Investor Presentation - Genasys

Investor PresentationAugust 2021

The Critical Communications Company

Confidential and Proprietary Copyright 2021 · Genasys Inc.

2

Forward-looking Statements

Except for historical information contained herein, the matters discussed are 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. You should not place undue reliance on these statements. We base these statements onparticularassumptionsthatwehavemade in light of our industry

experience, the stage of product and market development as well

as our perception of historical trends, current market conditions, current economic data, expected future developments and other

factors that we believe are appropriate under the circumstances.

These statements involve risksanduncertaintiesthatcouldcauseactual results to differ materially from those suggested in the

forward-looking statements. Theseforward-lookingstatements

aresubject to a number of risks and uncertainties, including how the COVID-19 pandemic has adversely impacted worldwide

supply chains and the ability to obtain sufficient amounts of

component parts, including semiconductor chips and integrated circuits, resins, coating, and other equipment and components. Negative impacts on our supply change could have a material adverse effect on our business. Other risks and uncertainties are identified and discussed in our filings with the Securities and Exchange Commission. These forward-looking statements are based on information and management’s expectations as of the date hereof. Future results may differ materially from our current expectations. For more information regarding other potential risks and uncertainties, see the "Risk Factors" section of the Company’s Form 10-K for the fiscal year ended September 30, 2020. Genasys Inc.disclaimsany intentor obligation to update those forward-looking statements, exceptas otherwisespecificallystated.

Non-GAAP operationalmetrics

We include in this presentation Non-GAAP operational metrics of bookings and backlog, which we believe provide

helpful information to investors with respect to evaluating

the Company’s performance. We consider bookingsand

backlogas leadingindicatorsof future revenues and use these metrics to support production planning. Bookings is

an internal,operationalmetricthatmeasuresthe total dollar value of customer purchase orders executed in a period,

regardless of the timingof therelatedrevenuerecognition.Backlog is a measure of purchase orders receivedthathavenotbeenshippedbutare plannedto shipwithinthe

next12 months.

Disclosures

Confidential and Proprietary Copyright 2021 · Genasys Inc.

The Critical Communications Company

18%EBITDA Margin

Industry’s OnlyUnified Platform

$0Net Debt

11BN+Market Opportunity

$18MCash Flow From

Operations (2)(1) FY2020; FYE 9/30(2) FY2018 – FY2020; FYE 9/30; Figure includes $3.8M of customer deposits and pre-payments

$16.4$20.3

$26.3

$37.0$43.0

FY16A FY17A FY18A FY19A FY20A

Global provider of critical communications systems and solutions that help keep people safe and organizations running

… and a Global Presence in 100+ Countries…

…Driving Consistent Revenue Growth

Industry Leading Product Portfolio…

Industry standard for acoustic hailing devices ("LRAD")

Reliable, redundant, multi-channel mass notification

system ("IMNS")

Enterprise and Emergency Management software protecting

businesses, employees and the public ("GEM")

Delivering alerts to at-risk populations during disasters and emergencies

("NEWS")

CAGR 27%

3Confidential and Proprietary Copyright 2021 · Genasys Inc.

($ in millions)

(1)

Investment Highlights

Only global provider of integrated suite of critical communications solutions – leveraging combination of established complementary hardware and software products1

2 Established track record of innovative product expansion – successful internal product development enhanced with select key, strategic acquisitions

3

5

Large $11bn+ total addressable market with a rapidly expanding enterprise market for emergency warning and critical communications software solutions4

Proven history of winning large, multi-year contracts with sophisticated governments, militaries and commercial enterprises around the world

6

Substantial, near-term opportunity for European Union mandated National Emergency Warning Systems roll-out – early stages of large number of contract awards by EU member nations with June 2022 deadline

Attractive financial profile – record bookings and backlog, rapidly increasing proportion of revenue from recurring software sales, positive EBITDA


Enterprise Critical

Communications(GEM)

NationalEmergency

WarningSystems(NEWS)

IntegratedMass

Notification Systems(IMNS)

LongRange

AcousticDevices(LRAD)

(1)

(1) Enterprise Critical Communications platform is referred to as GEM, which is the enterprise software platform at the center of the comprehensive solution

A history of delivering innovation in critical communicationsThe Critical Communications Company

