Investor Presentation

| May 2020

Protect Your People TM

NASDAQ: LAKE

Christopher J. Ryan, Executive Chairman

Charles D. Roberson, President and Chief Executive Officer

Safe Harbor Statement

With the exception of historical information, the statements set forth in this presentation include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risk and uncertainties. The company wishes to caution that a number of important factors could cause actual results to differ materially from those forward-looking statements. These and other factors could cause actual results to differ materially from those in any forward-looking statements which are discussed in this presentation. Please see Lakeland Industries' SEC filings on Forms 10-K and 10-Q for important information about the Company and related risks. The Company disclaims any obligation to update its forward-looking statements.

Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles (GAAP), the Company uses the following non-GAAP financial measures: EBITDA, Adjusted EBITDA and Free Cash Flow. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP financial measures used by the Company in this presentation may be different from the methods used by other companies. For more information on the non-GAAP financial measures, please see the Reconciliation tables in this presentation.

2

Key Statistics

Q4FY20 Results

  • Net sales of $28.2M, up 13% from $25.0M in Q4FY19
  • Gross profit of $10.6M, up from $6.9M in Q4FY19
  • Gross margin of 37.7%, compared to 27.7% in Q4FY19
  • Opex of $8.9M, compared $8.4M in Q4FY19
  • Operating profit of $1.7M, up from loss of $(1.5)M in Q4FY19
  • Net income of $1.2M, up from loss of $(1.9)M in Q4FY19
  • EBITDA* of $2.3M, up from loss of $(0.9)M in Q4FY19
  • Cash of $14.6M at 1/31/20, up from $9.1M at end of 1/31/19
  • Total debt of $1.2M at 1/31/20, down from $1.3M at 1/31/19

Market Stats

Share Price (as of 5/13/2020)

$12.87

52-Week High / Low

$28.00 / $9.70

Average Daily Volume (3M)

1,290,000

Diluted Shares Outstanding1

8.0 million

Market Capitalization1

$103.0 million

Debt (as of 1/31/2020)

$1.2 million

Cash (as of 1/31/2020)

$14.6 million

Enterprise Value

$89.6 million

Financials & Valuation

LTM Revenue3

$107.8 million

LTM EBITDA3

$7.5 million

LTM Net Income3

$3.3 million

LTM EPS3

$0.41

EV/LTM Revenue

0.9x

EV/LTM EBITDA3

12.4x

P/E (LTM)3

32.0

NOL Carryforward3

Approx. $18.0 million

Book Value3

$85.4 million

One Year Stock Performance

Source: Etrade

1Treasury stock method

2Source: Bloomberg/Yahoo

3As of 1/31/2020

* EBITDA is a non-GAAP figure with reconciliation provided herein.

3

Uniquely Positioned to Respond to Global Crises

Crisis

Ebola

Bird Flu

CoVID-19 (Coronavirus)

LAKE Revenue Impact

$4.6 million (FY16)

$4.1 million (FY16)

TBD (FY20/21)

LAKE Role

Supplied suits to the United

Supplied protective clothing to

Supplier to hospitals and industrial

Kingdom Government

DiVal Safety Equipment

customers globally

Situation Timeline

August 8, 2014: Ebola

April 11, 2015: Avian Flu

First shipments in last 2 weeks

declared an "international

confirmed in a commercial

of FY20 Q4 = $1M sales

health emergency"; death toll

chicken operation in WI

PPE for U.S. co's in China

reaches 1,000

April 20 - May 1, 2015: WI,

Feb. 14, 2020: Asia 12-hour

September 11, 2014: LAKE

MN, IA declared state of

announced increase in

emergency

shifts; modified as needed

manufacturing capacity to

May 5, 2015: US authorities

March 13, 2020: Expanding

meet demand for safety

products

approved $330 million in

sealed seam capacity by 30%

emergency funds to fight spread

April 15, 2020: Certain products

contracted out through August

LAKE Product Use

LAKE Ebola Protection Suit

LAKE GB medical certified suit

LAKE Bird Flu Protection Suit

4

Coronavirus (CoVID-19) Update

  • China Environment
    • Largely open for business
    • Logistics - ocean freight remains challenging but improving
    • Raw materials available: prices are holding steady
    • Work force mobility returning
  • Global Environment
    • Demand shifting to Europe, Russia and Americas
    • Large PPE orders have been rejected globally for not meeting standards (none from LAKE)
    • Logistics remain in focus
  • Lakeland Response
    • Service the emergency market only to the extend that we have capacity over and above our strategic growth plans based on normal operating conditions
    • Added capacity; constant management of supply chain
    • Utilize more expensive raw materials only to the extent that customers will accept that additional cost

