Tat Technologies Ltd. · NASDAQ:TATT
Tat Technologies — Q2 2024 Earnings Presentation
34 slides from Tat Technologies's earnings presentation, August 2024
Slide 1: Investor's Presentation
I N V E S TO R ’ S P R E S E N TAT I O N August 2024
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: Second Quarter 2024 Results key indicators
Second Quarter 2024 Results key indicators Improvement in all parameters compared to Q2-2023 INVESTOR'S PRESENTATION - Aug 2024
Slide 4: Upward Trend in Revenue and EBITDA Started in Q4/22
UPWARD TREND IN REVENUE AND EBIT DA STARTED IN Q4/22 INVESTOR'S PRESENTATION - Aug 2024 4
Slide 5: Revenues and Profit
Revenues and Profit TAT P&L (000'$) Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q2 YOY Revenues 26,804 29,935 31,836 34,088 36,525 36% Gross Profit 5,426 5,814 6,967 7,066 7,984 47% Operating Profit 1,532 1,759 1,835 2,208 2,734 78% Net Profit 1,475 2,151 387 2,110 2,617 77% EPS (diluted, $) 0.15 0.24 0.04 0.19 0
Slide 6: TAT Unique Proposition
TAT UNIQUE PROPOSITION EXPERIENCE THERMAL OV E R $400 AND EXPERTISE SOLUTION MILLION Over 7 decades in defense and Over 60 years of design, Backlog and LTA commercial aviation production and repair of heat transfer solutions DECADES OF OVER 300 3 OPERATIONAL EXCELLENCE CUSTOMERS SITES In MRO for Hon
Slide 7: Key Strategic Product Segments
KEY STRATEGIC PRODUCT SEGMENTS THERMAL SYSTEMS & APU-HONEYWELL LANDING GEARS- COMPONENTS OEM AUTHORI ZED MRO LIEBHERR & SAFRAN AND MRO AUTHORI ZED MRO INVESTOR'S PRESENTATION - Aug 2024 7
Slide 8: Top Management
TOP MANAGEMENT Amos Malka Mr. Igal Zamir Mr. Ehud Ben Yair Chairman of the Board President & CEO CFO In position since June 2016 In position since April 2016 In position since May 2018 Maj. Gen. (ret.) Former Head of the Israeli Defense Intelligence and Commander of the IDF Ground Forces Command. Re
Slide 9: Global Presence
GLOBAL PRESENCE GREENSBORO, NORTH CAROLINA MRO TULSA, OKLAHOMA KIRYAT GAT, ISRAEL POWER & ACTUATION SOLUTIONS OEM & MRO OEM & MRO C H A R LOT T E, N O RT H C A RO L I N A THERMAL MANAGEMENT THERMAL MANAGEMENT AND GROUP OFFICE SOLUTIONS POWER & ACTUATION SOLUTIONS SCHENZHEN CHINA THERMAL COMPONENTS M
Slide 10: Strategic Shift – Key Elements 2020 – 2024
STRATEGIC SHIFT – KEY ELEMENTS 2020 – 2024 STRONG MRO PARTNERSHIP WITH FROM 4 INDEPENDENT COMPANIES TO HONEYWELL ONE GROUP WITH 3 OPERATIONAL for certifications and part costs on the SITES new APU models (LTAs over $90M) centralized S&M, R&D and finance team. Cost savings of $1.5 million a year ESTA
Slide 11: Strategic Shift Timeline - Started in 2020
STRATEGICSHIF TSTIMELINE- STARTED IN 2020 2020 2021 2022 2023 2024 ORGANIZATION STRUCTURE CHANGE LEASING AND TRADING BUSINESS UNIT INITIATION PRIVATE JETS LANDING GEAR MRO 3 HONEYWELL APU STRATEGIC AGREEMENTS FIRST APU 331-20X APU 331-500 APU 131 FIRST 131 A/ B $50M $50M REVENUE LICENSE LICENSE LICE
Slide 12: Honeywell Strategic Agreements During 2020-21
HONEYWEL L STRATEGIC AGREEMENTS DURING 2020-21 18 ENGINES PURCHASED AS HONEYWELL MRO FOR B757/767,C17 APU EXCLUSIVE ENGINE BANK FOR APU B777. 1,500 AIRCRAFTS SIGNED CURRENTLY 1,700 AIRCRAFTS AND PRODUCTION SIGNED 10 years agreement 09/2020 IS ONGOING. 12/2020 Estimated annual market size of $85M 10
Slide 13: Honeywell Strategic Deals Potential
HONEYWELL STRATEGIC DEALS POTENTIAL CURRENT TAT’S MARKET SHARE ENGINE PLATFORM YEARLY CURRENT POTENTIAL MARKET SIZE MARKET SHARE FOR THE COMING YEARS 331-20X B767,B757, C17 $85M 29% 53% 331-500 B777 $290M NONE 10% 131 B737, A319-21 $2,200M NONE 5% INVESTOR'S PRESENTATION - Aug 2024 13
Slide 14: Revenue and EBITDA Growth Engines for 2024-2025
REVENU E AND EBIT DA GROWTH ENGINES FOR 2024-2025 Strong demand for products and services as the industry is SEVERAL STRONG ramping out of COVID- strong backlog coverage for 2024-2025 PILLARS Strong growth in APU331-200 for 2024 and 2025 14 WILL SUPPORT THE GROWTH IN Growth from APU131 and 331-500 w
