LION Annual Report 2023

A MESSAGE TO OUR STAKEHOLDERS

Dear Stakeholders,

I am proud of the agility, effort and commitment shown by the entire LION team this 125th year in our existence. Again this year, we made great strides increasing our velocity, the speed and purposeful direction we take as a company, in order to meet our customers’ expectations.

The festivities to commemorate our 125th year were held on July 19th across the company. It was a wonderful day of celebration as well as one of remembrance of those who came before that enabled us to reach this amazing milestone.

Americas revenue grew 30% over FY22. The Uniform group continues to deliver results and accounted for one third of the revenue growth. However, each product line of the Americas had significant growth that contributed to the overall growth result. Turnout gear revenue growth continued in FY23 due to more orders and the increased velocity of our output. Our production output increased significantly in 2023. We shipped 8% more turnout units in FY23 than FY22.

In the Americas, the Beattyville, Kentucky liner production operation combined with the West Liberty, Kentucky coat operation increased their output as a result of higher retention

and significant investment in machinery. Our Dayton, Ohio operation continued to mature which enabled it to take on more large municipal fire department orders than last year. This ability to produce larger size orders in Dayton to enable West Liberty to focus on more complex, smaller orders was part of the original purpose for Dayton.

In FY23 we recognized the continued positive impact of the FY22 reset of our sales organization that added the roles of category sales manager and strategic account manager in Americas. The evidence is clear we have enhanced our ability to sell across our entire product line and to develop more strong relationships with major metro fire departments and large law enforcement agencies

In EMEA, we continued work on modularizing our training solutions offerings to simplify our offerings in order to build production velocity. We moved to a new location in the Netherlands in early 2023. The move to Tilburg enabled us to drastically improve the quality and flexibility of our workspace to meet the growing demand for our training solutions. We gained some ground on the supply chain challenges that plagued us during COVID through diligent effort. As a result, revenue increased 33% over FY22.

At the corporate level, we welcomed two new leaders to the leadership team. I promoted Apryl Van Oss, VP of the Project Management Office (PMO) to VP of Information Systems after the retirement of Mark Boyed. Mark had served as VP of IT for over a decade, completing many important projects over his tenure. Joe Eiser joined the leadership team as VP of Americas Operations after a successful tenure at Gorilla Glue Inc. He succeeded Dave

Cook, who had served as VP of Americas Operations for ten years, overseeing the significant expansion of our turnout gear capacity as a result of opening the Dayton and Beattyville factories. I am grateful for Mark’s and Dave’s long-term commitment to our purpose and look forward to working with Apryl and Joe as we build on their predecessor’s work.

The velocity of our innovation continued at a robust rate. Thank you to the IT, Innovation and Product Development (IPD), and product management groups for their concerted efforts to challenge the status quo of our products and services in order to provide solutions that our customers value and that keep them safer. In FY23, we took two big steps. As an important step towards completing the integration of our acquisition of the Elbeco brand, Karen Lehtonen, VP of Global Innovation & Product Development, took responsibility for the uniform IPD effort. W e also established a standing EPMO group, the New Product Launch governance team, dedicated to ensuring that our new product launches follow a standard process incorporating the cross functional coordination necessary for a successful launch. Our PMO process continues to enable the LION team to act with focus, agility, velocity and accountability while working in the hybrid work world we now live in. We continue to become more comfortable and more skilled in its use. The use of project management process to manage business activity whether it be new, or continuous improvement efforts is the most effective way to balance the need for collaboration, focus-work time and accountability. Using this approach enables any team member to take whatever amount of time during their day they choose, in the office or at their home office, as long as the result is delivered by their deadline.

Finally, I will end my letter with a second year of gratitude to the entire team for everyone’s work to ensure that the Elbeco brand acquisition has continued to be a huge success for internal and external stakeholders. We shipped a record volume of Elbeco branded products to our customers this year and plan on continued strong growth in fiscal year 2024. Our ONE LION Uniform business Oracle integration team has worked closely over the past year to ensure we experience an uneventful go-live of the new system in March of 2024.

A core strategic theme continuing to be primary for the next few years will be to act with Velocity. For FY24 the leadership team has recognized two other themes to be of critical importance: act with ONE LION thinking, and act to eliminate capacity as a constraint.

I am confident in these strategies for growth because of our leadership team’s alignment with them, the strength of their teams, our supplier partners, and our customer’s trust in our products and services. There are potential macroeconomic challenges ahead, but I believe we are in a strong position to maneuver through them to achieve the team’s and the company’s full potential.

Sincerely,

Stephen Schwartz CEO, Co-Owner

LION Celebrates 125th Anniversary

Andrew Schwartz

Stephen Schwartz

On the occasion of our 125th anniversary, we’d like to recall the history of LION as a fourth-generation family-owned company in the Dayton, Ohio community.

LION was founded by our great grandfather William Lapedes in 1898 when he started selling dry goods out of a horse drawn wagon to rural families in the Dayton area. We like to call him the inventor of mobile shopping 120 years too soon. In about 1892, at the age of 13, William immigrated to the US from Russia with his mother and siblings and began working as a peddler. He was a natural marketer and promoter. Despite a fleet of only one wagon, it was labeled with a number 2!

William was an extremely hard worker, and soon he was able to hire employees and rent a storefront in downtown Dayton. He prospered in the 1910s and in the 1920s he started to focus his efforts on men’s clothing. Eventually, his son and daughter and their spouses joined him in the business.

