#1LANDAUERⓇ JOHN DOE RADIOLOGY LANDAUER, INC. SP luxel HEALTH STOVCH You For Life Investor Presentation August 2017#2LANDAUERⓇ Safe Harbor Statement Some of the information shared here (including, in particular, the section titled “Fiscal Year 2017 Outlook") constitutes forward-looking statements that are based on assumptions and involve certain risks and uncertainties. These include the following, without limitation: assumptions, risks and uncertainties associated with the Company's future performance, the Company's development and introduction of new technologies in general; the ability to protect and utilize the Company's intellectual property; events or circumstances which result in an impairment of assets, including but not limited to, goodwill and identifiable intangible assets; continued customer acceptance of the InLight technology; the adaptability of optically stimulated luminescence (OSL) technology to new platforms and formats; military and other government funding for the purchase of certain of the Company's equipment and services; the impact on sales and pricing of certain customer group purchasing arrangements; changes in spending or reimbursement for medical products or services; the costs associated with the Company's research and business development efforts; the usefulness of older technologies and related licenses and intellectual property; the effectiveness of and costs associated with the Company's IT platform enhancements and investments in cyber security enhancements; the anticipated results of operations of the Company and its subsidiaries or joint ventures; valuation of the Company's long-lived assets or reporting units relative to future cash flows; changes in pricing of services and products; changes in postal and delivery practices; the Company's business plans; anticipated revenue and cost growth; the ability to integrate the operations of acquired businesses and to realize the expected benefits of acquisitions; the risks associated with conducting business internationally; costs incurred for potential acquisitions or similar transactions; other anticipated financial events; the effects of changing economic and competitive conditions, including instability in capital markets which could impact availability of short and long-term financing; the timing and extent of changes in interest rates; the level of borrowings; foreign exchange rates; government regulations; accreditation requirements; changes in the trading market that affect the costs of obligations under the Company's benefit plans; and pending accounting pronouncements. These assumptions may not materialize to the extent assumed, and risks and uncertainties may cause actual results to be different from what is anticipated today. These risks and uncertainties also may result in changes to the Company's business plans and prospects, and could create the need from time to time to write down the value of assets or otherwise cause the Company to incur unanticipated expenses. Additional information may be obtained by reviewing the information set forth in Item 1A "Risk Factors" and Item 7A “Quantitative and Qualitative Disclosures about Market Risk” and information contained in the Company's Annual Report on Form 10-K for the year ended September 30, 2016 and other reports filed by the Company, from time to time, with the Securities and Exchange Commission. The Company does not undertake, and expressly disclaims, any duty to update any forward-looking statement whether as a result of new information, future events or changes in the Company's expectations, except as required by law. 2#3LANDAUERⓇ Compelling Investment Opportunity Global Leader in Occupational Radiation Products and Services Increased Regulation Drives Demand Compelling Growth and Expansion Opportunities . . • Industry-leading technology; proprietary Optically Stimulated Luminescence (OSL) crystal manufacturing process Installed based of over 73,000 customers; 1.8 million individuals served 90% recurring revenue; 94% annual customer retention Ability to provide enterprise radiation management or product only model The Joint Commission standards effective in July 2015 in the United States Impacts 7,100 of the 20,500 U.S. healthcare organizations and programs, including hospitals, imaging clinics and certain ambulatory care centers Estimated incremental cost of ~$30,000 annually for a hospital to comply with new standards International standards becoming more restrictive Next generation Verifii™ product has commenced initial field testing Well positioned to meet