Share price & multiples
D) Share price & multiples 13.77 3,009 3,000 10 2,083 9 8.00 7.46 eS 1,500 os 1.000 7 6.07 ae eal 7.89 500 6 : 6.33 ; Q4\22 Q1\23 Q2\23 Q3\23 Avg. share price —Net Multiple --EBITDA While share price react to the EBITDA, the multiples are still very low compared to the industry (12-15) ron TAT> (Far
Slide 25: Appendices Product Lines and Services
/ MM. a APPENDICES PRODUCT LINES AND SERVICES
Slide 26: We Keep Our Customers Flying
] WE KEEP OUR CUSTOMERS FLYING a MORE THAN os Bi Kl ee | oe 300 CUSTOMERS as _-, z va — WORKING WITH MORE THAN a ar — 50 MAJOR AIRLINES 4 5 LARGEST CUSTOMERS, A PRESENT 27% OF REVENUE a _—_ eo _ a A Sar od
Slide 27: We Keep Our Customers Flying
] WE KEEP OUR CUSTOMERS FLYING 4s my, L/ = = ne ie AHTOHOB Culfstres {| PILATUS: BOMBARDIER 9896 {). Sea aan & anrono wulfstream TEXTRON = << EMBRAER a y, Honeywell. ocanero @/ff vawwo WS uEBHERR \ E:T-N SAAR =a sme = Raytheon 35 coins pwosome & 4 \ wW KSREANAIR — Southweste & US. AIRFORCE arene Fed
Slide 28: Thermal Management
] THERMAL MANAGEMENT 25 DESIGN, MANUFACTURE (OEM) AND MRO SERVICES FOR THERMAL MANAGEMENT SOLUTIONS HEAT EXCHANGERS COLD PLATES OIL COOLERS ELECTRONIC DEVICES FUEL SUBMERGED HX ECU COOLING SYSTEM
Slide 29: Thermal Management Solutions
] THERMAL MANAGEMENT SOLUTIONS APU: AIR-COOLED OIL COOLERS CONFORMAL AIR-COOLED OIL COOLERS HYDRAULIC SYSTEM: FUEL SUBMERGED OIL ENVIRONMENTAL GALLEY: CONTROL SYSTEM: AIR CHILLERS PRECOOLERS COB EREIENE: POWER ELECTRONICS: RENCATERS COLD PLATES (PAO) LIQUID-COOLED IILAT EXCHANGERS az TMH TUCO ab ——
Slide 30: Power and Actuation
] POWER AND ACTUATION 27 DESIGN, MANUFACTURING AND MRO SERVICES FOR POWER AND ACTUATION SOLUTIONS ECS ACCESSORIES BLADES LANDING GEARS —EEEEEs COOLING SYSTEMS ACCESSORIES ty ‘wi cy FUEL SYSTEM ACCESSORIES
Slide 31: Thank You
TAT Technologies — Investor Presentation (November 2023) on 6ix