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Protecting America’s Businesses, Homes and SchoolsSeptember 2020

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Special Note on Forward-Looking Statements

This presentation contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of

future performance based on management's judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, statements relating to growth drivers of the Company’s business such as school security products

and recurring revenue services; potential market opportunities; the benefits of our recurring revenue products to customers and dealers; our ability to control expenses and costs; and expected annual run rate for Saas recurring monthly revenue. Forward-looking statements

involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements.

These factors include, but are not limited to, such risk factors described in our SEC filings, including our Annual Report onForm 10-K. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ

materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place

undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise

stated, and we undertake no duty to update such information, except as required under applicable law.

Use of Non-GAAP Financial Measures

We disclose certain non-GAAP financial measures in this presentation for our historical performance, including EBITDA, non-GAAP operating income and Adjusted EBITDA. We define EBITDA as GAAP net income (loss) plus income tax expense (benefit), net interest

expense and depreciation and amortization expense. Non-GAAP operating income excludes impairment of goodwill, amortization of intangibles, restructuring charges, stock-based compensation expense and other infrequent or unusual charges. We believe that these

historical non-GAAP financial measures provide useful information to both management and investors by excluding certain items and

expenses that are not indicative of our core operating results or do not reflect our normal business operations. In addition, our management uses non-GAAP measures to compare our performance relative to forecasts and to benchmark our performance externally against

competitors. The presentation of this information is not meant to be a substitute for the corresponding financial measures prepared in accordance with generally accepted accounting principles. Our use of non-GAAP financial measures has certain limitations in that such

non-GAAP financial measures may not be directly comparable to those reported by other companies. For example, the terms used in this

presentation, such as Non-GAAP operating income and Adjusted EBITDA, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our

performance in relation to other companies. We seek to compensate for the limitation of our non-GAAP presentation by providing adetailed reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP measures in the tables attached

hereto. Readers are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial

measures to their most directly comparable U.S. GAAP financial measures.

Leader in Designing and Manufacturing

Commercial & Residential Security Products

Corporate Offices :

Amityville, NY

Manufacturing :

Dominican Republic

Products Sold Through10,000 + Dealers,

Integrators & Distributors in the US

(B2B Business Model)

Established:

R&D

Manufacturing *

Sales & Marketing

Intellectual Property:

Two dozen patents*

Proprietary software and copyrights

Two Major Growth Drivers

1) Recurring Revenue

2) School Security

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*(issued & pending)

*(ISO Certif ied – Highest Quality Standard)

Company Overview

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50%

Commercial

50%

Residential

100%

Commercial

100%

Commercial

Total Revenues = 80% Commercial, 20% Residential

100%

Commercial

(Professional Installation)

The NAPCO Group of Companies

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Product Examples

Small Mid Size Business - Residential

Schools - UniversitiesCommercial Buildings

Medical Centers & Detention Rooms

(Product Portfolio includes 4K SKU’s)

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Distributors

(200+ in US)

Independent Integrators

2,000 +

NAPCO Factory Sales Team Markets Products to

Distributors, Dealers & Integrators

Installing commercial access control and fire alarm systems for K-12 Schools, Universities, Airports, Office Buildings and

Hospitals with integrators such as Siemens and Red Hawk.

80% Of Alarm Sales Are Sold Private

Labeled For Thousands Of Strategic

Partners, A Few Examples Include:

Independent Dealers

10,000 +

Distribution Channels

Installing small and medium sized business & residential jobs

FAMILY OF COMPANIES

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END USER

COMMERCIAL BUSINESS or RESIDENCE

NAPCO NETWORK OPERATIONS CENTER

$ RMR to NAPCO

DEALERS

CENTRAL ALARM STATION

✓ Eliminates The Traditional Telephone Land Line ✓ Alarm Signal Transmitted Via Verizon, AT&T And T-Mobile Cellular Networks

✓ Signal-Boost™ Technology To Provide Reliability Even In Remote Areas

✓ iBridge Smartphone IoT App Controls Lighting, Locks, Climate & Video✓ StarLink Connect Works With Millions of Existing Competitors Alarm Systems

✓ Upfront Equipment Sales PLUS Recurring Revenue with up to 90% Gross Margin!✓ Dealer pays NAPCO RMR Monthly Fee

SMALL MID SIZE BUSINESS / RESIDENTIAL$7 to $13 per month

SMALL MID SIZE BUSINESS / RESIDENTIAL$6-8 per month

COMMERCIAL FIRE $12-26 per month

SINGLE PATHCELLULAR

DUAL PATH

CELLULAR + IP

FIRELINK PANEL WITH

STARLINK COMMUNICATOR

BUILT IN

IoT SmartPhone App

How

StarlinkWorks

Transmits

to

Sends

to

Recurring Revenue Products

SMALL MID SIZE BUSINESS / RESIDENTIAL PANEL$7 to $13 per month

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Recently Introduced Recurring Revenue Product

• Winner of MVP Award @ ISC West Trade Show

• Designed for 1 hour installation time

• Alarm Panel separate from keypad – system not disabled if burglar smashes keypad • iBridge app delivers smart home features – lighting, climate control, video alerts etc.

