View this Presentation (PDF 2.72 MB) - s2.q4cdn.com Avionics –TW4 Deep Aerospace Relationships. Addressing the Top 3 Tiers of the Aerospace Value Chain AstroNova NASDAQ: ALOT 21

©2017 AstroNova, Inc. All Rights Reserved.

Sidoti Spring 2017

Emerging Growth Convention March 29, 2017

Gregory A. Woods, President and CEO

John P. Jordan, VP, CFO & Treasurer

Forward-looking Statements

2

Information included in this presentation may contain forward-looking statements within the meaning of the Private

Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but rather

reflect our current expectations concerning future events and results. These statements may include the use of the

words “believes,” “expects,” “intends,” “plans,” “anticipates,” “likely,” “continues,” “may,” “will,” and similar expressions

to identify forward-looking statements. Such forward-looking statements, as well as statements relating to future

operating targets, involve risks, uncertainties, and other factors, some of which are beyond the Company’s control,

which may cause its actual results, performance, or achievements to be materially different from those expressed or

implied by such forward-looking statements. These risks, uncertainties, and factors include, but are not limited to,

those factors set forth in the Company’s Annual Report on Form 10-K and subsequent filings AstroNova makes with

the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any

forward-looking statements, whether as a result of new information, future events, or otherwise. The reader is

cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in this

presentation.

Innovative, Differentiated Products Connected by Core Technology

3

Data Visualization Technology

AstroNova NASDAQ: ALOT

• Products convert analog and digital data into human-usable formats

• High recurring revenue stream

• Proprietary consumables

• Diverse global markets

Aerospace Product Identification Test & Measurement

4AstroNova NASDAQ: ALOT

AstroNova Operating System

InnovationStage-Gate methodology

accelerates and streamlines

product development process

Building Value

Our customer-centric philosophy

ensures we deliver superior

quality, delivery, cost and growth

Continuous Improvement

Through operational excellence and lean

initiatives, we consistently strive to

increase efficiency and enhance margins

One Global Team

We work as a unified organization

in a data-driven environment that

fosters mutual trust and respect

5

Integrated Business Model


Increased Shareholder Value

AOS – Best Quality, Cost, Delivery

Common Core: R&D, FIN, IT, OPS, M&A

Data Visualization Technology

Strategic Planning & Deployment Process

AerospaceProduct

Identification Test &

Measurement

Unique Go-To-Market Teams

Stage-Gate Product Management

Voice of the

Customer

Pro

fita

ble

reve

nu

e

gro

wth

Strategic M&A

Global Reach, Worldwide Customer Base


Business Units

Reporting Segments

Business Overview


Recent Highlights


• Achieved record fourth quarter and FY17 revenue

• Unveiled new Product ID and T&M products

• Opened new offices in Spain and India

• Acquired TrojanLabel ApS; completed strategic financing agreement

• Announced selection of ToughWriter 640 for Boeing 737 catalog

• Returned dividends totaling $2.1 million to shareholders in FY17

• Exited FY17 with $24.8 million in cash and marketable securities

FY 2017 Revenue by Type/Channel

FY 2017 Revenue by Type

9

Consumables

$56.2

Hardware

$33.8

Service/Other

$8.4

FY 2017 Revenue by Channel

Domestic

$68.7International

$29.7

Total revenue of $98.4 million, +4% YoY

($ in millions)($ in millions)


Product Identification

10

Tabletop and Light Production Label Printers, Specialty Printers,

Software, Consumables, and Service


Product Identification: Capitalizing on Demand for Customization

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$43.6$49.1

$59.8

$67.1$69.9

10.0% 10.5% 12.1% 13.9% 14.1%

$0

$20

$40

$60

$80

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

($ in millions)

Annual Revenue and

Segment Operating Profit


Revenue CAGR: 12.5%

Growth Drivers:

• Customization megatrend

• Efficiency and waste reduction

• Faster time to market

• Favorable economics

TrojanLabel Acquisition

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• European manufacturer of digital color label and specialty printers