Slide 15: New Technologies: Long-term Growth Potential
NEW TECHNOLOGIES: LONG-TERM GROWTH POTENTIAL T H E R M A L SYST E M S ADDITIVE CO N FO R M A L HEAT FO R E L EC T R I C A L M A N U FAC T U R I N G E XCH A N GE RS AND A I RC R A F T A N D AND 3D P R I N T I N G OIL COOLERS FOR AU TO N O M O US E N GI N ES A I RC R A F T S INVESTOR'S PRESENTATION -
Slide 16: Latest Investor News
LATEST INVESTOR NEWS TAT Signs a new $50M TAT signs a contract TAT signs a five years TAT received first TAT Signed a new $7.5M contract with a major expansion valued $6 contract extension APU331-500 order contract with a major airline million a year with valued $50M with a carrier June 9, 2022 Read
Slide 17: Financials
FI N A N C I A L S INVESTOR'S PRESENTATION - MARCH 17 2024
Slide 18: Second Quarter 2024 Results key indicators
Second Quarter 2024 Results key indicators Improvement in all parameters compared to Q2-2023 INVESTOR'S PRESENTATION - Aug 2024
Slide 19: Upward Trend in Revenue and EBITDA Started in Q4/22
UPWARD TREND IN REVENUE AND EBIT DA STARTED IN Q4/22 INVESTOR'S PRESENTATION - Aug 2024 19
Slide 20: Revenues by Product
Revenues by Product Revenues By Product (000' $) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 YOY Heat Exchange 10,287 12,480 13,311 14,197 15,813 54% APU 7,228 8,231 9,152 9,171 10,672 48% Trading & Leasing 2,564 1,770 2,237 2,901 1,958 -24% Accessories 1,890 1,686 1,440 2,870 2,642 40% Landing Gears
Slide 21: Upward Trending Revenue
UPWARD TRENDING REVENUE INVESTOR'S PRESENTATION - Aug 2024 21
Slide 22: Improve Profit and Margins
Improve Profit and Margins * Q4-22 include Grants INVESTOR'S PRESENTATION - Aug 2024 22
Slide 23: Investor's Presentation - Aug 2024
* Q4-22 include Grants INVESTOR'S PRESENTATION - Aug 2024 23
Slide 24: Investor's Presentation - Aug 2024
* Q4-22 include Grants INVESTOR'S PRESENTATION - Aug 2024 24
Slide 25: Back-log
Back-log During the 2nd quarter TAT received orders of over 38M$ INVESTOR'S PRESENTATION - Aug 2024
Slide 26: Business Breakdown Q2-2024
BUSINESS BREAKDOWN Q2-2024 26 INVESTOR'S PRESENTATION - Aug 2024
Slide 27: TAT Technologies (NASDAQ: TATT) Multiples
TAT Technologies ( N AS DAQ : TAT T ) Multiples TAT EV/EBITDA is below market average (12X) 27 INVESTOR'S PRESENTATION - Aug 2024
Slide 28: Appendices Product Lines and Services
A P P E N DI C E S PRODUCT LINES AND SERVICES INVESTOR'S PRESENTATION - MARCH 28 2024
Slide 29: We Keep Our Customers Flying
WE KEEP OUR CUSTOMERS FLYING MORE THAN 3 0 0 C U STO M E R S WO R K I N G W I T H M O R E T H A N 50 MAJOR AIRLINES 5 L A RG E ST C U STO M E R S , P R E S E N T 3 3 % O F R EV E N U E INVESTOR'S PRESENTATION - MARCH INVESTOR'S PRESENTATION - Aug 2024 29 2024
Slide 30: We Keep Our Customers Flying
WE KEEP OUR CUSTOMERS FLYING INVESTOR'S PRESENTATION - Aug 2024 30
Slide 31: Thermal Management
THERMAL MANAGEMENT DESIGN, MANUFAC TURE (OEM) AND HEAT E XC H A NG E RS C O L D P L AT ES OIL COOLERS MRO SERVICES FOR THERMAL MANAGEMENT SOLUTIONS E L EC T RO N I C D E V IC ES FUEL S U B M E RG E D HX EC U CO O L ING SYSTEM INVESTOR'S PRESENTATION - Aug 2024 31
Slide 32: Thermal Management Solutions
THERMAL MANAGEMENT SOLUTIONS ENVIRONMENTAL GALLEY: CONTROL SYSTEM: AIR CHILLERS PRECOOLERS APU: CO N D E N S E RS POWER E L EC TRO N IC S : A I R-CO O L E D REHEATERS COLD PLATES (PAO) OIL COOLERS L I Q U I D-CO O L E D H EAT CONFORMA L EXCHANGERS A I R-CO O L E D OIL COOLERS POWER PLANT: A I R-CO O
Slide 33: Power and Actuation
POWER AND ACTUATION DESIGN, MANUFACTURING AND MRO SERVICES FOR POWER AND ACTUATION SOLUTIONS APU L A ND ING G EA RS FUEL SYSTEM AC C ES S O R I ES ECS AC C ES S O R I ES BLADES CO O L ING SYSTEMS PUMPS AC C ES S O R I ES INVESTOR'S PRESENTATION - MARCH INVESTOR'S PRESENTATION - Aug 2024 33 2024
Slide 34: Thank You
T H A N K YO U INVESTOR'S PRESENTATION - MARCH 34 2024