Slide 1: Second Quarter Fiscal 2024
SECOND QUARTER FISCAL 2024 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 Company Highlights
DAKTRONICS COMPANY HIGHLIGHTS Daktronics provides best-in-class LED video displays, message displays and scoreboards to inform and entertain audiences 1) A global industry leader in audio-visual communication systems with underlying best-in-class LED display products 2) The only manufacturer of scal
Slide 6: Daktronics Company Highlights
DAKTRONICS COMPANY HIGHLIGHTS Our customers use our interconnected systems to inform audiences, entertain and engage fans at live sports, shows & events, and persuade through advertising at high-traffic multiple venue locations Live Events International ▪Video displays for large ▪Video displays for
Slide 7: Global Footprint Around the Globe
DAKTRONICS COMPANY HIGHLIGHTS - GLOBAL FOOTPRINT : Sales Office : Manufacturing Facility Products in 120+ Countries OFFICES throughout the world AROUND THE GLOBE
Slide 8: Compelling FY2023 KPIs
DAKTRONICS COMPANY HIGHLIGHTS Compelling FY2023 KPIs(1) ~$754 Million >20% Largest Sales Gross Margin Growing American brand by revenue for past 3-years(2) ~$30 Million ~4% 12K+ EBITDA(3)(4) EBITDA Margin(3)(4) Total customers(5) #1 120+ 3rd North American LED video display Countries featuring Large
Slide 9: Full-Service: Design, Manufacturer, Installation, Service Provider
FULL-SERVICE: DESIGN, MANUFACTURER, INSTALLATION, SERVICE PROVIDER Full-service Design Best Addresses Customer Needs ▪ High quality standard display products, platform designs investments ▪ Custom designed and integrated systems offerings ▪ Long-term quality and reliability standards to perform in i
Slide 10: Full-Service Design, Manufacturer, Installation, Service Provider
FULL-SERVICE DESIGN, MANUFACTURER, INSTALLATION, SERVICE PROVIDER Manufacturer that Best Addresses Customer Needs Installation and Service Provider ▪ Continuous service and support post- ▪ Key placement of manufacturing facilities in the US, Ireland and China sale provides critical needs to customer
Slide 11: Dependable LED Market Opportunity
DEPENDABLE LED MARKET OPPORTUNITY ($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 12: Industry Leader
Vidoo Walle x = : | : , : DAKTRONICS
Slide 13: 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 14: 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 15: 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 16: 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 17: Live Events Business Unit
LIVE EVENTS BUSINESS UNIT Minnesota Twins
Slide 18: 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 19: 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 20: High School Park and Recreation (HSPR) Business Unit
HIGH SCHOOL PARK AND RECREATION (HSPR) BUSINESS UNIT Jackson Academy, MS
Slide 21: 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 22: 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 23: Commercial Business Unit
COMMERCIAL BUSINESS UNIT Lakeside Casino, IA Astral Media Outdoor, Canada Caliber Car Wash, SC
Slide 24: 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 25: 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 26: Transportation Business Unit
TRANSPORTATION BUSINESS UNIT New Jersey Turnpike Long Island Rail Road, NY
Slide 27: 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 28: 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 29: International Business Unit
INTERNATIONAL BUSINESS UNIT Mall of Qatar Doha, Qatar
Slide 30: 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 31: 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 32: Financial Information
FINANCIAL INFORMATION NASCAR Hall of Fame Rivers Casino Premier Bankcard Charlotte, NC Portsmouth, VA Sioux Falls, SD
Slide 33: FY2024 Second Quarter Results
FY2024 SECOND QUARTER RESULTS ($ in thousands, except per share data) Three Months Ended 28-Oct 29-Oct Percent 2023 2022 Change Orders $ 183,692 $ 182,807 0.5% Net sales $ 199,369 $ 187,439 6.4% Gross profit 54,199 31,704 71.0% Gross margin 27.2% 16.9% Operating income 19,436 1,527 1172.8% Operating
Slide 34: FY2024 YTD Results
FY2024 YTD RESULTS ($ in thousands, except per share data) Six Months Ended 28-Oct 29-Oct Percent 2023 2022 Change Orders $ 342,324 $ 353,030 -3.0% Net sales $ 431,899 $ 359,359 20.2% Gross profit 125,346 57,498 118.0% Gross margin 29.0% 16.0% Operating income 59,652 (3,992) 1594.3% Operating margin
Slide 35: 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 36: 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 37: More about Daktronics
More about Daktronics 10 YEAR HISTORY DILUTED EARNINGS PER SHARE ✓ 52/53 Week Fiscal Years ending in April (after adjustment for splits) Fiscal Year Q1 Q2 Q3 Q4 ✓ Seasonality to results (Sports/Construction 2014 + 0.13 + 0.27 + 0.07 + 0.04 season) 2015 + 0.20 + 0.18 + 0.01 + 0.08 ✓ Video systems com
Slide 38: 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 39: Technology
DYNAMIC MESSAGE SIGNS TECHNOLOGY CONTROL SYSTEMS