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Protecting America’s Businesses, Homes and Schools

September 2021

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.

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50% Commercial

50% Residential (Professional Installation)

100%

Commercial

Established: R&D Manufacturing(1)

Sales & Marketing

Corporate Offices:Amityville, NY

Manufacturing:Dominican Republic

Products sold through 10,000 + dealers,

integrators and distributors in the US

(B2B Business Model)

Leader in designing and manufacturing

commercial & residential security

products

Intellectual Property:Two dozen patents(2)

Proprietary software and copyrights

100%

Commercial

100%

Commercial

Napco Security Technologies, Inc. Family of Companies:

Total Revenue = 80% Commercial, 20% Residential

Company Overview

Notes: (1) ISO certified – highest quality standard (2) Issued and pending

50+ EngineersData Centers in Amityville

and Remote Location-Proprietary Software-

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Investment Highlights

1. Significant growth drivers: recurring revenue and school security

✓ Multi-decade upgrade cycle NOW underway for alarm systems → #1 growth driver of

high margin recurring revenue

✓ Urgent need for school security upgrades across the US - many K-12, colleges and universities have no systems in place

2. New hardware-enabled SaaS products

✓ Air Access is the industry's first cellular based access control system

✓ Enables locking and access control hardware to generate monthly recurring revenue (“MRR”)

3. Powerful distribution channel and installed base: Built over the last 50 years

4. Open architecture → NAPCO products can be used with any systems

5. Financially strong → strong cash position, industry-leading margins, and significant operating leverage going forward

6. Strong moat position given market-leading technology portfolio and dedicated national distribution network

7. Industry-leading executive team with 100+ years of experience and track record of innovation and managing growth → insiders own 22%

Recurring Revenue

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School Security and Security Alarms

• All copper telephone land lines and 3G systems for alarms are obsolete and being replaced

o Total of 5 million commercial buildings and 120 million residences affected

• $4.9 billion opportunity in 2021 for new installs and upgrades of existing systems(1)

• NAPCO has developed cellular-based solutions to combat the above:

o New recurring revenue products for security industry:Starlink, iSecure and Air Access

• Recurring revenue annual run rate is $40.1 million as of July 2021

• Recurring revenue gross margins are over 80%

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• NAPCO’s LocDown Systems offer a fully integrated solution

o Portfolio of products has solutions for all schools, whether K-12 or large University

• In the US, school security represents a ~$10 billion opportunity(2)

• Since 2018, over $1 billion has been budgeted towards funding school security in the US

• Proposed School Violence Prevention and Mitigation Act of 2019 would authorize an

additional $2 billion over 10 years for schools

Two Main Growth Drivers

Source: US Congress, US Department of Justice, management estimates (1) Research and Markets (2) National Center for Education Statistics (NCES) and Education Unlimited, based on 136,300 schools and an average spend of $75,000 per school

Product Examples

Small Business & Residential

Schools - Universities

Medical & Detention Centers

Commercial Buildings

• Managing hundreds of thousands of workers and v isitors

who need daily, weekly or single-use access • Can give access to specific personnel only for their

permitted areas of the building

• Allows teachers to lock down their classroom with a simple

key safely from inside the classroom• Presidents of universities can control lockdowns on all

campus buildings directly instead of relying on indiv idual

building staff to physically run through hallways

• Maternity wards can lock all doors and shut down elevators

to prevent intruders from leav ing hospitals with an infant• Anti-suicide locks for detention centers• Anti-microbial locks for hospitals

• Alarm system with full v ideo surveillance notifies you instantly

of break-ins after business hours or while your home is vacant, including second homes

• Full access climate control integrated into smartphone app

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Distributors

(200+ in US)

Independent Integrators

2,000 +

NAPCO factory sales team markets products to

distributors, dealers and integrators

Installing commercial access control, lock down systems and fire alarm systems in airports, office buildings, hospitals K-12

schools, colleges and universities with integrators such as Siemens and Red Hawk

80% of alarm sales are sold private

labeled to thousands of strategic

partners, including:

Independent Dealers

10,000 +

Distribution Channels

Installing small and medium sized business & residential jobs

FAMILY OF COMPANIES

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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

Recurring Revenue Products

SMALL MID SIZE BUSINESS /

RESIDENTIAL PANEL

$7 to $13 per month

Market Opportunity for New Installs and Retrofit:5 Million Commercial Buildings and 120 Million Homes

8Source: Management estimates

END USER

COMMERCIAL BUSINESS or RESIDENCE

NAPCO NETWORK OPERATIONS CENTER

$ MRR to NAPCO

DEALERS

CENTRAL ALARM STATION

✓ 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 and video

✓ StarLink Connect works with millions of existing competitors’ alarm systems

✓ Dealer pays NAPCO monthly recurring revenue (“MRR”) fees

Transmits to

Sends to

Product Highlights

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How Starlink Works

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Recently Introduced Recurring Revenue Product

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Business/Residential Alarm System

• 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 allow for residential and small to mid sized business applications• Dealers will get faster ROI vs competition

• Recurring revenue generator ($7-13 per month)

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Industry's First Cellular based Access Control System!

$1B Market OpportunityNew!

The Future

of Access Control & Locking !

