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TAT Technologies Ltd. — Investor Presentation 2017
May 22, 2017
7072_rns_2017-05-22_22f53a57-4aa1-4a28-ac37-f8f3b636f8d6.pdf
Investor Presentation
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________FORM 6-K
REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2017
________________________TAT TECHNOLOGIES LTD.
(Translation of registrant's name into English)
P.O.BOX 80, Gedera 70750 Israel (Address of registrant's principal executive office)
________________________
________________________
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ý Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (7): ☐
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ☐No ý
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-____________ TAT Technologies Ltd.
6-K Items
99.1 Company Investor Presentation –May 2017
About TAT Technologies LTD
TAT Technologies Ltd. is a leading provider of services and products to the commercial and military aerospace and ground defense industries. TAT operates under four segments: (i) Original equipment manufacturing ("OEM") of heat transfer solutions and aviation accessories through its Gedera facility; (ii) MRO services for heat transfer components and OEM of heat transfer solutions through its Limco subsidiary; (iii) MRO services for aviation components through its Piedmont subsidiary; and (iv) Overhaul and coating of jet engine components through its Turbochrome subsidiary.
TAT's activities in the area of OEM of heat transfer solutions and aviation accessories primarily include the design, development and manufacture of (i) broad range of heat transfer solutions, such as pre-coolers heat exchangers and oil/fuel hydraulic heat exchangers, used in mechanical and electronic systems on board commercial, military and business aircraft; (ii) environmental control and power electronics cooling systems installed on board aircraft in and ground applications; and (iii) a variety of other mechanical aircraft accessories and systems such as pumps, valves, and turbine power units.
TAT's activities in the area of MRO Services for heat transfer components and OEM of heat transfer solutions primarily include the MRO of heat transfer components and to a lesser extent, the manufacturing of certain heat transfer solutions. TAT's Limco subsidiary operates an FAA-certified repair station, which provides heat transfer MRO services for airlines, air cargo carriers, maintenance service centers and the military.
TAT's activities in the area of MRO services for aviation components include the MRO of APUs, landing gears and other aircraft components. TAT's Piedmont subsidiary operates an FAA-certified repair station, which provides aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military.
TAT's activities in the area of overhaul and coating of jet engine components includes the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes and afterburner flaps.
For more information of TAT Technologies Ltd., please visit our web-site: www.tat-technologies.com
Contact:
Mr. Guy Nathanzon CFO Tel: +972-8-8628500 [email protected]
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.
TAT TECHNOLOGIES LTD.
(Registrant)
By: /s/ Guy Nathanzon
Guy Nathanzon Chief Financial Officer
Date: May 22, 2017
Exhibit 99.1

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," "argets," "projects" "intends" "plans," "believes," "seeks," "estimates" variations of such words and similar expressions identify for ward-looking statements regarding TAT's future financial condition, results of operations and business are also forward-looking statements involve certain risks and uncertainties. Factors that could cause actually from those contemplated by the forward-hoking statements include, among others, the following factors: continued compliance with government regulation in the industry in which TAT does business; TAT's business strategy and plans; exchange rate fluctuations; 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 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 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 to time.

Investment Highlights
TAT is a leading provider of heat management solutions, related accessories and services for the aerospace and defense industries.
Target markets
- V Design and Manufacturing (OEM) Heat management solutions: components and systems
- Maintenance, repair and overhaul (MRO) Heat management solutions, APU, landing gears, jet engines blades

