Teledyne Technologies Incorporated · NYSE:TDY
Teledyne Technologies — Investor Presentation (February 2021)
24 slides from Teledyne Technologies's investor presentation, February 2021
Slide 1: February 2021
February 2021 Na. TELEDYNE TECHNOLOGIES Everywhereyoulook’
Slide 2: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding Forward Looking Statements Teledyne’s investor presentation contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, with respect to management’s beliefs about the financial condition, results of operations and businesses
Slide 3: Enabling Technologies to Sense, Transmit and Analyze Information
Enabling Technologies to Sense, Transmit and Analyze Information NN 3
Slide 4: Teledyne
Teledyne High technology industrial company Broad, balanced portfolio of highly engineered products Proven track record; hands-on management; consistent, predictable performance Further opportunities for margin improvement Compound growth in earnings and cash flow Prudent capital deploym
Slide 5: Teledyne Markets; Global Presence
Teledyne Markets; Global Presence Sales of ~$3.09 Billion(a) Markets(b) Sales by Geography(b) Offshore Energy Other Marine Europe Instrumentation(c) 5% 6% 20% U.S. U.S. Gov’t Analytical and Gov’t Electronic Test & 22% Measurement(d) 26% 26% Asia 19% Pac NN 3% Other 9% 3% Americas Other Industrials(e
Slide 6: Teledyne's Transformation
Teledyne’s Transformation Ongoing portfolio transformation 2000(a) 2010(a) 2020(b) Sales of ~$657M Sales of ~$1.64B Sales of ~$3.09 37% 7% 35% 32% 3% Printed 6% Circuits 32% Aerospace 4% 7% NN Castings 34% 14% Aerospace 17% 33% Engines Aerospace 19% Engines 19% 1% Printed Circuits Instrumentation Di
Slide 7: Continuous Improvement
Continuous Improvement(a) Gross Margin(b) EBITDA Margin 44% 20% 40% 18% 16% 36% 14% 32% 12% 28% 10% 8% 24% 6% 20% 4% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 201
Slide 8: Total Shareholder Return
Total Shareholder Return 5,000 4,700 Teledyne Relative shareholder return 4,400 4,100 since publicly listed 3,800 3,500 3,200 2,900 2,600 2,300 2,000 1,700 1,400 1,100 800 Russell 2000 500 200 (100) February 5, 2021 Jan-02 Jul-08 Jan-15 May-06 Aug-09 Oct-11 May-19 Nov-99 Nov-12 Dec-00 Sep-10 Dec-13
Slide 9: Consistent EPS Growth
Consistent EPS Growth(a) ($ per share) $10.73 $10.62 $ 11.00 10.00 $9.01 9.00 8.00 (c) $6.93 7.00 (b) $5.53 $6.26 6.00 $5.75 $5.44 $4.87 $5.37 5.00 $4.33 $3.81 4.00 $3.17 $3.25 $3.05 $2.72 3.00 $2.26 $1.85 2.00 $1.24 $0.77 $0.91 1.00 $0.21 0.00 (a) Represents total GAAP EPS for 2002 through 2008 and
Slide 10: Revenue History
Revenue History(a) ($ in millions) $ 3,250 $3,164 3,086 Digital Imaging 3,000 Instrumentation $2,902 Aerospace & Defense $2,604 2,750 Electronics $2,394 2,500 Engineered Systems $2,339 $2,298 2,250 $2,127 $2,150 $1,942 2,000 $1,722 $1,652 1,750 $1,644 $1,442 1,500 $1,252 1,250 $1,055 1,000 $875 750
Slide 11: Consistent Cash Flow
Consistent Cash Flow ($ in millions) $ 600 $548 500 $402 $402 $394 400 $360 $334 $316 300 $244 $249 $222 $218 $196 $227 $190 $185 $191 200 $184 $182 $142 $162 $163 $130 $116 $124 $99 $111$114 $120 100 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net Income Attributable to
Slide 12: Balance Sheet and Available Liquidity
Balance Sheet and Available Liquidity ($ in millions) Q4 2020 Cash $ 673.1 Debt 778.5 Stockholders’ Equity 3,228.6 Total Capitalization $ 4,007.1 Net Debt / Net Book Cap 3.2 % 12
Slide 13: Teledyne Acquisition History
