C E T X
InvestorPresentation
Maximizing Industrial and Manufacturing
Output…..Responsibly.Maximizing Industries’ Potential
2017M A R C H
C E T X 2
Safe Harbor StatementThis presentation may contain forward looking statements that involve numerous risks and uncertainties. Actualresults could differ materially from those projected in the forward-looking statements as a result of a number of risksand uncertainties. These forward looking statements are not a guarantee of future performance. This release maycontain Non-GAAP financial information and are not calculated or presented in accordance with US GAAP. TheCompany believes that the presentation of non-GAAP financial measures provides useful information to managementand investors regarding underlying trends in its consolidated financial condition and results of operations. TheCompany's management regularly uses these supplemental non-GAAP financial measures internally to understand,manage and evaluate the Company's business and make operating decisions. These risks and uncertainties arediscussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K,quarterly reports on Form 10-Q and current reports on Form 8-K.Statements made herein are as of the date of thispresentation and should not be relied upon as of any subsequent date. Except as may be required by applicablesecurities laws, we do not undertake any obligation to revise or update any forward-looking statements contained inthis presentation.
C E T X 3
IPS Markets: Power Oil & Gas Construction Chemicals Cement Steel Packaging Food & Ag
IPS Products: Industrial Air
Filtration
Environmental Control
Systems
Environmental & Process
Monitoring
Broad Industrial
Services
EMS Markets: Automotive Telecom Wearables Industrial Medical Security
EMS Services: Engineering &
Design
Prototyping &
Testing
Electronic
Manufacturing
Complete Product
Assembly
We are 500+ employees worldwide maintaining a brand-leading, multinational customer base for two high-growth B2B operations:
Locations: USA, India, Hong Kong
1. Industrial Products & Services "IPS"
About Us
Locations: Germany, Romania
2. Electronic Manufacturing Services "EMS"
C E T X
Customers:
Customers:
C E T X 4
Profitable for 24 Straight Quarters
Financial Performance2012 – 2016 Actuals
▪ One Industry focus, cyclical▪ Poor forecasting ability▪ Regulatory dependency
$~90MRevenues$8M
Revenues
▪ Multiple industry focus▪ Improved gross margins▪ Exposure to high growth markets
▪ Diversified, recession proof▪ Long term view and growth markets▪ Continued Gross margin expansion
2016 Beyond
$300MRevenues
2012
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
0.00
0.10
0.20
0.30
0.40
0.50
0.60
2012 2013 2014 2015 2016F
Revenues EPS
▲6
5%
$56.0 M
~$93.7 M
2016
C E T X 5
50.0%50.0%
Asia,
14.0%
EUROPE
57.0%
USA
29.0%
2016 Fiscal Year Financial Results
For the FY 3-month period ended December 31, 2016
1Q 2017 % 1Q 2016
Revenues $29,397,257 ▲ 121% $13,314,693
EBITDA $2,646,181 ▲ 138% $1,112,527
Net Income $1,405,693 ▲ 101% $692,395
EPS $0.14 ▲ 59% $0.09
Revenue Mix by Segments and
Geography
2016A2016A
For the fiscal year ended September 30, 2016 FY 2016 % FY 2015
Revenues $93.7 M ▲ 65% $56.0 M
EBITDA $9.1 M ▲ 120% $3.6 M
Net Income $5.0 M ▲ 76 % $2.8 M
EPS $0.59 ▲ 43 % $0.41 M
1Q 2017 Fiscal Year Financial Results
C E T X 6
C E T X
The 6 Key Growth Drivers for CETX
Emerging Markets will continue to experience industrial
growth for decades
Renewed in-shoring of manufacturing
back to US
Global commitment to addressing climate change
creates new multibillion dollar markets
Strong upside from automotive market and to triple in
size by 2019
New global wearable technology market is expected to
double to US$12.0 billion by 2018
Automation & Robotics is transforming industrial and
medical technology, representing almost 50% of CETX’s
EMS customers
1
2
3
4
5
6
IPS DIVISION'S MARKET TRENDS AND GOALSAir Filtration, Environmental Monitors, Industrial Contracting, Analyzers, Instrumentation
C E T X
C E T X 8
Air Filtration Demand in Growing Emerging Markets
▪ Emerging markets industrial growth is forecasted for decades
▪ India set to build 1,000 GW of power gen capacity over next 3 decades, equal to the size of the US grid, will open up new possibilities including instrumentation.
