Investor Presentation

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(NYSE American: ACU)

Investor Presentation

January 2021

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Forward-looking statements in this report, including without limitation, statements related to the

Company’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including the impact that the global COVID-19 pandemic has had and will continue to have on the Company’s business, operations and financial results. These include the severity and duration of the pandemic, including whether there is a

“second wave,” the effect of measures taken by the Company to limit the spread of the disease at our offices and distribution centers, further actions that may be taken by governmental authorities or by businesses or individuals on their own initiative in response to the pandemic, the pace of recovery when an effective vaccine is widely available or when the pandemic otherwise subsides and the heightened impact the pandemic has on many of the risks described herein, including without limitation risks relating to the on-going world-wide economic downturn and disruptions in our supply chain,, any of which could adversely impact the Company’s ability to manufacture, source or distribute its products, both domestically and internationally. These risks and uncertainties further include, without limitation, the following: (i) changes in the Company’s plans, strategies, objectives, expectations and intentions, which may be made at any time at the discretion of the Company; (ii) the impact of uncertainties in global economic conditions, including the impact on the Company’s suppliers and customers; (iii) changes in client needs and consumer spending habits; (iv) the impact of competition, (v) the impact of technological changes including specifically the growth of online marketing and sales activity; (vi) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; (vii) the Company’s ability to effectively manage its inventory in a rapidly changing business environment; (viii) currency fluctuations; (ix) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; and (x) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

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NYSE American: ACU

Leader in innovative safety solutions and cutting

technology

On track for 10th consecutive year of record sales

Driving growth through innovation

Premier and diversified customer base

Successful history of acquisitions

Strong balance sheet enhances ability to take advantage

of opportunities

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2

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4

5

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Corporate Overview

▪ Growth fueled by a combination of brands, technology and expanding distribution

▪ Successful series of opportunistic acquisitions in two adjacent areas

▪ Leverage growth through shared technologies, brand collaboration and

cross-selling that drive value across ACU’s platform

2011

1995 2000

First Aid

Kits Industrial _{First Aid}

F

irst

Aid

&

Safety

Acme Medical Instruments & Packs Founded 1867 2014 Industrial First Aid 2017 Industrial Safety 1995 Scissors & Industrial Shears Knives

Cu

tt

in

g

So

lu

tion

Titanium coating 2002 2004 2007 2012 2015 Rulers 2016 Fishing Tools Sharpeners 2020 Personal / Industrial First Aid

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Acquisition of First

Aid Central

▪ Canadian first aid & safety supplier

acquired in January 2020

▪ Complete line of first aid kits, refills &

safety products for a broad range of

customers

▪ Expanded ACU’s distribution

capabilities, product offerings and

online presence

▪ 2019 revenues of C$4.3 million

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Acquisition of

Med-Nap

▪ U.S. first aid & safety supplier

acquired in December 2020

▪ Provides world-class antiseptic

prep pad and towelette solutions

▪ Adds an FDA-registered

manufacturing facility and new

product lines to ACU

▪ 2020 revenues of approx. $4.9M

and EBITDA of approx. $1.0M

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Impact of COVID-19

▪ Shipping record levels of a wide array of products

▪ Fishing tools, hunting knives, craft scissors, sharpening tools,

first aid & safety products

▪ Operating safely throughout the pandemic

▪ Managing challenges of worldwide supply chain

▪ Operating domestic and international production and

distribution centers

▪ Sales and office associates successfully working remotely

▪ Developing new products to meet customers’ new needs

▪ Improving content online and enhancing online search and contact

capabilities

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Acme United International Footprint

China:

• Guangzhou: Engineering, quality control, logistics • Yang Jiang: Production • Ningbo: Quality control,

logistics

Hong Kong

• HQ of Acme United (Asia Pacific)

Canada

• Toronto, ON: HQ

• Mt. Forest, ON: Distribution center

• Laval, QC: First Aid Central production

Europe

• Solingen, GY: HQ and distribution

United States

• Vancouver, WA: First Aid production

• Santa Ana, CA: Spill Magic production

• Rocky Mount, NC: Distribution center

• Smyrna, TN: Spill Magic production

• Fairfield, CT: Corporate HQ

• Marlborough, MA: DMT Production

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Expanding Distribution

Diversified distribution network;

strong growth in e-commerce channel

Hardware, Industrial 6% Office 59% Sporting Goods 1% Mass Market 33% E-Commerce 1%

2010

Sporting Goods 3% Hardware, Industrial 32% Office 16% Mass Market 33% E-Commerce 16%

