PART I FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=ITEM%201%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 FY2023, including balance sheets, income, cash flows, and notes on acquisitions, debt, and segment performance [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2022, total assets increased to **$18,489 million**, while total liabilities slightly decreased to **$21,817 million**, leading to an improved stockholders' deficit of **$(3,328) million** Condensed Consolidated Balance Sheet Highlights (in millions) | Account | Dec 31, 2022 | Sep 30, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $3,288 | $3,001 | | Total current assets | $5,929 | $5,649 | | Goodwill | $8,719 | $8,641 | | Total Assets | $18,489 | $18,107 | | **Liabilities & Stockholders' Deficit** | | | | Total current liabilities | $1,408 | $1,426 | | Long-term debt | $19,375 | $19,369 | | Total liabilities | $21,817 | $21,873 | | Total stockholders' deficit | $(3,328) | $(3,766) | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For Q1 FY2023, net sales grew **17.0%** to **$1,397 million**, driving a **39.9%** increase in net income to **$228 million**, and diluted EPS reaching **$3.33** Statement of Income Summary (in millions, except per share data) | Metric | Q1 FY2023 (ended Dec 31, 2022) | Q1 FY2022 (ended Jan 1, 2022) | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $1,397 | $1,194 | 17.0% | | Gross Profit | $793 | $661 | 20.0% | | Income from Operations | $590 | $455 | 29.7% | | Net Income Attributable to TD Group | $228 | $163 | 39.9% | | Diluted EPS | $3.33 | $1.98 | 68.2% | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q1 FY2023, net cash from operating activities increased to **$377 million**, with **$41 million** used in investing and **$65 million** in financing, reflecting debt refinancing Cash Flow Summary (in millions) | Activity | Q1 FY2023 (ended Dec 31, 2022) | Q1 FY2022 (ended Jan 1, 2022) | | :--- | :--- | :--- | | Net cash provided by operating activities | $377 | $279 | | Net cash used in investing activities | $(41) | $(25) | | Net cash used in financing activities | $(65) | $(225) | | Net increase in cash and cash equivalents | $287 | $26 | | Cash and cash equivalents, end of period | $3,288 | $4,813 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide critical details supporting the financial statements, including the **$359 million** DART Aerospace acquisition, debt refinancing, strong segment growth, and legal contingencies - On May 25, 2022, the Company acquired DART Aerospace for a total purchase price of **$359 million** in cash[15](index=15&type=chunk) - On December 14, 2022, the Company refinanced approximately **$1,725 million** in Tranche G term loans with new Tranche H term loans maturing in **February 2027**, bearing interest at **Term SOFR plus 3.25%**[40](index=40&type=chunk) Net Sales by Segment (in millions) | Segment | Q1 FY2023 | Q1 FY2022 | | :--- | :--- | :--- | | Power & Control | $725 | $650 | | Airframe | $637 | $506 | | Non-aviation | $35 | $38 | | **Total Net Sales** | **$1,397** | **$1,194** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=ITEM%202%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong Q1 FY2023 performance, highlighting **17.0%** net sales growth from commercial aerospace recovery, expanded gross profit margin, and robust liquidity with extended debt maturities [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Net sales increased by **$203 million (17.0%)** in Q1 FY2023, driven by strong commercial aftermarket and OEM sales, leading to a gross profit margin improvement to **56.8%** Net Sales Change Analysis (in millions) | Sales Type | Q1 FY2023 | Q1 FY2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Organic sales | $1,375 | $1,194 | $181 | 15.2% | | Acquisition sales | $22 | $— | $22 | 1.8% | | **Net sales** | **$1,397** | **$1,194** | **$203** | **17.0%** | - The increase in organic sales was primarily driven by a **$115 million (33.5%)** rise in commercial aftermarket sales and a **$53 million (21.0%)** increase in commercial OEM sales, reflecting the continued recovery in air travel and aircraft production[98](index=98&type=chunk) - Gross profit as a percentage of net sales increased by **1.4 percentage points** to **56.8%**, primarily due to fixed overhead costs being spread over higher production volume and a favorable sales mix with higher commercial aftermarket sales[100](index=100&type=chunk) [Business Segments](index=30&type=section&id=Business%20Segments) Both Power & Control and Airframe segments showed strong growth in Q1 FY2023, driven by commercial aerospace recovery and the DART acquisition, with significant increases in net sales and EBITDA As Defined EBITDA As Defined by Segment (in millions) | Segment | Q1 FY2023 | Q1 FY2022 | % Change | | :--- | :--- | :--- | :--- | | Power & Control | $401 | $328 | 22.3% | | Airframe | $312 | $226 | 38.1% | | Non-aviation | $14 | $14 | 0.0% | | **Total