Astronics Corporation · NASDAQ:ATRO

Astronics — Gabelli & Company 15th Annual Aircraft Supplier Conference 2009

32 slides from Astronics's conference presentation, Sep 10, 2009

  1. Slide 1: Aircraft Supplier Conference

    Gabelli & Company , Inc. 15th Annual Aircraft Supplier Conference September Septe be 10, 0, 2009 009 Copyright Astronics Corporation ©2009

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement These slides contain (and the accompanying oral discussion will contain) “forward-looking statements” within the meaning of the Private Securities Litigation g Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause

  3. Slide 3: Astronics Corporation

    Astronics Corporation NASDAQ: ATRO Index Membership Russell 3000®/2000®/Microcap® Recent price $8.73 52-week range $21.87 – $6.30 Market capitalization $94.3 million Total shares outstanding: Common 8 0 million 8.0 Class B (10 votes per share) 2.8 million Avg. daily trading volume (12 mos.) 42,834 O

  4. Slide 4: Astronics Corporation

    Astronics Corporation Aerospace Segment: ►Power generation, generation control and distribution ►High performance aircraft lighting ►Airfield lighting ►Safety and survival equipment Test Systems Segment: ►Synthetic instrument-based, software-defined electronics communications test systems ►Weapons p

  5. Slide 5: Sales Growth

    Sales Growth Annual Sales ($ in millions) $190 - $200 49.6% 49 6% CAGR $173.7 $181.8 $181 8 2004 to 2008 DME $158.2 $110.8 O ORGANIC $74.4 $34.7 ATRO 2004 2005 2006 2007 2008 Q2 09 2009 TTM Est. Copyright Astronics Corporation ©2009

  6. Slide 6: Q209 YTD Sales By Product and Market

    Q209 YTD Sales By Product and Market Markets Products Cabin Electronics FAA/Airport 33% 3% Commercial Transport 46% Test Test Systems Systems 18% 18% Airframe Power 11% Airfield Lighting 3% Military Aircraft 21% Business Jet 12% Aircraft Lighting 35% Q2 2009 YTD Sales: S l $97 0 million $97.0 illi C

  7. Slide 7: Products

    Products Copyright Astronics Corporation ©2009

  8. Slide 8: Cabin Electronics

    Cabin Electronics C Cabin bi PPower and d IIn-Flight Fli h EEntertainment i Leading provider of in-seat power systems (E P (EmPower®)®) Integration of in-seat power for in-flight entertainment ((IFE)) systems y and personal p electronic devices Competitive Advantages • EmPower® name recognition • ~8

  9. Slide 9: Cabin Electronics

    Cabin Electronics B i 787 with Boeing ith IFE/Passenger IFE/P Power P Seat Power Module for Seat Power Module for Thales Panasonic 75 units per Aircraft 75 units per Aircraft Providing 75 In-Use Providing 75 In-Use Lights and 300 Outlet Lights and 300 Outlet Units Units • Approx. 865 total orders to

  10. Slide 10: Airframe Power

    Airframe Power Lear 85 Electronic Power Distribution System Right Battery Electronic Right & Left Bus Contactor Circuit Breaker Units Power Distribution Units Anticipated entry Right System (ECBUs 2 & 4) (RPDU & LPDU) (RBBC) into service Control Interface External Power by 2013 Unit (SCIU) Contactor

  11. Slide 11: Exterior Lighting Systems

    Exterior Lighting Systems Developed breakthrough HID and LED technology for Joint Strike Fighter Content on: Leveraged L d ttechnology h l ffor - Cessna C - Eclipse business jet systems - Hawker Beech - Embraer Direct sales to airframe manufacturers JSF: Forecast: ATRO supplies Planned replacement f

  12. Slide 12: Lighting Systems

    Lighting Systems • Complete supply of components and subsystems y to aircraft manufacturers and avionics suppliers Cockpit • Integrally illuminated display panels and assemblies Lighting • Flood lights, map lights, dimmer units • Ambient light g sensors • Power supplies • Avionics keyboards • Emerge

  13. Slide 13: DME Acquisition

    DME Acquisition Test, training Revenue: Aviation $50 - $54 safety & simulation million (80%) (2009 11 mos. est.) (20%) Increases penetration into Adds airline safety Military & Defense equipment and airport lighting niche • U.S. Armed forces • FAA/Airports • Foreign military operations • Major aircr

  14. Slide 14: Test, Training, and Simulation

    Test, Training, and Simulation Synthetic instrument-based, software-defined electronics communications automated test systems for Front line to depot repair level Military communications Unmanned ground or air vehicles Electronic systems and subsystems ►ATACTS ATACTS - A software-driven, software-dr

  15. Slide 15: Challenging Near-Term, But Strong Long-term View

    Challenging Near- Near-Term, B t St But Strong L Long-term Long-t Vi View Backlog Trend Annual Bookings ($ in millions) ($ iin millions) illi ) * 105.5 $99.5 $170.4 $96.1 est Sys $92.4 $89.0 $151.1 $143.7 Te $114.2 $96.6 Aerospace e $27.2 $43.1 2004 2005 2006 2007 2008 Q2 2004 2005 2006 2007 2008 Q2

