Aaon, Inc. · NASDAQ:AAON

Aaon — Q2 2015 Earnings Presentation

25 slides from Aaon's earnings presentation, Aug 24, 2015

  1. Slide 1: AAON Inc. Investor Presentation

    1 AAON IInc. IInvestor PPresentation AAON, i Norm Asbjornson, President & CEO

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement 2  Certain statements and information set forth in this presentation contains “forward-looking statements” andd “forward-looking “f d l ki information” i f ti ” within ithi the th meaning i off the th Private P i t Securities S iti Liti Litigation ti RReform f A Actt off 1995.

  3. Slide 3: AAON

    AAON O 3 AAON is a premium provider of commercial heating, ventilation and air conditioning (HVAC) products. Company p y Position Market Opportunities pp  AAON provides designs of  Energy efficiency and the highest quality and “green” features currently performance f that h lead l d the h drive th

  4. Slide 4: Manufacturing Locations

    Manufacturing Locations 4  Two Facilities:  Tulsa, Oklahoma  Current  1.3M Sq. Ft.  Upcoming p g Expansions p Rooftop p Units,, Outdoor Mechanical Rooms,, Large Self-Contained Units and Large Split Systems  66,000 Sq. Ft  Longview, L i TTexas  Current with Expansion  263,000 263 000 Sq. Sq

  5. Slide 5: Product Families

    Product Families as ROOFTOP UNITS OUTDOOR AIR CONDENSING a HANDLING UNITS UNITS ig > Tp > =| i RL SERIES RN SERIES RQ SERIES : RL SERIES. PACKAGED OUTDOOR MECHANICAL ROOMS SELF-CONTAINED UNITS Bp - j w R. RN SERIES BOILER MECHANICAL ROOM LE SERIES UN SERIES ‘SA SERIES RQSERIES, COILS CN SERIES ‘SB S

  6. Slide 6: AAON Business Strategy

    AAON Business Strategy gy 6  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

  7. Slide 7: AAON Market Strategy

    AAON Market Strategy gy 7  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

  8. Slide 8: AAON Served Market Growth

    AAON Served Market Growth 8 Rooftops $ 3.0 30B Chillers $ 1.0 B * Air Ai Handling H dli Units U it $ 1.8 18B Split Systems $ 5.2 B **  2014 Served Market - $ 11.0 B  1988 Served Market - $ 50 M * Chiller market estimate based on industry news articles and reports. ** AHRI data includes both co

  9. Slide 9: AAON Sales Mix by Business Segment

    AAON Sales Mix by 9 Business Segment Manufacturing 18% Other Religious g 5% Lodging 1% 5% Educational 26% Office 14% Health H l h Care C Commercial C i l 13% 18% May not add to 100% due to rounding

  10. Slide 10: U.S. Construction - 2008 to 2014

    U.S. Construction - 2008 to 2014 U S Census Bureau Value of Construction (Annual) - AAON Sales Segments - U.S. http://www.census.gov/construction/c30/c30index.html 10 Annual Value of Construction (Millions $) Year Construction Type 2008 2009 2010 2011 2012 2013 2014 Lodging 35 806 35,806 25 499 25,4

  11. Slide 11: U.S. Construction - 2008 to 2014

    U.S. Construction - 2008 to 2014 U S Census Bureau Value of Construction (Annual) - AAON Sales Segments - U.S. http://www.census.gov/construction/c30/c30index.html 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

  12. Slide 12: U.S. Construction - 6M 2008 to 2015

    U.S. Construction - 6M 2008 to 2015 U S Census Bureau Value of Construction - U.S. AAON Sales Segments - http://www.census.gov/construction/c30/c30index.html 12 Value of Construction (Millions $) 6 Months Construction Type 6M 2008 6M 2014 6M 2015 Lodging 35,647 15,200 19,486 Office 71,441 42,620 53,

  13. Slide 13: U.S. Construction - 6M 2008 to 2015

    U.S. Construction - 6M 2008 to 2015 U S Census Bureau Value of Construction - U.S. AAON Sales Segments - http://www.census.gov/construction/c30/c30index.html 13 Percent Change g of 2008 Spending p g 6 Months Construction Type 6M 2008 6M 2014 6M 2015 g g Lodging 100% 43% 55% Office 100% 60% 74% Comme

