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Sidoti & Company, LLC Spring 2019 Investor Conference
David S. Smith, CFO March 28, 2019
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, including those concerning five-year operating model targets and growth
through acquisitions, involve risks, uncertainties and other factors, some of which are beyond the
Company’s control, which may cause the Company’s 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 for the fiscal year ended January 31, 2018 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. Investors are cautioned not to unduly rely on such forward-looking statements when
evaluating the information in this presentation.
©2019 AstroNova, Inc. all rights reserved. 2
Forward-looking Statements
NASDAQ: ALOT Investor Presentation – March 2019
3
Innovative, Differentiated Products
Aerospace Product Identification Test & Measurement
Unifying Core Technology – Data Visualization
AstroNova products convert analog and digital data into text, graphics, digital signals
• High recurring revenue stream
• Proprietary consumables
• Diverse global markets
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
AstroNova Financial Snapshot
4NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
NASDAQ: ALOT Russell Microcap® Index(Stock price and yield as of 3/25/2019)
Recent Price $19.62
52-Week Range $13.76 - $23.95
Market Capitalization $136.4 million
Common Stock Outstanding(1) 6.95 million
Enterprise Value $148.5 million
Book Value per Share(2) $9.74
Annualized Dividend $0.28 per share
Yield 1.43%
Q4 FY 2019 Financial Highlights
• Bookings*: $38.6 million, up 11%
• Revenue*: $37.2 million, up 14%
• Operating income*: $2.9 million, up 37%
• EPS: $0.32, up 256%
(1) As of November 30, 2018
(2) Fiscal year ended January 31, 2019
FY 2019 Financial Highlights
• Bookings*: $141.9 million, up 19%
• Revenue*: $136.7 million, up 21%
• Operating income*: $8.7 million, up 61%
• Backlog*: $25.6 million, up 20%
• EPS: $0.81, up 72%
*Company record
50-Year History of Innovation
5
1969
Company founded
1975First data acquisition
recorders
1983
Nasdaq listing
1994Grass Technology
acquired
1994First color
label printer2001
First Aerospace printer
2012First color inkjet
label printer
2013Grass
Technologydivested
2013AOS
launched
2014Miltopeacquired
2015RITEC
acquired
2015AstroNovaREBRANDING
Calendar years
20165yr accelerated
growth plan
2017TrojanLabel
acquired
2017Honeywell
acquired
New Growth Strategy
Implemented FY13
Investor Presentation – March 2019 NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.
6
Strategic Transformation
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
FY 1992 FY 2002 FY 2012 FY 2019
New Growth Strategy
Implemented
ALOT Revenue$ in millions
7
AstroNova Operating System (AOS)
Continuous Improvement Through operational excellence
and lean initiatives, we
consistently strive to increase
efficiency and enhance margins
InnovationStage-Gate methodology
accelerates and streamlines
product development process
Building Value
Our customer-centric philosophy
ensures we deliver superior
quality, delivery, cost and growth
One Global Team
We work as a unified organization
in a data-driven environment that
fosters mutual trust and respect
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
Financial Highlights
8NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.
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Revenue Per Employee
($ in thousands)
NASDAQ: ALOT
AOS Drives Productivity Improvements
©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
$216
$267 $286
$310
$352 $374
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
Five-Year Revenue History
$68
$88$95 $98
$113
$137
$0
$20
$40
$60
$80
$100
$120
$140
$160
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
Annual Revenue
Investor Presentation – March 2019 NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved. 10
($ in millions)
Annual
$98.4$113.4
$136.6
FY 2017 FY 2018 FY 2019
$24.5
$27.5$28.8
$32.7$31.5
$33.8 $34.2
$37.2
Q1 Q2 Q3 Q4
FY'17 FY'18 FY'19
Recent Revenue Growth
11©2019 AstroNova, Inc. all rights reserved.
