Airboss Of America Corporation · TSX:BOS
Airboss Of America — Investor Presentation (March 2023)
31 slides from Airboss Of America's investor presentation, March 2023
Slide 1: Investor Presentation
INVESTOR PRESENTATION BOS : TSX | MARCH 2023
Slide 2: Forward Looking Information and Disclaimers
FORWARD LOOKING INFORMATION AND DISCLAIMERS FORWARD LOOKING INFORMATION Certain statements contained or incorporated by reference herein, including those that express management’s expectations or estimates of future this presentation and, whether as a result of new information, future events or othe
Slide 3: AirBoss Is Positioned for Growth
AIRBOSS IS POSITIONED FOR GROWTH 2022 FINANCIAL PERFORMANCE FINANCIAL POSITIONING1 $477M ($1.18) NET SALES EPS (FD) $45M $0.45 ADJ EBITDA1 ADJ EPS (FD)1 ($31.9M) 2.43X PROFIT (LOSS) NET LEVERAGE2 All dollar figures are in USD. The Financial measures shown are for the full-year 2022. Dividend CAGR ca
Slide 4: 25 Years of Growth and Profitability
PIONEERS OF INNOVATION & TECHNOLOGY 25 YEARS OF GROWTH AND PROFITABILITY 2022 Revenue $477M 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 Complete
Slide 5: One AirBoss, Multiple Customer Channels
ONE AIRBOSS, MULTIPLE CUSTOMER CHANNELS We develop, manufacture and market high-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
Slide 6: Synergies Drive Revenue Growth & Improved Margins
SYNERGIES DRIVE REVENUE GROWTH & IMPROVED MARGINS Compounded Rubber Compounded Rubber Materials R&D Materials R&D Plant Management Surge Manufacturing Capacity for Defense Products SHARED SERVICES, BEST PRACTICES, EXPERTISE, LOGISTICS & BACK-OFFICE INTEGRATION: Supply Chain Management Engineering &
Slide 7: Diversification a Source of Stability
DIVERSIFICATION A SOURCE OF STABILITY External Net Sales $M Adjusted EBITDA1,2 $M Profit to Shareholders $M 105.6 47.4 587 46.7 33.7 36.1 502 477 80.3 10% CAGR1 12.6 8.5 10.2 8.9 10.9 317 328 14% CAGR1 45.3 32.2 26.1 -31.9 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 20
Slide 8: ADG Is Survivability
ADG IS 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 $133M 2022 Net s
Slide 9: Leader in Custom Rubber Compounding
LEADERINCUSTOMRUBBERCOMPOUNDING. North America’s second largest custom compounder 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 turn pounds of annual rubber 2000+ $236M $33M
Slide 10: Innovator in Anti-Vibration
INNOVATORINANTI-VIBRATION Leader in customized rubber-based anti-vibration and noise-reduction solutions for the automotive, electric vehicle, heavy truck, industrial and defense industries Industry-leading domestic supplier to OEMs and Tier 1 and 2 parts suppliers $133M $2.0M 2022 Net sales 2022 Gr
Slide 11: Consistent Growth Through Multiple Economic Cycles
CONSISTENT GROWTH THROUGH MULTIPLE ECONOMIC CYCLES $Millions Wehave : 700 AirBoss’ Revenue History ▪ Consistent focus on innovation and 650 competitive advantages 600 COVID-19 Recession 550 ▪ Diversified customer sectors to mitigate 500 risk of economic and contractual cycles 450 and develop natural
Slide 12: AirBoss Outperforms the Industry
AIRBOSS OUTPERFORMS THE INDUSTRY AirBoss Revenues vs U.S. Rubber and Plastics Products (rebased to 1.0 as at 2000) 7.0 6.0 Plastics and Rubber 5.0 AirBoss Revenues Defense Capital Goods With consistent Multiple of 2000 Revenues 4.0 market expansion, 3.0 our growth is exceeding 2.0 our industry peers
Slide 13: Our Domestic Manufacturing Capacity Is Our Advantage
OUR DOMESTIC MANUFACTURING CAPACITY IS OUR ADVANTAGE 1. Ideally positioned to win U.S. government contracts 2. Professionally managed supply chain with optimized shipping capabilities to domestic customers Acton-Vale, PQ Newmarket, ON Kitchener, ON Auburn Hills, MI Rochester, NY Chicago, IL Jessup,
Slide 14: Consistent Dividend Growth
CONSISTENT DIVIDEND GROWTH Quarterly Dividends (C$) $0.12 Current dividend of C$0.10 $0.10 $0.08 A historyof consistent dividends Dividends have $0.06 averaged 15% annual growth since $0.04 inception. $0.02 $0.00 AirBoss of America | 14
