Tat Technologies Ltd. · NASDAQ:TATT
Tat Technologies — Investor Presentation (December 2023)
28 slides from Tat Technologies's investor presentation, Dec 1, 2023
Slide 1: Investor's Presentation November 2023
I N V E S TO R’ S P R E S E N TAT I O N November 2023
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: YTD Results key indicators
YTD Results key indicators In K USD Q1-3\22 Actual Q1-3\23 Actual Variance Revenues 61,707 81,957 20,250 , 33% Gross profits 10,512 15,499 4,987, 47% Gross Margin 17% 19% Adj. EBITDA 1,952 7,747 5,795 , 297% EBITDA Margin 3.2% 9.5% Net Income (2,047) 4,283 6,330 Improvement in all parameters compare
Slide 4: Q3 2023 Results key indicators
Q3 2023 Results key indicators In K USD Q3\22 Actual Q3\23 Actual Variance Revenues 20,977 29,935 8,958 , 43% Gross profits 3,434 5,814 2,380 , 70% Gross Margin 16.4% 19.4% Adj. EBITDA 559 3,009 2,450 , 438% EBITDA Margin 2.7% 10% Net Income 2,151 (355) 2,506 Improvement in all parameters compared t
Slide 5: Strong positive trend in performance since Q4 2022
Strong positive trend in performance since Q4 2022 5 INVESTOR'S PRESENTATION - NOVEMBER 2023 Investor Presentation- November 2023
Slide 6: TAT Unique Proposition
TAT UNIQUE PROPOSITION EXPERIENCE AND EXPERTISE Over 7 decades in defense and commercial aviation THERMAL SOLUTION Over 60 years of design, production and repair of heat transfer solutions OVER $400 MILLION Backlog and LTA 3 OPERATIONAL SITES Greensboro NC, Tulsa OK, Kiryat Gat Israel DECADES OF EXC
Slide 7: Key Strategic Product Segments
KEY STRATEGIC PRODUCT SEGMENTS THERMAL SYSTEMS & COMPONENTS OEM AND MRO APU-HONEYWELL AUTHORIZED MRO LANDING GEARS- LIEBHERR & SAFRAN AUTHORIZED MRO 7 INVESTOR'S PRESENTATION - NOVEMBER 2023
Slide 8: Top Management
TOP MANAGEMENT Previous Positions: 2007-2015 – Chairman of the Board of Logic Industries Ltd. 2007-2010 – Chairman of the Board of Plasan Sasa Ltd. 2002-2005 – CEO at Elul Technologies Ltd. Previous Positions: 2009-2013 – President at Mapco Express (subsidiary of Delek US Holdings Inc). 2006-2009 –
Slide 9: Global Presence
GLOBAL PRESENCE TULSA, OKLAHOMA OEM & MRO THERMAL MANAGEMENT SOLUTIONS GREENSBORO, NORTH CAROLINA MRO POWER & ACTUATION SOLUTIONS CHARLOT TE, NORTH CAROLINA GROUP OFFICE KIRYAT GAT, ISRAEL OEM & MRO THERMAL MANAGEMENT AND POWER & ACTUATION SOLUTIONS SCHENZHEN CHINA THERMAL COMPONENTS MRO – IN PARTNE
Slide 10: Strategic Shift – Key Elements 2020–2023
STRATEGIC SHIFT – KEY ELEMENTS 2020 – 2023 FROM 4 INDEPENDENT COMPANIES TO ONE GROUP WITH 3 OPERATIONAL SITES centralized S&M, R&D and finance team. Cost savings of $1.5 million a year STRONG MRO PARTNERSHIP WITH HONEYWELL for certifications and part costs on the new APU models (LTAs over $90M) ESTA
Slide 11: Strategic Shifts Timeline
STRATEGIC SHIFTS TIMELINE- STARTED IN 2020 2020 2021 2022 2023 ORGANIZATION STRUCTURE CHANGE LEASING AND TRADING BUSINESS UNIT INITIATION 3 HONEYWELL APU STRATEGIC AGREEMENTS APU 331-500 LICENSE AGREEMENT APU 131 LICENSE AGREEMENT 131 A/ B APU READINESS 11 INVESTOR'S PRESENTATION - NOVEMBER 2023 $50
Slide 12: Honeywell Strategic Agreements During 2020-21
HONEYWELL STRATEGIC AGREEMENTS DURING 2020-21 18 ENGINES PURCHASED AS HONEYWELL EXCLUSIVE ENGINE BANK FOR APU B777. CURRENTLY 1,600 AIRCRAFTS AND PRODUCTION IS ONGOING. 10 years agreement Annual estimated lease income of $4.5M MRO FOR B777 APU CURRENTLY 1,600 AIRCRAFT AND PRODUCTION IS ONGOING 10 ye
Slide 13: Honeywell Strategic Deals Potential