William’s son Clarence attended university with the dream of being a stockbroker. Unfortunately, he was in the class of 1932, graduating during the depths of the Great Depression when this was not a good career choice. After a few years of working in the store, Clarence discovered a new dream for himself. He started manufacturing uniforms in the upstairs rooms of the store and selling them to local companies. During his honeymoon, he and his wife Judith drove to Florida, and as they stopped at gas stations along the way, he noticed that there was a great need for quality uniforms for station attendants. Clarence developed a

strong business in service station uniforms that became the core of LION for many decades.

During the 1940s, after World War II started, Clarence worked with the Armstrong Labs at Wright Field to make improvements to the electrically heated flight suits for bomber pilots. He eventually won a contract to make thousands of these suits for the Army Air Corps. LION was honored by the Commander of the Army Air Corps, the legendary H.H. “Hap” Arnold for LION’s work making those flight suits. After the War, Clarence continued to grow the business through his focus on salesmanship and manufacturing competency and began making firefighter work uniforms. He was a pioneer in the introduction of fabrics incorporating man-made fibers for commercial uniforms. The fire uniform business was so successful that when two different businesses making firefighter turnout suits became available, he saw great opportunity and merged them into a firefighter turnout gear division within LION. Clarence’s son Richard, our uncle, started working in the business in the 1960s, and worked in multiple capacities building up the firefighter turnout gear business. Richard pushed the company firmly towards building our strength in technology and innovation, as well as strong relationships with key fire service influencers and a strong distributor network that continues today. These were keys to making our company a leader in the fire personal protective equipment industry today.

Steve entered the business in 1989 and Andy came on in 1994. In 1989, the shareholders of LION helped to establish a company called National Safety Clean, the first company to clean and repair firefighter turnout gear. After selling it in the 1990s, we bought back National Safety Clean in 2006 to form the core of our

TotalCare® business that provides clean, safe PPE for firefighters to limit their exposure to carcinogens.

In 2012, we purchased two companies making firefighter training equipment called Haagen and Bullex forming the basis of our LION training product and training solution product line and our EMEA business unit. In 2022, we acquired the Elbeco brand of uniforms, returning to our roots in the uniform business.

After 125 years of entrepreneurial thinking, a commitment to quality and consistent growth, this year we have driven the company to its highest sales and profitability in the company’s history. And we all feel the momentum that will continue to generate these outstanding results well into the future with the 5th and 6th generations of family ownership. We remain convinced that the reason for our long-term success is our team members’ commitment to our purpose and core beliefs, as well as their commitment to our customers’ safety and success.

Remembering our special history, we feel extremely blessed to be able to carry on the legacy of LION in Dayton and around the world and proud to know that the products and services we have provided for so many years have made a difference in so many people’s lives. We have the most talented, creative, and hardworking people and most collaborative environment that we’ve ever had and look forward to continuing to keep our customers ready for action.

SAFETY, READINESS & IDENTITY

We remain solely focused on our “ready for action” purpose delivered through our mission to fulfill the personal safety, readiness and identity needs of our customers worldwide.

LION is a global leader in the provision of protective gear, uniforms, training products, training solutions and life cycle management services to first responders and military personnel globally. We have played a pioneering role in each of these product categories since the beginning of our involvement in them.

Safety. Keeping our customers safer for longer is a key driver in our global business plans. By developing and manufacturing the most innovative and customized protective clothing for first responders and helping maintain the clothing throughout its life cycle, we provide world-class, value-added products and services to our customers. With roadside strikes of first responders a threat, We strive to develop new products and enhancements such as ones that increase the visibility of the wearer

to keep first responders safer at the scene. By providing intrinsically safe and environmentally clean training solutions like the Attack digital hose line trainer, we have changed the way firefighter training can be conducted, increasing the LION trained firefighter’s safety.

Readiness. Preparing first responders to face the world’s worst flame, chemical and biological threats by offering the most innovative protective clothing, uniform and training products, and ensuring military organizations are equipped for the uncertain conditions they face daily continues to be a strategic focus. Ensuring Readiness means we process an order correctly the first time, we deliver when we promise, and our products are built with quality, so they perform repeatedly in the demanding environments our customers encounter. Sustaining Readiness means our TotalCare® Centers are standing by to inspect clean and repair our products efficiently so they return to service quickly. Finally, Readiness means delivering mental readiness to first responders who train with our products, so they have what athletes call “muscle memory” that enables them to react instinctively to dangerous situations.

Identity. We fulfill many aspects of the identity needs of our customers. Our first goal is to make our customers feel good about what they wear and as a result enhance their pride. We do this by ensuring our products project professionalism, feel good to the touch, and are the most comfortable and ergonomic available. Our ability and willingness to customize our product and service offerings to meet our customers’ specific identity needs also drives us. For example, we can rapidly modify standard garments in a multitude of ways before shipment. Finally, we provide innovative training products and training centers that develop first responders’ confidence in their ability, that develops them into safer operators.

Stephen Schwartz Andrew Schwartz Co-Owners

A family-owned business committed to innovation...

Founded in 1898 by William Lapedes, he opened The LION Store in 1911. Today, LION is still family-owned and managed.

Steve Schwartz, CEO, and Andy Schwartz, Corporate Counsel, great grandsons of William, continue the family tradition through their leadership roles. With stable family ownership, LION takes the longterm approach to investment in the best people, new technology and systems. The result of this commitment gives our global stakeholders confidence in LION’s ability to deliver on its mission statement’s promise to deliver innovative, game-changing new products and services that will enable our customers to be “ready for action.”

OUR history...

1898 4 Immigrant William Lapedes and his mother, Rebecca Yasanoff, begin to sell clothing and dry goods to farmers around the Dayton, Ohio area from a wagon (shown in the photo on the left).