segment EBITDA As Defined** | **$727** | **$568** | **28.0%** | - The Airframe segment's EBITDA As Defined from acquisitions increased by **$6 million** due to the impact of the **DART acquisition**[108](index=108&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position with substantial cash and available credit, generating significant operating cash flow, and strategically managed its debt by refinancing term loans to extend maturities Cash Liquidity as of December 31, 2022 (in millions) | Component | Amount | | :--- | :--- | | Cash and cash equivalents | $3,288 | | Availability on revolving credit facility | $779 | | **Total Cash liquidity** | **$4,067** | - The company's capital allocation priorities are: (1) **capital spending**, (2) **acquisitions**, (3) **special dividends and/or stock repurchases**, and (4) **debt prepayment**[113](index=113&type=chunk) - There is no maturity on any tranche of term loans or notes until **May 2025**, providing **significant financial flexibility**[117](index=117&type=chunk) [Quantitative and Qualitative Disclosure About Market Risk](index=41&type=section&id=ITEM%203%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) No material changes to market risks were reported for Q1 FY2023 compared to the fiscal year ended September 30, 2022 - Market risks have **not materially changed** for the first quarter of fiscal year 2023 compared to the fiscal year ended September 30, 2022[165](index=165&type=chunk) [Controls and Procedures](index=41&type=section&id=ITEM%204%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of December 31, 2022, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of December 31, 2022, the Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures are **effective**[166](index=166&type=chunk) - **No changes** in internal control over financial reporting occurred during the fiscal quarter that **materially affected**, or are reasonably likely to materially affect, the company's internal controls[167](index=167&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=42&type=section&id=ITEM%201%20Legal%20Proceedings) The company reports no material adverse effect from legal proceedings, including the settlement of a derivative lawsuit and disagreement with a DOD OIG audit report recommending a **$20.8 million** refund - A derivative complaint filed in 2021 regarding director compensation was **settled**, with the court approving the settlement on November 10, 2022, and is **not expected to have a material adverse impact**[77](index=77&type=chunk)[78](index=78&type=chunk) - In response to a DOD OIG audit report recommending a voluntary refund of **$20.8 million**, TransDigm **disagrees** with the report's methodology and conclusions and has **not recorded a loss contingency** as of December 31, 2022[79](index=79&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk) [Risk Factors](index=42&type=section&id=ITEM%201A%20Risk%20Factors) No material changes to risk factors were reported compared to the Form 10-K filed on November 10, 2022 - There have been **no material changes** to the risk factors described in the Form 10-K filed on November 10, 2022[171](index=171&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=ITEM%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds%3A%20Purchases%20of%20Equity%20Securities%20by%20the%20Issuer) The company made no stock repurchases in Q1 FY2023, with **$1,288 million** remaining available under the **$2,200 million** stock repurchase program - **No stock repurchases** were made during the first quarter of fiscal 2023[173](index=173&type=chunk) - As of December 31, 2022, **$1,288 million** remains available for repurchase under the existing **$2,200 million** stock repurchase program[173](index=173&type=chunk) [Other Information](index=42&type=section&id=ITEM%205%20Other%20Information) Halle Martin, General Counsel, retired effective February 3, 2023, with a Separation and Consulting Agreement allowing continued stock option vesting and consulting services - Halle Martin, General Counsel, **retired on February 3, 2023**. A **Separation and Consulting Agreement** was executed, allowing for **continued vesting** of certain stock options and providing for future consulting services[174](index=174&type=chunk) [Exhibits](index=43&type=section&id=ITEM%206%20Exhibits) This section lists exhibits filed with the Form 10-Q, including Credit Agreement amendments, subsidiary guarantors, and SOX certifications

TransDigm Group Incorporated (NYSE:TDG) Q4 2022 Earnings Conference Call November 10, 2022 11:00 AM ET Company Participants Jaimie Stemen - Director of Investor Relations Kevin Stein - President, Chief Executive Officer, and Director Jorge Valladares - Chief Operating Officer Mike Lisman - Chief Financial Officer Conference Call Participants Myles Walton - Wolfe Research Robert Spingarn - Melius Research Robert Stallard - Vertical Research Noah Poponak - Goldman Sachs & Co. Sheila Kahyaoglu - Jefferies Gaut ...

