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Needham & Company 20th Annual Growth Conference
Greg Woods, President and CEO
Joseph O’Connell, CFO
January 17, 2018
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 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, 2017 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.
©2018 AstroNova, Inc. all rights reserved. 2
Forward-looking Statements
NASDAQ: ALOT Needham 20th Annual Growth Conference
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 ©2018 AstroNova, Inc. all rights reserved.Needham 20th Annual Growth Conference
48-Year History of Innovation
4
1969
Company founded
1975First data acquisition
recorders
1983
Nasdaq listing
1986First barcode label printer
1994Grass Technology
acquired
1994First color
label printer2001
First Boeing printer
& networking
2004First Airbus
printer
2009TMX high-speed data acquisition
recorders
2012First color inkjet
label printer
2013Grass
Technologydivested
2013AOS
launched
2014Miltopeacquired
2015RITEC
acquired
2015AstroNovaREBRANDING
Calendar years
20165yr accelerated
growth plan
2017TrojanLabel
acquired
2017Honeywell
acquired
Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.NASDAQ: ALOT
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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 Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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Worldwide Reach
Innovation Technology Centers
165 Dealers, Customers in 154 Countries
Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.NASDAQ: ALOT
7
Business Overview
Reporting
Segments
Business
Units
NASDAQ: ALOT Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
Recent Growth Drivers
8
Strategic M&A• Asset Purchase License Agreement: Honeywell Aerospace
• Integration of TrojanLabel into AstroNova
• Launched game-changing new products in both segments
• Increased demand for ink, labels and other supplies
Operational • Opened new EMEA hub in Germany
• Strengthened leadership team
Organic Initiatives
NASDAQ: ALOT Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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Product Identification
Tabletop and Light Production Label Printers, Specialty Printers,
Software, Consumables, and Service
$43.6$49.1
$59.8
$67.1$69.9
$59.9
10.0% 10.5% 12.1% 13.9% 14.1% 12.9%
$0
$20
$40
$60
$80
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 9 MOS FY18
FY 2013-17 Revenue CAGR: 12.5%
($ in millions)
Segment Revenue and
Operating Profit Margin
NASDAQ: ALOT Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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Digital Package Printing: Large, Attractive and Growing
Advantages of Digital Package Printing
• Short-run
• On-demand
• Ease of data variability
• Personalization
• Lower cost
NASDAQ: ALOT Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
Digital Print: Disrupting the Packaging Industry
$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 billions)
Source: Smithers Pira, AstroNova
CAGR: 11.9%
NASDAQ: ALOT
Labels represent ~ 15-20%
Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved. 11
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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 Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
Expands Addressable Product ID Market
13NASDAQ: ALOT Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
Expands Addressable Product ID Market
14NASDAQ: ALOT Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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Commercial Production
Trojan T2-C
• World’s first affordable production digital label mini press
• Fast print speed – up to 12 inches per second
• Ideal for label converters print shops, contract packaging
Trojan T4
• Professional label press and finishing system for compact production
• Fast print speed – up to 12 inches per second
• Ideal for label converters print shops, contract packaging
NASDAQ: ALOT
New Products, Launched FY18-Q4
Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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OEM Equipment for Converters and Manufacturers
Trojan T3-OP
• Digital professional packaging & converting overprinting system
• High quality, full-color printing directly onto ink-receptive surfaces
NASDAQ: ALOT
New Category IJP Technology
Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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Test & Measurement
Airborne Printers, Networking Hardware and
Data Acquisition Systems
$17.6$19.5
$28.6$27.5
$28.6
$20.8
17.6%13.6%
19.7%
13.3% 15.4%11.1%
$0
$5
$10
$15
$20
$25
$30
$35
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 9 MOSFY18
FY 2013-17 Revenue CAGR: 12.9%
Segment Revenue and
Operating Profit Margin
NASDAQ: ALOT
Q3
FY18-Q3 up 26% over Q2
Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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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 Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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Addressing the Top 3 Tiersof the Aerospace Value Chain
AirlineDirect
Aircraft OEMs
Tier 1 Systems Integrators
NASDAQ: ALOT Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
