Tat Technologies Ltd. · NASDAQ:TATT
Tat Technologies — Investor Presentation (May 2018)
35 slides from Tat Technologies's investor presentation, May 30, 2018
Slide 1: TAT Technologies Investors Presentation May 2018
AAT Technologies Investors Presentation May 2018
Slide 2: Looking Forward Statements
Looking Forward 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: TAT – Key Facts
TAT – Key Facts > 500 customers.LTA worth $220M 600 Employees 5 Production Sites 107 M$ Annual Turnover in 2017 7 Decades within the A&D Industry
Slide 4: TAT Technologies Group
TAT Technologies Group Established in 1969, TAT Technologies Group is a global provider of cutting edge aerospace commercial and defense OEM and MRO solutions. We partner with our customers to design, development, manufacture and service of the following:Aerospace thermal management solutionsEnviron
Slide 5: Products and services samples
TAT Technologies Products and services samples Oil Coolers Heat Exchangers Fuel submerged HX Electronic devices cooling system ECU APU Landing Gear Fuel System Accessories Blades Design, manufacturing and MRO services for Thermal Management solutions MRO services for Power and Actuation solutions
Slide 6: Global Presence
Global Presence Tulsa, Oklahoma________Thermal Management Greensboro, North Carolina________Power and Actuation APU, LG, MPG Rio, Brazil________Thermal Management Kiryat-Gat, Israel________Power and Actuation Engine Blades Gedera, Israel________Thermal Management Novosibirsk, Russia ________Thermal
Slide 7: Business Breakdown
Business Breakdown OEM Vs. MRO O* Geographical Distribution Europe 18% Commercial Vs. Defense Defense 26% Commercial
Slide 8: Top Management
Top Management Mr. Amos Malka Mr. Igal Zamir Mr. Ehud Ben Yair Chairman of the BoardIn position, since June 2016 President & CEOIn position, since April 2016 CFOIn position, since May 2018 Maj. Gen. (ret.) Former Head of the Israeli Defense Intelligence and Commander of the IDF Ground Forces Command
Slide 9: TAT Technologies - Investment Highlights
TAT Technologies - Investment Highlights Major disruption in the Industry with Key players re-defining their roles and shift in “Power Play” Paying dividends TAT is a Thermal Management Solutions Global Market Leader TAT has Wide Power & Actuations Components Repair Capabilities New Defined Strategy
Slide 10: 2017: Aerospace Market is Rapidly growing
2017: Aerospace Market is Rapidly growing Aircraft Deliveries Rate is at Peak.Backlog Represents +7 Years of Production. *As of Dec 2017**Source: Oliver Wyman Global Fleet & MRO Market Forecasts *AIRBUS: 718 A/C Deliveries; 1,109 New A/C Orders; 7,265 A/C on *BacklogBOEING: 763 A/C Deliveries; 912 N
Slide 11: Growth Expected to Continue: Global Fleet Forecast
Growth Expected to Continue Global Fleet Forecast 3.9% by 2020, additional 3.5% by 2025 2015-2025 Global Fleet Forecast – By Aircraft Class 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 23,927 29,003 34,408 2015 2015-2020CAGRS 2020 2020-2025CAGRS 2025 3.9% 3.5% Number of Aircraft *Source:
Slide 12: Growth Expected to Continue: MRO Market
Growth Expected to Continue MRO Market Growth 4.4% by 2020, additional 3.8% by 2025 2015-2025 Global MRO Market Size Forecast – By MRO Segment $0 $20 $40 $60 $80 $100 $120 MRO Spend ($USB) $67.1 $83.2 $100.4 2015 2015-2020CAGRS 2020 2020-2025CAGRS 2025 4.4% 3.8% *Source: Oliver Wyman Global Fleet &
Slide 13: Significant Growth in APAC
Significant Growth in APAC Source: Boeing 2016 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 64% 1995 48% 37% North America Europe Asia(excl. China) China Middle East Other 2015 2035 Passenger traffic (RPKs) billions APAC Aircraft Fleet is expected to double in the next 20 Years AIRBU
Slide 14: Significant New Aircraft Growth 2016 - 2035
Significant New Aircraft Growth 2016 - 2035 39,620 New airplanes2016 to 2035 Region New Airplanes Asia North America Europe Middle East Latin America Africa CIS Total 15,130 8,330 7,570 3,310 2,960 1,150 1,170 39,620 Source: Boeing 2016
Slide 15: The Potential
The Potential — ? Y
Slide 16: Major Changes In The Market
Major Changes In The Market Demand for New Technologies.Shorter Design Cycle Market Pressure to Reduce Cost of Ownership Massive Competition in the Engines Field.Fuel Efficiency Vs. Reliability Owner Operators Require Local Support Globally Stretched Supply Chain. Dependency on Systems Suppliers
