Slide 1: Investor Relations Presentation June 2024
Investor Relations Presentation June 2024
Slide 2: AAON at a Glance
* Employee count is as of June 4, 2024. 77% 10% 14% AAON Oklahoma AAON Coil Products BASX 69% 9% 6% 5% 4% 1% 4% 2% Rooftop units Data center cooling solutions Parts Air handlers Condensing units Water source heat pumps Cleanroom systems Other AAON at a Glance Manufacturing/Warehouse Square Footage:
Slide 3: Packaged Rooftop Total Addressable Market
Packaged Rooftop Total Addressable Market AAON $804M* Customized Market Nonresidential HVAC Packaged Rooftop Market ~$7.5B *2023 rooftop unit revenue The addressable market of AAON’s core packaged rooftop product is approximately 9x the size of the company’s rooftop sales Historically, AAON and the
Slide 4: AAON Leads The Industry In Innovation
AAON Leads The Industry In Innovation 4 In 1988, the industry mainly consisted of standard, basic equipment Fully custom equipment existed then and was higher in quality, but was much unaffordable to most AAON bridged the gap between standard and fully custom equipment, providing semi- customized eq
Slide 5: Favorable Secular Market Trends
Favorable Secular Market Trends Decarbonization Electrification Government Regulations Economics From Niche to MAINSTREAM. 5
Slide 6: Global Data Center HVAC Solutions Market
Global Data Center HVAC Solutions Market We estimate the size of AAON’s addressable global data center market is approximately 20x the size of the company’s data center sales* and is growing approximately 20% annually AAON’s superior engineering capabilities and its fully custom solutions, including
Slide 7: Robust Data Center Product Portfolio
Robust Data Center Product Portfolio AAON $804M* 7
Slide 8: AAON Striving for Growth
AAON Striving for Growth AAON $804M* 88
Slide 9: Moving Forward
Moving Forward AAON $804M* 9 Due to tough year-over-year comparisons, a slower macro environment and pushed out demand related to the refrigeration transition, 2024 will be a flattish year for AAON However, AAON’s cost of manufacturing is becoming more competitive, the company is leading in cold cli
Slide 10: Where Are We Financially
$- $200 $400 $600 $800 $1,000 $1,200 $1,400 2021 2022 2023 Net Sales ($M) Where Are We Financially 0% 5% 10% 15% 20% 25% 30% 35% 40% 2021 2022 2023 Gross Margin $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 2021 2022 2023 Diluted EPS 10 31% CAGR 29% CAGR
Slide 11: Where Are We Financially
Where Are We Financially 0% 5% 10% 15% 20% 25% 30% 2021 2022 2023 ROIC -0.2 -0.1 0.0 0.1 0.2 0.3 0.4 0.5 2021 2022 2023 Q1'24 Net Debt to EBITDA* 11 0% 5% 10% 15% 20% 25% 2021 2022 2023 EBITDA Margin * The net debt to EBITDA ratio for Q1’24 refers to net debt as of March 31, 2024 divided by EBITDA i
Slide 12: is nS) cS o Q Q <x
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Slide 13: Forward-looking statements
Certain statements and information set forth in this presentation contains “forward-looking statements” and “forward-looking information” within the meaning of the Private Securities Litigation Reform Act of 1995. Except for statements of historical fact, certain information contained herein constit
Slide 14: EBITDA, EBITDA Margin and Net Debt to EBITDA Ratio
EBITDA, EBITDA Margin and Net Debt to EBITDA Ratio 14 Note: Totals above may not sum up exactly due to rounding Q1 2024 Q4 2023 Q3 2023 Q2 2023 LTM 2023 2022 2021 Net income, a GAAP measure 39,016$ 47,049$ 48,078$ 45,682$ 179,825$ 177,623$ 100,376$ 58,758$ Depreciation and amortization 13,437 13,029
Slide 15: Return on Invested Capital (ROIC)
Return on Invested Capital (ROIC) 15 * Average invested capital is calculated by averaging invested capital at the end of the period and the invested capital at the end of the prior period Note: Totals above may not sum up exactly due to rounding 2023 2022 2021 2020 Total assets, a GAAP measure 941,