Thank you for visiting Raven Industries' website. I am Dan Rykhus, President and Chief Executive Officer. Raven is a company that drives technological innovation in the diverse markets we serve.

OUR VALUES

The values and guiding principles we share are rooted in what actually goes on at Raven day to day. Employees must exhibit ethical and honest behavior, and Raven must offer fair, equal treatment in a safe, healthy workplace. In such an environment, decision making and strategy flow naturally from the give-and-take of daily business contacts among all employees.

It is a respectful tone that acknowledges the right of every individual to be treated as a valued human being. That doesn't mean we are soft on performance, but even high performance is not enough if an employee is unable to embrace the values and guiding principles we live by.

GUIDING PRINCIPLES

• We achieve performance with integrity.
• We treat each other with dignity and respect while ensuring a safe workplace.
• Our employees are valued as individuals and challenged to grow and perform at their peak.
• Our customers and suppliers are considered business partners and treated that way.
• We are competitive and aim to win.
• We support diversity, employee involvement, and a climate of inclusiveness.
• Our profitability ensures the viability and growth of the organization.

The Raven corporate business model is our platform for success. That's why we spend so much time trying to get it right. If the model is wrong, little that follows will have any long-term value. Our business model is sustainable and geared to produce strong financial returns. It's based on three key elements:

1. We focus on niche markets where we can be a leader and achieve pricing flexibility. Being in niche markets may limit our growth in some cases, but it earns us better than average profit margins.
2. We create value for our customers and avoid labor intensive, commodity-type products. Our model is based on innovation, speed and high levels of engineering support and customer service.
3. We make corporate responsibility a core value. Corporate integrity and reputation attract good employees, customers and investment capital - and that's what maximizes long-term success.

We constantly evaluate our businesses for their growth and profit potential. Our aim is to optimize our core businesses and to reduce our investments in areas no longer deemed a strategic fit. For example, at the end of the 1990s we undertook a significant restructuring to better align our business mix and asset base in order to improve profitability and return on investment.

We've seen our share of challenging economic conditions. And there are times when prudence dictates a conservative posture versus a more aggressive focus on growth. During the past few years we faced unprecedented challenges in which key sectors of the economy were impacted from falling demand and volatile credit markets. In the midst of what some have dubbed the 'Great Recession' Raven followed a strong defensive game plan in which we had three priorities: 1) protect our core businesses; 2) generate cash; and 3) continue to invest in quality.

That brings us to today. While the economic environment remains somewhat volatile, we are preparing to shift gears once again to take advantage of our market position and our financial strength. Specifically, we have identified three emerging growth opportunities for which we are uniquely configured to gain share and grow profitably:

• Precision Agriculture - Raven is pursuing an information services strategy which complements our existing precision ag product strategy. This combination of products and services provides precision agriculture systems for growers, turning field data from their equipment into knowledge for improving productivity, efficiency and decision making, while reducing costs.
• Intelligence, Surveillance and Reconnaissance (ISR) - Changes in the world security environments have led to a new focus on wide-area persistent surveillance and strategic monitoring and communication support. There are also numerous non-defense applications that require cost-effective real-time monitoring solutions, including FEMA response and natural resource protection.
• High-Performance Engineered Films - A greater awareness of environmental protection and sustainability are driving the use of various high performance film uses. Advanced applications include moisture barriers to protect agricultural feedstocks, pit-liners for energy exploration and municipal waterways, form-fitting reinforced industrial wrap, and many others.

Faced with these opportunities, it's time for Raven to shift gears again toward growth. Working from a position of strength in terms of our market position and our balance sheet, our two key priorities are the following: 1) increasing investments in technology, new products and new applications; and 2) strengthening our business platform in key areas of R&D and business development.

What does this mean to our important constituencies: our employees, our customers, our communities and our shareholders?

For our employees, it means working for a winner and feeling like a winner. We want to be the best and be associated with the best. Raven will be that kind of company. Being with a company with a great reputation, we can take pride in what we do - working as a team and making friends. It means having the opportunity to grow in our jobs and to get promoted because we're with a strong, growing company.

For our customers, it means doing business with a strong partner that delivers product value and great customer service. Our customers should enjoy doing business with us. Above all, it means delivering on our promises. Customers can count on us.

For our communities, it means being the home of a growing and expanding business. It means being associated with a company doing the right things regarding health and safety; one that supports the community with its time, money and leadership. Raven will be known as a socially responsible corporation.

For our shareholders, it means investing in a company that lives up to its commitments and outperforms the competition and the market. Our shareholders expect us to make sound, sustainable financial decisions and to never forget to treat their money as if it were our own. Raven shareholders can trust our statements and the integrity of our financial reports.

Continuity is key at Raven. That applies to management as well. As your newly appointed CEO I have been handed the reins from a very capable chief executive, Ron Moquist. I take comfort in the fact that I have been a part of Raven for 20 years. As such, I grew up in the Raven culture and contributed to it. The Raven values and guiding principles have created an environment where decision-making and strategy flow naturally from the give-and-take of daily business contacts among all employees.

That's Raven Industries - a company with a proud past and a bright future; one of America's best small companies - with the drive to get even better.

Raven Industries, Inc.
P.O. Box 5107, Sioux Falls, SD 57117-5107
PH: (605) 336-2750