ForwardLookingStatements
Thispresentationmaycontaincertainforward-lookingstatementswithinthemeaningofthe“safeharbor”provisionsofthePrivateSecuritiesLitigationReformActof1995.Generally,thewords“expects,”“anticipates,”“targets,”“goals,”“projects,”“intends,”“plans,”“believes,”“seeks,”“estimates,”variationsofsuchwordsandsimilarexpressionsidentifyforward-lookingstatementsandanystatementsregardingTAT’sfuturefinancialcondition,resultsofoperationsandbusinessarealsoforward-lookingstatements.Theseforward-lookingstatementsinvolvecertainrisksanduncertainties.Factorsthatcouldcauseactualresultstodiffermateriallyfromthosecontemplatedbytheforward-lookingstatementsinclude,amongothers,thefollowingfactors:continuedcompliancewithgovernmentregulations;competitionintheindustryinwhichTATdoesbusiness;TAT’sbusinessstrategyandplans;exchangeratefluctuations;generaleconomicconditions;andpolitical,economicandmilitaryconditionsinIsrael.Anyforward-lookingstatementsinthispresentationarenotguaranteesoffutureperformance,andactualresults,developmentsandbusinessdecisionsmaydifferfromthosecontemplatedbythoseforward-lookingstatements,possiblymaterially.Exceptasotherwiserequiredbyapplicablelaw,TATdisclaimsanydutytoupdateanyforward-lookingstatements.Additionaldiscussionsofrisksanduncertaintiesthatmayaffecttheaccuracyofforward-lookingstatementsincludedinthispresentationorwhichmayotherwiseaffectTAT’sbusinessisincludedundertheheading“RISKFACTORS”inTAT’sfilingsonForms20-Fand6-K,whicharefiledfromtimetotime.
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InvestmentHighlights
TATisaleadingproviderofheatmanagementsolutions,relatedaccessoriesandservicesfortheaerospaceanddefenseindustries.
Targetmarkets
✓ DesignandManufacturing(OEM)Heatmanagementsolutions:componentsandsystems
✓ Maintenance,repairandoverhaul(MRO)Heatmanagementsolutions,APU,landinggears,jetenginesblades
Foundedin1969
AcquiredLimcoin1993AcquiredPiedmontin2005
AcquiredChromalloyIsraelin2015
>500customers
(Boeing,LockheedMartin,Airbus,Embraer…)
Revenue:YTDMarch312015:$20.5MYTDMarch312016:$23.6M
Morethan600employeesin4locations:
GaderaandKiryatGat,IsraelTulsa,Oklahoma,USA
Kernersville,NorthCarolina,USA
NASDAQandTelAvivstock
exchangetraded(Ticker:TATT)
54%heldbyFimiOpportunityFunds
TATGroup–KeyFacts
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TATGroup–SeniorManagement
▪ InpositionsinceAugust2013
▪ ChairmanoftheBoardofTadir-
GanPrecisionProducts,RavalACS,
BagirGroup,andGinegarPlastic
Industries
SamuelVlodingerChairmanoftheBoard
▪ InpositionsinceApril2016
▪ Priorexperience:
▪ President–MapcoExpress(subsidiary
ofDelekUSHoldingsInc)
▪ CEO–MetrolightLtd
▪ CEO–RostamLtd(acquiredbyAlbaad
MassoutYitzhakLtd)
IgalZamirPresident&CEO
▪ InpositionsinceJuly2015
▪ Priorexperience:
▪ CFO–Altair-Semiconductors
▪ CFO–Provigent-acquiredby
Broadcom(NASDAQ:BRCM)
▪ Seniorauditor-PwC
GuyNathanzonCFO
1.TargetMarkets
Designandmanufacturingofheatmanagementcomponents
✓ Heat exchangers ✓ Cold plates ✓ Oil Coolers ✓ Fuel submerged HX
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TargetMarkets
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Designandmanufacturingofheatmanagementsystems
✓ From components to system level ✓ PECS: power electronics cooling
systems ✓ Air Conditioning Systems
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3.TargetMarkets
Designandmanufacturingoffuelflowaccessories
