Taylor Devices, Inc. · NASDAQ:TAYD
Taylor Devices — Shareholder Meeting (October 2023)
44 slides from Taylor Devices's shareholder meeting presentation, Oct 20, 2023
Slide 1: Welcome to Taylor Devices, Inc. Annual Shareholders Meeting 2023
Welcome to Taylor Devices, Inc. Annual Shareholders Meeting 2023
Slide 2: Cautionary Statement
Cautionary Statement This presentation includes “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the Safe Harbor Provision and are including this statement for the purpose of such Safe
Slide 3: FY 2023 Overview
FY 2023 Overview • CEO report – Tim Sopko • President report – Alan Klembczyk • Operations report – Todd Avery • CFO report – Paul Heary
Slide 4: Shareholders Meeting - Tim Sopko, CEO
Taylor Devices, Inc. Shareholders Meeting Tim Sopko Chief Executive Officer October 20 2023
Slide 5: FY 2023 Highlights
FY 2023 Highlights An exceptionally good/record year for Taylor Devices! • New record high full-year Bookings of $49.1M up from $32.5M last year (prior record was $35M in FY21) with the average over the past eight fiscal years of $29M. • New record high full-year Sales of $40.2M up from $30.9M last
Slide 6: FY 2023 Highlights
FY 2023 Highlights An exceptionally good/record year for Taylor Devices! • New record high full-year Net Income of $6.3M/15.6% of sales (prior record was $4.2M/11.8% of sales in FY16) with the average over the past eight fiscal years at $2.3M/8% of sales. • Customer/market diversity continued with 6
Slide 7: FY 2023 Highlights
FY 2023 Highlights An exceptionally good/record year for Taylor Devices! • Robust R&D investment of $1.1M (vs. $1.0M last year and $0.9M the year prior) along with CapEx of $3.4M (vs. $1.4M last year and $1.6M the year prior) continue to drive and support our growth strategies). • Customer funded de
Slide 8: Our Strengths
Our Strengths Continue to Positively Differentiate Us • Elegantly Innovative Custom Engineered Solutions that are critical to preserving structures/platforms, missions and lives. • Diverse portfolio; both Markets/Customers (Structural/Industrial and Aerospace/Defense) as well as Regional/Geographic
Slide 9: FY 2024 Priorities and Outlook
FY 2024 Priorities and Outlook Supporting our Near-Term, Mid & Long-Range Goals • Our priorities for FY24 are: - People - develop and execute Strategic Workforce Planning for all functions to support business growth - Growth Campaigns - execute the sales and product realization of key campaign progr
Slide 10: Thank You!
Thank You! Taylor Devices, Inc. 2023 Shareholders Meeting October 20, 2023
Slide 11: Shareholders' Meeting - Alan Klembczyk, President
Taylor Devices, Inc. Shareholders’ Meeting Alan Klembczyk President October 20 2023
Slide 12: The (Record) Year in Review
The (Record) Year in Review 2023 • Record sales of $40.2M - up 30% from 2022. • Record net income of $6.3M – up 186% from $2.2M last year. • $32.5M record backlog on May 31, 2023 – up 37% from $23.7M on May 31, 2022. • Record bookings of $49.1M – up 51% from $32.5M last year. • Continuous Improvemen
Slide 13: Broken Down by Product Group
Broken Down by Product Group… Structural Industrial Aero/Defense
Slide 14: Structural Products
Structural Products • Structural Products account for 51% of revenue for FY23. • We received official ICC approval on the Taylor Damped Moment Frame as described at last year’s AGM and a May 2023 Press Release. • We continue to build the technical sales team to promote planned growth. We now have a
Slide 15: Industrial Products
Industrial Products • Industrial Products account for 10% of revenue for FY23. • Record sales of $4.0M, up 85% from $2.2M in FY 22. • Proposal activity remains strong with demand for standard and customized products.
Slide 16: Aerospace and Defense Markets
Aerospace and Defense Markets • Sales of $15.6M (39% of total) for the FY. • Bid & Proposal activity remains high. • The future looks bright. • Healthy R&D expenditure (some customer-funded) for new products and for new programs. • On-going production for VLS, Helicopter programs, Landing Gear for v
Slide 17: Some New & Continuing Company Initiatives
Some New & Continuing Company Initiatives • Continuing our 5-Yr. planning with detail • IRAD and CapEx investments aligned in and using that to drive current FY Plan support of Campaign & Capture Plans. and supporting strategies and tactics • Business Development and Program across the business. Man
Slide 18: A Few Project Examples
A Few Project Examples…
Slide 19: Predator Drone
Predator Drone • Taylor Devices supplies the Main and Nose MQ-9 Reaper Landing Gear Shock Struts. • In production since approximately 2007, totaling more than 2500 units delivered. • Unique Taylor Devices’ design provides virtually maintenance-free configuration. • The success of this product and pr
Slide 20: 8 Willis Street
8 Willis Street Wellington, New Zealand • Originally an 8-story building with a seismic rating of only 40% of National Building Standard, now at 13 stories with a seismic rating of 130% with TDI Seismic Dampers. • TDI Seismic Dampers sized to generate approximately 900,000 lbs of output force each d
Slide 21: Thank You!
