EX-99 2 exhibit_99-1.htm EXHIBIT 99.1 exhibit_99-1.htm


Exhibit 99.1
 
 
TAT Technologies
Corporate Presentation
April 2016
 
 

 
Forward Looking Statements
This presentation may contain certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. Generally, the words “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,”
“estimates,” variations of such words and similar expressions identify forward-looking statements and any statements regarding TAT’s future financial
condition, results of operations and business are also forward-looking statements. These forward-looking statements involve certain risks and
uncertainties. Factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among
others, the following factors: continued compliance with government regulations; competition in the industry in which TAT does business; TAT’s
business strategy and plans; exchange rate fluctuations; general economic conditions; and political, economic and military conditions in Israel.
Any forward-looking statements in this presentation are not guarantees of future performance, and actual results, developments and business
decisions may differ from those contemplated by those forward-looking statements, possibly materially. Except as otherwise required by applicable
law, TAT disclaims any duty to update any forward-looking statements.
Additional discussions of risks and uncertainties that may affect the accuracy of forward-looking statements included in this presentation or which
may otherwise affect TAT’s business is included under the heading “RISK FACTORS” in TAT’s filings on Forms 20-F and 6-K, which are filed from time
to time.
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3
Investment Highlights
TAT is a leading provider of heat
management solutions, related accessories and
services for the aerospace and defense industries.
Target markets
üDesign and Manufacturing (OEM)
   Heat management solutions: components and systems
üMaintenance, repair and overhaul (MRO)
   Heat management solutions, APU, landing gears, jet engines blades
 
 

 
Founded in 1969
Acquired Limco in 1993
Acquired Piedmont in 2005
Acquired Chromalloy Israel in 2015
> 100 customers
(Boeing, Lockheed Martin,
Airbus, Embraer …)
Revenue:
YTD Dec 31 2014: $ 80.7M
YTD Dec 31 2015: $ 85.6M
Net Income:
YTD Dec 31, 2014 : $ 1.4M
YTD Dec 31, 2015 : $ 5.8M
More than 600 employees
in 4 locations:
Gadera and Kiryat Gat, Israel
Tulsa, Oklahoma, USA
Kernersville, North Carolina, USA
NASDAQ and
Tel Aviv stock
exchange traded
(Ticker: TATT)
54% held by Fimi
Opportunity Funds
TAT Group - Key Facts
4
 
 

 
6
TAT Group -Senior Management
§ In position since August 2013
§ Chairman of the Board of Tadir-
 Gan Precision Products, Raval
 ACS, Bagir Group, and Ginegar
 Plastic Industries
Samuel Vlodinger
Chairman of the Board
§ In position since Apr 2016
§ Prior experience:
§ President - Mapco Express (subsidiary
 of Delek US Holdings Inc)
§ CEO - Metrolight Ltd
§ CEO - Rostam Ltd (acquired by Albaad
 Massout Yitzhak Ltd)
Igal Zamir
CEO
§ In position since July 2015
§ Prior experience:
§ CFO- Altair-Semiconductors
§ CFO - Provigent - acquired by
 Broadcom (NASDAQ: BRCM)
§ Senior auditor - PwC
Guy Nathanzon
CFO
 
 

 
Aviation Industry - Market Trends
6
 
 

 
1.
Target Markets
Design and manufacturing
of heat management
components
üHeat exchangers
üCold plates
üOil Coolers
üFuel submerged HX
7
 
 

 
Target Markets
9
Design and manufacturing of heat
management systems
üFrom components to system level
üPECS: power electronics cooling
   systems
üAir Conditioning Systems
2.
8
 
 

 
3.
Target Markets
Design and manufacturing of fuel
flow accessories
üFuel valves
üSolenoid valves
üFuel control valves
üFuel pumps
9
 
 

 
4.
Target Markets
Maintenance, repair and overhaul (MRO)
üHeat Exchangers
üAPU
üLanding gears
üJet engines blades
10
 
 

 
Commercial Platforms
Airbus
Bombardier CRJ
 ATR
Pilatus
PC-12
Boeing
737, 747, 767, 777
Sukhoi
Super Jet
Cessna
CJ-3, CJ-4, Citation-X, Caravan
Embraer
ERJ145, ERJ170, ERJ190
11
 
 

