Slide 1: Fourth Quarter Fiscal 2023
FOURTH 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. These forward-looking statements reflect the Compa
Slide 3: 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 4: Daktronics Vision
DAKTRONICS VISION To be the world leader at informing and entertaining audiences through dynamic audio-visual communication systems.
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, Manufacturer, Installation, Service Provider
FULL-SERVICE: DESIGN, MANUFACTURER, INSTALLATION, SERVICE PROVIDER Full-service Design Best Addresses Customer Needs ▪ High quality standard display products, platform designs investments ▪ Custom designed and integrated systems offerings ▪ Long-term quality and reliability standards to perform in i
Slide 7: Full-Service Design, Manufacturer, Installation, Service Provider
FULL-SERVICE DESIGN, MANUFACTURER, INSTALLATION, SERVICE PROVIDER Manufacturer that Best Addresses Customer Needs Installation and Service Provider ▪ Continuous service and support post- ▪ Key placement of manufacturing facilities in the US, Ireland and China sale provides critical needs to customer
Slide 8: 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 2021 per industry re
Slide 9: 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 10: 10 Year History: Fiscal Year Sales and Operating Income
10 Year History: Fiscal Year Sales and Operating Income (%)(1) 1) Daktronics’ operates on a 52- or 53-week fiscal year, with its fiscal year ending on the Saturday closest to April 30 of each year.
Slide 11: FY2024 Strategies
FY2024 STRATEGIES Growing business profitably Operational Efficiency Market Development Investing in high-return ■ Focusing on cash generation by unlocking projects & technologies ■ Predictability is key to the ~$401mm backlog(1), which requires: Company’s long-term ■ Drive Narrow Pixel Pitch (NPP)
Slide 12: 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 13: Additional Detail about our Diversified Business Units
Additional Detail about our Diversified Business Units ✓ 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, spectacula
Slide 14: Live Events Business Unit
LIVE EVENTS BUSINESS UNIT Minnesota Twins
Slide 15: Live Events
LIVE EVENTS » Video display solutions for large sports venues and live entertainment facilities • Professional sports • College and university • Arenas » Competition Arizona State University • Prismview (Division of Samsung), Leyard, ANC, Yaham, Mitsubishi, Panasonic, and others • Asian competition
Slide 16: High School Park and Recreation (HSPR) Business Unit
HIGH SCHOOL PARK AND RECREATION (HSPR) BUSINESS UNIT Jackson Academy, MS
Slide 17: 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 18: 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 Milbank High School, SD Perry Central High School, KY
Slide 19: 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 20: Commercial Business Unit
COMMERCIAL BUSINESS UNIT Lakeside Casino, IA Astral Media Outdoor, Canada Caliber Car Wash, SC
Slide 21: 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 Software One, WI restaurants, casinos, shopping malls, and petrole
Slide 22: Commercial 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 23: Transportation Business Unit
TRANSPORTATION BUSINESS UNIT Florida International University, FL Long Island Rail Road, NY
Slide 24: 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 Appleton International Airport, WI Transport Infrastructure, Irela
Slide 25: Transportation 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 26: International Business Unit
INTERNATIONAL BUSINESS UNIT Mall of Qatar Doha, Qatar
Slide 27: 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 28: 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 29: Financial Information
FINANCIAL INFORMATION NASCAR Hall of Fame Rivers Casino Premier Bankcard Charlotte, NC Portsmouth, VA Sioux Falls, SD
Slide 30: FY2023 Fourth Quarter Results
FY2023 FOURTH QUARTER RESULTS ($ in thousands, except per share data) Three Months Ended 29-Apr 30-Apr Percent 2023 2022 Change Orders $ 179,550 $ 285,829 -37.2% Net sales $ 209,862 $ 162,203 29.4% Gross profit 52,144 29,938 74.2% Gross margin 24.8% 18.5% Operating income 18,263 (319) 5825.1% Operat
Slide 31: FY2023 Annual Results
FY2023 ANNUAL RESULTS ($ in thousands, except per share data) Twelve Months Ended 29-Apr 30-Apr Percent 2023 2022 Change (1) Orders $ 680,954 $ 846,071 -19.5% Net sales $ 754,196 $ 610,970 23.4% Gross profit 151,355 116,697 29.7% Gross margin 20.1% 19.1% Operating income 21,388 4,046 428.6% Operatin
Slide 32: 10 Year History Free Cash Flow
10 Year History Free-Cash Flow* FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Net cash from operations $ 36,199 $ 53,513 $ 13,283 $ 39,407 $ 30,361 $ 29,546 $ 10,808 $ 66,212 $ (27,035) $ 15,024 Net capital expenditures (13,281) (17,800) (16,904) (8,303) (15,948) (16,661) (17
Slide 33: 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 34: 10 Year History Supplemental Information
10 YEAR HISTORY SUPPLEMENTAL INFORMATION FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Net sales $551,970 $615,942 $570,168 $586,539 $610,530 $569,704 $608,932 $482,033 $610,970 $754,196 Gross profit 141,710 144,579 121,019 140,415 145,669 130,294 138,700 120,583 116,697 151,
Slide 35: Technology
DYNAMIC MESSAGE SIGNS TECHNOLOGY CONTROL SYSTEMS