▪ Gas demand and pipelines skyrocketing and liquefied natural gas (LNG) facilities rush to catch up
0
100
200
300
1990 2025 2050
Manufacturing Energy
Ind
ex
of
Act
ivit
y
Global Industrial Growth1
+33%
+47%
NAFTA, 10
East Asia, 22West Asia, 3
Eastern
Europe, 1
Middle
East, 1
Africa, 1
South
America, 2
CIS, 2Western
Europe, 5
$47 B Air Pollution
Control Market
+125%
+90%
1: McIlvane & Co
▪ Established presence with marquee customers
▪ Over 15,000 installations since 1965
▪ Advanced dust collection systems and turnkey solutions
▪ Revenues ▲30% in Asian markets in 2016
▪ Competitive advantages for lowest TCO and product performance
Our Demonstrated Performance
Market Drivers
1
C E T X 9
'In-Shoring' Labor Trends and Industrial Renaissance Hits US
▪ The global packaging is estimated at $839 b in 2015, set to reach $998 b in 2020 with AAGR of 5% and to reach $1.1 trillion in 2024 (all4Pack, 2016)
▪ Other industrial markets set to grow in US market due to minimum wage increases in China and other markets
▪ Packaging industry labor demand has doubled over last 2 years due to “in-shoring” of manufacturing staff
67
42 41 40 35 30
33
58 59 60 65 70
0
20
40
60
80
100
Rubber &
Misc. Plastics
Commercial
Machinery
Electronic
Components
Computer
Equipment
Fabricated
Metal
Products
Transportation
Equipment
Yes No% of respondents
At 15%-20% yearly Chinese wage growth, do you expect your company will move
manufacturing to the US?2
5.0%
34.0%
34.0%
27.0%
Latin America Europe Asia and MEA North America
2012 Packaging Markets by Geography
2012 Market Size
$400 billion
▪ Over 100 field personnel servicing marquee industrial clients
▪ High repeat business
▪ Reputation as premium quality service provider
Our Demonstrated Performance
Market Drivers
2
C E T X 10
Global Commitment to Reducing Greenhouse is a B$ Market
▪ Reduction of greenhouse gases is a major topic in global affairs
▪ China set to implement a Cap & Trade program for regulating CO2 by Summer '17
▪ Paris Climate Agreement creates framework for global commitment to reduce CO2
0
100
200
300
1990 2025 2050
Manufacturing Energy
Ind
ex
of
Act
ivit
y
Global Industrial
Growth1
+33%
+47%
NAFTA, 10
East Asia, 22West Asia, 3
Eastern
Europe, 1
Middle
East, 1
Africa, 1
South
America, 2
CIS, 2Western
Europe, 5
$47 B Air Pollution
Control Market
+125%
+90%
1: McIlvane & Co
▪ Technologies for Monitoring & Control of CO2 will see increase demand
▪ Proven GHG Abatement Tech – MCDRmulti-billion dollar market with cap & trade program in place
▪ Cemtrex offers comprehensive monitoring solutions for all greenhouse gas with hundreds of installations
Our Demonstrated Performance
The global emission control market was valued
at $11.7 billion in 2014 and is projected to reach
$22.1 billion by 2023, a CAGR of 7.3%
Market Drivers
3
CETX EMS DIVISION'S MARKET TRENDS AND GOALSFull-Service EMS, Electronics and Cabling Products
C E T X
C E T X 12
▪ Automotive electronics generate ~80% of value added in cars and set to triple by 2019 (GTAI, 2016)
▪ Growing “smart cars” trend with connectivity and IoT for standard cars throughout the industry
▪ China will soon be capable of making 30 million cars per annum
$44.0
$37.0
$11.0
$9.0
$8.0
$7.0
2020 Connected Car Revenues
Driver Assistance
Saftey
Entertainment
Well Being
Vehicle Management
Mobility Management
Automotive Market Trends & Opportunities
▪ Certified and experienced manufacturer for high
end & complex automotive electronic systems
▪ 25% of EMS sales come from automotive industry
▪ Existing supplier to big German three directly or
through Tier 1 suppliers
