AeroVironment, Inc.
Investor Overview
December 2008
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Safe Harbor Statement
This presentation contains "forward-looking statements" as that term is defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are based on current
expectations, forecasts and assumptions that involve risks and uncertainties, including, but not
limited to, economic, competitive, governmental and technological factors outside of our control,
that may cause our business, strategy or actual results to differ materially from the forward-
looking statements. Factors that could cause actual results to differ materially from the forward-
looking statements include, but are not limited to, reliance on sales to the U.S. government;
changes in the supply and/or demand and/or prices for our products; the activities of
competitors; failure of the markets in which we operate to grow; failure to expand into new
markets; changes in significant operating expenses, including components and raw materials;
failure to develop new products; changes in the regulatory environment; product liability,
infringement and other claims; and general economic and business conditions in the United
States and elsewhere in the world. For a further list and description of such risks and
uncertainties, see the reports we file with the Securities and Exchange Commission, including
our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We do not
intend, and undertake no obligation, to update any forward-looking statements, whether as a
result of new information, future events or otherwise.
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Investment Thesis
High Growth Through Technology-based Innovation
Leading Positions In Growing Markets
Strong Product Portfolio And Deep Customer
Relationships
Robust, Market-driven Development Pipeline
Proven, Experienced Management
Attractive Financial Performance
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Consistent Annual Revenue Growth
Revenue ($MM)
$250
$216
$200
$174
CAGR = 46%
$150
$139
$105
$100
$48
$50
EES
UAS
$0
FY04 FY05 FY06 FY07 FY08
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What We Do
Innovative Solutions with Compelling New Value
Unmanned Aircraft Efficient Energy
Systems Systems
Technology
$216 Million FY 2008 Revenue
46% CAGR FY 04 – FY 08
Leader in Market-Driven Innovation
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Small, Hand-Launched
Unmanned Aircraft Systems (UAS)
FY ’08: 86% Of Total
Revenue
FY ’04 – ’08 UAS Revenue
CAGR: 57%
Sole Supplier to All U.S. DoD
Programs of Record for small
UAS
Embedded into U.S. Military
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Different Platforms for Remote Imagery
Stratos- Dwell Altitude
pheric Global
Observer
High
Global
Hawk
Predator
Close-in
Shadow
Small
UAS
Shorter Longer
Flight Duration
Small UAS Respond to the Immediate Need for RSTA
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A Robust System…
Easy to Use and Reliable
Raven
Puma AE
Wasp
GCU
Maintenance Training
Common Interface
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Small UAS Video
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UAS Revenue Drivers
Existing Spares, Expanding
System New
markets and repairs and markets and
upgrades systems
applications training applications
• US DoD • Existing • Digital data • Allied military • Global
• Raven customers link • Border Observer
• Wasp and systems • Raven PIP security • Switchblade
• Puma AE • New • Law
customers enforcement
and systems
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Small UAS Markets and Applications
Existing Future Adoption Potential
Individual
U.S. Special Individual U.S.
National Guard International
Forces Warfighters
Warfighters
U.S. Army, International
Border Infrastructure
Marines, Air Infrastructure
Security Security
Force Security
U.S. Other
Homeland International
Government First Response
Security First Response
Agencies
International
International Law
SWAT Teams Law
Military Forces Enforcement
Enforcement
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UAS Development Pipeline Examples
Switchblade Global Observer
Man-Portable, Lethal Small UAS High Altitude, Long-Endurance UAS
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Development Pipeline Examples
Global Observer
Center Wing Section
Propulsion System
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Efficient Energy Systems
Consolidates former
PosiCharge and Energy
Technology Center segments
Products: PosiCharge, EV
Test Systems
R&D supporting existing
businesses and potential new
businesses
FY ’08: 14% Of Total
Revenue
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Efficient Electric Energy Technology
A leader in:
EV fast charge systems
EV test systems
Alternative energy
solutions
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Fast Charge Systems for Industrial Vehicles
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EES Development Pipeline Examples
EV Fast Charge Architectural Wind
Fast charge system for on-road EVs Clean energy generation for buildings
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Financial Highlights
Strong Organic Revenue Growth
Track Record of Profitability
Diverse Revenue Mix
Products, R&D, Services
Government, Commercial
Strong Balance Sheet with No Debt
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Consistent Annual Revenue Growth
Revenue ($MM)
$250
$216
$200
$174
CAGR = 46%
$150
$139
$105
$100
$48
$50
EES
UAS
$0
FY04 FY05 FY06 FY07 FY08
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Consistently Profitable
FY Ended April 30, 2004 - 2008
In $ Millions 2004 2005 2006 2007 2008 CAGR
Revenue $48 $105 $139 $174 $216 46%
Gross Profit $15 $47 $57 $68 $79
52%
Margin 31% 44% 41% 39% 36%
Operating Income $3 $20 $16 $31 $28
74%
Margin 6% 19% 11% 18% 13%
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FY09 Quarterly Performance
Qtr 1 Qtr 2 Total
In $ Millions
Revenue $53.6 $65.8 $119.4
Gross Profit $20.6 $25.0 $45.6
Margin 38% 38% 38%
Operating Income $7.2 $12.2 $19.5
Margin 13% 19% 16%
Net Income $4.8 $9.1 $13.9
Margin 9% 14% 12%
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Diverse Revenue Mix
FY2009 YTD Revenue by Function FY2009 YTD Contract Mix
Services Cost Plus
23% 42%
Products
53%
R&D
Fixed
24%
Price
57%
Time and
Materials
1%
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Strong Balance Sheet
AeroVironment
Fiscal Year Ended 11/01/08
(in Millions)
Cash & Investments $125 Payables $14
Receivables 56 Other Liabilities 13
Inventories 19
Property and Equipment 14 Capital 106
Other Assets 7 Retained Earnings 88
Total Assets $221 Total Liabilities & Equity $221
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Investment Thesis
High Growth Through Technology-based Innovation
Leading Positions In Growing Markets
Strong Product Portfolio And Deep Customer
Relationships
Robust, Market-driven Development Pipeline
Proven, Experienced Management
Attractive Financial Performance
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www.avinc.com
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