5

Coronavirus (CoVID-19) Impact

  • Revenue
    • Impact will be spread over Q4FY20 and FY21
    • Selling through distribution limits transparency into application of sales
  • Manufacturing
    • China returned to work 4 days early and went to maximum operating schedule (start up was not delayed)
    • Weifang facility is operating normally under Lakeland control
    • Feb. 14, 2020: India and Vietnam ended curtailed operations and went to maximum schedules (12 hours/day; 7 days/week); modified as needed
    • Vietnam has returned to hiring
    • Accelerating sealed seam manufacturing capacity increase in Vietnam (30% increase in total company capacity) that wenton-line through May 2020 rather than January 2021
  • Supply Chain
    • Currently no supply issues although logistics can be challenging
    • Price increases from some suppliers continues; use of multiple suppliers partially mitigates the impact of these increases

6

LAKE Product Examples

LAKE Cleanroom Suit

LAKE Homeland Security Suit

LAKE Disposable Suit

LAKE Chemical Protection Suit

7

Leading Protective Clothing Manufacturer

Product Offering:

% of Sales1

Sales by Geography:

Industries Served:

Disposables

Chemical Suits

Wovens

Fire/Reflectives

Gloves

50%

21%

11%

15%

3%

Domestic:

52% of FY20 net sales

International:

48% of FY20 net sales

  • Chemical/petrochemical
  • Basic industries: auto, steel, construction, electric & gas utilities
  • Healthcare, food chain & high tech
  • Government, fire department, public safety and public agencies including DoD, CDC & DEA

Employees:

1,800 international employees (approx.)

120 domestic employees (approx.)

Founded:

1982

1As of 1/31/2020.

8

Innovative Proprietary Products

LAKE utilizes proprietary textiles and designs targeted to market needs and demands

New Product Focus:

Patents:

Supply Chain:

Certifications:

Manufacturing:

Testing:

  • Proprietary high margin products for stable and recurring end markets (e.g. utilities, pharmaceuticals)
  • 20 patents & 1 patent in application1
  • 56 trademarks and 6 trademarks in application1
  • LAKE maintains strong control of its supply chain includingmulti-sourcing raw materials and having cut/sew operations performed by employees instead of contractors
  • Owning our manufacturing, LAKE has control of supplier relationships
  • Products are certified under relevant standards and certificates domestically and abroad
  • Customers recognize certification as sign of quality
  • All established LAKE manufacturing facilities are ISO 9001 or ISO 9002 certified
  • New facilities in Vietnam and India
  • Manufacturing resilience based on footprint & supply
  • Quality control lab in China and the USA
  • Chinese facility able to perform medical and industrial sterilizations
  • Installed test lab in Alabama facility

1As of 1/31/2020.

9

Optimized Global Presence

Manufacturing Sites

Sales Presence

Decatur, AL Facility

Anqui (Weifang), China Facility

Manufacturing Sites

Decatur, AL (HQ)

Jerez, Mexico

Anqui (Weifang), China

Buenos Aires, Argentina

New Delhi, India

Nahm Dinh, Vietnam

Sales Presence

Beijing, China

Chongqing, China

Decatur, AL (HQ)

Europe (France, Germany, Netherlands, Poland, Spain, U.K.)

Jerez, Mexico

Melbourne, Australia

Moscow, Russia

New Delhi, India

Shanghai, China

South America (Argentina, Chile, Colombia, Ecuador, Peru)

Southeast Asia (Malaysia, Thailand, Vietnam)

Toronto, Canada

Ust-Kamenogorsk, Kazakhstan

10

Increasing Manufacturing Capacity

  • Deploying capital investment in new manufacturing facilities to build growth capacity
  • India and Vietnam locations are now online and close to targeted growth markets
  • Low cost structures in new locations are accretive to gross margins
  • COVID-19
    • Ability to increase staffing in Vietnam and India by estimated 50% for disposable garments
    • Accelerated previously planned expansion of normalized sealed seam capacity by 30%-- 9 months ahead of plan
    • Prioritizing manufacturing for regular industrial customers, allocating excess or additional capacity toCOVID-related demand
    • Order backlog at 4/15/20 has filled manufacturing capacity through July/August for some products

