Transcat, Inc. · NASDAQ:TRNS
Transcat — Oppenheimer 5th Annual Emerging Growth Conference 2020
26 slides from Transcat's conference presentation, May 8, 2020
Slide 1: Oppenheimer 5th Annual Emerging Growth Conference
May 12, | Oppenheimer 5th Annual Emerging 2020 | Growth Conference Lee D. Rudow President and CEO Michael J. Tschiderer Chief Financial Officer
Slide 2: Safe Harbor Statement
TRANSCAT ‘Trust in every measure Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact and thus are subject to risks, uncertainties and a
Slide 3: Transcat and COVID-19 Response
Transcat and COVID-19 Response Transcat, Inc. Provides Business Update Due to COVID-19 RocHESTER, NY, March 30, 2020 “Quality calibration and laboratory instrument services are a critical component of our customers’ business operations, particularly those in highly regulated industries, such as life
Slide 4: A Leader in Calibration & Laboratory Instrument Service Market
Nasdaq: TRNS TRANSCAT tustin overy moasure A Leader in the Calibration & Laboratory Instrument Service Market and Value-Added Distributor of Test, Measurement & Control Instrumentation Vv Service segment is our primary growth engine Leverage technology to increase productivity Long-term operating ea
Slide 5: Two Complementary Segments
TRANSCAT tustin every measure Two Complementary Segments Service - Solid organic growth with a focus on Life Science - Recurring revenue stream - Driven by regulation and the high cost of fella Q3 FY 2020 TT™M - Strong operating leverage hevente: $171 8M Distributio (Servic Distribution - New test e
Slide 6: Taking Market Share
Taking Market Share $1.6 Billion Addressable Calibration Services Market" 41% 3 Party Service Providers 34% In-house Laboratories + Estimated Addressable North American Calibration Market 2 Percentage of Revenue (North America), Company estimates © 2020 Transcat inc. TRANSCAT ‘ust very messure Marke
Slide 7: Flexible Service Value Proposition
Flexible Service Value Proposition 22 Locations to Serve Customers in the U.S., Canada and Puerto Rico Flexible Service onawa @ @ Montreat Delivery Options: Boston ¥ Client-based lab Prams toon [ ea. Y Periodic on-site niwanrce ; rrsouah® @ ® enisscpris ¥ Mobile @ Harrisburg Fe.Wayne ¥ In-house @ ry
Slide 8: Client-Based Laboratories
TRANSCAT tustin every measure Client-Based Laboratories (“CBL’) 20 Locations Serving Customer Tailored Needs, Full Time At Their Location Qiete owe Qn fl See ee @....2- 9 Og... - = sesame ‘ - 2 rome nama heros tonea = ees aoe aoe OD vere Map Legend @ Transcat Headquarters Medical Device @ transcat c
Slide 9: Broad and Diverse Blue Chip Customer Base
TRANSAT iustin every messure Broad and Diverse Blue Chip Customer Base Percentage of Service Revenue* 6% _ Chemical/Process 7% — Energy/Utilities 11% Aerospace/Defense 13% Services 16% Industrial 4% = Other 43% Life Science / FDA-regulated CQ MERCK Gciead BEF LECONMED ofohmnenafohmon © 2020 Transcat
Slide 10: Financial Results
Financial Results
Slide 11: Record Consolidated Results
TRANSCAT ‘tistin every ‘Measure Record Consolidated Results ($ in millions) Consolidated Revenue Consolidated Operating Income 409 ——— 171.8 $155.1 $160.9 oe $143.9 - if $122.2 1 FY2016 FY2017.«-FY2018 = FY2019=—Q3 FY20 FY2016 FY2017.—-FY2018 = FY2019-—-Q3 FY20 Tm TIM 8 Distribution [ Service © 2020
Slide 12: Service Segment: Consecutive Quarters of YOY Growth
TRANSCAT ‘ust very messure Service Segment: 43 Consecutive Quarters of YOY Growth (Sin millions) Service Revenue $71.1 $77.4 | $36.4 FY 2012 FY2016 FY2017 FY2018 FY 2019 ial ace Service Operating Income & Margin gag $5.2 $5.2 955 $4.2 $002) REE aE FY 2012 FY2016 FY2017 FY2018 FY2019 Q3FY20 TM © 2020
Slide 13: Expanded Distribution Margins
