Slide 1: TAT Technologies Corporate Presentation
TAT Technologies Corporate Presentation November 2015
Slide 2: Forward Looking Statements
Forward Looking Statements 2 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 and services for the aerospace and defense industries. Target markets ü Design and Manufacturing (OEM) Heat management solutions: components and systems ü Maintenance, repair and overhaul (MRO) Heat m
Slide 4: TAT Group - Key Facts
Founded in 1969 Acquired Limco in 1993 Acquired Piedmont in 2005 Acquired Chromalloy Israel in 2015 More than 600 employees in 4 locations: Gadera and Kiryat Gat, Israel Tulsa, Oklahoma, USA Kernersville, North Carolina, USA NASDAQ and Tel Aviv stock exchange traded (Ticker: TATT) TAT Group - Key Fa
Slide 5: TAT Group - Senior Management
5 TAT Group -Senior Management Chairman of the Board CEO CFO § In position since August 2013 § Chairman of the Board of Tadir- Gan Precision Products, Raval ACS, Bagir Group, and Ginegar Plastic Industries Samuel Vlodinger § In position since January 2012 § Prior experience: § CEO-Piedmont; § CMO-Li
Slide 6: Aviation Industry - Market Trends
Aviation Industry - Market Trends 6
Slide 7: Target Markets
Target Markets 7 1. Design and manufacturing of heat management components ü Heat exchangers ü Cold plates ü Oil Coolers ü Fuel submerged HX
Slide 8: Target Markets
Target Markets 9 Design and manufacturing of heat management systems ü From components to system level ü PECS: power electronics cooling systems ü Air Conditioning Systems 2.
Slide 9: Target Markets
Target Markets 9 3. Design and manufacturing of fuel flow accessories ü Fuel valves ü Solenoid valves ü Fuel control valves ü Fuel pumps
Slide 10: Target Markets
Target Markets 10 4. Maintenance, repair and overhaul (MRO) ü Heat Exchangers ü APU ü Landing gears ü Jet engines blades
Slide 11: Commercial Platforms
Commercial Platforms Airbus Bombardier CRJ ATR Pilatus PC-12 Boeing 737, 747, 767, 777 Sukhoi Super Jet Cessna CJ-3, CJ-4, Citation-X, Caravan Embraer ERJ145, ERJ170, ERJ190 11
Slide 12: Defense Platforms
Defense Platforms Boeing F-15 Boeing v22 Boeing F-18 Boeing CH-47 Boeing AH-64 Iron Dome Sikorsky UH-60 Sikorsky CH-53 Lockheed Martin F-16 12
Slide 13: Component Locations
Hydraulic Systems • Fuel Submerged Oil Cooler • Air Cooled Oil Cooler Component Locations Power Electronics • Cold Plates (Weather Radars + Avionics+ Entertainment) • Heat Exchangers (Same) APU • Oil Cooler Engine • Oil Cooler Galley • Auxiliary HX • Chillers Air Systems • Pre-cooler (Bleed Air Syst
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 Certifications ü AS 9100 ü ISO 9001 ü Preferred Supplier for: Boeing, Lockheed Martin ü Aviation Authorities Certifications: FAA, EASA, DGAC, Thai, CAAV, NADCAP Authorized Repair Station - ü Honeywell
Slide 18: Growth Drivers
Growth Drivers ü Going upstream in the chain (from components to systems) ü Enter into new platforms - aviation and ground ü Maintenance, repair and overhaul (MRO) of new parts ü Organic growth and acquisitions ü Expand to new territories: Eastern Europe, Asia, UK etc
Slide 19: Finance
FINANCE ar A Tachnoloqies
Slide 20: Revenue ($ Millions)
USS Millions 90.0 80.7 79.6 80.0 ae 237 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0
Slide 21: Financial Results - Annual
23 $ Millions 2012 2013 2014 YTD Sep 30, 2015 Revenue 77.9 79.6 80.7 63.9 Gross Profit 18.5 17.8 16.2 11.4 Gross Margin 23.7% 22.4% 20.1 % 17.8% Operating Income (loss) 5.4 5.3 3.8 2.7 Operating Margin 6.9% 6.7% 4.7% 4.2% Net Income (loss) -1.7 2.8 1.4 2.8 EBITDA 7.3 7.2 5.9 4.6 EBITDA % 9.4% 9.0% 7
Slide 22: Financial Results - Quarterly
24 Financial Results - Quarterly $ Millions Q1’14 Q2’14 Q3’14 Q4’14 Q1’15 Q2’15 Q3’15 Revenue 18.4 20.6 20.3 21.4 20.5 21.5 21.9 Gross Profit 3.4 3.9 3.7 5.2 3.8 4.2 3.4 Gross Margin 18.5% 18.9% 18.2% 24.3% 18.5% 19.5% 15.5% Operating Income (loss) 0.4 0.7 0.6 2.2 1.1 1.1 0.5 Operating Margin 1.9% 3
Slide 23: Strong Balance Sheet
25 Strong Balance Sheet $ Millions 2013 2014 Q3’15 Cash And Deposits 29.9 28.0 28.9 Working Capital 73.8 71.8 76.9 Total Assets 108.9 101.5 105.0 Debt 0.9 0.0 0.0 Equity 85.6 85.5 88.4
Slide 24: Thank You
THANK YOU. AT Technologies