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TAT Technologies Ltd. — Investor Presentation 2024
May 22, 2024
7072_rns_2024-05-23_c9c432e0-8785-4972-b576-0519557008b1.pdf
Investor Presentation
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2024
TAT TECHNOLOGIES LTD.
(Name of Registrant)
Hamelacha 5, Netanya 4250407 Israel (Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒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 by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ☐No ☒
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ____________
TAT Technologies Ltd.
Explanatory Note
TAT Technologies Ltd. (the "Company") hereby furnishes its investors presentation, which is attached to this Form 6-K as Exhibit 99.1
Disclaimer
The information contained herein is only a summary, does not exhaust all the information about the Company and its Operations, and does not replace a review of the Company's Periodical and Annual Reports on Form 20-F and in other information which is filed and furnished with the Israel Securities Authority and the U.S. Securities and Exchange Commission. Material information regarding the Company which is included in this slide deck has been published to the public in the past as part of the Company's reporting. That said, the information or data presented may be presented in a different manner and/or segmentation from those previously furnished in the Company's Reports.
The presentation does not constitute or form part of any invitation or offer to invest or purchase the Company's securities and in particular does not constitute an "offer to the public" or "sale to the public" of any kind, the presentation is intended solely for the provision of information included in it and does not constitute a recommendation or opinion or a substitute for the judgment of an investor for any kind of decision and does not pretend to include all the information that may be relevant for the purpose of making any decision regarding the investment in the Company's securities and in general.
This presentation may include forward-looking information as defined in the Securities Law, 1968 and in the U.S. Private Securities Litigation Reform Act of 1995, including forecasts, goals, business strategy, evaluations and estimates regarding both the Company's activities and the markets in which it operates, as well as any other information, in any form in which it is presented, that relates for future events or matters, the realization of which is uncertain and not under the Company's control.
Any forward-looking information is based on current estimates and assumptions, among others, by the Company's management, which, although the Company believes are reasonable, are inherently uncertain and are partially based on subjective estimates. The realization or non-realization of the forward-looking information will be affected and depended on a variety of factors including, including the risk factors which are inherent to the Company's activity, third party decisions, including regulatory authorities and engagements with third parties, as well as by developments in the economic environment and the external factors which impact the Company's activity, which cannot be assessed in advance and are out of the Company's control. Actual results and achievements of the Company in the future may be materially different from those presented in the forward-looking information presented in this presentation. The Company does not undertake to update or change such a forecast or estimate in order to reflect events and/or reasons that will apply after the date of this presentation and does not undertake to update this presentation.
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Exhibit Index
This Report on Form 6-K of TAT Technologies Ltd. consists of the following document, which is attached hereto and incorporated by reference herein:
Exhibit 99.1Investor Presentation
SIGNATURE
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/ Ehud Ben-Yair Ehud Ben-Yair Chief Financial Officer
Date: May 22, 2024
4


INVESTOR'S PRESENTATION
May 2024
LOOKING FORWARD 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," "goals" "grojects," "intends," "plans," "believes," "seks," 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 forwardlooking statements. These forward-looking statements involve certainties. 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 thich TAT does business; TAT's business strategy and plans; exchange rate fluctuations; general economic conditical, 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 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.

First Quarter 2024 Results key indicators
| In K USD | Q1-2024 | Q1-2023 | Variance |
|---|---|---|---|
| Revenues | 34,088 | 25,217 | 8,871 - 35% |
| Gross profits | 7,066 | 4,259 | 2,807 - 66% |
| Gross Margin | 20.7% | 16.9% | 3.8bp |
| Adj. EBITDA | 3,677 | 2,079 | 1,598 - 77% |
| EBITDA Margin | 10.8% | 8.6% | 2.2bp |
| Net Income/ (loss) | 2,110 | 658 | 1,452 - 220% |
Improvement in all parameters compared to Q1-2023

UPWARD TREND IN REVENUE AND EBITDA STARTED IN Q4/22

Revenues & EBITDA (000' \$)

INVESTOR'S PRESENTATION - May 2024
4
Revenues and Profit
| TAT P&L (000'\$) | Q1-23 | Q2-23 | Q3-23 | Q4-23 | Q1-24 |
|---|---|---|---|---|---|
| Revenues | 25,217 | 26,804 | 29,935 | 31,836 | 34,088 |
| Gross Profit | 4.259 | 5,426 | 5,814 | 6,967 | 7.066 |
| Operating income | 948 | 1,531 | 1,759 | 1,835 | 2,208 |
| Net Profit | 658 | 1.475 | 2,151 | 387 | 2,110 |
| EPS (diluted, \$) | 0.074 | 0.17 | 0.24 | 0.04 | 0.19 |
| EBITDA | 2,079 | 2,580 | 3,009 | 3,407 | 3,677 |

