Notes from the 4th qtr update

1. ALL EMPLOYEE
MEETING
November 10, 2022

2. 2
New GSD’rs
Erlanger
Chris Moses, Project Manager of NPD
7/18/2022
Edward Frey, Assembler 8/15/2022
Mike Canares, Sales Executive, Regional
9/12/2022
Richard Rohling, Assembler 9/26/2022
Joe Toney, Maintenance 10/24/2022
Richwood
Preston Roberts, Machine Shop Operator 7/11/2022
Jeffrey Rodriguez, Machine Shop Operator 7/18/2022
Grand Saline
Deidra Becerra, Shipping Clerk hire date TBT

3. 3
Service Awards
Brittany Holland - Richwood – 1 year
Willis Wilson – Richwood – 1 year
Matt Fuller - Richwood – 1 year
Paul Brown – Richwood – 1 year
Mark Gould – Richwood – 1 year
Christan Yepko – Richwood – 1 year
Megan Broering- Erlanger – 1 year
Frank Castator – Richwood – 3 years
Paul Laudermilk III – Erlanger – 3 years
Kristy Turner – Erlanger – 3 years
Matt Rommel – Erlanger – 3 years
June Hurley – Erlanger – 3 years
Year Amount
1 $75
3 $150
5 $200
10 $250
15 $350
20 $500
25 $750
30 $1000
35 $1250
40 $1500

4. 4
Service Awards
JT Jones– Erlanger – 5 years
Paul Laudermilk Jr – Erlanger – 5 years
Lupe Vazquez – Erlanger – 5 years
Brandon Clinebell – Erlanger – 5 years
Jo Da Rosa – Erlanger – 5 years
Teresa Beckwith – Erlanger – 10 years
Brittney Peluso – Erlanger – 10 years
Greg Kaufman – Erlanger – 10 years

5. 5
Promotions
Karina Velazquez – Operations Supervisor, Logistics
Danyelle McClure – Inventory Control Supervisor
“Downtown” Danny Brown – Shipping Team Lead
Tassere Sawadogo – Shipping Lead
Luis Rivera – Receiving Team Lead
Jennifer Petras – Assembly Lead Hand
Emilie Tucker – HR Generalist
Tony White – EVP Sales and Marketing
Mike Tomlson – Director of Sales, US Heavy Duty
Danny Fitzhugh – Regional Sales Manager - East

6. 6
Retirements
Bruce Willoughby - Richwood
Jim Calico – Sales
John Czarnecki - Sales

7. 7
Business Update

8. 8
2022 Revenue Projection vs Historical

9. 9
2022 Profit Projection vs Historical

10. 10
Revenue Contribution from NPD

11. 11
2023 Areas of Focus
1. Stabilize Worldwide
2. Improve efficiency of operation in Worldwide
3. Manage inventory – no big spikes/no outages
4. Accelerate supply chain diversification strategy – multi-geographic
5. Successful production pilot of Powersports
6. Keep pace on achieving VPP
7. Host multiple customer visits at Worldwide
8. Strengthen our core values
9. Improve the effectiveness of our TSR teams

12. 12
Q3 – Q4 Items of Interest
 Canada:
- Converted the warehouse to LED lighting
- Set another record revenue month in October
- Brian L is a grandfather – Flora Jean Badeau – 7/26
 Grand Saline:
- Brenda Scott returns to work
 Erlanger:
- RMA’s dropped from a high in May of 25 to a low of 4 in October
- OTD has climbed from 83% to 95%
- “The Move” is all consuming

13. 13
Q3 – Q4 Items of Interest
 Richwood:
- Most accurate inventory since acquisition
- Scrap as a % of production continues to drop
 Consumer/Industrial:
- Vendor of the Year - Automotive Category by Hardlines
Distribution Alliance (HDA)
- Record revenue year and will pass $10m for the first time
ever

14. 14
Ancra Core Values

15. 15
Be positive and GSD!
Respect everyone
Embrace challenges
Welcome change
Speak and act with integrity

16. GOES “WORLDWIDE”

17. 17

18. 18
Schedule of Activities
• Move begins – 10/31
• Receiving begins in Hebron – 10/31
• Logistics office and alternative lobby opened – 11/7
• Shipping begins in Hebron – 11/14
• Erlanger offices close - 12/9
• Erlanger operations move completed – 12/16
• Erlanger decommisioning completed – 12/30
• Main office completed - 1/6
• Move into main office – 1/9
• Employee Open House – 2/4

19. 19
Decommissioning Circleport
• Breakdown cubicles and remove all furniture
• Remove mezzanine
• Remove modular offices
• Remove warehouse racking –TBD
• Remove guardrails
• Remove all items from parking lot
• Remove all graphics
• Remove logistics office
• Remove exterior signage

20. 20
Special Thanks
Danyelle McClure
Joe Toney
Branden Clinebell
Jessica Schultz
Don Records
Bambi Norrick
Luis Rivera
Matthew Southerland
Andy Barrett
Danny Brown
Eric Harwood
Aaron Brown
Tas Swandago
Kristy Turner
Weedie Osborne
Paul Loudermilk
Sean Smith
Mark Westrich

21. 21
Proposed Floor Plan
Voluntary Protection
Program
VPP

22. 22
VPP Status
• Attended VPP conference in May, 2022
• Leadership visit to mentor site L’Oreal in May, 2022
• VPP Audit of Erlanger in June, 2022
• VPP commitment letter signed
• VPP banner signed and posted
• Incident Rates summary for combined business for eligibility completed
Next steps:
• Communication and Engagement Plan to be completed in near future
• Written draft application to corporate EHS for review
• On schedule for VPP certification in 2025

23. 23
Safety Year in Review
• Active safety team established for Richwood and Erlanger
• QR codes created & posted for Safety Concern Reporting; increased reporting
overall
• Hi-vis requirement in Logistics areas
• Audit team conducting monthly audits at both sites
• Increased machine guarding at both sites with additional measures planned for
Hebron
• Electronics recycling program implemented
• Kiosks planned for Hebron to include electronic safety data sheets & employee
links
• Recycling planned for Hebron to include cardboard, wood, commingled, all paper;
waste management log created and tracking waste volumes and earnings/costs
• Adopt-A-Highway commitment for Graves Road starting in 2023 & Household
Hazardous Waste event sponsor in 2022
• New employee onboarding enhancements planned including mentor program,
also in Spanish

24. 24

25. 25