Slide 1: AAON, Inc. Investor Presentation
Norm Asbjornson, President & CEO AAON, Inc. Investor Presentation 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements and information set forth in this presentation contains “forward-looking statements” and “forward-looking information” within the meaning of the Private Securities Litigation Reform Act of 1995. Except for statements of historical fact, certain information
Slide 3: AAON provides designs of the highest quality and performance that lead the HVAC industry
AAON provides designs of the highest quality and performance that lead the HVAC industry AAON offers innovative and differentiated products Provide more than just equipment; provide solutions Energy efficiency and “green” features currently drive the market – AAON is a leader in both Marke
Slide 4: Manufacturing Locations
Manufacturing Locations Two Facilities: Tulsa, Oklahoma Current 1.3M Sq. Ft. Upcoming Expansions 66,000 Sq. Ft Longview, Texas Current with Expansion 263,000 Sq. Ft. 4 Rooftop Units, Outdoor Mechanical Rooms, Large Self-Contained Units and Large Split Systems Split Systems, Small Chillers,
Slide 5: Product Families
Product Families 5
Slide 6: AAON Business Strategy
Mass customization Uses flexible computer-aided manufacturing systems to produce custom outputs Combines the low unit costs of mass production processes with the flexibility of individual customization Collaborative effort AAON sales offices work with individual customers to determine the
Slide 7: AAON Market Strategy
Focus upon underserved market niches Establish manufacturing methodologies to support market niche products Develop company culture focused upon customer satisfaction Reduce product delivery channel time and cost Continue with the goal of product and manufacturing technology leadership A
Slide 8: AAON Served Market Growth
AAON Served Market Growth Rooftops $ 3.0 B Chillers $ 1.0 B Air Handling Units $ 1.8 B Split Systems $ 5.2 B 2014 Served Market - $ 11.0 B 1988 Served Market - $ 50 M 8 * ** * Chiller market estimate based on industry news articles and reports. ** AHRI data includes both commercial and residen
Slide 9: AAON Sales Mix by Business Segment
AAON Sales Mix by Business Segment Lodging 5% Office 14% Commercial 18% Health Care 13% Educational 26% Religious 1% Manufacturing 18% Other 5% May not add to 100% due to rounding 9
Slide 10: U.S. Construction - 2008 to 2014
U.S. Construction - 2008 to 2014 10 U.S. Census Bureau Value of Construction (Annual) - AAON Sales Segments - http://www.census.gov/construction/c30/c30index.html Annual Value of Construction (Millions $) Year Construction Type 2008 2009 2010 2011 2012 2013 2014 Lodging 35,806 25,499 11,635 9,129 10
Slide 11: U.S. Construction - Percent Change of 2008 Spending
U.S. Construction - 2008 to 2014 11 Percent Change of 2008 Spending Year Construction Type 2008 2009 2010 2011 2012 2013 2014 Lodging 100% 71% 32% 25% 30% 38% 45% Office 100% 76% 55% 53% 55% 55% 65% Commercial 100% 63% 47% 50% 55% 59% 66% Health Care 100% 96% 84% 86% 91% 88% 83% Educational 100% 98%
Slide 12: U.S. Construction - Q1 2008 to 2015
U.S. Construction - Q1 2008 to 2015 12 U.S. Census Bureau Value of Construction - AAON Sales Segments - http://www.census.gov/construction/c30/c30index.html Value of Construction (Millions $) Quarter Construction Type Q1 2008 Q1 2014 Q1 2015 Lodging 33,448 14,662 16,784 Office 70,961 41,322 49,066 C
