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FTG CORPORATION FTG: TSX February 2026 Aerospace & Defence Electronic Products & Subsystems
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2 Disclaimer This presentation contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG’s operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as “anticipate”, “believe”, “expect”, “plan” or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Company and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Company’s industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Company. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Company and not place undue reliance on forward-looking statements. Other than as may be required by law, FTG disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise. TSX: FTG
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4 Markets Products FTG Today: Pioneering Aerospace & Defence Solutions Aerospace & Defence FTG Aerospace FTG Circuits Cockpit and Avionics Products Printed Circuit Boards TSX: FTG A Global Force, Crafting Cutting-Edge Electronic Products and Subsystems that Propel the Industry Forward
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5 ✓ TSX: FTG ✓ 30% 3-year CAGR Driven by Acquisitions & Organic Growth: ✓ $191M Sales in 2025 ✓ $162M Sales in 2024 ✓ $135M Sales in 2023 ✓ $90M Sales in 2022 ✓ 10 Sites Globally: ✓ 5 in USA ✓ 3 in Canada ✓ 2 in China ✓ Plus 1 site under construction in India ✓ 25.2M Common Shares, approximately: ✓ 4.8M owned by Oakwest Ltd ✓ 2.7M owned by Brad Bourne – CEO ✓ 0.5M owned by other Mgmt/Directors ✓ 750 Employees Globally FTG at a Glance North America Asia TSX: FTG Financial And Operational Snapshot
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6 FTG Strategic Initiatives 6 Increase Operating Leverage Expand Technology, Geography, Capacity Pursue High Margin Business Growth Market Positioning Advanced TechnologyAcquisitions TSX: FTG Reduce Costs, improve Efficiencies Operating Performance Deliver Value to Customers
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7 ▪ Build/Strengthen the team ▪ Standardize FTG operating system across the company: ▪ Leverage best practices from inside and outside FTG ▪ Ensure consistent performance across all sites ▪ Ensure standard reporting across the company ▪ Drive Efficiencies ▪ Understand key metrics ▪ Streamline processes ▪ Automate TSX: FTG FTG Operating System Solidifying Leadership Team – Laying The Groundwork To Scale Efficiently, Without Compromising Performance Brad Bourne CEO Drew Knight CFO Peter Dimopoulos VP Sales Bill Sezate EVP Circuits Marko Viinikka EVP Aerospace SALES (15 STAFF) CIRCUITS (455 STAFF) 6 Sites AEROSPACE (270 STAFF) 4 Sites 1 site under construction CORPORATE LEADERS OPERATIONS LEADERS CORPORATE (10 STAFF)
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Increase Operating Leverage 8 GrowthOperating Performance Deliver Value to Customers TSX: FTG FTG Strategic Initiatives Reduce Costs, Improve Efficiencies Expand Technology, Geography, Capacity Pursue High Margin Business Market Positioning Advanced TechnologyAcquisitions
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9 0 10 20 30 40 50 60 70 80 90 100 Infrastructure Indirect Labour Material Direct Labour Variable Cost ~70% Fixed Cost ~30% Contribution Margin of ~30% on incremental revenue Percent CAD/USD Exchange Rate FTG Scalable Economics Over 90% of FTG’s revenue denominated in USD TSX: FTG Top Line Drives Bottom Line $0.90 $1.00 $1.10 $1.20 $1.30 $1.40 $1.50 $1.60 $1.70
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10 Commercial Aircraft Deliveries TSX: FTG 0 200 400 600 800 1000 1200 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Airbus Boeing AIRCRAFT DELIVERIES Projected AIRCRAFT 8,754 Airbus total backlog AIRCRAFT 5,994 Boeing total backlog Airbus ▪ Airbus shipped 33% more than Boeing in 2025 ▪ Airbus expected to exceed 2019 shipments levels in 2026 Boeing ▪ Boeing impacted by Alaska Air incident in 2024, and a strike ▪ New CEO at Boeing refocusing the company on its core business ▪ Shipments were up 70% in 2025 # Aircraft Airbus is outperforming Boeing in the next few years
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Defence spending is increasing as geopolitical tensions increase around the globe NATO defence spending increased from 37% to 66% of the US spending 11TSX: FTG Defence Spending $B US & NATO DEFENCE SPENDING
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12 FTG’s Multiple Levers For Continued Growth TSX: FTG 12 Market/ Industry Growth Growth in the industry 1. Operational Excellence Quality, delivery, customer service 3. Globalization Offer Canada, USA and China solutions 5. New Programs Win content on new programs in development 2. New Technology Increase product offerings to grow content per aircraft 4. Acquisitions In support of increased capacity, add technology, add geographic region 6.