• Up to 80 zones allows for residential and small mid size business application• Dealers will get faster ROI vs competition

• Recurring Revenue Generator ($7-13 per month)8

Business/Residential Alarm System

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School Security & SafetyMajor Growth Driver

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Source: the74million.org August 2018

Examples Include:• Florida $500M

• Wisconsin $100M

• Maryland $125M• Plus More!

Funding for School Security Significantly Increased

Recent Headlines

➢ The School Violence Prevention

and Mitigation Act of 2019

authorizes $2 billion over 10

years for schools to first identify

security risks and then address

any shortfalls.(Bill Proposed by Rep. Williams & Deutch

PR July 2019)

➢ DOJ Awards $85.3 Million in

Grants for School Security.(Sour ce: DO J PR(October 2019)

➢ Kentucky Legislature recently

approved Fiscal 2021 budget

includes $40 Million for school

security.

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LocDown Systems SolutionsLock down classrooms, offices, common areas, labs, with a key, safely from inside

Retrofits standard lockset, several lock body styles & finishes

$100 Per Door ASP

Lock down

classrooms & offices from inside safely:

With a pushbutton on inside door or

wireless fob Lock down up to four doors locally

at once.

$500 Per Door ASP

Campus Security System Lockdown/Notification

App for Staff & Teacher Smartphones.Emergency notifications and pinpointed statusInternal PA and outbound communications with

first responders.

Lockdown activated by the server or from authorized personnel at an indiv idual access lock

Real-time global lockdown or unlock in under 10 seconds, ideal for offices, labs, dorms & classrooms

$600 Per Door ASP

$1,000 Per Door ASP

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plus many more…

K-12 (Market is 100,000 Schools)

Colleges & Universities (Market is 10,000 Campuses)

plus many more…

Examples of institutions using our LocDown Solutions

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Alarms

&

Connectivity

Locking

Access Control

NAPCO SECURITY

TECHNOLGIES INC.

INTRUSION & FIRE

NAPCO Is The Only Company With Products In All Three Security Verticals

Competitive Landscape

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Enterprise-Class Platform That Integrates Each Of Our Division’s Products

FUSION

Technology

Systems

ACCESS

CONTROL

ALARMS &

CONNECTIVITY

• INTRUSION

• FIRE

• SAAS (RMR)

LOCKING

Integrated Solutions

INTRUSION & FIRE

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Market Opportunity

Residential Market

Homes in US Professional Installed Security

120 Million Homes

22 Million

Opportunity for New Installs and Retrofit

• DIY products not hav ing material

impact on professional installations• Conversion to cellular alarms in

early stages

• Professional Dealers driven by RMR opportunities

• Fire Alarm systems conversion to

cellular in early stages – cost sav ings, reliability, carriers not supporting POTS

• Locking and Access Control drivers include new construction

as well as retrofit opportunities• School Security a Growth Driver

Estimated 5 Million Buildings

Commercial Market

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Fiscal Q4 & FY2020 Highlights

Fourth Quarter Sales

$23.0 Million

FY 2020 Sales

$101.3 Million

FY 2020 Recurring Revenue Increased 38%

Recurring Revenue Annual Run Rate $27.5 MM*

FY 20 RMR Gross Margin 82%*based on June 2020

FY 2020 Operating Income $10.8M

FY 2020 Net Income

$8.5M

Fiscal Year 2020 EPS .46

Adjusted EBITDA $14.7M

Adj. EBITDA per share .80

Cash Balance of

$18.2 Million

Zero Debt

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Figures in thousands, except EPS

Fiscal Quarter Performance

Fiscal Period3

Months Ended

6/30/20

3Months Ended

6/30/19

12Months Ended

6/30/20

12Months Ended

6/30/19

Sales $23,006 $29,584 $101,359 $102,932

Net

Income(Loss)

$(1,900) $4,728 $8,520 $12,223

EPS $(0.10) $0.26 $0.46 $0.66

Adjusted

EBITDA

$1,480 $5,151 $14,744 $15,035

Adjusted

EBITDA EPS

$0.08 $0.28 $0.80 $0.81

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2018 2019 2020

Revenue SG&A R&D

$91.7M $102.9M $101.3M

Consistent Growth & Expense Control

7%

7% 7%

25%

23% 23%

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$1.4 $1.6

$2.2

$4.7

$2.1

$3.8 $4.0

$5.2

$4.0

$4.7 $4.9

$1.5

$-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

Q1 Q2 Q3 Q4

FY 2018 FY 2019 FY2020(millions)

Adjusted EBITDA by Quarter

Seasonality Impacts Financial Performance, Expect RMR to Mitigate Seasonality

June 30,2020 (Millions)

(1) Working capital shown as total current assets less total current liabilities.(2) Diluted shares outstanding as of June 30,2020.