Financial Performance - Approximately 55% of net sales in fiscal year 2022 were generated from aftermarket revenue, primarily from commercial and military aftermarkets[13] - The company achieved steady long-term growth in sales and improvements in operating performance, focusing on profitable new business and cost control[14] - Research and development costs represented approximately 5% of consolidated net sales for fiscal year 2022[27] - The defense market accounted for approximately 43% of net sales for fiscal year 2022, while the commercial aerospace OEM market accounted for 21%[29] - The top ten customers represented approximately 41% of net sales in fiscal year 2022, with no single customer exceeding 10% of total net sales[31] - Approximately 29% of net sales for fiscal year 2022 came from the commercial, regional, business jet, and general aviation aftermarket[29] - In fiscal year 2022, defense market net sales accounted for 43% of total net sales, a decrease from 50% in fiscal year 2021, indicating a shift as the commercial aerospace industry recovers[30] - The company reported net sales to foreign customers of approximately $1.9 billion for the fiscal year ended September 30, 2022[103] - The company’s commercial business is sensitive to the number of flight hours and the profitability of the airline industry, which are influenced by economic conditions[128] Market Dynamics - The demand for commercial aftermarket parts is influenced by revenue passenger miles (RPMs), the size and age of the aircraft fleet, and airline profitability, with RPMs steadily improving in fiscal 2022[32][43] - The commercial OEM market remained depressed in fiscal 2022 due to COVID-19 impacts and supply chain disruptions, but both Boeing and Airbus are planning production rate increases for calendar 2023[44] - The military business is subject to unpredictability due to government budget constraints and shifting funding priorities, although recent DOD budgets have trended upwards[46] - The COVID-19 pandemic has disrupted the global supply chain, particularly affecting the availability of electronic parts used in defense products[48] - The airline industry has faced significant losses due to reduced traffic, leading to decreased demand for spare parts and potential impacts on financial condition and cash flow generation[129] Product and Service Offerings - The company’s major product offerings include mechanical/electro-mechanical actuators, ignition systems, and specialized pumps and valves[18] - The company has a diversified product range, including mechanical/electro-mechanical actuators, ignition systems, and specialized pumps, primarily serving the aerospace industry[16] - The company aims to develop technical solutions that lead to high-margin, repeatable sales in the aftermarket, aligning with its overall strategy[23] - The company’s segments include Power & Control, Airframe, and Non-aviation, each focusing on different product offerings and customer bases[17][19][20] Operational Efficiency - The company maintains approximately 100 manufacturing facilities to enhance productivity and reduce costs[26] - EBITDA As Defined is the primary measurement used to assess operating performance, which includes adjustments for non-operating items[21] - Engineering and research and development expenses represent approximately 10% of the operating units' aggregate costs, or about 5% of consolidated net sales for fiscal year 2022[27] - The company has structured its sales efforts to focus on major product offerings, with business unit managers responsible for sales growth and profitability[24] - The company relies on major distributors such as Boeing Distribution Services, Inc. and AAR Corp. for logistical support and customer contact[25] Human Resources and Development - As of September 30, 2022, the company employed approximately 14,400 individuals, with 17% represented by labor unions[52] - The company has established TransDigm University to enhance employee skills and retention through formal mentoring