Featuring cloud-

based services

*Additional

Recurring Serv ice Revenuegeneratorfor NAPCO

and dealers.

* Powered by proven Starlink technology

* No Corporate IT Department

integration needed -cellular basedtechnology

* No expensive

upfront hardwarecosts

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School Security & SafetyMajor Growth Driver

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26 States Since Feb 2018 ~ $1 Billion Dollars

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.

(PR – Bill Proposed by Rep. Williams & Deutch

- July 2019)

➢ DOJ Awards $50 Million in Grants

for School Security.

(PR – DOJ – September 2020)

➢ Virginia Dept. Of Ed Awards

$12M in grants for 489 schools

(VA Dept of Ed December 2020)

13Source: the 74milllion.org

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LocDown Systems SolutionsLock down classrooms, offices, common areas and labs safely from inside

Retrofits standard lockset, several lock body styles and finishes

$100 per door ASP

Simple and safe

lockdown process:• 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 status• Internal 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 and classrooms$600 Per Door ASP

$1,000 per door ASP

plus many more…

K-12 (Market is ~131,000 Schools)

Colleges & Universities (Market is ~5,300 Campuses)

plus many more…

Examples of Institutions Using Our LocDown Solutions

15Source: National Center for Education Statistics (NCES), Education Unlimited

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Alarms

&

Connectivity

Locking

Access Control

NAPCO SECURITYGROUP

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 Divisions’ Products

FUSION

Technology

Systems

ACCESS

CONTROL

ALARMS &

CONNECTIVITY• INTRUSION

• FIRE

• SAAS (MRR)

LOCKING

All Our Products are Integrated

NAPCO SECURITY

GROUP

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Data Center, Mobile Apps, Video

Technology Capabilities

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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 MRR opportunities

• Fire alarm systems conversion to

cellular in early stages – cost sav ings, reliability, carriers not supporting old copper telephone

serv ices• Locking and access control drivers

include new construction as well as retrofit opportunities

• School security a growth driver

Estimated 5 Million

Commercial Buildings

Commercial Market

Source: Management estimates

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Fiscal Q421& FY 2021 Highlights

Q4 Sales up 54%

to Record $35.4 M

FY21 Sales up 13%

to Record $114M

Q4 Recurring Revenue up 43%

Q4 MRR Gross Margin 87%

FY21 Recurring Revenue up 41%

FY21 MRR Gross Margin 86%

Recurring Revenue Annual Run Rate $40.1M*

*based on July 2021

FY21 Operating Income up 60% to $17.3M

FY21 Net Income up 75%

To Record $14.9M

FY21 EPS up 76% to $0.81

Adjusted EBITDA $19.5M

up 32% Y/Y

Adj. EBITDA per share $1.06*

Cash & Marketable Securities Balance of $40.2M

Cash from Operations for the FY21 increased 123% to $23M

Note: See GAAP reconciliation in Appendix

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Consistent MRR Growth & Expense Control

38% Growth 41% Growth

June 30, 2021 ($ in millions)

(1) Working capital shown as total current assets less total current liabilities.(2) Assumes PPP Loan of $3.9M will be forgiven(3) Diluted shares outstanding as of June 30,, 2021.

Amityville, NY and Dominican Republic company owned facilit ies on the books for <$1M while the market value exceeds $17M

180,000 square foot factory in Dominican Republic. ISO cert ified

95,000 square foot headquarters and factory in Amityville, NY

Cash and Marketable Securities $40.2

Working Capital(1) $75.8

Total Assets $123.3

Debt(2) $0

Total Liabilities $30.0

Stockholders’ Equity $93.2

Diluted Shares Outstanding(3) 18.4

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Selected Balance Sheet HighlightsNAPCO’S FACILITIES

Facilit ies in New York and the Dominican Republic allow for receiving products within approximately 6 days versus 6 weeks if were sourced from China

No U.S. tariffs for manufacturing components shipped from China to DR

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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.

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: $37.99

52 Week Range : $22.0-40.45

Shares Outstanding : 18.3M

Market Capitalization : $695M

Insider Ownership

~ 22%

Institutional Holders

Wasatch Advisors

Thrivent Asset Mgmt.

Fidelity Investments

Janus Henderson

GW&K Investment Mgmt.

Analyst Coverage

William Blair

Canaccord Genuity

Lake Street Capital

Imperial Capital

B Riley Securities

Needham&Co.

Data as of September 10, 2021

Investment Summary

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1. Significant growth drivers: recurring revenue and school security

✓ Multi-decade upgrade cycle NOW underway for alarm systems → #1 growth driver of

high margin recurring revenue

✓ Urgent need for school security upgrades across the US - many K-12, colleges and universities have no systems in place

2. New hardware-enabled SaaS products

✓ Air Access is the industry's first cellular based access control system

✓ Enables locking and access control hardware to generate monthly recurring revenue (“MRR”)

3. Powerful distribution channel and installed base: Built over the last 50 years

4. Open architecture → NAPCO products can be used with any systems

5. Financially strong → strong cash position, industry-leading margins, and significant operating leverage going forward

6. Strong moat position given market-leading technology portfolio and dedicated national distribution network

7. Industry-leading executive team with 100+ years of experience and track record of innovation and managing growth → insiders own 22%

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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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Financials

Financials

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