▪ Acquired new key customer in automotive June
2016 with potential $20M purchase volume by 2019
Our Demonstrated Performance
4
Market Drivers
C E T X 13
Wearable Devices Market Trends and Opportunities
▪ The 2018 value of the global wearable technology market is expected double to US$12.0 billion (BI Insider, 2016)
▪ Landscape to change drastically as companies from jewelry to industrial clothing set to incorporate tech into products
Wearable Devices Expected to Double to $12B in Two Years
LAUNCHED SEPTEMBER 2016CETX Enabled Wearable Tech Motorcycle, Airbag Jacket
▪ Helped with entire development process from idea to large scale volume manufacturing
▪ $2M in sales from wearables last two years. Expect to double over next two years
▪ Helped develop and launch marquee product for racing apparel manufacturer
Our Demonstrated Performance
5
Industrial and Enterprise Wearable Shipments
Market Drivers
C E T X 14
Medical Devices & Industrial Products Driven by Robotics
▪ Medical devices set to grow at 9.3% CAGR driven by technology advances
▪ Aging populations coupled with extended life expectancy, create a large, sustainable demand for medical devices (ITA Medical Devices Top
Markets Report,2016)
▪ Germany is the leading, global exporter of medical devices (ITA Medical Devices Top Markets Report,2016)
▪ Worldwide spending on robotics and related services will hit $135.4 billion in 2019
2000 2008 2015
Asia-Pacific
Europe
Middle East & Africa
North America
South Central
America
$98.7 B
$158.0 B
$285.6 B
CAGR: 6.1%
CAGR: 9.3%
Global Medical Devices Market Growth Set to Accelerate
Electronic Production Market
▪ Existing customers for medical and industrial comprise 50% of sales
▪ Major customers are all market leaders in respective product segments
▪ New product introductions create environment for organic growth of 20% for these segments
Our Demonstrated Performance
Electro-Surgical Tools
Market Drivers
6
MANAGEMENT AND FINANCIAL RESULTSProven Operators and a Strong Board of Directors
C E T X
C E T X 16
Renato Delrama, Chief Financial Officer
An Executive Team Consistently Growing Shareholder Value
Saagar Govil, Chief Executive Officer & President
Board of Directors
Aron Govil, Executive Director – Founder of CETX, Serial Entrepreneur, Ran Public & Private Cos. B.E. Chemical Engineering, MBA.Finance
Raju Panjwani, Director – 18 years at Morgan Stanley, Asia specialist. M&A, and capital raising, CPA at PWC prior to Morgan Stanley.
Sunny Patel, Director - Activist investor in growth companies, CFA Level 3 candidate Cum Laude from NYU's Stern School of Business.
Shamik Shah, Director - CTC derivatives trading in natural gas futures and options. Energy market focus.. Rothchild fund of funds analyst.
CEO and President since December 2011. Named to Forbes 30 Under 30 in 2016, #17 on Business Insider’s “Top 100 of Silicon Alley”and “Top 40 Under 40” by Stony Brook University. Previous Vice President of Operations designing turnkey engineered systems.B.E. in Materials Engineering from Stony Brook University.
Chief Financial Officer since December 2004. Previous management n various accounting, banking and financial firms. B.S. degree inbusiness administration with an accounting major, M.A. in business administration, and is a Certified Public Accountant.
Jim Heinrichs, General Manager, IPSGeneral Manager since 2015. Started at Cessna Aircraft in Avionics & Electrical Engineering. Managed projects for Master Engineers,Inc. and Jacob Engineering. Past manager at Miller Printing Equipment, Web-Application Engineer, Service/Installation Manager.