HONEYWELL STRATEGIC DEALS POTENTIAL CURRENT ENGINE PLATFORM YEARLY TAT’S CURRENT MARKET SHARE POTENTIAL MARKET SIZE MARKET SHARE FOR THE COMING YEARS 331-20X B 767, B 757, C 17 $85M 29% 53% 331-500 B 777 $145M NONE 10% 131 B 737, A 319-21 $1,000M NONE 5% 13 INVESTOR'S PRESENTATION - NOVEMBER 2023
Slide 14: Revenue and EBITDA Growth Engines for 2023-4
REVENUE AND EBITDA GROWTH ENGINES FOR 2023-4 Strong demand for products and services as the industry is ramping out of COVID- strong backlog coverage for 2023 Strong growth in APU331-200 for 2023 and 2024 - 2 major deals in the funnel Growth from APU131 and 331-500 with improved profitability as we
Slide 15: New Technologies: Long-Term Growth Potential
NEW TECHNOLOGIES: LONG-TERM GROWTH POTENTIAL THERMAL SYSTEMS FOR ELECTRICAL AIRCRAFT AND AUTONOMOUS AIRCRAFTS ADDITIVE MANUFACTURING AND 3D PRINTING CONFORMAL HEAT EXCHANGERS AND OIL COOLERS FOR ENGINES 15 INVESTOR'S PRESENTATION - NOVEMBER 2023
Slide 16: Latest Investor News
LATEST INVESTOR NEWS 16 INVESTOR'S PRESENTATION - NOVEMBER 2023 TAT Signs a new $50M contract with a major airline June 9, 2022 TAT signs a contract expansion valued $6 million a year with Collins Aerospace October 18, 2022 TAT signs a five years contract extension valued $50M with a major airline F
Slide 17: Financials
F INANCIALS 17 INVESTOR'S PRESENTATION - NOVEMBER 2023
Slide 18: Business Breakdown
BUSINESS BREAKDOWN GEOGRAPHICAL DISTRIBUTION COMMERCIAL VS. DEFENSE OEM VS. MRO 18 INVESTOR'S PRESENTATION - NOVEMBER 2023
Slide 19: Product segment growth works according to our strategy
Product segment Product segment growth works according to our strategy $ Thousands Actual Actual G% September YTD 2022 September YTD 2023 Heat Exchangers OEM& MRO 24,103 31,941 33% APU MRO 12,272 22,292 82% Landing Gears MRO 5,270 6,211 18% Trading & Leasing 4,978 6,145 23% Accessories OEM 4,719 5,4
Slide 20: Back-log LTA & Orders
Back-log Investor Presentation- November 2023 LTA & ORDERS 2016 $170M 2017 $222M 2018 $214M 2019 $185M 2020 $185M 2021 $257M 2022 $400M 2023 $411M
Slide 21: Share price & multiples
Share price & multiples While share price react to the EBITDA, the multiples are still very low compared to the industry (12-15) Investor Presentation- November 2023
Slide 22: Appendices: Product Lines and Services
APPENDICES PRODUCT L INES AND SERVICES 22 INVESTOR'S PRESENTATION - NOVEMBER 2023
Slide 23: We Keep Our Customers Flying
WE KEEP OUR CUSTOMERS FLYING 23 INVESTOR'S PRESENTATION - NOVEMBER 2023 MORE THAN 300 CUSTOMERS WORKING WITH MORE THAN 50 MAJOR AIRLINES 5 LARGEST CUSTOMERS, PRESENT 27% OF REVENUE
Slide 24: We Keep Our Customers Flying
WE KEEP OUR CUSTOMERS FLYING 24 INVESTOR'S PRESENTATION - NOVEMBER 2023
Slide 25: Thermal Management
THERMAL MANAGEMENT HEAT EXCHANGERS ELECTRONIC DEVICES COOLING SYSTEM COLD PLATES FUEL SUBMERGED HX OIL COOLERS ECU DESIGN, MANUFACTURE (OEM) AND MRO SERVICES FOR THERMAL MANAGEMENT SOLUTIONS 25 INVESTOR'S PRESENTATION - NOVEMBER 2023
Slide 26: Thermal Management Solutions
THERMAL MANAGEMENT SOLUTIONS POWER ELECTRONICS: COLD PLATES (PAO) LIQUID- COOLED HEAT EXCHANGERS POWER PLANT: AIR- COOLED OIL COOLERS FUEL- OIL HEAT EXCHANGERS CONFORMAL AIR- COOLED OIL COOLERS FUEL INERTING SYSTEM: AIR- COOLED AIR COOLERS APU: AIR- COOLED OIL COOLERS CONFORMAL AIR- COOLED OIL COOLE
Slide 27: Power and Actuation
POWER AND ACTUATION APU ECS ACCESSORIES LANDING GEARS BLADES FUEL SYSTEM ACCESSORIES COOLING SYSTEMS ACCESSORIES PUMPS DESIGN, MANUFACTURING AND MRO SERVICES FOR POWER AND ACTUATION SOLUTIONS 27 INVESTOR'S PRESENTATION - NOVEMBER 2023
Slide 28: Thank You
T H A N K YO U 28 INVESTOR'S PRESENTATION - NOVEMBER 2023
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