1911 4 William moves into a retail store space on Jefferson Street in downtown Dayton, Ohio. He calls his new shop “The LION Store.”

1934 4 Clarence Lapedes, son of William, collects contact information of service stations while driving to Florida on his honeymoon. Returns home and begins sending the stations uniform catalogs.

1941 4 LION receives letter of commendation from Army Air Force Commanding General “Hap” Arnold saluting the company for “magnificent cooperation” in supplying the Army Air Force with electrically heated flying suits during World War II.

1950s 4 LION parallels growth of U.S. interstate system and service stations that follow.

1960s 4 LION opens regional warehouses. Sales people begin to call on a wider variety of customers. One group of new customers are fire departments purchasing station uniforms.

1970s 4Oil shock of 1973 dramatically reduces size of service station market. Lapedes is attracted to fire market because it is make-to-order. LION purchases first firefighter turnout coat business (Janesville®).

1981 4 Second turnout coat business (Body-Guard®) is purchased as aramid technology dramatically changes competitive landscape.

1985 4 LION wins its first “Prime Vendor” government contract with U.S. Department of Agriculture Forestry Service with many IT service innovations. This Prime Vendor contract ultimately leads to LION TotalCare®.

1998 4 LION wins London, U.K. TotalCare gear maintenance contract, first of its kind in the world, an era of international expansion begins.

2002 4LION partnership LHBw wins German Bundeswehr 12-year TotalCare contract for 900,000 soldiers.

2002 4LION acquires Starfield Safetywear in Toronto, Canada, expanding its presence in North America.

2004 4LION sells its legacy business division, the LION Uniform Group, to focus on the emergency service, civilian agency and military uniform business.

2007 4 Implementation of the first North American TotalCare Center, serving the Chicago Fire Department.

2009 4 Elimination of Body-Guard® turnout brand to focus turnout gear solely on Janesville. LION and LHBw sign agreement to merge LION’s international business into the LHBw’s daughter company LHD.

2010 4 LION moves corporate headquarters and changes its brand to simply “LION”.

2011 4 LION acquires BullEx and HAAGEN, world leaders in fire training equipment and facilities, and combines them into a new LION Training Resources Group (LTRG) business unit. That same year, LION purchases Safeguard America LLC, a manufacturer of the FireGuard brand of protective structural firefighting gloves.

2013 4 LION introduces the ATTACK™ Digital Fire Training System giving firefighters the ability to train in any location, even those areas where live fire is not possible.

2016 4 LION sells its LHBw business back to the German government and LION International is sold to Kantaras Investments Group.

2017 4 LION launches Project Twins to reconfigure into geographic based business units.

2019 4 LION releases the first UL certified particulate protection turnout gear named “RedZone” and announces the first of a series of “Project Velocity” strategic initiatives to double the size of LION by 2026.

2022 4 LION acquires law enforcement uniform leader Elbeco, returning to its apparel roots.

Our People Make the Difference

BUILDING A STRONG CORE

Jon E. May Senior Vice President, Human Resources

The growth of LION in 2023 presented Human Resources with both challenges and opportunities. As the workforce grew and organizations were restructured, the team got to work finding ways to keep LION ready for action.

HR faced tight time frames as they responded to leadership changes and the corresponding restructuring. Quick onboarding of critical talent and an investment in leadership talent across all levels was addressed. The talent and organizational design aspect of Project Velocity impacted many areas including TotalCare®, Training, Product Management, Marketing, Uniforms and EMEA.

HR continues to lead the development of LION’s key leaders, offering a learning series on coaching and a special program for supervisors at our manufacturing sites.

Great strides were made in the reduction of turnover in the Kentucky and Dayton Operations locations. Terminations were reduced significantly, equaling an indirect savings of $343,000. The results were the product of great collaboration between HR and Operations leadership. The team members at these sites were impacted by a shift in the tone and focus of leadership, which could be seen through enhanced wages and policy changes. There has been a 20% increase in the participation rate for Engagement Surveys and the average score is 4.98 (out of 6) in all categories.

The upgrade of the UKG/Kronos time and attendance system can also be cited as a contributor to the improved engagement at the manufacturing locations. The updated system provides more flexibility in scheduling and enhanced reporting and metrics. In addition, it provides the infrastructure for easier implementation of future improvements that will make life better for our team members.

This year marked the last year that Safety will be managed and overseen by Human Resources. The HR team worked closely with Operations to strengthen the program before its transition to that team. HR focused on relaunching the brand and tone of LION Safety by developing a formal EHS strategy and highlighting the importance of focusing on safety because LION is a safety company. This has paid off; the year-over-year trend of recordable incidents has declined.

This partnership with Operations will remain important moving into 2024. Not only will we continue to work together on safety drivers, but we are looking to continue the positive trend in reducing turnover through engagement and recognition efforts.

To keep pace with our next phase of growth, LION will be recruiting and hiring many key roles in 2024. Efforts are being placed on the importance of enabling this critical talent to ramp up quickly. HR is focused on developing a formal Cultural Integration Program we have named “Living LION” to welcome new leaders and acclimate them to LION’s culture, processes, and core beliefs. This new program aims to set the organization up for success by bridging the rich history and simultaneously growing for the future. 8

The HR team takes their roles as cultural stewards very seriously and impacts every site and business unit. They use LION’s core beliefs to set the tone when recruiting and when partnering with current employees. We have made some structural changes to the HR team so they will be able to achieve these goals more easily. I look forward to seeing my team grow as LION does.

