File: Attachment 06191275-00000001-00002159-Q3_2024_Press_Release-PDF.pdf

For Immediate Release: October 9, 2024

FIRAN TECHNOLOGY GROUP CORPORATION ("FTG") ANNOUNCES THIRD QUARTER 2024 FINANCIAL RESULTS

TORONTO, ONTARIO (October 9, 2024) Firan Technology Group Corporation (TSX: FTG) today announced financial results for the third quarter of 2024.

dot Third quarter bookings of $45.9M were up 29% over Q3 2023. dot Third quarter revenues of $43.1M were up 18% over Q3 2023. dot FTG achieved Adjusted EBITDA in Q3 2024 of $7.2M, which was up 45% over Q3 2023. dot FTG achieved Net Earnings in Q3 2024 of $2.8M, which was up 109% over Q3 2023.

Business Highlights

In Q3 2024, FTG once again had strong bookings because of increasing demand from all segments of the Aerospace and Defence market. This, combined with strong operating performance and continued progress in integrating last year's acquisitions, resulted in the Corporation achieving its best-ever quarterly financial results for revenue, Adjusted EBITDA and Adjusted Net Earnings, and also strong cash flow from operating activities.

During Q3 2024, the Corporation has continued to invest in technology in existing sites, grow the business organically, and integrate the two acquisitions completed last year. FTG is strategically deploying its capital in ways that will drive increased shareholder returns for the future in both the near term and long term. Specifically, FTG accomplished the following in Q3 2024, which continues to improve the Company and position it for the future:

dot Integration activities in Circuits Minnetonka progressed well in the quarter with continued improvements in throughput and shipments. Demand remained strong across its customer base and new customer activity progressed well. The site is fully operational in the FTG standard ERP system they transitioned to in Q2 of this year. As the quarter ended, a new General Manager was hired to lead this site into 2025 and beyond.

dot Integration activities in Circuits Haverhill advanced with the installation of new drills and electrical test equipment. The expansion of the customer base continued in the quarter. The implementation of the FTG ERP system also progressed in the quarter.

dot Customer orders received in Q3 2024 totaled $45.9M, resulting in a book-to-bill ratio of 1.07:1, and over the trailing 12 months period ended Q3 2024, FTG has achieved a book-to-bill ratio of 1.15:1.

dot As of August 30, 2024, FTG had total backlog of $121.4M, which is a 24% increase over the Q3 2023 backlog of $98.0M.

Press Release 24-013 Table 1 / Key Financial Metrics

Three months ended Nine months ended

August 30, September 1, August 30, September 1,

2024 2023 2024 2023

Sales $43,088 $36,611 $116,852 $95,209

Gross Margin 11,623 8,776 31,360 28,546 Gross Margin (%) 27.0% 24.0% 26.8% 30.0%

Net Earnings to FTG Equity Holders $2,764 $1,320 $6,367 $7,795

Adjustments - - - (3,758) Government assistance, net of tax - 79 - 615 Acquisition and divesture expenses, net of tax $2,764 $1,399 $6,367 $4,652

Adjusted Net Earnings(1)

Earnings Per Share $0.12 $0.06 $0.27 $0.33 Basic $0.11 $0.05 $0.26 $0.32 Diluted

Adjusted Earnings Per Share

Basic $0.12 $0.06 $0.27 $0.19

Diluted $0.11 $0.06 $0.26 $0.19

(1) Adjusted Net Earnings is not a measure recognized under International Financial Reporting Standards ("IFRS"). Management believes that this

measure is important to many of the Corporation's shareholders, creditors and other stakeholders. The Corporation's method of calculating Adjusted

Net Earnings may differ from other corporations and accordingly may not be comparable to measures used by other corporations.

FTG's sales increased by $6.5M, or 17.7%, from $36.6M in Q3 2023 to $43.1M in Q3 2024. The revenue increase in Q3 2024 was driven by organic growth, including an increase in Simulator products sales of $1.2M, and favourable foreign exchange rates. Year-to-date, sales have increased by $21.6M, or 22.7%, compared to year-to-date 2023. Year-to-date sales growth was driven by the acquisitions and organic growth, partially offset by lower simulator product sales and the strike at Aerospace Toronto in Q1 2024.

