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During the course of this presentation, we may make projections or other
forward-looking statements regarding future events or the future financial
performance of the company. We wish to caution you that such statements
are just predictions and that actual events or results may differ materially. We
refer you to the documents the company files regularly with the Securities and
Exchange Commission, specifically the company's most recent Form 10-K and
Form10-Q. These documents contain and identify important factors that could
cause the actual results to differ materially from those contained in our
projections or forward-looking statements.
Safe Harbor Warning
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A Snapshot of Our Long-Term Track Record of Growth
• Revenue: $286M in Q1 2013
• Global Operations: Approximately 7,100 employees; operations in more than 40 countries
• Broad customer base: More than 35,000 companies served annually
• Diversity: No industry >15% of revenue
• Culture: Ranked among top 25 companies to work for worldwide by the Great Places to Work Institute
• Strong Cash Position: Cash and short-term investments of $327M at March 31, 2013
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Low-Cost Modular Measurement and Control Hardware
Productive Software Development Tools
Highly Integrated Systems Platforms
National Instruments equips engineers and scientists with tools that accelerate productivity, innovation, and discovery
What We Do
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Graphical System DesignA Platform-Based Approach for Measurement and Control
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Empowering Users Through SoftwareProviding unique differentiation and preserving customer investments
LEGO®
MINDSTORMS® EV3SpaceX ®
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Leveraging Commercial TechnologyExpanding measurement capability
Traditional Instruments
NI Products
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Total Market: $21 billion
Test and Measurement
Total Market: $40 billion
Industrial Embedded
GeneralPurpose
Wireless and Communications
Semiconductor Real-Time Test
Programmable Logic Controllers
CustomDesign
SBC/Embedded
NI Growth Opportunity Areas
Structural Test
Source: Frost & Sullivan, Prime Data, and NI Estimates
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Test and Measurement (T&M)
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The Traditional Approach to Automated Test
Oscilloscope
Logic Analyzer
Spectrum AnalyzerDMM
Communications Analyzer
LCR Meter
FunctionGenerator
Power Supply
Pattern Generator
Programmable Switch
Source: Agilent, Keithley, and Nicolet
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NI Graphical System Design Approach to Automated Test
Traditional Solution PXI Solution
� Lower cost� Higher performance � Smaller size � Flexibility� Easily upgradable design � User-defined solution
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Embedded Systems
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The Customer Decision: Build or Buy
Build•Custom HW/SW solution•Long lead times for new product•Significant resource requirements
Buy•Off-the-shelf hardware with LabVIEW•Use less resources because systems are pre-built
•Faster time to market
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The Long Tail of Innovation in Embedded Measurement and Control Systems
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Financial History
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Strong Track Record of Growth and Profitability
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Our Long -Term View
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Driving Future Growth Through Our Investments
* Represents National Instruments expected headcount, communicated April 25, 2013.
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Diversity of Applications
No Industry >15% of Revenue in 2012
SemiconductorsEnergy
Big Physics
Life Sciences
Consumer Electronics
Mobile Devices
AutomotiveAdvanced Research
Defense/Aerospace
Academic
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*National Instruments defines large orders as orders over $20,000
Worldwide Large Order* Growth
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*A reconciliation of GAAP to non-GAAP results is available at investor.ni.com
Global PMI vs. NI Non-GAAP Revenue* Growth
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Optimizing Our Operating Model
*A reconciliation of GAAP to non-GAAP results is available at investor.ni.com
Non-GAAP Operating Income* and R&D as % of Revenue
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*A reconciliation of GAAP to non-GAAP results is available at investor.ni.com
Preserving our Non-GAAP* Gross Margins
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2013 Strategic GoalsDrive Organic Revenue Growth• Sustain our strategic investments in R&D and field sales
• Broaden and deepen our customer relationships
• Enhancing NI service offerings and partner network
Deliver Strong Profitability• Optimize NI operating expenses
• Preserve our strong gross margins
• Drive efficiency of resources added in 2011
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