AirBoss of America Corp. Infrastructure +Defense+ Heavy-Duty Conveyor Belts + Technology Based Solutions Defense and Industry. AirBoss of America Corp.

AirBoss of America Corp.

Infrastructure + Defense+ Defense+ Heavy-Duty Conveyor Belts +

Technology Based Solutions

Defense and Industry.


January, 2011


2

Agenda

Overview

AirBoss Rubber Compounding

AirBoss Engineered Products

Management and Personnel

Introduction


3

• AirBoss of America Corp., develops, manufactures, and sells rubber-based products for military, transportation, and industrial markets in North America and Europe

(1) Excludes Railway division which was sold in December 2008

(2) As per consensus analyst estimates


EBITDA (C$ Millions)(1)

$25.1

$16.3$17.0

$11.7

$29.6

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

2007 2008 2009 2010E(2) 2011(2)

EBITDA


4

Investment Highlights

North America’s premier industrial rubber producer• 2009 EPS $0.26

• 2010 EPS $0.55 (analyst estimate) – Nine Month September 30 actual $0.40

• Future earnings growth highly levered to filling existing compounding capacity and new defense products

• High insider ownership (24%) with management focused on enhancing shareholder value

Rubber Compounding• #1 supplier of rubber compounds to the North American mining and coal industries

• Second largest rubber compound manufacturer in North America

• Positioned to take advantage of tire company recovery

AirBoss-Defense• World leader in the supply of CBRN protective gloves and boots, including sole supplier to US

Military

• Sole supplier of gas masks to Canadian DND

• 2010 Vermont manufacturing expansion to service increased demand from US military

• Recently announced $22 million in new contracts

• Actively seeking strategic acquisition opportunities


5

Agenda

Introduction





AirBoss Rubber Compounding - Overview

• Manufactures over 1,000 different un-vulcanized custom compounds from synthetic or natural rubber for a wide variety of customers in North America

Revenue Trend

$0

$40

$80

$120

$160

$200

$240

2005 2006 2007 2008* 2009 2010 EST Capacity

(millio

ns C

$)

EBITDA Trend

$0.0$2.0$4.0$6.0$8.0

$10.0$12.0$14.0$16.0$18.0

2005 2006 2007 2008* 2009 2010 EST Capacity

(millio

ns C

$)

Note: 2009 EBITDA was negative due to inventory write-downs

Overview



Products +

Infrastructure

Oil & Gas

Cable & Wire

Heavy-duty Conveyor Belts

Mining

Tire & Track

Industrial Automotive

Defense

Compounded Rubber: 250 million pounds capacity1

• AirBoss is one of North America's leading custom rubber mixers with the capacity to supply over 250 million pounds annually.

• We continually invest in our manufacturing. Our main facilities in Ontario and Quebec, are supplemented by a state-of-the-art mixing facility in Scotland Neck, North Carolina. 7


8

AirBoss Rubber Compounding – Market Segments

• ARC manufacturers over 1,000 different un-vulcanized custom compounds from synthetic or natural rubber, strengthening agents and various additives and chemicals.

• Formulas are developed by ARC’s chemists and technical staff to meet specific customer requirements.

• End uses for the rubber compounds include: Conveyor Belting, Mining and Industrial, Solid Tire, Defense, and Auto and Truck Parts.

9%

23%

7%13%

37%

11%

Automotive Mining/Industrial Solid tire

Retread Belting Defense



Products

Heavy-duty

Conveyor Belts

Heavy-duty Conveyor Belts 37%1

• AirBoss is the largest compound supplier in North America to the conveyor belt industry.

• Principal uses are coal and hard rock mining

• Agricultural a growing segment

• Other Growth Potential – Oil Sands, South America, tires 9



Products

Mining

1 Mining and Industrial 23%

• AirBoss supplies abrasion resistant compounds for mining truck bed liners and ball mill liners

• Largest independent supplier of off road tire retread compounds

10



Products

Defense

1 Defense 11%

AirBoss supplies rubber compounds to other defense contractors as well as supplying material to repair tank tracks and wheels.

