AstroNova : Colliers Securities Institutional Investor Conference Presentation

THE DATA VISUALIZATION TECHNOLOGY COMPANY

Colliers Securities

Institutional Investor Conference

Greg Woods, President and CEO

David Smith, CFO

September 10, 2020

Safe Harbor and

Non-GAAP Financial Measure Provisions

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 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, 2020 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 presented in this presentation.

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this presentation contains the non-GAAP financial measure EBITDA. The Company believes that this non-GAAP financial measure helps investors to gain a meaningful understanding of changes in the Company's core operating results, and also can help investors who wish to make comparisons between AstroNova and other companies on both a GAAP and a non-GAAP basis. AstroNova's management uses this non-GAAP measure, in addition to GAAP financial measures, as the basis for measuring its core operating performance and comparing such performance to that of prior periods and to the performance of its competitors. These measures are also used by the Company's management to assist with their financial and operating decision-making.Non-GAAP financial measures are not a substitute for GAAP financial measures and may not be comparable to similarly titled measures of other companies.

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Data

Visualization

Technology

Investment Thesis

1

2

3

4

5

6

Leading market positions and brands

Continuous improvement culture

Expanding global footprint

Robust product development pipeline

Recurring revenue > 50%

Track record of successful M&A

4

Resilient and Nimble COVID-19 Response

HEALTH & WELLBEING TOP PRIORITY

Shifted significant number of team members to offsite working while enhancing cleaning and protection procedures at production facilities.

BUSINESS CONTINUITY

Maintained production while keeping health and safety of employees, customers, suppliers and communities at the forefront of our attention.

ADDRESSING IMPACTS

Reducing costs to address weakness in aerospace market due to COVID-19 and 737 MAX production halt.

PLAYING OFFENSE

Taking actions to enhance ecommerce and digital sales capabilities while capitalizing on demand strength in key end markets.

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Key Actions to Strengthen Financial Position Amid Pandemic

Reduced headcount by

5% due to 737 MAX

grounding

Reallocated resources to enhance near-term liquidity

Received $4.4 million

loan under SBA's

Paycheck Protection

Program

Reduced executive

compensation

Temporarily suspended

quarterly dividend

Renegotiated credit facility with existing lender

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Growth Playbook - 4 Key Elements

PRODUCT INNOVATION

STRATEGIC M&A

GEOGRAPHIC EXPANSION

OPERATIONAL EXCELLENCE

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Comprehensive Product Portfolio

Executing a common strategic vision across three lines of business

• Professional Digital Color Label Presses
• Specialty Printers
• Color Inkjet Label Printers
• Digital LED Toner (EP) Printers
• Thermal Transfer Printers
• Media, Inks, Toner and Supplies
• Label Design and Management Software

•	Narrow-format Airborne		•	Data Acquisition
	Printers			Systems
•			•	Data Recorders and
Wide-format Airborne
		Printers
	Printers
•	Airborne Ethernet		•	I/O Modules
	•	Data Visualization and
	Switches
		Analysis Software
•	Aviation Printer Paper	•
Thermal Paper and
	and Supplies
		Supplies

• Global Aviation Repair Facilities

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Market Profile and Segmentation

Economically diverse business with high recurring revenue

Revenue by Segment - TTM Q2 FY21	Revenue by Type - TTM Q2 FY21
	($ in millions)				($ in millions)
				Service/other	$11.1
				9%
Test &	$36.0
Measurement			Hardware $41.0
29%	$90.4	$86.4		$70.3	Supplies
$50.9	Product ID	34%
			71%		57%

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Driving Digital Engagement Through New Product ID Microsite

https://demos.astronovaproductid.com/

Virtual Demos

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Growing Consumables Demand in Key "Essential" Markets

Cleaning & Sanitation

Medical Supplies & PPE

Pharmaceuticals

Food & Bev, CBD, E-juice & Oils

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Expanding International Presence

Plus over 165 Dealers

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Worldwide Installed Base

Customers in 155 Countries

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AstroNova Operating System

It's not just what we do, but how we do it

Continuous Improvement

Through operational excellence

and lean initiatives, we

consistently strive to increase efficiency and enhance margins

One GlobalTeam

We work as a unified

organization in a data-driven

environment that fosters mutual

trust and respect

Innovation

Stage-Gate methodology

accelerates and streamlines the product development process

Building Value

Our customer-centric

philosophy ensures we deliver superior quality, delivery, cost and growth

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Product Identification Segment