2003 2012 2018 2020

Created the Acoustic Hailing Device (AHD) market with the

introduction of our first LRAD systems

Entered the public safety market by launching the

industry’s first voice-based multidirectional mass notification systems

Genasys acquisition was the catalyst for innovating

advanced Critical Communications and Mass

Notification solutions

AMIKA Mobile acquisition provided robust feature set for

further expansion into the Enterprise market

2021

Zonehaven acquisition addresses Evacuation Management

challenges of towns, cities and regions before, during and after

disasters and other critical events


Increased Focus on Supporting the Genasys Platform with Strategic SaaS Software Acquisitions

Zonehaven Acquisition

• SaaS software to empower public safety agencies and communities with essential tools to safely execute timely evacuations and orderly repopulations

• Bridges the gap between first responders and public by transforming disaster preparedness, Zonehaven software provides:

ü Planning ü Trainingü Drills

Genasys acquired Zonehaven in June 2021

170Fire Districts

3,300Evacuation Zones

140Law Enforcement

Agencies

3.2MPeople Covered

200Cities

Business Description

Benefits to Genasys


• Will be incorporated into Genasys Emergency Management (GEM) platform as a layer in the integrated systems software and offered as a stand-alone service

• Provides Genasys key competitive advantages for closing local, regional and national emergency management and warning contracts while accelerating revenue growth

ü Alertingü Comprehensive community outreach programs

Zonehaven Video

https://f.io/a8tMWXvq

Source: Avascent, Barnes Reports, Gartner (1) National Centers for Environmental Information(2) Brookings Research - Global manufacturing scorecard(3) Northland Research 05.14.2021

Large and Growing Global Market

Acoustic Hailing Devices Mass Notification Systems

$2+ BN TAM $9+ BN TAM

$11+ BN Total Addressable Market

Law Enforcement Maritime /Oil & Gas

WildlifeProtection

Critical Infrastructure

ProtectionDefense

Education Municipalities Energy & Power

Port Security Defense

Market Today Enterprise Expansion• Adoption amongst global enterprises in an increasingly connected

and safety-focused world leading to substantial opportunities for Genasys’ solutions

• Organizations can no longer afford not to have crisis event management solutions as workplace incidents continue to become more frequent and costly

• Companies and communities around the world are beginning to replace and update antiquated siren systems with more robust integrated voice alert systems

• Enterprise use cases are constantly evolving to address company needs and employee safety

295MManufacturing

Employees (2)

99%of Enterprise

Deals are SaaS (3)

$45BN+Annual cost of

disasters (1)

Reactive Proactive


The Global Leader in Acoustic Hailing Devices (LRAD)Prevent misunderstandings › Resolve uncertain situations › Save lives

Unlike conventional loudspeakers, LRAD driver and waveguide technologies focus and project voice messages with exceptional intelligibility from close range to 5,500 meters


Law Enforcement Fire & RescueHomeland & Border Security

Defense Critical Infrastructure Wildlife Preservation & Asset Protection

State & Local

Enterprise

Federal Governments& Militaries

End Users

• Cloud-hosted Genasys Emergency Management (GEM) Enterprise software at the center of comprehensive solution

• Integrated solution combines multiple inputs with data integration and analysis to assist in generating and directing alerts

• Software seamlessly integrates with physical systems to initiate life safety actions including lockdowns

GEM – Enterprise Critical CommunicationsEnterprises increasingly need critical communications platforms to communicate with employees and others regarding life safety events


State & Local

Enterprise

Federal Governments & Militaries

End

Use

rs

Enterprise Critical Communications Solution for a Global AutomakerKeeping employees safe and productive – protecting the workplace

PROBLEM

SOLUTION

SITUATION

Assign, track and communicate with your teams

• Genasys replaced a competitor’s solution with its fully-integrated, intuitive enterprise system that enables full integration into customer’s existing ERP system creating automatic system updates when an employee’s status or location changes

• System delivers notifications during everyday duties and critical business events via voice calls, SMS messages, email, desktop alerts, WhatsApp and other corporate communication channels to workers, contractors and visitors

> Rapid deployment

> Real-time monitoring

> Increased employee productivity and accountability

> Timely incident response

> Workplace task flexibility

> Easy and intuitive application

> Non-compliance and exception alerts

> Real-time incident alerts

> Pre-configured reports

> Format flexibility

• Existing corporate notification solution did not integrate with active directories, Human Resources, visitor management or building control systems – creating a heavy administrative burden to upkeep the system across multiple facilitiesand countries