1H 2020

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Net Sales

$ Millions

On track for tenth consecutive year of record sales in 2020,

driven by new products and market share gains

73.3 84.4 89.6 107.2 109.8 124.6 130.6 137.3 142.5 123.1

$0

$18

$36

$54

$72

$90

$108

$126

$144

2011 2012 2013 2014 2015 2016 2017 2018 2019 9M20

+13%

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EBITDA

$5.3 $6.4 $7.05 $9.0 $9.2 $10.8 $10.7 $10.6 $11.8 $11.3

$0

$2

$4

$6

$8

$10

$12

$14

2011 2012 2013 2014 2015 2016 2017 2018 2019 9M20

$ Millions

Strong and growing EBITDA

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Net Income

$2.8 $3.5 $4.0 $4.8 $4.8 $5.9 $5.3 $4.6 $5.5 $6.1

$0

$1

$2

$3

$4

$5

$6

$7

2011 2012 2013 2014 2015 2016 2017 2018 2019 9M20

+33%

$ Millions

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Earnings Per Share

0.91 1.13 1.22 1.36 1.3 1.64 1.42 1.3 1.6 1.75

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

$1.75

$2.00

2011 2012 2013 2014 2015 2016 2017 2018 2019 9M20

+33%

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Dividend History

0.26 0.28 0.31 0.34 0.37 0.4 0.43 0.44 0.48 0.48

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

$0.45

$0.50

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Strong and consistent dividend growth.

Dividend increased to $0.52 annually in 2021.

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Smart Compliance Complete

▪ Physical safety solution

pairs with virtual

SafetyHub

▪ Complete safety

solution center

▪ Preparing for

advancements in IoT

▪ Push-to-open feature

▪ _{Gaining placement at}

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SafetyHub App Overview

▪ Fast, easy way to requisition and manage

safety items

▪ Set push notifications to check cabinet, perform

physical inventory and establish annual budgets

▪ Creates an OSHA log and ensures compliance

▪ Manages facility items that need to be

replenished, serviced or calibrated

▪ SmartData provides business intelligence and

benchmarks consumption

Targeting $700MM

Van Service Market

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Glide Technology Scissor Expansion

▪ Cascade technology down to

mid-tier scissors

▪ Westcott tradition of

first-to-market innovations

▪ Glide first mechanical

technology in 50+ years

▪ Composite fulcrum and

patent-pending utility patent

available across premium

cutting technologies

▪ Adjustable tension for cutting

materials or user preference

No tool adjustment

Low friction proprietary fulcrum

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Specialized Ceramic Cutters

▪ Continue penetration into

industrial cutting

▪ Multi-depth settings

▪ Premium features and retail

price points

▪ Sliding handle, utility patent

pending

▪ Rear depth dial, utility

patent pending

Guide cuts tops off boxes

Sliding handle

General purpose cutter

Dial-in depth setting Multi position depth

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Craft Market Expansion

̶

Trade up the customer with

unique technologies

̶

Improve profitability with

uniqueness and innovation

̶

Improve customer loyalty

̶

Build-the-basket with

coordinated colors and patterns

̶

Expand into adjacent product

▪ Continue the strong growth in Sewing

and Paper Crafting categories

▪ Leverage retail partnerships for

growth in office and BTS

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DMT Sharpeners

̶

Highest concentration of

diamonds

̶

Most consistent diamond

dispersion

̶

Flattest sharpening surface

̶

World’s finest sharpeners

▪ Best hand tools for

sharpening in the industry

▪ Expanding in the home and

culinary markets

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Oversize

Bow

▪

Black titanium blades

▪

Serrated carbide edge for

superior edge retention

▪

_{Oversized bows for leverage and}

comfort

▪

_{Knife edges for precision cutting}

▪

_{Available in 8”, 9”, and 10”}

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Growth Drivers - First Aid & Safety

▪ New first aid programs at large

industrial, food service and

other distributors

▪ Growing refill business

▪ Acquisition of First Aid Central

and Med-Nap in 2020

▪ Expanding product placement of

Spill Magic

▪ Cross sell all safety products into

customer base

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Growth Drivers - Cutting

▪ Leverage technologies

▪ Patented titanium-nitride coatings

▪ Proprietary non-stick coatings

▪ Safety cutting tools with ceramic

blades

▪ Antimicrobial plastics for school and

office

▪ Enhanced carbonitride-titanium

industrial tools

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Financial Goals

▪ Generate solid revenue growth

▪ Drive e-commerce

▪ Continue developing and introducing new products

▪ Increasing inventory to reduce supply chain risk and take

advantage of opportunities

▪ Drive ongoing profits and reduce debt to fund future

acquisitions and growth

▪ Continue ACU’s history of regularly increasing dividends

▪ Seek additional tuck-in acquisitions

Acme United is well positioned to deliver

strong financial results and long-term growth

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