Daktronics, Inc. · NASDAQ:DAKT
Daktronics — Sidoti Virtual Investor Conference (March 2025)
38 slides from Daktronics's conference presentation, March 2025
Slide 1: Dynamic Message Signs, Control Systems
DYNAMIC MESSAGE SIGNS March 2025 NASDAQ: DAKT CONTROL SYSTEMS
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Forward-Looking Statements: In addition to statements of historical fact, this presentation contains forward-looking statements within the meaning of the federal securities laws and is intended to receive the protections of such laws. All statements, other than historical facts
Slide 3: Company Highlights
COMPANY HIGHLIGHTS Compelling TTM TKPIs(1) Daktronics provides best-in-class audio-video displays, message displays and scoreboards to inform, entertain, and persuade audiences ~$815 Million #1 Largest North American LED video display Growing American brand by Sales(1) provider(2) revenue for past 3
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS ❑ Global industry leader in best-in-class video communication displays and control systems ❑ Only US manufacturer of scale with a global footprint and servicing by geographic market ❑ Technology leadership with high-quality products, high-touch service ❑ Large, growing domestic
Slide 5: Interconnected Systems to Inform Audiences, Entertain and Engage Fans
INTERCONNECTED SYSTEMS TO INFORM AUDIENCES, ENTERTAIN AND ENGAGE FANS Live Events International Video displays for large Video displays for large sports & live entertainment sports/entertainment venues, venues advertising, and transportation Commercial High School Park and Billboards & video display
Slide 6: Diversified Revenue
DIVERSIFIED REVENUE Live Events Q3 2025 TTM • Complex, audience, fan-driven sale NET SALES • Large projects, timing lumpy International* Commercial 10% • On-premise and out-of-home advertising reach • Distribute through Sign Co’s and AV Integrators Transportation 9% Transportation • Brand reputation
Slide 7: Global Footprint
GLOBAL FOOTPRINT : Sales and Service : Manufacturing Facility OFFICES Products in 120+ Countries throughout the world
Slide 8: Industry Leader
‘Video Was a —_— = < Digit 6 PrieeDisplays Indoor LCD Signs Freeform Elements UDsiee DAKTRONICS
Slide 9: Full-Service – Design, Manufacture, Install – Lifetime Support
FULL-SERVICE – DESIGN, MANUFACTURE, INSTALL – LIFETIME SUPPORT Innovative Design Installation and Service ▪ Flexibility, integrated systems ▪ Continuous service ▪ Quality and reliability ▪ Lifetime support ▪ Ease of content Innovative ▪ Content development management Design ▪ Constant innovation Glo
Slide 10: Global Relationships with Repeat Customers
GLOBAL RELATIONSHIPS WITH REPEAT CUSTOMERS ▪ Demonstrated success cultivates long-term relationships for replacement cycles and additional sales opportunities ▪ Grow profitably in core and adjacent customer types and geographies through strategic offering expansion tailored to customer needs ▪ Deman
Slide 11: Developing and Applying Future Technologies
Developing and Applying Future Technologies Today: • Narrow Pixel Pitch (NPP) • High Resolution Outdoor • Event Control - Live 3D rendering • Cloud based Control Platform Future potential technologies: • MicroLED – Narrow Pixel Pitch • Reflective – low power displays • Intelligent Power Management •
Slide 12: Digital Transformation Update
Digital Transformation Update Significant progress along our digital roadmap • Supporting aggressive growth, data-driving planning, and operational efficiencies • Lower maintenance IT system spend and upgrade key tools • Enterprise performant management tool platform releases • Redesign front-end qu
Slide 13: Business Transformation
Business Transformation Revenue Growth > Addressable Market: 7-10% CAGR Top quartile ROIC = 17-20% Operating • Value-based selling Margin + Growth + Higher Operating Margin: • Revenue mix diversification Capital Allocation 10-12% • New products • Structural cost reduction across Timing: supply chain
Slide 14: Summary
Summary • Global industry leader in best-in-class video communication displays and control systems • Only US manufacturer of scale with a global footprint and servicing by geographic market • Extending technology leadership, high-quality solutions, world class service • Transformation commitment tow
Slide 15: Questions?