Anqui (Weifang), China Facility

Jerez, Mexico Facility

New Vietnam Facility

Pilot India Manufacturing Facility

Vietnam Manufacturing

11

Strong Business Model

Business Area

Key Characteristic

Products

Proprietary / value-added / higher margin

COGS / Raw Materials

Multi-sourced, lower priced fabrics than DuPont

Gross Margin1

35.2% and expanding

Sales Channels

Distributors and Key End Users

Customer Breadth

Diversified

Number of Products

>800

Sales Presence

21 countries

Geographic Reach

Global

Manufacturing Locations

U.S., China, Mexico, LATAM, India, Vietnam

1As of 1/31/20 for TTM.

12

Blue Chip Customers

Distributors

End Users

13

Favorable Industry Dynamics

Lakeland operates in a large and growing industry…

Industry Tailwinds

Protective Clothing Market1

($ in billions)

  • Global Economic Growth

Global Oil Prices in Check

  • Strong Increase in Manufacturing
  • Robust Demand from Developing Industries
  • Increased Global Focus on Safety

1Source: Markets and Markets

14

Strong Presence in Large & Fragmented U.S. Market

Lakeland's US Sales are in excess of 50% of Total Sales in FY2020

Source of Graphic: Houlihan Lokey

15

Positioned for Further International Growth

Revenues

Leveraging its worldwide operating capabilities, LAKE plans deeper penetration into

existing markets and selective expansion into new geographies…

  • Led by multinational corporations, developing countries are increasingly adoptingOSHA-like standards
  • LAKE is able to offer its U.S. product range in international markets for little incremental costs
  • The Company recently entered South Korea, Indonesia, Malaysia and Vietnam and is hiring aggressively in these new markets
  • Diversified product lines and geographic presence provide for low seasonality

Significant Opportunity in Developing Markets1

Sales Presence by Geography

Inception

Traction

Growth

Maturity

Decline

Region

Sales People2

U.S.

28

Europe

North America

Asia Pacific

27

Latin America

10

Latin America

EEC

7

Asia Pacific

Mexico

11

Middle East & Africa

Canada

5

Russia / Kazakhstan

4

India

8

Time

  1. Source: Markets and Markets:Protective Clothing Market - Global Forecast to 2020.
  2. As of 9/18/19, including Sales and Sales Support

16

Growth and Performance Improvement Initiatives

  • Investments in digital transformation
    • ERP implementation
    • Launch of new websites for nine global locations
    • Amazon platform in multiple countries
    • Online marketing strategies
  • Investments in manufacturing
    • Vietnam (now largest facility for the Company)
    • India (planning major expansion in future for current pilot plant)
    • Short run pilot plant for high margin products
  • Investments in product development
    • Higher margin segments:
      • Cleanroom suits for Big Pharma
      • Electric arc protective apparel for Utilities
  • 2Q20 results began reflecting above measures

17

LAKE Shares Trade at Discount on Improving Financials

Attractive Valuation*

LAKE Improving Performance

LAKE Trades at 9.2x EV/EBITDA Based on 4Q20 Annualized Results

Revenue Growth

Gross Margin

EBITDA** Margin

Source of Chart: Houlihan Lokey/Capital IQ, as of 5/15/20

  • Valuation assumes LAKE share price on 4/13/20
  • EBITDA is anon-GAAP financial measure; reconciliation provided herein.

(1)

Excludes Delta Plus, Koken and Shigematsu as guidance not yet available.

18

(2)

Excludes Riken Keiki and Blackline Safety as guidance not yet available.

Significant M&A Activity

Notable Transactions

Oct. 2015

EV / Revenue: 3.4x; EV / EBITDA: 19.5x

Mar. 2015

EV / Revenue: 2.2x; EV / EBITDA: 9.0x

Nov 2013

EV / Revenue: 2.1x; EV / EBITDA: 9.7x

Source: Houlihan Lokey as of 5/15/20 and/or SEC public filings, company press releases and other publicly available information.

