Omni-Lite Industries Canada Inc. · TSXV:OML

Omni-Lite Industries Canada — Investor Presentation (February 2017)

21 slides from Omni-Lite Industries Canada's investor presentation, February 2017

  1. Slide 1: Omni-Lite Industries Investment Presentation

    Omni-Lite Industries INVESTMENT PRESENTATION February 2017

  2. Slide 2: Mission Statement

    MISSION STATEMENT LEADERSHIP IN MATERIAL SCIENCE FOR MISSION CRITICAL APPLICATIONS 2

  3. Slide 3: Investment Highlights

    INVESTMENT HIGHLIGHTS • Branded leader in advanced material solutions for mission critical applications for aerospace and military applications • Several multi-year contracts in the aerospace, military, and automotive industries • Growing company in growing industries • Predominately sole source sup

  4. Slide 4: Market, customers and financial model highlights

    • Worldwide market of approximately $15 billion per year • Tier 1 customer base: U.S. Military, Alcoa, Monogram, Ford, Bosch, Chrysler, John Deere, and Nike • Growing forward visibility driven by longer term contracts & rising backlog • High margin financial model: gross margin greater than 60% and

  5. Slide 5: Our Customers

    OUR CUSTOMERS SOLEING aa. ; BOSCH x* BorgWarner ALCOA Olin wwcuesm war. reed 5 MNI-LITE INDUSTRIES

  6. Slide 6: Q3 2016 Adjusted EBITDA

    Q3 2016 ADJUSTED REVENUE CASH FLOW EBITDA 9% 44% 30% NET INCOME EPS 36% 48% 6

  7. Slide 7: Dashboard August 31, 2016

    DASHBOARD August 31, 2016 BACKLOG YTD BOOK-TO-BILL $11.1 MM 1.2 YTD 7

  8. Slide 8: 14 Steps to Success

    14 STEPS TO SUCCESS 1. Passionate, driven management with “skin in the game” who are constantly “leaning forward” 2. Large barrier to entry (moat) including intellectual property (8 patents), significant capital costs, and specialized engineering skillsets 3. World class customers 4. Constant new pr

  9. Slide 9: 14 Steps to Success (continued)

    6. Customer & product diversification 7. Pristine balance sheet with zero debt and the ability to raise significant funds if and when an opportunity arises 8. Financial metrics with significant leverage from new programs (catalysts for growth include hot heading of titanium and two new U.S. Military

  10. Slide 10: 14 Steps to Success (continued)

    11. World-class facility & employees 12. Networked robotic manufacturing and data processing systems 13. Custom development of precision, mission critical components 14. Low go-forward cap ex, maintaining strong working capital 10

  11. Slide 11: Vision 2020 Plan

    VISION 2020 PLAN • Create superior shareholder value through development of quality products, financial discipline, and prudent investment • Sales growth of 20% to 25% per year • Commission 35 progressive cold forging systems • Maintain research and development efforts for future initiatives • Conti

  12. Slide 12: reanenrey |

    reanenrey | We abe Pa (ee Ree oe Wee ee etal ole tle ele ele ele ole ol 12 MNI-LITE, INDUSTRIES

  13. Slide 13: Annual Revenues (USD)

    ANNUAL REVENUES (USD) 8 7 $7.5 $7.2 6 $ MM US $5.9 5 +28% 4 3 2 1 0 2014 2015 2016 (Est.) YEAR 13

  14. Slide 14: Annual Gross Margin & Adjusted EBITDA Ratio

    ANNUAL GROSS MARGIN & ADJUSTED EBITDA RATIO 70.0% 60.0% 50.0% 62.0% 57.0% ADJUSTED 40.0% 55.0% EBITDA up 86% 30.0% 35.0% 31.0% 20.0% 21.0% 10.0% 0.0% 2014 2015 2016 (Est.) GROSS MARGIN ADJUSTED EBITDA MARGIN 14

  15. Slide 15: Industry Firsts

    INDUSTRY FIRSTS • Developed product that was awarded one of the top 10 innovations for the U.S. army in 2010 • Developed several components for the U.S. Military between 1998 and 2016; now have 5 components qualified for manufacture with new component development underway • Sole source for over 70%

  16. Slide 16: Industry Firsts (continued)

    • Brake and transmission components utilized in approximately 6 million autos each year (35% of North American production) • Developed complex aerospace fasteners for robotic assembly of composite aircraft • Developed cold headed components for multi-part fasteners utilized on all commercial and mil

  17. Slide 17: Progressive Cold Forging

    PROGRESSIVE COLD FORGING • One of the most cost effective manufacturing techniques: replaces older technologies • Offers high repeatability at production rates up to 200 PPM • Highly oriented towards robotic processes. Omni- Lite has networked all 35 systems into a monitoring & control system called

  18. Slide 18: Our Markets

    OUR MARKETS • Aerospace • Military • Specialty Automotive • Sports and Recreation 18

  19. Slide 19: Go Forward Strategy

    GO FORWARD STRATEGY • Drive Penetration with Tier 1 Customers • Forward Integrate to Greater Subsystem Capability • Leverage Solutions to Additional Customers in the Same Industry • Expand Production Capacity to Support Growth • Expand and Strengthen Management Team 19

  20. Slide 20: Reminders

    REMINDERS 1. Subscribe to our investor update system directly on the Omni-Lite website at www.omni-lite.com or pass me your business card. 2. For more technical information on the Company, please check out the Corporate Presentation on Omni-Lite’s website. 3. This Investment Presentation can be down

  21. Slide 21: Forward-looking statements

    Except for historical information contained herein this document contains forward-looking statements. These statements contain known and unknown risks and uncertainties that may cause the Company’s actual results or outcomes to be materially different from those anticipated and discussed herein. 21

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