Slide 17: Aircraft Manufacturers Targeting MRO $
Aircraft Manufacturers Targeting MRO $ Aircraft Manufacturers Targeting Aftermarket MRO Revenues Separation of Large Systems to Components The Current Balance Aircraft manufacturers- System’s OEM- Maintenance Will Change Life Extension Programs for Military Platforms
Slide 18: We Keep Our Customers Flying
We Keep Our Customers Flying 5 largest customers, present 19.7% revenue Working with More than 50 major Airlines More than 300 Customers
Slide 19: Thermal Management
Thermal Management Design, manufacturing and MRO services for Thermal Management solutions Cold Plates Oil Coolers Heat Exchangers Fuel submerged HX Electronic devices cooling system ECU 52% of 2017 revenue, 13% EBITDA
Slide 20: Thermal Management Solutions
Thermal Management Solutions Hydraulic System:Fuel Submerged Oil CoolersFuel-cooled Oil Coolers APU:Air-cooled Oil CoolersConformal Air-cooled Oil Coolers Environmental Control System:PrecoolersCondensersReheaters Galley:Air Chillers Power Electronics:Cold Plates (PAO)Liquid-Cooled Heat Exchangers P
Slide 21: Thermal Management Differentiation
Thermal Management Differentiation Global Market Leader & Local Presence at Key Markets Technology Leadership & Innovation Short Turn Around Time Cost Effective & Competitive Offering Deep Market Expertise Strategic Partnership 7 Decades of Experience, Combined with flexibility according to customer
Slide 22: Power and Actuation
Design, manufacturing and MRO services for Power and Actuation solutions Power and Actuation ECS Accessories Cooling Systems Accessories Pumps APU Landing Gear Fuel System Accessories Blades 48% of 2017 revenue, 4.4% EBITDA
Slide 23: Power & Actuation Differentiation
Power & Actuation Differentiation Working with More than 150 Platforms Highly Experienced Team of Professionals 24/7 Incomparable Turn-Around-Time Reputable Customer Base
Slide 24: New Strategy & Growth Drivers
New Strategy & Growth Drivers OEMExpand existing relationships Creating long-term partnerships with leading customers Transition from 4 companies operating independently, to one global operation company Global Service Centers Network, Close to Customers Expansion Business Model M&A Global Synergies,
Slide 25: Finance
FINANCE
Slide 26: Consolidated Financial Results - Annual
Consolidated Financial Results - Annual
Slide 27: Thermal Management 2015 - 2017
Thermal Management 2015 - 2017 $ Thousands Revenue 44,736 47,230 55,108 Gross Margin 27.4% 26.1% 23.9% Operating Income (loss) 5,267 4,496 5,075 EBITDA 6,906 6,513 7,145 EBITDA % 15.4% 13.8% 13.0% 2015 2016 2017 Although the Company operates four business segments, as currently set forth in the Comp
Slide 28: Power & Actuation 2015 - 2017
Power & Actuation 2015 - 2017 * 2015 – Excluding Turbochrome acquisition results (OPEX) $ Thousands Revenue 40,871 48,559 51,419 Gross Margin 3.5% 13.8% 14.1% Operating Income (loss) (3,863) (348) 205 EBITDA (3,350) 1,331 2,252 EBITDA % (8.2%) 2.7% 4.4% *2015 2016 2017 Although the Company operates
Slide 29: Strong Balance Sheet
Strong Balance Sheet Cash Flow Highlights:$6M dividend distributed in 2016 & 2017 ($7M gross).$5M investments in new facility and new company. $ Thousands Cash and Deposits 17,984 Working Capital 67,042 Total Assets 111,995 Debt 0 Equity 88,574 2017
Slide 30: Potential Growth - Highlights
Potential Growth - Highlights Major Growth in the Aviation Global Market TAT is a Leading Player in the Global Thermal Management Market TAT is Moving Towards Organizational Improvements and Changes New Management and New Strategy New Opportunities
Slide 31: Thank You
Thank You
Slide 32: Appendix
Appendix
Slide 33: Commercial Platforms
Commercial Platforms AIRBUS Bombardier BOEING CESSNA ATR PILATUS SUKHOI EMBRAER A300A310A319A320A321A330 737747767777 CRJ CJ-3CJ-4Citation-XCaravan 4272 PC-12 Super Jet ERJ145ERJ170ERJ190
Slide 34: Defense Platforms
Defense Platforms BOEING LOCKHEED MARTIN SIKORSKY IRON DOME F-15V22F-18AH-64CH-47 F-16 CH-53UH-60
Slide 35: TAT Companies Presidents
TAT Companies Presidents Dr. Yair Raz Mr. Jeff Lambert Mr. Nimrod Ruby Mr. Mickey Chen TAT LimcoPresident TAT PiedmontPresident TAT GederaPresident TAT TurbochromePresident Dr. Raz has been the President of Limco at TAT Technologies group since November 2012.Dr. Raz has over 35 years of experience i