Airboss Of America Corporation · TSX:BOS
Airboss Of America — Shareholder Meeting (May 2023)
22 slides from Airboss Of America's shareholder meeting presentation, May 10, 2023
Slide 1: Building Value Through Innovation: AGM and Q1 2023 Financial Results
BUILDING VALUE THROUGH INNOVATION ANNUAL GENERAL MEETING AND Q1 2023 FINANCIAL RESULTS PRESENTATION MAY 10, 2023
Slide 2: AirBoss Chairman's Award – Going Above and Beyond
AIRBOSS CHAIRMAN’S AWARD – GOING “ABOVE AND BEYOND” Established in 2019 Presented to an employee who has shown exceptional dedication and commitment Nominees sourced through “Above and Beyond” peer-to-peer award program designed to identify, recognize and appreciate co-workers A total of 236
Slide 3: Chairman's Award – Winners
CHAIRMAN’S AWARD – WINNERS John Maher Neladean Irwin Director of Quality Production Operator ADG Jessup, Maryland AEP Auburn Hills, Michigan AirBoss of America | 3
Slide 4: Management Presentation
MANAGEMENT PRESENTATION AirBoss of America | 4
Slide 5: 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 Forward-looking information contained herein is made as of the date of this presenta
Slide 6: Diversification a Source of Stability
DIVERSIFICATION A SOURCE OF STABILITY External Net Sales1 Adjusted EBITDA1,2 $M Profit to Shareholders $M $M 105.6 587 46.7 47.4 502 33.7 36.1 477 80.3 10% CAGR 12.6 317 328 8.5 10.2 8.9 10.9 14% CAGR 45.3 32.2 26.1 -31.9 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 201
Slide 7: Consistent Dividend Growth
CONSISTENT DIVIDEND GROWTH Quarterly Dividend History C$ Current dividend of $0.12 C$0.10 $0.10 A historyof consistent dividends $0.08 15% CAGR1 $0.06 $0.04 $0.02 $0.00 AirBoss of America | 7 1. CAGR is calculated for the period 2010 – 2022 inclusive.
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 AirBoss of Ameri
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+ Proprietar
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 AirBoss of America | 10
Slide 11: Q1 2023 Financial Review
Q1 2023 Financial Review AirBoss of America | 11
Slide 12: Q1 2023 Financial Highlights
Q1 2023 FINANCIAL HIGHLIGHTS Net Sales $M Adjusted EBITDA1 $M Profit $M EPS $(FD) 144.5 19.7 9.6 9.6 0.34 0.34 117.1 10.3 1.5 1.6 0.05 0.06 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2022 2023 2022 2023 2022 2023 2022 2023 Adjusted 1 Adjusted 1 Net Sales Profit and Diluted Per Share Ear
Slide 13: AirBoss Defense Group
AIRBOSS DEFENSE GROUP ADG - Net Sales $M ADG - Gross Profit $M 0.9 Inter-Segment Net Sales 27.7 64.0 1.0 8.7 28.6 Q1 2022 Q1 2023 Q1 2022 Q1 2023 ADG’s Q1 2023 results reflect effects of HHS contract timing in 2022: ADG Net Sales declined to $28.6 M due to absence of nitrile gloves delivered to HH
Slide 14: AirBoss Rubber Solutions
AIRBOSS RUBBER SOLUTIONS ARS - Net Sales $M ARS - Gross Profit $M Inter-Segment Net Sales 4.6 5.7 8.0 7.6 56.7 55.2 Q1 2022 Q1 2023 Q1 2022 Q1 2023 ARS’ Q1 2023 results indicate lower sales across most sectors, with modest improvement toward quarter-end: ARS Net Sales declined by 2.7% due to overa
Slide 15: AirBoss Engineered Products
AIRBOSS ENGINEERED PRODUCTS AEP - Net Sales $M AEP - Gross Profit $M 0.9 Inter-Segment Net Sales 0.5 5.6 40.9 29.8 -4.1 Q1 2022 Q1 2023 Q1 2022 Q1 2023 AEP’s Q1 2023 results reflect updated agreements with key partners and customers: AEP Net Sales increased by 37.1% due to improved volumes across
Slide 16: Other Considerations
OTHER CONSIDERATIONS Cash Flow Operating cash flow excluding working capital was $7.3 M in Q1 2023 vs $13.1 M in Q1 2022 After working capital, cash flow provided by operating activities was $6.0 M in Q1 2023 vs ($32.7 M) in Q1 2022 CapEx $0.8 M in Q1 2023 Investments in plant upgrades at AD
Slide 17: 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 18: Strategic Value of Our Domestic Manufacturing Capacity
STRATEGIC VALUE OF OUR DOMESTIC MANUFACTURING CAPACITY 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 19: Outlook for Continued Growth
OUTLOOK FOR CONTINUED GROWTH Continued focus on: Organic growth focus: Market diversification: Emphasis on PPE consumables Capture new customers using Continue to secure new non- and Survivability solutions expanded compounding capabilities automotive customers Securing contract wins and Exp
Slide 20: Thank You. Questions?
THANK YOU. QUESTIONS? SHARE INFORMATION: Ticker Symbol TSX : BOS OCTQX : ABSSF Shares Outstanding 27,130,556 CONTACT DETAILS: Investor Relations ir@AirBoss.com www.airboss.com www.adg.com Shares outstanding are as of May 10, 2023. AirBoss of America | 20
Slide 21: Appendix
APPENDIX AirBoss of America | 21
Slide 22: 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