Firan Technology Group Corporation · TSX:FTG
Firan Technology — FTG — Shareholder Meeting (April 2025)
33 slides from Firan Technology's shareholder meeting presentation, April 2025
Slide 1: FTG Corporation
FTG CORPORATION Aerospace & Defence Electronic Products & Subsystems FTG: TSX April 2025
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG’s operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as “anticip
Slide 3: FTG Today: Pioneering Aerospace & Defence Solutions
FTG Today: Pioneering Aerospace & Defence Solutions A Global Force, Crafting Cutting-Edge Electronic Products and Subsystems that Propel the Industry Forward Markets Products Cockpit and Avionics Printed Circuit Boards Products Aerospace & Defence FTG Aerospace FTG Circuits TSX: FTG 3
Slide 4: FTG at a Glance
FTG at a Glance TSX: FTG Financial And Operational Snapshot 80% Growth in Sales (2022-2024) Driven by Acquisitions & Organic Growth: $90M Sales in 2022 $135M Sales in 2023 $162M Sales in 2024 10 Sites Globally: 5 in USA 3 in Canada 2 in China 1 site under construction in Ind
Slide 5: FTG Strategic Initiatives
FTG Strategic Initiatives Operating Performanc e Deliver Growt Value to Reduce h Customers Costs, Increase improve Operating Efficiencies Leverage Expand Market Pursue Technology High Positioning , Margin Geography, Business Advanced Acquisition Capacity s Technology TSX: FTG 5
Slide 6: FTG Operating System
FTG Operating System Solidifying Leadership Team – Laying The Groundwork To Scale Effectively, Without Compromising Performance Build/Strengthen the team Standardize FTG operating system across the company: L everage best practices from inside and outside FTG Ensure consistent performance
Slide 7: FTG - Strong Leadership Team
FTG - Strong Leadership Team Operational Excellence – Building the team to support future growth and success –with dramatically increased bench- strength Brad Bourne CEO CORPORATE LEADERS OPERATIONS LEADERS Peter Jamie Crichton Bill Sezate Marko Viinikka Dimopoulos CFO EVP Circuits EVP Aerospace VP
Slide 8: FTG - Strong Board Vision and Governance
FTG - Strong Board Vision and Governance Governance – Ensuring a balance of knowledge, experience and fresh perspectives 2025 Board Nominees Ed Hanna Chairman Audit Committee Chair Board member since 2002 Defence Industry Experience 38K shares Robert Beutel Mike Andrade 202 Christine Forget Brad Bou
Slide 9: FTG - Strong Board Vision and Governance
FTG - Strong Board Vision and Governance Governance – Ensuring a balance of knowledge, experience and fresh perspectives FTG has implemented a rigorous and structured approach to Board composition Skills/gap assessment Inputs from shareholders Succession plans Term limits Board mandate is updated ac
Slide 10: FTG Strategic Initiatives
FTG Strategic Initiatives Operating Growt Performanc h e Increase Operating Deliver Reduce Costs, Leverag Value to Improve Efficiencies e Customers Expand Market Pursue Technology High Positioning , Margin Geography, Business Advanced Acquisition Capacity s Technology TSX: FTG 10
Slide 11: FTG Scalable Economics
FTG Scalable Economics Top Line Drives Bottom Line CAD/USD Exchange Rate 100 Direct 90 Labour $1.70 80 Variable Cost $1.60 ~70% 70 $1.50 60 Material $1.40 Percent 50 $1.30 40 $1.20 Indirect Fixed Cost 30 Labour ~30% $1.10 20 Infrastruct $1.00 10 ure $0.90 0 Contribution Margin of ~30% on incremental
Slide 12: Commercial Aircraft Deliveries
Commercial Aircraft Deliveries AIRCRAFT DELIVERIES 1200 Airbus Airbus total backlog 1000 A irbus shipped double 800 8,658AIRCRAFT Boeing’s shipments in 2024 Airbus expected to # Aircraft 600 approach 2019 shipments levels in 400 Boeing total backlog 2025 Boeing 200 5,595AIRCRAFT Boeing imp
Slide 13: US Defence Spending
US Defence Spending 1000 US DEFENCE Recent 950 SPENDING Trump/Hegseth 900 DoD budget 850 request for next year 800 $B 750 700 650 600 550 500 2018 2019 2020 2021 2022 2023 2024 2025 2026 Defence spending is increasing as geopolitical tensions increase around the globe TSX: FTG 13
Slide 14: FTG's Multiple Levers For Continued Growth
FTG’s Multiple Levers For Continued Growth 4. New Technology Increase product offerings to grow 2. New Programs content per aircraft Win content on new programs in development 3. Operational Excellence Quality, delivery, 6. Acquisitions customer In support of increased 1. Market/ service capacity, a
Slide 15: FTG Strategic Initiatives
FTG Strategic Initiatives Operating Performanc e Growt Deliver Increase h Reduce Costs, Value to Improve Operating Customers Efficiencies Leverage Expand Technology Pursue , High Market Geography, Margin Positioning Acquisition Capacity Business s Advanced Technology TSX: FTG 15
Slide 16: Barriers to Entry
Barriers to Entry Technology/Capabilities Government certifications Customer certifications and approvals Customer Relationships Operational Performance Financial Strength Global Footprint TSX: FTG 16
Slide 17: Aerospace Technology Growth