Slide 13: U.S. Construction - Q1 2008 to 2015 Percent Change
U.S. Construction - Q1 2008 to 2015 13 U.S. Census Bureau Value of Construction - AAON Sales Segments - http://www.census.gov/construction/c30/c30index.html Percent Change of 2008 Spending Quarter Construction Type Q1 2008 Q1 2014 Q1 2015 Lodging 100% 44% 50% Office 100% 58% 69% Commercial 100% 58%
Slide 14: U.S. Construction - 2+ year Non-residential Segments
U.S. Construction - 2+ year 14 Office, Commercial, Health Care, Educational, Manufacturing, Lodging, & Religious Non-residential Segments $244.5 $266.2 $303.1 $321.1 $356.3 220 240 260 280 300 320 340 360 $220,000 $240,000 $260,000 $280,000 $300,000 $320,000 $340,000 $360,000 Jan-11 May-11 Sep-11 Ja
Slide 15: Architecture Billings Index
Architecture Billings Index 15 ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending. Any score above 50 indicates an increase in billings. ABI through March 2015
Slide 16: Financial Information
Financial Information 2010 2011 2012 2013 2014 3M 2015 Dollars $19.5 M $3.7 M $6.7 M $8.2 M $29.3 M $3.0 M Shares Bought 2,776,748 475,574 757,632 533,489 1,488,229 130,930 Shares Outstanding 55,706,580 55,391,229 55,164,936 55,067,031 54,041,829 54,171,201 Shares Bought Shares Outstanding 4.98% 0.8
Slide 17: Ratio Analysis
17 Ratio Analysis Profitability 2010 2011 2012 2013 2014 3M 2015 Return on Average Equity 18.7% 11.7% 21.1% 24.8% 26.1% 4.7% Return on Average Assets 13.7% 7.8% 14.2% 18.4% 19.7% 3.6% Pre-Tax Income on Sales 13.4% 8.1% 14.6% 17.5% 19.2% 17.5% Net Income on Sales 9.0% 5.3% 9.1% 11.7% 12.4% 10.9% Debt
Slide 18: Company Backlog
Company Backlog March 31, 2015 backlog of $55.4 M March 31, 2014 backlog of $51.7 M 38.4 44.0 43.6 45.3 48.8 - 10.0 20.0 30.0 40.0 50.0 60.0 December 2010 December 2011 December 2012 December 2013 December 2014 Order Backlog (millions) 18
Slide 19: Sales Performance
Sales Performance 27.7 21.9 14.0 27.5 37.6 44.2 245.3 244.6 266.2 303.1 321.1 356.3 2009 2010 2011 2012 2013 2014 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 0 50 100 150 200 250 300 350 400 2009 2010 2011 2012 2013 2014 Net Income (millions) Sales (millions) 19 Net Sales (m il
Slide 20: Sales Dollars Per Capita
Sales Dollars Per Capita 311.72 314.11 316.50 318.86 266.22 303.11 321.14 356.32 $0.864 $0.965 $1.015 $1.117 0.8 0.9 1 1.1 1.2 1.3 1.4 200 220 240 260 280 300 320 340 360 380 2011 2012 2013 2014 U.S. Population (millions) Sales (millions) Sales $ per Capita 20 P op ula tio n a nd Sales (m ill ions )
Slide 21: Financial Performance
Financial Performance 0.80 0.15 2.24 2.45 3.14 3.33 55,369 54,640 54,000 60,000 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 2010 2011 2012 2013 2014 3M 2015 EPS Fully Diluted (Adjusted for splits)(Left scale) Stock Price/10 (Adjusted for dividends and splits) (Left scale) Stockholders' Equity Per Share
Slide 22: Financial Performance - Year As of December 31, 2014
Financial Performance - 26 Year 22 As of December 31, 2014
Slide 23: Stock Performance – 20+ year
Stock Performance – 20+ year 23 Chart available from www.google.com/finance - Stock Splits and Dividends shown
Slide 24: Stock Performance – 20+ year Comparison with NASDAQ and S&P 500
Stock Performance – 20+ year 24 Chart available from www.google.com/finance Comparison with - NASDAQ - .INX = S&P 500
Slide 25: Defining Quality. Building Comfort. AAON
Defining Quality. Building Comfort. AAON