Amityville, NY and Dominican Republic Company Owned Facilit ies on the Books For < $1MM While The Market Value Exceeds $17MM

180,000 Square Feet Factory in Dominican Republic. ISO Cert ified

100,000 Square Feet Headquarters and Factory in Amityville, NY

Cash and Cash Equivalents $18.2

Working Capital(1) $62.8

Total Assets$105.8

Debt $0

Total Liabilities $28.0

Stockholders’ Equity$77.9

Diluted Shares Outstanding(2) 18.3

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Selected Balance Sheet HighlightsNAPCO’S FACILITIES

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Management

Richard Soloway / President & CEO - Founder, 30+ years security, electronics experience.

Founded two prev ious companies the first of which installed electric garage door openers and the second manufactured guitar amplifiers, buzz boxes and wah wah pedals .Winner of numerous awards including Ernst &Young’s Entrepreneur of the Year and holder of patents

relating to security products

Kevin Buchel / Senior Vice President & CFO - Over 25 years of experience in the security

industry. Began career at Coopers & Lybrand. Certified Public Accountant

Jorge Hevia / Chief of Marketing - Over 20 years of experience in the security industry.

Successful track record in marketing and sales at leading consumer product companies such as Colgate-Palmolive and Unilever

Michael Carrieri / SVP Engineering - Over 20 years of experience in the security industry.

Extensive knowledge of developing advanced electronic products with applications in military/defense, media/broadcasting and consumer electronics. Fire Chief Emeritus of the Fire Department of Melv ille, Long Island

Stephen Spinelli / SVP Sales - 25 years of sales experience in the security industry. Prev iously Mr. Spinelli was with a global leader in commercial & residential security systems, comprising alarms, access control and locking. He has a proven track record of leading sales teams

and consistently surpassing sales goals.

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Stock Snapshot

Stock Price: $23.25

52 Week Range : $13.33-34.91

Shares Outstanding : 18.3 MM

Market Capitalization : $425 MM

Insider Ownership

~ 38 Percent

Institutional Holders (33% +)

Wasatch Advisors

Allianz Global

Fidelity Investments

Ranger Investment Mgmt

Analyst Coverage

William Blair

Canaccord Genuity

Lake Street Capital

Imperial Capital

Data as of September 4, 2020

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Summary

✓ Financially Strong: LTM Revenue of $101M, Zero Debt

✓ Growth Drivers: Recurring Revenue and School Security

✓ SaaS RMR Now at $27.5 MM* Annual Run Rate

✓ Consistently Profitable Company With 38% Insider Ownership

*As of June 30,.2020

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Thank You !!

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If you would like to receive an electronic copy of this

presentation:

Visit – www.investor.napcosecurity.com

or

Email – Patrick McKillop / Director of Investor Relations -pmckillop@napcosecurity.com

Follow NAPCO on social mediaTwitter @NSSCSecurityFacebook @Napco-Security-Technologies-Inc

APPENDIXFinancial

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Napco Security Technologies Inc (NSSC US) -

Adjusted

In Millions of USD except Per Share FY 2018 FY 2019 FY 2020

12 Months Ending 06/30/2018 06/30/2019 6/30/2020

Revenue 91.75 102.93 101.3

+ Sales & Services Revenue 91.75 102.93 101.3

- Cost of Revenue 53.75 59.04 57.76

Gross Profit 38.00 43.89 43.59

- Operating Expenses 29.58 30.42 30.92

+ Selling, General & Admin 22.95 23.21 23.67

+ Research & Development 6.63 7.21 7.25

Operating Income (Loss) 8.41 13.47 10.81

Pretax Income (Loss), GAAP 8.33 13.45 10.8

- Income Tax Expense (Benefit) 0.68 1.22 2.28

Net Income, GAAP 7.65 12.22 8.5

Basic Weighted Avg Shares 18.79 18.57 18.44

Basic EPS, GAAP 0.41 0.66 0.46

Diluted Weighted Avg Shares 18.825 18.624 18.49

Diluted EPS, GAAP 0.41 0.66 0.46

Reference Items

EBITDA 9.82 14.88 14.74

EBITDA Margin (T12M) 10.71 14.45 14.55

Gross Margin 41.41 42.64 43.0

Operating Margin 9.17 13.08 11.73

Profit Margin 8.34 11.87 8.35

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Reconciliation of Non GAAP Financial Measures

Fiscal Year Ended June 30 ($ in thousands) 2018 2019 2020

Net Income (GAAP) 7,649 12,223 8,469

Add back provision for income taxes 684 1,222 2.,284

Add back interest expense 81 21 9

Operating Income (GAAP) 8,414 13,466 10,800

Adjustments for non-GAAP measurements of performance

Add back amort izat ion of acquisit ion-related intangibles 371 313 264

Add back stock-based compensation expense 145 160 583

Adjusted non-GAAP operating income 8,930 13,939 13,512

Add back depreciat ion and other amort izat ion 1,039 1,096 1.232

Adjusted EBITDA (earnings before interest, taxes, depreciat ion and

amort izat ion) 9,969 15,035 14,744

Adjusted EBITDA* per Diluted Share 0.53 0.81 0.80

Weighted average number of Diluted Shares outstanding 18,825,000 18,624,000 18,493,000