QUESTIONS? WEC Energy Group DAKTRONICS
Slide 16: Appendix
APPENDIX University of Connecticut, East Hartford, CT
Slide 17: Fiscal Third Quarter 2025 Highlights
FISCAL THIRD QUARTER 2025 HIGHLIGHTS Drove sequential order growth in the third quarter • Commercial orders continue to increase strongly • Secured order for a major NFL stadium in Live Events unit • International orders rebounded • FQ3 Orders -2.7% YoY, +5.2% QoQ, +1.2% YTD Mitigated seasonal dynam
Slide 18: Market Vertical – FQ3 Review
MARKET VERTICAL – FQ3 REVIEW Live Events International • Won major project with SE NFL team • Orders 142% YoY / +34% QoQ • Soft MLB near-term demand • Strength in order wins from OOH • Orders -18% YoY / +11% QoQ customers • Akron Rubberducks minor league • Bids converting to purchases at higher base
Slide 19: Transformation Update – Momentum from Launched Initiatives
Transformation Update – Momentum from Launched Initiatives, Next 6 Months’ Focus Driving profitable growth • Value-based pricing changes – service parts and certain products • Launch of SaaS product trials to target customers • Prioritizing high-growth international geographies and segments Driving
Slide 20: Live Events Business Unit
LIVE EVENTS BUSINESS UNIT Minnesota Twins
Slide 21: Live Events
LIVE EVENTS » Video display solutions for large sports venues and live entertainment facilities • Professional sports • College and university • Arenas » Competition University of Kansas • Samsung, SNA Displays, Leyard, ANC, Yaham, Mitsubishi, and others • Asian competition through U.S. integrators
Slide 22: 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 • Attract athletes » Lower product costs and technological advances, driving expansion of marketplace » High definition
Slide 23: High School Park and Recreation (HSPR) Business Unit
HIGH SCHOOL PARK AND RECREATION (HSPR) BUSINESS UNIT Jackson Academy, MS
Slide 24: 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 Ellsworth High School, WI Carroll High School, IN
Slide 25: 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, Nevco, Spectrum, Elec
Slide 26: Commercial Business Unit
COMMERCIAL BUSINESS UNIT Lakeside Casino, IA Astral Media Outdoor, Canada Caliber Car Wash, SC
Slide 27: Commercial
COMMERCIAL » Sales channel focus • Third party advertising/Out of Home Advertising (OOH) • On-premise advertising (retail) • AV Integrator and Spectacular (custom video) » Customers include sign and billboard companies, national retailers, quick-serve restaurants, casinos, shopping malls, and petrol
Slide 28: Commercial Long-Term Growth Drivers
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 Hollywood Casino, OH • Replacement cycle (7-10
Slide 29: Transportation Business Unit
TRANSPORTATION BUSINESS UNIT New Jersey Turnpike Long Island Rail Road, NY
Slide 30: Transportation
TRANSPORTATION » Three niches • Intelligent transportation systems (ITS) • Airports • Mass Transit » Customers include governmental transportation departments, industry Orange County Convention Center, Orlando FL contractors, airlines, mass transit, and other related customers Appleton International
Slide 31: 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 Seattle Monorai
Slide 32: International Business Unit
INTERNATIONAL BUSINESS UNIT Mall of Qatar Doha, Qatar
Slide 33: International
INTERNATIONAL Wide range of products coupled with geographic coverage » Commercial video systems » Sports video systems » Digital billboard (OOH) » Architectural lighting » Transportation systems SK Hynix Supex – Gyeonggi-do, Republic of Korea Customers include companies focused on sports, Lusail St
Slide 34: International Growth Opportunities
INTERNATIONAL » Growth opportunities • 3rd party advertising/Out of Home Advertising • Live Events facilities/sports • European/Middle East Hills Estate Mall – Dubai, UAE transportation systems Xin Chang Museum – Beijing, China • Increased geographical coverage » Competitors: Absen, Samsung, Aoto, L
Slide 35: Financial Information
FINANCIAL INFORMATION NASCAR Hall of Fame Rivers Casino Premier Bankcard Charlotte, NC Portsmouth, VA Sioux Falls, SD
Slide 36: FQ3 FY2025 Financial Highlights
FQ3 FY2025 FINANCIAL HIGHLIGHTS ($ in millions, except per share data) Orders (1) Net Sales Gross Margin Operating Margin(2) Q3 F25 Q2 F25 Q3 F24 Q3 F25 Q2 F25 Q3 F24 Q3 F25 Q2 F25 Q3 F24 Q3 F25 Q2 F25 Q3 F24 FQ3 2025 $208 operating $187 $192 26.8% expenses include $178 $170 24.6% $4.8 million in $1
Slide 37: YTD FY2025 Financial Highlights
YTD FY2025 FINANCIAL HIGHLIGHTS ($ in millions, except per share data) Orders (1) Net Sales Gross Margin Operating Margin(2) FY 2025 FY 2024 FY 2025 FY 2024 FY 2025 FY 2024 FY 2025 FY 2024 YTD 2025 operating $584 $602 expenses include $9.0 $541 27.7% million in costs $534 26.1% associated with 11.2%
Slide 38: NASDAQ: DAKT
DYNAMIC MESSAGE SIGNS NASDAQ: DAKT CONTROL SYSTEMS
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