Lakeland Industries, Inc. · NASDAQ:LAKE
Lakeland Industries — Investor Presentation (March 2020)
32 slides from Lakeland Industries's investor presentation, Mar 16, 2020
Slide 1: Investor Presentation
CLakeland Investor Presentation | March 16,2020 Protect Your People ™ NASDAQ: LAKE Christopher J. Ryan, Executive Chairman Charles D. Roberson, President and Chief Executive Officer
Slide 2: Safe Harbor Statement
Safe Harbor Statement ‘With the exception of historical information, the statements set forth in this presentation include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risk and uncertainties. The company wishes to caution that a n
Slide 3: Key Statistics
Key Statistics 1 Netales of S27.5M, op 14s from S24.0M ia QSFY19 + Gross profit of$9.3M, up from S8.3M in QUFYI9 33.8% compared to 4.6% in Q3EVID + Opex of S7.SM, compared 87 3M in QUEYID + Operating profit of $18M, op 80% fom SOM in Q3EYI9 + Netincome of S1.2M, up 181% from 0 SM in QSFY19 Netincome
Slide 4: Uniquely Positioned to Respond to Global Crises
Uniquely Positioned to Respond to Global Crises Ebola Bird Flu ‘CoVID-19 (Corvnavirus) $4.6 million FY16) 4.1 million (FY16) TBD @FY2021) Spied suits othe United | Supplied protective clothing to Kingdom Goverament DiVal Safety Equipment + August 8, 2014: Ebola + Apni 11,2015: Avian Fhe + Firat ship
Slide 5: Coronavirus (CoVID-19) Update
Coronavirus (CoVID-19) Update + China Environment ~ Situation improving (quarantines being lifted and business being allowed to ‘open) ~ Logistics (inland freight and ocean) remain challenging ~ Businesses are allowed to open, but many remain at reduced capacities ~ Work force mobility has yet to re
Slide 6: Coronavirus (CoVID-19) Impact
Coronavirus (CoVID-19) Impact + Revenue — Impact will be spread over Q4FY20 and FY21 ~ Selling through distribution limits transparency into application of sales + Manufacturing — China returned to work 4 days early and went to maximum operating schedule (start up was not delayed) ~ Weifang facility
Slide 7: LAKE Product Examples
LAKE Product Examples LAKE Disposable Suit LAKE Chemical Protection Suit
Slide 8: Leading Protective Clothing Manufacturer
Leading Protective Clothing Manufacturer Nt ha ds Disposables Chemical Suits Wovens FireRefletives Gloves 12% 196 construction, electri & gas utes tech oD, CDC & DEA al employees tic employes (approx)
Slide 9: Innovative Proprietary Products
Innovative Propr etary Products LAKE utilizes proprietary tes tiles and designs targeted to market needs and demands Proprictary high margin products for stable and recuting end markets (¢.uilities, pharmaceuticals) 20 patents & I patent in aplication! 56 trademarks and 6 trademarks ‘application’ LA
Slide 10: Optimized Global Presence
Optimized Global Presence ; MAES oe Re wis 6 ee . Pree oi) , ; " te ie iy eI WA | Wh |i Decatur, AL Faility OLakeland ‘Angui (Weifang), China Faciity ‘Deca AL (HQ) ate Dinh, Vien elie, Chinn Deca, AL IO) enti Ci, UotkKamenogent, Keath 10
Slide 11: Increasing Manufacturing Capacity
Increasing Manufacturing Capacity ¥ Deploying capital investment in new manufacturing facilities to build growth capacity ¥ India and Vietnam locations are now online and close to targeted growth markets ¥ Low cost structures in new locations are accretive to gross margins ‘Manufacturing Capac Curcu
Slide 12: Strong Business Model
Strong Business Model Products COGS / Raw Materials Gross Margin’ Sales Channels Customer Brea Number of Prats Sales Presence Geographic Reach Manufacturing Locations Propritary’/alc-adde higher marin Muli-source, ker prio fabrics than DuPont 642% and expanding Distributors and Key End Users Diversi
Slide 13: Blue Chip Customers
Blue Chip Customers Airvas. © Fisher Scientific GRAINGER (vandeputte 7] Wesfarmers Chevron Honeywell _ nationalgrid A NW) stuncwonca. = Shell CLakeland az
Slide 14: Favorable Industry Dynamics
Favorable Industry Dynamics Lakeland operates in a large and growing industry... (Sinton) Global Esonomic Growth ¥ Global Oi Prices in Chock ¥ Strong Increase in Manufacturing 10 Robust Demand from Developing Insts ¥ Increased Global Focus on Safety ‘ l | | |
