Slide 1: FY 2020 Q3 Earnings Call
FY 2020 Q3 Earnings Call August 4, 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 (Includes Esterline)
TransDigm Overview (Includes Esterline) 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‐ Propriet
Slide 5: 2020 Q3 Financial Performance by Markets – Pro Forma (Includes Esterline)
2020 Q3 Financial Performance by Markets – Pro Forma (Includes Esterline) Highlights Q3 Review – Pro Forma Revenues⁽¹⁾ Actual vs. Prior Year 20% Biz Q3 YTD Jet/Heli Commercial OEM: 80% Com Commercial OEM: Down 43% Down 16% Transport Q3 ’20 Commercial Transport Revenue Down 50% Q3 ’20 Business Je
Slide 6: Third Quarter 2020 Select Financial Results
Third Quarter 2020 Select Financial Results ($ in millions, except per share amounts) Q3 FY Q3 FY 2020 2019 Revenue $1,022 $1,521 ‐32.8% Decrease • COVID‐19 & 737 MAX restructuring costs • COVID‐19 cost mitigation efforts Gross Profit $491 $713 1.1% Margin Increase • Lower acquisition integration re
Slide 7: Misc. Financial
Misc. Financial ($ in millions) Cash Fiscal 2020 Current Misc. Financial Assumptions Full year net interest expense: 6/27/20 9/30/19 Net Cash Provided by ≈ $1.03 billion (includes new debt issuance) $991 $1,029 Operating Activities Full year effective tax rate: Capital Expenditures ($62) ($103)
Slide 8: Liquidity
Liquidity ($ in millions) Pro Forma Capital Structure Pro forma capitalization Actual ($ in millions) 6/27/20 Rate Cash $4,549 $760mm revolver $200 L + 3.000% FY20 Weighted $350mm AR securitization facility 350 L + 0.900% Average Interest First lien term loan E due 2025 2,210 L + 2.250% Rate First l
Slide 9: Appendix: Reconciliation of Net Income to EBITDA and EBITDA As Defined
Appendix: Reconciliation of Net Income to EBITDA and EBITDA As Defined ($ in millions) Thirteen Week Periods Ended Thirty‐Nine Week Periods Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 (Loss) Income from continuing operations $ (5) $ 128 $ 552 $ 524 Adjustments: Depreciation and amo
Slide 10: 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 Thirty‐Nine Week Periods Ended Reported (Loss) Earnings Per Share June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 (Loss) Income from continuing operations $ (5) $ 12
Slide 11: Appendix: Reconciliation of GAAP to Adjusted EPS
Appendix: Reconciliation of GAAP to Adjusted EPS Thirteen Week Periods Ended Thirty ‐ Nine Week Periods Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 GAAP (loss) earnings per share from continuing operations $ (0.09) $ 2.27 $ 6.38 $ 8.87 Adjustments to earnings per share: Dividend eq
Slide 12: 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 Thirty‐Nine Week Periods Ended ($ in millions) June 27, 2020 June 29, 2019 Net cash provided by operating activities $ 991 $ 768 Adjustments: Changes in assets and liabilities, net of effects from a