• Existing provider continued to raise price on the inefficient, time-consuming solution, leading to the Global Automaker to search for new emergencyenterprise solutions

• A Global Automaker needed a sophisticated and easy-to-use solution for managing workplace incidents — a software solution that allows employees to report when a workplace incident or security breach occurs and managers the ability to quickly respond and deploy the necessary resources to the incident area in real-time

25,000# OF EMPLOYEES

RECEIVING LIFE SAFETY AND CRITICAL EVENT

NOTIFICATIONS

2COUNTRIES

With real-time situational awareness in a single dashboard that features two-way polling, duress buttons, field check-ins and recipient locations,

GEM helps keep people safe and businesses working

12STATES SERVICED


Unique Integrated Mass Notification System (IMNS)

Only vendor with unified hardware & software solution

• Genasys IMNS is unique hybrid solution combining sophisticated GEM software and proprietary Genasys audio hardware technology

• GEM software is the command and control center of IMNS solution

• GEM software can be used to generate alerts using:― Telecommunications / electronic (SMS, voice, mobile app,

social media, etc.)― Acoustic systems (voice or sound alerts)― Physical systems (electronic displays and strobes)

• Location-based mass messaging solution sends messages only to mobile phones of those in or entering crisis area


State & Local

Enterprise


End

Use

rs

Laguna Beach Emergency Warning System

SITUATION

SOLUTION

PROBLEM

“Most notification systems rely on electric power, cellular telephone facilities and communication

lines that could fail due to fire damage. An additional redundant method to communicate emergency notifications is a city-wide outdoor warning system. The system could be activated

locally or remotely by satellite to provide an additional layer of notification, in the absence of

functioning cell towers”- City of Laguna Beach Wildfire Mitigation and Fire Safety Report

• Most emergency warning installations sound sirens, but are incapable of broadcasting intelligible voice notifications containing critical information about the nature of the emergency and potentially life-saving instructions

• Mobile phone alerts are dependent on cell towers that are prone to failure during power outages and wildfires

• Faced with wildfire, flooding, earthquake, tsunami, severe weather and other public safety threats, the City of Laguna Beach required a city-wide emergency warning system capable of providing residents and visitors critical notifications and instructions

• In addition to covering large areas, the system needed to be capable of broadcasting voice messages with exceptional vocal clarity and easily integrate with the city’s existing police and emergency management software

• Laguna Beach city officials selected the superior area coverage, vocal clarity and discreet visual footprint of Genasys DS-60XL systems

• Genasys’ proprietary driver and waveguide technology focuses sound from 60° – 360° to provide customized mass notification area coverage

• Optimized to the primary range of human hearing, Genasys speaker array broadcasts are clearly heard and understood inside vehicles and buildings and above background noise

Providing critical communication in disaster zones – protecting communities


National Emergency Warning Systems (NEWS)

• System integrates software, hardware and data to deliver Cell Broadcast and location-based SMS alerts

• Integrates with social media and other alternative alerting platforms

• Ability to include systems to broadcast warning sirens and voice alerts

• Delivers critical SMS alerts to targeted populations in near real time – other SMS alert providers take up to 15 minutes to find the mobile phones of people in at-risk areas

Genasys NEWS – helping keep Australians safe since 2013


Solves governments’ increasing need to communicate with their populations regarding critical events including health, disasters and emergency situations

State & Local


End

Use

rs

Australia’s Unified Multi-Channel Mass Notification Software System

SITUATION

• Severe heatwave, drought and wind gusts up to 100 km/h combined to fuel Australia's deadliest bushfires on February 7, 2009

• Black Saturday fires raced across the state of Victoria for several weeks, burning more than 2,000 homes over 450,000 hectares, destroying several communities and leavingthousands homeless

• Bushfires injured 414 people and claimed 173 lives

PROBLEM SOLUTION

Reliable nationwide emergency communications – protecting people worldwide

16,000AVERAGE MESSAGES PER

SECOND

96%SUCCESSFUL DELIVERY

RATE

180M TOTAL MESSAGES

DELIVERED

• There was a national outcry that the Australian government had failed to adequately warn the public of the impending danger

• Australian government came to the conclusion that reaching the most people was far more achievable than reaching everyone with any single solution

• Decided to create a location-based public warning system that would reach over 95% of the population affected by bushfires, flooding, severe storms and other critical events