and education programs[54] - The Management Development Program (MDP) recruits MBA graduates to prepare them for management roles within the company, focusing on hands-on experience in aerospace operations[55] - The company offers competitive compensation programs, including base pay, bonuses, and equity programs, to attract and retain talent[58] - Approximately 35% of past and present Management Development Program participants are gender and racially diverse, with efforts to improve this percentage[62] Financial Position and Debt Management - As of September 30, 2022, the company's total indebtedness was approximately $20 billion, representing 123.5% of total book capitalization[81] - Approximately 85% of the company's total debt was fixed rate as of September 30, 2022, mitigating exposure to interest rate fluctuations[83] - The company intends to pursue acquisitions to support growth, with a focus on finding suitable candidates at favorable prices[78] - The company has approximately $779 million of unused commitments under its revolving credit facility as of September 30, 2022[82] - The company's indebtedness increases the risk of insufficient cash flow to meet debt obligations, potentially leading to reduced capital investments or asset sales[85] Regulatory and Compliance Issues - The company is subject to unique business risks due to its contracts with the U.S. Government, which can be terminated at the government's convenience[106] - The company may incur substantial costs related to compliance with evolving data protection laws, including GDPR and CCPA[115] - The company has experienced data security incidents, although they have not materially impacted financial results[116] - Environmental liabilities are subject to uncertainties, and adjustments in accruals may be necessary as investigations proceed[120] - The company is subject to stringent regulatory requirements from the FAA and other aviation authorities, impacting its operations and product certifications[36] Environmental and Social Responsibility - The company has established a greenhouse gas emissions reduction target of at least a 50% reduction in Scope 1 and Scope 2 emissions by 2031, using fiscal 2019 as the baseline year[100] - The company is developing new environmentally friendly products and touch-free aircraft lavatory suite products to enhance passenger safety[45] - The company has implemented unconscious bias training for its Board of Directors and management to enhance diversity and inclusion[62] - The company is committed to maintaining high ethical standards and equal employment opportunities across all personnel actions[63] - The company has a commitment to health and safety, requiring monthly reporting on Environmental Health and Safety matters from operating units[65]

TransDigm Group, Inc. (NYSE:TDG) Q3 2022 Earnings Conference Call August 9, 2022 11:00 AM ET Company Participants Jaimie Stemen - Manager, Financial Reporting Kevin Stein - President, CEO & Director Jorge Valladares - COO Michael Lisman - CFO Conference Call Participants David Strauss - Barclays Bank Kenneth Herbert - RBC Capital Markets Noah Poponak - Goldman Sachs Group Nicholas Zhang - Credit Suisse Michael Ciarmoli - Truist Securities Gautam Khanna - Cowen and Company Kristine Liwag - Morgan Stanley Rob ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended July 2, 2022 ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 001-32833 TransDigm Group Incorporated (Exact name of registrant as specified in its charter) Delaware (State or other jurisdictio ...

FY 2022 Q2 Earnings Call May 10, 2022 Agenda TransDigm Overview, Highlights and Outlook Kevin Stein President and CEO Market Review Jorge L. Valladares III COO Operating Performance and Financial Results Mike Lisman CFO Q&A 1 Forward Looking Statements & Special Notice Regarding Pro Forma and Non‐GAAP Information FORWARD LOOKING STATEMENTS This presentation contains forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including information regarding our guid ...

