Slide 1: FY 2022 Q2 Earnings Call
FY 2022 Q2 Earnings Call May 10, 2022
Slide 2: Agenda
Agenda TransDigm Overview, Highlights and Outlook Kevin Stein President and CEO Market Review Jorge L. Valladares III COO Operating Performance and Financial Results Mike Lisman CFO Q&A 1
Slide 3: Forward Looking Statements & Special Notice Regarding Pro Forma and Non-GAAP Information
Forward Looking Statements & Special Notice Regarding Pro Forma and Non‐GAAP Information FORWARD LOOKING STATEMENTS This presentation contains forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including information regarding our guidance for futur
Slide 4: TransDigm Overview
TransDigm Overview Distinguishing Characteristics Highly engineered aerospace components Significant aftermarket content Proprietary products High free cash flow Proprietary Revenues (1) Pro Forma Revenues (1) Pro Forma EBITDA As Defined (1) Non‐ Comm OEM Proprietary 25% OEM Defense 50% Prop
Slide 5: 2022 Q2 Financial Performance by Markets – Pro Forma
2022 Q2 Financial Performance by Markets – Pro Forma Highlights Q2 Review – Pro Forma Revenues⁽¹⁾ Commercial OEM: 25% Biz Actual vs. Prior Year Q2 ’22 Commercial Transport Revenue Up 27% Jet/Heli Q2 YTD Q2 ’22 Business Jet/Helicopter Revenue Up 30% 75% Com Transport Commercial OEM: Up 28% Up 21%
Slide 6: Second Quarter 2022 Select Financial Results
Second Quarter 2022 Select Financial Results ($ in millions, except per share amounts) Q2 FY Q2 FY 2022 2021 Revenue $1,327 $1,194 11% Increase Gross Profit $736 $592 • Favorable Aftermarket vs. OEM sales mix • Lower COVID‐19 restructuring costs 55.5% 49.6% 5.9% SG&A $183 $162 • Realization of COVID
Slide 7: Fiscal 2022 Select Financial Assumptions
Fiscal 2022 Select Financial Assumptions Select Financial Assumptions for Fiscal 2022 Prior Assumptions (issued February 2022) Updated Assumptions Defense Revenue Growth LSD% Growth No change Full Year EBITDA Margin Slightly North of 47% Approaching 48% (Highly Dependent on Pace of Commercial (Highl
Slide 8: Capital Structure
Capital Structure Pro Forma Capital Structure ($ in millions) Actual 4/2/22 Rate Cash $4,216 $810mm revolver – L + 2.500% $350mm AR securitization facility 350 L + 1.200% First lien term loan E due 2025 2,166 L + 2.250% First lien term loan F due 2025 3,436 L + 2.250% First lien term loan G due 2024
Slide 9: Interest Rate Sensitivity
Interest Rate Sensitivity • Interest rates on TDG’s $20Bn of gross Debt is 85% fixed rate through calendar year 2025 • Achieved via a combination of interest rate caps and swaps • Significantly reduces near-term exposure to any LIBOR rate increases $ in millions Current FY 22 Current 3 Assumptions M
Slide 10: Debt Maturity Profile
Debt Maturity Profile Debt Maturity Profile ($MM) $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2022 2023 2024 2025 2026 2027 2028 2029 Secured Term Loans Secured Notes Sr Sub Notes Note: $350M AR Securitization renews annually in July 9
Slide 11: Appendix: Reconciliation of Income from Continuing Operations to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Income from Continuing Operations to EBITDA and EBITDA As Defined ($ in millions) Thirteen Week Periods Ended Twenty‐Six Week Periods Ended April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021 Income from continuing operations $ 199 $ 105 $ 362 $ 155 Adjustments: Depre
Slide 12: Appendix: Reconciliation of Reported EPS to Adjusted EPS
Appendix: Reconciliation of Reported EPS to Adjusted EPS ($ in millions, except per share amounts) Thirteen Week Periods Ended Twenty‐Six Week Periods Ended Reported Earnings Per Share April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021 Income from continuing operations $ 199 $ 105 $ 362 $ 155 L
Slide 13: Appendix: Reconciliation of GAAP EPS to Adjusted EPS
Appendix: Reconciliation of GAAP EPS to Adjusted EPS Thirteen Week Periods Ended Twenty‐Six Week Periods Ended April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021 GAAP earnings per share from continuing operations $ 3.38 $ 1.79 $ 5.33 $ 1.40 Adjustments to earnings per share: Dividend & dividend
Slide 14: Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined Twenty‐Six Week Periods Ended ($ in millions) April 2, 2022 April 3, 2021 Net cash provided by operating activities $ 366 $ 372 Adjustments: Changes in assets and liabilities, net of effects from ac