OUR MISSION

Each and every day, we fulfill the personal safety, readiness and identity needs of our customers worldwide.

OUR PURPOSE

To ensure first responders and military personnel are ready for action.

CORE BELIEFS

FOSTERING CUSTOMER INTIMACY

DOING WHAT WE PROMISE

LEARNING FROM EVERYTHING AND EVERYONE

COLLABORATING TO DELIVER SOLUTIONS

RESPECTING ALL PEOPLE

EXPECTING NOTHING SHORT OF EXCELLENCE

BEING GOOD CORPORATE CITIZENS

ORGANIZATIONAL STRUCTURE

We are over 1,200 people dedicated to delivering personal safety, personal readiness, and identity products and services to first responders and military personnel around the world.

HUMAN RESOURCES

PROJECT MANAGEMENT OFFICE

INFORMATION TECHNOLOGY

CERTIFIED UNIFORMS

NON-CERTIFIED UNIFORMS

PPE LIFE CYCLE MANAGEMENT

FIRST RESPONDER TRAINING SOLUTIONS

FIRST RESPONDER TRAINING SOLUTIONS

TRAINING SERVICE

PPE

CBRN

CBRN

LION AMERICAS BU

LION EMEA (Europe, Middle East, Asia) BU

PPE LIFE CYCLE TRAINING SERVICE MANAGEMENT

TALES FROM LION TEAM MEMBERS

How our team members feel about their start at LION

“It’s been an immersive experience, and one that has been incredibly rewarding so far. To a person - everyone has been welcoming, excited to hear my story and ideas, and has been excellent in trying to collaborate with myself and my teams. I’ve loved diving into events and visits, like FDIC and our plants, and to see the pride our team has in our products. The passion for it is palpable, and it’s not something that is automatic, so that’s a testament to our people.”

– Joe Eiser, VP Operations

“My first 10 weeks with Starfield LION were better than I could have dreamed of. When I started looking for my next career move, I knew what I wanted. I wanted to work for a company that had a great vision, purpose, and culture. I feel like I won the job lottery. There is one thing that has stuck out, that I appreciate the most. It is how valued I feel here. I have not only been made me feel welcome, but I feel appreciated for my talents.”

– Nicole Davey, HR Manager

“It is amazing to me how much I have learned and how I have already seen so many of our Core Beliefs in action. Not only was I educated on our product features and benefits, but I’ve had indepth conversations about what our customers need and how our products deliver those needs. Curiosity was encouraged, feedback was welcomed, and right from the start I felt appreciated. I am very encouraged for the future of this organization. It is easy to wake up every day and be Ready for Action when we have such a wonderful mission serving First Responders!”

– Jeff Leiser, Account Manager

“I would say this has been unlike any other professional experience I’ve had in life. Everyone has been extremely helpful in training me and getting me up to speed on what we are trying to accomplish as a team. My favorite part is how close we all seem to be even though we are all in different parts of the country. I can’t wait to watch myself grow and continue to contribute to the greater goal of not only my team, but for the greater goal of LION as well.”

– Khalil Searcy, Account Manager

“It is clear to me that the LION culture is one that is poised for success and growth. A culture has been created that places the people of LION as the most important asset, and it truly shows. While many of the team members work remotely, I am always amazed at how the entire team gels together as ONE LION when we are together or working collaboratively. I feel honored to be a part of such a talented and dedicated team.”

– Matt Gardner, Marketing Director

“I have witnessed firsthand the company’s core belief system. This ethos is deeply ingrained within the fabric of this organization and has had a profound impact on my experience as a new employee. These core beliefs have shaped a vibrant and inclusive work environment, allowing me to thrive both personally and professionally. I am grateful to be a part of company that places such high value on its people and their collective potential.”

– Noman Qureshi, Director of Operations

LION Americas

STRATEGIC GROWTH FOR LONG-TERM SUCCESS

Mark T. Smith President, LION Americas

LION Americas had a strong year in FY23 in revenue and accomplishments. Revenue grew 30% over FY22. The Uniform group continues to deliver results and accounted for one third of the revenue growth. Each area of the Americas had significant wins that contributed to this improvement.

The inflation challenges creating the need for price escalations endured in FY23. The team in the field persisted in successfully managing these pricing issues. We are currently working with our customers to better forecast our business. As LION increases in size, we must collaborate with both our distribution partners and end users to understand their future needs and improve advance planning.

Training Products reported some exciting transactions in FY23. We were thrilled to deliver two training ready units each to returning customers Duke Energy and the Royal Bahamas Defence Force. Two other units are now part of the Houston Fire Department Training Facility. Houston is one of our model customers, utilizing all the LION portfolio. In Rensselaer County, New York, Class A, Class B and Digital props were installed into a training tower. This was the second such installation in the Albany area and a third is scheduled for FY25.

Fire Safety Trailers remained a popular item. The ability to configure these trailers in many ways with several training products and transport them to different sites for community

outreach makes them a valuable resource for fire departments.

The team worked hard to bring new departments into the LION family in FY23. We were excited to welcome Denver Fire Department and Dayton Fire Department and see both departments wearing LION turnout gear. It is particularly special to LION as a 125-year-old family run company founded in Dayton to be able to support and work with our hometown fire department.

Far from Dayton, LION expanded our presence in the vitally important Latin American market. For fifteen years, we have supplied Chile, our largest customer in the world, with gear. We are proud to welcome our newest customer in the LATAM market, Panama Fire Service. They are now wearing LION turnout gear, gloves, and hoods.

