Sifco Industries, Inc. · AMEX:SIF
Sifco Industries — Wall Street Analyst Forum (March 2011)
36 slides from Sifco Industries's conference presentation, Mar 3, 2011
Slide 1: Investor Presentation – Wall Street Analyst Forum
Investor Presentation Wall Street Analyst Forum March 1, 2011 Exhibit 99.2
Slide 2: Forward-Looking Statements
This presentation contains forward–looking statements, as defined by the Private Securities Litigation Reform Act of (the “Act”). As a general matter, forward-looking statements relate to anticipated trends and expectations rather than historical matters. Although they reflect the company’s current
Slide 3: Discussion Outline
Discussion Outline Introductions Overview of SIFCO Industries, Inc. Market Segments Business Strategy Financial Summary
Slide 4: SIFCO Industries Management
SIFCO Industries Management Michael S. Lipscomb - President & Chief Executive Officer Frank A. Cappello – Chief Financial Officer, VP – Finance James P. Woidke – Chief Operating Officer, EVP
Slide 5: Discussion Outline
Discussion Outline Introductions Overview of SIFCO Industries, Inc. Market Segments Business Strategy Financial Summary
Slide 6: SIFCO Industries, Inc.
SIFCO Industries, Inc. SIFCO Industries is engaged in the production and sale of a variety of metalworking processes, services and products primarily to the specific design requirements of our customers. Operations: Two Forging Plants Aerospace Turbine Component Repair Facility Multiple Selective Pl
Slide 7: About SIFCO Industries – Milestones
About SIFCO Industries - Milestones Steel Improvement Company is founded and subsequently merged with Forest City Electric to form Steel Improvement & Forge Company - - SIFCO Initial supplier to emerging aircraft industry SIFCO becomes a public company SIF listed on AMEX T&W Forge acquired in Decemb
Slide 8: Division Description, FY2010 Net Sales and Backlog
Division Description FY 2010 Net Sales FY2010 Backlog Locations Forged Components Group ASC Group Repair Group SIFCO Industries, Inc. Manufacturer of forged OEM and aftermarket aerospace and IGT components $78.4 million * (79% of Net Sales) $89.9 million Cleveland, OH Alliance, OH Develops, manufact
Slide 9: Aircraft Applications
Aircraft Applications APU Parts & Mounts Airframe Parts Landing Gears Wheels & Brakes Wing Supports Airbus Allison Aircraft Braking Boeing Cessna BF Goodrich Aerospace Hamilton-Sundstrand Northrop Grumman Lockheed Martin Messier-Dowty Parker-Hannifin Pratt & Whitney Aircraft Rolls-Royce
Slide 10: Helicopter Applications
Transmission Gears Engine Parts Rotor Hubs Spindles Helicopter Applications Agusta Aerospace Bell Helicopter Boeing Helicopter Pratt & Whitney Canada Rolls-Royce Sikorsky Aircraft Turbomeca Pitch Housing
Slide 11: Engine Applications
Engine Applications Rolls-Royce Hamilton Sundstrand General Electric Pratt & Whitney MTU Avio Honeywell Engine Mounts Compressor Discs Bearing Components Drive Shafts Hot Section Components Internal Drive Gears
Slide 12: Industrial Gas Turbine Applications
Stators/Vanes Airfoils/Blades Industrial Gas Turbine Applications GE – Energy Siemens Alstom Power T-Fairings
Slide 13: Discussion Outline
Discussion Outline Introductions Overview of SIFCO Industries, Inc. Market Segments Business Strategy Financial Summary
Slide 14: Blue-Chip Customer Base – Market Segments
Blue-Chip Customer Base Market Segments
Slide 15: FY 2010 Revenues
FY 2010 Revenues: $99.6 million * SIFCO Forge 62% T&W Forge 16% Applied Surface Concepts 12% Turbine Component Repair 10% * Pro-forma results reflect T&W Forge as if it was included in SIFCO’s operations during 100% of FY 2010. All figures are in millions ($)
Slide 16: Market Segments
Market Segments Aerospace Flight-critical components and services found on variety of commercial airliners, business and military jets, and helicopters. Energy Engineered forged components to leading industrial gas turbine (IGT) manufacturers. Provider of selective plating product and services to oi
Slide 17: Revenue by Market Segment Pre/Post T&W Forge Acquisition
Pre-T&W Forge Acquisition Post-T&W Forge Acquisition Revenue by Market Segment Major Market Segments: * Aerospace -75% *Energy – 17% *Other – 8% Military IGT Civil Oil & Gas
Slide 18: World Commercial Transport Production Active SIFCO Platforms
World Commercial Transport Production Active SIFCO Platforms Market Segments Boeing (27), (62) (23), 767 (40) (18), 787 (13) Airbus A319/A320 (7) A330/A340 (18) A380 (1) Embraer (21) (7) ( ) represents number of active part numbers Source: Forecast International
Slide 19: World Civil Rotary-Wing Production Active SIFCO Platforms
World Civil Rotary-Wing Production Active SIFCO Platforms Market Segments Sikorsky S76 (21) S92 (33) Bell Helicopter (7) (5) (24) (16) (12) (2) 449 (8) (6) ( ) represents number of active part numbers Source: Forecast International
Slide 20: Major Military Platforms Active SIFCO Part Numbers
