Presented for Morgan Keegan 2008 Homeland Security Conference Ken Galaznik, Chief Financial Officer May 28, 2008
Safe Harbor Statement This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. For a more detailed discussion of factors that affect the Company s operating results, interested parties should review risk factors set forth in the Company s filings with the Securities and Exchange Commission. 2
AS&E Company Overview Corporate Headquarters Billerica, Massachusetts, U.S.A. Founded 1958 Business X-ray Screening & Inspection Stock NASDAQ: ASEI FY 08 Revenue $166.7 Million Employees 346 3
When You Can t t Afford to Compromise Z Backscatter excels in the detection of organic or "low Z" materials, and the photo quality images provide context and clarity. Transmission X-ray technology detects high Z, or inorganic materials, and their shadow-like images reveal fine details. When Z Backscatter and transmission X-ray technologies are combined, the result is the most effective and comprehensive detection system available anywhere. AS&E Advantage When You Can t t Afford to Compromise 4
Z Backscatter Technology X-ray energy will do one of three things when interacting with material: - Become Absorbed, Pass-through, or Scatter Transmission Backscatter 5
THE AS&E ADVANTAGE TRANSMISSION + Z BACKSCATTER Provides the most information about the object scanned THE AS&E ADVANTAGE When you can t t afford to compromise 6
Manufacturing Capabilities State-of-the-art facility in Billerica, MA Significant investments in new and expanded manufacturing space to accommodate AS&E s future growth ISO:9001 Certified 188,000 ft² 7
Product Groups ParcelSearch / Personnel Screening CargoSearch Inspection Z Backscatter Screening 8
Gemini Parcel Inspection System Dual-energy Transmission and Z Backscatter 9
SmartCheck "It gives our officers the absolute best opportunity to find prohibited items," said TSA Chief Technology Officer, Michael Golden. "It's a new day in aviation security " 10
OmniView Gantry System The only high-energy, multi-view relocatable system available today. Backscatter Left Side Backscatter Top Down Backscatter Right Side 2008 AS&E Company Private Transmission 11
Z Portal TOP VIEW DRUGS STOWAWAY RIGHT VIEW CIGARETTES IN DOOR High throughput, multi-view, relocatable, drive-through screening system LEFT VIEW 12
Z Backscatter Van #1 selling, non-intrusive, mobile inspection system on the market 13
Forwardscatter Technology Unique technology, complementary with Z Backscatter, designed to display dense objects. Backscatter Image of Explosives Forwardscatter Image of Artillery Shell and Propane Tank 14
Currency Seizure - CBP CBP officers were performing random inspections of vehicles destined for Haiti, utilizing a newly acquired x-ray vehicle, the Z Backscatter Van (ZBV) ZBV technology reveals contraband that transmission x-rays may miss, such as explosives and plastic weapons Upon physical inspection, CBP Officers found bundles of US currency More than $850,000 was seized. To view full press release, go to: http://www.cbp.gov/xp/cgov/newsroom/news_releases/102007 15
Image of a Drug Seizure 4.2 Tons of Cocaine Smuggled cocaine 16
Image of a Seizure of Explosives C-4 4 Smuggled in a Gas Can C-4 in gas can 17
ZBV Military Trailer at AS&E 18
AS&E New International Sales by Country FY2005 FY2009 19
Fiscal Year Financial Review Revenue and Operating Income Revenue per Employee Revenue Operating Income $750,000 $180,000 $140,000 $100,000 $60,000 $20,000 ($20,000) $76,342 $2,751 $88,314 $15,916 $163,604 $49,291 $153,186 $32,219 $166,733 2004 2005 2006 2007 2008 $21,223 $600,000 $450,000 $300,000 $150,000 $0 $235,623 $308,790 $568,069 $512,328 $481,887 2004 2005 2006 2007 2008 Backlog EPS $120,000 $105,634 $4.00 $100,000 $80,000 $72,098 $68,840 $98,582 $3.00 $3.27 $2.38 $60,000 $2.00 $1.87 $40,000 $33,852 $1.00 $1.31 $20,000 $0.26 $0 2004 2005 2006 2007 2008 $0.00 2004 2005 2006 2007 2008 20
Continuing Our Mission To be a leading world-wide supplier of innovative inspection solutions, while delivering superior growth in shareholder value over the long term. 21
Q&A 26