Slide 1: TAT Technologies Corporate Presentation May 2016
TAT Technologies Corporate Presentation May 2016
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
3 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
Slide 4: TAT Group – Key Facts
Founded in 1969Acquired Limco in 1993Acquired Piedmont in 2005Acquired Chromalloy Israel in 2015 > 500 customers (Boeing, Lockheed Martin, Airbus, Embraer …) Revenue: YTD March 31 2015: $ 20.5MYTD March 31 2016: $ 23.6M More than 600 employees in 4 locations: Gadera and Kiryat Gat, IsraelTulsa, Okla
Slide 5: TAT Group – Senior Management
6 TAT Group –Senior Management In position since August 2013Chairman of the Board of Tadir-Gan Precision Products, Raval ACS, Bagir Group, and Ginegar Plastic Industries Samuel Vlodinger Chairman of the Board In position since April 2016Prior experience: President – Mapco Express (subsidiary of Dele
Slide 6: Aviation Industry – Market Trends
Aviation Industry – Market Trends 6
Slide 7: Target Markets: Heat management components
1. Target Markets Design and manufacturing of heat management components Heat exchangersCold platesOil CoolersFuel submerged HX 7
Slide 8: Target Markets: Heat management systems
Target Markets 8 Design and manufacturing of heat management systems From components to system levelPECS: power electronics cooling systemsAir Conditioning Systems 2. Target Market
Slide 9: Target Markets: Fuel flow accessories
3. Target Markets Design and manufacturing of fuel flow accessoriesFuel valvesSolenoid valvesFuel control valvesFuel pumps 9
Slide 10: Target Markets: Maintenance, repair and overhaul (MRO)
4. Target Markets Maintenance, repair and overhaul (MRO) Heat Exchangers APU Landing gearsJet engines blades 10
Slide 11: 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 11
Slide 12: Defense Platforms
Defense Platforms BoeingF-15 Boeingv22 BoeingF-18 BoeingCH-47 BoeingAH-64 Iron Dome SikorskyUH-60 SikorskyCH-53 Lockheed MartinF-16 12
Slide 13: 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 14: Component Locations
Component Locations Hydraulic Systems Oil Cooler Engine Oil Cooler Main Gearbox Oil Cooler 14
Slide 15: Customer Base
Service centers Air Forces Customer Base Air Lines OEM 15
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 17 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 18 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 Tachnoloaies
Slide 20: Revenue chart, US $ Millions
US $ Millions 90.0 2012 2013 2014 2015 MAT 85.6 80.0 71.9 79.6 80.7 70.0 60.0 50.0 40.0 soa 23.6 20.0 10.0 0.0 1/2016
Slide 21: Financial Results - Annual
21 Revenue Trend 23 Q1’16 2015 2014 2013 2012 $ Millions 23.6 85.6 80.7 79.6 77.9 Revenue 3.9 13.7 16.2 17.8 18.5 Gross Profit 16.7% 16.0% 20.1 % 22.4% 23.7% Gross Margin 0.3 5.6 3.8 5.3 5.4 Operating Income 1.3% 6.5% 4.7% 6.7% 6.9% Operating Margin 0.05 5.8 1.4 2.8 -1.7 Net Income (loss) 1.1 3.6 5.
Slide 22: Financial Results - Annual
23 Q1’16 2015 2014 2013 2012 $ Millions 23.6 85.6 80.7 79.6 77.9 Revenue 3.9 13.7 16.2 17.8 18.5 Gross Profit 16.7% 16.0% 20.1 % 22.4% 23.7% Gross Margin 0.3 5.6 3.8 5.3 5.4 Operating Income 1.3% 6.5% 4.7% 6.7% 6.9% Operating Margin 0.05 5.8 1.4 2.8 -1.7 Net Income (loss) 1.1 3.6 5.9 7.2 7.3 EBITDA
Slide 23: Financial Results - Quarterly
24 Financial Results - Quarterly Q1’16 Q4’15 Q3’15 Q2’15 Q1’15 Q4’14 Q3’14 Q2’14 Q1’14 $ Millions 23.6 21.7 21.9 21.5 20.5 21.4 20.3 20.6 18.4 Revenue 3.9 2.3 3.4 4.2 3.8 5.2 3.7 3.9 3.4 Gross Profit 16.7% 10.6% 15.5% 19.5% 18.5% 24.3% 18.2% 18.9% 18.5% Gross Margin 0.3 2.9 0.5 1.1 1.1 2.2 0.6 0.7 0
Slide 24: Strong Balance Sheet
25 Strong Balance Sheet 25 Strong Balance Sheet Q1’16 2015 2014 2013 $ Millions 26.0 26.8 28.0 29.9 Cash And Deposits 70.8 70.8 70.8 73.8 Working Capital 111.4 109.6 99.2 108.9 Total Assets 0.0 0.0 0.0 0.9 Debt 91.9 91.4 85.5 85.6 Equity
Slide 25: Thank You
THANK YOU. ‘AT Technologies