Slide 1: FTG Corporation: Aerospace & Defence Electronic Products & Subsystems
FTG CORPORATION Aerospace & Defence Electronic Products & Subsystems FTG: TSX October 2025
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG’s operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as “anticip
Slide 3: FTG Today: Pioneering Aerospace & Defence Solutions
FTG Today: Pioneering Aerospace & Defence Solutions A Global Force, Crafting Cutting-Edge Electronic Products and Subsystems that Propel the Industry Forward Markets Products Cockpit and Avionics Printed Circuit Boards Products Aerospace & Defence FTG Aerospace FTG Circuits TSX: FTG 3
Slide 4: FTG at a Glance
FTG at a Glance Financial And Operational Snapshot ✓ TSX: FTG ✓ 34% 3-year CAGR Driven by Acquisitions & Organic Growth: ✓ $162M Sales in 2024 ✓ $135M Sales in 2023 ✓ $90M Sales in 2022 ✓ 10 Sites Globally: ✓ 5 in USA ✓ 3 in Canada ✓ 2 in China ✓ Plus 1 site under construction in India ✓ 25.2M Com
Slide 5: FTG Strategic Initiatives
FTG Strategic Initiatives Operating Performance Deliver Value to Customers Growth Reduce Costs, improve Increase Efficiencies Operating Leverage Expand Pursue Market Technology, High Positioning Geography, Margin Capacity Business Advanced Acquisitions Technology TSX: FTG 5
Slide 6: FTG - Strong Leadership Team
FTG - Strong Leadership Team Operational Excellence – Building the team to support future growth and success –with dramatically increased bench-strength Brad Bourne CEO CORPORATE LEADERS OPERATIONS LEADERS Drew Knight Peter Dimopoulos Bill Sezate Marko Viinikka CFO VP Sales EVP Circuits EVP Aerospac
Slide 7: FTG Strategic Initiatives
FTG Strategic Initiatives Operating Growth Performance Deliver Value Increase to Customers Reduce Costs, Operating Improve Leverage Efficiencies Expand Pursue Market Technology, High Positioning Geography, Margin Capacity Business Advanced Acquisitions Technology TSX: FTG 7
Slide 8: FTG Scalable Economics
FTG Scalable Economics Top Line Drives Bottom Line CAD/USD Exchange Rate 100 $1.70 90 Direct Labour Variable Cost $1.60 80 ~70% $1.50 70 $1.40 60 Material $1.30 Percent 50 $1.20 40 Fixed Cost $1.10 30 Indirect Labour ~30% $1.00 20 $0.90 10 Infrastructure 0 Contribution Margin of ~30% on incremental
Slide 9: Commercial Aircraft Deliveries
Commercial Aircraft Deliveries AIRCRAFT DELIVERIES 1200 Airbus Airbus total backlog 8,716 1000 ▪ Airbus shipped double Boeing’s shipments in 2024 800 ▪ Airbus expected to AIRCRAFT approach 2019 shipments levels in 2025 # Aircraft 600 Boeing total backlog 6,531 400 Boeing 200 ▪ Boeing impacted by A
Slide 10: US Defence Spending
US Defence Spending 1000 US DEFENCE SPENDING 950 Current budget request 900 850 $B 800 750 700 650 600 550 500 2018 2019 2020 2021 2022 2023 2024 2025 2026 Defence spending is increasing as geopolitical tensions increase around the globe TSX: FTG 10
Slide 11: FTG's Multiple Levers For Continued Growth
FTG’s Multiple Levers For Continued Growth 4. New Technology Increase product offerings to grow content per aircraft 2. New Programs Win content on new programs in development 3. Operational Excellence Quality, delivery, 6. Acquisitions customer service In support of increased 1. Market/ Industry ca
Slide 12: FTG Strategic Initiatives
FTG Strategic Initiatives Operating Performance Growth Deliver Value to Customers Reduce Costs, Increase Improve Operating Efficiencies Leverage Expand Technology, Pursue High Geography, Market Margin Capacity Business Positioning Acquisitions Advanced Technology TSX: FTG 12
Slide 13: Barriers to Entry
Barriers to Entry Technology/Capabilities Government certifications Customer certifications and approvals Customer Relationships Operational Performance Financial Strength Global Footprint TSX: FTG 13
Slide 14: Aerospace Technology Growth
Aerospace Technology Growth Technology Growth Drives Higher Content Per Electronic Aircraft And Accelerates Revenue Growth Assembly Power Supply Panel Switch Panel 45% of 2024 sales Electro-mech are assemblies Assembly Keyboard TSX: FTG 14
Slide 15: Circuits – Technology Growth
Circuits – Technology Growth HDI Micro Vias Hybrid Materials Semi / Fully Rigid Flex High Frequency Thermal Sequential RF Circuitry Additive Process Assembly RF Circuitry Management Lamination Digital Circuitry UHDI Filled Vias Over 50% of sales are high technology or specialty products TSX: FTG 15
