Investor Presentation | May 2014

Safe Harbor for Forward-Looking Statements

Except for the statements of historical fact, the information presented herein, as well as comments that management may make, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include but are not limited to quarterly fluctuations in results; customer demand for the Company’s products; the development of new technology for alternate means of motion picture presentation; domestic and international economic conditions; the management of growth; and other risks detailed from time to time in the Company’s Securities and Exchange Commission filings. Actual results may differ materially from management’s expectations. We refer you to the documents that Ballantyne files from time to time with the Securities and Exchange Commission. These documents identify and describe important factors that can cause results to differ materially from those contained in any forward-looking statements that we may make. Ballantyne assumes no obligation to publicly update or revise any forward-looking statements.

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• Recent acquisition provides entrance into fast growing markets

• Leading player in digital media

• Revenue mix transitioning to higher margin businesses with more recurring revenue

• Strong balance sheet supports strategic growth initiatives

• Discounted valuation trading at/or less than book value

Investment Highlights

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• 80-year track record as a leading supplier to the cinema industry

• Industry transition to digital projection systems required BTN to move from manufacturing and sales model to a distribution model

• BTN enters managed services business to provide theatres with management and monitoring of networked digital equipment

• Digital projection conversion cycle generated significant cash flow from 2010-2012

• Strategic plan developed to redeploy cash to acquire complementary companies with stronger growth opportunities

• Convergent Media Systems acquired in late 2013 to expand managed services business and enter new markets

Company Overview and History

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Systems Integration

Managed Services

• Convergent Media Systems

• Strong Technical Services

• Ballantyne Strong

• Strong/MDI Screen

• Strong-Westrex

Business Segments

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62%

38%

Percentage of Q1 2014 Revenues

Systems IntegrationManaged Services

Global Footprint

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Custom Lighting Solutions

Premium Large Format Screens

Video Security Solutions

Insert Pictures

Digital Projectors and Servers

Systems Integration Overview

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Manufacturing and distributing a broad range of leading edge products

Wraparound Screen System

360° Screen

Perforated 3-D Screen

World’s Largest 3-D Silver Screen

Unparalleled Screen Manufacturing Capabilities

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Unique Custom Screens for Global Customer Base

End-to-End Solutions Provider Design, Develop, Build and Maintain

Managed Services Overview

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Services Target VerticalMarkets

•Media Strategy Development

• Content Creation, Distribution and Management

• Network Monitoring & Field Support

•Retail•Financial Services•Cinema•Hospitality•Healthcare•Secondary Education

Robust Services Platform

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• 24/7/365 staffed help desk

• Pro-active maintenance & support

• Automated reporting

• Managed firmware upgrades

• Managed replacements

Omaha, NE Alpharetta, GA

State-of-the-Art Network Operations Centers (NOC)

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• Highly fragmented market with no dominant player

• Ballantyne is one of the few companies capable of providing complete end-to-end, single source solution for digital media campaigns

• Strong balance sheet and ability to be a consolidator provide competitive advantage

Digital Out-of-Home Market (DOOH)

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Digital technologies used for out-of-home messaging, advertising and communications

$0.0

$1.0

$2.0

$3.0

$4.0

$2.6

$1.6

$3.7

$2.9

2013 2017

Infrastructure Component

2013 NA Revenue2

2017 NA Revenue2

CAGR

Hardware (displays, players and mounts)

$783M $1,309M 14.0%

Software $245M $406M 13.5%

Content Management

$98M $183M 17.0%

Installation and Project Management

$208M $390M 17.0%

NOC Services $98M $183M 40.4%

Content Creation $122M $475M 17.3%

Digital Out-of-Home Market (DOOH) – North America

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DOOH InfrastructureAddressable Market = 17% CAGR through 2017

($ in B

illio

ns)

17%

CAGR

1 2

1. PQ Media; 2. IMS Research and internal pricing estimates

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OverviewConvergent programs and operates in-store media for Future Shop. Its work includes content acquisition, editing, play listing, encoding and distribution, as well as network operations, maintenance, monitoring and consultative services.

In 2012 Convergent leveraged its retail media platform in Future Shop stores to help create an immersive experience for Future Shop customers. Convergent implemented a solution that enabled Future Shop to manage and playback media across 25 media players that support 24 unique channels, including five video walls and zoned content throughout each store. The solution provides a full store media takeover and also supports the Future Shop HD wall.

