Cadre (CDRE) Investor Update summary

Operating Model, Strategy, and Innovation

• The operating model is leadership-centric, behavior-based, and structured around company values and six leadership capabilities, emphasizing continuous improvement, talent development, and associate engagement.

• Execution is guided by an Excellence Maturity Matrix, progressing from fundamentals to excellence, using over 21 operational tools including Kaizen and lean principles.

• Structured processes like Tollgate 0 and stage-gate NPD prioritize investments, foster cross-functional collaboration, and align product features with user needs.

• Innovation is central to maintaining premium market positions, with a focus on defensible, patented products and disciplined new product development.

• Recent product successes, such as Vault holsters, HyperX, and Incog X, result from this disciplined approach.

Product Innovation and Apex Armor System Launch

• The Safariland Armor Apex Carrier is a concealable body armor system inspired by athletic apparel, offering improved fit, comfort, and articulation.

• The patent-pending four-piece design with articulated side panels, compression zones, and floating architecture improves comfort, maintains ballistic coverage, and reduces fatigue.

• The system eliminates ride-up, allows for longer ballistic panels, and is easier to don and doff compared to previous carriers.

• Developed with extensive end-user feedback from major law enforcement agencies, receiving highly positive reviews for comfort and performance.

• Launched at SHOT Show 2024, Apex is being introduced to over 300 agencies, with active field testing and demos driving adoption.

Pricing, Adoption, and Market Impact

• Apex is priced $125–$150 above legacy systems but remains accessible for most agencies, with immediate comfort and performance benefits noted.

• Adoption rates vary by agency, with some integrating Apex into regular cycles and others transitioning as contracts allow.

• The system is expected to drive market share gains and retention as agencies replace older vests, with ongoing support for legacy products.

• Ballistic protection levels remain consistent with existing packages, but the carrier must be custom-cut for the new system.