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C E T X Investor Presentation Maximizing Industrial and Manufacturing Output…..Responsibly. Maximizing Industries’ Potential 2017 MARCH

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Page 1: CETX Investor Presentation - Cemtrex · 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%

C E T X

InvestorPresentation

Maximizing Industrial and Manufacturing

Output…..Responsibly.Maximizing Industries’ Potential

2017M A R C H

Page 2: CETX Investor Presentation - Cemtrex · 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%

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.

Page 3: CETX Investor Presentation - Cemtrex · 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%

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:

Page 4: CETX Investor Presentation - Cemtrex · 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%

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

Page 5: CETX Investor Presentation - Cemtrex · 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%

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

Page 6: CETX Investor Presentation - Cemtrex · 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%

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

Page 7: CETX Investor Presentation - Cemtrex · 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%

IPS DIVISION'S MARKET TRENDS AND GOALSAir Filtration, Environmental Monitors, Industrial Contracting, Analyzers, Instrumentation

C E T X

Page 8: CETX Investor Presentation - Cemtrex · 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%

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

Page 9: CETX Investor Presentation - Cemtrex · 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%

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

Page 10: CETX Investor Presentation - Cemtrex · 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%

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

Page 11: CETX Investor Presentation - Cemtrex · 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%

CETX EMS DIVISION'S MARKET TRENDS AND GOALSFull-Service EMS, Electronics and Cabling Products

C E T X

Page 12: CETX Investor Presentation - Cemtrex · 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%

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

Page 13: CETX Investor Presentation - Cemtrex · 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%

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

Page 14: CETX Investor Presentation - Cemtrex · 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%

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

Page 15: CETX Investor Presentation - Cemtrex · 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%

MANAGEMENT AND FINANCIAL RESULTSProven Operators and a Strong Board of Directors

C E T X

Page 16: CETX Investor Presentation - Cemtrex · 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%

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

Page 17: CETX Investor Presentation - Cemtrex · 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%

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

Page 18: CETX Investor Presentation - Cemtrex · 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%

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

Page 19: CETX Investor Presentation - Cemtrex · 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%

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

Page 20: CETX Investor Presentation - Cemtrex · 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%

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

Page 21: CETX Investor Presentation - Cemtrex · 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%

Maximizing Industries’ Potential

19 Engineers Lane

Farmingdale, NY

11735 USA

US +1 (631) 756-9116

[email protected]

www.cemtrex.com

Investors

[email protected]

C E T X