Financial Data and Key Metrics Changes - The company reported EBITDA of approximately $633 million for Q2, up 22% compared to the prior year [44] - EBITDA margin was approximately 47.7%, representing a year-over-year improvement of about 420 basis points [45] - Free cash flow for the quarter was roughly $222 million, slightly lower due to timing issues [47] - The net debt to EBITDA ratio improved to 6.6x, down from 8.2x at its peak [52] Business Line Data and Key Metrics Changes - Total commercial OEM revenue increased approximately 28% in Q2 compared to the prior year [32] - Total commercial aftermarket revenue increased by approximately 46% in Q2 compared to the prior year [34] - Defense market revenue decreased by approximately 2% in Q2 compared to the prior year [41] Market Data and Key Metrics Changes - Domestic leisure travel recovery is driving the commercial aerospace market, while international travel is slowly improving [12][14] - Global revenue passenger miles remain depressed but have shown improvement since January [35] - IATA expects passenger traffic to return to pre-pandemic levels in 2023, a year earlier than previously forecasted [37] Company Strategy and Development Direction - The company focuses on proprietary aerospace businesses with significant aftermarket content, aiming for private equity-like returns with public market liquidity [10] - Capital allocation includes share repurchases, acquisitions, and dividends, with all options remaining on the table [21] - The company is actively looking for M&A opportunities that fit its model, with a decent pipeline of possibilities [22] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the recovery in commercial aerospace, despite ongoing challenges from COVID-19 and supply chain issues [11][24] - The company expects to reinitiate guidance in November 2022, assuming favorable conditions continue [23] - Full-year fiscal 2022 EBITDA margin is expected to approach 48% due to the recovery in commercial aftermarket [27] Other Important Information - The company repurchased approximately 1 million shares for $667 million at an average price of $637 per share [17] - The acquisition of DART Aerospace for approximately $360 million is expected to close in the second half of fiscal 2022 [18] Q&A Session Summary Question: What is the revenue exposure to China and any short-term impacts from COVID lockdowns? - Management noted that China is included in current numbers, with depressed flight activity but some signs of recovery in the rest of Asia [59] Question: Why is the aerospace aftermarket business growing faster than the end market? - Management indicated that orders and shipments can be lumpy, and they do not have specific commentary on outperforming the market [65] Question: What is the outlook for labor recruitment and attrition? - Management observed pressures at lower levels of direct labor but feels properly resourced to support improvements in the commercial aftermarket [72] Question: What is the long-term outlook for defense sales growth? - Management remains optimistic about future defense budgets, although it takes time for these to trickle down to component suppliers [74] Question: How is the company addressing supply chain disruptions? - Management acknowledged ongoing challenges primarily with electronic components but expects to clear many of these issues by the end of the year [107] Question: How does the company view inventory levels across the industry? - Management believes the destocking cycle is running out of gas, with airlines preparing for a busy summer travel season [101] Question: What are the expectations for defense revenue growth in the second half of the year? - Management expects a ramp-up in defense revenue, supported by strong bookings and the passage of the DoD budget [106]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended April 2, 2022 ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 001-32833 TransDigm Group Incorporated (Exact name of registrant as specified in its charter) Delaware (State or other jurisdicti ...

TransDigm Group Incorporated (NYSE:TDG) Q1 2022 Earnings Conference Call February 8, 2022 11:00 AM ET Company Participants Jaimie Stemen - Director, IR Kevin Stein - President, CEO and Director Jorge Valladares - COO Mike Lisman - CFO Conference Call Participants Myles Walton - UBS Elizabeth Grenfell - Bank of America Merrill Lynch David Strauss - Barclays Ken Herbert - RBC Capital Markets Robert Spingarn - Melius Research Robert Stallard - Vertical Research Partners Peter Arment - Robert W. Baird Matt Aker ...

FY 2022 Q1 Earnings Call February 8, 2022 Agenda TransDigm Overview, Highlights and Outlook Kevin Stein President and CEO Market Review Jorge L. Valladares III COO Operating Performance and Financial Results Mike Lisman CFO Q&A 1 Forward Looking Statements & Special Notice Regarding Pro Forma and Non‐GAAP Information FORWARD LOOKING STATEMENTS This presentation contains forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including information regarding our ...