Slide 1: TAT Technologies Corporate Presentation
TAT Technologies Corporate Presentation April 2016
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
6 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 Apr 2016 § Prior experience: § President - Mapco Express
Slide 6: Aviation Industry - Market Trends
Aviation Industry - Market Trends 6
Slide 7: Target Markets: Heat management components
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: Heat management systems
Target Markets 9 8 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: Fuel flow accessories
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: Maintenance, repair and overhaul
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 (US $ Millions)
US $ Millions 85.6 80.7 : | 2013 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 2012 2014 2015
Slide 21: Geographical Distribution Defense/Commercial
Geographical Distribution Defense/Commercial [hs Commercial Bh Asia-Pacific 3% MRO/OEM USA Asia-Pacific wEurope wlsracl wOther acommercial Defense MAT §MRO wOEM
Slide 22: Financial Results - Annual
22 $ Millions 2012 2013 2014 2015 Revenue 77.9 79.6 80.7 85.6 Gross Profit 18.5 17.8 16.2 13.7 Gross Margin 23.7% 22.4% 20.1 % 16.0% Operating Income 5.4 5.3 3.8 5.6 Operating Margin 6.9% 6.7% 4.7% 6.5% Net Income (loss) -1.7 2.8 1.4 5.8 EBITDA 7.3 7.2 5.9 3.6 EBITDA % 9.4% 9.0% 7.3% 4.2% Financial
Slide 23: Financial Results - Quarterly
23 Financial Results - Quarterly $ Millions Q1’14 Q2’14 Q3’14 Q4’14 Q1’15 Q2’15 Q3’15 Q4’15 Revenue 18.4 20.6 20.3 21.4 20.5 21.5 21.9 21.7 Gross Profit 3.4 3.9 3.7 5.2 3.8 4.2 3.4 2.3 Gross Margin 18.5% 18.9% 18.2% 24.3% 18.5% 19.5% 15.5% 10.6% Operating Income 0.4 0.7 0.6 2.2 1.1 1.1 0.5 2.9 Opera
Slide 24: Strong Balance Sheet
24 Strong Balance Sheet $ Millions 2013 2014 2015 Cash And Deposits 29.9 28.0 26.8 Working Capital 73.8 70.8 70.8 Total Assets 108.9 99.2 109.6 Debt 0.9 0.0 0.0 Equity 85.6 85.5 91.4
Slide 25: Thank You
THANK YOU. AT Technologies