Slide 1: FY 2024 Q2 Earnings Call
FY 2024 Q2 Earnings Call May 7, 2024
Slide 2: Agenda
Agenda TransDigm Overview, Highlights and Outlook Kevin Stein President and CEO Market Review Mike Lisman Co‐COO Operating Performance and Financial Results Sarah Wynne CFO Q&A 1
Slide 3: Forward Looking Statements & Special Notice Regarding Pro Forma and Non-GAAP Information
Forward Looking Statements & Special Notice Regarding Pro Forma and Non‐GAAP Information 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 futur
Slide 4: TransDigm Overview
TransDigm Overview Distinguishing Characteristics Highly engineered aerospace components Significant aftermarket content Proprietary products High free cash flow Proprietary Revenues (1) Pro Forma Revenues (1) Pro Forma EBITDA As Defined (1) Non‐ Comm OEM Proprietary 27% OEM Defense 38% Prop
Slide 5: 2024 Q2 Financial Performance by Markets – Pro Forma
2024 Q2 Financial Performance by Markets – Pro Forma Highlights Q2 Review – Pro Forma Revenues⁽¹⁾ 30% Biz Commercial OEM: Jet/Heli Actual vs. Prior Year Q2 ’24 Commercial Transport Revenue Up 25% Q2 YTD 70% Com Q2 ’24 Business Jet/Helicopter Revenue Up 15% Transport Strong Bookings Continue to
Slide 6: Second Quarter 2024 Select Financial Results
Second Quarter 2024 Select Financial Results ($ in millions, except per share amounts) Q2 FY Q2 FY 2024 2023 Revenue $1,919 $1,592 21% Increase Gross Profit $1,152 $929 • Application of our value‐driven operating strategy 60.0% 58.4% 1.6% • Fixed overhead spread over higher production volumes SG&A $
Slide 7: Fiscal 2024 Outlook
Fiscal 2024 Outlook Market Growth Assumptions FY 2023 Pro Forma Sales Mix (1) Market FY 2024 Expected Growth 27% Commercial OEM Around 20% 35% Commercial Aftermarket Mid-Teens % Range 38% Defense Mid-Teens % Range Guidance Summary ($ in millions, except per share amounts) FY 24 Guidance FY 24 Guidan
Slide 8: Fiscal 2024 Select Financial Assumptions
Fiscal 2024 Select Financial Assumptions Select Financial Assumptions for Fiscal 2024 Prior Assumptions (Issued February 2024) Updated Assumptions Capital Expenditures $185 to $215 million No change Full Year Net Interest Expense ≈ $1.38 billion (includes $60 million of ≈ $1.32 billion (includes $11
Slide 9: Reconciliation of Fiscal 2024 Outlook
Reconciliation of Fiscal 2024 Outlook ($ in millions, except per share amounts) Guidance Midpoint Net income $ 1,647 Adjustments: Depreciation and amortization expense 294 Interest expense - net 1,320 Income tax provision 491 EBITDA 3,752 Adjustments: Acquisition transaction-related expenses and adj
Slide 10: Reconciliation of GAAP EPS to Adjusted EPS - Guidance
Reconciliation of GAAP EPS to Adjusted EPS ‐ Guidance Full Year Guidance Thirteen Week Periods Ended Twenty‐Six Week Periods Ended Mid‐Point March 30, 2024 April 1, 2023 March 30, 2024 April 1, 2023 September 30, 2024 GAAP earnings per share from continuing operations $ 6.97 $ 5.32 $ 11.83 $ 8.65 $
Slide 11: Capital Structure
Capital Structure Pro Forma Capital Structure ($ in millions) Actual Pro forma (1) 3/30/24 Adj. 3/30/24 Rate Cash $4,288 – $4,288 (1) Restricted Cash 550 (550) – Total Cash $4,838 $4,288 $910mm revolver – – – L + 2.250% $450mm AR securitization facility 450 – 450 S + 1.600% First lien term loan H du
Slide 12: Interest Rate Sensitivity
Interest Rate Sensitivity • Interest rates on TDG’s $22Bn of gross Debt is ~ 75% hedged/fixed rate through fiscal year 2026 • Achieved via a combination of interest rate caps, swaps and collars • Significantly reduces near-term exposure to any variable rate increases $ in millions Current FY 24 Assu
Slide 13: Debt Maturity Profile
Debt Maturity Profile Debt Maturity Profile ($MM) $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Calendar Year 2024 2025 2026 2027 2028 2029 2030 2031 2032 Secured Term Loans Secured Notes Sr Sub Notes Note 1: $910M Revolver matures in February 2029 Note 2: $450M AR Securitization renews
Slide 14: Appendix: Reconciliation of Net Income to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Net Income to EBITDA and EBITDA As Defined ($ in millions) Thirteen Week Periods Ended Twenty‐Six Week Periods Ended March 30, 2024 April 1, 2023 March 30, 2024 April 1, 2023 Net Income $ 404 $ 304 $ 786 $ 533 Adjustments: Depreciation and amortization expense 74 65 143 1
Slide 15: Appendix: Reconciliation of Reported EPS to Adjusted EPS
Appendix: Reconciliation of Reported EPS to Adjusted EPS ($ in millions, except per share amounts) Thirteen Week Periods Ended Twenty‐Six Week Periods Ended Reported Earnings Per Share March 30, 2024 April 1, 2023 March 30, 2024 April 1, 2023 Net income $ 404 $ 304 $ 786 $ 533 Less: Net income attri
Slide 16: Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA
Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined ($ in millions) Twenty‐Six Week Periods Ended March 30, 2024 April 1, 2023 Net cash provided by operating activities $ 865 $ 507 Adjustments: Changes in assets and liabilities, net of effects from a