emerging need for broader solution Differentiated position creates higher barrier to entry for competition Strong Financial Profile Strong margins and limited capital requirements deliver compelling free cash flow • Defined capital allocation plan supports investment in growth initiatives and dividend Industry leading position, compelling market trends and strong financial profile drives long-term shareholder value#4LANDAUERⓇ Pa Technology Leading OSL Technology Supported by Proven Process Current Monthly Process (~15 million badges annually) JOHN DOE RADIOLOGY LANDAUER, INC. 08-01-15 103702 RAD 12344 Whole Body (chest) 9999999AA luxel+ LANDAUER ■ "Gold standard" in accuracy Proprietary OSL crystal technology manufactured internally ■ Delivers wide-range of radiation monitoring: X-Ray (Healthcare) Energy Spectrum Neutron (Nuclear) Key Facts Order placed; unique serial numbers are assigned for each participant's dosimeter Order is manufactured and physically shipped to customer Dosimetry Reports with results are made available to the customer ~45 days from date dosimeter was received by client Dosimeter is worn for designated wear period Headquartered in Glenwood, IL 650 global employees ■ Only national network of imaging physicists 8 global markets ■ Service labs in Chicago, Tokyo, Paris, Brazil, Mexico City, Istanbul, Sydney, Beijing 1.8M annual individuals served worldwide; 1.2M domestically Dosimeter is received and analyzed Dosimeter is physically shipped back to LANDAUER#5LANDAUERⓇ Serving Diverse End Markets Across Three Verticals $149 Million in FY 2016 Revenue Acute Care Hospitals Estimated U.S. Market Share - Professional Offices 6% Industrial Dosimetry 62% Acute Care Hospitals Professional Offices Industrial 74% IDN Hospitals Physician Offices Energy MEDICAL CENTER Regional Hospitals Veterinarian Emergency Response Imaging Centers Dental 0% 20% 40% 60% 80% Military/ National Security/DOE 5 Estimated Market share data for 2014#6LANDAUERⓇ Strong Global Footprint Well-positioned to serve an expanding global customer base of ~75,000 clients Chicago Brazil Mexico Paris Istanbul Beijing Tokyo Australia Service Labs 6#7LANDAUERⓇ Significant International Growth Opportunity Estimated 25% international market share provides ample room for continued growth FY GAAP 2016 Revenue 20% 80% Domestic U.S. International Additional $1.5 million in Equity Income from International Joint Ventures Joint Venture Nagase-LANDAUER Epsilon LANDAUER Aquila Location Japan Turkey New Mexico#8LANDAUERⓇ U.S. Healthcare Trends are Fueling Opportunity Risk to Health Systems Evolving Treatments . Advanced radiation treatment Healthcare Consolidation . Larger buying groups create the need for more integrated and cost-effective Tougher State Regulations Emerging • . • Pennsylvania California New Compliance Standards Heightened Diagnostic Imaging Requirements from The Joint Commission went into Massachusetts • Rhode Island Texas effect in July 2015 choices are becoming more prevalent solutions Escalating penalties for non-compliance including fines, reduced reimbursements and loss of license Increasingly complex and multi-dimensional radiation management landscape creates need for integrated, enterprise-wide solutions 8#9LANDAUERⓇ Radiation Measurement Mgmt. Reports Reports: Necessary for compliance Uniquely Positioned to Capitalize on Demand for Solutions Solutions Platform Training: Analytics: Benchmarking: Context to information Relevance to peers Worker Patient Assures compliance and patient outcomes Continuous Improvement: Integrated data across the enterprise Informatics Imaging Physics Equipment Space New Regulatory Requirements Create Customer Demand (Effective July 2015) Radiation Compliance Solutions Combining products, services, data and analytics to deliver improved and more compliant processes 6#10LANDAUERⓇ Connect: to Real Time Data ☐ Strategic Path Forward Launch and commercialization of VerifiiTM platform Intermittent analog measurement → Connected digital platform Provide customers with timely, actionable compliance solutions Generate meaningful cost benefits Integrate: to a Broader Solution Shift the market focus ■ Simple dose focus → Continuous management of radiation safety Better equip customers to monitor and control employee exposure and meet increasing compliance regulations Expand: Beyond Dose Leverage digital-based platform to grow offering of tailored products and services designed to better connect the employee to the work environment#11LANDAUERⓇ VerifiiTM: Redefining Our Core Technology A truly differentiated