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ANNUAL MEETING
May 10, 2007
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ANNUAL HIGHLIGHTS
2006FISCAL YEAR
(millions)2006 2005
SALES $230.6 226.2
NET INCOME 6.5 1.6 300%
EPS 0.29 0.07
SHAREHOLDERS” EQUITY $ 64.1 $ 56.2 14%
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2006 ACCOMPLISHMENTS
Geographical Expansion
Rubber Compounding – North Carolina
South American Track Project
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2006 ACCOMPLISHMENTS
Product Innovation
South America Track Fastening plus proto-type long reach clips
3rd Generation CBRN footwear in production & 4th generation in proto-type
1st CBRN Fireboot
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2006 ACCOMPLISHMENTS
Efficiency & Stability
Rubber Compound Cycle Times
Improvements in Acton-Vale and Scotland Neck
Renewed Debt Facilities
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PLANT TOUR
Tour is available online at:
http://www.airbossofamerica.com/agm-2007/tour/
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FIRST QUARTER HIGHLIGHTS
1st QUARTER(millions)
2007 2006SALES $59.7 $61.1
GROSS MARGIN 6.4 8.3
EXPENSES 3.9 4.9
INTEREST 0.7 0.8
EBT $ 1.7 $ 2.7
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FIRST QUARTER HIGHLIGHTS
Major Markets Improving
BELTING
RUBBER TRACK
MILITARY
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RECENT NEWS
Rail Products
New Mexico Rail Runner Project• 77,000 Tie Project with New Tie Captive System
Continuation of South America with a 465,000 Clip Order
Newly Designed HD Insulator approved by BNSF
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RECENT NEWS
AirBoss-Defense
Finalizing an order for $3 Million AMG
Letter of Intent for $6.4 million Gas Masks with an option for $3.2 million
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RECENT NEWS
Rubber Compounding
Strategic Alliance Agreements with many of NA Leading Rubber Products Manufacturers in Various Market Segments
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VIDEO
Video is available to view at:
http://www.airbossofamerica.com/agm-2007/video/
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CHAIRMAN’S CLOSING COMMENTS
• AirBoss has been profitable since 1995• We continue to see growth for the future
As a result of the significant investments we have recently made we can grow compounding revenues by almost 50% with current capacity
Conveyor belting demand forecast to continue to grow Defense – finally getting orders! New products being developed
• Valuation Recent industry transactions would suggest that our shares are
significantly undervalued Sale of Goodyear industrial products @ 1x sales
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CHAIRMAN’S CLOSING COMMENTS cont’d.
Recent transactions in the defense sector would value our defense division at close to $2 per share.
We will continue to work to improve our valuation
• New Dividend Policy Semi-annual dividend Initial 2.5 cents payable to shareholders of record June 30, 2007
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QUESTION AND ANSWER PERIOD
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FORWARD LOOKING STATEMENT DISCLAIMER
This report contains forward-looking statements, which reflect managements best judgment based on factors currently known but involve significant risks and uncertainties.
Actual results could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including but not limited to risks more fully described in the “Risk Factors” section of the Company’s Annual Report, and other risks detailed in filings with the Ontario Securities Commission.
Forward-looking information provided pursuant to the safe harbor established by recent securities legislation should be evaluated in the context of these factors.
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THANK YOU!
CUSTOMERS
SHAREHOLDERS
DIRECTORS
EMPLOYEES