Aerospace Technology Growth Technology Growth Drives Higher Content Per Electronic Assembly Aircraft And Accelerates Revenue Growth Power Supply Panel Switch Panel Electro- 45% of 2024 sales mech are assemblies Assembly Keyboard TSX: FTG 17
Slide 18: Circuits – Technology Growth
Circuits – Technology Growth HDI Hybrid Semi / Fully Micro Vias High Materials Additive Rigid Flex Frequency Thermal Process Sequential RF Circuitry Assembly Management (Averatek) Lamination RF Circuitry Digital Filled Vias Circuitry UHDI Over 50% of sales are high technology or specialty products T
Slide 19: Market Positioning
Market Positioning Benchmarking Process Used To Assess Financial Attractiveness Of Various Market Segments After market Simulators Margins Aerospac e Defence Cash Cycle Future investment decisions will drive FTG towards higher margin business TSX: FTG 19
Slide 20: FTG Strategic Initiatives
FTG Strategic Initiatives Operating Performanc e Growt Deliver h Reduce Costs, Increase Value to Improve Operating Customers Efficiencies Leverage Expand Pursue Technolog Market High y, Margin Positioning Geograph Business y, Advanced Acquisition Capacity Technology s TSX: FTG 20
Slide 21: Corporate Development Milestones
Corporate Development Milestones Company Founded Acquires Filtran Acquires Helix Circuits Micro Circuits Photo Etch Company renamed Incorporates FTG Acquires Teledyne PCT Circuit World Aerospace Tianjin FTG Aerospace Acquires Colonial FTG completes Circuits Chatsworth Grand reverse takeover Acquires
Slide 22: FLYHT Acquisition
FLYHT Acquisition Deal closed December 20, 2024 Enterprise value of approximately $23M ~$13.7M in equity and assumption of debt (debenture and Government debt) Approximately $20M in sales Nearing completion of 3 new/updated aftermarket products Key Strategic Benefits Increase FTG’s penetration of th
Slide 23: FLYHT Acquisition
FLYHT Acquisition Products Satcom communications via Iridium Satellite system (AFIRS 228) Backup aircraft safety communications system Aircraft data transmission system for enhanced operations management In service for many years, with design update just completed Factory option for all Airbus aircr
Slide 24: FLYHT Acquisition
FLYHT Acquisition Path Forward Reduce operating costs Reduce internal costs - FLYHT restructured in September 2024 significantly reducing labour costs Product development efforts winding down Eliminate public company costs Total savings estimated at ~$4M annually Aggressively sell all products again
Slide 25: Future M&A Considerations
Future M&A Considerations Future Acquisitions Key criteria for future acquisitions include: Aligned with FTG market and product focus Expand technology offering Expand geographic coverage Europe for commercial airspace Europe, India, other top ten countries outside of US for defence Acce
Slide 26: Capital Allocation
Capital Allocation Capital allocation plans include: 1. Invest organically to ramp throughput and drive technology 2. Pursue corporate development opportunities 3. We have an NCIB to buy back up to 5% of outstanding shareholder stock 616,400 shares repurchased since 2022 Deploy cash available to i
Slide 27: US Tariffs
US Tariffs The new US Administration is implementing tariffs on imports into the US FTG sales include approximately $55M in sales to the US from Canada or China Mitigation plans include: It will take time for the Aerospace and Defence supply chain to move sources of supply so any negative impact to
Slide 28: Financial Highlights – By Quarter
Financial Highlights – By Quarter $9,000 $50,000 $8,000 $45,000 $7,000 $40,000 $6,000 $35,000 $5,000 $30,000 $4,000 $25,000 ADJ EBITDA Revenue $3,000 $20,000 $K $K $2,000 $15,000 $1,000 $10,000 $0 $5,000 -$1,000 $0 Q1 Q1 Q1 Q1 Q1 21 22 23 24 25 Revenue Adj EBITDA Revenue has more than doubled since
Slide 29: Balance Sheet Highlights
Balance Sheet Highlights $50 $45 $40 Working $35 Capital $30 $25 $M $20 $15 $10 $5 Net $0 Cash/Debt -$5 -$10 -$15 16 17 18 19 20 21 22 23 24 25 20 20 20 20 20 20 20 20 20 Q1 Working Capital | Working capital remains strong after the acquisitions Net Cash | FTG has minimal debt after completing two a
Slide 30: Cash Flow Highlights
Cash Flow Highlights Cash Conversion (1) 14,000 12,000 10,000 8,000 $K 6,000 4,000 2,000 0 2018 2019 2020 2021 2022 2023 2024 Q1 25 Cashflow Net Income Cash conversion above 100% every year except 2023/24. 2023/24 cash conversion impacted by large ramp in production Q1 2025 cash conversion near 300%
Slide 31: FTG's Stock Performance
FTG’s Stock Performance Stock is up about 300% in the last decade FTG TTM EV/EBITDA is ~6.6X at Q1 2025 FTG now trades on the OTCQX market in the US – ticker FTGFF TSX: FTG 31
Slide 32: ESG at FTG
ESG at FTG Focus On Environmental, Social & Governance Factors Across All Operations Environment: Reduction of impact on the environment in areas such as water recycling, higher efficiency equipment, and committed further investments, with the support of the Canadian and Ontario Governments. Social:
Slide 33: FTG Corporation
FTG CORPORATION www.ftgcorp.com | FTG: TSX FTG: TSX