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Pursue High Margin Business 13 Market Positioning Advanced Technology TSX: FTG FTG Strategic Initiatives Reduce Costs, Improve Efficiencies Increase Operating Leverage Expand Technology, Geography, Capacity Growth Acquisitions Operating Performance Deliver Value to Customers
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14 Barriers to Entry Technology/Capabilities Government certifications Customer certifications and approvals Customer Relationships Operational Performance Financial Strength Global Footprint 14TSX: FTG
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Benchmarking Process Used To Assess Financial Attractiveness Of Various Market Segments TSX: FTG 15 Market Positioning Future investment decisions will drive FTG towards higher margin business Margins Cash Cycle Defence After market Aerospace Simulators
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16 Aerospace Technology Growth TSX: FTG Electronic Assembly 16 Power Supply Switch Panel Panel Keyboard Electro-mech Assembly Technology Growth Drives Higher Content Per Aircraft And Accelerates Revenue Growth of 2025 sales are assemblies 46%
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17TSX: FTG Circuits – Technology Growth Over 50% of sales are high technology or specialty products HDI Micro Vias Sequential Lamination Filled Vias Rigid Flex Assembly High Frequency RF Circuitry Hybrid Materials RF Circuitry Digital Circuitry Thermal Management Semi / Fully Additive Process UHDI
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Expand Technology, Geography, Capacity Increase Operating Leverage Pursue High Margin Business 18 Acquisitions TSX: FTG FTG Strategic Initiatives Growth Market Positioning Advanced Technology Reduce Costs, Improve Efficiencies Operating Performance Deliver Value to Customers
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19 Corporate Development Milestones TSX: FTG Company Founded Helix Circuits FTG completes reverse takeover Acquires Young Electronics Company renamed Circuit World Acquires Filtran Micro Circuits Incorporates FTG Aerospace Tianjin FTG Aerospace Chatsworth Grand Opening FTG Printronics Circuit formed Commercial PCB Manufacturer Market focus changed to Aerospace and Defence Two business units formed - FTG Circuits FTG Aerospace US footprint established for Circuits business New customers & technology added New technology added to Circuits business US footprint established for Aerospace business China footprint established for Circuits business Acquires Photo Etch Increased utilization in USA and other operations Acquires Teledyne PCT Acquires Colonial Circuits Add capacity for Standard Military Circuits 1983 1995 2003 2004 2008 2010 2012 2014 2015 20162013 2019 2023 Acquires IMI Acquires Holaday Adds RF technology Adds HDI technology in the USA China footprint established for Aerospace business 2024 Acquires Flyht Accelerates penetration of the aftermarket, and increases content on Airbus
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20 Products Satcom communications via Iridium Satellite system (AFIRS 228) Backup aircraft safety communications system Aircraft data transmission system for enhanced operations management In service for many years, with design update just completed Factory option for all Airbus aircraft – via licencing arrangement – 200-300 installed annually Licencing revenue to resume in 2026 Hardware sales and satellite data service sales Wireless Quick Access Recorder (WQAR) (Edge and Edge +) 5G wireless connection from aircraft to airline flight operations Collect data in flight and transmit aircraft data while at an airport Development complete – for two versions Hardware sales and wireless service sales Weather - Water Vapour Sensing System (WVSS II) Systems installed on aircraft to collect high altitude weather and water vapour data System update complete Data sold to National weather agencies such as NOAA and UK Met Hardware and weather data sales FLYHT Acquisition TSX: FTG
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21 Path Forward Manage operating costs Reduced internal costs - FLYHT restructured in September 2024 significantly reducing labour costs Product development efforts winding down Eliminated public company costs Total savings estimated at ~$4M annually Aggressively sell all products against existing Supplemental Type Certificates (STCs) STCs are required government approvals (Transport Canada, FAA, EASA, CAAC) to install equipment on specific aircraft types in their jurisdiction Satcom product has wide range of STCs EDGE+ product has a solid base of STCs Expand STCs for additional aircraft types and countries – for EDGE+ and WVSS II product Add STCs for aircraft beyond the B737 and A320 aircraft for EDGE+ Also pursue STCs for the WVSS-II product in conjunction with implementation programs with NOAA and UK Met In-source product manufacturing to FTG site(s) In-sourcing activity underway to manufacture products in our existing FTG facilities Shield future profits with existing tax losses at FLYHT FLYHT Acquisition TSX: FTG
