FGI Industries : Investor Presentation

Investor Presentation

December 2023

Disclaimer

Certain matters discussed in this presentation contains forward-looking statements concerning our business, operations and financial performance and conditions, as well as our plans, objectives and expectations for our business operations and financial performance and condition. These statements may be preceded by, followed by or include the words "may," "expect," "will," "will likely result," "should," "estimate," "plan" and other similar expressions that are predictions of or indicate future events and future trends. These forward-looking statements are inherently subject to risks and uncertainties, many of which

are beyond our control. Risks and uncertainties that could cause our actual results to differ from those expressed in, or implied by, our forward-looking

statements include, but are not limited to, the levels of residential repair and remodel activity, and to a lesser extent, new home construction; the effects of inflationary pressures and interest rates on demand for our products, our costs and our ability to access capital; our ability to maintain our strong brands and reputation and to develop innovative products; our ability to maintain our competitive position in our industries; our reliance on key suppliers and customers; the length and severity of the ongoing COVID-19 pandemic, including its impact on domestic and international economic activity, consumer confidence, our production capabilities, our employees and our supply chain; the cost and availability of materials and the imposition of tariffs; risks associated with our

international operations and global strategies; our ability to achieve the anticipated benefits of our strategic initiatives; our ability to successfully execute our

acquisition strategy and integrate businesses that we may acquire; risks associated with our reliance on information systems and technology, and our ability to achieve the anticipated benefits from our investments in new technology; our ability to attract, develop and retain talented and diverse personnel; our ability to obtain additional capital to finance our planned operations; regulatory developments in the United States and Internationally; our ability to establish and maintain intellectual property protection for our products, as well as our ability to operate our business without infringing the intellectual property rights of others; and other risks and uncertainties, including those listed under the caption "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022, as well as subsequent reports we file from time to time with the U.S. Securities and Exchange Commission (available at

www.sec.gov).

These forward-looking statements are based on management's current expectations, estimates, forecasts and projections about our business and the industry in which we operate, and management's beliefs and assumptions are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. In light of the significant uncertainties in these forward- looking statements, you should not rely upon forward-looking statements as predictions of future events. Any forward-looking statements and projections

made by third parties included in this presentation are not adopted by our company, and we are not responsible for these third-party statements and

projections. Although we believe the expectations reflected in the forward-looking statements are reasonable, the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements may not be achieved or occur at all. Except as required by law, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

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FGI Industries at a Glance

Leading global B2B supplier of Kitchen and Bath Products

FGI is a leading global B2B supplier of Kitchen and Bath products with a reputation of Innovation, Quality and Service developed over 30 years in conjunction with our parent company, Foremost Groups Ltd.

Founded in		IPO in January
1988		2022

Strong Growth Opportunity

• BPC strategy offers meaningful growth potential

Favorable Market Trends

• Repair and Remodel market generates stable, predictable growth; limited exposure to new construction

Attractive Operating Model

• Outsourced manufacturing model and strong partner relationships provide flexibility and downside protection

Capital Efficient Model

• Capital-litemodel drives strong free cash flow conversion

Strong Balance Sheet

• Low net debt(1) relative to earnings, attractive liquidity

Recent Performance	$120MM Revenue	+ 530 bps 3Q23 gross
Business	margin expansion

(1) See attached appendix for reconciliation of GAAP and non-GAAP financial measures

New

Construction

20%

Repair/Remodel

80%

EU

Canada 10%

25%

USA

64%

Owned

Brands

40%

	Private
	Label
	60%
E-Commerce	Specialty
21%	2%

	Mass
Wholesale/Commercial	Retail
40%
37%
$20.9MM of cash and	$2.6MM Net Debt
liquidity at 9/30/23	Position at 9/30/23(1)

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Company Overview

Diverse Business Mix Provides Stability

	Sanitaryware	Bath Furniture	Shower Systems		Other
										(Kitchen Cabinetry, etc.)
 $105MM in 2022 Sales (65% of sales)	 $30MM in 2022 Sales (18% of sales)	 $22MM in 2022 Sales (14% of sales)	 $6MM in 2022 Sales (4% of sales)
 $12.5Bn market opportunity	 $22Bn market opportunity	 $12Bn market opportunity	 $18Bn market opportunity
Sanitaryware segment markets and	Bath Furniture segment markets and	Shower systems segment markets	Other segment consists primarily of
sells toilets, sinks, pedestals, and toilet	sells vanities, mirrors, and cabinets	and sells shower walls, shower doors,	our custom kitchen cabinetry
seats.				and shower basins	business