 
Defense Platforms
Boeing
F-15
Boeing
v22
Boeing
F-18
Boeing
CH-47
Boeing
AH-64
Iron Dome
Sikorsky
UH-60
Sikorsky
CH-53
Lockheed Martin
F-16
12
 
 

 
Hydraulic Systems
Fuel Submerged Oil Cooler
Air Cooled Oil Cooler
Component Locations
Power
Electronics
Cold Plates
   (Weather Radars +
   Avionics+
   Entertainment)
Heat Exchangers
   (Same)
APU
Oil Cooler
Engine
Oil Cooler
Galley
Auxiliary HX
Chillers
Air Systems
Pre-cooler (Bleed Air System)
Emergency HX (Bleed Air System/ECS)
Condenser (ECS)
Reheater (ECS)
Dual Heat Exchanger (ECS)
Humidifier (Humidification System)
Ozone Converter (ECS)
Water Extractor (ECS)
13
 
 

 
Component Locations
Hydraulic Systems
Oil Cooler
Engine
Oil Cooler
Main Gearbox
Oil Cooler
14
 
 

 
Service centers
Air Forces
Customer Base
Air Lines
OEM
15
 
 

 
Strength / Differentiators
Over 40 years of
experience - proven
competence in demanding
aerospace world
Technology
Unique manufacturing
capabilities - 4 facilities
world wide, including dip
brazing and vacuum brazing,
EBW
Manufacturing
Expertise
FAA, EASA, AS9100,
Honeywell authorized
repair center for APUs
Customers
Relationships and
Certifications
16
 
 

 
Capabilities and Expertise
17
Certifications
üAS 9100
üISO 9001
üPreferred Supplier for: Boeing,
   Lockheed Martin
üAviation Authorities Certifications:
   FAA, EASA, DGAC, Thai, CAAV,
   NADCAP
Authorized Repair Station -
 
üHoneywell
 
 

 
Growth Drivers
ü Going upstream in the chain (from components to systems)
ü Enter into new platforms - aviation and ground
 
ü Maintenance, repair and overhaul (MRO) of new parts
ü Organic growth and acquisitions
 
ü Expand to new territories: Eastern Europe, Asia, UK etc
 
 

 
 
 

 
20
Revenue Trend
 
 

 
21
Revenue Trend
 
 

 
22
$ Millions
2012
2013
2014
2015
Revenue
77.9
79.6
80.7
85.6
Gross Profit
18.5
17.8
16.2
13.7
Gross Margin
23.7%
22.4%
20.1 %
16.0%
Operating Income
5.4
5.3
3.8
5.6
Operating Margin
6.9%
6.7%
4.7%
6.5%
Net Income (loss)
-1.7
2.8
1.4
5.8
EBITDA
7.3
7.2
5.9
3.6
EBITDA %
9.4%
9.0%
7.3%
4.2%
Financial Results - Annual
Q4 2015:
Assessment of long term projects: decrease of $ 2.1M in revenue and $ 1.4M in net income
Chromalloy Israel acquisition: $ 4.8M gain on bargain purchase, $ 1.9M revenue for the period Oct 19, 2015 - Dec 31, 2015
 
 

 
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Financial Results - Quarterly
$ Millions
Q1’14
Q2’14
Q3’14
Q4’14
Q1’15
Q2’15
Q3’15
Q4’15
Revenue
18.4
20.6
20.3
21.4
20.5
21.5
21.9
21.7
Gross Profit
3.4
3.9
3.7
5.2
3.8
4.2
3.4
2.3
Gross Margin
18.5%
18.9%
18.2%
24.3%
18.5%
19.5%
15.5%
10.6%
Operating Income
0.4
0.7
0.6
2.2
1.1
1.1
0.5
2.9
Operating Margin
1.9%
3.2%
3.2%
10.1%
5.3%
5.4%
2.3%
13.5%
Net Income (loss)
0.4
0.3
-0.4
1.1
2.0
0.7
0.2
3
EBITDA
0.9
1.2
1.2
2.7
1.6
1.8
1.1
(1)
EBITDA %
4.6%
5.7%
5.8%
12.6%
8.0%
8.4%
5.0%
(4.6%)
 
 

 
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Strong Balance Sheet
$ Millions
2013
2014
2015
Cash And Deposits
29.9
28.0
26.8
Working Capital
73.8
70.8
70.8
Total Assets
108.9
99.2
109.6
Debt
0.9
0.0
0.0
Equity
85.6
85.5
91.4