TAT Group – Key Facts
| Founded in 1969 Acquired Limco in 1993 Acquired Piedmont in 2005 Acquired Turbochrome in 2015 |
> 500 customers (Boeing, Lockheed Martin, Airbus, Embraer ) |
NASDAQ and Tel Aviv stock exchange traded (Ticker: TATT) |
|---|---|---|
| Revenue: YTD March 31 2016: \$ 23.6M YTD March 312017: \$ 27.1M |
More than 600 employees in 4 locations: Gadera and Kiryat Gat, Israel Tulsa, Oklahoma, USA Kernersville, North Carolina, USA |
59.5% held by Fimi Opportunity Funds |
TAT Group -Senior Management
Amos Malka
Chairman of the Board
- In position since June 2016
- Former Head of the Israeli Defense Intelligence and Commander of the IDF Ground Forces Command. Retired in 2002
- Founder and Chairman of Spire Security Solutions Ltd. and Nyotron Information Security Ltd
Prior positions:
747
- = 2007-2015: Chairman of the Board of Logic Industries Ltd
- 2007-2010: Chairman of the Board of Plasan Sasa Ltd
- 2002-2005: CEO Elul Technologies Ltd
Igal Zamir
President & CEO
In position since April 2016 .
Prior experience:
- · President Mapco Express (subsidiary of Delek US Holdings Inc)
- CEO Metrolight Ltd
- CEO-Rostam Ltd (acquired by Albaad Massout Yitzhak Ltd)
Guy Nathanzon
CFO
In position since July 2015 .
Prior experience:
- CFO- Altair-Semiconductors .
- . CFO - Provigent - acquired by Broadcom (NASDAQ: BRCM)
- Senior auditor PwC
Aviation Industry — Market Trends
| Growth measures |
Region | New airplanes |
Value (SB) |
|||
|---|---|---|---|---|---|---|
| World economy | 3.2% | Asia Pacific | 12.030 | 1.700 | ||
| Gross domestic product (GDP) |
Europe | 7,760 | 970 | |||
| Airplane fleet | 3.5% | North America | 7.290 | 820 | ||
| Humber of | 4.000 | Middle East | 2,370 | 470 | ||
| passengers | Latin America | 2.510 | 260 | |||
| Airline traffic Revenue passenger- |
5.0% | ClS+ | 1.140 | 130 | ||
| kilometers (RPK) | Africa | 900 | 120 | |||
| Cargo traffic | 5.2% | Total | 34,000 | 4,470 | ||
| Revenue tonne- kilometers (RTK) |
"Commonwealth of independent States. |


1 • Design and manufacturing of heat management components
- ✔ Heat exchangers
- ✓ Cold plates
- √ Oil Coolers
TAT
✓ Fuel submerged HX

Component Locations

Component Locations

2 . Design and manufacturing of heat management systems
- √ From components to system level
- V PECS: power electronics cooling systems
- V Air Conditioning Systems


3 . Design and manufacturing of fuel flow accessories
- ✓ Fuel valves
- ✓ Solenoid valves
- √ Fuel control valves
- ✓ Fuel pumps
TAT

4 • Maintenance, repair and overhaul (MRO)
- ✔ Heat Exchangers
- V APU
-
Landing gears
- ✓ Jet engines blades


Commercial Platforms

Defense Platforms

Customer Base
| Honeywell Helicopter LOCKHEED MARTIN A Textron Compan |
y Lufthansa |
Honeywell | |
|---|---|---|---|
| LIEBHERR BOMBARDIER WARDIER 5 AIRBUS |
BRITISH IBERIA S |
U.S. AIR FORCE | |
| G-) RAFAEL shall and to the poss . Cessna |
KLIV AIRFFRANCE / AIRLINES O |
( Lufthansa Technik | |
| 0/1/ EMBRAER THALES |
UNITED ELTVALJNI |
Hamilton Sundstrand 0 |
|
| Diamond. COBEING Raytheon | American Airlines U.S AIRWAYS |
® AIRBUS | |
| ADELTA | NATC |
Strength / Differentiators
TÁT

Capabilities and Expertise
Parker and
QUALITY MONTH 2010
TAT TECHNOLOGIES LTD
Certifications
- V AS 9100
- V ISO 9001
- V Preferred Supplier for: Boeing, Lockheed Martin
- ✓ Aviation Authorities Certifications: FAA, EASA, DGAC, Thai, CAAV, NADCAP
- Authorized Repair Station -2 ✓ Honeywell IOP OneAero OneAero. OneAer