TotalCare® was a source of tremendous growth for LION Americas. We brought on the Loudon County Fire-Rescue (a Virginia suburb of Washington, D.C.) and renewed our partnership with Boston Fire Department. We are in the process of modernizing and remodeling our Canadian facility in order to invest in the Canadian market and meet the demands of the Toronto Fire Department.

We were able to resume LION University in 2023 allowing us to continue training our distribution partners. We have found that the most technically sound partners are the most successful partners. Post COVID, we have been able to enhance the curriculum of LION University to include products from all areas of LION Americas.

Last year, we focused on post-acquisition organization and alignment of our Uniform group. Out of a desire to best serve 8

our customers, we did an exhaustive review to understand how best to go to market. As a result, we launched a new sales design which has accelerated the growth of LION Uniforms in both fire and law enforcement. The team has hit and exceeded their goals and we have had wins with customers including Massachusetts State Police, New York State Police, Memphis Fire Department, Miami Dade Corrections and Rehabilitation Department and the Philadelphia School District.

Fiscal year 2023, as the first post COVID year, saw the renewal of in person ONE LION collaboration between Americas and EMEA on multiple levels of the organization. I am sure this work will pay off as the large Americas training solutions opportunity pipeline and the growth of global training products require closer collaboration to ensure we do not let capacity be a constraint to growth in Americas and globally.

As we begin 2024, I look forward to investing in the product and marketing side of our organization. I am confident that the investment we have made to grow our sales organization in the past few years has yielded great results. It’s time to turn our attention toward making LION the preferred and most recognized brand in public safety. The team takes the responsibility of supporting our first responders seriously and we want to ensure that they know we are here keeping them ready for action.

LION AMERICAS

LION EMEA

SETTING THE STAGE FOR GROWTH

Martin Joosen Vice President, Managing Director, EMEA

The war in Eastern Europe, supply chain issues and cost increases continued to cause business instability for LION EMEA, but the team remained strong in the face of these challenges and EMEA’s FY23 revenue grew by 33%.

The past year also brought physical growth to LION EMEA as the organization moved to the city of Tilburg. This new location in the Netherlands puts all aspects of EMEA business under one roof and has resulted in increased operational efficiency. Our new location will also make it easier to attract new talent as we continue to grow. The Mayor of Tilburg and the local Fire Chief attended the Grand Opening festivities in June and the team was proud to show their families the building where they now work.

Following the Grand Opening, EMEA invited dealers onsite for three days. Seventy-five people representing 30 dealer organizations from 24 countries were introduced to the new location, learned about new products and solutions, participated in scenario building as a form of training and built relationships. Attendees included the majority of the fifteen new dealers added to our portfolio in FY23, a third of which were Business & Industry dealers. This event would not have been possible at our previous location. The new building served as a showcase and

demonstrated to these partners that EMEA is growing and ready for the future.

Several organizational changes were made in 2023 that realigned departments to create separate management team leaders for engineering /operations and another for all customer facing activities. The latter department, the TotalCare Department, consists of project management, service, and training. The TotalCare department serves as the ambassador for the customer for the lifetime of the relationship, raising customer intimacy. This change has brought the needs of the customer to the forefront and will keep them in focus throughout the project.

2023 also saw the launch of the New Fire Training Technology (NFTT™) concept. This mixed approach of wood, gas, and LION’s exclusive Attack digital training panels has been prompted by the global desire to change to cleaner and safer fire training. NFTT reduces training’s carbonaceous footprint and eliminates toxic particles emitted during fire training. It is more cost effective, safer, and better for the environment. We have proven that using the NFTT approach, 75% of fire training can be successfully conducted without the use of carbonaceous materials

The team is currently delivering a new project in Northern Ireland. A fully equipped training site is being developed in Belfast. This combination of firehouses represents a warehouse area and will be used to simulate warehouse fires to offer that specialty training. We are also excited by the full opportunity pipeline with two large projects in Australia and China which we hope 8

to finalize in early 2024.

Fiscal year 2023, as the first post COVID year, saw the renewal of in person ONE LION collaboration between Americas and EMEA on multiple levels of the organization. I am sure this work will pay off as the large Americas training solutions opportunity pipeline and the growth of global training products require closer collaboration to ensure we do not let capacity be a constraint to growth in Americas and globally.

It was a challenging year for my team. I am very proud of how they approached the move to a new building and the large events that followed in a short period of time with grace and commitment. None of these tasks were supported by external resources and all were completed while performing other business as usual. It was a great example of LION’s core belief: Collaborating to Deliver Solutions. That is also felt in the year’s focus on ONE LION. As EMEA continues to grow, I am grateful for the support of my team and my colleagues and look forward to continuing these partnerships.

LION EMEA

LION OPERATIONS

INCREASING THE VELOCITY AND AGILITY OF MANUFACTURING

Joe Eiser Vice President, Operations

Operations overcame significant headwinds in 2023, including supply and capacity issues, system and warehouse transitions, and product redesign impacts. Through it all, the Operations Team has been driven and impactful, resulting in one of the best years of output LION has ever seen. The hard work from the Operations Team should be celebrated, and the accomplishments are many.

Safety is at the forefront of our priorities, and we want to continue to focus on driving awareness, providing training, and sending people home in the same condition as they came to work. There is nothing important enough to sacrifice our safety, regardless of urgency or need. Everyone at LION should be proud of the 12.5% reduction in Recordable Injuries across our entire organization. Operations is aiming for a 10% reduction year over year in the total recordable incident rate.