Slide 15: Strong Presence in Large & Fragmented U.S. Market
Strong Presence in Large & Fragmented U.S. Market U.S. PPE Products & Service Composition (2019) sue A Respiratory Protection 19% 8 Hang Protection 10% © a por D Head Protection 11% E Fall Protection ™ F ae Protection *% OLakeland ao
Slide 16: Positioned for Further International Growth
Positioned for Further International Growth Leveraging its worldwide operating capabilities, LAKE plans deeper penetration into existing markets and selective expansion into new geographies... + Led by multinational corporations, developing countries are increasingly adopting OSHA-like standards + L
Slide 17: Low Seasonality in Business
Low Seasonality in Business pan tyra OLakeland
Slide 18: Growth and Performance Improvement Initiatives
Growth and Performance Improvement Initiatives + Investments in digital transformation — ERP implementation — Launch of new websites for nine global locations — Amazon platform in multiple countries — Online marketing strategies + Investments in manufacturing — Vietnam (now largest facility for the
Slide 19: LAKE Shares Trade at Discount on Improved Financials
LAKE Shares Trade at iscount on Improved Financials ‘Attractive Valuation*; LAKE Trades at 9.5x EV/EBITDA Based on 3Q20 Annualized Results Improving/Superior Performance: Revenue Growth 14 (over prior year period) Operating Margin 6.8% (vs. 4.2% in 3Q19) EBITDA** Margin 6.9% (vs. 5.8% in 3Q19) dose
Slide 20: Significant M&A Activity
Significant M&A Activity <> sant 8 poly ese compen, WURTH & GROUP
Slide 21: Seasoned Management Team
Seasoned Management Team > i) iad SS * is ‘Christopher. Ryan Esceutve Chale ‘Upon he spouse as Exruve Choma a Febuary 2020, Crop J Ryan served a ut Chie Eecativ Ofer nd Frid sce November 208 Scereay see Api 191, and rec sne Nay 186M Ryan wes Exon Vie Pree Pe fon May 1986 wl bcoming eur Poet November
Slide 22: Investment Highlights
Investment Highlights CLakeland High Growth from Proprietary/Value Added Products Strong Growth Masked by Wind Down of DuPont & Brazil Businesses Flexible Worldwide Operating Capabilities ight Leveragable Con Since eluting Global Manufacturing Sites Leader in Product Quality and Garment Innovation C
Slide 23: Financial Review
CLakeland Protect Your People™ Financial Review
Slide 24: Income Statement — Fiscal Year
Income Statement — Fiscal Year 2012 Natale son Cost gre std ‘08 Gros pot 3906 Operating expemes out pening pot 36s er incme ot a Inert epee as nce expen 2 Neon sus, Base sais Died suis Wes crap sommen hare eotsante ase sunass Dies 170401 CLakeland seb be EBs EE EE 24
Slide 25: EBITDA Reconciliation — Fiscal Year
EBITDA Reconciliation — Fiscal Year ‘oes EBITDA ied Free Ch Fo Ceca mnceh opoen Neat taITDN san Cockayne eps) Coty renee) 8 Ccputeagentee sie ‘ijt re Ck Fon so (echtng oenhapone) CLakeland 28
Slide 26: Balance Sheet — Fiscal Year
Balance Sheet — Fiscal Year Suton) Toasts mt OFAN mt 610 amy 3,508 Seton ss Ryerson Mo nt 4A a3 19 TRY 3H pier
Slide 27: Income Statement — 3Q20
Income Statement — 3Q20 revo} remy ren 7 sm Porn ae Ps 7 ry rm OLakeland 7
Slide 28: EBITDA Reconciliation — 3Q20
EBITDA Reconciliation — 3Q20 Net Income to EBITDA, Netlsome Incest Taxes Depesatin and amodizain gy compensation BITDA EBITDA to Free Cash Flow enrtDa Cash pid fortes Capital expences Free Cash Flow OLakeland “Thrce Month Ended October 3, 209 $1145 sso. 26 2s 63 oe 330 24 2) so 1932 16 1932 116 am 2
Slide 29: Balance Sheet — 3Q20
Balance Sheet — 3Q20 Suton)
Slide 30: Appendix
CLakeland Protect Your People™ Appendix 30
Slide 31: Strong Growth Masked By Wind-Down of DuPont & Brazil
Strong Growth Masked By Wind-Down of DuPont & Brazi sing DuPont & Brazil) CAGE vz - F207 Lakeland (ES sno Lowinadl JIU LAKE grew larger despite winding down $77 million DuPont and $17 million Brazil businesses
Slide 32: Real Estate
Real Estate Arenas (een Ai) a UK. (Newport Et Yori) ox Vien Dia) 900 OLakeland co Lena Lene oy Lema ema Tend ened Lewd ‘Admin / Manfctuig/ Wars Ai ym Matai! Sen
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