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(NYSE American: ACU)
Investor PresentationMarch 2020
Forward-looking statements in this report, including without limitation, statementsrelated to the Company’s plans, strategies, objectives, expectations, intentions andadequacy of resources, are made pursuant to the safe harbor provisions of thePrivate Securities Litigation Reform Act of 1995. Investors are cautioned that suchforward-looking statements involve risks and uncertainties including, withoutlimitation, the following: (i) changes in the Company’s plans, strategies, objectives,expectations and intentions, which may be made at any time at the discretion of theCompany; (ii) the impact of uncertainties in global economic conditions, includingthe impact on the Company’s suppliers and customers; (iii) changes in client needsand consumer spending habits; (iv) the impact of competition and technologicalchanges on the Company; (v) the Company’s ability to manage its growth effectively,including its ability to successfully integrate any business it might acquire; (vi)currency fluctuations; (vii) increases in the cost of borrowings resulting from risinginterest rates; (viii) international trade policies and their impact on demand for ourproducts and our competitive position, including the imposition of new tariffs orchanges in existing tariff rates; and (ix) other risks and uncertainties indicated fromtime to time in the Company’s filings with the Securities and Exchange Commission.
Safe Harbor Statement
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NYSE American: ACU
Leader in innovative safety solutions and cutting technology
Nine consecutive years of record sales (2010 – 2019)
Innovation rate approaching 30%
Premier and diversified customer base
Successful history of acquisitions
Reduced debt by 25% in 2019, positioning Acme United well to take advantage of future acquisition opportunities
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Corporate Overview Growth fueled by a combination of brands, technology and expanding distribution
Successful series of opportunistic acquisitions in two adjacent areas over 50 years
Leveraging ACU’s growth platform through shared technologies, cross-brand collaboration and cross selling that drive value across the platform
20111995 2000
First Aid Kits
Industrial First Aid
First Aid & Safety
AcmeMedical
Instruments & Packs
Founded 1867
2014
Industrial First Aid
2017
Industrial Safety
1995
Scissors &
Rulers
Industrial Shears
Knives
Cutting Solutions
Titanium coating begins
2002 2004 2007 2012 2015
Rulers
2016
Fishing Tools
Sharpeners
2020
Personal & Industrial First Aid
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Acquisition of First Aid Central Canadian first aid & safety supplier
acquired in January 2020
Complete line of first aid kits, refills & safety products for a broad range of customers
Expands ACU’s distribution capabilities, product offerings and online presence
2019 revenues of C$4.3 million
Expect acquisition to be accretive in 2020
Expanding Distribution
Diversified distribution network;strong growth in e-commerce channel
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Hardware, Industrial & Sporting Goods
7%
Office59%
Mass Market33%
E-Commerce1%
Hardware, Industrial &
Sporting Goods38%
Office20%
Mass Market30%
E-Commerce12%
2010 2019
Financial Results
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Net Sales$ Millions
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Ninth consecutive year of record sales in 2019, driven by new products and market share gains
$73.3$84.4
$89.6$107.2 $109.8
$124.6 $130.6$137.3 $142.5
$0$18$36$54$72$90
$108$126$144
2011 2012 2013 2014 2015 2016 2017 2018 2019
+4%
EBITDA
$5.3$6.4 $7.05
$9.0 $9.2$10.8 $10.7 $10.6
$11.8
$0
$2
$4
$6
$8
$10
$12
$14
2011 2012 2013 2014 2015 2016 2017 2018 2019
$ Millions
Strong and consistent EBITDA
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+11%
Net Income
$2.8$3.5
$4.0
$4.8 $4.8
$5.9$5.3
$4.6
$5.5
$0
$1
$2
$3
$4
$5
$6
$7
2011 2012 2013 2014 2015 2016 2017 2018 2019
+20%
$ Millions
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Earnings Per Share
$0.91$1.13
$1.22$1.36 $1.30
$1.64$1.42
$1.30
$1.60
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
2011 2012 2013 2014 2015 2016 2017 2018 2019
+23%
EPS significantly outperformed Acme United’s guidance for 2019
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Dividend History
$0.26$0.28
$0.31$0.34
$0.37$0.40
$0.43$0.44
$0.48
$0.15
$0.20
$0.25
$0.30
$0.35
$0.40
$0.45
$0.50
2011 2012 2013 2014 2015 2016 2017 2018 2019
Dividend increased 9%, to $0.12 per share, in January 2019
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Dividends Per Share
Focus on Innovation
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Smart Compliance Complete
Physical safety solution pairs with virtual SafetyHub
Complete safety solution center
Preparing for advancements in IoT
Push-to-open feature
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SafetyHub App Overview
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Fast, easy way to requisition and manage safety items
Set push notifications to check cabinet, perform physical inventory and establish annual budgets
Creates an OSHA log and ensures compliance
Manages facility items that need to be replenished, serviced or calibrated
SmartData provides business intelligence and benchmarks consumption
Targeting $700MM Van Service Market
Glide Technology Scissor Westcott tradition of first to
market innovations
Glide first mechanical technology in more than 50 years
Composite fulcrum and patent pending utility patent available across premium cutting technologies
Adjustable tension for cutting materials or user preference
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No tool adjustment
Low friction proprietary fulcrum
Adjustable tension
Glue Pen
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Tangle-free operation
Spec info charge life
Retails under $39
Color-changing nozzle
Easy glue dispense trigger
Quick glue stick release
Glue dispense control
Lithium Ion Glue Pen
Glue Pen and Lithium Ion Glue Gun
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DMT Sharpeners
The highest concentration of diamonds
The most consistent diamond dispersion
The flattest sharpening surface
The world’s finest sharpeners
Best hand tools for sharpening in the industry
Expanding in the home and culinary markets
Increased production capacityin mid-2019
Growth Drivers
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Growth Drivers - First Aid & Safety
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New first aid programs at large industrial, food service and other distributors
Growing refill business
Acquisition of First Aid Central in January 2020
Expanding product placement of Spill Magic
Cross sell all safety products into customer base
Growth Drivers - Cutting
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Leverage technologies
Patented titanium-nitride coatings
Proprietary non-stick coatings
Safety cutting tools with ceramic blades
Antimicrobial plastics for school and office
Enhanced carbonitride-titanium industrial tools
E-Commerce Strategy
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Enable growth through outstanding products with excellent reviews, strong content, and search and promotional strategies
Investments made in software, logistics, warehouse operations and human resources to optimize effectiveness
Extending categories and products with online retailers
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Financial Goals Generate solid revenue growth
Advance e-commerce strategy
Continue developing and introducing new products
Manage inventory and expenses tightly
Drive ongoing profits and reduce debt to fund future acquisitions and growth
Continue ACU’s history of regularly increasing dividends
Seek additional tuck-in acquisitions
Acme United well positioned to deliver strong financial results and long-term growth
Company ContactWalter Johnsen, Chairman & [email protected]
Investor RelationsHarriet Fried, [email protected]