Slide 16: Market Positioning
Market Positioning Benchmarking Process Used To Assess Financial Attractiveness Of Various Market Segments After market Simulators Margins Aerospace Defence Cash Cycle Future investment decisions will drive FTG towards higher margin business TSX: FTG 16
Slide 17: FTG Strategic Initiatives
FTG Strategic Initiatives Operating Performance Deliver Value Growth to Customers Reduce Costs, Increase Improve Operating Efficiencies Leverage Pursue Market Expand High Technology, Margin Positioning Geography, Business Capacity Advanced Technology Acquisitions TSX: FTG 17
Slide 18: Corporate Development Milestones
Corporate Development Milestones Company Founded Acquires Filtran Acquires Helix Circuits Micro Circuits Photo Etch Company renamed Incorporates FTG Acquires Teledyne PCT Circuit World Aerospace Tianjin Acquires Colonial FTG completes FTG Aerospace Chatsworth Circuits reverse takeover Grand Opening
Slide 19: FLYHT Acquisition
FLYHT Acquisition Deal closed December 20, 2024 Enterprise value of approximately $23M ~$13.7M in equity and assumption of debt (debenture and Government debt) Approximately $20M in sales Nearing completion of 3 new/updated aftermarket products Key Strategic Benefits Increase FTG’s penetration of th
Slide 20: FLYHT Acquisition
FLYHT Acquisition Products Satcom communications via Iridium Satellite system (AFIRS 228) Backup aircraft safety communications system Aircraft data transmission system for enhanced operations management In service for many years, with design update just completed Factory option for all Airbus aircr
Slide 21: FLYHT Acquisition
FLYHT Acquisition Path Forward Reduce operating costs Reduce internal costs - FLYHT restructured in September 2024 significantly reducing labour costs Product development efforts winding down Eliminate public company costs Total savings estimated at ~$4M annually Aggressively sell all products again
Slide 22: Future M&A Considerations
Future M&A Considerations Future Acquisitions Key criteria for future acquisitions include: ▪ Aligned with FTG market and product focus ▪ Expand technology offering ▪ Expand geographic coverage ▪ Europe for commercial airspace ▪ Europe, India, other top ten countries outside of US for defence ▪ Acce
Slide 23: Capital Allocation
Capital Allocation Capital allocation plans include: 1. Invest organically to ramp throughput and drive technology 2. Pursue corporate development opportunities 3. We have an NCIB to buy back up to 5% of outstanding shareholder stock ▪ 616,400 shares repurchased since 2022 Deploy cash available to i
Slide 24: Financial Highlights – By Quarter
Financial Highlights – By Quarter $10,000 $60,000 $8,000 $50,000 $6,000 $40,000 $4,000 $30,000 ADJ EBITDA Revenue $K $2,000 $20,000 $K $0 $10,000 -$2,000 $0 Q1 21 Q1 22 Q1 23 Q1 24 Q1 25 Revenue Adj EBITDA Revenue has more than doubled since pandemic lows TSX: FTG 24
Slide 25: Balance Sheet Highlights
Balance Sheet Highlights $55 $50 $45 Working $40 Capital $35 $30 $25 $M $20 $15 $10 $5 $0 Net -$5 Cash/Debt -$10 -$15 Working Capital | Working capital remains strong after the acquisitions Net Cash | FTG has minimal debt after completing two acquisitions in 2023 and one in 2024 TSX: FTG 25
Slide 26: Cash Flow Highlights
Cash Flow Highlights Cash Conversion (1) 14,000 12,000 10,000 8,000 $K 6,000 4,000 2,000 0 2018 2019 2020 2021 2022 2023 2024 Q3 YTD 25 Cashflow Net Income Cash conversion above 100% every year except 2023/24. 2023/24 cash conversion impacted by large ramp in production (1) Cashflow excludes acquisi
Slide 27: FTG's Stock Performance
FTG’s Stock Performance Stock is up about 500% in the last decade FTG TTM EV/EBITDA is ~8.4X FTG now trades on the OTCQX market in the US – ticker FTGFF Investor Research Reports: Company Raymond James Acumen Beacon Rating Outperform 2 Buy Buy Target Price $15.00 $15.00 $17.00 TSX: FTG 27
Slide 28: ESG at FTG
ESG at FTG Focus On Environmental, Social & Governance Factors Across All Operations Environment: Reduction of impact on the environment in areas such as water recycling, higher efficiency equipment, and committed further investments, with the support of the Canadian and Ontario Governments. Social:
Slide 29: FTG Corporation
FTG CORPORATION www.ftgcorp.com | FTG: TSX FTG: TSX