New Solutions Enhance Customers' Capabilities

QL-300	QL-120X
CMYK+ White	Industry-best
2-year warranty

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TrojanLabel Expands Addressable Product ID Market

• Manufacturer of digital color label presses and specialty printing systems

• Strong presence in EMEA and Asia

• Added 50 dealer partners worldwide

Digital Color Label Printer Market

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Growth Opportunities in Digitally Printed Labels and Packaging

Industry Spending

$31.6

billion

$18.6

billion

20192024

• Increasing demand for short run and versioned products
• Corrugated, cartons and flexible packaging
• Labels account for ~15% of total market

Source: Smithers Pira, Company estimates

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Test & Measurement Segment

New Printers and Data Acquisition Recorders

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Strategic Acquisitions in T&M Segment

AcquisitionYear

Honeywell2017

RITEC2016

Miltope2014

Flight deck

printer

Ethernet switch

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Addressing the Major Tiers of the Aerospace Value Chain

Aircraft

OEMs

Tier 1

integrators

Airline Direct

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737 MAX/Aerospace Industry Update

Aerospace business

heavily impacted by 737 MAX production halt and COVID-19

Expect 737 MAX to be highly successful, but current production plans call for prolonged recovery

Airline travel appears to

have bottomed; Pace and timing of recovery uncertain

Longer-term dynamics appear strong, especially for narrow-body aircraft

737 MAX assembly line restarted end of May 2020

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Revenue and Profitability

$160

$140

$120

$100

$80

$60

$40

$20

$0

Revenue

($ in millions)

			$10.0
	$136.7	$133.4
	$113.4		$8.0
$94.7	$98.4
			$6.0
			$4.0
			$2.0
			$0.0
FY 2016 FY 2017 FY 2018 FY 2019	FY 2020

Net income

($ in millions)

$5.7

$4.5 $4.4

$3.3

$1.8

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

EBITDA*

($ in millions)

$20

$16
		$14.4
$12
	$9.2	$9.6
$9.0
$8.3
$8

$4

$0

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

• Please refer to the appendix in this presentation for a reconciliation of EBITDA to the nearest GAAP equivalent.

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Growth Playbook - 4 Key Elements

PRODUCT INNOVATION	STRATEGIC M&A	GEOGRAPHIC EXPANSION	OPERATIONAL EXCELLENCE
Innovating new products and	Acquiring fairly-valued assets	Identifying new markets where	Rigorously applying the
expanding our relationships	that strengthen our core	our technology and products	AstroNova Operating System
with customers across our	competencies, extend our	represent a competitive	suite of lean business
Product Identification and Test	technology advantage to new	advantage, and building our	management tools to
& Measurement segments	end markets or add	network of Innovation	continuously improve our cost,
	complementary technologies	Technology Centers	delivery, and quality across the
			entire enterprise

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Investment Thesis

1

2

3

4

5

6

Leading market positions and brands

Continuous improvement culture

Expanding global footprint

Robust product development pipeline

Recurring revenue > 50%

Track record of successful M&A

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Questions?

Appendix

Q2 FY 2021 Financial Results Summary

In Thousands, Except for Per Share Data	Three Months Ended
(Unaudited)
	August 1, 2020	August 3, 2019
Revenue	$	27,658	$	33,468
Gross Profit		9,787		11,977
Gross Profit Margin (%)		35.4%		35.8%
Operating Income, net		204		1,163
Net Income		3		951
Net Income per Common Share - Diluted	$	0.00	$	0.13
Weighted Avg Number of Common Shares Outstanding - Diluted				7,371
	7,123

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Select Consolidated Balance Sheet Data

Amounts In Thousands (Unaudited)

August 1, 2020

January 31, 2020

Cash & Cash Equivalents	$	11,235	$	4,249
Current Assets		61,318		60,151
Total Assets		116,479		116,664
Current Liabilities		20,229		26,767
Long-Term Debt, net of current portion		9,859		7,715
Royalty Obligation, net of current portion		7,087		8,012
Total Shareholders' Equity	$	72,557	$	71,375

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Reconciliation of Net Income to EBITDA

($ in thousands)

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Net Income	$	4,525	$	4,428		$	3,286	$	5,730	$		1,759
Interest Income			(72)			(78)		(168)			(145)				(143)
Interest Expense			-			-			402			876				826
Income Tax Expense			2,384			2,377			1,871			1,578				(390)
Depreciation/Amortization			2,020			2,431			4,017			6,154				6,295
EBITDA		$	8,857	$	8,958		$	9,408		$	14,193			$	8,347

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