Expansion occurred throughout LION Operations in 2023. Berlin, Wisconsin increased over 20% in their total capacity. Dayton Manufacturing took on new products and projects and the Kentucky operation expanded for increased load. The Hazel Green Distribution Center was revamped through the Oracle Implementation and Elbeco optimization. As we ramp up to

meet growth in 2024, we will see more capital investment and continuous improvement to facilitate the ability to limit overtime and strain on our workforce.

As we enter 2024, we continue to focus on the key themes above in addition to several others, including quality, process development, tool sets and talent development. These are our operational priorities for 2024 and beyond.

LION’s focus is to arm our talent with the tools, processes, support, and training needed to be successful, and to do so through investment, enablement, care, and development. In Operations, we are working to support the ONE LION focus on change management by creating owners and accountability on the team.

There will be many continuous improvement projects, aimed at simplifying processes and providing clarity for decision making throughout the organization. We are also launching a Lean Program, which will provide training and project enablement across LION.

LION is investing heavily in augmenting the Operations Team in 2024 to support another year of double digit unit growth across the product lines. Roles are being added in many areas and a project has been created to focus on Inventory Management. This project concentrates on creating a more holistic approach to how we leverage supply chain across all products, markets, and facilities. 8

Retention in 2023 was significantly better, improving nearly 25% year over year at our Kentucky and Dayton sites. We are continuing to focus on being an employer of choice, addressing concerns from our team, providing excellent benefits, culture, care, and a safe environment, both physically and mentally. New and simplified attendance and time-off policies and new pay for performance structures are either completed or in motion, with the intention of creating more opportunities to recharge, earn more, and simplify the working experience.

While 2023 was a successful year, it was full of the need to focus on small problems. Our focus in 2024 is to drive foundational change across Operations and LION in general to better the work experience for all and to make the Customer Experience one that is a differentiator for LION. Much of the work ahead is identified and will take place over the next few years. We intend to build our organization for this future growth and to ensure that there are no constraints to operationalizing our long-term plans, while still focusing on improving our culture, employee experience, and our business processes.

OPERATIONS

LVI MILITARY LOGISTICS

ENSURING READINESS OF THE CUSTOMERS WHO DEFEND US

Jeremy Blackburn Vice President, LVI Operations

The LVI team did an excellent job managing expenses throughout Fiscal Year 2023 while facing low Material Release Order (MRO) volumes on both DLA contracts due to historically low Army recruiting rates. From an MRO perspective, the A3PL program suffered through the lowest volume since we began tracking these annual totals in FY06. Similarly, the Organizational Clothing and Individual Equipment (OCIE) program has not experienced MRO volume as low as FY23 since the program’s inception in FY14-FY16. We offset the impact of lower MRO volume challenges with focused operational expense management by our dedicated team, paying off with very strong end-of-year results.

Our Navy team excelled through a challenging year, transitioning three of five sites from Korber Warehouse Management System (WMS) to DPAS WMS. The entire team did an outstanding job, enabling the transition to happen efficiently and effectively. Unlike past cases, this WMS transition was managed completely by the LVI team with no government oversight or participation. By doing so, the team collectively and passionately demonstrates two of core beliefs: Doing What We Promise and Collaborating to Deliver Solutions.

As we look to continue FY23’s momentum, we are off to a good start. We are slightly ahead of our FY24 budget but will not become complacent. LVI will remain diligent and focused on managing our operational expenses as we look for MRO volumes to recover and drive higher revenue, delivering positive results.

FINANCIAL HIGHLIGHTS

FOCUSING ON THE CONTROLLABLE

Melissa Rowlett Vice President, Finance

Fiscal Year 2023 brought a healthy balance of challenges and opportunities to Finance. The team worked with the business units to mitigate inflation with price increases and smoothly execute those for our customers. The post-acquisition cash flow was managed and ultimately generated a positive result. We also improved the customer experience by enabling a simpler customer set-up process, delivering automatic monthly account statements as well as establishing standardized payment terms. We have projects on the horizon for 2024 to continue that work.

We realigned the accounting organization and hired some exciting talent which increased efficiency and collaboration. Additionally, we established Freight and Trade Compliance as a stand-alone department within Finance with good leadership and a focused goal. Centralizing the administrative functions of this department has provided an improved and more visible resource for those in the plants and our international operations allowing for more ONE LION collaboration.

The state of LION continues to be strong. Overall sales in FY23 came in above target and saw a growth of $65M from FY22. The Americas revenue grew 30% from last year with Uniforms

accounting for one third of that growth. EMEA’s revenue yielded a 33% increase. Our full year’s EBITDA was double that of the prior year.

In the coming year, our GL group will be restructuring and simplifying our chart of accounts. This will impact all of LION positively as it allows the entire organization to work smarter and collaborate more easily. Our payables and receivables teams will also continue to refine their processes and will work with the PMO to do so. The cost accounting group will work more closely with the continuous improvement team to assist and document planned cost savings.

Personally, I’m excited to collaborate with other departments and become more involved with the associates and their processes.

I look forward to learning from everyone and everything and developing relationships with our customers. I’m also looking forward to new treasury relationships as we leverage our outstanding performance to change our funding structure to reduce our cost of capital, favorably impacting the P&L.

As our company continues to grow, I’m eager to see LION build on the momentum of 2023 and propel us into the next chapter of our organization. I love our team and am really looking forward to continued collaboration and process improvements.

FINANCIALs

“Overall sales in FY23 came in above target and saw a growth of $65M from FY22”

“Our Revenue Goal for 2024 is to exceed 300 Million”

Innovation & Product Development

STRIVING TO DELIVER THE NEXT LEVEL OF EXCELLENCE

Karen Lehtonen Vice President, Global Innovation & Product Development

Innovation & Product Development continues to deliver game changing solutions to address the unmet needs of first responders. Despite dealing with a few distractions related to supply chain and product changes driven by the market, the team was able to take significant steps in the development of several products.

