Investor Presentation. August 2016

Transcription

1 Investor Presentation August 2016

2 Content 2 1. Who we are and our market 2. Creating value through growth 3. The Lumenpulse advantage 4. Our Acquisition Strategy

3 Who we are 3

4 Company Overview 4 VISION To become a world leader in specification-grade LED lighting solutions Founded in employees Fiscal 2016 Revenues of $145.1M 1 Revenue CAGR of 51% for FY 2013 to FY Year ending April 30 st 2016

5 Locations Footprint Headquartered in Montreal, Lumenpulse has a growing global reach 5 Sales Office and Manufacturing Facility Technology Center and Sales Office Sales Office Regional Sales Management Office (Hong Kong) and Experience Center (Singapore) Vancouver Montreal HQ Boston Québec Manchester London Paris Florence Hong Kong Singapore

6 Operating in a fast growing segment 6 GENERAL LIGHING MARKET Forecast LED Adoption Drivers Longer lifespan Increased energy efficiency 2 Greater design flexibility Regulations / Environmental benefits 1 Management estimates for the General Lighting Market includes light sources and fixtures for both consumer and professional markets, as well as controls. Controls include smart and non-smart controls and related services. 2 We believe that the current payback for typical installations is less than three years with paybacks as low as one year for certain LED retrofit applications

7 7 Specification-grade Lighting Solutions Market GENERAL LIGHTING MARKET 1 : $117 G FIXTURES and CONTROLS 1 : $92 G Light Sources & other 20% ~80% Fixtures and controls $92G 40% Stock & Flow 60% Specification $55G Less pricing pressure Solutions-driven / Focused on quality and technological features Fragmented with smaller players competing 1 Management estimates

8 Our Positioning in the LED Value Chain 8 Upstream Midstream Downstream Components LED Module/ Lamp Luminaires Integration and design services Commodity-driven market Value-added market

9 Our Product Portfolio 9 Lumenline family Lumenbeam family Lumenfacade family Our portfolio composed of more than Fluxwerx Profile Lumendome family Lumenarea family 400 products cover multiple lighting applications and offer numerous configurations Fluxwerx View Lumencove family Lumenalpha family

10 10 Our Brands High-performance, specification-grade LED luminaires for indoor and outdoor lighting applications, including commercial, institutional, and urban environments. High-performance specification grade LED downlights for flexible indoor lighting applications LED luminaires for a range of urban, area, and professional landscape lighting applications. Specification-grade LED decorative lighting solutions for hotels, museums, shops, and offices. 1 As of January 31, 2016 Specification-grade, LED general lighting for commercial and institutional applications, including workplace, education, and healthcare environments.

11 LED Market Segments and Growth 11 Our product portfolios and brands operate across all major segments including the fast growing indoor segments All figures, in millions of Dollars. Source : McKinsey : Lighting the way, 2012

12 12 Targeted Vertical Sectors Markets Landscape Museums Bridges Hospitality Offices Transport Retail Stores Facades Urban Investor Presentation, July 2015

13 Creating Value through Growth 13

14 Creating Value Long-term 14 TOP LINE GROWTH Leverage current sales network Channel expansion Portfolio expansion Synergies HOW WE CREATE VALUE = GROSS MARGIN EXPANSION Value engineering Improved manufacturing efficiency Material-cost reductions OPERATING LEVERAGE Leverage our workforce and infrastructure

15 Lumenpulse Delivers Above-market Growth Rate 15 TOTAL REVENUE CAGR: 51% FY 2013 FY 2016 (millions CAN$) For Fiscal 2017, we expect revenues of $230 to $240 million and anticipate an Adjusted EBITDA margin of 12%-14%

16 Financial Highlights Improving Profitability FY 2013 FY 2014 FY 2015 FY 2016 FY 2019 Goal Lumenpulse Products Adjusted Gross Margin Consolidated Adjusted Gross Margin Adjusted Operating Expenses 36% 44% 45% 49% 36% 42% 43% 48% 51% 41% 39% 40% Adjusted EBITDA (14)% 1% 4% 8% 18%-20% Our objective is to continue growing revenues at a growth rate exceeding the growth rate for the LED general lighting market converging, over time, towards market growth with an Adjusted EBITDA margin of approximately 18% to 20% within the next three years.

17 18 The Lumenpulse Advantage Customer Centric Superior Products and Strong Design Well-Established Sales Channels

18 Focused on customer needs Specification-Grade LED Solutions 19 Specifiers Looking for: Architects Engineers Lighting Designers Product + quality Technological features Lifetime economics Versatility Controllability Durability Sustainability Consistency & quality of light

19 Our Customers 20 Company Confidential

20 21 The Lumenpulse Advantage Customer Centric Superior Products and Strong Design Well-Established Sales Channels

21 A Key Competitive Advantage 22 Combining innovative technology with strong industrial design

22 Proprietary and Patented Technologies 23 Our technology platform is expandable across product categories and applications, providing an attractive opportunity for expansion and growth. 98 Patents granted 1 64 Patents pending 1 1 As of April

23 24 Innovative Technologies We are focused on developing innovative products and technologies, especially important in the specification-grade lighting market, positioning us to outperform our competition An embedded ASIC microchip technology that eliminates the need for power supplies, resulting in: Durability (10-yr limited warranty) Reduced size Best-in class performance (100 lm/w)

24 Enabling Smart Controls 25 Turns existing electrical wiring into digital control network Reduces installation costs Facilitates conversion to LED Compatible with all common control standards

25 26 The Lumenpulse Advantage Customer Centric Superior Products and Strong Design Well-Established Sales Channels

26 Strong North American Sales Network 27 Our high performance and sustainable specification-grade LED lighting solutions are promoted through a strong network of agents and VARs across the globe of which over 100 are located in North America Complete coverage

