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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
2009AnnualGeneralMeeting
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
Our Objectives for 2009
1. Strengthen financial performance2. Complete airline acquisition3. Increase dividend payout
4. Improve share valuation
3
Our Results
• All key financial metrics improved
• Conversion
• Slow manufacturing segment recovery
• Recession resistant business model
4
Steady financial growth
Revenue
5
34%growth to $211 Million
200
150
100
50
(C$
mil
lio
n)
250
20092005
EBITDA
6
57%growth to $32 Million
25
20
15
10
5
(C$
mil
lio
n)
30
20092005
Net Earnings
7
307%growth to $13 Million
12
9
6
3
(C$
mil
lio
n)
15
20092005
Our Results
•$59 million purchase price
•Effectively doubled aviation segment
•Immediately accretive
8
Calm Air Acquisition
Our Results
• Dividend increased to $1.56
• 6th consecutive year of growth
• Completed conversion without dividend cut
9
Increase dividend payout
Distributable Cash
10
67%growth to $25 Million
20
15
10
5
(C$
mil
lio
n)
25
20092005
Distributable Cash Per Basic Share
11
10%growth to $2.81
2.0
1.5
1.0
.5
2.5
2008 2009
3.0
Dividend Payout
12
3%growth to $1.56 per share
2.0
1.5
1.0
0.5
0.0
20092005
Our Results
• EIF up 44% • Extreme market
volatility• 3 financings
completed
13
Fair market valuation
Total Return for 2009
14
-20%
0%
20%
40%
60%
80%
Exchange Income Corp.
S&P/TSX Composite Index
January 09 December 09
66%
Exchange Income Corporation
ReasonsforSuccess
Reasons
1. Disciplined2. Diversified3. Focused4. Loyal
16
Our core principles
Disciplined Acquisitions
20092004 2006 2007 20082005
Diversified
18
- 3 airlines- Serving remote communities
- Uniquely competitive
- 3 steel companies- 1 water pressure company
- Serving multiple industries
Building momentum
1. Exceptionally strong
2. Despite impacts:• Seasonal factors• Economic
conditions
19
Q1 Results
Revenue
20
43%growth to $53.3 Million
40
30
20
10
(C$
mil
lio
n)
50
Q1 2010Q1 2009
60
EBITDA
21
70%growth to $7 Million
6
4
2
(C$
mil
lio
n)
Q1 2010Q1 2009
8
Net Earnings
22
71%growth to $2.4 Million
2.0
1.5
1.0
(C$
mil
lio
n)
Q1 2010Q1 2009
2.5
0.5
Earnings per Share (fully diluted)
23
$0.20Decrease by $0.04
0.20
0.15
0.10
(C$
)
Q1 2010Q1 2009
0.25
0.05
Strengthened balance sheet
24
$100Macquisition
Total Debt to Equity Ratio Capacity for
0.62
Prepared to be disciplined
Exchange Income Corporation
Looking ahead
2010 & Beyond
1. Add 3rd leg2. Continued steady growth3. Manufacturing segment recovery4. Dividend increase
Exchange Income Corporation
Questions?
Contact information
www.exchangeincomecorp.com1067 Sherwin Road Winnipeg, MB R3H 0T8 204 982 [email protected]