product and platform for incremental growth Verifii Provides customers with a scalable, digital platform that connects employees to their environment ■ Eliminates fragmented manual processes enabling focus on building a robust radiation management solution ■ Timely radiation data adds value to customers by allowing them to take targeted actions for practical and measurable process improvements ■ Controlled commercial launch expected in the second half of the year LANDAUER 0 6 0 LANBAUER 11#12LANDAUERⓇ Creating a New Standard with Digital Dosimetry ~30 million incidents measured annually (~1% physically handled) LANDAUER Merifi University Hospital 8451 9 485 ©20 Elevated Participant Doses 962 Elevated Area Doses SEPTEMBER 2013 Dosimeter is assigned to individual onsite; establishing chain of custody Dosimeter connects via Bluetooth LE to docking base station Data is processed and stored in the cloud Real-time and historic data & analytics are available to client via web & mobile apps LANDAUER Dr. Florrick DDE LDE THIS WEEK 10M MREM THIS QUARTER 100MREM SDE THIS MONTH 46M MREM Syncing... 250 ALARA 1 THIS YEAR 1820 MREM 5000 LIMIT 88 Allows customers to track trends, monitor event specific dose levels and enact behavioral changes to better manage long-term exposure LOG OUT#13LANDAUERⓇ Significant Opportunities Across Core Verticals Acute Care Hospitals Expand Professional Office Penetrate Industrial Customize Allows customers to outsource compliance and safety solution to LANDAUER at a lower cost 74% estimated U.S. market share Consulting force in place to meet demand from Joint Commission requirements Expand product line to include software, consulting and more dosimetry Deliver comprehensive compliance solution Virtual compliance solution for smaller offices that do not have an existing function in place 340,000 sites across Veterinarians, Medical, Dental and Chiropractic practices 6% estimated U.S. market share Increasing regulations and use of advanced imaging equipment driving need for radiation safety compliance Market need for simple, integrated solution Significant opportunity to drive margin expansion Turn-key solution allows for autonomous measurement and safety management Segmented into Oil, Gas, Nuclear and Military 62% estimated U.S. market share Exclusive provider of battlefield dosimeters for Army, Reserve and National Guard 37% of field units replaced Interoperability between branches Goal of steady recurring baseline revenue with significant upside from non- recurring orders 13#14LANDAUERⓇ Balanced Approach to Capital Allocation Fund Competitive Dividend ■ Currently 2%-3% dividend yield Long history of paying competitive dividend for over 20 years Invest in the Business ■ Core business investments focused on top and bottom line growth Emphasis on higher margin, annuity-style opportunities ■ Commercialization of next generation digital dosimetry platform while transitioning from current OSL crystal-based platform ■ Management compensation tied to ROIC Pay Down Debt ■ Long-term target of 2X - 2.5X Debt/EBITDA leverage ratio 14#15LANDAUERⓇ Compelling Investment Opportunity Global Leader in Occupational Radiation Products and Services Increased Regulation Drives Demand Compelling Growth and Expansion Opportunities Industry-leading technology; proprietary Optically Stimulated Luminescence (OSL) crystal manufacturing process Installed based of over 73,000 customers; 1.8 million individuals served 90% recurring revenue; 94% annual customer retention Ability to provide enterprise radiation management or product only model The Joint Commission standards effective in July 2015 in the United States Impacts 7,100 of the 20,500 U.S. healthcare organizations and programs, including hospitals, imaging clinics and certain ambulatory care centers - Estimated incremental cost of ~$30,000 annually for a hospital to comply with new standards International standards becoming more restrictive Next generation VerifiiTM product has commenced initial field testing Well positioned to meet emerging need for broader solution Differentiated position creates higher barrier to entry for competition Strong Financial Profile Strong margins and limited capital requirements deliver compelling free cash flow Defined capital allocation plan supports investment in growth initiatives and dividend Industry leading position, compelling market trends and strong financial profile drives long-term shareholder value#16LANDAUERⓇ Financial Overview#17LANDAUERⓇ LANDAUER Financial Overview Approximately 90% of revenue derived from subscriptions