11



New Markets

Cable & Wire

Cable & Wire:1

Expected Growth over next 24 months

• Ongoing recovery of North American OEM tire markets

• New market segments such as wire and cable

• Gradual recovery of US industrial base12


13

Leveraging Existing Capacity

Currently at 66% ( 3 locations)

Moving to 90% in next two years

Kitchener - Replacement Cost: US$50 million Scotland Neck - Replacement Cost: US$15 million


14

AirBoss Rubber Compounding- Key Success Factors cont..Competitive advantages

• Large capacity, state-of-the-art equipment and high level of automation results in highest quality

• Maximize efficiency due to larger batch size and shorter production cycles

• Utilize world-wide purchasing and strong technical staff in the dedicated labs.

• Ability to source raw materials worldwide

• Accredited lab for product development


15

Agenda

Introduction





16


Overview

AirBoss-Defense accounts for over 70% of AirBoss Engineered Products revenue

AirBoss Engineered ProductsRevenue by Operating Division (est.)

AirBoss-Defense Industrial Products Group


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AirBoss-Defense manufactures protective wear for military and first response applications including gas masks, rubber gloves, boots, over-boots for military applications requiring CBRN contaminant protection, extreme cold weather ("ECW") footwear protection for military use and rubber compounds and pre-forms for military tank track repair.

CBRN Products include:

AirBoss-Defense

AirBoss Moulded Glove AirBoss Lightweight Over-boot C-4 Gas Mask


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• Sole supplier of CBRN protective hand wear and foot wear to Canada, US and many NATO countries

• Sole supplier of gas mask to Canadian DND

• Also supply ECW products and tank repair products

AirBoss Engineered Products; AirBoss-Defense highlights


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AirBoss Engineered Products; AirBoss-Defense Sales TrendAirBoss-Defense volumes positively impacted by

supplanting older, less effective competing technologies


Defense R&D Initiative

Project Definition: Improve operational effectiveness of soldier

New technologies New products Services

CB Air Filtration Hybrid PPE Assist with DND workload

Detection/Nano-sensors

Respiratory systems Test and validation center

Engineered polymers


AirBoss-Defense

Recent Announcements

• US order for $15.2 million for CBRN gloves for 2010/2011

• US order for $7 million CBRN boots

• High degree of visibility for 2011 sales

• Orders already received for 70% of 2011 budget

21


President’s Requested Discretionary Program Budget Authority

0

200

400

600

800

1000

1200

1400

1600

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Stimulus

Non-DODDiscretion

DODSupplementals

DOD

22


23

AirBoss-Defense key success factors

CBRN Protection Technology

• US Military testing confirms that AirBoss-Defense products offer significantly superior performance

• Proprietary rubber compounds

Commitment to New Product Development – next generation products

• Injection moulded CBRN boot - cost reductions of between $6 and $8 per pair

• Escape Gas mask

• Joint advancement of “sensor” science with Canadian

government


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In addition to new products

• First Response

• Acquisitions in US Based Personal Protection Markets

• Geographical market expansion

AirBoss-Defense Growth Opportunities


US Market Personal Protection

The Personal Protection market (U.S.) should reach over $3.7B in 2010; war-time requirements have pushed spending in defensive measures to record highs (though down slightly from 2008)

$1,072

$281

$696$290

$666

$124

$570

Armor

Comm's

Display

Helmet

Other

Sensors

Weapons

* Note: AirBoss’s current products are included in the “other” category** Excludes IED detection/defeat (JIEDDO customer) Source: RSAdvisors Analysis

FY10 US Defense PersonalProtection MarketTotal = ˜$3.7 B** ($, M)

