Airboss Of America Corporation · TSX:BOS
Airboss Of America — Q4 2023 Earnings Presentation
30 slides from Airboss Of America's earnings presentation, March 2024
Slide 1: Building Value Through Innovation
BUILDING VALUE THROUGH INNOVATION AIRBOSS INVESTOR PRESENTATION MARCH 2024
Slide 2: Forward-Looking Information and Disclaimers
FORWARD-LOOKING INFORMATION AND DISCLAIMERS FORWARD-LOOKING INFORMATION DISCLAIMERS Certain statements contained or incorporated by reference herein, including those that express management’s expectations or estimates of future This presentation has been prepared by AirBoss of America Corp. (“AirBos
Slide 3: Pioneers of Innovation & Technology: Over 30 Years of Growth
PIONEERS OF INNOVATION & TECHNOLOGY Over 30 years OF GROWTH Acquired Acquired Acquired AirBoss Defense Uniroyal Goodrich tire molded glove plant In Kitchener, Ontario Where we began: Acquired Acquired Acquired developing a puncture- Acquired Purchase of Acton Completed purpose-built proof tire for t
Slide 4: One AirBoss, Multiple Customer Channels
ONE AIRBOSS, MULTIPLE CUSTOMER CHANNELS We develop, manufacture and market quality, proprietary rubber-based products for the automotive, heavy commercial, construction and infrastructure, oil & gas, and defense industries SHARED CORE COMPETITIVE ADVANTAGES: INNOVATION EFFICIENCY SCALE AirBoss of Am
Slide 5: Synergies Drive Revenue Growth & Improved Margins
SYNERGIES DRIVE REVENUE GROWTH & IMPROVED MARGINS Compounded Rubber Materials R&D Plant Management SHARED SERVICES, BEST PRACTICES, EXPERTISE, LOGISTICS & BACK-OFFICE INTEGRATION: Supply Chain Management Engineering & Chemistry Sales & Marketing Strategy & Governance Finance Legal, HR & IT AirBoss o
Slide 6: Diversification a Source of Stability
DIVERSIFICATION A SOURCE OF STABILITY External Net Sales $M Adjusted EBITDA1 $M Profit to Shareholders $M 46.7 47.4 587 105.6 33.7 36.1 502 477 80.3 426 10.2 10.9 12.6 328 45.3 -6.4 32.2 26.8 -31.9 -41.7 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2
Slide 7: Custom Rubber Compounding
CUSTOM RUBBER COMPOUNDING North America’s second largest custom compounder¹ Trusted supplier to significant, blue-chip customers in the major tire, off-the-road, industrial, defense and resource sectors Multi-decade, key customer relationships 500M 2000+ turn pounds of annual rubber Proprietary comp
Slide 8: Product-Focused Operations
PRODUCT-FOCUSED OPERATIONS Manufactures and distributes finished products to a variety of target markets including, automotive, non-automotive, and defense. AirBoss of America | 8
Slide 9: Rubber Molded Products: Innovator in Anti-Vibration
RUBBER MOLDED PRODUCTS: INNOVATOR IN ANTI-VIBRATION Customized rubber-based anti-vibration and noise- reduction solutions for the automotive, electric vehicle, heavy truck, industrial and defense industries Multiple domestic and off-shore automakers and major Tier I/II suppliers to the global automo
Slide 10: Defense Products for Survivability
DEFENSE PRODUCTS FOR SURVIVABILITY. Industrial and military-grade protection for chemical, biological, radioactivity and nuclear (“CBRN”) threats Personal protective equipment (“PPE”) for healthcare settings Blast monitoring and route clearance solutions for military and law enforcement personnel Ai
Slide 11: Consistent Growth Through Multiple Economic Cycles
CONSISTENT GROWTH THROUGH MULTIPLE ECONOMIC CYCLES Wehave : $Millions AirBoss' Revenue History Consistent focus on innovation and 700 competitive advantages 2020-2022 650 PPE Spend due to COVID-19 600 Diversified customer sectors to mitigate 550 risk of economic and contractual cycles 500 and de
Slide 12: AirBoss Outperforms the Industry
AIRBOSS OUTPERFORMS THE INDUSTRY AirBoss Revenues vs U.S. Rubber and Plastics Products (rebased to 1.0 as at 2000) 7.0 6.0 As we have consistently Plastics and Rubber expanded our 5.0 Multiple of 2000 Revenues AirBoss Revenues addressable market, Defense Capital Goods 4.0 our growth has exceeded our
Slide 13: Strategic Value of Our Domestic Manufacturing Capacity
STRATEGIC VALUE OF OUR DOMESTIC MANUFACTURING CAPACITY Ideally positioned to win U.S. government contracts Professionally managed supply chain with optimized shipping capabilities to domestic customers Acton-Vale, PQ Newmarket, ON Kitchener, ON Auburn Hills, MI Rochester, NY Jessup, MD Scotland
Slide 14: Shareholder Dividends
SHAREHOLDER DIVIDENDS Quarterly Dividend History C$ $0.10 Current dividend of $0.08 C$0.07 $0.06 $0.04 $0.02 $0.00 AirBoss of America | 14
Slide 15: Focused on Sustainability
FOCUSED ON SUSTAINABILITY Progress in AirBoss’ ESG-related disclosures: Sustainability focus areas: 2022 – Developed our ESG reporting practices and published ENVIRONMENT SOCIAL AND AND RESOURCE INNOVATION our inaugural Sustainability Report MANAGEMENT GOVERNANCE 2023 – Published our 2nd Sustain