Applications• Video walls• Full store takeover• Integration of Digital Signage and In-

Store Audio• Dynamic data pulls from web site• Custom application development

Future Shop Case StudyCanada’s Largest Consumer Electronics Retailer

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OverviewSony’s new retail stores provide its customers with an interactive, entertaining shopping experience. It wanted to showcase Sony technologies in a harmonized, integrated way, while providing its sales staff with enhanced tools to sell products. Convergent designed an integrated retail media solution that leveraged emerging technologies that allowed customers to interact with Sony technology and staff in a new and exciting way.

Applications• Bravia Wall• Digital Fact Tags• Integration of Digital Signage

and In-Store Audio• Digital Fins• Dynamic Input Change

Sony Stores Case Study

Growth in Managed Services – Equipment Monitored & Recurring Revenue

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Convergent accelerated growth in Managed Services business byadding more than 55,000 pieces of monitored networked equipment

2011 2012 20130

10,000

20,000

30,000

40,000

50,000

60,000

70,000

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

1,560 3,064

58,709

$2,310

$4,230

$7,930

Un

its

Mon

itore

d

Recu

rrin

g R

eve

nu

e

Financial Performance

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Peak of digital conversion cycle in

cinema industry

2003 2004 2005 2006* 2007* 2008* 2009 2010 2011 2012 2013*$25

$75

$125

$175

-$0.22

-$0.02

$0.18

$0.38

$0.58

$0.78

$0.98

$37.4

$49.1$53.9

$49.7 $51.5 $54.8

$72.1

$136.3

$184.4

$169.1

$103.6

$0.04

$0.37$0.31

$0.17

$0.05

-$0.11

$0.15

$0.59

$0.87

$0.39

$0.19

Sales in Millions Diluted EPS

Sales in Millions Diluted EPS

* - 2006 – 2008 diluted EPS excludes impairment of goodwill, 2011 and 2013 excludes one-time expenses related to reorganization and acquisitions. See Appendix for Non-GAAP Reconciliation

Strong Balance Sheet

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Manufacturing and distributing a broad range of leading edge products.

XxxXxxXxxXxxXxxXxxXxxxxx

Cash and cash equivalents $25.5 million

Working capital $47.6 million

Debt $0

Book value per share $4.60

Current ratio 3.6

March 31, 2014

• Net revenues of $22.0 million vs. $27.6 million in Q1 2013

Lower digital projector sales offset by higher revenues in Managed Services

• Gross margin increased to 19.1% vs. 14.2% in Q1 2013

Gross margin positively impacted by higher mix of Managed Services revenues

• Net loss of ($0.04) per share vs. net income of $0.04 per share in Q1 2013

Q1 2014 Summary

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• Strengthen Convergent’s business development capabilities to capture growth opportunities in digital media

• Expand managed services and network operations center (NOC) within cinema market and penetrate other strategic growth markets

• Build upon digital media capabilities to generate additional recurring revenue

• Leverage engineering and project management expertise to deliver user-friendly solutions to customers

• Continually expand product portfolio in Systems Integration segment into existing and new markets

Introduction of cloud-based video security solutions in 2014

Introduction of smaller screens to new markets

• Identify consolidation opportunities in fragmented DOOH market

• Create improved revenue mix

Greater diversification

Greater percentage of higher margin services

More recurring revenue

Growth Strategies

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Internationally Focused. Midwest Values.Gary Cavey, President and CEOThank you.

Appendix – Non-GAAP Reconciliation

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Twelve months ended December 31,

2006

Twelve months ended December 31,

2007

Twelve months ended December 31,

2008

Twelve months ended December 31,

2011

Twelve months ended December 31,

2013

Net Income $1,568 $228 ($3,034) $10,347 $163

Goodwill Impairment 1,251 639 2,314

Severance costs 1261 1460

Acquisition costs 359

Transitional costs 159

Amortization of inventory markup 164

Amortization of deferred revenue haircut 50

Pre-tax total 1,251 639 2,314 1,261 2,192

Income tax expense on adjustments (425) (217) (787) (454) (792)

Income tax on change in reinvestment position 1,038 1,038

Adjusted net income $2,394 $650 ($1,507) $12,192 $2,601

Diluted shares outstanding 13,915 14,095 14,019 14,031 14,031

Adjusted EPS-diluted $ 0.17 $ 0.05 $ (0.11) $ 0.87 $ 0.19