✓ Fuel valves ✓ Solenoid valves ✓ Fuel control valves ✓ Fuel pumps
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4.TargetMarkets
Maintenance,repairandoverhaul(MRO)
✓ Heat Exchangers ✓ APU ✓ Landing gears ✓ Jet engines blades
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CommercialPlatforms
AirbusA300,A310,A319,A320,A321,A330 BombardierCRJ
ATR42,72 Pilatus
PC-12
Boeing737,747,767,777
SukhoiSuperJet
CessnaCJ-3,CJ-4,Citation-X,Caravan
EmbraerERJ145,ERJ170,ERJ190
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DefensePlatforms
BoeingF-15
Boeingv22
BoeingF-18
BoeingCH-47
BoeingAH-64
IronDome
SikorskyUH-60
SikorskyCH-53LockheedMartin
F-16
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HydraulicSystems•FuelSubmergedOilCooler•AirCooledOilCooler
ComponentLocations
PowerElectronics• ColdPlates
(WeatherRadars+Avionics+Entertainment)
• HeatExchangers(Same)
APU•OilCooler
Engine•OilCooler
Galley•AuxiliaryHX•Chillers
AirSystems• Pre-cooler(BleedAirSystem)• EmergencyHX(BleedAirSystem/ECS)• Condenser(ECS)• Reheater(ECS)• DualHeatExchanger(ECS)• Humidifier(HumidificationSystem)• OzoneConverter(ECS)• WaterExtractor(ECS)
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Servicecenters AirForces
CustomerBase
AirLinesOEM
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Strength/Differentiators
Over40yearsofexperience–provencompetenceindemandingaerospace
world
Technology
Uniquemanufacturingcapabilities–4facilitiesworldwide,includingdipbrazingandvacuumbrazing,EBW
ManufacturingExpertise
FAA,EASA,AS9100,HoneywellauthorizedrepaircenterforAPUs
CustomersRelationshipsandCertifications
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CapabilitiesandExpertise
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Certifications
✓ AS 9100
✓ ISO 9001 ✓ Preferred Supplier for: Boeing,
Lockheed Martin ✓ Aviation Authorities Certifications:
FAA, EASA, DGAC, Thai, CAAV,
NADCAP
Authorized Repair Station – ✓ Honeywell
GrowthDrivers
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✓ Goingupstreaminthechain(fromcomponentstosystems)
✓ Enterintonewplatforms–aviationandground
✓ Maintenance,repairandoverhaul(MRO)ofnewparts
✓ Organicgrowthandacquisitions
✓ Expandtonewterritories:EasternEurope,Asia,UKetc
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Q1’162015201420132012$Millions
23.685.680.779.677.9Revenue
3.913.716.217.818.5GrossProfit
16.7%16.0%%20.122.4%23.7%GrossMargin
0.35.63.85.35.4OperatingIncome
1.3%6.5%4.7%6.7%6.9%OperatingMargin
0.055.81.42.81.7-(NetIncome(loss
1.13.65.97.27.3EBITDA
4.7%4.2%7.3%9.0%9.4%%EBITDA
FinancialResults-Annual
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FinancialResults-Quarterly
Q1’16Q4’15Q3’15Q2’15Q1’15Q4’14Q3’14Q2’14Q1’14$Millions
23.621.721.921.520.521.420.320.618.4Revenue
3.92.33.44.23.85.23.73.93.4GrossProfit
16.7%10.6%15.5%19.5%18.5%24.3%18.2%18.9%18.5%GrossMargin
0.32.90.51.11.12.20.60.70.4OperatingIncome
1.3%13.5%2.3%5.4%5.3%10.1%3.2%3.2%1.9%OperatingMargin
0.0430.20.72.01.10.4-0.30.4(NetIncome(loss
1.1(1)1.11.81.62.71.21.20.9EBITDA
4.7%(4.6%)5.0%8.4%8.0%12.6%5.8%5.7%4.6%%EBITDA
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StrongBalanceSheet
Q1’16201520142013$Millions
26.026.828.029.9CashAndDeposits
70.870.870.873.8WorkingCapital
111.4109.699.2108.9TotalAssets
0.00.00.00.9Debt
91.991.485.585.6Equity
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