4

Company Overview

Global Operational Footprint and Customer Base

United States & Canada	Europe	Asia-Pacific
• EAST HANOVER, NEW JERSEY	• DUSSELDORF, GERMANY	• TANGSHAN, CHINA
US Operations & Warehouse	European Operations	Product Purchasing & Development Center
• HOBART, INDIANA	• CHRISTCHURCH, ENGLAND	• TAIPEI
Shower Door Production Center	UK Operations	Global Support Center
Warehouse & Distribution
• WOODLAND, CALIFORNIA		• CAMBODIA
	Kitchen Production Center
Warehouse
• TORONTO, CANADA		• SYDNEY, AUSTRALIA
	Australasia Operations
Canada Operations & Warehouse

United States & Canada

Europe

E-Commerce

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Company Overview

Experienced Management Team

John S. Chen

Executive Chairman

John appointed

Executive Chairman in

2021

Prior to joining FGI, John

spent 2 years as

Executive Vice President

of Corporate

Development for

Foremost Groups, Ltd.

John spent 11 years in the investment management industry and 2 years as a securities lawyer.

David Bruce

Chief Executive Officer

Dave was named CEO

in 2021

Prior to being named CEO, Dave served as the EVP of the Kitchen

• Bath division for Foremost Groups, Ltd. and had been with the company for 23 years.

Perry Lin

Chief Financial Officer

Perry was named CFO

in 2021

Prior to being named CFO, Perry was Vice President of Corporate Finance for Foremost Groups, Ltd. and had been with the company for 11 years.

Prior to joining

Foremost, Perry served

as audit manager at KPMG for ten years.

Bob Kermelewicz		Jennifer Earl		Norman Kroenke
EVP of FGI USA		EVP of FGI Canada		EVP of FGI Europe
Bob was named head		Jennifer was named		Norman was named
of FGI USA in 2021		head of FGI Canada in		head of FGI Europe in
	2021	2021
Prior to this position,		Prior to this position,		Prior to this position,
Bob spent twenty-		Jennifer held various		Norman served as the
three years as an		roles at Foremost		Executive Vice
Executive Vice		Groups, Ltd. for		President of Foremost
President of the		twenty-three years in		International GmbH &
Kitchen & Bath Division		sales, product		Co.KG., a position he
at Foremost Groups,		development, and		held for over fifteen
Ltd.		marketing.		years, during which
				time he focused on

building a European

sales presence for

Foremost's

sanitaryware platform.

6

Key Investment Highlights

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Key Investment Highlights

Opportunity to drive significant shareholder value

Diversified Portfolio and History of Innovation

• Diversified mix of products, market segments and sales channels
• Tradition of strong innovation with leading 'on-trend' designs: Innovation,
  Quality, Services

Attractive Growth Opportunity

• Brands, Products, Channels (BPC) growth strategy

Margin Improvement Initiatives

• More favorable mix and efficiency measures to drive margin improvement

Attractive Operating Model

• Capital-litemodel manufacturing model and strong partner relationships

Favorable industry trends

• K&B are most significant areas of home improvement, Stability of R&R

Capital Deployment Strategy

• Re-invest,Bolt-on acquisitions, Return of Capital

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We are dedicated to

driving shareholder value through a strict focus on our strategic priorities which include our BPC strategy to drive organic growth, enhanced financial performance, and a disciplined capital deployment philosophy.

Diversified Portfolio and History of Innovation

Positioned for growth with diversified portfolio of innovative products

GOOD, BETTER, BEST STRATEGY

GOOD

BETTER

BEST

by

by

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Well Positioned in the $100B+ Global Kitchen & Bath Market

HIGH

HIGHER QUALITY

MID-TO-HIGHER PRICE POINTS

BETTER SUPPLY CHAIN

BETTER OPERATIONS

LOW

FRAGMENTED SUPPLIERS

60%+ OF INDUSTRY

MORE POTENTIAL PRODUCT-CATEGORY

OFFERINGS HIGHER GROWTH

POTENTIAL

HIGH

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