and is recurring in nature 2016 Revenues of $149.2 million impacted by 2015 Radon divestiture and 2016 Medical Products divestiture; pro forma 2016 revenues increased 4.8% Contract with U.S. Army, Reserve and National Guard to replace its antiquated radiation monitoring system provides opportunities to expand to other global military and first responder markets Strategic expansion contributing to long term growth prospects Strong history of EBITDA to support dividend, reinvestment in the core business and capital required to support strategic expansion Revenue ($ in millions, FYE 9/30) $155.1 $151.3 $149.7 $149.2 2013 2014 2015 2016 18#18LANDAUERⓇ Key Q3 FY 2017 Financial Drivers Q3 FY17 Financial Highlights Revenue $37.9 $45 • Revenue of $39.9 million in the third quarter of fiscal 2017 includes $40 $39.9 $0.0 $0.8 ($0.8 million) impact of our divested Medical Products business $35 $10.3 $9.6 • ⚫ Military product sales increased $30 $0.7 million compared to the prior year due to timing of shipments $25 • Medical Physics revenues grew 7% over Millions $20 the prior year period $15 $29.6 • Operating income of $8.6 million $27.5 compared to $7.7 million in the prior $10 year, impacted by the increase in military product sales $5 $0 Q3 2016 Q3 2017 Rad Measurement Med Physics Med Products 19#19LANDAUERⓇ Q3 FY2017 and Q3 FY2016 Comparable Results ($ Millions) Q3 FY2017 As Reported Q3 FY2017 Medical Products Q3 FY2017 Comparable, Excluding Divestiture* Adjustment Revenue Operating Income $39.9 $ - $8.6 $ - ($ Millions) Q3 FY2016 As Reported Revenue Operating Income * Non-GAAP financial measure $39.9 $8.6 Q3 FY2016 Medical Products Adjustment Q3 FY2016 Comparable, Excluding Divestiture* $37.9 $(0.8) $37.1 $7.7 $(0.1) $7.6 20 20#20LANDAUERⓇ Full Year FY2016 and FY2015 Comparable Results FY2016 FY2016 FY2016 ($ Millions) FY2016 As Reported Medical Products Adjustment Radon Adjustment Comparable, Excluding Divestitures * Revenue $149.2 $(5.8) $(0.1) $143.3 Operating Income $26.6 $(1.0) $(0.1) $25.5 FY2015 ($ Millions) FY2015 As Reported Medical Products Adjustment FY2015 Radon Adjustment FY2015 Comparable, Excluding Divestitures* Revenue $151.3 $(9.9) $(4.7) $136.7 Operating Income $23.7 $(1.5) $(1.1) $21.1 * Non-GAAP financial measure 21 24#21LANDAUERⓇ ($ Millions) Fiscal Year 2017 Outlook Fiscal Year 2017 Outlook FY 2016 Actual Impact of Divested Business, Gain on Divestiture and Other Expenses FY 2016 Excluding Divested Businesses, Gain on Divestiture and Other Expenses* Original Fiscal Year 2017 Guidance Revised Fiscal Year 2017 Guidance Revenue $149.2 ($5.9) $143.3 $149 $154 Unchanged Diluted EPS $1.85 ($0.22) $1.63 $1.65 1.71 $1.81 - 1.87 EPS for the first nine months of the year have been positively impacted by a one-time tax benefit and by equity earnings at joint ventures favorably impacted by capital sales *Non-GAAP financial measure 22 22#22LANDAUERⓇ Appendix#23LANDAUERⓇ Business Facts Headquartered in Glenwood, IL Founded in 1954 Approximately 650 employees 8 global markets ■ 73,000 annual customers served; 1.8M annual individuals served 94%+ Customer retention rates Fiscal 2016 Financial Highlights $149.2 Million in Annual Revenue $28.9 Million in International Sales ■ ~90% Recurring Revenues $41.2 Million in Adjusted EBITDA Adjusted EBITDA margin 27.6% LANDAUER at a Glance Proven Technology Platform Industry standard OSL technology Passive measurement of wide range of radiation from low energy X-Ray to high energy neutron Development of new digital dosimetry platform: Verifii™ Acute Care Hospitals JANICE WILMINGTON RADIOLOGY UNIVERSITY MEDICAL CENTER luxel LANDAUER Diverse Markets MEDICAL CENTER IDN Hospitals Regional Hospitals Imaging Centers Professional Offices Physician Offices Veterinarian Dental Industrial Energy Emergency Response Military/National Security/DOE#24LANDAUERⓇ Use of Non-GAAP Financial Measures Management believes the disclosure of certain non-GAAP financial measures enhances investor understanding of our financial performance. Non-GAAP financial measures disclosed in this report include: Pro Forma Revenue and Pro Forma Operating Income. The Pro Forma Revenue and Pro Forma Operating Income measures exclude the Medical Products business, which was divested in May 2016, and the Radon business, which was divested in September 2015. These financial measures are not recognized measurements under GAAP and should not be considered as an alternative to the most directly comparable measures presented in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included within this presentation.