Slide 1: Fourth Quarter Fiscal 2020
FOURTH QUARTER FISCAL 2020 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: World 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 6: Around the Globe
: Sales Office : Manufacturing Facility Products in 120+ Countries OFFICES throughout the world AROUND THE GLOBE
Slide 7: 10 Year History Sales & Operating Income %
10 YEAR HISTORY SALES & OPERATING INCOME %
Slide 8: 10 Year History Free-Cash Flow
10 Year History Free-Cash Flow* FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Net cash from operations $ 41,346 $ 20,038 $ 50,749 $ 36,199 $ 54,702 $ 13,354 $ 39,407 $ 30,361 $ 29,546 $ 10,808 Net capital expenditures (9,148) (16,293) (9,476) (13,281) (24,830) (23,963) (8,304
Slide 9: 10 Year History Return to Shareholders
10 Year History Return to Shareholders Total Regular Annualized Special Fiscal Dividend Dividend/ Dividend Dividend/ ✓ Long-term dividend history (see Year Share Yield Share Payout chart to the right) (000’s) 2011 0.100 2.5% 0.500 24,795 2012 (1) 0.220 1.9% 0.400 25,950 ✓ Share Repurchase program 20
Slide 10: 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) 2011 + 0.06 + 0.17 + 0.04 + 0.07 2012 + 0.08 + 0.09 + 0.04 - 0.01 ✓ Video systems com
Slide 11: FY2020 Fourth Quarter Results
FY2020 FOURTH QUARTER RESULTS ($ in thousands, except per share data) Three Months Ended 2-May 27-Apr Percent 2020 2019 Change Orders $ 147,168 $ 162,485 -9.4% Net sales $ 126,108 $ 127,756 -1.3% Gross profit 28,626 24,421 Gross margin 22.7% 19.1% Operating income (3,454) (10,265) 66.4% Operating ma
Slide 12: FY2020 Annual Results
FY2020 ANNUAL RESULTS ($ in thousands, except per share data) Twelve Months Ended 2-May 27-Apr Percent 2020 (53 Weeks) 2019 Change Orders $ 620,778 $ 608,880 2.0% Net sales $ 608,932 $ 569,704 6.9% Gross profit 138,700 130,294 Gross margin 22.8% 22.9% Operating income (167) (4,728) 96.5% Operating m
Slide 13: 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 14: Live Events Business Unit
LIVE EVENTS BUSINESS UNIT Kansas City Chiefs
Slide 15: Live Events
LIVE EVENTS » Video display solutions for large sports venues and live entertainment facilities • Professional sports • College and university • Arenas » Competition Ralph Englestad Arena • Mitsubishi, Lighthouse, Panasonic, Prismview (Division of Samsung) and others • Asian competition through U.S.
Slide 16: 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, driving expansion of marketplace » High definition product offering (HD) » Replacement cycle (sys
Slide 17: High School Park and Recreation (HSPR)
HIGH SCHOOL PARK AND RECREATION (HSPR) Brentwood High School, Brentwood, MO
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 Centennial High School, Utica, NE City of Saint Peters, Saint Peters, MO
Slide 19: HSPR Growth Drivers
HSPR »Growth Drivers • Larger more sophisticated displays in sports venues • Revenue generation • Communication medium • New construction/replacement cycles • Curriculum usage »Competitors Shawnee Mission Aquatics Center, Lenexz, KS • Formetco, Scorevision, Translux, Nevco, other smaller company man
Slide 20: Commercial Business Unit
COMMERCIAL BUSINESS UNIT Discount Drug Mart McDonalds Times Square Canton, OH New York, NY
Slide 21: Commercial
COMMERCIAL » Sales channel focus • Third party advertising/Out of Home Advertising (OOH) • On-premise advertising (retail) • Spectacular (custom video) Marquee Media, Sacramento, CA » Primary offerings • Digital billboards • Message centers • Video display systems/display walls • Petroleum displays
Slide 22: Commercial
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) • Replacement cycle (7-10 years) • Architectural lighting Steven Tanger Center for the Perfor
Slide 23: Transportation Business Unit
TRANSPORTATION BUSINESS UNIT Parks Canada Agency Calgary, Alberta Colorado Department of Transportation
Slide 24: Transportation
TRANSPORTATION » Three niches • Intelligent transportation systems (ITS) • Airports • Mass Transit » Competitors • Skyline, Ledstar, Telegra, SES-America, Imago, others Intelligent Transit Systems (ITS) Penn Turnpike, Norristown Interchange, PA
Slide 25: Transportation
TRANSPORTATION » Long-term growth drivers • Transportation management - increasing traffic demands on constrained infrastructure • Governmental funding and investment in infrastructure projects • Infographic communication • Advertising needs Richmond International Airport, Richmond, VA Public Transp
Slide 26: International Business Unit
INTERNATIONAL BUSINESS UNIT Tottenham Hotspur Football & Athletic Co Ltd London, UK
Slide 27: International
INTERNATIONAL Main products » Commercial video systems » Sports video systems » Digital billboard (OOH) » Architectural lighting Schweizerische Bundesbahnen - Lucerne, Switzerland » Transportation systems Infrastructure » World-wide sales & service offices » International Manufacturing: • China- arc
Slide 28: International
INTERNATIONAL » Growth opportunities • 3rd party advertising/Out of Home Advertising • Live Events facilities/sports • European/Middle East transportation systems • Increased geographical coverage » Competitors: Absen, Samsung, Aoto, Leyard, Unilumen, Mitsubishi, Lighthouse, Emaar Cafe – Dubai Panas
Slide 29: Looking Ahead
LOOKING AHEAD Westfield Manukau City – Tottenham Hotspur Football & Barclays Capital – Auckland, New Zealand Athletic Co Ltd – London, UK New York, New York, USA
Slide 30: Near-Term Expectations
NEAR-TERM EXPECTATIONS COVID-19 Impact created business uncertainty ✓ Business areas impacted differently (Advertising, Events, Tax funding) ✓ Timing, longevity and shape of economic recovery not clear FY2021 focus on prudently managing capacity to demand. ✓ Reduced costs related to personnel, contr
Slide 31: Achieving Long-Term Profitable Growth
ACHIEVING LONG-TERM PROFITABLE GROWTH Over the long-term Continued Global Demand Growth: ✓Continued global market adoption and expansion ✓Natural Replacement cycle ✓Industry leading solutions and continued investment in new technologies ✓Worldwide economic conditions The Colosseum at Caesars Fiserv
Slide 32: Solution Examples
— a a > oS | Content Compositing DAKTRONICS
Slide 33: Technology
DYNAMIC MESSAGE SIGNS TECHNOLOGY CONTROL SYSTEMS
Slide 34: Questions
Slide 35: 10 Year History Supplemental Information
10 YEAR HISTORY SUPPLEMENTAL INFORMATION