Slide 16: Innovation & Execution in Our Business Segments
INNOVATION & EXECUTION IN OUR BUSINESS SEGMENTS AirBoss of America | 16
Slide 17: Growing the Rubber Business Over the Long Term
GROWING THE RUBBER BUSINESS OVER THE LONG TERM CORE DRIVER FOR SUSTAINABLE GROWTH AND PRODUCTIVITY: Focus on innovation in custom rubber compounding, while aiming to expand market share through organic and inorganic means EXPANSION OF CAPABILITIES: Expand our compounding capabilities with a focus on
Slide 18: Transforming the Rubber Business
TRANSFORMING THE RUBBER BUSINESS 100% ownership in Ace Elastomer, a U.S.-based custom rubber compounder provides AirBoss with higher margins & increased R&D capabilities • Access to higher margin colour and specialty compounding markets, including domestically produced enhanced small-batch processin
Slide 19: Building Value with New Solutions for Our Partners
BUILDING VALUE WITH NEW SOLUTIONS FOR OUR PARTNERS CONTINUED FOCUS ON EFFICIENCY & INNOVATION Meeting our Advancing Generating higher customers’ unique products up the margins demands technical curve EXPANDING OUR ACCESS INTO NON-AUTOMOTIVE SECTORS Growing our Extensive outreach to sector leaders to
Slide 20: Expanding Beyond Automotive
EXPANDING BEYOND AUTOMOTIVE Accelerated innovation, local sourcing & manufacturing wins AMP a strategic military contract with Navistar Defense • AirBoss’ locally-sourced materials met necessary compliance requirements for Navistar’s contract with the U.S. Military • Less than two months from purcha
Slide 21: Strengthening Our Broad Survivability Platform
STRENGTHENING OUR BROAD SURVIVABILITY PLATFORM CONTINUED FOCUS ON: Winning new Delivering on PPE consumables government awarded contracts contracts GROWING OUR PLATFORM: Source, develop and Seek strategic Cross-market existing product acquire new defense and acquisitions to lines to expanded custome
Slide 22: Evolving Technology to Protect Our Soldiers
EVOLVING TECHNOLOGY TO PROTECT OUR SOLDIERS Black Box Biometrics® Acquisition - Transforming the battlefield with lightweight, wearable blast overpressure sensors • Fully benefit from the significant potential of widespread deployment of the Blast Gauge System across the U.S. DoD and other militarie
Slide 23: Driven & Dedicated Management Team
DRIVEN & DEDICATED MANAGEMENT TEAM P.Gren Schoch Founded and chaired Petromet Resources in 1982; sold to Talisman for $900 million. Chairman & Co-CEO Co-founder of Aurora Oil & Gas; sold for $2.6 billion in 2014; Founded AirBoss in 1989; Chairman - 1989, CEO - 2013 Chris Bitsakakis More than 3
Slide 24: Board with Significant Diversified Industrial, Defense & Public Company Expertise
BOARD WITH SIGNIFICANT DIVERSIFIED INDUSTRIAL, DEFENSE & PUBLIC COMPANY EXPERTISE P. Gren Schoch Founded and chaired Petromet Resources in 1982; sold to Talisman for $900 million Chairman & Co-CEO Co-founder - Aurora Oil & Gas; sold for $2.6 billion in 2014; Founded AirBoss in 1989; Chairman - 1
Slide 25: Appendix
APPENDIX AirBoss of America | 25
Slide 26: Q4 2023 Financial Highlights
Q4 2023 FINANCIAL HIGHLIGHTS Net Sales $M Adjusted EBITDA $M Profit $M EPS $ (FD) 0.45 12.0 117.5 13.9 92.7 4.0 -36.0 -1.33 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Net Sales Profit and Diluted Per Share Earnings 21% decrease due to lower volume within AMP and ARS Lower du
Slide 27: Q4 2023 - AirBoss Rubber Solutions
Q4 2023 - AIRBOSS RUBBER SOLUTIONS ARS - Net Sales $M ARS - Gross Profit $M Inter-Segment Net Sales 7.7 7.8 5.9 4.8 63.1 49.7 Q4 2022 Q4 2023 Q4 2022 Q4 2023 ARS’ Q4 2023 results indicate lower sales across most sectors: ARS Net Sales declined by 21.1% due to softness across most sectors Gross P
Slide 28: Q4 2023 - AirBoss Manufactured Products
Q4 2023 - AIRBOSS MANUFACTURED PRODUCTS AMP - Net Sales $M AMP - Gross Profit $M Inter-Segment Net Sales 17.1 0.6 1.0 54.4 43.0 -2.7 Q4 2022 Q4 2023 Q4 2022 Q4 2023 AMP’s Q4 2023 results reflect lower volumes: AMP Net Sales decreased by 20% due to lower volumes in the defense and rubber molded pro
Slide 29: Reconciliation of Non-IFRS Measures
Reconciliation of Non-IFRS Measures AirBoss' financial statements prepared in accordance with IFRS and uses Non-IFRS Financial Measures. Management believes that these measures provide useful information to investors in measuring the financial performance of the Company. These measures do not have a
Slide 30: Thank You
THANK YOU. SHARE INFORMATION: Ticker Symbol TSX : BOS OCTQX : ABSSF Shares Outstanding 27,130,556 CONTACT DETAILS: Investor Relations investor.relations@airboss.com Media media@airboss.com www.airboss.com Shares outstanding are as of March 6, 2024. AirBoss of America | 30