Slide 1: FY 2020 Q4 Earnings Call
FY 2020 Q4 Earnings Call November 12, 2020
Slide 2: Agenda
Agenda TransDigm Overview and Highlights Nick Howley Executive Chairman Operating Performance, Market Review Kevin Stein and Outlook President and CEO 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‐ Proprietary OEM Comm OEM 29%
Slide 5: 2020 Q4 Financial Performance by Markets – Pro Forma
2020 Q4 Financial Performance by Markets – Pro Forma Highlights Q4 Review – Pro Forma Revenues⁽¹⁾ Actual vs. Prior Year 20% Biz Q4 YTD Jet/Heli Commercial OEM: 80% Com Commercial OEM: Down 42% Down 23% Transport Q4 ’20 Commercial Transport Revenue Down 49% Q4 ’20 Business Jet/Helicopter Revenue
Slide 6: Fourth Quarter 2020 Select Financial Results
Fourth Quarter 2020 Select Financial Results ($ in millions, except per share amounts) Q4 FY Q4 FY 2020 2019 Revenue $1,173 $1,541 ‐24% Decrease • Acquisition expenses impacted by a favorable inventory Gross Profit $536 $882 acquisition accounting adjustment in the prior year • COVID‐19 & 737 MAX re
Slide 7: Full Year 2020 Select Financial Results
Full Year 2020 Select Financial Results ($ in millions, except per share amounts) FY 2020 FY 2019 Revenue $5,103 $5,223 ‐2% Decrease • COVID‐19 & 737 MAX impact Gross Profit $2,647 $2,809 • Lower Esterline gross margins vs legacy TDG • Lower acquisition integration related costs • Higher SG&A expens
Slide 8: Fiscal 2021 Select Financial Assumptions
Fiscal 2021 Select Financial Assumptions Select Financial Assumptions for Fiscal 2021 Defense Revenue Growth LSD% to MSD% Growth Full Year EBITDA Margin ≈ 44% (Highly Dependent on Pace of Commercial Aftermarket Recovery) Cash Generation ≈ $400 million + Full Year Net Interest Expense ≈ $1.08 billion
Slide 9: Liquidity, Capital Structure & Taxes
Liquidity, Capital Structure &Taxes Cash Pro Forma Capital Structure ($ in millions) ($ in millions) Actual FY 20 FY 19 9/30/20 Rate 9/30/20 9/30/19 Cash $4,717 $760mm revolver $200 L + 3.000% Net Cash Provided by $1,213 $1,015 $350mm AR securitization facility 350 L + 1.350% Operating Activities Fi
Slide 10: Appendix: Reconciliation of Income from Continuing Operations to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Income from Continuing Operations to EBITDA and EBITDA As Defined ($ in millions) Thirteen Week Periods Ended Fiscal Years Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Income from continuing operations $ 101 $ 317 $ 653 $ 841 Adjustmen
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 Fiscal Years Ended Reported Earnings Per Share September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Income from continuing operations $ 101 $ 317 $ 65
Slide 12: 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, 2020 September 30, 2019 September 30, 2020 September 30, 2019 GAAP earnings per share from continuing operations $ 1.76 $ 4.08 $ 8.14 $ 12.94 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 Fiscal Years Ended ($ in millions) September 30, 2020 September 30, 2019 Net cash provided by operating activities $ 1,213 $ 1,015 Adjustments: Changes in assets and liabilities, net of effects from