Slide 15: Focused on Sustainability
FOCUSED ON SUSTAINABILITY Meaningful progress in AirBoss’ ESG-related disclosures: Our ESG priorities: COMMUNITY & HUMAN RIGHTS ▪ 2021 – Engaged external advisor to guide the collection, ❑ Implement community initiatives focused on education and healthcare analysis, and interpretation of ESG-specifi
Slide 16: Innovation & Execution in Our Business Segments
INNOVATION & EXECUTION IN OUR BUSINESS SEGMENTS AirBoss of America | 16
Slide 17: Strengthening Our Broad Survivability Platform
STRENGTHENING OUR BROAD SURVIVABILITY PLATFORM CONTINUED FOCUS ON: GROWING OUR PLATFORM: • In-demand PPE consumables • Source, develop and acquire new defense and first responder products • Winning new government contracts • Seek strategic acquisitions to broaden our platform • Delivering on awarded
Slide 18: Evolving Technology to Protect the Warfighter
EVOLVING TECHNOLOGY TO PROTECT THE WARFIGHTER 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 militar
Slide 19: Growing the Rubber Business Over the Long Term
GROWING THE RUBBER BUSINESS OVER THE LONG TERM INCREASING PROFITS THROUGH SPECIALIZATION & SCALE: Expand our compounding capabilities with a focus on higher value black rubber, white / colour compounds and specialty, high-performance elastomers EXPANDING OPERATIONS IN SELECTED HIGH-GROWTH MARKETS: U
Slide 20: Transforming the Rubber Business
TRANSFORMING THE RUBBER BUSINESS 100% ownership in Ace Elastomer, a leading 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 p
Slide 21: 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 22: Expanding Beyond Automotive
EXPANDING BEYOND AUTOMOTIVE Accelerated innovation, local sourcing & manufacturing wins AEP 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 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 MSc(A), P.Eng CEO & Chairman ▪ Co-founder of Aurora Oil & Gas; sold for $2.6 billion in 2014; Founded AirBoss in 1989; Chairman - 1989, CEO - 2013 Chris Bitsakakis ▪ M
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 MSc(A), P.Eng ▪ Co-founder - Aurora Oil & Gas; sold for $2.6 billion in 2014; Founded AirBoss in 1989; Chairman - 1989,
Slide 25: Appendix
APPENDIX AirBoss of America | 25
Slide 26: Financial Highlights
FINANCIAL HIGHLIGHTS Net Sales $M Adjusted EBITDA $M Profit $M EPS $(FD) 249.1 15.2 15.5 0.53 0.55 12.0 12.3 27.0 0.45 0.43 117.5 13.9 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 2021 2022 2021 2022 2021 2022 2021 2022 Adjusted Adjusted Net Sales Profit and Diluted Per Share Earnings ▪ 5
Slide 27: AirBoss Defense Group
AIRBOSS DEFENSE GROUP ADG Net Sales $M ADG Gross Profit $M 0.8 Inter-Segment Net Sales 47.8 175.1 0.8 2.9 19.0 Q4 2021 Q4 2022 Q4 2021 Q4 2022 ADG’s Q4 2022 results primarily reflect effects HHS contract timing in 2021: ▪ ADG Net Sales declined to $19.8 M due to absence of nitrile gloves delivered t
Slide 28: AirBoss Rubber Solutions
AIRBOSS RUBBER SOLUTIONS ARS - Net Sales $M ARS - Gross Profit $M 6.9 Inter-Segment Net Sales 5.4 4.3 5.9 52.3 48.4 Q4 2021 Q4 2022 Q4 2021 Q4 2022 ARS’ Q4 2022 results show continued strong demand supported by expanded compounding capabilities: ▪ ARS Net Sales growth of 10% due to higher demand in
Slide 29: AirBoss Engineered Products
AIRBOSS ENGINEERED PRODUCTS AEP - Net Sales $M AEP - Gross Profit $M Inter-Segment Net Sales 0.6 14.9 2.7 46.1 25.6 Q4 2021 Q4 2022 -2.2 Q4 2021 Q4 2022 AEP’s Q4 2022 results show positive effects of updated agreements with key partners and customers: ▪ AEP Net Sales increased by 65% due to improved
Slide 30: 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 31: Thank You
THANK YOU. SHARE INFORMATION: Ticker Symbol TSX : BOS OCTQX : ABSSF Shares Outstanding 27,092,041 CONTACT DETAILS: Investor Relations ir@AirBoss.com www.airboss.com www.adg.com Shares outstanding are as of March 9, 2023. AirBoss of America | 31
AirBoss of America — Investor Presentation (March 2023) on 6ix