carlisle investor day franklin, wi -...
TRANSCRIPT
Forward Looking Statements
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements
generally use words such as “expect,” “foresee,” “anticipate,” “believe,” “project,” “should,” “estimate,” “will,” “plans,” “forecast,” and similar expressions, and reflect
our expectations concerning the future. It is possible that our future performance may differ materially from current expectations expressed in these forward-looking
statements, due to a variety of factors such as: increasing price and product/service competition by foreign and domestic competitors, including new entrants;
technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; our mix of
products/services; increases in raw material costs which cannot be recovered in product pricing; domestic and foreign governmental and public policy changes
including environmental and industry regulations; threats associated with and efforts to combat terrorism; protection and validity of patent and other intellectual
property rights; the successful integration and identification of our strategic acquisitions; the cyclical nature of our businesses; and the outcome of pending and future
litigation and governmental proceedings. In addition, such statements could be affected by general industry and market conditions and growth rates, the condition of
the financial and credit markets, and general domestic and international economic conditions including interest rate and currency exchange rate fluctuations. Further,
any conflict in the international arena may adversely affect general market conditions and our future performance. We refer you to the documents we file from time
to time with the Securities and Exchange Commission, such as our reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of these and other risks and
uncertainties that could cause our actual results to differ materially from our current expectations and from the forward-looking statements contained in this press
release. We undertake no obligation to update any forward-looking statement.
Critical Connections
WE MAKE THE AMAZING POSSIBLE BY DELIVERING
CRITICAL CONNECTIONS WHEN PERFORMANCE
MATTERS
CIT Key Capabilities
Global Interconnect
SolutionsQuickly respond to customer challenges
with industry leading design,
development and manufacturing of
interconnect products.
Leader in Harsh
EnvironmentsLead in reliability and consistency to be a
preferred supplier of interconnect
products across markets.
Lean Manufacturing CultureDesign and implement proprietary
Carlisle Operating System (COS) for
world class operational execution and
reduced lead times.
Vertical IntegrationSupport an extensive range of
customized product solutions on a global
scale, from components and kits to
design and certification.
New Product
DevelopmentAnticipate customer needs; invest in
leading edge performance and
product innovation for the right
solution.
Logistics and Service
ExcellenceExecute a future fully integrated global
SAP system for superior efficiency and
flexibility to adapt to customers’
demands.
Commercial Aerospace
› Airframe› Avionics and Cabin Management› IFEC and SATCOM› Jet Engines› Maintenance Repair Organization
(MROs)
Medical
› Patient Monitoring› Surgical› Electrosurgical› Ultrasound› Interventional› Medical Suite Interconnects
Military and Defense
› Aerospace Defense› C4ISR› Electronic Warfare› Unmanned Aerial Vehicles (UAVs)› Vehicle LAN & Databus› Weapon Control, Sensors
Breadth of Capabilities
Military and Defense
› C4ISR› Electronic Warfare› Sensors› Vehicle LAN & Databus› Weapon Control
Test and Measurement
› Oscilloscopes and Analyzers› Automatic Test Equipment› Switch Matrix and BERTs› Semiconductor Test› Handheld Test Equipment
Space
› Satellites› Spacecraft› Launchers› Payload› Equipment Manufacturers› Ground Test Support
Industrial
› Automotive› Energy Storage› Heavy Equipment› Industrial Automation› Oil and Gas› Rail and Mass Transit
Breadth of Capabilities
Wire and Cable
‹ Commercial UL/CSA Wire
‹ Composite Aerospace Wire
‹ Fiber Optic Cable
‹ Medical Fine Wire & Coax
‹ Harsh Environment Engine, Thermazone™ & SWAMP Wire
‹ High Performance Coaxial Cable
‹ High Speed Digital Data Cable
‹ Mil-Spec Hookup
‹ Industrial Wire & Cable
‹ Custom Cable Designs
‹ Space-Grade Coax & Semi-Rigid Cable
Harsh Environment Contacts & Crimp Splices
‹ Signal
‹ Power
‹ Thermocouple
‹ Coaxial
‹ Twinax & Triax
‹ Crimp, Solder Cup and Wire Wrap
‹ Custom‹ Sealed Crimp Splices‹ Heatless Crimp Splices
Connectors
‹ RF/Microwave Connectors‹ DC-70GHz‹ CoreGD/CoreHC
High Density Solutions‹ Specialty Connectors
‹ EMI Filters‹ Transient Voltage Suppression‹ High Density Digital
‹ Octax® Ultra High-Speed Data Connectors
‹ Back Shells and Accessories
Power and Grounding
‹ Terminal Lugs and Splices‹ Aluminum‹ Copper‹ Solid Nickel designs for
high vibration environments‹ Terminal & Grounding Blocks‹ Power & Grounding Assemblies
Cable Assemblies
‹ Avionics RF Assemblies‹ Data Bus, Power & Video Assemblies‹ Fiber Optic Assemblies‹ Harness Assemblies‹ High Density Coaxial Assemblies‹ Control Panel Assemblies‹ RF/Microwave Assemblies‹ Medical Assemblies
Services