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

Revenue Trend
TAT

Revenue Trend

Financial Results - Annual
TAT
| \$ Millions | 2012 | 2013 | 2014 | 2015 | 2016 | Q1'17 |
|---|---|---|---|---|---|---|
| Revenue | 77.9 | 79.6 | 80.7 | 85.6 | 95.8 | 27.1 |
| Gross Profit | 18.5 | 17.8 | 16.2 | 13.7 | 19 | 5.6 |
| Gross Margin | 23.7% | 22.4% | 20.1 % | 16.0% | 19.9% | 20.7% |
| Operating Income | 5.4 | 5.3 | 3.8 | 5.6 | 4.1 | 1.9 |
| Operating Margin | 6.9% | 6.7% | 4.7% | 6.5% | 4.3% | 7.0% |
| Net Income (loss) | -1.7 | 2.8 | 1.4 | 5.8 | 0.1 | 1.2 |
| EBITDA | 7.3 | 7.2 | 5.9 | 3.6 | 7.8 | 2.9 |
| EBITDA % | 9.4% | 9.0% | 7.3% | 4.2% | 8.1% | 10.7% |
(*) During 2016 the Company had \$ 2.7 million tax expenses related to distribution of dividends from foreign subsidiaries
(**) During 2015 the company had \$ 4.8 million gain on bargain purchase related to acquisition
Financial Results - Quarterly
| \$ Millions | Q1'15 | Q2'15 | 03/15 | Q4'15 | Q1'16 | Q2'16 | Q3'16 | Q4'16 | Q1'17 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 20.5 | 21.5 | 21.9 | 21.7 | 23.6 | 23.5 | 23.7 | 25.0 | 27.1 |
| Gross Profit | 3.8 | 4.2 | 3.4 | 2.3 | 3.9 | 4.4 | 4.9 | 5.8 | 5.6 |
| Gross Margin | 18.5% | 19.5% | 15.5% | 10.6% | 16.7% | 18.6% | 20.7% | 23.3% | 20.7% |
| Operating Income | 1.1 | 1.1 | 0.5 | 2.9 | 0.3 | 0.3 | 1.5 | 2 | 1.9 |
| Operating Margin | 5.3% | 5.4% | 2.3% | 13.5% | 1.3% | 1.3% | 6.3% | 8.4% | 7.0% |
| Net Income (loss) | 2.0 | 0.7 | 0.2 | 3 | 0.04 | -2.5 | 0.9 | 1.6 | 1.2 |
| EBITDA | 1.6 | 1.8 | 1.1 | (1) | 1.1 | 1.2 | 2.4 | 3.1 | 2.9 |
| EBITDA % | 8.0% | 8.4% | 5.0% | (4.6%) | 4.7% | 5% | 10.2% | 12.3% | 10.7% |
(*) Following a periodic assessment of its long-term projects, the Company updated its estimates of profits expected to be tem contract. This assessment resulted in a decrease in revenues for the first quarter of 2017 in an amount of \$0.5 million in net income

Strong Balance Sheet
| \$ Millions | 2013 | 2014 | 2015 | 2016 | Q1'17 |
|---|---|---|---|---|---|
| Cash And Deposits | 29.9 | 28.0 | 26.8 | 22.4 | 24.8 |
| Working Capital | 73.8 | 70.8 | 70.8 | 66.7 | 68.8 |
| Total Assets | 108.9 | 99.2 | 109.6 | 112.0 | 113.8 |
| Debt | 0.9 | 0.0 | 0.0 | 0.0 | 0.0 |
| Equity | 85.6 | 85.5 | 91.4 | 88.7 | 90.3 |
(*) During 2016 the company distributed a cash dividend of \$3.0 million

Dividend Distribution History
| \$ Millions | |||||||
|---|---|---|---|---|---|---|---|
| Cash Dividend |
*In May 17, 2017 the company declared on a cash dividend of \$3 million payable on June 21, 2017 to shareholders of record on June 7, 2017.