+29% +23% +19% +14%
Quarterly
($ in millions)
($ in millions)
Investor Presentation –March 2019 NASDAQ: ALOT
12
62%
38%
50%
41%
9%
Revenue by Product Type
Supplies
$18.5M
Hardware
$15.2M
Service/Other
$3.5M
Revenue by Channel
Domestic
$22.9M
International
$14.3M
($ in millions) ($ in millions)
Q4 FY 2019 Revenue Profile
NASDAQ: ALOT
Large Recurring Revenue Domestic Revenue +22% y/y
©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
13
61%
39%
52%39%
9%
Revenue by Product Type
Supplies
$71.2M
Hardware
$53.2M
Service/Other
$12.3M
Revenue by Channel
Domestic
$83.7M
International
$53.0M
($ in millions) ($ in millions)
FY 2019 Revenue Profile
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
Large Recurring Revenue International Revenue +22% y/y
14
Worldwide Reach
165 Dealers, Customers in 154 Countries
©2019 AstroNova, Inc. all rights reserved.NASDAQ: ALOT Investor Presentation – March 2019
15
Worldwide Installed Base
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
16
Business Overview
Reporting
Segments
Business
Units
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
17
Product Identification Segment
Tabletop and Light Production Label Printers, Specialty Printers,
Software, Consumables, and Service
$49.1
$59.8
$67.1$69.9
$81.7$86.8
10.5% 12.1% 13.9% 14.1% 13.0%9.1%
$0
$20
$40
$60
$80
$100
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
FY 2014-19 Revenue CAGR: 12.1%
($ in millions)
Segment Revenue and
Operating Profit Margin
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
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Digital Package Printing:Large, Attractive and Growing Market
Advantages of Digital Package Printing
• Short-run
• On-demand
• Ease of data variability
• Personalization
• Lower cost
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
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New Product - QuickLabel® QL-300Launched Worldwide in February 2019
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
• 5-color, toner-based tabletop digital label printer
• Can print white and CMYK in 1200 dpi
• Greatly expands labeling opportunities
• Label print is durable, water-fast and UV resistant
• Wide range of capabilities
• Low total cost of ownership
User Friendly. Flexible and Productive. Cost Effective.
$13.2
$23.2
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
2017 2022
Projected Growth of Digitally Printed
Labels and Packaging
($ in b
illio
ns)
Source: Smithers Pira, AstroNova
NASDAQ: ALOT
Labels represent ~ 15-20%
©2019 AstroNova, Inc. all rights reserved. 20Investor Presentation – March 2019
Digital Package Printing:Disrupting the Packaging Industry
Expands Addressable Product ID Market
21NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation –March 2019
QuickLabelTrojanLabel
22
TrojanLabel
• Acquired in February 2017
• European manufacturer of digital color label presses and specialty printing systems
• Products focused on a broad range of end markets
• Strong presence in EMEA and Asia
• 50 dealer partners worldwide
• Profitable and growing
• Robust R&D pipeline
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
23
Food Safe, Flexible Packaging Solution
Introduced at PACK EXPO 2018
• Designed for use with the entire range of the TrojanLabel printers
• Opens new opportunities in food, medical and pharmaceutical packaging
markets
• Flexible packaging lowers material cost, reduces waste, increases
consumer convenience and enhances brand differentiation
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
24
Market Leading PortfolioDigital Color Label Printers & Supplies
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
25
Test & Measurement Segment
Airborne Printers, Networking Hardware and
Data Acquisition Systems
$19.5
$28.6 $27.5 $28.6$31.7
$49.9
13.6%
19.7%
13.3% 15.4%11.8%
23.9%
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
FY 2014-19 Revenue CAGR: 20.7%
Segment Revenue and
Operating Profit Margin
NASDAQ: ALOT
FY19 Revenue Up 57% Y/Y
©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
26
Aerospace Products: Significant Worldwide Opportunity
• Graphical flight deck and cabin printers
• Avionic networking products
• PMA certified products, parts, supplies
• Certified FAA repair facility