• Strong presence in EMEA and Asia

• 50 dealer partners worldwide

• Three major product lines focused on a broad range of end markets

• Profitable and growing

• Robust R&D pipeline


Closed February 1, 2017

Strategic Rationale


Expands Product Line

Opens

New End Markets

Broadens

Technical Capabilities

Enhances

Global Dealer Network

Creates Significant Cross-Selling Opportunities

Expands Addressable Product ID Market


Expands Addressable Product ID Market


Trojan 2: The Leader in Light Production Color Label Presses under $100K


• High performance color label press

• Characteristics of a larger expensive system

in affordable package

• Attainable for all label converters and

high volume brand owners

• Maintains high, consistent print quality

at high volumes

• User friendly system with touch screen interface

and automatic maintenance

Trojan 3: A Disruptive Opportunity in Packaging and Converting


• Print color images directly onto a wide variety of materials

• Easily customized

• Can be integrated with third party OEM devices

• Reduces inventory and waste

• Enables faster time to market

Test & Measurement

AstroNova NASDAQ: ALOT 18

Ruggedized Airborne Printers, Networking Hardware and

Data Acquisition Systems

Annual Revenue and

Segment Operating Profit

$17.6$19.5

$28.6$27.5

$28.6

17.6%13.6%

19.7%

13.3% 15.4%

$0

$5

$10

$15

$20

$25

$30

$35

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Revenue CAGR: 12.9%

($ in millions)

Aerospace Products:Significant Worldwide Opportunity


• Graphical flight deck and cabin printers

• Rugged networking products

• PMA certified products, parts, supplies

• Certified FAA repair facility

ToughWriter® 4 ToughWriter® 5 Miltope Printers

Networking Electronics

NEW

ToughWriter® 640

Growth Catalysts: Global Aircraft Demand

(Upgrades, Service, Supplies)

Aerospace Products

Select Contracts


Military Business/Regional Jet Commercial In-Flight Entertainment

C-130J – TW4

A400M – TW4

C-130T – TW4

KC-390 – TW5

Airbus A380 – TW4

Boeing 787 – TW4

Boeing 737NG – TW5

Confidential – TW5

Global 5000/6000 – TW5




Panasonic Avionics – TW5

Zodiac Inflight Innov. – TW4

Thales Avionics – TW4

Deep Aerospace Relationships

Addressing the Top 3 Tiers of the Aerospace Value Chain


AirlineDirect

Aircraft OEMs

Tier 1 Systems Integrators

Data Acquisition Systems Real-Time Data Analysis

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Applications

• Aircraft equipment qualification and certification

• Monitoring rail and automotive performance

• Validating fixed plant control instrumentation

• Wireless remote monitoring and data acquisition


Signal capture and analysis

• Main markets: aerospace, transportation, industrial

Growth Catalysts: Regulatory,

Safety Complianceand Quality Assurance

DDX100

SmartCorder®

New Products

EVX® Chart

Recording System

Daxus®

Data Acquisition Technology A380 Qualification and Testing


Near-term Priorities


• Complete TrojanLabel integration

• Integrate AstroNova Operating System into TrojanLabel’s operations

• Expand addressable markets through strategic investment in sales, marketing,

engineering and technical support

• Continue ramp of new Product ID and Test & Measurement products

• Further expand international revenue opportunities

• Build Management and Technical Bench Strength

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Near-Term:

1-2 Years

(FY18=Y2)

Longer-Term:

3-5 Years

• Accelerate product launches and channel build out

• Innovate game-changing products

• Automate key processes

• Build management team depth

• Pursue smaller bolt-on acquisitions

• Broaden product lines and recurring revenue opportunities

• Focus AOS on growing market share and operating margins

• Increase global presence

• Pursue larger bolt-on acquisitions

Five-Year Growth Strategy


Operating Model


FY 2017 FY 2021 (targets)

Revenue $98.4M $250M

3-year CAGR 12.8% 17%

Operating Margin 6.4% 15%

Strategic Driving Force Data Visualization Technology

End Market Focus Aerospace, Data Acquisition, Industrial

Fast-Moving Consumer Goods

Growth Strategy (Organic growth of current platforms) + (bolt-on M&A)

Management Approach AstroNova Operating System

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Track record of successful M&A

Recurring revenue >50%

Robust product development pipeline

Expanding global footprint

Continuous improvement culture


Leading market positions and brands

High Barriers to Entry

Investment Rationale


Thank You!