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TAT UNIQUE PROPOSITION
EXPERIENCE AND EXPERTISE
Over 7 decades in defense and commercial aviation
DECADES OF EXCELLENCE
In MRO for Honeywell APU, Safran and Liebherr landing gears , and thermal components MRO
THERMAL SOLUTION
Over 60 years of design, production and repair of heat transfer solutions
OVER 300 CUSTOMERS
Partner with tier 1 aircraft manufacturers, system integrators and airlines
OVER \$400 MILLION Backlog and LTA
3 OPERATIONAL
SITES Greensboro NC, Tulsa OK, Kiryat Gat Israel

KEY STRATEGIC PRODUCT SEGMENTS

THERMAL SYSTEMS & COMPONENTS OEM AND MRO

APU-HONEYWELL AUTHORIZED MRO

LANDING GEARS-LIEBHERR & SAFRAN AUTHORIZED MRO

TOP MANAGEMENT

Amos Malka Chairman of the Board In position since June 2016
Maj. Gen. (ret.) Former Head of the Israeli Defense Intelligence and Commander of the IDF Ground Forces Command. Retired in 2002.
Previous Positions:
2007-2015 - Chairman of the Board of Logic Industries Ltd. 2007-2010 - Chairman of the Board of Plasan Sasa Ltd. 2002-2005 - CEO at Elul Technologies Ltd.

Mr. Igal Zamir President & CEO In position since April 2016

Mr. Ehud Ben Yair CFO In position since May 2018
Previous Positions:
2009-2013 - President at Mapco Express (subsidiary of Delek US Holdings Inc). 2006-2009-CEO at Metrolight Ltd. 1997-2004-CEO at Rostam Ltd.
Previous Positions:
2016-2017 - CFO at SHL Telemedicine (SHLTN) 2013-2016- CFO & Vice CEO at Opgal Optronics (Subsidiary of Elbit Systems and Rafael). 2005-2012 - CFO at Orad Hi-Tech Systems (OHT).
TAT IS DUALLY LISTED ON NASDAQ ("TATT") AND ON THE TEL- AVIV STOCK EXCHANGE (תתאת). MAIN SHAREHOLDER: FIMI 51%



STRATEGIC SHIFT - KEY ELEMENTS 2020 - 2024

STRATEGICSHIFTSTIMELINE- STARTED IN 2020

HONEYWELL STRATEGIC AGREEMENTS DURING 2020-21
| MRO FOR B757/767,C17 APU 1,500 AIRCRAFTS 10 years agreement Estimated annual market size of \$85M |
SIGNED 09/2020 |
18 ENGINES PURCHASED AS HONEYWELL ENGINE BANK FOR APU B777. EXCLUSIVE SIGNED CURRENTLY 1,600 AIRCRAFTS AND PRODUCTION 12/2020 IS ONGOING. 10 years agreement Annual estimated lease income of \$4.5M |
|---|---|---|
| MRO FOR B777 APU CURRENTLY 1,600 AIRCRAFT AND PRODUCTION IS ONGOING 10 years agreement Estimated market size of \$145M Annually First customer launched in June\23 |
SIGNED 12/2020 |
MRO FOR B737 & A 319-20-21 APU CURRENTLY 16,000 AIRCRAFT AND PRODUCTION IS SIGNED ONGOING 06/2021 10 years agreement Estimated market size of over \$1,000M annually. Production readiness by Q3\23 |
TAT Piedmont is licensed to serve most of Honeywell's APUs installed in about 19,000 aircrafts and gained full capabilities to serve all engines

HONEYWELL STRATEGIC DEALS POTENTIAL
| ENGINE | PLATFORM | CURRENT YEARLY MARKET SIZE |
TAT'S CURRENT MARKET SHARE |
MARKET SHARE POTENTIAL FOR THE COMING YEARS |
|---|---|---|---|---|
| 331-20X | B767,B757, C17 | \$85M | 29% | 53% / |
| 331-500 | B777 | \$145M | NONE | 10% |
| 131 | B737, A319-21 | \$1,000M | NONE | 5% |