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Financial Data

YE Dec. 31 2009A 2010E¹ 2011E¹Revenue (mm) $210.0 $237.6 $252.3EBITDA (mm) $16.3 $27.2 $30.4EV/EBITDA 9.3x 6.8x 6.1xEPS f.d. $0.26 $0.55 $0.65P/E 20.8x 12.7x 10.8xCFPS $0.42 $0.79 $0.90P/CF 13.1 8.9x 7.8xNet debt (cash) $21.7 $13.0 -Book Value $2.94 $3.40 $3.98P/BV 2.4x 2.1x 1.8x

¹ Analyst Estimates


AirBoss Nine-Month Income Statement

Sept. 30

27

2010 2009

Sales $175,767 $152,192

EBITDA 19,731 10,859

EPS $0.40 $0.15

LTM EPS $0.51


Summary

• Industry leaders in both business segments

• Growth expectations in both segments (both top and bottom line)

• Strong financial position provides strategic acquisition flexibility

28


Summary

• Strong Working Capital 2.45:1

• Debt reduced by 2/3 over last 2 years

• Dividend increased from $0.05 per year to $0.12 per year

• 9 month EBITDA increase of 82%

29


Market Data

Close Price - As at January 7, 2011 $6.22

52 week High-low $7.44 - $4.85

Shares Outstanding (000s) 23,613

Free float % 76%

Avg. Volume (last 100 days) 41,811

TTM EBITDA (000s) $25,184

Net Debt (000s) $17,750

Market Cap (000s) $146,873

Enterprise Value (000s) $164,623

Valuation

Trailing LTM EV/EBITDA 6.6x

Trailing LTM P/E - Basic 12.2x30


31

Agenda

Introduction





32

Management

• Gren Schoch, Chairman of the BoardGren Schoch is a professional engineer and ran a successful engineering and geological services company, MPH Consulting, between 1976 and 1995. In 1982, he also founded and chaired Petromet Resources, a junior oil and gas exploration company that was sold to Talisman Energy for more than $900 million in 2001. Since 1989, Gren has been the Chairman and substantial shareholder of AirBoss.

• Robert Hagerman, President and Chief Executive OfficerRobert Hagerman obtained his CA designation in 1976 and was employed in the Montreal and later the London office of Price Waterhouse for 12 years in Audit, Insolvency, and Mergers and Acquisitions. Robert, one of the original founders and directors of AirBoss, was appointed CEO in 1992 and has been instrumental in growing the Company ever since.

• Stephen Richards, Vice President, Finance and CFOStephen Richards obtained his CA designation in 1988 and was employed with Ernst & Young over a seven year period involved in various Audit, Insolvency and Management Consulting assignments. His primary responsibilities in his career with various transportation and manufacturing companies included strategic planning, systems development and performance improvement. In his previous role Mr. Richards served as Vice President of Finance for Clarke Inc., a TSX-listed transportation company, and joined AirBoss in April, 2005.

• Robert Dodd, Executive Vice President Robert Dodd has held either Director or VP roles at 3 previous employers prior to joining AirBoss. At Trelleborg, he was on the Board of Directors of their North American company TSS US Inc. Robert has a proven change management track record and also has prior expertise in developing and executing business strategies for both international and domestic markets in an executive capacity. With his prior experience of developing acquisition targets in India and Brazil and his recent achievement of establishing a green field site in Shanghai, China, Robert brings a wealth of international and diverse experiences to his role within AirBoss.

• Earl Laurie, President, AirBoss-Defense DivisionEarl Laurie has run the sales, marketing and contract administration of the defense products business of Acton–International Inc. since inception. With the purchase of Acton-International by AirBoss in 1999 and the reorganization into AirBoss Engineered Products (“AEP”) in 2005 Mr. Laurie is now responsible for the operations of AirBoss-Defense, the defense products division of AEP and has been instrumental in its growth.

THANK YOU

AirBoss of America Corp. Infrastructure +Defense+ Heavy-Duty Conveyor Belts + Technology Based Solutions Defense and Industry. AirBoss of America Corp.

Documents

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rubberbased products

custom rubber mixers

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personnel introduction