NASDAQ: ALOT


Financial Overview

Strong Financials

30

$76.4

$88.3

$102.3$97.8

$0

$20

$40

$60

$80

$100

$120

FY 2014 FY 2015 FY 2016 FY 2017

Bookings ($M)


Revenue and Net Income ($M)

$68.6

$88.3$94.7

$98.4

$0

$10

$20

$30

$40

$0

$20

$40

$60

$80

$100

$120

FY 2014 FY 2015 FY 2016 FY 2017

Improved Cash Generation


*Free cash flow is a Non-GAAP metric which AstroNova defines as net cash from operating activities less capital expenditures. Please see

Appendix for reconciliation of Non-GAAP results to their most directly comparable GAAP results.

($ in thousands)Free Cash Flow* and CapEx($M)

FY 2017FY 2016FY 2015FY 2014

32

($ in thousands)

Operations Excellence is Yielding Improved Productivity

Revenue/Employee

CAGR: 11%


Annual Revenue by Type FY 2017 vs. FY 2016

33

Hardware34%

FY17: $33.8

FY16: $34.8 41% Consumables

FY17: $56.2

FY16: $51.8

53%

Service and other

FY17: $8.4

FY16: $8.19%

6%

FY17: $98.4

FY16: $94.7

Revenue

$ in millions (% of total sales)

37%55%

8%


57%

Annual Revenue by ChannelFY 2017 vs. FY 2016

34

72%

70%30% 28%

$ in millions (% of total sales)

FY17: $68.7

FY16: $68.3

International

FY17: $29.7

FY16: $26.3

FY17: $98.4

FY16: $94.7

Domestic

Revenue


Annual Revenue by Segment FY 2017 vs. FY 2016

35

71%

Test & Measurement

$28.5

FY 2017

$98.471% $67.1

Test & Measurement

$27.5

FY 2016

$94.7

29%

Product ID

$69.9

Product ID

29%

$ in millions (% of total)


Annual Operating Profit by SegmentFY 2017 vs. FY 2016

36

69%

Product ID

$9.3 - ProfitMargin 13.9%

Test & Measurement


FY 2016

$ in millions (% of total)

$13.0

28%

Product ID


$4.4 - Profit

Margin 15.4%

FY 2017

$14.231%

Test & Measurement


72%

Q4/FY17 Financial Highlights


(In thousands, except per share data) Three Months Ended Twelve Months Ended

January 31, 2017 January 31, 2016 January 31, 2017 January 31, 2016

Revenue $25,657 $23,761 $98,448 $94,658

Gross Profit 10,071 9,130 39,489 38,158

Gross Profit Margin (%) 39.3% 38.4% 40.1% 40.3%

Operating Income 1,152 793 6,281 5,934

Net Income 766 828 4,228 4,525

Net Income Per Share – Diluted $0.10 $0.11 $0.56 $0.61

Weighted Avg Number of Common

Shares Outstanding – Diluted 7,586 7,494 7,573 7,471

Cash Dividends Per Share $0.07 $0.07 $0.28 $0.28

Book Value Per Common Share(1) $9.30 $8.99 $9.30 $8.99

Selected Balance Sheet Data

38

($ in thousands of dollars)

As of

January 31, 2017

(Unaudited)

As of

January 31, 2016

(Audited)

Cash & Marketable Securities 24,821 20,419

Current Assets 60,566 54,514

Total Assets 82,843 77,963

Current Liabilities 11,700 9,548

Shareholders’ Equity 70,002 67,373



Appendix

Global Aircraft FleetNew and Existing Aircraft – 2015-2035


Existing Fleet

(End of Year 2015)

New Aircraft Deliveries:

2016-2035

Single-aisle 14,280 28,140

Wide body 3,910 8,170

Regional jets 2,550 2,380

Business jets 16,185 8,300*

Total 36,925 46,990

Sources: Boeing Long-Term Outlook, Bombardier Market Forecast

*10 year forecast (2016-2025)

Large and Growing Markets

Reconciliation: Net Cash Provided by Operating Activities to Free Cash Flow


($ in thousands) Twelve Months Ended

January 31, 2017 January 31, 2016

Net Cash Provided by Operating Activities $6,900 $7,728

Capital Expenditures ($1,200) ($3,062)

Free Cash Flow $5,700 $4,666


Thank You!

NASDAQ: ALOT

Documents

View this Presentation (PDF 2.72 MB) - s2.q4cdn.com Avionics –TW4 Deep Aerospace Relationships. Addressing the Top 3 Tiers of the Aerospace Value Chain AstroNova NASDAQ: ALOT 21