Slide 1: Third Quarter Fiscal 2023
THIRD QUARTER FISCAL 2023 NASDAQ: DAKT
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT In addition to statements of historical fact, this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and is intended to enjoy the protection of that Act. All forward-looking statements involve risks and u
Slide 3: Daktronics Vision
DAKTRONICS VISION To be the world leader at informing and entertaining audiences through dynamic audio-visual communication systems.
Slide 4: Daktronics Mission
DAKTRONICS MISSION Our Values Reflect our Mission Every day, our values are reflected in the way we build our products and our relationships. We deliver industry-leading value to our customers by: ooo @o 6 Engaging our Developing Leveraging our Contributing to Generating an employees strategic stren
Slide 5: Daktronics at a Glance
DAKTRONICS AT A GLANCE Daktronics provides best-in-class LED video displays, message displays and scoreboards to inform and entertain audiences Company Highlights Global Footprint 1) A global industry leader in audio-visual communication systems with underlying best-in-class LED display products 2)
Slide 6: Full-Service Design and Manufacturer / Highly Effective Sales Structure
FULL-SERVICE DESIGN AND MANUFACTURER / HIGHLY EFFECTIVE SALES STRUCTURE Manufacturer that Best Addresses Customer Needs Daktronics Reliability Lab ▪ Key placement of manufacturing facilities in the US, Ireland and ▪ Daktronics established its own extensive on-site Reliability Lab that China promote
Slide 7: Dependable LED Market Opportunity
DEPENDABLE LED MARKET OPPORTUNITY ($US Billions) Increased Global Demand Bolsters Pipeline & Stable Cash Flows Worldwide LED Video Display Sales by Region ▪ 2022 annual LED market growth rebounded to 26.6% after global lockdowns caused Americas EMEA APAC $18.8 a 4.6% slowdown in FY 2021 ▪ Growth exp
Slide 8: Industry Leader
» |e 7 BUCKSKINS ¥-* TOGO BALLON QTR Digit & Price Displays Indoor LCD Signs Digital Street Furniture Elements JEL, TIME) TO: bs) ITS Dynamic Message Signs Sound Systems 20 vIn @ io Digital Billboards LED Signs
Slide 9: Year History: Fiscal Year Sales and Operating Income
10 Year History: Fiscal Year Sales and Operating Income (%)(1) in millions $700 10% Operating Income (Loss) $616 $611 $609 $611 $587 $570 $600 $552 $570 $518 8% $482 $500 5.1% 6% 6.6% SALES $400 5.9% 4% 2.6% $300 2.0% 4.0% 0.4% 1.0% 2% $200 $100 0% (0.8%) 0.0% - -2% 2013 2014 2015 2016 2017 2018 201
Slide 10: Near-Term Strategies
NEAR-TERM STRATEGIES Current Near-Term Strategies are Catalyzing Demand, Retention and Fulfillment Liquidity Enhancement Program Demand Prioritization Predictability in Operations Focus on Differentiation ■ Focusing on cash generation by unlocking ■ Protect and improve profitability ~$429mm backlog(
Slide 11: More about Daktronics
More about Daktronics 10 YEAR HISTORY ✓ 52/53 Week Fiscal Years ending in April DILUTED EARNINGS PER SHARE (after adjustment for splits) ✓ Seasonality to results (Sports/Construction Fiscal Year Q1 Q2 Q3 Q4 season) 2013 + 0.16 + 0.27 + 0.06 + 0.04 2014 + 0.13 + 0.27 + 0.07 + 0.04 ✓ Video systems com
Slide 12: Business Unit Recap
Business Unit Recap ✓ Live Events, Commercial, Transportation, and High School Park and Recreation, include net sales in the United States and Canada ✓ International net sales include rest of world and are primarily for solutions for large sports venues, spectaculars, third-party advertising, and tr
Slide 13: Live Events Business Unit
LIVE EVENTS BUSINESS UNIT New England Patriots
Slide 14: Live Events
LIVE EVENTS » Video display solutions for large sports venues and live entertainment facilities • Professional sports • College and university • Arenas » Competition FC Cincinnati • Prismview (Division of Samsung), Leyard, ANC, Yaham, Mitsubishi, Panasonic, and others • Asian competition through U.S
Slide 15: Live Events Demand Drivers
LIVE EVENTS Demand Drivers » Facility increased spend to: • Enhance attendee event experience • Revenue source from advertising • Competitive nature to outperform other facilities » Lower product costs and technological advances, driving expansion of marketplace » High definition product offering (H
Slide 16: High School Park and Recreation (HSPR) Business Unit
HIGH SCHOOL PARK AND RECREATION (HSPR) BUSINESS UNIT River Falls High School, Wisconsin
Slide 17: HSPR
HSPR » Video and scoring systems and message centers to • Elementary and high schools, junior colleges • Park and recreation departments » Primary funding is through local sponsors and advertisers West Branch High School, Ohio Aberdeen Central High School, SD
Slide 18: HSPR Growth Drivers
HSPR »Growth Drivers • Larger more sophisticated displays in sports venues • Revenue generation • Communication medium • New construction/replacement cycles • Offerings for academic curriculum usage and mobile scoring solutions »Competitors • Fair-Play by Translux, Scorevision, Translux, Nevco, Spec
Slide 19: Commercial Business Unit
COMMERCIAL BUSINESS UNIT Wilderness Resort Book Your Billboard Pendry West Hollywood Hotel Baraboo, WI Sioux Falls, SD West Hollywood, CA
Slide 20: Commercial
COMMERCIAL » Sales channel focus • Third party advertising/Out of Home Advertising (OOH) • On-premise advertising (retail) • Spectacular (custom video) » Customers include sign and billboard companies, national retailers, quick-serve Marquee Media, Sacramento, CA restaurants, casinos, shopping malls
Slide 21: Commercial Growth Drivers and Competitors
COMMERCIAL » Long-term growth drivers • Market adoption, including National Accounts • Spectacular use to entertain/advertise in unique locations • Effective advertising medium (outdoor and indoor networks) – increased customer foot-traffic for customer George Chevrolet Bellflower, CA • Replacement
Slide 22: Transportation Business Unit
TRANSPORTATION BUSINESS UNIT Project NEON, Nevada DOT Ft. Lauderdale-Hollywood International Airport
Slide 23: Transportation
TRANSPORTATION » Three niches • Intelligent transportation systems (ITS) • Airports • Mass Transit » Customers include governmental transportation departments, industry contractors, airlines, mass transit, and other related customers » Competitors • Skyline • Ledstar • Telegra • Sunrise SESA Technol
Slide 24: Transportation Long-Term Growth Drivers
TRANSPORTATION » Long-term growth drivers • Transportation management - increasing traffic demands on constrained infrastructure expanding use of dynamic messaging systems • Governmental funding and investment in infrastructure projects • Infographic communication • Advertising needs Minneapolis-St.