The Circuits segment sales in Q3 2024 were up $3.6M, or 13.3%, compared to last year as a result of strong customer demand and improved throughput. On a year-to-date basis, the Circuits segment sales were up $22.3M, or 34.9%, with $16.9M from acquisitions and $5.4M of organic growth. Circuits sites in Minnetonka and Haverhill were acquired in April 2023, and year-to-date 2024 includes nine months of operating results for these sites, as compared to four months in 2023 year-to-date results.

For the Aerospace segment, sales in Q3 2024 increased by $3.4M, or 34.2%, compared to last year, due to a $1.2M increase in Simulator products sales and a $2.2M increase in other organic sales. On a year-to-date basis, Aerospace segment sales decreased by $0.3M, or 0.8%. This decrease was primarily due to a $6.3M drop in year-to-date Simulator product sales and a $3.0M impact from the Aerospace Toronto strike in Q1 24, which was partially offset by $9.0M in organic growth.

Gross margin in Q3 2024 was $11.6M, or 27.0%, as compared to $8.8M, or 24.0%, in Q3 2023. The increase in gross margin dollars and the gross margin rate primarily stems from higher sales volumes and operational improvements across FTG's operations. For the year-to-date period, the gross margin rate excluding government assistance is 26.8% for 2024, as compared to 26.7% for 2023. Factors increasing the gross margin rate include leverage from higher sales volumes and productivity improvements, while factors decreasing the gross margin rate include the decrease in sales of Simulator products, which is cyclical in nature, and the strike at Aerospace Toronto in Q1 2024.

Press Release 24-013 Net earnings after tax at FTG in Q3 2024 was $2.8M or $0.11 per diluted share compared to net earnings of $1.3M or $0.05 per diluted share in Q3 2023. The $1.4M increase in net earnings is the result of both higher sales volume and operational improvements. On a year-to-date basis, adjusted net earnings was $6.4M or $0.26 per diluted share compared to adjusted net earnings of $4.7M or $0.19 per diluted share in the prior year period, with the most significant adjustment being the exclusion of Government support in the 2023 results. The increase in adjusted net earnings for the year-to-date period is inclusive of the negative impacts of the decrease in Simulator products sales and the strike at Aerospace Toronto.

The Circuits segment earnings before interest and income taxes ("EBIT") was $3.5M in Q3 2024 as compared to $2.2M in Q3 2023. The increase in Circuits segment EBIT is primarily driven by higher sales volume and operational improvements. Year-to-date, Circuits segment EBIT was $8.8M as compared to $7.6M in 2023. Excluding the $2.8M of government assistance in 2023, Circuits segment EBIT increased by $4.0M.

The Aerospace segment EBIT was $2.4M in Q3 2024 versus $1.6M in Q3 2023. The increase in earnings was driven by the increase in sales. Year-to-date, Aerospace segment EBIT was $5.8M as compared to $6.7M in 2023 with sales being relatively flat. Excluding $1.0M of government assistance in 2023, Aerospace segment EBIT was up $0.1M. Aerospace segment EBIT in 2024 has been negatively impacted by lower Simulator revenue and the strike in Q1 2024 at Aerospace Toronto.

Table 2 / EBITDA

Three months ended Nine months ended Trailing

August 30, September 1, August 30, September 1, 12

2024 2023 2024 2023 Months

Net earnings to equity holders of FTG $2,764 $1,320 $6,367 $7,795 $10,193

Add:

Interest and accretion 569 542 1,681 771 2,193

Income taxes 1,446 944 3,257 2,693 2,789

Depreciation and amortization 2,160 1,998 6,285 4,938 8,235

EBITDA(1) $6,939 $4,804 $17,590 $16,197 $23,410

Adjustments

Stock based compensation 247 90 633 315 830

Government assistance - - - (3,758) -

Acquisition and divesture - 79 - 615 -

expenses

Adjusted EBITDA(1) $7,186 $4,973 $18,223 $13,369 $24,240

(1) EBITDA and Adjusted EBITDA are not measures recognized under International Financial Reporting Standards ("IFRS"). Management believes that these measures are important to many of the Corporation's shareholders, creditors and other stakeholders. The Corporation's method of calculating EBITDA and Adjusted EBITDA may differ from other corporations and accordingly may not be comparable to measures used by other corporations.

