Slide 1: FY 2012 Fourth Quarter Earnings Call
FY 2012 Fourth Quarter Earnings Call November 15, 2012
Slide 2: Agenda
Agenda TransDigm Overview W. Nicholas Howley Chairman and CEO Highlights, Market Review, Operating W. Nicholas Howley Performance and Outlook Chairman and CEO Operations and Value Creation Raymond F. Laubenthal President and COO Financial Results Gregory Rufus Executive Vice President and CF
Slide 3: Forward Looking Statements
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 future periods. These forward-looking statements are based on management’s current expectation
Slide 4: Special Notice Regarding Pro Forma and Non-GAAP Information
Special Notice Regarding Pro Forma and Non-GAAP Information This presentation sets forth certain pro forma financial information, which is summarized in the appendix. This pro forma financial information gives effect to certain recently completed acquisitions and divestitures. Such pro forma informa
Slide 5: TransDigm Overview
TransDigm Overview DISTINGUISHING CHARACTERISTICS Highly engineered aerospace components Significant aftermarket content Proprietary and sole source products High free cash flow Pro Forma Revenues Proprietary Pro Forma EBITDA (Excluding Ground Revenues As Defined Transportation) ⁽¹⁾ Def Aftm
Slide 6: 2012 Financial Performance by Market Channel – Pro Forma
2012 Financial Performance by Market Channel – Pro Forma Highlights⁽¹⁾ Market Review – Pro Forma Revenues⁽¹⁾ Commercial OEM Actual vs. Prior Year 2012 YTD includes one-time customer Fiscal 2012 payments Commercial OEM: 23% Commercial Aftermarket: Softening as year progressed Commercial Q4
Slide 7: Fiscal 2013 Outlook
Fiscal 2013 Outlook FY 2012 Pro Forma FY 2013 Sales Mix (1) Market Expected Growth⁽¹⁾ 32% Commercial OEM Up Low Single-Digit % 44% Commercial Aftermarket Up 5 - 10 % 24% Defense Modestly Down Assumptions Guidance Summary ($ in millions) Low High Worldwide RPM growth 4-5 % OEM production rate inc
Slide 8: Fourth Quarter 2012 Results
Fourth Quarter 2012 Results ($ in millions) Q4 FY12 Q4 FY11 Revenue $462.6 $343.0 34.9% Increase ● Organic sales growth 7% Gross Profit $256.8 $193.0 .8 Margin Point Decrease Margin % 55.5% 56.3% ● Dilutive acquisition mix of ≈ 2 margin points ● Unfavorable OEM vs. aftermarket product mix SG&A $54.3
Slide 9: Liquidity & Taxes
Liquidity & Taxes ($ in millions) Cash FY 9/30/2011 FY 9/30/2012 Net Cash Provided by Operating Activities $260.6 $413.9 Taxes Capital Expenditures ($18.0) ($25.2) FY12 Full Year ETR: 33.4% Free Cash Flow $242.6 $388.7 Cash on the Balance Sheet $376.2 $440.5 Liquidity EBITDA EBITDA Actual As Defin
Slide 10: Reconciliation of GAAP to Adjusted EPS
Reconciliation of GAAP to Adjusted EPS ($ in millions) Full Year Guidance Fiscal Year Ended Mid-Point September 30, September 30, September 30, 2012 2011 2013 Earnings per share from continuing operations $ 5.97 $ 2.80 $ 5.66 Adjustments to earnings per share: Refinancing costs - 0.90 - Dividend equ
Slide 11: Appendix
Appendix 10
Slide 12: Reconciliation of Net Income to EBITDA and EBITDA As Defined
Reconciliation of Net Income to EBITDA and EBITDA As Defined Thirte e n We e k Pe riods Ende d Fiscal Ye ars Ende d Se pte mbe r 30, Se pte mbe r 30, Se pte mbe r 30, Se pte mbe r 30, 2012 2011 2012 2011 Net income $ 87,866 $ 67,395 $ 324,969 $ 172,134 Less income from discontinued operations - 3,08
Slide 13: Reconciliation of Reported EPS to Adjusted EPS
Reconciliation of Reported EPS to Adjusted EPS Thirteen Week Periods Ended Fiscal Years Ended September 30, September 30, September 30, September 30, Reported Earnings Per Share 2012 2011 2012 2011 Net income from continuing operations $ 87,866 $ 64,313 $ 324,969 $ 152,225 Less: dividends paid on pa
Slide 14: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined
Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined Fiscal Years Ended September 30, September 30, 2012 2011 Net Cash Provided by Operating Activities $ 413,885 $ 260,386 Adjustments: Changes in assets and liabilities, net of effects from acquisitions of busin
Slide 15: FY 2012 Fourth Quarter Earnings Call
FY 2012 Fourth Quarter Earnings Call November 15, 2012