• Australian government officials worked with Genasys, major telecom providers and other companies to implement a location based SMS public warning system

• Genasys' National Emergency Warning Systems' (NEWS) real-time location based SMS software technology sends geo-specific alerts to all mobile phones in crisis-affected areas

• With no opt in or app download required, NEWS delivers emergency alerts to populations at risk to help keep Australia’s residents and visitors safe


• Genasys is well-positioned to compete and win NEWS contracts with EU member nations

• European Electronic Communications Code (EECC) Article 110 approved in 2018 – Public Warning Systems (PWS) are required in all EU member nations by June 2022

• PWS technology requirements include:– Cell Broadcasting– Geo-Located SMS

• Genasys is actively competing for PWS contracts in 25 nations

• Provider that is awarded each EU member nation national system will be well-positioned for additional contracts with state / local and enterprise businesses within the respective countries

National Emergency Warning System – EU Mandate Major business opportunity

June 2022 deadline


Genasys Canada

Genasys Spain

Genasys Puerto Rico

Genasys Singapore

Genasys Dubai

Genasys Headquarters

Genasys Latin America

Genasys Europe

Global Footprint with Significant International Sales Capabilities

Headquarters

Software Development

Business Development Office


Zonehaven

Note: $ in millions; FYE 9/30; FY21 YTD as of 05/2021; Figures represented do not include Zonehaven acquisition (1) Backlog is a measure of purchase orders received that have not been shipped but are planned to ship within the next 12 months

$14.5

$28.3

$36.5

$45.9

$36.0

$59.8

$16.6

$37.7

$27.0$23.6

$11.9

$3.1

Backlog

Significant Bookings and Backlog Growth…

Bookings

Strong demand in second half of FY21 expected to drive record bookings and backlog

CAGR 26% CAGR 52%


(1)

FY16A FY17A FY18A FY19A FY20A FY16A FY17A FY18A FY19A FY20A 6/30/21 YTD6/30/21 YTD

NTD: Bookings and Backlog to be updated closer to

offering

$16.4$20.3

$26.3

$37.0

$43.0

…Leading to Record Years in Revenue with Strong EBITDA Growth

On track for another record year of revenue in FY21

Note: $ in millions; FYE 9/30

Revenue

($1.4)($0.7) ($1.0)

$4.0

$6.8

FY17AFY16A FY18AFY19A FY20A

EBITDA


CAGR 27%

$45.9

LTM 6/30

$4.6

FY16A FY17A FY18A FY19A FY20A LTM 6/30

Balance Sheet


Highlights 6/30/21

$22.8M• Cash, Cash Equiv. & Marketable Securities

$0• Net Debt (Net of Restricted Cash)

$17.8M• Working Capital

Transformative FY2021 expected to accelerate future growth and enhance shareholder value

History of Performance

Transformative FY2021

Strong Growth Outlook

• Strong historical revenue growth with 27% CAGR from FY16 – FY20

• Proven ability to capture significant nationwide contracts

• Strong cash flow, no debt

• Record bookings and backlog• Acquired two software companies

with strong engineering talent• Significantly expanded global

business development presence

• Captured strategic enterprise and IMNS software contracts

• Increasing proportion of software sales, driving an enhanced margin profile and strong recurringrevenue base

• LRAD sales expected to remain strong

• Continue to pursue strategic acquisitions to further enhance the Company’s product portfolio and drive shareholder value

Uniquely Positioned to Capitalize on Rapid Growth in the Critical Communications Market



Recent Activity & News

• Awarded Mass Notification and Emergency Management SaaS Contract from Riverside County, CA

• Announced $28 Million in Follow-On U.S. Army Program of Record Orders

• Received TRM Certification of GEM Software from U.S. Department of Veterans Affairs

• Announced $9 Million in Mobile Mass Notification Systems Order from U.S. Army

• Completed Citywide IMNS Installations in Laguna Beach, CA

• Received IMNS Order from Southern Marin Fire Protection District

• Acquired Emergency Evacuation SaaS Provider, Zonehaven

• Zonehaven Launched in Alameda County, CA – 1.076 Evacuation Zones Covering 1.7 Million Residents

• More PRs expected through June and July

Enterprise Critical

Communications(GEM)

NationalEmergency

WarningSystems(NEWS)

IntegratedMass

Notification Systems(IMNS)

LongRange

AcousticDevices(LRAD)

Investor Presentation - Genasys

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