5 Year BV/Share
CAGR:128%▲$.01 (‘11) to
$1.85 (Q1‘17)
3 Year ROE:
116%▲ EPS
Growth:
$.15 (‘11) to
$.42 (‘15)
1Commitment to
Shareholder Value
25 Year Revenue
growth of > 250%
320% Organic Growth
in 2015 alone
4Completed Several
Accretive Acquisitions
5Awarded for
Excellence
0
0.25
0.5
0.75
1
1.25
1.5
1.75
2
2011 2012 2013 2014 2015 2016
Book Value Equity / Share
C E T X 17
Fiscal Year September 30 Recent Financing Rights Offering
Closed Jan. 23 2017
Last-Traded Price (03/10/17) $3.54 Capital Raised $14.1 M
Average Volume 931,705 Preferred Common Sold 1,735,400 M
F/D Share count ~13 M CASH Warrants @ $6.31 3.47 M
Market Cap ~$55 M
CETX on Capital Markets
Cemtrex In the News
Cemtrex, Inc. (CETX) FY 2017 Q1 Net Income Up 103%, EBITDA up 138% and EPS Increasing 56%
Cemtrex Announces Conclusion of Rights Offering and Commencement of Subscription Period for Offering of Unsubscribed Units
Cemtrex Plans to Setup A Manufacturing Plant for Instrumentation Products in India
Worldwide Commitment to Paris Climate Agreement To Open Up New Opportunities for Cemtrex
Cemtrex Looks to Tap New Market By Turning Greenhouse Gas Into Graphene
Cemtrex Provides Update on Recent Acquisition of Periscope
Cemtrex Inc. (CETX) Announces Q3 Sales of $24.7 Million, an Increase of 69%
Cemtrex Issues Shareholder Letter Outlining Recent and Expected Milestones
C E T X 18
CETX's Value and Investment Opportunity
P/E Ratio vs. Peers(Capital IQ Data as of 12/31/16)
PriceMarket
Cap $M
Trailing
P/E
Forward
P/E
Ecolab, Inc. ECL $120.14 35 33.4 24.5
Donaldson Company, DCI $41.89 5,530 26.9 23.8
Jabil Circuit JBL $23.94 4,360 13.6 10.0
Clarcor, Inc. CLC $82.85 4,040 28.4 29.0
Benchmark Electronics BHE $30.55 1,490 18.1 19.3
Calgon Carbon CCC $15.95 808 29.6 17.9
CECO Environmental CECE $13.07 446 44.9 13.8
P/E Peer Average 24.0x 19.9x
Cemtrex, Inc. CETX
as of March 10, 2017$3.58 62 5.1 3.7
Growth Rankings(Capital IQ Data as of 9/12/16)
5 Y CAGR
Revenues
Market
Cap
Revenues
LTM
EBITDA
LTM
1. Revolution Lighting RVLT 88.7 132.4 152.8 9.58
2. Cemtrex Inc. CETX 67.8 48.4 71 5.12
3. Flurida Group, Inc. FLUG 41.9 23.6 47.1 2.25
4. FreightCar America Inc. RAIL 40.2 173.4 719.2 49.3
5. US Ecology, Inc. ECOL 40 927.6 522.4 119.1
6. NV5 Global, Inc. NVEE 37 350.5 191.8 22.6
7. Radiant Logistics, Inc. RLGT 34.5 156.1 795.1 22.7
8. Manitex International MNTX 32.2 100.3 383.8 22.3
▪ We are a value as a
growth company in
the small cap space
▪ A near 3x multiple
upside based on our P/E
versus comps
▪ Our value is supported by
5 year revenue growth
rates in the top two of
US Based, profitable
industrial companies
C E T X 19
Proforma as of March 10, 2017 Actuals as Reported in 1Q17 10-Q
Cash $17.8 M $29.4 M Revenues
Net Fixed Assets $33.6 M $9.7 M Gross Profits
Total Assets $64.7 M 33% Gross Profit Margin
Shareholder Equity $34.5 M 45% Insider Ownership
Financials
For the Fiscal Years Ended September,
2016 and 2015(in thousands)
2016 2015
Revenues $93,705 ▲65% $56,887
Gross Profit $29,214 ▲79% $16,332
Gross Margin % 31%▲
200 bps 29%
EBITDA $5,064 ▲102% $2,501
EBITDA % Sales 5.4%▲
40bps 5%
Net Income $4,954 ▲
75% $2,838
Shares Outstanding 8,582,266 7,059,225
EPS $0.58 $0.40
Proforma Balance Sheet as of March 10, 2017 and Actuals
For the First Quarter Ended December 31,2016
C E T X 20
C E T X
▪ Share buy-back program initiated with 200,000 purchase in
March, 2017
▪ Company initiates annual dividend policy of $0.02 per share of
common stock.
▪ Completing accretive acquisitions combined with organic
growth with very little Goodwill
▪ Nasdaq uplisting on 6/25/15
We are in the right markets…
..and focused on shareholder value
▪ Emerging growth
▪ In-shoring of manufacturing
▪ Global commitment to
climate change
▪ Automotive technologies
▪ Wearable technologies
▪ Automation & robotics in
medical fields
Maximizing Industries’ Potential
19 Engineers Lane
Farmingdale, NY
11735 USA
US +1 (631) 756-9116
www.cemtrex.com
Investors
C E T X