Airboss Of America Corporation · TSX:BOS
Airboss Of America — Q3 2023 Earnings Presentation
30 slides from Airboss Of America's earnings presentation, November 2023
Slide 1: Building Value Through Innovation
BUILDING VALUE THROUGH INNOVATION AIRBOSS INVESTOR PRESENTATION NOVEMBER 2023
Slide 2: Forward-Looking Information and Disclaimers
FORWARD-LOOKING INFORMATION AND DISCLAIMERS FORWARD-LOOKING INFORMATION DISCLAIMERS Certain statements contained or incorporated by reference herein, including those that express management’s expectations or estimates of future This presentation has been prepared by AirBoss of America Corp. (“AirBos
Slide 3: Pioneers of Innovation & Technology
PIONEERS OF INNOVATION & TECHNOLOGY Over 30 years OF GROWTH 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 Completed purpose-bui
Slide 4: 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 5: 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 6: Diversification a Source of Stability
DIVERSIFICATION A SOURCE OF STABILITY External Net Sales1 $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% CAGR 12.6 8.5 10.2 8.9 10.9 317 328 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: Leader in Custom Rubber Compounding
LEADER IN CUSTOM RUBBER COMPOUNDING. 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+ Propri
Slide 8: Innovator in Anti-Vibration
INNOVATOR IN ANTI-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 | 9
Slide 9: 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 10: Consistent Growth Through Multiple Economic Cycles
CONSISTENT GROWTH THROUGH MULTIPLE ECONOMIC CYCLES $Millions We have : 700 AirBoss’ Revenue History ▪ Consistent focus on innovation and 650 competitive advantages 600 COVID-19 Recession 550 ▪ Diversified customer sectors to mitigate 500 risk of economic and contractual cycles 450 and develop natura
Slide 11: AirBoss Outperforms the Industry
AIRBOSS OUTPERFORMS THE INDUSTRY AirBoss Revenues vs U.S. Rubber and Plastics Products (rebased to 1.0 as at 2000) 7.0 6.0 As we have consistently Plastics and Rubber AirBoss Revenues expanded our 5.0 Defense Capital Goods addressable market, Multiple of 2000 Revenues 4.0 our growth has exceeded our
Slide 12: Strategic Value of Our Domestic Manufacturing Capacity
STRATEGIC VALUE OF OUR DOMESTIC MANUFACTURING CAPACITY ✓ Ideally positioned to win U.S. government contracts ✓ Professionally managed supply chain with optimized shipping capabilities to domestic customers Acton-Vale, PQ Newmarket, ON Kitchener, ON Auburn Hills, MI Rochester, NY Jessup, MD Scotland
Slide 13: Shareholder Dividends
SHAREHOLDER DIVIDENDS Quarterly Dividend History C$ $0.10 Current dividend of $0.08 C$0.07 $0.06 $0.04 $0.02 $0.00 AirBoss of America | 13
Slide 14: Focused on Sustainability
FOCUSED ON SUSTAINABILITY Meaningful progress in AirBoss’ ESG-related disclosures: Our ESG focus areas: ▪ 2022 – Developed our ESG reporting practices and published ENVIRONMENT SOCIAL AND AND RESOURCE INNOVATION our inaugural Sustainability Report MANAGEMENT GOVERNANCE ▪ 2023 – Published our 2nd ESG
Slide 15: Innovation & Execution in Our Business Segments
INNOVATION & EXECUTION IN OUR BUSINESS SEGMENTS AirBoss of America | 15
Slide 16: 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: P
Slide 17: 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 18: 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 19: 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 20: 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 21: 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 22: Driven & Dedicated Management Team
DRIVEN & DEDICATED MANAGEMENT TEAM P. Gren Schoch ▪ Founded and chaired Petromet Resources in 1982; sold to Talisman for $900 million Chairman & Co-CEO ▪ Co-founder of Aurora Oil & Gas; sold for $2.6 billion in 2014; Founded AirBoss in 1989; Chairman - 1989, CEO - 2013 Chris Bitsakakis ▪ More than 3
Slide 23: 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 Chairman & Co-CEO ▪ Co-founder - Aurora Oil & Gas; sold for $2.6 billion in 2014; Founded AirBoss in 1989; Chairman - 1
Slide 24: Appendix
APPENDIX AirBoss of America | 24
Slide 25: Q3 2023 Financial Highlights
Q3 2023 FINANCIAL HIGHLIGHTS Net Sales $M Adjusted EBITDA $M Profit $M EPS $ (FD) 104.7 102.2 7.2 -0.17 -4.6 1.3 -56.0 -2.07 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Net Sales Profit and Diluted Per Share Earnings ▪ 2% decrease vs. Q3 in 2022 due to lower volumes within ▪ Impr
Slide 26: Q3 2023 - AirBoss Defense Group
Q3 2023 - AIRBOSS DEFENSE GROUP ADG - Net Sales $M ADG - Gross Profit $M Inter-Segment Net Sales 2.6 0.4 0.8 23.2 20.4 -51.3 Q3 2022 Q3 2023 Q3 2022 Q3 2023 ADG’s Q3 2023 results show lower sales volumes, increase gross profit due to one-time write down in Q3 2022: ▪ ADG Net Sales decreased by 10% d
Slide 27: Q3 2023 - AirBoss Rubber Solutions
Q3 2023 - AIRBOSS RUBBER SOLUTIONS ARS - Net Sales $M ARS - Gross Profit $M Inter-Segment Net Sales 8.4 7.6 6.1 6.5 52.4 44.5 Q3 2022 Q3 2023 Q3 2022 Q3 2023 ARS’ Q3 2023 results indicate lower sales across most sectors: ▪ ARS Net Sales declined by 12.9% due to lower production volumes from decrease
Slide 28: Q3 2023 - AirBoss Engineered Products
Q3 2023 - AIRBOSS ENGINEERED PRODUCTS AEP - Net Sales $M AEP - Gross Profit $M Inter-Segment Net Sales 0.1 3.6 0.0 37.3 29.1 -4.1 Q3 2022 Q3 2023 Q3 2022 Q3 2023 AEP’s Q3 2023 results reflect updated agreements, higher volumes, and product mix benefits: ▪ AEP Net Sales increased by 28.5% due to high
Slide 29: 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 30: Thank You
THANK YOU. 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 November 8, 2023. AirBoss of America | 30