Adjusted EBITDA for Q3 2024 was $7.2M or 16.7% of sales, as compared to $5.0M or 13.6% of sales in Q3 2023. The increase in profitability is driven by increased operating leverage from higher sales and operational improvements across FTG's operations. For the trailing twelve months period ended August 30, 2024, adjusted EBITDA was $24.2M or 16.1% of sales as compared to $19.4M or 14.3% of sales for the full year 2023.

As at August 30, 2024, the Corporation's net working capital was $47.8M, compared to $41.0M at year-end in 2023.

Cash flow from operating activities in Q3 2024 was $5.3M as compared to $3.5M in Q3 2023 primarily due to higher net earnings. Cash used for lease liability payments was $1.0M in Q3 2024 as compared to $0.9M in Q3 2023. Year-to-date cash flow from operating activities was $10.0M in 2024 as compared to $7.3M in the same period in 2023. Excluding $3.8M of Employee Retention Credit included in the year-to-date period in 2023, year- to-date cash flow from operating activities increased by $6.5M.

Press Release 24-013 Net debt at the end of Q3 2024 was $2.2M compared to net debt of $3.6M at the end of 2023. During the quarter, the Corporation paid the holdback on the IMI acquisition of $0.4M. In addition, FTG has access to committed credit lines of approximately $23.8M.

The Corporation will host a live conference call on Wednesday, October 9, 2024, at 4:00pm (Eastern) to discuss the results of Q3 2024.

Anyone wishing to participate in the call should dial 1-289-514-5100 or 1-800-717-1738, Conference ID 24844, and identify that you are calling to participate in the FTG conference call. The Chair is Mr. Brad Bourne. A replay of the call will be available until November 15, 2024, and will be available on the FTG website at www.ftgcorp.com. The number to call for a rebroadcast is 1-289-819-1325 or 1-888-660-6264, Playback Passcode 24844#.

ABOUT FIRAN TECHNOLOGY GROUP CORPORATION

FTG is an aerospace and defence electronics product and subsystem supplier to customers around the globe. FTG has two operating units:

FTG Circuits is a manufacturer of high technology, high reliability printed circuit boards. Our customers are leaders in the aviation, defence, and high technology industries. FTG Circuits has operations in Toronto, Ontario, Chatsworth, California, Fredericksburg, Virginia, Minnetonka, Minnesota, Haverhill Massachusetts and a joint venture in Tianjin, China.

FTG Aerospace manufactures and repairs illuminated cockpit panels, keyboards and electronic assemblies for original equipment manufacturers of aerospace and defence equipment. FTG Aerospace has operations in Toronto, Ontario, Chatsworth, California, and Tianjin, China.

The Corporation's shares are traded on the Toronto Stock Exchange under the symbol FTG.

FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Corporation and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Corporation's industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Corporation and not place undue reliance on forward-looking statements. Other than as may be required by law, FTG disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

Press Release 24-013 For further information please contact: Bradley C. Bourne, President and CEO Firan Technology Group Corporation Tel: (416) 299-4000 x314 bradbourne@ftgcorp.com Jamie Crichton, Vice President and CFO Firan Technology Group Corporation Tel: (416) 299-4000 x264 jamiecrichton@ftgcorp.com Additional information can be found at the Corporation's website www.ftgcorp.com

Press Release 24-013 FIRAN TECHNOLOGY GROUP CORPORATION Interim Condensed Consolidated Statements of Financial Position

(Unaudited) August 30, November 30, (in thousands of Canadian dollars) ASSETS 2024 2023 Current assets Cash and cash equivalents $ 8,358 $ 6,616 Accounts receivable Contract assets 30,682 28,679 Inventories Prepaid expenses and other 407 300

Non-current assets 37,333 36,561 Plant and equipment, net Non-current deposits 2,003 1,894 Right-of-use assets Intangible assets 78,783 74,050 Deferred tax assets Deferred development costs 17,268 15,982 Goodwill Total assets 84 505 LIABILITIES AND EQUITY Current liabilities 21,390 23,628 Accounts payable and accrued liabilities Provision for product warranties 1,539 1,716 Contract liabilities Current portion of bank debt 53 674 Current portion of government loan Current portion of lease liabilities 134 162 Income tax payable Current contingent consideration 8,929 8,990