19

Seasoned Management Team

Management Bios

Years at LAKE

Christopher J. Ryan - Executive Chairman

Upon his appointment as Executive Chairman in February 2020, Christopher J. Ryan served as our Chief Executive Officer and

President since November 2003, Secretary since April 1991, and a director since May 1986. Mr. Ryan was our Executive Vice

President - Finance from May 1986 until becoming our President in November 2003. Mr. Ryan also worked as a Corporate

Finance Partner at Furman Selz Mager Dietz & Birney, Senior Vice President-Corporate Finance at Laidlaw Adams & Peck, Inc.,

33 years1

Managing-Corporate Finance Director of Brean Murray Foster Securities, Inc. and Senior Vice President-Corporate Finance of

Rodman & Renshaw, respectively, from 1983 to 1991. Mr. Ryan has served as a Director of Lessing, Inc., a privately held

restaurant chain based in New York, from 1995 to 2008. Mr. Ryan received his BA from Stanford University, his MBA from

Columbia Business School and his J.D. from Vanderbilt Law School.

Charles D. Roberson - President & CEO

Upon his appointment as President and CEO as well as to the Company's Board of Directors in February 2020, Charles D.

Roberson served as our Chief Operating Office since 2019. He served as our Senior Vice President International Sales since

March 2009. Mr. Roberson joined our Company in 2004 as Technical Marketing Manager and later served as International Sales

15 years

Manager. Prior to joining our Company, Mr. Roberson was employed by Precision Fabrics Group, Inc. as a Market Manager from

1995 to 2001 and as a Nonwovens Manufacturing Manager from 1991 to 1995. He began his career as a manufacturing manager

for Burlington Industries, Inc. in its Menswear Division from 1985 to 1991.

Allen E. Dillard - Chief Financial Officer

Appointed CFO of Lakeland in July 2019, Allen E. Dillard's career spans three decades of senior-executive financial, operational

and organizational leadership experience. For the preceding 16 years he served as CEO, CFO and COO of 2 middle market B-to-

B companies, while also serving as a Board of Director for one of the companies. Earlier, he served as Treasurer and Director of

1 year

Corporate Communications at Wolverine Tube, Inc. (NYSE: WLV). Previously he served as Corporate Vice President, Treasurer

and Chief Financial Officer of Nichols Research Corporation, a NASDAQ-listed company which was successfully sold to a larger

competitor. Mr. Dillard began his career as a public accountant with Ernst & Young where he worked for nearly a decade. He is

a certified public accountant and a graduate of the University of Alabama at Birmingham.

Daniel L. Edwards - Senior Vice President Sales for North America

Daniel L. Edwards has been our Senior Vice President Sales for North America since March 2017 after most recently serving as

14 years

our Vice President of USA Sales since March 2013. Mr. Edwards has been employed by us in various capacities since joining

Lakeland in 2005, including as our National Accounts Manager and Eastern Regional Sales Manager. Prior to joining our

Company, Mr. Edwards was a Senior Market Manager at Precision Fabrics Group, Inc., where he began his career in 1990 and

held various roles at that company in manufacturing, technical and quality management.

1Includes years serving on the LAKE board.

20

Investment Highlights

1

2

3

4

5

6

7

High Growth from Proprietary/Value Added Products

Strong Growth Masked by Wind Down of DuPont & Brazil Businesses

Flexible Worldwide Operating Capabilities

Highly Leveragable Cost Structure including Global Manufacturing Sites

Leader in Product Quality and Garment Innovation

Certifications and Patents Demonstrate Product Quality

Blue Chip Customer Base

Large Customers with No Significant Customer Concentration

Diversified Product Offerings

Product Suite Covers Protective Apparel Industry

Favorable Market and Industry Dynamics

Global Industry Poised for Further Growth

Strong Management Team and High Insider Ownership

Deep Industry Knowledge and Experience

21

Protect Your People

Financial Review

22

Income Statement - Fiscal Year

($ in thousands)

Year Ended January 31,

2020

2019

Net sales

$107,809

$99,011

Cost of goods sold

69,912

65,105

Gross profit

37,897

33,906

Operating expenses

32,021

30,341

Operating profit

5,876

3,565

Other income (expense), net

(7)

41

Interest expense

(116)

(125)

Income before taxes

5,753

3,481

Income tax expense

2,472

2,022

Net income

$3,281

$1,459

Net income per common share:

Basic

$0.41

$0.18

Diluted

$0.41

$0.18

Weighted average common shares outstanding:

Basic

8,005,927

8,111,458

Diluted

8,037,019

8,170,401

23

EBITDA Reconciliation - Fiscal Year

Year Ended January 31,

2020

2019

Net Income to EBITDA

Net Income

$3,281

$1,459

Interest

116

125

Taxes

2,472

2,022

Depreciation and amortization

1,645

965

Other income (expense)