Growth Catalysts: Global Aircraft Demand
(Upgrades, Service, Supplies)
Military Commercial Business/
Regional Jet
In-flight
Entertainment
Leading Customers
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
• ANI to manufacture Honeywell’s narrow-format commercial flight deck printers
• Primarily used on Boeing 737 and Airbus A320
• Covers production of new printers as well as repair, support services and supplies
• Expected to be accretive in first full year of ownership
Honeywell AerospaceProduct Line Acquisition:
Significant Growth Driver
27NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
14,300B737s and A320s currently in service
10,000Entering into service in next 10 years
28
Source: Customer estimates
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
29
B737 and A320 Estimated Annual Production Rate 2017-19
0 200 400 600 800 1000 1200 1400 1600
2017
2018
2019
B737 A320
1,032
1,210
1,402
Source: Customer estimates
NASDAQ: ALOT
B737 + A320 ~60% of all commercial deliveries
©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
30
Real-time Data Acquisition & Analysis
Applications
• Aircraft equipment qualification and certification
• Monitoring rail and automotive performance
• Validating fixed plant control instrumentation
• Wireless remote monitoring and data acquisition
Growth Catalysts: Regulatory,
Safety Complianceand Quality Assurance
Primary Markets
Aerospace, transportation, energy, industrial, telemetry
New Products
Everest®EV-5000DDX100
SmartCorder®
Daxus® DX-100TMX ®
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
31
FY 2020 Priorities
• Accelerate use of AOS to drive operational excellence
• Complete transition to unified Global IT and Logistics platform
• Enhance liquidity through working capital improvements
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
32
Five-Year Growth Strategy (est. FY16)
Near-Term:
1-2 Years
Longer-Term:
3-5 Years
• Accelerate product launches and channel build out
• Innovate game-changing, technology-based products
• Automate key processes
• Build management team depth
• Pursue smaller bolt-on acquisitions
• Focus AOS on improving operating margins and FCF
• Broaden product lines and recurring revenue opportunities
• Increase global presence
• Pursue larger bolt-on acquisitions
FY17
FY18
FY19
FY20
FY21
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
33
Five-Year Operating Model
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.
FY 2019 (actual) FY 2021 (targets)*
Revenue $136.7M $250M
5-year CAGR 14.9% 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
*Targets dependent on additional acquisitions
FY 2021 targets as established in FY 2016
Investor Presentation – March 2019
34
Reasons to Invest
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
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
THANK YOU
NASDAQ: ALOT 35©2019 AstroNova, Inc. all rights reserved.
Financial Overview
36NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.
37
Q4 and FY 2019 Financial Results Summary
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
In Thousands Except for Per Share Data
(Unaudited) Three Months Ended 12 Months Ended
January 31, 2019 January 31, 2018 January 31, 2019 January 31, 2018
Revenue $37,167 $32,699 $136,657 $113,401
Gross Profit 14,581 12,642 53,999 44,002
Gross Profit Margin (%) 39.2% 38.7% 39.5% 38.8%
Operating Income 2,930 2,130 8,720 5,412
Operating Margin (%) 7.9% 6.5% 6.4% 4.8%
Net Income 2,306 628 5,730 3,286
Net Income per Common Share – Diluted $0.32 $0.09 $0.81 $0.47
Weighted Avg Number of Common Shares
Outstanding – Diluted 7,163 6,847 7,084 7,015
Dividends Declared per Common Share $0.07 $0.07 $0.28 $0.28
38
Select Consolidated Balance Sheet Data
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved.Investor Presentation – March 2019
Amounts In Thousands
(Unaudited) January 31, 2019 January 31, 2018
Cash and Cash Equivalents $7,534 $10,177
Current Assets $62,608 $63,780
Total Assets $118,983 $122,313
Current Liabilities $24,665 $25,912
Long-Term Debt, net of current portion $12,870 $17,648
Royalty Obligation, net of current portion $9,916 $11,760
Shareholders’ Equity $69,774 $63,647
THANK YOU
NASDAQ: ALOT ©2019 AstroNova, Inc. all rights reserved. 39
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