Non-current liabilities $ 128,180 $ 125,707 Bank debt Government loan $ 21,036 $ 24,377 Lease liabilities Contingent consideration 831 653 Total liabilities Equity 2,196 1,841 Retained earnings Accumulated other comprehensive income (loss) 623 1,020

Share capital 246 175 Common Shares 3,814 3,830 Contributed surplus Total equity attributable to FTG's shareholders 55 1,103 Non-controlling interest Total equity 2,217 - Total liabilities and equity 31,018 32,999

2,228 3,448 7,468 5,585 19,365 21,120 2,232 - 65,384 60,079

$ 37,402 $ 31,035

(231) (1,349)

37,171 29,686

21,150 21,310

8,797 8,539

67,118 59,535

983 788

68,101 60,323

$ 128,180 $ 125,707 FIRAN TECHNOLOGY GROUP CORPORATION Interim Condensed Consolidated Statements of Earnings

Three months ended Nine months ended

(Unaudited) August 30, September 1, August 30, September 1, (in thousands of Canadian dollars, except per share amounts) 2024 2023 2024 2023 Sales $ 43,088 $ 36,611 $ 116,852 $ 95,209 Cost of sales Cost of sales 29,446 26,001 79,495 62,075 Depreciation of plant and equipment 1,303 1,134 3,861 3,092 Depreciation of right-of-use assets 716 700 2,136 1,496

Total cost of sales 31,465 27,835 85,492 66,663 Gross margin 11,623 8,776 31,360 28,546

Expenses 5,068 4,052 14,619 12,221 Selling, general and administrative 1,727 1,618 4,691 4,588 Research and development costs (150) (185) (489) (529) Recovery of investment tax credits 136 153 Depreciation of property, plant and equipment 48 52 54 48 Depreciation of right-of-use assets 19 16 166 231 Amortization of intangible assets 50 132 304 (95) Interest expense (income), net 97 98 282 135 Notional interest expense on government loans 108 64 1,095 731 Accretion on lease liabilities 364 380 633 315 Stock based compensation 247 90 50 78 Foreign exchange (gain) loss (225) 121 - 30 Loss provision on sale-leaseback of building 17,906 - - 21,541 Total expenses 7,353 6,438

Earnings before income taxes 4,270 2,338 9,819 10,640

Current income tax expense 1,416 907 3,159 2,587 Deferred income tax expense 30 106 Total income tax expense 37 98 1,446 2,693 Net earnings 944 3,257

Attributable to: $ 2,824 $ 1,394 $ 6,562 $ 7,947 Non-controlling interest Equity holders of FTG $ 60 $ 74 $ 195 $ 152

Earnings per share, attributable to the equity holders of FTG $ 2,764 $ 1,320 $ 6,367 $ 7,795 Basic Diluted $ 0.12 $ 0.06 $ 0.27 $ 0.33

$ 0.11 $ 0.05 $ 0.26 $ 0.32 FIRAN TECHNOLOGY GROUP CORPORATION Interim Condensed Consolidated Statements of Comprehensive Income

Three months ended Nine months ended

(Unaudited) August 30, September 1, August 30, September 1, (in thousands of Canadian dollars) 2024 2023 2024 2023

Net earnings $ 2,824 $ 1,394 $ 6,562 $ 7,947

Other comprehensive income (loss) to be reclassified to net earnings (loss) in subsequent periods:

Change in foreign currency translation adjustments (573) 330 (481) (147) Net gain (loss) on valuation of derivative financial instruments 750 (945) 2,132 (1,281) (188) 236 (533) designated as cash flow hedges 320 Deferred income taxes on net gain on valuation of

derivative financial instruments designated as cash flow hedges

(11) (379) 1,118 (1,108)

Total comprehensive income $ 2,813 $ 1,015 $ 7,680 $ 6,839

Attributable to: $ 2,753 $ 941 $ 7,492 $ 6,679 Equity holders of FTG 74 $ 188 $ 160 Non-controlling interest $ 60 $ FIRAN TECHNOLOGY GROUP CORPORATION Interim Condensed Consolidated Statements of Changes in Equity

