Exchange Income Corporation AGM presentation

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Exchange Income Corporation (TSX: EIF) is a diversified acquisition-oriented company, focused on opportunities in the industrial products and transportation sectors. The Company recently held its annual and special meeting for the fiscal year ended 2009.

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Exchange Income Corporation AGM presentation

  1. 1. Exchange Income Corporation 2009 Annual General Meeting
  2. 2. Forward Looking Statements The statements contained in today’s presentation that are forward-looking are based on current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. These uncertainties and risks include, but are not limited to, the dependence of the Corporation on the operations and assets currently owned by it, the degree to which its subsidiaries are leveraged, the fact that cash distributions are not guaranteed and will fluctuate with the Corporation’s financial performance, dilution, restrictions on potential future growth, competitive pressures (including price competition), changes in market activity, the cyclicality of the industries, seasonality of the businesses, poor weather conditions, and foreign currency fluctuations, legal proceedings, commodity prices and raw material exposure, dependence on key personnel, and environmental, health and safety and other regulatory requirements. Further information about these and other risks and uncertainties can be found in the disclosure documents filed by the Corporation with the securities regulatory authorities, available at www.sedar.com. 2
  3. 3. Our Objectives for 2009 1. Strengthen financial performance 2. Complete airline acquisition 3. Increase dividend payout 4. Improve share valuation 3
  4. 4. Our Results • All key financial metrics improved • Conversion Steady financial • Slow manufacturing segment recovery growth • Recession resistant business model 4
  5. 5. Revenue 250 200 34% (C$ million) 150 growth to $211 Million 100 50 2005 2009 5
  6. 6. EBITDA 30 25 57% (C$ million) 20 growth to $32 Million 15 10 5 2005 2009 6
  7. 7. Net Earnings 15 12 307% (C$ million) 9 growth to $13 Million 6 3 2005 2009 7
  8. 8. Our Results •$59 million purchase price •Effectively doubled Calm Air aviation segment Acquisition •Immediately accretive 8
  9. 9. Our Results • Dividend increased to $1.56 • 6th consecutive year Increase dividend of growth payout • Completed conversion without dividend cut 9
  10. 10. Distributable Cash 25 20 67% (C$ million) 15 growth to $25 Million 10 5 2005 2009 10
  11. 11. Distributable Cash Per Basic Share 3.0 2.5 2.0 1.5 1.0 10% growth to $2.81 .5 2008 2009 11
  12. 12. Dividend Payout 2.0 1.5 1.0 3% growth to $1.56 per share 0.5 0.0 2005 2009 12
  13. 13. Our Results • EIF up 44% • Extreme market volatility Fair market • 3 financings valuation completed 13
  14. 14. Total Return for 2009 80% Exchange Income Corp. 60% 40% 66% 20% S&P/TSX Composite Index 0% -20% January 09 December 09 14
  15. 15. Exchange Income Corporation Reasons for Success
  16. 16. Reasons 1. Disciplined Our core 2. Diversified principles 3. Focused 4. Loyal 16
  17. 17. Disciplined Acquisitions 2004 2005 2006 2007 2008 2009
  18. 18. Diversified - 3 airlines - 3 steel companies - Serving remote - 1 water pressure communities company - Uniquely competitive - Serving multiple industries 18
  19. 19. Building momentum 1. Exceptionally strong Q1 Results 2. Despite impacts: • Seasonal factors • Economic conditions 19
  20. 20. Revenue 60 50 40 43% (C$ million) 30 growth to $53.3 Million 20 10 Q1 2009 Q1 2010 20
  21. 21. EBITDA 8 6 70% (C$ million) 4 growth to $7 Million 2 Q1 2009 Q1 2010 21
  22. 22. Net Earnings 2.5 2.0 71% (C$ million) 1.5 growth to $2.4 Million 1.0 0.5 Q1 2009 Q1 2010 22
  23. 23. Earnings per Share (fully diluted) 0.25 0.20 0.15 $0.20 (C$) Decrease by $0.04 0.10 0.05 Q1 2009 Q1 2010 23
  24. 24. Strengthened balance sheet Total Debt to Equity Ratio Capacity for 0.62 $100M acquisition Prepared to be disciplined 24
  25. 25. Exchange Income Corporation Looking ahead
  26. 26. 2010 & Beyond 1. Add 3rd leg 2. Continued steady growth 3. Manufacturing segment recovery 4. Dividend increase
  27. 27. Exchange Income Corporation Questions?
  28. 28. Contact information www.exchangeincomecorp.com 1067 Sherwin Road Winnipeg, MB R3H 0T8 204 982 1857 mpyle@eig.ca

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