27 Expanding International Footprint 28 We have a growing number of agents and VARs in Latin America, South- East Asia, Middle East, Japan, Australia, New Zealand and Europe. Direct sales force and sales support teams in France, the U.K. and Italy represent a solid base to support and drive our global network. International Revenues of $36.3M for FY 2016 International revenues represent 25%

28 Recent Acquisitions 29

29 Acquisitions 30 Transactions Objectives Fluxwerx - March 2016 ($60M 1 ) Exenia - December 2015 ($14.9M 1 ) SDL Lighting - March 2015 ($3.2M) Ariane Controls - February 2015 AlphaLED - July 2014 ($30.4M) Expanded our product portfolio with complementary LED specification-grade products Increased our addressable market from 20% to 80% Increased our geographic coverage Expanded our LED expertise in new vertical segments Leveraged our proprietary technologies Integrated management with deep industry knowledge and aligned interest through Lumenpulse ownership 1 Excluding potential earn-out 2 Non-disclosed amount.

30 Recent Acquisition 31 Florence, Italy Deepening our offering of architectural indoor LED lighting solutions for decorative illumination for a wide range of retail, hospitality and museum environments. Providing a strong entry point in Italy with a wellestablished network of agents and VARs. Adding a highly creative team of designers.

31 Recent Acquisition 32 Vancouver, Canada Deepening our offering of architectural indoor LED lighting solutions for the fast-growing office and educational market segments. Adding a distinctive product offering with a minimalist product design, thin profiles and see-through lenses. Adding innovative, proprietary anidolic optical technology, delivering superior optical performance and energy efficiency. Adding a product portfolio covered by 20 patents and 15 patents pending.

32 Going Forward 33 Focus on integrating our recent acquisitions Execute on our product development roadmap and organic growth. Continue to invest in support of our international expansion with a focus on UK, France and Italy Continue to increase production capacity utilization and operating leverage to drive profitability

33 Notable projects 34

34 Birks Laval, Laval, QC, Canada Lighting Design: Aedifica 35

35 Boston Harbour Hotel, Boston, MA, USA Lighting Design: Lighting Design Collaborative 36

36 Burnham Building, Boston, MA, USA Lighting Design: Lam Partners Inc. 37

37 Cabrillo Bridge, San Diego, CA, USA Lighting Design: Illumination Arts 38

38 Cincinnatti City Hall, Cincinnatti, OH, USA Lighting Design: Eco Engineering 39

39 Délices Érable et Cie, Montréal, QC, Canada Lighting Design: Provencher Roy 40

40 Meubelplein Ekkersrijt, Eindhoven, Netherlands Lighting Design: Industrielicht 41

41 La Presse, Montreal, QC, Canada Lighting Design: 42

42 Lolë, Montreal, QC, Canada Lighting Design: Aedifica 43

43 Pont Lafayette, Lyon, France

44 Retailers Next, Rugby, Warwickshire, UK 45

45 US National Archives, Washington, DC, United States Lighting Design: Available Light 46

46 RJ Corman Bridge, Clarksville, Tennessee, United States Lighting Design: Tennessee Lighting Sales 47

47 Forward-looking Statements 48 This document contains forward-looking information within the meaning of applicable Canadian securities legislation. Such forward-looking information includes, but is not limited to, information with respect to our objectives and the strategies to achieve these objectives, as well as information with respect to our beliefs, plans, expectations, anticipations, estimates and intentions. This forward-looking information is identified by the use of terms and phrases such as may, would, should, could, expect, intend, estimate, outlook, target, goal, guidance, anticipate, plan, foresee, believe, or continue, the negative of these terms and similar terminology, including references to assumptions, although not all forward-looking information contains these terms and phrases. Statements with respect to potential benefits and synergies resulting from completed transactions and to future accretion to earnings per share constitute forward-looking information. Forward-looking information includes statements relating to annual targets, outlook, guidance and updates. See Financial Outlook in the Company s Management s Discussion & Analysis filed for the Fourth Quarter Fiscal Forward-looking information is provided for the purposes of assisting the reader in understanding the Company s financial performance, financial position, cash flows, its business, operations, prospects and risks at a point in time, and to present information about Management s current expectations and plans relating to the future and therefore the reader is cautioned that such information may not be appropriate for other purposes. Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors discussed under section Risk Factors in the Company s Management s Discussion & Analysis filed for the Fourth Quarter Fiscal Although the forward-looking information contained herein is based upon what we believe are reasonable assumptions, investors are cautioned against placing undue reliance on this information since actual results may vary from the forward-looking information. Certain assumptions made in preparing the forward-looking information and our objectives include: our ability to generate sufficient revenue while controlling our costs and expenses; our ability to manage our growth effectively; the absence of material adverse changes in our industry or the global economy; our ability to manage and integrate acquisitions; our ability to manage risks related to international expansion; our ability to raise sufficient debt or equity financing to support our business growth; our ability to maintain good business relationships with our agents and Value-Added Resellers ( VARs ); our ability to expand our sales and distribution infrastructure and our marketing; trends in our industry and markets; our ability to develop products and technologies that keep pace with the continuing changes in technology, evolving industry standards, new product introductions by competitors and changing client preferences and requirements; our ability to purchase components for our products at competitive prices; our ability to protect our intellectual property rights; the absence of intellectual property infringement or invalidity claims against us; our ability to retain key personnel; our ability to renew the leases for our existing facilities or find alternative facilities that meet our current and future needs, and assumptions used in preparing our Fiscal 2017 financial guidance under the section Financial Outlook in the Company s Management s Discussion & Analysis filed for the Fourth Quarter Fiscal Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and we do not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law and the Company reserves the right to change, at any time at its sole discretion, its current practice of providing annual targets and guidance.

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