Nine months ended August 30, 2024 Attributed to the equity holders of FTG

(Unaudited) Accumulated (in thousands of Canadian dollars) Balance, November 30, 2023 other Non- Net income Stock-based compensation - PSU & RSU Common Retained Contributed comprehensive controlling Total Transfer from contributed surplus to shares earnings surplus income (loss) Total interest equity

share capital for PSU's excercised $ 21,310 $ 31,035 $ 8,539 $ (1,349) $ 59,535 $ 788 $ 60,323 Common shares repurchased and issued - - 6,367 356 - 6,367 195 6,562 on exercise of PSU's Repurchase and cancellation of shares - - - 356 - 356 Other comprehensive income Balance, August 30, 2024 98 - (98) - - - -

(258) - - (258) - (258) - - - - - - - 1,118 - - (231) $ 1,118 983 $ 1,118 - - 8,797 $ 67,118 $ 68,101

$ 21,150 $ 37,402 $

Nine months ended September 1, 2023 Attributed to the equity holders of FTG

Accumulated

other Non-

(Unaudited) Common Retained Contributed comprehensive controlling Total equity (in thousands of Canadian dollars) shares earnings surplus income Total interest 49,295 Balance, November 30, 2022 $ 21,357 $ 19,521 $ 8,319 $ (867) $ 48,330 $ 965 $ 7,947

Net income - 7,795 - - 7,795 152 134 (53) Stock-based compensation - PSU - - 134 - 134 - (396) (1,108) Repurchase and cancellation of shares (20) (33) - - (53) - 55,819

Return of capital to non-controlling interest - - - - - (396)

Other comprehensive income (loss) - - - (1,100) (1,100) (8)

Balance, September 1, 2023 $ 21,337 $ 27,283 $ 8,453 $ (1,967) $ 55,106 $ 713 $ FIRAN TECHNOLOGY GROUP CORPORATION Interim Condensed Consolidated Statements of Cash Flows

Three months ended Nine months ended

(Unaudited) August 30, September 1, August 30, September 1, (in thousands of Canadian dollars) Net inflow (outflow) of cash related to the following: 2024 2023 2024 2023 Operating activities Net earnings $ 2,824 $ 1,394 $ 6,562 $ 7,947 Items not affecting cash and cash equivalents 121 43 363 134 Stock-based compensation - PSU & RSU - 25 75 25 (Gain) Loss on disposal of property, plant and equipment - - - 30 Loss provision on sale-leaseback of building 73 45 (41) Effect of exchange rates on U.S. dollar bank debt 1,351 1,186 139 Depreciation of property, plant and equipment 735 716 3,997 3,245 Depreciation of right-of-use assets 50 132 2,190 1,544 Amortization of intangible assets 24 (36) Amortization, other 108 64 166 231 Notional interest expense on government loan 30 37 (68) (82) Deferred tax expenses 364 380 282 135 Accretion on lease liabilities (430) (623) 98 106 Net change in non-cash operating working capital 5,250 3,363 1,095 731 (4,851) (6,721) Investing activities 10,048 7,284 Acquisition of Holaday Circuits, LLC Acquisition of IMI, Inc. - - - (24,410) Proceeds from sale-leaseback of Aerospace Chatsworth facility (411) - (411) (1,844) Additions to property, plant and equipment - 8,382 (Increase) Decrease in non-current deposits - (1,755) - (4,218) Recovery of contract and other costs (771) 58 (5,403) (657) Additions to deferred financing costs 18 (84) 6 419 (66) Net cash flow from operating and investing activities 13 (15) 29 Financing activities - (1,706) (12) (22,795) (1,253) 1,657 (15,511) Proceeds from government loans 3,997 (5,378) Proceeds from bank debt 4,670 Repayments of bank debt Return of capital to non-controlling interest - 716 1,856 3,005 Lease liability payments - Repurchase of common shares on exercise of PSU's - (243) - 4,073 Repurchase and cancellation of shares - (1,306) (904) (1,860) (736) Effects of foreign exchange rate changes on cash flow - Net increase (decrease) in cash and cash equivalent - (23) - (396) Cash and cash equivalents, beginning of the period (454) Cash and cash equivalents, end of period (953) (2,814) (1,925) 2 - 1,205 (258) - 2,731 - 3,936 - (53)

(2,259) (3,076) 3,968

300 148 (187)

2,038 1,742 (11,730)

6,320 6,616 15,666

$ 8,358 $ $ 8,358 $ 3,936

Disclosure of cash payments $ 97 $ 98 $ 304 $ 84 Payments for interest Payments for income taxes $ 671 $ 442 $ 3,821 $ 1,730