Slide 25: International Business Unit
INTERNATIONAL BUSINESS UNIT National Museum of Qatar Doha, Qatar
Slide 26: International
INTERNATIONAL Wide range of products coupled with geographic coverage » Commercial video systems » Sports video systems » Digital billboard (OOH) » Architectural lighting » Transportation systems Marina Mall - Dubai Customers include companies focused on sports, advertising, transportation and retai
Slide 27: International Growth Opportunities
INTERNATIONAL » Growth opportunities • 3rd party advertising/Out of Home Advertising • Live Events facilities/sports • European/Middle East Tochigi City Football Club - Japan transportation systems • Increased geographical coverage » Competitors: Absen, Samsung, Aoto, Leyard, Unilumen, Mitsubishi, L
Slide 28: Looking Ahead
LOOKING AHEAD Westfield Manukau City – Circa Resort and Casino – Krispy Kreme – Auckland, New Zealand Las Vegas, Nevada, USA New York, New York, USA
Slide 29: Near-Term Expectations
NEAR-TERM EXPECTATIONS FY2023 focus - ✓ Maximizing productivity, balancing constraints expected (supply chain) ✓ Strategic investments in our capacity additions for elevated demand and future demand expectations ✓ Managing headwinds in material, labor, freight availability, and inflation ✓ Offering
Slide 30: Achieving Long-Term Profitable Growth & Shareholder Value Creation
ACHIEVING LONG-TERM PROFITABLE GROWTH & SHAREHOLDER VALUE CREATION - Growth ✓Continued global market adoption and expansion ✓Providing industry leading solutions and services ✓Natural Replacement cycle ✓Brand of choice and value to customers ✓Continued investment in new and advancement in technologi
Slide 31: Supplemental Information
SUPPLEMENTAL INFORMATION DAKTRONICS
Slide 32: Solution Examples
Content Compositing Live Data Integration Media Players & P DAKTRONICS
Slide 33: FY2022 Annual Results
FY2022 ANNUAL RESULTS ($ in thousands, except per share data) Twelve Months Ended 30-Apr 1-May Percent 2022 2021 Change Orders(1) $ 846,071 $ 515,884 64.0% Net sales $ 610,970 $ 482,033 26.7% Gross profit 116,697 120,583 -3.2% Gross margin 19.1% 25.0% Operating income 4,046 17,108 -76.4% Operating m
Slide 34: FY2023 Third Quarter Results
FY2023 THIRD QUARTER RESULTS ($ in thousands, except per share data) Three Months Ended 28-Jan 29-Jan Percent 2023 2022 Change Orders $ 148,375 $ 214,789 -30.9% Net sales $ 184,975 $ 139,558 32.5% Gross profit 41,713 22,308 87.0% Gross margin 22.6% 16.0% Operating income 7,118 (5,680) 225.3% Operati
Slide 35: FY2023 YTD Results-to Q3
FY2023 YTD RESULTS-TO Q3 ($ in thousands, except per share data) Nine Months Ended 28-Jan 29-Jan Percent 2023 2022 Change (1) Orders $ 501,405 $ 560,242 -10.5% Net sales $ 544,334 $ 448,767 21.3% Gross profit 99,211 86,760 14.4% Gross margin 18.2% 19.3% Operating income 3,125 4,365 -28.4% Operating
Slide 36: Year History Free-Cash Flow
10 Year History Free-Cash Flow* FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Net cash from operations $ 50,749 $ 36,199 $ 54,702 $ 13,354 $ 39,407 $ 30,361 $ 29,546 $ 10,808 $ 66,212 $ (26,830) Net capital expenditures (9,476) (13,281) (24,830) (23,963) (8,304) (15,948) (16,
Slide 37: Technology
DYNAMIC MESSAGE SIGNS TECHNOLOGY CONTROL SYSTEMS