‹ Engineering Services‹ Certification Services‹ Qualification Testing‹ On-site DER and DMIR‹ Kitting Solutions‹ Custom Overbraiding‹ Molding & Potting‹ Build-to-Print Manufacturing‹ Aftermarket‹ 24/7 Aircraft on Ground (AOG)
Structures
‹ Adapter Plates‹ Antenna Mounts & Accessories‹ Custom Structural Components‹ Enclosures ‹ IFEC Rack‹ Rack & Shelf Assemblies‹ Tray & Tray Accessories
▪ Universal A791 Adapter Plate
– Innovative Modular Design
≫Adapts to Multiple Airframes
≫Adapts to Multiple Antennas
≫Optimized Antenna Fixture
– Many Customer Specific Configurations
Line Fit Installations at Airbus (All Models)
• CarlisleIT Adapter plate with Honeywell JetWave antenna and Saint-Gobain Ka-band Radome
• Flight test aircraft installations completed in September 2016
• A380 completed in December 2016
• A330 scheduled for July 2017
Boeing and Airbus Backlogs Remain Robust
Total
10,828
Total
2,546
Widebody product introduction overlap impacting short term revenue – but adding growth mid to long term
777777X – A350 ramp through 2020 – A330 A330neo
CIT has more content on all new platforms including A320neo and 737MAX
CIT will also gain from new entrants including Cseries, E2 and C919
Narrow body versus Wide body
• Wide Body Aircraft will have fully embedded seat back IFEC systems line fit at Boeing and Airbus
• ~90% of the wide body planes are line fit with IFEC systems
• It appears that Narrow Body will not have IFEC seat back systems installed as a line fit option
• Narrow body is a big target market for SatCom connectivity
• Much larger part of the overall market
• Boeing and Airbus combined are producing over 100 narrow body airplanes per month
• 737 family
• A320 family
IFE System Technology Shift
• 4 years ago SatCom started to take root as a new path forward for IFE systems integrators
• Seat back imbedded IFE vs. wireless IFE solutions
• We saw this coming and focused our New Product Development on SatCom
• ARINC 791 Universal Solution
• CIT leveraged its ability to “self fund” engineering to develop a leading position in SatCom Adapter Plates and associated wiring harnesses
The Good News is CIT has a leading position on the next
Generation of IFEC Technology
Market Growth Drivers of SatCom on Airplanes
• Passengers expect the same connectivity performance in the air as they have on the ground
• Millennials – big part of the flying public – demand high bandwidth
• High Band Width Satellites will provide the technology to:• Stream video to the passenger’s device
• Watch Live Television
• Provide pilots with high bandwidth communications in the cockpit
• Satellite tracking of airplane position
Product Life Cycle IFE Technology Shift
SA
LE
S
TIME
2016 2017 2018
ARINC 791Legacy Cable Intensive
IFE Systems
Sales Gap
20252003
In-Flight SatCom Market Dynamics
Equipment and Connectivity Service Provider
OEM or MRO End User
Aircraft Operators
Line Fit
Retrofit
Interconnect Hardware Manufacturer
IFC Retrofit Market
23
• Retrofit Market is largest segment of the Connectivity market
• Most Major Airlines expected to retrofit to remain competitive
IFC Line Fit Market
24
• Line Fit Opportunity is significant at all major Commercial Aerospace OEMs
It is conceivable that every airplane coming off the Airbus
and Boeing Production Line could have SatCom Line Fit
In-flight Connectivity Outlook
Total revenues from passenger connectivity services are expected to grow from $700 million in 2015
to nearly $5.4 billion by 2025, a 23% CAGR over the 10-year period.
✓ Number of connected commercial aircraft
• Expected to grow from 5,300 to
23,100 over the 2017 - 2025 Period
✓ Accounting for 62% of the Global Fleet
Source: Euroconsult Feb-2016
CIT Advantage
In House Engineering
- Design
- Verification
- Validation
- Certification
Vertically Integrated Manufacturing
- Machining
- Chem Film
- Paint
- Full Assembly with Wire Harness
Strong Financial Partner/Supplier
- Investments in CAPEX
- Self Funded Engineering Design
- Next Generation R&D
Global Capability and Support
- EMEA
- APAC
- South America
CIT Competitive Positioning
• Strategic Rationale• Greatly Expanded CIT’s Design, Certification and Validation Engineering Capability
• Expanded Customer Relationships
• Positioned CIT as the leading supplier to the market leaders
• Greatly increased CIT’s capability to address the retrofit IFC marketplace
Acquisition of
CIT and Star Aviation combined have ~60 engineers on staff dedicated to the design, certification, validation and manufacture of IFC ARINC 791/792 Systems
CIT Solution provides a clear upgrade path
ARINC 791 Elliptical Dish Antenna ARINC 792 Flat Panel Antenna
Future systems will incorporate flat panel technology antennas which provides lower drag, lighter weight, and even higher potential data rates.
Franklin Facility
Site Facts:106,000 sq. ft – Manufacturing30,000 sq. ft. – Office & Engineering
2016 2017
30,000 sq. ft. addition completed
Named Airbus supplier of the year
26,000 sq. ft. addition completed
Facility Tour Highlights – 5-Axis Machining Centers
CMS PoseidonTwo 5-axis heads8’ x 26’ working area
Fooke Endura GantryOne 5-axis heads7’ x 11’ working area
DMU 60 eVoOne 5-axis head24” x 20” working area
DMC 160U duoBLOCKOne 5-axis head6’ x 5’ working area
DMC 100 duoBLOCKOne 5-axis head4’ x 3’ working area