Slide 1: FY 2022 Q1 Earnings Call
FY 2022 Q1 Earnings Call February 8, 2022
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: 2022 Q1 Financial Performance by Markets – Pro Forma
2022 Q1 Financial Performance by Markets – Pro Forma Highlights Q1 Review – Pro Forma Revenues⁽¹⁾ Actual vs. 25% Biz Jet/Heli Prior Year Commercial OEM: Q1 Q1 ’22 Commercial Transport Revenue Up 9% 75% Com Q1 ’22 Business Jet/Helicopter Revenue Up 22% Transport Commercial OEM: Up 13% Q1 ’22 Bo
Slide 6: First Quarter 2022 Select Financial Results
First Quarter 2022 Select Financial Results ($ in millions, except per share amounts) Q1 FY Q1 FY 2022 2021 Revenue $1,194 $1,108 8% Increase Gross Profit $661 $541 • Favorable Aftermarket vs. OEM sales mix • Lower COVID‐19 restructuring costs 55.4% 48.8% 6.6% SG&A $170 $197 • Realization of COVID ‐
Slide 7: Fiscal 2022 Select Financial Assumptions
Fiscal 2022 Select Financial Assumptions Select Financial Assumptions for Fiscal 2022 Prior Assumptions (issued November 2021) Updated Assumptions Defense Revenue Growth LSD% Growth No change Full Year EBITDA Margin ≈ 47% Slightly North of 47% (Highly Dependent on Pace of Commercial (Highly Dependen
Slide 8: Capital Structure
Capital Structure Pro Forma Capital Structure ($ in millions) Actual 1/1/22 Rate Cash $4,813 $810mm revolver – L + 2.500% $350mm AR securitization facility 350 L + 1.200% First lien term loan E due 2025 2,171 L + 2.250% First lien term loan F due 2025 3,445 L + 2.250% First lien term loan G due 2024
Slide 9: Debt Maturity Profile
Debt Maturity Profile Debt Maturity Profile ($MM) $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2022 2023 2024 2025 2026 2027 2028 2029 Secured Term Loans Secured Notes Sr Sub Notes Note: $350M AR Securitization renews annually in July 8
Slide 10: Appendix: Reconciliation of Income from Continuing Operations to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Income from Continuing Operations to EBITDA and EBITDA As Defined ($ in millions) Thirteen Week Periods Ended January 1, 2022 January 2, 2021 Income from continuing operations $ 163 $ 50 Adjustments: Depreciation and amortization expense 65 58 Interest expense, net 264 26
Slide 11: 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 Reported Earnings (Loss) Per Share January 1, 2022 January 2, 2021 Income from continuing operations $ 163 $ 50 Less: Net income attributable to noncontrolling interests (1)
Slide 12: Appendix: Reconciliation of GAAP EPS to Adjusted EPS
Appendix: Reconciliation of GAAP EPS to Adjusted EPS Thirteen Week Periods Ended January 1, 2022 January 2, 2021 GAAP earnings (loss) per share from continuing operations $ 1.96 $ (0.42) Allocation of undistributed losses to participating securities ‐ 0.03 Adjustments to earnings per share: Dividend
Slide 13: Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined ($ in millions) Thirteen Week Periods Ended January 1, 2022 January 2, 2021 Net cash provided by operating activities $ 279 $ 274 Adjustments: Changes in assets and liabilities, net of effects from