  16. Slide 16: Financial Highlights

    Financial Highlights Copyright Astronics Corporation ©2009

  17. Slide 17: 2009 Revenue Expectations

    2009 Revenue Expectations Annual Sales ƒ DME (11-month) est.: ($ in millions) $50 - $54 million; dependent on $190 - $200 g of p timing j projects $173.7 ƒ Need to win test $158.2 systems orders $110 8 $110.8 ƒ Commercial Transport market expected to $74.4 remain stable $34 7 $34.7 ƒ Retro-fit and b

  18. Slide 18: Margin Trends

    Margin Trends Gross Margin Operating Margin 25.8% 15.5% 21.0% 20 0% 20.0% 17.5%* 14.9%* 13.3% 8.7% 7.5% % 6.2% 3.1% 2004 2005 2006 2007 2008 Q209 TTM -2.5% 2004 2005 2006 2007 2008 Q Q209 TTM * Gross margin includes charge of $9.0 million and operating margin includes charge of $10 million for Q408

  19. Slide 19: Investment in Future Programs

    Investment in Future Programs Engineering & NEW PRODUCT IDEAS Development Expense Generated internally and ($ in millions) requested by customers $26.0 $22.9 SHORT-TERM: Higher Expenses $14 8 $14.8 $10.9 $8.9 $5 8 $5.8 LONG-TERM: Drives Future Results 2004 2005 2006 2007 2008 2009E Percentt P 16.7%

  20. Slide 20: Controlling Expenses

    Controlling Expenses SG&A as a Percent of Sales 15.8% 13.8% 12.3% 11.8% 10.4% 10.0% 2004 2005 2006 2007 2008 Q209 TTM Copyright Astronics Corporation ©2009

  21. Slide 21: Net Income and EPS

    Net Income and EPS Net Income (Loss) $15.4 ($ in millions) $8 4 $8.4 $5.7 $4.0 $2 2 $2.2 ($0 7) ($0.7) 2004 2005 2006 2007 2008 Q209 TTM Diluted Earnings (Loss) per Share* ($0.07) $0.22 $0.55 $1.44 $0.79 $0.37 Copyright Astronics Corporation ©2009 * Adjusted for the October 2008 one-for-four Class B

  22. Slide 22: Cash Generation

    Cash Generation Cash Flow from Operating Activities ($ in millions) $15.6 2009 estimated CAPEX: $11 5 $11.5 $3 - $4 million $8.6 $5.1 $5.0 ($0.5) 2004 2005 2006 2007 2008 Q2 09 TTM Copyright Astronics Corporation ©2009

  23. Slide 23: Strong Balance Sheet

    Strong Balance Sheet $36.0 Million Sr. term Note • $2.0 million/qtr. principal repayment ($ in millions) • Effective 10/1/09: 50% floating/50% fixed plus bank spread $12.9 Million Tax-Exempt IRBs • $3.3 million fixed via swap @ 3.99% plus bank spread $55.2 • $9.6 million floating • $1 million princi

  24. Slide 24: Strategy

    Strategy Copyright Astronics Corporation ©2009

  25. Slide 25: Capitalize on Technical Expertise

    Capitalize on Technical Expertise Established technical leaders • Lighting Li hti • Power • Test equipment Find market opportunities to capitalize on investments in technological innovation Serve well-defined S ll d fi d markets: k t aerospace and defense Copyright Astronics Corporation ©2009

  26. Slide 26: Strategy: Expand Content per Platform

    Strategy: Expand Content per Platform Higher g future content value Expanded content value: $10,000 - $50,000 Traditional T diti l content value: $2,000 – $5,000 , Copyright Astronics Corporation ©2009

  27. Slide 27: Aerospace Segment: Well Positioned

    Aerospace Segment: Well Positioned Wide range of high profile, next generation aircraft platforms V-22 Osprey Embraer Boeing Cabin, cockpit Phenom 100 787 Lear 85 Piaggio and exterior Exterior and Electronic cockpit lighting Cabin power Avanti II lighting electronics distribution Cockpit system ligh

  28. Slide 28: Test Systems Segment

    Test Systems Segment Family of synthetic instrument-based, software-defined electronics communications automated test systems addressing broad electronics test requirements of military units from front line to depot repair level Future Opportunities Electro- Portable Foreign optical Factory test mai

  29. Slide 29: Aircraft Supplier Conference

    Gabelli & Company Aircraft Supplier Conference September 10, 2009 Copyright Astronics Corporation ©2009

  30. Slide 30: Supplemental Slides

    Supplemental Slides Copyright Astronics Corporation ©2009

  31. Slide 31: Major Competitors

    Major Competitors • Hamilton Sundstrand Exterior Lighting g g • Crane Aerospace p Systems • Zodiac • Honeywell Cockpit Lighting • IDD (Zodiac) S t Systems • Korry K El t Electronics i (Esterline) (E t li ) Cabin Lighting • Page Aerospace (Hamilton Sundstrand/UTC) Systems • Diehl Luftfahrt EleKtronik

  32. Slide 32: DME Acquisition: Closed Jan 30, 2009

    DME Acquisition: Closed Jan 30, 2009 $51 million Financing $45 million in cash $40 million senior secured 5- year term loan at LIBOR +2.25% to 3.5% Strong 500,000 common retrofit and cabinshares refurbishment opportunities $5 million, 5.5 yyear, $2 OEM Increasing millionbuild performance rates 6.0%

Astronics — Gabelli & Company 15th Annual Aircraft Supplier Conference 2009 on 6ix