Teledyne Acquisition History (a) Electronic Instrumentation Digital Imaging Aerospace & Defense Electronics Engineered Systems 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Microwave Digital Imaging Marine Instrumentation Environmental Electronic
Slide 14: Capital Allocation
Capital Allocation(a) Capital Allocation of $5.2 Billion Source of Funds Acquisitions (d) Borrowings, Net (a) Use of Funds Instrumentation (b) Cash Flow $105M 44% Stock Repurchase $160M Engineered $4,965M Pension $425M NN Systems 1% Contribution (after-tax) $295M 8% 47% $3,555M A&D Non-core $955M El
Slide 15: Everywhere you look - FLIR, The World's Sixth Sense
“we Everywhereyoulook’ SFLIR The World’s Sixth Sense®
Slide 16: Teledyne to Acquire FLIR
Teledyne to Acquire FLIR Transaction value of approximately $8.0 billion Consideration of 50% cash and 50% Teledyne stock Financed from cash on hand and new debt Fully committed $4.5 billion loan facility to fund transaction and refinance debt; to be replaced with permanent financing Estim
Slide 17: Uniquely Complementary Combination
Uniquely Complementary Combination Perfectly complementary technologies and markets with minimal overlap Sensors based on different semiconductor technologies for different wavelengths Products serving different customers and applications Unique unmanned and autonomous systems serving differ
Slide 18: Infrared Imaging Ecosystem
Infrared Imaging Ecosystem Teledyne Space Airborne FLIR Imaging Land, Maritime and NN Systems Soldier Commercial Thermography Automotive, Consumer and Security 18
Slide 19: Complementary Spectrum of Sensor Capabilities
Complementary Spectrum of Sensor Capabilities Teledyne Primarily MCT Teledyne High performance, niche segment Teledyne FLIR Primarily InSb, µB Also InGaAs, QWIP Good performance, NNLLarge market Infrared Detector Technologies Teledyne MCT Mercury Cadmium Telluride FLIR InSb Indium Antimonide µB Micr
Slide 20: 2020 Pro Forma Revenue by Segment
2020 Pro Forma Revenue by Segment Pro Forma Teledyne FLIR(a) Sales of ~$4.98B Sales of ~$3.09B Sales of ~$1.89B 35% 22% 100% 32% 14% 58% NN 8% 19% 12% Instrumentation Digital Imaging Aerospace & Defense Electronics Engineered Systems (a) Represents consensus estimate for 2020 calendar sales per Bloo
Slide 21: Additional Information and Where to Find It
Additional Information and Where to Find It In connection with the proposed transaction between Teledyne Technologies Incorporated (“Teledyne”) and FLIR Systems, Inc. (“FLIR”), Teledyne will file with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4 that will i
Slide 22: Reconciliation of Non-GAAP Financial Measures
Teledyne Technologies Incorporated Reconciliation of Non-GAAP Financial Measures Teledyne reports its financial results in accordance with U.S. GAAP. However, management believes that, in order to more fully understand our short-term and long-term financial and operational trends, investors may wish
Slide 23: Reconciliation of Non-GAAP Financial Measures
Teledyne Technologies Incorporated Reconciliation of Non-GAAP Financial Measures The following tables set forth a reconciliation of net income and operating margin provided in acordance with GAAP to comparable results that are non-GAAP. Reconciliation of GAAP to Non-GAAP financial measures (in milli
Slide 24: Reconciliation of Non-GAAP Financial Measures (cont.)
Teledyne Technologies Incorporated Reconciliation of Non-GAAP Financial Measures (cont…) Reconciliation of GAAP to Non-GAAP financial measures (in millions): Fiscal Year (Incl. Discont Ops) Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Net cash provided by operating activities,
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