Thank You! Taylor Devices, Inc. 2023 Shareholders Meeting October 20, 2023
Slide 22: Shareholder's Meeting - Todd Avery, VP Operations
Taylor Devices, Inc. Todd Avery Vice President, Operations Shareholder’s Meeting October 2023
Slide 23: Overview
Overview FY2023 • Results through Continuous Improvement • Goals for FY 2024 Operating System Performance System People System
Slide 24: FY2023 Results
FY2023 Results FY 2023 Goals Area KPI Target Result Comment On Time Delivery (4th 92% 94% 89% Full Year Qtr.) Customer Past Due Lines 5 9 47% improvement over last year People Turnover 12% 12% 25% improvement over last year Supply Chain On Time Up vs. prior 15 month trend of 85% 87% Delivery 75% Sup
Slide 25: FY 2023 – Trends
Inventory Value and Turns 14000 3.5 12000 3 FY 2023 – Trends 10000 2.5 8000 2 6000 1.5 4000 1 2000 0.5 0 0 2018 2019 2020 2021 2022 2023 Inventory Turns Supplier On Time % Orders Shipped On Time - FY 100 90 100 80 90 70 80 60 70 50 Feb Aug Dec Feb Aug Jan Mar Apr May Jan Sep Nov Mar Apr May Sep Jun
Slide 26: Continuous Improvement
Continuous Improvement 25% productivity improvement (hrs/unit) Structural Sub Assembly Cell Structural Final Assembly Cell
Slide 27: Continuous Improvement
Continuous Improvement • Cylinder and Head Cells fully operational achieving one Structural Damper/hr. • Implemented 100+ machining set up/run time/packaging improvements • Commissioned Super Finishing Machine achieving a 50% reduction in process time • Multiple Job Safety Analyses resulted in ergon
Slide 28: FY 2024 Improvement Priorities
FY 2024 Improvement Priorities Business Capture Production Control Supply Chain Development Daily Daily Kitting Lg/Sm Assembly Cell(s) Bolt Receiving Package Ship Receiving Machine Island Bolt Shop 2XDaily Kitting Structural Assembly People Cell(s) (SWP) Productivity & System
Slide 29: FY2024 Goals
FY2024 Goals • On Time Delivery Improvement >= 93% (vs. 89% in FY2023) • Throughput Improvement focused on Aerospace Value Stream • Supply Chain (Delivery/Quality/Leadtime) Improvements • Engaged Workforce through Lean, Strategy Deployment, and Strategic Workforce Planning
Slide 30: Shareholders Meeting - Paul Heary, CFO Financial Report
Taylor Devices, Inc. Shareholders Meeting Paul Heary Chief Financial Officer Financial Report October 20 2023
Slide 31: Company Stats
Incorporated: 1955 NASDAQ: TAYD IPO: 1960 Company Market capitalization: $77 million Stats Recent price: $21.90 52-week range: $10.50 - $26.40 Common shares outstanding: 3.5 million Average daily volume (3 months): 10,900 Fiscal year end: May 31 Number of employees: 129
Slide 32: Sales
Sales Sales (U.S. $000's) $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- $33,619 FY'19 FY'21 FY'22 $40,199 ANtaylorievices inc.
Slide 33: Sales by Customer Type
Sales Sales by Customer Type $45,000 $40,000 $35,000 $30,000 $25,000 a 8 8 $20,000 4 > = $15,000 $10,000 $5,000 * $ | | 2019 2020 2022 2023 ® Structural $20,169 $15,622 $16,267 $20,642 ™ Aerospace / Defense $11,383 $10,771 $12,441 $15,569 ‘= Industrial $2,067 $1,989 $2,159 $3,988 EZ ANtaylorievices
Slide 34: Structural / Industrial Sales
Sales Structural / Industrial Sales
Slide 35: Aero / Defense Sales
Sales Aero / Defense Sales Sales ($000's) 50% x FY19 FY20 = Aero/Def Sales x Se FY22 -e-Aero/Def % of Total FY23 45% 40% 35% Percent of Total Sales 30% 25% Ataylorievices inc.
Slide 36: Sales by Region
Sales Sales by Region (U.S. $000's) $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 * 2020 2021 2022 2023 $23,780 $15,252 $23,373 $32,437 $3,005 $4,555 $4,320 $4,417 $1,597 $2,703 $3,174 $3,345 ANtaylorievices inc.
Slide 37: Sales & Gross Profit
Sales Sales & Gross Profit Note: Cost of Sales for all years excludes R&D expense
Slide 38: Research and Development Expense
R&D Research and Development Expense
Slide 39: General and Administrative Expenses
G&A General and Administrative Expenses
Slide 40: Operating Income
O.I. Operating Income (U.S. $000's) 20% $8,000 $6,000 $4,000 $(2,000) $(4,000) 17% 18% 12% % oe ' o% 10% Zz 3 < 5% 2 5 — = % § 5% -10% 10% -15% FY49 FY'20 FY21 FY'22 FY'23 ‘<= Operating income = O11. % of Sales Ez Ataylorievices inc.
Slide 41: Net Income and Earnings per Share
$1.79 N.I. (U.S. $000's) Earnings per Share Net Income FY'19 FY'20 FY'21 FY'22 FY'23 Ataylorievices ine.
Slide 42: Backlog
$35 $30 Backlog $25 Millions $20 $15 Sales Order 0 Backlog $s $0 May 19 May 20 May 21 May 22 May 23 ui Aerospace / Defense Structural m™ Industrial Ataylorievices inc.
Slide 43: Select Financial Data
2019 2020 2021 2022 2023 Total Assets $ 41,197 $ 45,076 $ 45,932 $ 49,219 $ 57,881 Return on Assets 6.3% 7.0% 2.3% 4.7% 11.7% Select Shareholders' Equity $ 36,319 $ 39,538 $ 40,798 $ 43,255 $ 50,093 Financial Return on Equity 7.3% 8.0% 2.6% 5.3% 13.5% Data Capital Expenditures $ 473 $ 1,231 $ 1,622
Slide 44: Thank You!
Thank You! Taylor Devices, Inc. 2023 Shareholders Meeting October 20, 2023