REVENUE AND EBITDA GROWTH ENGINES FOR 2024-2025
SEVERAL STRONG PILLARS WILL SUPPORT THE GROWTH IN REVENUE AND EBITDA:
Strong demand for products and services as the industry is ramping out of COVID- strong backlog coverage for 2024-2025
Strong growth in APU331-200 for 2024 and 2025
Growth from APU131 and 331-500 with improved profitability as we start penetrating the market
2 strategic deals for landing gears
Trading and Leasing

NEW TECHNOLOGIES: LONG-TERM GROWTH POTENTIAL

THERMAL SYSTEMS FOR ELECTRICAL AIRCRAFT AND AUTONOMOUS AIRCRAFTS

ADDITIVE MANUFACTURING AND 3D PRINTING

CONFORMAL HEAT EXCHANGERS AND OIL COOLERS FOR ENGINES

LATEST INVESTOR NEWS


TAT Signs a new \$50M contract with a major airline Beaching 2
TAT signs a contract expansion valued \$6 million a year with Collins Read more

TAT signs a five years contract extension valued \$50M with a major airline Read more February 6, 2023

TAT received first APU331-500 order
Read more June 13,2023

TAT Signed a new \$7.5M contract with a major carrier Read more August 16, 2023

TAT completed a private placement to Israeli investors December 28, 2023 Read more

TAT signs a \$10 million contract with a major airline
January 16, 2024 Read more INVESTOR'S PRESENTATION - May 2024

APPENDICES PRODUCT LINES AND SERVICES


WE KEEP OUR CUSTOMERS FLYING


THERMAL MANAGEMENT
DESIGN, MANUFACTURE (OEM) AND MRO SERVICES FOR THERMAL MANAGEMENT SOLUTIONS


THERMAL MANAGEMENT SOLUTIONS



DESIGN, MANUFACTURING AND MRO SERVICES FOR POWER AND ACTUATION SOLUTIONS

APU

LANDING GEARS

FUEL SYSTEM ACCESSORIES

ECS ACCESSORIES

BLADES

COOLING SYSTEMS ACCESSORIES

PUMPS



First Quarter 2024 Results key indicators
| In K USD | Q1-2024 | Q1-2023 | Variance |
|---|---|---|---|
| Revenues | 34,088 | 25,217 | 8,871 - 35% |
| Gross profits | 7,066 | 4,259 | 2,807 - 66% |
| Gross Margin | 20.7% | 16.9% | 3.8bp |
| Adj. EBITDA | 3,677 | 2,079 | 1,598 - 77% |
| EBITDA Margin | 10.8% | 8.6% | 2.2bp |
| Net Income/ (loss) | 2,110 | 658 | 1,452 - 220% |
Improvement in all parameters compared to Q1-2023


UPWARD TREND IN REVENUE AND EBITDA STARTED IN Q4/22

Revenues & EBITDA (000' \$)

25

| Revenues By Product (000' \$) | Q1 2023 | 02 2023 | Q3 2023 | Q4 2023 | Q1 2024 | YOY |
|---|---|---|---|---|---|---|
| Heat Exchange | 9,789 | 10,287 | 12,480 | 13,311 | 14,197 | 45% |
| APU | 6,832 | 7,228 | 8,231 | 9,152 | 9,171 | 34% |
| Trading & Leasing | 1,811 | 2,564 | 1,770 | 2,237 | 2,901 | 60% |
| Accessories | 1,830 | 1,890 | 1,686 | 1,440 | 2,870 | 57% |
| Landing Gears | 1,965 | 1,745 | 2,502 | 2,315 | 1,478 | -25% |
| Others | 2,991 | 3,086 | 3,267 | 3,300 | 3,472 | 16% |
| Total Revenues | 25,218 | 26,801 | 29,936 | 31,755 | 34,088 | 35% |
| YoY | 27% | 23% | 43% | 36% | 35% |
Product segment growth works according to our strategy
UPWARD TRENDING REVENUE


27
Improve Profit and Margins
Gross Profit & Margins (000%)

* Q4-22 include Grants

28


Technologie

500
During the period TAT was awarded contracts of over 40M\$

LTA & Orders (M\$)




INVESTOR'S PRESENTATION - May 2024
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TAT Technologies (NASDAQ:TATT) Multiples

174 Technologie
INVESTOR'S PRESENTATION - May 2024
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