TRANSCAT ‘ust very messure Expanded Distribution Margins (Sin millions) Distribution Sales gre $277 $76.9 $795 - a a . a FY2016 -FY2017_—-FY2018 = FY2019- Q3 FY20 TT™ Distribution Operating Income & Margin $2.1 , 5.0% 6.5% 6.5% FY2016 = FY2017_—«-FY2018 = FY2019-=—«Q3 FY20 T™ © 2020 Transcat inc. Fo
Slide 14: Financial Flexibility Supports Growth Strategy
TRANSCTT 1:3: ‘in every measure Financial Flexibility Supports Growth Strategy (Sin millions) $23.4 million available from credit facility as of December 28, 2019" $15.0M term loan matures in Dec 2025 $27.3 and has a fixed rate of 4.15% $22.9 $21.0 $ $19.7 1.07x leverage ratio at December 28, 2019 (
Slide 15: Growth Strategy
Growth Strategy
Slide 16: What makes Transcat Unique
TRANSCAT ‘ust very messure What makes Transcat Unique Why We Win... Rental & Used Instruments Lead Generation For Service Segment Core Distribution 50 years — Strong Brands and Name Recognition Certifications of New Equipment Service Growth * Calibration * Validation & Analytical * Consulting © 2020
Slide 17: Leverage Technology as a Competitive Advantage
TRANSCTT 1:3: ‘in every measure Leverage Technology as a Competitive Advantage Digital Transformation With industry leading web domain authority Proprietary “C3” Portal for customer asset management Trust in every measure Operational Excellence Productivity focus Lean/best practices Process automati
Slide 18: Drive Double-Digit Service Growth
TRANSAT iustin every messure Drive Double-Digit Service Growth Dominate our local markets Take market share from Organic Growth 3" party providers and OEMs Strategy Outsourcing of in-house labs Continued expansion of RF microwave and high-end electronics capabilities Expanded fleet of mobile ae cali
Slide 19: Acquisition Drivers
TRANSCAT ‘rin oer nose Acquisition Drivers Increased Geographic Capabilities and Leveraged Expansion Expertise Infrastructure TTE Laboratories v Infinite Integral Solutions (CalTree software) Gauge Repair Service Angel’s Instrumentation v NBS Calibrations <7 Ses M © 2020 Transcat inc. 19
Slide 20: Calibrated by Transcat
CALIBRATED BY TRANSCAT’
Slide 21: Growth
owth Strategic Acquisitions Y To drive key double-digit service &° Leverage Technology, Processes ie ere piers: & productivity ¥ Automate calibrations v Margin enhancement & People to Improve Productivity arene re (*) Outlook provided as of February 4, 2020 (pre-COVID-19 pandemic)
Slide 22: Oppenheimer 5th Annual Emerging Growth Conference
May 12, | Oppenheimer 5th Annual Emerging 2020 | Growth Conference TRANSCAT ests oxy nos
Slide 23: Supplemental Information
Supplemental Information
Slide 24: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (Sin thousands) TRANSCAT ‘ust very messure Q3 FY20 FY 2016 FY 2017 FY 2018 FY 2019 ™ Net Income $ 4124 -§ «4522 $5922, $7185 $8,234 + Interest 247 ns 1,018 903 953 + Other Expense / (Income) 48 51 60 91 102 +Tax Provision 1,883 2,642 2,026 2,090 1,453 Operating Income
Slide 25: Segment Adjusted EBITDA Reconciliation
TRANSAT iustin every messure Segment Adjusted EBITDA Reconciliation (Sin thousands) 3 FY20 FY 2016 FY 2017 FY 2018 FY 2019 1! Service Operating Income $4,155 $ 4,769 $5158 $ 5,202 $ 5,494 +Depreciation & Amortization 3,216 4,660 4,397 4,754 4,873 +Other (Expense) / Income (64) (55) (61) (69) 32 +Non
Slide 26: Seasoned Executive Team Driving Growth
TRANSAT iustin every messure Seasoned Executive Team Driving Growth Lee D. Rudow = 30+ years of industry experience President and = Demonstrated growth record Chief Executive Officer = Joined Transcat in 2011, Vice President of “Vice President of ‘Vice President of Vice President of Chief Financial
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