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1
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2
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3
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4
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- Results were Defense Driven
- Sales Increase 35%
- Margin Increase 75%
- Mix, Volume and Exchange
- Rubber Compounding
- Sales down 16% better than
industry average
- 2008 high priced inventory
gone by April
- Volume improvements
noticeable in April
- * Read in Conjunction with
1st Quarter Report
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5
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6
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7
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8
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9
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- 2005 2008
- # of customers over $0.5 MM 29 35
- Top 41 accounts as % of total 98.8% 99.1%
- # Top accounts w/good growth 17
- % US sales 55.0% 59.2%
- % Canadian sales 44.9% 39.6%
- % International sales 0.1% 1.2%
- Lbs sold from SN facility 0 22.9 MM
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10
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- Focused growth Segments
- Defense total (Internal & External) Increased by 175%
- Mining Increased by 32%
- De-emphasized Segments
- Automotive Reduced by 12%
- Tires Total Reduced by 38%
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11
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- 103 MM lbs of NPD opportunities - 23 MM lbs in 2009/early 2010.
- Kitchener trials to yield 13.8 MM lbs/year.
- Scotland Neck trials to yield 6.4 MM lbs/year.
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12
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- In 2008 absenteeism was down 42.5% versus 2005.
- In 2008 we saw the following Health and Safety improvements versus 2005
- # recordable injuries down by 42.5%
- # of lost time days down 76.4%
- # of light duty days down 44.4%
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13
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- Throughput/hr has increased by 19.4%
- Downtime has been reduced by 20.1%
- % rework is down by 12.4%
- PPM returns are down by 43.4%
- On-time delivery has improved so much that’s its now a significant
competitive advantage.
- We have maximized/optimized efficient equipment.
- Kitchener’s break even point has been reduced by 20%.
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14
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- Developed a segmented sales approach and focus.
- Targeted new markets/segments.
- De-centralized operational functions.
- Improved speed to market.
- Reduced system wide waste with focus only on value added activities
- Global procurement enhancement.
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15
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- ARC’s customer base is more diversified than ever.
- ARC’s global footprint is a competitive advantage and expanding.
- ARC operationally is performing very well.
- ARC is now a better place to work for our associates and they continue
to make ARC a great company.
- ARC has a healthy balance
sheet and is solid financially
- As our addressable markets consolidate only the strong suppliers with
survive – ARC is a strong supplier.
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16
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- ARC will expand rapidly into traditionally non core segments/markets.
- Stress in the markets will provide opportunities for those in a solid
enough position to take advantage of them - we will be there for the
long haul.
- We will continue to build on our US presence via our new Scotland Neck
facility.
- We are a solid #2 in the America’s and heading for #1.
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17
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18
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- SALES
- 2007 $27 MILLION
- 2008 $38 MILLION 40%
- 2009 Another 30% to 40% possible
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19
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20
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21
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- 2nd Quarter production changes to meet demand:
- Injection moulding 3 shifts,
7days/week
- Overboot capacity increased
- U.S. Expansion project
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22
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- Location announcement 30 days
- In production 1st Quarter 2010
- Injection Moulding
- Gloves
- Next Generation Overboot
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23
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- Volume increases, favorable product mix and exchange will positively
impact profitability
- Most of net U.S. $ receipts locked in at $0.82 for 2009
- 2010 will be even more exciting
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24
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- AirBoss has recorded
operating profits since 1995
- We continue to see growth
for the future
- Defense sales increases in
2009 and further expansion in 2010
- Rubber Compounding Division
returning to normal profitability
- Exploring value added
opportunities
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25
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- Continuation of Dividend
Policy
- Semi-annual dividend
- 2.5 cents payable to
shareholders of record June 30, 2009
- Issuer Bid to purchase up
to 1.8 million Company shares
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26
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27
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28
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29
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Notes