  14. Slide 14: U.S. Construction - 3+ year

    U.S. Construction - 3+ year 14 U.S. Census Bureau Value of Construction $380 000 $380,000 380 $360,000 360 $356.3 $340 000 $340,000 340 Total Constructtion (millions) $321.1 AAON Net Sales (millions) $320,000 320 $303.1 $ $300,000 300 $280,000 280 $266.2 $260,000 260 $244.5 $240,000 240 $220,000 220

  15. Slide 15: Architecture Billings Index

    Architecture Billings g 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 June 2015

  16. Slide 16: Financial Information

    Financial Information 16 CASH FLOW FROM 2010 2011 2012 2013 2014 6M 2015 OPERATIONS $32,152 $26,484 $51,167 $53,592 $52,279 $11,989 (in thousands) CAPITAL EXPENDITURES 2010 2011 2012 2013 2014 6M 2015 • Semi-Annual Cash (in thousands) $17,470 $35,914 $14,147 $9,041 $16,127 $9,304 Dividend increased

  17. Slide 17: Ratio Analysis

    Ratio a o Analysis a ys s 17 6M Profitability y 2010 2011 2012 2013 2014 2015 Return on Average Equity 18.7% 11.7% 21.1% 24.8% 26.1% 10.8% Return on Average Assets 13.7% 7.8% 14.2% 18.4% 19.7% 8.1% Pre-Tax Income on Sales 13.4% 8.1% 14.6% 17.5% 19.2% 18.8% Net Income on Sales 9.0% 5.3% 9.1% 11.7% 12

  18. Slide 18: Company Backlog

    Company p y Backlog g 18 Order Backlog (millions) June 30, 2015 backlog of 60.0 $66.0 M 50.0 June 30, 2014 backlog of 40.0 $67.1 M 30.0 45.3 48.8 20.0 44.0 43.6 38.4 10.0 - December December December December December 2010 2011 2012 2013 2014

  19. Slide 19: Sales Performance

    Sales Performance 19 Net Income (millions) Sales (millions) 2009 2010 2011 2012 2013 2014 400 100.00 millions) 350 90.00 Net Sales (m 356.3 80.00 300 321.1 303.1 70.00 250 266.2 60.00 Net Incoome (millionns) 245 3 245.3 244 6 244.6 N 200 50.00 150 40.00 30.00 100 00 37.6 44 2 44.2 20.00 50 27.7 21.9

  20. Slide 20: Sales Dollars Per Capita

    Sales Dollars Per Capita p 20 U.S. Population (millions) Sales (millions) Sales $ per Capita Populatioon and Salees (millions)) 380 1.4 356.32 360 1.3 340 321.14 314.11 320 311.72 1.2 318.86 316.50 300 $1.117 303 11 303.11 11 1.1 280 $1.015 $0.965 260 1 apita 266.22 240 $ per Ca $0.864 0.9 220 200 0

  21. Slide 21: Financial Performance

    Financial Performance 21 3.43 3.50 3 50 3.14 60,000 3.00 2.50 2.24 2.25 2.00 Stock Price per Share/10 1.50 1 00 1.00 55,369 , 0.80 54,715 0.50 0.36 Earnings per share 0.00 54,000 2010 2011 2012 2013 2014 6M 2015 EPS Fully Diluted (Adjusted for splits)(Left scale) Stock Price/10 (Adjusted for dividen

  22. Slide 22: Financial Performance - 26 Year

    Financial Performance - 26 Year 22 As of December 31, 2014

  23. Slide 23: Stock Performance – 20+ year

    Stock Performance – 20+ year y 23 Chart available from www.google.com/finance - Stock Splits and Dividends shown

  24. Slide 24: Stock Performance – 20+ year

    Stock Performance – 20+ year y 24 Chart available from www.google.com/finance Comparison with - NASDAQ - .INX = S&P 500

  25. Slide 25: AAON

    AAON Defining Quality. Building Comfort.

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