Slide 1: FY 2021 Q4 Earnings Call
FY 2021 Q4 Earnings Call November 16, 2021
Slide 2: Agenda
Agenda TransDigm Overview, Highlights and Outlook Kevin Stein President and CEO Market Review Jorge L. Valladares III COO Operating Performance and Financial Results Mike Lisman 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 and sole source products High free cash flow Proprietary Revenues (1) Pro Forma Revenues (1) Pro Forma EBITDA As Defined (1) Non‐ Comm OEM Proprietary 25% OEM
Slide 5: 2021 Q4 Financial Performance by Markets – Pro Forma
2021 Q4 Financial Performance by Markets – Pro Forma Highlights Q4 Review – Pro Forma Revenues⁽¹⁾ 25% Biz Actual vs. Prior Year Jet/Heli Commercial OEM: Q4 YTD Q4 ’21 Commercial Transport Revenue Up 2% 75% Com Transport Commercial OEM: Up 1% Down 25% Q4 ’21 Business Jet/Helicopter Revenue Flat
Slide 6: Fourth Quarter 2021 Select Financial Results
Fourth Quarter 2021 Select Financial Results ($ in millions, except per share amounts) Q4 FY Q4 FY 2021 2020 Revenue $1,279 $1,173 9% Increase Gross Profit $725 $536 • Favorable Aftermarket vs. OEM sales mix • Lower COVID‐19 restructuring costs 56.7% 45.7% SG&A $154 $182 • Lower non‐cash stock compe
Slide 7: Full Year 2021 Select Financial Results
Full Year 2021 Select Financial Results ($ in millions, except per share amounts) FY 2021 FY 2020 Revenue $4,798 $5,103 ‐6% Decrease Gross Profit $2,513 $2,647 • Lower COVID‐19 restructuring costs 52.4% 51.9% SG&A $685 $727 • Higher non‐cash stock compensation expense • COVID‐19 cost mitigation effo
Slide 8: Fiscal 2022 Select Financial Assumptions
Fiscal 2022 Select Financial Assumptions Select Financial Assumptions for Fiscal 2022 Defense Revenue Growth LSD% Growth Full Year EBITDA Margin ≈ 47% (Highly Dependent on Pace of Commercial Aftermarket Recovery) Capital Expenditures $135 to $155 million Full Year Net Interest Expense ≈ $1.08 billio
Slide 9: Capital Structure
Capital Structure Pro Forma Capital Structure ($ in millions) Actual 9/30/21 Rate Cash $4,787 $760mm revolver $200 L + 2.500% $350mm AR securitization facility 350 L + 1.200% First lien term loan E due 2025 2,177 L + 2.250% First lien term loan F due 2025 3,454 L + 2.250% First lien term loan G due
Slide 10: Debt Maturity Profile
Debt Maturity Profile Debt Maturity Profile ($MM) $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2021 2022 2023 2024 2025 2026 2027 2028 2029 Secured Term Loans Secured Notes Sr Sub Notes Note: $350M AR Securitization renews annually in July 9
Slide 11: Appendix: Reconciliation of Income from Continuing Operations to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Income from Continuing Operations to EBITDA and EBITDA As Defined Thirteen Week Periods Ended Fiscal Years Ended ($ in millions) September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Income from continuing operations $ 209 $ 101 $ 681 $ 653 Adjustmen
Slide 12: 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 Fiscal Years Ended Reported Earnings Per Share September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Income from continuing operations $ 209 $ 101 $ 68
Slide 13: Appendix: Reconciliation of GAAP EPS to Adjusted EPS
Appendix: Reconciliation of GAAP EPS to Adjusted EPS Thirteen Week Periods Ended Fiscal Years Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 GAAP earnings per share from continuing operations $ 3.58 $ 1.76 $ 10.41 $ 8.14 Adjustments to earnings per share: Dividend
Slide 14: 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 Fiscal Years Ended ($ in millions) September 30, 2021 September 30, 2020 Net cash provided by operating activities $ 913 $ 1,213 Adjustments: Changes in assets and liabilities, net of effects from a