• 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 Agreement: Significant Growth Driver
20NASDAQ: ALOT Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
14,300B737s and A320s currently in service
10,000Entering into service in next 10 years
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Source: Customer estimates
NASDAQ: ALOT Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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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
Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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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 Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
Financial Highlights
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62.8%
37.2%
57.7%32.7%
9.6%
Revenue by Product Type
Supplies
$16.6
Hardware
$9.4
Service/Other
$2.8
Revenue by Channel
Domestic
$18.1
International
$10.7
($ in millions) ($ in millions)
Q3 FY 2018 Revenue Profile
NASDAQ: ALOT
Large Recurring Revenue Expanding International Business
Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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62.8%
37.2%
71.0%
29.0%
Revenue
Product ID
$20.5
Test &
Measurement
$8.3
Operating Profit and Margin
Product ID
$2.7 – 13.0%
Test &
Measurement
$1.6 – 18.9%
($ in millions) ($ in millions)
Q3 FY 2018 Segment Breakdown
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Improving T&M Profitability
Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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Revenue Per Employee
$226
$259
$286$310 $315
$0
$50
$100
$150
$200
$250
$300
$350
FY 2014 FY 2015 FY 2016 FY 2017 9 MOS FY 2018
($ in thousands)
NASDAQ: ALOT
AOS Drives Productivity Improvements
Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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ANI Near-Term Priorities
• Integration of Honeywell narrow-format printer business into R.I. operation
• Completion of TrojanLabel integration
• Grow supplies business through new EMEA Logistics Hub
• Opening of new Innovation Technology Centers (ITC)
• Continued international expansion
• Further build management and technical bench strength
NASDAQ: ALOT Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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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
• Broaden product lines and recurring revenue opportunities
• Focus AOS on growing market share and operating margins
• Increase global presence
• Pursue larger bolt-on acquisitions
FY17
FY18
FY19
FY20
FY21
NASDAQ: ALOT Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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Five-Year 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
NASDAQ: ALOT
Long-range targets established in FY 2016
Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
THANK YOU
NASDAQ: ALOT 31Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
Financial Overview
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Q3 FY 2018 Financial Results Summary
In Thousands Except for Per Share Data
(Unaudited)Three Months Ended
October 28, 2017 October 29, 2016
Revenue $28,760 $23,342
Gross Profit 11,794 9,641
Gross Profit Margin (%) 41.0% 41.3%
Operating Income 1,632 1,834
Net Income 1,419 1,151
Net Income per Share – Diluted $0.21 $0.15
Weighted Avg Number of Common Shares
Outstanding – Diluted 6,821 7,594
Dividends Declared per Common Share $0.07 $0.07
NASDAQ: ALOT Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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62.8%
37.2%
57.7%32.7%
9.6%
Revenue by Product Type
Supplies
$16.6
Hardware
$9.4
Service/Other
$2.8
Revenue by Channel
Domestic
$18.1
International
$10.7
($ in millions) ($ in millions)
Q3 FY 2018 Revenue Profile
NASDAQ: ALOT Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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62.8%
37.2%
71.0%
29.0%
Revenue
Product ID
$20.5
Test &
Measurement
$8.3
Operating Profit and Margin
Product ID
$2.7 – 13.0%
Test &
Measurement
$1.6 – 18.9%
($ in millions) ($ in millions)
Q3 FY 2018 Segment Breakdown
NASDAQ: ALOT Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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Revenue Per Employee
$226
$259
$286$310 $315
$0
$50
$100
$150
$200
$250
$300
$350
FY 2014 FY 2015 FY 2016 FY 2017 9 MOS FY 2018
($ in thousands)
NASDAQ: ALOT Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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Select Consolidated Balance Sheet Data
Amounts In Thousands
(Unaudited) October 28, 2017 January 31, 2017
Cash & Marketable Securities* $11,750 $ 24,821
Current Assets $55,323 $61,696
Total Assets $110,320 $83,665
Current Liabilities $16,901 $11,985
Long-Term Debt, net of current portion $6,845 $‒
Royalty Obligation ‒ LT $8,200 $‒
Line of Credit ‒ LT $12,350 $‒
Shareholders’ Equity $62,241 $70,537
* Company repurchased 826,305 shares of common stock in Q2 FY 2018 for $11.2 million
NASDAQ: ALOT Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
THANK YOU
NASDAQ: ALOT Needham 20th Annual Growth Conference ©2018 AstroNova, Inc. all rights reserved.
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