Investor Overview
March 2024
FORWARD LOOKING STATEMENT
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are often, but not always, identified by words such as "anticipate", "believe", "expect", "plan", "intend", "project", "may", "will", "should", "could", or similar words suggesting future outcomes or outlooks. These forward-looking statements include, but are not limited to, statements of expectations of or assumptions about strategic actions (including the ability to complete previously announced transactions),
objectives, expectations, intentions, aerospace market conditions, aircraft production rates, financial and operational performance, including with respect to preliminary results of discontinued operations, revenue and earnings growth and profitability and earnings results. These statements are based on the current projections, expectations and beliefs of TRIUMPH's management. These forward looking statements involve known and unknown risks, uncertainties and other factors which could cause actual results to differ materially from any expected future results, performance or achievements, including, but not limited to, competitive and cyclical factors relating to the aerospace industry, dependence on some of TRIUMPH's business from key customers, requirements of capital, uncertainties relating to the integration of acquired businesses, general economic conditions affecting TRIUMPH's business segments, product liabilities in excess of insurance, technological developments, limited availability of raw materials or skilled personnel, changes in governmental regulation and oversight, international hostilities and terrorism and bondholder response to any offer of ours to repurchase their notes. Further information regarding the important factors that could cause actual results, performance or achievements to differ from those expressed in any forward-looking statements can be found in TRIUMPH's reports filed with the SEC, including in the risk factors described in TRIUMPH's Annual Report on Form 10-K for the fiscal year ended March 31, 2023.
The presentation contains Non-GAAP measures. Please see slides titled "Non-GAAP Disclosures" for more information.
TRIUMPH / Investor Overview / Mar 2024 | 2
Business Overview
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TRIUMPH / Investor Overview / Mar 2024 | 3
TRIUMPH's Continuing Operating Companies
FY23 Sales by End Market | ||
Non-Aviation 4% | ||
Military MRO | Commercial OEM | |
15% | 47% |
Commercial
MRO 11%
Military OEM
23%
FY23 Relative Profit
Non-Aviation 4%
OEM Production
45%
Aftermarket
51%
Note: Operating companies presented in the chart based on relative net sales contribution. TRIUMPH / Investor Overview / Mar 2024 |
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Sale of Product Support
- TRIUMPH Product Support is an industry leader in the Maintenance, Repair and Overhaul (MRO) of structures and airframe and engine accessories.
- Purchase price for $725 M (approximately 14.5x TTM 9/30 earnings)
- Transaction allows TRIUMPH to meaningfully de-lever and focus on IP-based businesses
- Expected close this quarter…straight-forward carve out
- TRIUMPH continuing IP-based Aftermarket was ~26% of Q3 sales
Product Support Sale Transformative for TRIUMPH
Thrust Reversers
Air Cycle Machine
Flight Controls
TRIUMPH / Investor Overview / Mar 2024 | 5
Q3 FY'24 Takeaways
Strong organic sales growth; Positive free cash flow; Supply chain pacing earnings
Product Support sale
and related
deleveraging on track
Sales by End Market (Q3 FY24)
Non-Aviation 3%
Military AM
13%Commercial OEM
50%
Commercial AM
12%
Military OEM
22%
Organic Growth 13%
Aftermarket 26% of sales
Backlog up 18%
~$40M in cost reduction
actions underway
Relative Profit (Q3 FY24)
Non-Aviation 1%
OEM Production
40%
Aftermarket
59%
TRIUMPH / Investor Overview / Mar 2024 | 6
Commercial Sales - Q3 FY'24
Accelerating Commercial OEM & MRO demand | ||||
OEM Commercial | MRO Commercial | |||
$142 | $35 | $31 | ||
$120 | ||||
Q3 FY'24 | Q3 FY'23 | Q3 FY'24 | Q3 FY'23 |
Increases in 737, 787 and A320 family | Increased volumes across A320 and | ||
offset decreases from Bell 429 | A380 program repairs and spares | ||
Profitability up on volume, operational | Profitability up on volume | ||
efficiencies and pricing |
TRIUMPH / Investor Overview / Mar 2024 | 7
Military Sales - Q3 FY'24
Military OEM and MRO volumes down slightly due to delayed deliveries
Military OEM | Military MRO | |||
$61 | $62 | $38 | $39 |
Q3 FY'24 | Q3 FY'23 | Q3 FY'24 | Q3 FY'23 |
Decreased V-22 & UH-60 deliveries, offset | Decline in UH-60 and C-5 spares, offset | ||
favorable timing on CH-53K and F-35 | increases in CH-47 | ||
programs | |||
Profitability consistent year-over-year | |||
Profitability improved on changes in mix | |||
and pricing |
TRIUMPH / Investor Overview / Mar 2024 | 8
Key Investment Highlights
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TRIUMPH / Investor Overview / Mar 2024 | 9
TRIUMPH: A Compelling Investment
IP focused company following portfolio transformation
Focus on Triumph Operating System to drive operational excellence
Leaner, more profitable company with higher | Anticipate positive FCF for fiscal 2024 |
concentration in attractive end markets |
Enhanced exposure to the aftermarket industry is contributing to growth
Margin expansion driven by quality of backlog, end market demand and IP solutions
Emphasis on delivering innovative solutions to enhance aircraft sustainability
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Disclaimer
Triumph Group Inc. published this content on 20 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2024 14:53:02 UTC.