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22 Future M&A Considerations TSX: FTG Key criteria for future acquisitions include: ▪ Aligned with FTG market and product focus ▪ Expand technology offering ▪ Expand geographic coverage ▪ Europe for commercial aerospace ▪ Europe, India, other top ten countries outside of US for defence ▪ Accelerate FTG’s penetration of the aftermarket segment ▪ Drive up plant utilization ▪ Attractive price, attractive multiple ▪ Accretive to earnings Future Acquisitions
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23TSX: FTG Capital Allocation 1. Invest organically to ramp throughput and drive technology 2. Pursue corporate development opportunities 3. We have an NCIB to buy back up to 5% of outstanding shareholder stock ▪ 616,400 shares repurchased since 2022 Capital allocation plans include: Deploy cash available to improve profitability and shareholder returns
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24 The new US Administration is implementing tariffs on imports into the US FTG sales include approximately $58M in sales to the US from Canada or China Mitigation plans include: It will take time for the Aerospace and Defence supply chain to move sources of supply so any negative impact to FTG would be felt over time The US-based acquisitions by FTG in 2019 and 2023 have expanded our US manufacturing capacity The acquisition of FLYHT in December 2024 reduces our exposure to tariffs as their largest customer is in Canada and they sell globally We are moving to be more locally focused with US sites selling into US customers and non- US sites selling to non-US customers FTG’s non-US sites will target increased market share from Airbus FTG is developing plans to add sales resources in Canada, Europe and Asia The recent win of cockpit assemblies on the DeHavilland Canadair 515 water bomber will be Canadian revenue generated in our Canadian aerospace site The ramp up of the C919 aircraft production in China will create a revenue stream not impacted by US tariffs FTG’s plans to open a facility in Hyderabad India will help open a new non-US market Input costs are now being impacted by tariffs as much material comes from Asia and ships to or via the USA We are working to pass these tariff costs on to customers US Tariffs TSX: FTG
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Financial Highlights – Revenue and Earnings TSX: FTG ADJ EBITDA $M $M Revenue Revenue has more than doubled since pandemic lows EBITDA has more than tripled 25 $0 $5 $10 $15 $20 $25 $30 $35 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2021 2022 2023 2024 2025 Revenue Adj EBITDA
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26 $M Balance Sheet Highlights TSX: FTG Working Capital Working Capital | Working capital remains strong after the acquisitions Net Cash | FTG has minimal debt after completing two acquisitions in 2023 and one in 2025 (valued at over $50M) -$10 -$5 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $55 Net Cash/Debt
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27 Cash Flow Highlights TSX: FTG FTG is consistently cashflow positive 2023/24 cash conversion impacted by large ramp in production (1) Cashflow excludes acquisition costs and building purchase/sale. $K $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 2021 2022 2023 2024 2025 Cash Conversion (1) Net Income Cash Flow
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28 FTG’s Stock Performance Stock is up ~750% in the last decade FTG TTM EV/EBITDA is ~14X FTG now trades on the OTCQX market in the US – ticker FTGFF Investor Research Reports: TSX: FTG Company Raymond James Acumen Beacon Rating Outperform 2 Buy Buy Target Price $20.00 $22.00 $23.00
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ESG at FTG Focus On Environmental, Social & Governance Factors Across All Operations TSX: FTG Environment: Reduction of impact on the environment in areas such as water recycling, higher efficiency equipment, and committed further investments, with the support of the Canadian and Ontario Governments. Social: FTG is committed to having a safe, secure and diverse workforce. We proactively review and improve all aspects of safety at our sites. Governance: Increased board diversity, robust business ethics policies, strong risk management practices. 29
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FTG CORPORATION www.ftgcorp.com | FTG: TSX FTG: TSX