Slide 1: AAON, Inc. Investor Presentation
Norm Asbjornson, President & CEO AAON, Inc. Investor Presentation 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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
Slide 3: AAON company position and market opportunities
AAON provides designs of the highest quality and performance that lead the HVAC industry AAON offers innovative and differentiated products Provide more than just equipment; provide solutions Energy efficiency and “green” features currently drive the market – AAON is a leader in both Marke
Slide 4: Manufacturing Locations
Manufacturing Locations Two Facilities: Tulsa, Oklahoma Current 1.3M Sq. Ft. Upcoming Expansions 66,000 Sq. Ft Longview, Texas Current with Expansion 263,000 Sq. Ft. 4 Rooftop Units, Outdoor Mechanical Rooms, Large Self-Contained Units and Large Split Systems Split Systems, Small Chillers,
Slide 5: Product Families
Product Families 1 HANDLING UNITS sas {INDOOR AIR HANDLING UNITS
Slide 6: AAON Business Strategy
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 customers to determine the
Slide 7: AAON Market Strategy
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 technology leadership A
Slide 8: AAON Served Market Growth
AAON Served Market Growth Rooftops $ 3.0 B Chillers $ 1.0 B Air Handling Units $ 1.8 B Split Systems $ 5.2 B 2014 Served Market - $ 11.0 B 1988 Served Market - $ 50 M 8 * ** * Chiller market estimate based on industry news articles and reports. ** AHRI data includes both commercial and residen
Slide 9: AAON Sales Mix by Business Segment
AAON Sales Mix by Business Segment Lodging 5% Office 14% Commercial 18% Health Care 13% Educational 26% Religious 1% Manufacturing 18% Other 5% May not add to 100% due to rounding 9
Slide 10: U.S. Construction - 2008 to 2014
U.S. Construction - 2008 to 2014 10 U.S. Census Bureau Value of Construction (Annual) - AAON Sales Segments - http://www.census.gov/construction/c30/c30index.html Annual Value of Construction (Millions $) Year Construction Type 2008 2009 2010 2011 2012 2013 2014 Lodging 35,806 25,499 11,635 9,129 10
Slide 11: U.S. Construction - Percent Change of 2008 Spending
U.S. Construction - 2008 to 2014 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 100% 76% 55% 53% 55% 55% 65% Commercial 100% 63% 47% 50% 55% 59% 66% Health Care 100% 96% 84% 86% 91% 88% 83% Educational 100% 98%
Slide 12: U.S. Construction - 2+ year Non-residential Segments
U.S. Construction - 2+ year 12 Office, Commercial, Health Care, Educational, Manufacturing, Lodging, & Religious Non-residential Segments $244.5 $266.2 $303.1 $321.1 $356.3 $220.0 $240.0 $260.0 $280.0 $300.0 $320.0 $340.0 $360.0 $220,000 $240,000 $260,000 $280,000 $300,000 $320,000 $340,000 $360,000
Slide 13: Architecture Billings Index
Architecture Billings Index 13 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 January 2015
Slide 14: Financial Information
Financial Information 2009 2010 2011 2012 2013 2014 Dollars $3.1 M $19.5 M $3.7 M $6.7 M $8.2 M $29.3 M Shares Bought 557,271 2,776,748 475,574 757,632 533,489 1,488,229 Shares Outstanding 58,100,556 55,706,580 55,391,229 55,164,936 55,067,031 54,041,829 Shares Bought Shares Outstanding 0.96% 4.98%
Slide 15: Ratio Analysis
15 Ratio Analysis Profitability 2009 2010 2011 2012 2013 2014 Return on Average Equity 25.8% 18.7% 11.7% 21.1% 24.8% 26.1% Return on Average Assets 17.7% 13.7% 7.8% 14.2% 18.4% 19.7% Pre-Tax Income on Sales 17.9% 13.4% 8.1% 14.6% 17.5% 19.2% Net Income on Sales 11.3% 9.0% 5.3% 9.1% 11.7% 12.4% Debt
Slide 16: Company Backlog
Company Backlog December 31, 2013 backlog of $45.3 M December 31, 2014 backlog of $48.8 M 38.4 44.0 43.6 45.3 48.8 - 10.0 20.0 30.0 40.0 50.0 60.0 December 2010 December 2011 December 2012 December 2013 December 2014 Order Backlog (millions) 16
Slide 17: Sales Performance
Sales Performance 27.7 21.9 14.0 27.5 37.6 44.2 245.3 244.6 266.2 303.1 321.1 356.3 2009 2010 2011 2012 2013 2014 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 0 50 100 150 200 250 300 350 400 2009 2010 2011 2012 2013 2014 Net Income (millions) Sales (millions) 17 Net Sales (m il
Slide 18: Sales Dollars Per Capita
Sales Dollars Per Capita 311.72 314.11 316.50 318.86 266.22 303.11 321.14 356.32 $0.864 $0.965 $1.015 $1.117 0.8 0.9 1 1.1 1.2 1.3 1.4 200 220 240 260 280 300 320 340 360 380 2011 2012 2013 2014 U.S. Population (millions) Sales (millions) Sales $ per Capita 18 P op ula tio n a nd Sales (m ill ions )
Slide 19: Financial Performance
Financial Performance 0.68 0.80 2.11 2.24 2.95 3.14 55,587 55,369 55,000 60,000 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 2009 2010 2011 2012 2013 2014 EPS Fully Diluted (Adjusted for splits)(Left scale) Stock Price/10 (Adjusted for dividends and splits) (Left scale) Stockholders' Equity Per Share (Ad
Slide 20: Financial Performance - Year
Financial Performance - 26 Year 20 As of December 31, 2014
Slide 21: Stock Performance – 20+ year
Stock Performance – 20+ year 21 Chart available from www.google.com/finance - Stock Splits and Dividends shown
Slide 22: Stock Performance – 20+ year Comparison with NASDAQ and S&P 500
Stock Performance – 20+ year 22 Chart available from www.google.com/finance Comparison with - NASDAQ - .INX = S&P 500
Slide 23: Defining Quality. Building Comfort. AAON
Defining Quality. Building Comfort. AAON