JEFFERIES 2013 GLOBAL INDUSTRIALS CONFERENCE August 14, 2013 PETER J. GUNDERMANN DAVID C. BURNEY PRESIDENT & CEO EXECUTIVE VP & CFO © 2013 by Astronics Corporation NASDAQ: ATRO SAFE HARBOR STATEMENT These slides (and the accompanying oral discussion) contain “forward- looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including general economic and business conditions, conditions affecting the industries served by the Company and its subsidiaries, conditions affecting the Company’s customers and suppliers, competitor responses to the Company’s products and services, the overall market acceptance of such products and services, the effect of the Company’s strategy and other factors disclosed in the Company’s periodic reports filed with the Securities and Exchange Commission. Consequently such forward looking statements should be regarded as the Company’s current plans, estimates and beliefs. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. 2 © 2013 by Astronics Corporation ASTRONICS CORPORATION NASDAQ: ATRO Index membership Russell 3000®/2000®/Microcap® Recent price $40.82 52-week range $19.25 - $42.94* Market capitalization $592.4 million Total shares outstanding: Common 11.2 million Class B (10 votes per share) 3.3 million* Avg. daily trading volume (3 mos.) 89,600 Ownership (Common and Class B shares): Institutional 60.8% Insider 13.6% Market data as of close of business August 8, 2013 [Source: Bloomberg LP]; ownership as of most recent filing * Adjusted for the October 29, 2012 three-for-twenty class B stock distribution 3 © 2013 by Astronics Corporation ASTRONICS CORPORATION Revenue Q2 2013 TTM Aerospace $281.1 million • Electrical power for passengers and 4% aircraft • Aircraft lighting and safety equipment • Avionics Test Systems 96% • Military test systems • Weapons diagnostic test systems Aerospace Test Systems 4 © 2013 by Astronics Corporation RECORD SALES $325 - $340 ($ in millions, except EPS) Peco $266.4 $228.2 $191.2 $195.8 $144.8 1H 2009 2010 2011 2012 2013E* $(0.28) $1.05 $1.45 $1.45 Diluted EPS** * Guidance provided as of July 31, 2013; 2013E includes $35 million - $40 million of revenue for Peco, since its July 18, 2013 acquisition ** Adjusted for the October 29, 2012 three-for-twenty class B stock distribution 5 © 2013 by Astronics Corporation EXPANDING SHIP SET CONTENT Higher future ship set content Expanded ship set content: $50,000 - $300,000 Traditional ship set content: $2,000 - $10,000 6 © 2013 by Astronics Corporation AEROSPACE SALES: 96% OF TOTAL REVENUE By Markets By Products Airfield FAA/Airport, Lighting, 4% 4% Avionics, Military 7% Aircraft, Aircraft 14% Lighting, 26% Business Jet, 11% Airframe Commerical Cabin Power, Transport, Electronics, 71% 7% 56% Q2 2013 TTM Aerospace Segment Sales: $270.9 million 7 © 2013 by Astronics Corporation COMMERCIAL TRANSPORT DELIVERY FORECAST 1800 History Forecast 1600 1400 1200 1000 800 Aircraft Units 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Light/Medium Heavy Source: Forecast International (July 2013) 8 © 2013 by Astronics Corporation CABIN ELECTRONICS IFE/PASSENGER POWER Growth Drivers • Hybrid systems: Passenger power + IFE and others • Expanding universe of PEDs • New services: Wi-Fi and voice • Expansion across all fare classes • Expansion from wide to narrow bodies 9 © 2013 by Astronics Corporation CABIN ELECTRONICS BOEING 787 IFE/PASSENGER POWER Seat Power Module for Thales & Panasonic In-Use Light Outlet Unit Providing ~ 75 In-Use Lights and 300 Outlet Units Approximately $200k per ship set 10 © 2013 by Astronics Corporation OUTLOOK FOR BUSINESS JET DELIVERIES History Forecast ~10,000 Aircraft from 2012 - 2022 Source: Honeywell Business Aviation Outlook, October 2012 11 © 2013 by Astronics Corporation AIRFRAME POWER LEAR 85 ELECTRONIC POWER DISTRIBUTION SYSTEM System advantages: • Increased reliability • Reduced weight • Automation • Flexibility • Lower life- cycle cost • ~$225-$230K / Aircraft Anticipated entry into service in late 2014 12 © 2013 by Astronics Corporation LIGHTING SYSTEMS ON V-22 Prop Rotor Lights § Exterior lights § Escape path system § Fire suppression controller § Avionics panels & keyboards § Approximately $70k to $75k per ship set 13 © 2013 by Astronics Corporation AVIONICS Ø Translation devices that enable varying system protocols to communicate § Primarily used in aircraft upgrades - military and commercial applications § Both embedded applications as well as test and simulation § High Quality Customer