(NYSE American: ACU)
Investor PresentationSeptember 2020
Forward-looking statements in this presentation, including without limitation, statements related tothe Company’s plans, strategies, objectives, expectations, intentions and adequacy of resources, aremade pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.Investors are cautioned that such forward-looking statements involve risks and uncertaintiesincluding the impact that the global COVID-19 pandemic has had and will continue to have on theCompany’s business, operations and financial results. These risks and uncertainties further include,without limitation, 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 the Company; (ii)the impact of uncertainties in global economic conditions, including the impact on the Company’ssuppliers and customers; (iii) changes in client needs and consumer spending habits; (iv) the impactof competition, (v) the impact of technological changes including specifically the growth of onlinemarketing and sales activity; (vi) the Company’s ability to manage its growth effectively, including itsability to successfully integrate any business it might acquire; (vii) the Company’s ability to effectivelymanage its inventory in a rapidly changing business environment; (viii) currency fluctuations; (ix)international trade policies and their impact on demand for our products and our competitiveposition, including the imposition of new tariffs or changes in existing tariff rates; and (x) other risksand uncertainties indicated from time to time in the Company’s filings with the Securities andExchange Commission.
Safe Harbor Statement
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NYSE American: ACU
Leader in innovative safety solutions and cutting technology
On track for 10th consecutive year of record sales
Driving growth through innovation
Premier and diversified customer base
Successful history of acquisitions
Strong balance sheet enhances ability to take advantage of 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
▪ Leverage growth through shared technologies, cross-brand collaboration and cross-selling that drive value across ACU’s platform
20111995 2000
First Aid Kits
Industrial First Aid
Firs
t Aid
& S
afe
ty
AcmeMedical
Instruments & Packs
Founded 1867
2014
Industrial First Aid
2017
Industrial Safety
1995
Scissors &
Rulers
Industrial Shears
Knives
Cuttin
g S
olu
tions
Titanium coating begins
2002 2004 2007 2012 2015
Rulers
2016
Fishing Tools
Sharpeners
2020
Personal & Industrial First Aid
Cohesive Shared Customer Base
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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
▪ Expanded ACU’s distribution capabilities, product offerings and online presence
▪ 2019 revenues of C$4.3 million
▪ Acquisition accretive to date in 2020
Impact of COVID-19▪ Shipping record levels of a wide array of products
▪ Fishing tools, hunting knives, craft scissors, sharpening tools, first aid & safety products
▪ Operating safely throughout the pandemic
▪ Managing challenges of worldwide supply chain
▪ Operating domestic and international production and distribution centers
▪ Sales and office associates successfully working remotely
▪ Developing new products to meet customers’ new needs
▪ Improving content online and enhancing online search and contact capabilities
▪ Expanding workforce to meet demand
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Acme United International Footprint
China:• Guangzhou: Engineering,
quality control, logistics• Yang Jiang: Production • Ningbo: Quality control,
logistics
Hong Kong• HQ of Acme United (Asia
Pacific)
Canada• Toronto, ON: HQ• Mt. Forest, ON:
Distribution center• Laval, QC: First Aid
Central production
Europe• Solingen, GY: HQ and distribution
United States
• Vancouver, WA: First Aid production
• Santa Ana, CA: Spill Magic production
• Rocky Mount, NC: Distribution center
• Smyrna, TN: Spill Magic production
• Fairfield, CT: Corporate HQ
• Marlboro, MA: DMT production
Expanding Distribution
Diversified distribution network;strong growth in e-commerce channel
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Hardware, Industrial
6%
Office59%
Sporting Goods
1%
Mass Market33%
E-Commerce1%
2010
Hardware, Industrial
32%
Office16%Sporting
Goods3%
Mass Market33%
E-Commerce16%
1H 2020
Financial Results
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Net Sales
$ Millions
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On track for tenth consecutive year of record sales in 2020, driven by new products and market share gains
73.384.4
89.6
107.2 109.8
124.6130.6
137.3 142.5
79.8
$0
$18
$36
$54
$72
$90
$108
$126
$144
2011 2012 2013 2014 2015 2016 2017 2018 2019 1H20
+11%
EBITDA
$5.3
$6.4$7.05
$9.0$9.2
$10.8 $10.7 $10.6
$11.8
$8.1
$0
$2
$4
$6
$8
$10
$12
$14
2011 2012 2013 2014 2015 2016 2017 2018 2019 1H20
$ Millions
Strong and growing EBITDA
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+16%
Net Income
$2.8$3.5
$4.0
$4.8 $4.8
$5.9$5.3
$4.6
$5.5
$4.5
$0
$1
$2
$3
$4
$5
$6
$7
2011 2012 2013 2014 2015 2016 2017 2018 2019 1H20
+29%
$ Millions
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Earnings Per Share
0.911.13
1.221.36 1.3
1.64
1.421.3
1.6
1.28
$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 1H20
+27%
EPS on record-setting pace in 1H 2020
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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
Strong and consistent dividend growth
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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
▪ Gaining placement at major industrial sites
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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 Expansion▪ Cascade technology down to
mid-tier scissors
▪ Westcott tradition of first-to-market innovations
▪ Glide first mechanical technology in 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
Specialized Ceramic Cutters
▪ Continue penetration into industrial cutting
▪ Multi-depth settings
▪ Premium features and retail price points
▪ Sliding handle, utility patent pending
▪ Rear depth dial, utility patent pending
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Guide cuts tops off boxes
Sliding handle
General purpose cutter
Dial-in depth setting
Multi position depth
Craft Market Expansion
Trade up the customer with unique technologies
Improve profitability with uniqueness and innovation
Improve customer loyalty
Build-the-basket with coordinated colors and patterns
Expand into adjacent product categories
▪ Continue the strong growth in Sewing and Paper Crafting categories
▪ Leverage retail partnerships for growth in office and BTS
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DMT Sharpeners
Highest concentration of diamonds
Most consistent diamond dispersion
Flattest sharpening surface
World’s finest sharpeners
▪ Best hand tools for sharpening in the industry
▪ Expanding in the home and culinary markets
▪ Strong performance in 1H 2020
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Oversize Bow
▪ Black titanium blades
▪ Serrated carbide edge for superior edge retention
▪ Oversized bows for leverage and comfort
▪ Knife edges for precision cutting
▪ Available in 8”, 9”, and 10”
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
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Financial Goals▪ Generate solid revenue growth
▪ Drive e-commerce
▪ Continue developing and introducing new products
▪ Increasing inventory to reduce supply chain risk and take advantage of opportunities
▪ 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 is well positioned to deliver strong financial results and long-term growth
Company ContactWalter Johnsen, Chairman & [email protected]
Investor RelationsHarriet Fried, [email protected]