Miller Industries, Inc. 17th Annual Midwest IDEAS Conference

Afternoon, everyone. Jeff Elliott, Three Part Advisors. I would like to introduce our next presenting company, Miller Industries, ticker's MLR. With us here today from the company, we have Will Miller, CEO, Nick Tiano, Chief of Staff, and Katarina Qatar, Director of Finance. Miller's a Three Part client, so if anybody would like a follow-up meeting or a call, please reach out to me directly. Happy to help set that up. With that, I will just turn it over to Will.

Thank you, Jeff. Good afternoon, everybody. I will try to keep everybody awake in here. I have never done one this late in the afternoon, so we will see. I try to keep it pretty active, pretty quick. We start off with a short little video. It is going to give you a little bit of a background, historical background on our company, how we manufacture our product, how we go to market and distribute our product globally. Then, I will jump into the presentation. I will not spend too much time. I am going to go through it pretty high level and then open it up for questions as quickly as possible, which I think seems to work the best with everybody.

Three Part guys must be bored today coming to visit, huh? Hopefully that gave you a little bit of an overview if you are not familiar with our processes and the products that we manufacture. I will jump into the presentation. You can stop me at any point. If you do have a question, feel free. Quickly, our safe harbor statement. As you know, forward-looking statements may be made today, and please read the statement and all of our information that is out there with regards to forward-looking statements. We are the world's largest manufacturer of towing and recovery equipment with approximately 1,500 employees worldwide. Founded in 1990. Headquartered in Ooltewah, Tennessee, operating in Tennessee, Pennsylvania, England, France, and Italy. We have a very simple philosophy at Miller Industries. We have the best people, the best products, and the best distribution network in the towing and recovery industry.

Really, when people ask us, "What's your moat?" What creates our differences between our competitors, it's our distribution network. Our global distribution network is really what has created the success that Miller Industries has today. Quick investment highlights. Consistent organic growth, currently at approximately 11.5% since the inception of the company. Industry-leading, consistent quarterly dividend, I believe 60-plus consecutive quarters. We are considered the leader in innovation in the towing and recovery industry, best-in-class products and distribution, strong customer relationships, strong and attractive financial metrics, and a very experienced management team. The towing and recovery market is a multi-billion dollar global market. There are some primary market segments that we separated into. Commercial towing, which is your standard towing of vehicles, both commercial and non-commercial vehicles, interstates and highways. Transportation fleets such as rental companies and salvage companies like Copart. Government and municipal sales and military.

Our primary product types are light-duty recovery vehicles, medium and heavy-duty recovery vehicles, Rotators, and car transport vehicles. Industry drivers. The towing industry is pretty simple, so maybe it's not that sexy, but it's miles driven, accidents per miles driven, the last mile driven deliveries such as Amazon deliveries, things of that nature delivered to our homes. Aging vehicle fleets, both here in the U.S. and Europe, are predominantly driving some of our growth. General infrastructure and construction and natural disasters. Accelerators, trade cycles, seeing that need to trade your vehicle more often as the diesel engines become more complex and aren't lasting as long. Future emission changes affecting diesel engines, global conflict, and military recovery vehicle upgrades. Our strategy, as I said, is pretty simple. To develop a world-class team. To innovate, design, and produce the highest quality products. Locate, develop, and maintain a five-star distribution network globally.

Invest in our business and grow through commercial market share. Explore new market potentials and develop innovative products to create new opportunities. Talked earlier about our experienced management team, over 200 years in our C-suite. Our founder and chairman of the board is still with the company. Everybody here has 20-plus years of industry experience with Miller Industries and even more outside of Miller Industries. Manufacturing locations. As the video stated, we have manufacturing facilities here in the U.S. We have Ooltewah, Tennessee, which is where our corporate headquarters is also, a suburb of Chattanooga, Tennessee. Athens, Tennessee, where our hydraulic cylinder manufacturing company is. Greenville, Tennessee, where we build our dual Car Carriers, mostly for rental fleets. Hermitage, Pennsylvania, where we build all of our two-car carriers. Thetford, England, where Boniface is located. Revigny, France, with Jige. As of December of last year, we are proud to announce that we are now in Italy for manufacturing with the acquisition of OMARS.

Our product brands, although if you look at some of our documentation, you'll see far more brands that we've acquired over the years. Here in the U.S., we really focus on the Century, Vulcan, and Chevron brands. The Holmes brand we do own. We do market some products underneath it. It is the world's oldest brand name for tow trucks. Tow truck was developed in 1916 in Chattanooga, Tennessee, so we keep that brand alive. Titan is a brand we use for the rental delivery equipment, and then Boniface, Jige, and OMARS in the European market. Revenue streams and sales channels for Miller Industries. North American distribution, where currently about 90% of our revenue comes from, export European operations, and national accounts.

North American distribution, actually it was 53 distributor principals when this was made. It is down to 52, with approximately 75 distributor locations here in the United States. 100% of our distributors are exclusive to Miller Industries, which makes us a little different than most sales channels. Those exclusive distributors employ approximately 300 retail salespeople here in North America that sell our product every day, which is that discussion of our distributors are our moat. Those retail activity, that is retail salespeople that go out and rep our product every day to make their living for their families, is what really concentrates our ability to sell our product and maintain our market share here in North America. Looking at the commercial towing operators, average fleet size here in the United States is still small. These are owner-operator businesses with an approximate size of 10 to 15 trucks.

Really focused on trade cycle, warranty offering, cost of ownership during the duration of when they own the product. International manufacturing facilities. We have discussed Jige, Boniface, and OMARS. We have a strong European order backlog. We are currently expanding in Jige. You can see here in the bottom right, we have greenlit back last year an 8 million euro expansion, approximately 52,000 sq ft to double their manufacturing and chassis integration of product built in the United States as well as in Europe to meet demands in the European market. We have got approximately 30 plus distributors globally with direct sales in foreign governments and militaries, and export to approximately 60 countries globally.