Base • Includes L3, Boeing, Rockwell Collins, General Atomics, GE Aviation Ø Enhanced Vision Systems (EVS) for fixed and rotary wing aircraft § Provides real-time display for increased visibility in adverse weather conditions § FAA certified on more than 200 aircraft models EVS 14 © 2013 by Astronics Corporation ACQUISITION OF PECO, INC. Sales Ø Acquired July 2013 Ø $136 million purchase price 15% Ø Expanded senior credit facility for funding Ø ~85% of revenue is aerospace 85% Ø Expands lighting and safety content in commercial aircraft Aerospace Other Ø Largest customer: Boeing Ø 737 - approximately $100k in content (BSI passenger service units, fuel access doors) Ø 777 - approximately $235k in content (passenger service units, fuel access doors) Ø 787 - approximately $45k in content (fuel access doors) Ø 747 – approximately $30k in content (passenger service units, fuel access doors) Ø Solid financial performance: Ø 2012 revenue was $77.8 million; Expecting contribution of $35 million - $40 million in 2013 Ø Adjusted EBITDA margins comparable with ATRO 15 © 2013 by Astronics Corporation AEROSPACE SEGMENT: WELL POSITIONED Wide range of high profile next generation aircraft platforms Piaggio Avanti: Embraer Phenom 100/300: Learjet 85: Cockpit lighting Exterior lighting Electrical power distribution UH-60 Blackhawk: Airbus A380: (EPDS) Exterior cockpit lighting Cabin lighting & cabin electronics Pilatus PC-24: V-22 Osprey: Boeing 787: EPDS & starter generator Cabin, cockpit & exterior lighting Cabin electronics & fuel doors Airbus 350: Cessna: F-35 JSF: Cabin lighting & electronics Exterior & cockpit lighting Exterior lighting suite & lighting Two Unnamed Biz Jets: Boeing 737 NG & BSI: controllers Electrical power distribution PSU, fuel doors & passenger power available Next Current Ramping Generation 16 © 2013 by Astronics Corporation TEST SYSTEMS: 4% OF TOTAL REVENUE Synthetic instrument-based, software-defined automated test solutions for domestic and foreign military: ► Front line to depot repair level ► Electro-optical devices ► Military communications ► Factory test solutions ► Unmanned ground or air vehicles ► Portable maintenance solutions 17 © 2013 by Astronics Corporation FINANCIALS © 2013 by Astronics Corporation SOLID SALES, GROWING BOOKINGS ($ in millions, except EPS) Sales Annual Bookings $325-$340 $278.0 $266.4 Peco $271.1 $228.2 $234.0 $210.2 $191.2 $195.8 $145.7 2009 2010 2011 2012 2013E* 2009 2010 2011 2012 Q2 2013 TTM $(0.28) $1.05 $1.45 $1.45 Diluted EPS** * Guidance provided as of July 31, 2013; 2013E includes $35 million - $40 million of revenue for Peco, since its July 18, 2013 acquisition ** Adjusted for the October 29, 2012 three-for-twenty class B stock distribution 19 © 2013 by Astronics Corporation SOLID MARGINS ($ in millions) Gross Profit Operating Profit (Loss) & Margin & Margin $73.2 $34.6 $69.4 $32.6 $30.8 $60.5 $24.4 $47.6 $37.3 12.5% 13.5% 12.2% 12.3% $(6.2) 19.5% 24.3% 26.5% 26.1% 26.0% (3.2)% 2009 2010 2011 2012 Q2 2013 2009* 2010 2011* 2012 Q2 2013 TTM TTM * Reflects a write down of $19.4 million and $2.5 million for test systems goodwill and intangible assets in 2009 and 2011, respectively 20 © 2013 by Astronics Corporation Q2 2013 SNAPSHOT ($ in millions) Bookings Revenue Net Income $77.2 $70.8 $66.3 $65.0 $5.2 $5.2 ** 8.0%* 7.3%* Q2 2012 Q2 2013 Q2 2012 Q2 2013 Q2 2012 Q2 2013 * % of Revenue ** Q2 2013 net income impacted by $0.9 million of pre-tax acquisition and financing related expenses 21 © 2013 by Astronics Corporation STRONG BALANCE SHEET ($ in millions) Cash from Operations Capital Expenditures $32.5 $16.7 $27.9 $14.3 $24.2 $16.5 $5 - $10 $3.6 $3.7 1H 2010 2011 2012 Q2 2013 TTM 2010 2011 2012 2013E* * Guidance provided as of July 31, 2013 Cash & Cash Equivalents Funded Debt & Equity $22.7 $16.5 $199.0 $10.9 $30.0 $25.5 $7.4 $33.3 $125.1 $139.7 $139.7 $102.9 2010 2011 2012 Q2 2013 2011 2012 Q2 2013 Proforma Shareholder Equity Funded Debt Q2 2013* * In July 2013, a new $190 million term loan was obtained to fund 22 the Peco acquisition and repay $14.5 million of outstanding debt. © 2013 by Astronics Corporation DEVELOP AND CAPITALIZE ON TECHNICAL EXPERTISE ($ in millions) Engineering & Development Expense Identify market opportunities $53-$56 $50.0 $45.0 $36.1 Develop/acquire technical $28.3 capability Earn higher returns by 2010 2011 2012 Q2 2013 TTM 2013E* providing innovative solutions 14.5% 15.8% 16.9% 17.8% 16.4% Percent of Sales * Guidance provided as of July 31, 2013;