FY23 brought the return to business as usual for IPD. The ability to work in person with our partners again has reopened many avenues of collaboration. We have also been able to get back to the plants again to work side by side with Operations. This partnership during the product development and innovation process is critical and benefits both our teams and our customers.

In 2023, LION’s Personal Protection Council returned to in person meetings in the United States and expanded to include Latin America. Senior fire service professionals from Chile, Colombia, Argentina, Mexico, and Panama met in Panama City to discuss key issues impacting the fire service in this area and determine how LION could meet these needs. PPC feedback is critical to how LION’s product development team moves forward to address the health and safety of the firefighter. In 2024, we hope to add a PPC to focus on the needs of the Uniform Market.

The past year was full of great accomplishments for the Innovation and Product Development team. We developed and introduced the HyperFire™ digital training tool designed to create more versatile, complex, and realistic training scenarios and specifically tailored for use with the LION ATTACK™ Digital Fire Training System. This can be paired with a smoke generator and a digital nozzle or a live hose stream. In the Essentials area, we have developed a helmet that we are preparing to launch in FY24. This updated modern style helmet is lighter in weight, easier to clean and will include more options for eye wear and face protection.

LION’s product launch process received special attention from many different teams this year. The process was reorganized to improve and innovate the way we go to the market. Innovation & Product Development, Operations, the Project Management Office and the business units collaborated to focus on a more effective way to move products through the pipeline and ensure that our customers experience a smooth launch process.

LION was proud to partner with Washington States’ Central Pierce Fire and Rescue on their uniform program this past year. Our team had conversations with the customer to determine what they needed from their VersaPro™ gear and how LION could address those needs. Central Pierce even paid a visit to our Kentucky plant to express their gratitude and explain the importance of their actions to the employees there. 8

We will continue to focus on more gamechanging innovations in the coming year. The team is finalizing the Quickfire mixed reality system as a tool for fire extinguisher training. This system has been created for public education in the hopes of increasing this type of training in business and industry.

The team is preparing for the release of the NFPA 1970 standard for PPE, the latest edition for structural firefighting gear. This will bring an opportunity for improvements and the launch of more new and innovative solutions. Though recertifying to the new edition will be a labor-intensive challenge, it will give the team the chance to do what it does best. We look forward to collaborating to deliver new solutions and innovating to continue to meet the needs of our customers and keep them ready for action.

INNOVATION

PROJECT MANAGEMENT

SUPPORTING COLLABORATING TO DELIVER SOLUTIONS

Misty Boyd Director, Enterprise Project Management Office

Successful continuous improvement does not happen by chance, it requires purposeful effort. The Enterprise Project Management Office (ePMO) continues to support LION improvement projects through driving thoughtful project definition and agile project management that drives decisive action. In Fiscal Year 2023, we successfully managed thirty-seven projects to completion. While this is a lower number of projects than in previous years, the complexity of projects has increased as LION recognizes the importance and benefits of the project structure.

As the Office focused on the Uniform business Oracle Integration and predecessor projects, we supported fifteen temporary project managers in their work. Our introduction of standard project management templates and automated reporting helped these temporary project managers to be efficient and effective in their work. We have also added a dedicated Business Analyst resource to the team. This role manages the collection, documentation, testing and implementation of user requirements and is integral to project success. We are very excited to see how this new resource will help us focus efforts across all functional areas in FY24. This resource should streamline efforts and increase our collaboration on projects in the future.

Innovation is at the heart of LION’s purpose. Last year saw the startup of Product Launch portfolio governance to the ePMO. This portfolio focuses on the collaboration and communication among the sales, marketing, IPD, and product management teams, to ensure our innovations are introduced to customers with the greatest chance for success by applying project management to the process. This project management process has been active for just a few quarters; we have many launches in progress for FY24 and are helping to focus strategy conversations for future growth.

Our biggest challenges in FY23 have also been our greatest opportunities to learn. All but one predecessor project has been closed, and through this work we have discovered and overcome the many overlapping strategic complexities to an Oracle Integration. This project will not only implement a ONE LION system but will improve LION’s productivity and functionality.

By addressing our technical gaps and taking the time to do it the right way, we are confident that the Uniform business Oracle Integration will be complete in FY24. The Oracle integration is an opportunity for LION to create efficiencies by operating in one system for customer and order management through shipping and invoicing. This high priority program also brought with it resource constraint challenges as many key Subject Matter Experts were required across multiple predecessor projects, restricting the time they could devote to each. The team focused on collaborating to develop and deliver sound solutions, 8

involving additional resources as needed. This has had the added benefit of training additional team members to fulfill these project roles in the organization.

Looking forward to 2024, the ePMO is excited to lead LION in strategic projects that have been identified and added to the backlog for post-Oracle Implementation. Later in FY2024, we will turn to system efficiency projects to streamline and automate processes. As our capabilities and transparency are recognized and appreciated, we continue to expand the use of formal project management into other areas of the company. This strong foundation will only improve as we continue to collaborate with our team members in pursuit of nothing short of excellence.