Major Military Platforms Active SIFCO Part Numbers Est. Production Units 2010-2019 * Market Segments Sikorsky o Blackhawk (UH-60/S-70) 1,015 o Seahawk (SH/MH-60) o CH-53K • (200 total planned for Marines) * Bell / Boeing o V-22 Tiltrotor Boeing o CH-47 o F-18 Hornet (thru 2016) Lockheed Martin o F-1
Slide 21: Discussion Outline
Discussion Outline Introductions Overview of SIFCO Industries, Inc. Market Segments Business Strategy Financial Summary
Slide 22: Clear Business Strategy
Clear Business Strategy Focus on long-term, consistent growth Invest in technology that yields a competitive advantage Drive Operational Excellence Grow through disciplined, strategic acquisitions and/or capital investment
Slide 23: Invest in Technology That Yields a Competitive Advantage
Invest in Technology That Yields a Competitive Advantage New 35,000 lb. Hammer Cell - $6.5 million Satisfy current/new customers’ need for larger components o In-service date: January, 2010 o Cell includes: o 35,000 lb. steam hammer o Three hydraulic presses o State-of-the-art rotary furnace o New h
Slide 24: Drive Operational Excellence
Drive Operational Excellence A critical strategy in remaining competitive is to drive Operational Excellence at all divisions. More importantly, differentiate ourselves from the competition! Three main areas of focus: Long-term sustained Continuous Improvement SMART Lean TOC Six Sigma Reliability Ce
Slide 25: Grow through Disciplined, Strategic Acquisitions and/or Capital Investment
Grow through Disciplined, Strategic Acquisitions and/or Capital Investment Renewed Focus to Grow the Business Major effort to strengthen the Portfolio Growth will come from the following: New Products • Complimentary or value-added opportunities Enhanced Capabilities Market Expansion • Entry into ne
Slide 26: Impact of T&W Forge Acquisition
Impact of T&W Forge Acquisition T&W Forge Acquisition, completed 12/10/10, provides the following: Further Leveraging and Expansion of Core Forging Platform • Equipment between both forge operations is complimentary • Cleveland facility has increased capability for larger components due to recent in
Slide 27: Recent Program Awards
Recent Program Awards Rolls Royce 5-year LTA valued at $85 million . (2011-2016) Contract covers compressor discs, shafts and various transmission gears for the Lockheed Martin C-130 , Bell/Boeing V-22 Osprey , Embraer ERJ and the Lockheed Martin F-35 Joint Strike Fighter (JSF). Sikorsky Multi-Year
Slide 28: Recent Program Awards
Recent Program Awards Hamilton Sundstrand 10-year LTA valued at $35 million . (2010-2020) Various impellors, shafts, diffusers and auxiliary power unit (APU) discs for multiple commercial and military aircraft. Select aircraft include the Boeing 737/747/777 , Airbus A320/A340/A380 , Embraer ERJ , Bo
Slide 29: Discussion Outline
Discussion Outline Introductions Overview of SIFCO Industries, Inc. Market Segments Business Strategy Financial Summary
Slide 30: FY 2010 Financial Highlights
FY 2010 Financial Highlights Posted strong operating results in a challenging economic environment: o FY2010 Pro-forma net sales increased 6% to $99.6 million • Primary driver was acquisition of TWF o FY2010 Pro-forma EBITDA (FIFO basis) increased 14% to $14.4 million. o EPS improved to $1.31 from $
Slide 31: FY 2010 Financial Highlights
FY 2010 Financial Highlights $6.7 million reinvested in the equipment/facilities to enhance capabilities: o Completed installation of new 35K hammer cell - $3.8 million in FY2010 o Completed installation of new ERP software system - $ 0.6 million in FY2010 Special dividend increased 50% from $0.10/s
Slide 32: FY2010 Financial Results
FY 2010 Actual FY 2010 Pro Forma* FY2010 Financial Results Net Sales $83,270 $99,619 Gross Profit $19,741 $24,183 23.7% 24.3% Net Income $5,362 $7,017 EPS $1.00 $1.32 EBITDA (LIFO basis) $10,303 $14,228 +/- LIFO expense (income) $175 $175 EBITDA (FIFO basis) $10,478 $14,403 * Pro-forma results refle
Slide 33: Historical Financial Results
FY 2007 FY 2008 FY 2009 Historical Financial Results Net Sales $87,255 $101,391 $93,888 Gross Profit $21,420 $22,230 $23,941 24.5% 21.9% 25.5% Net Income $6,728 $5,830 $8,035 EPS $1.27 $1.09 $1.51 EBITDA (LIFO basis) $11,865 $10,428 $14,203 +/- LIFO expense (income) $331 $1,712 $(1,583) EBITDA (FIFO
Slide 34: Overall Historical Backlog
Overall Historical Backlog Backlog is primarily driven by Forged Components Group - - steady growth over last 4 quarters
Slide 35: Investment Highlights
Firmly Established Relationships with Diverse, Blue-Chip Customer Base Significant Backlog & Revenue Visibility Capacity to Expand Profitably Experienced Management Team High-Growth End Markets Platform for Future Acquisitions & Expansions Investment Highlights
Slide 36: Contact Information
Contact Information SIFCO Industries, Inc. E. th St. Cleveland, Ohio 44103 Frank Cappello VP-Finance and Chief Financial Officer (216) 432-6278 WWW.SIFCO.COM
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