(7)

41

EBITDA

7,521

4,530

EBITDA to Adjusted EBITDA

(excluding non-cash expenses)

Equity compensation

(403)

744

Adjusted EBITDA

$7,118

$5,274

24

Balance Sheet - Fiscal Year

($ in thousands)

ASSETS

January 31,

2020

2019

Current assets

Cash and cash equivalents

$14,606

$12,831

Accounts receivable, net of allowance for doubtful accounts of $497 and $434

at January 31, 2020 and 2019, respectively

17,702

16,477

Inventories

44,238

42,365

Prepaid VAT and other taxes

1,228

1,478

Other current assets

2,033

2,319

Total current assets

79,807

75,470

Property and equipment, net

10,113

10,781

Operating leases right-of-use assets

2,244

-----

Deferred tax assets

5,939

7,267

Prepaid VAT and other taxes

333

176

Other assets

98

158

Goodwill

871

871

Total assets

$99,405

$94,723

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable

$7,204

$6,214

Accrued compensation and benefits

1,300

1,137

Other accrued expenses

2,445

2,825

Current maturity of long-term debt

1,155

158

Current portion of operating lease liability

835

-----

Total current liabilities

12,939

10,334

Long-term portion of debt

-----

1,161

Long-term portion of operating lease liability

1,414

-----

Total liabilities

14,353

11,495

Commitments and contingencies

Stockholders' equity

Preferred stock, $0.01 par; authorized 1,500,000 shares (none issued)

-----

-----

Common stock, $0.01 par; authorized 20,000,000 shares,

Issued 8,481,665 and 8,475,929; outstanding 7,972,423 and 8,013,840 at January 31, 2020

and 2019, respectively

85

85

Treasury stock, at cost; 509,242 and 462,089 shares at January 31, 2020 and 2019, respectively

(5,023)

(4,517)

Additional paid-in capital

75,171

75,612

Retained earnings

17,581

14,300

Accumulated other comprehensive loss

(2,762)

(2,252)

Total stockholders' equity

85,052

83,228

Total liabilities and stockholders' equity

$99,405

$94,723

25

Protect Your People

Appendix

26

Strong Growth Masked By Wind-Down of DuPont & Brazil

Sales by Segment

($ in millions)

$93.5

$99.6

$84.0

$8.7

$86.2

$77.0

$76.1

$72.0

$60.0

$57.4

$54.7

$61.3

$51.2

$44.3

$44.5

$41.7

$35.6

$35.7

$28.1

$21.3

$19.9

$8.0

$6.2

$0.0

$0.0

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

$8.7

$99.0

$96.0

FY2018 FY2019

DuPont & Brazil Sales

Lakeland (Excluding DuPont & Brazil)

Ebola & Bird Flu Sales

LAKE grew larger despite winding down $77 million DuPont and $17 million Brazil businesses

Company fiscal year ends January 31.

FY2016 includes $8.7 million in one time Ebola and Bird Flu related revenue.

27

Real Estate

Location

Sq. Ft.

Leased / Owned

Primary Function

Canada (Brantford)

22,092

Owned

Sales / Warehouse

China (Weifang)

122,665

Owned

Administration / Manufacturing / Warehouse / Sales

16,145

Leased

Warehouse

Decatur, AL

147,228

Owned

Administration / Manufacturing / Sales

21,000

Leased

Warehouse

Mexico (Zacatecas)

74,000

Owned

Administration / Manufacturing /

Warehouse / Sales

Argentina (Buenos Aires)

3,770

Leased

Administration / Manufacturing /

Warehouse / Sales

Chile (Santiago)

3,996

Leased

Administration / Warehouse / Sales

China (Beijing)

3,047

Leased

Sales / Warehouse

China (Shanghai)

11,746

Leased

Administration / Sales / Warehouse

India (Noida)

32,005

Leased

Manufacturing / Warehouse / Sales

Kazakhstan (Ust-Kamenogorsk)

89

Leased

Warehouse / Sales

Ronkonkoma, NY

2,500

Leased

Headquarters - Administration / Sales

Russia (Moscow)

875

Leased

Warehouse / Sales

U.K. (Newport, East Yorkshire)

9,833

Leased

Warehouse / Sales

Vietnam (Nahm Dinh)

140,000

Leased

Manufacturing / Warehouse

28

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Disclaimer

Lakeland Industries Inc. published this content on 26 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 May 2020 14:07:04 UTC