INFORMATION TECHNOLOGy

EVOLVING OUR TECHNOLOGY TO STAY READY FOR ACTION

Apryl Van Oss Vice President, Information Systems

In 2023, the Information Technology team was realigned to better support LION. I approached this change using several guidelines. Knowing that IT is critical to the success of LION, the team must proactively take the initiative to address challenges and find solutions. Innovation is a core element in LION’s DNA and IT can lead the charge internally by embracing innovation and optimizing our systems and processes to be at the core of LION’s strategy. Finally, a strong focus on security and improved IT governance will help us protect and enable LION’s future.

With these principles in mind, IT is now structured around four pillars: Infrastructure, Security, Support and Technology. These four pillars seamlessly connect with the Plan, Build, Run framework that IT has been using for several years to support the team. The team is well prepared to optimize LION systems and processes in order to drive organizational growth, efficiency, and innovation in 2024.

We are keeping our customers and stakeholders at the forefront of our activities. We have made a commitment to solution technology holistically. Adding this strategic focus to understanding the business needs of each LION partner will

allow IT to put long-term solutions in place that remedy an entire situation at once.

This change has offered the opportunity for IT to be a stronger partner within LION. We are collaborating with the Americas and updating systems to speed up the order process and support the simplification of our order to cash flow. We continue to work with the rest of the organization on the uniform business Oracle Integration. This challenging project consumed the majority of our resources but offered one of our biggest accomplishments in 2023.

In the coming year, we will look beyond the Oracle Integration to strengthen the foundation of IT as we continue to build our infrastructure to support our growth, provide a secure environment and begin a journey to modernize and optimize systems and data. Supported by last year’s realignment and redirection, IT is transforming from a tactical, complex team to a simplified, innovative one that focuses on the customer. The new approach will result in a cohesive, well-governed organization that can easily modernize and optimize our systems.

In 2024, the team will concentrate on some specific areas. Once the uniform business Oracle Integration is complete, we will seek to optimize Oracle by developing a plan of action for a modernization effort. Modernizing Data Management and Business Intelligence and improving master data management will also be focuses. We are eager to look for opportunities to 8

upgrade and refresh the IT infrastructure. Finally, we will prioritize improving IT governance through maintaining and enhancing systems and processes. Each of these actions fulfills the team’s 2024 theme of strengthening IT’s foundation to enable LION’s strategic initiatives.

2023 was a busy and productive year for IT. Our exposure to a greater number of collaborators has yielded solutions that are broader and more strategic. We have learned from our challenges and look forward to using these findings to help our partners and customers find holistic, long-term ONE LION solutions.

INFO TECH

CORPORATE CITIZENSHIP

GIVING BACK TO THE COMMUNITIES AND INDUSTRIES IN WHICH WE WORK AND SERVE

Hayley Tincu Vice President, Marketing & Customer Experience

Giving back is an integral part of the LION culture, and being good corporate citizens is one of our signature core beliefs. The year 2023 was no exception as LION continued its long and generous history of giving back to the industries we serve and the communities in which we operate.

Our work to assist underequipped first responders around the world, as well as first responders globally who may be dealing with unprecedented threats and events, continues through our LION Foundation. This past year, we were able to put in motion efforts to refurbish hundreds of sets of structural firefighting turnout gear that will be supplied to firefighters in Cali, Colombia and Matanza, Argentina. Our partnership with Fire Outreach of Houston, a charitable arm of the Houston Fire Department, made this donation possible. Also in 2023, LION was able to support the Israel Defense Forces with a donation of more than 13,000 units of uniforms, base layers, and masks, valued at more than $100,000. We collaborated with M.G.M Import & Marketing LTD in Petach-Tikva, Israel, to distribute the items in support of these troops.

Our continued support of the Firefighter Challenge soared to new heights this year. A program of the First Responder Institute, this

501(c)(3) tax-exempt organization is focused on inspiring and transforming the health and well-being of first responders. The Firefighter Challenge launched an all-new format and league in 2023; it is the first sporting league of its kind exclusively for firefighter athletes around the world. Our ongoing commitment to this cause is showcased with the redesigned LION Arena of the Brave challenge course, which helped bring new energy and excitement to the Firefighter Challenge League.

As a longtime partner of the National Fallen Firefighters Foundation (NFFF), this year was an especially exciting one in our hometown of Dayton, Ohio, as we became the title sponsor of the now-named LION Gem City 9/11 Memorial Stair Climb. This stair climb, which took place at the University of Dayton Arena, was another great opportunity to support our local first responders while also engaging our Dayton-based LION employees to honor all the heroes who lost their lives on September 11, 2001. Additionally, we support the NFFF in many ways throughout the year, including participating in the annual National Fallen Firefighters Memorial Weekend.

Our employees worldwide know the impact we can achieve from giving back. All our LION locations and facilities engage in local efforts throughout the year to use our brand, our resources, and our influence to contribute to the greater good. In 2024, we will continue to look for innovative ways to support our communities and our first responders in all markets, including the fire service, law enforcement and military, in ways that are meaningful and impactful.

Stephen Schwartz Chief Executive Officer

Andrew Schwartz

Corporate Counsel & Chief Procurement Officer

Karen Lehtonen

Vice President, Global Innovation and Product Development

Jon May Senior Vice President, Human Resources

Joe Eiser Vice President, Operations

Mark Smith President, LION Americas

Martin Joosen

Vice President, Managing Director, LION EMEA

Melissa Rowlett Vice President, Finance and Accounting

Apryl Van Oss Vice President, Information Systems

Dawn Conway CEO/President Boost Engagement, LLC

Beth Ferris CFO, Belcan

Jan Willem van der Werff Founder, Lockwood Hill Associates

Al Wofford President & CEO, CDO Technologies

Joe Morgan CEO, siY, LLC

Beth Haas Partner, Cyprium Partners