BEACON LIGHTING GROUP LIMITED — AGM Information 2014

Oct 14, 2014

Beacon Lighting Group Limited AGM CEO PRESENTATION

Glen Robinson Chief Executive Officer 15 October 2014

IMPORTANT NOTICE & DISCLAIMER

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The Presentation contains “forward-looking statements”. All statements other than those of historical facts included in the Presentation are forward-looking statements. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. The Company will not necessarily release publicly any revisions to any such forward-looking statement.

The Presentation contains general background information about the Company and its activities current as at the date of this presentation. The information in this Presentation is in summary form only and does not contain all the information necessary to fully evaluate whether or not to buy or sell shares in the Company. It should be read in conjunction with the Company’s other periodic and continuous disclosure announcements lodged with the ASX, which are available at www.asx.com.au.

This Presentation is not a prospectus, disclosure document or other offering document. It is for information purposes only and does not constitute an offer, invitation or recommendation to subscribe for or purchase any security and does not form the basis of any contract or commitment.

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AGENDA

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1. FY2014 RESULTS

2. GROWTH STRATEGIES

3. FY2015 OUTLOOK

4. QUESTIONS

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FY2014 RESULTS

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HIGHLIGHTS

• Successful IPO on April 15th 2014

• Prospectus forecast achieved

• Record sales and profit results

• Sales increased by $17.4m, 13.1% ahead of last year

• Designed and developed 440 exclusive new products

• Opened six new stores, plus purchased one franchise store

• Company store comparative sales increase of 5.7%

• Operating expenses down 0.7% of sales compared to last year

• EBITDA increased $3.5m, 20.9% ahead of last year

• NPAT increased $2.3m, 24.8% ahead of last year

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YEAR-ON-YEAR RESULT

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$ Inc / Dec % Inc / Dec
$ ‘000 FY2013 [(1)] FY2014
on Last Year on Last Year
Sales 132,932 150,338 17,406 13.1%
Gross Profit 85,599 96,660 11,061 12.9%
Gross Profit Margin 64.4% 64.3%
Other Income 4,575 5,521 946 20.7%
% of Sales 3.4% 3.7%
Operating Expenses [(2)] (73,559) (82,095) (8,536) 11.6%
% of Sales 55.3% 54.6%
EBITDA 16,615 20,086 3,471 20.9%
EBITDA Margin % 12.5% 13.4%
EBIT 14,511 18,066 3,555 24.5%
EBIT Margin % 10.9% 12.0%
Net Profit After Tax 9,456 11,797 2,341 24.8%
NPAT Margin % 7.1% 7.8%
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(1) Based on the 52 Week FY2013 Pro Forma Historical result in the Prospectus dated 12 March 2014

(2) Operating Expenses exclude depreciation, amortisation and financing costs

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GROWTH STRATEGIES

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FOUNTAIN GATE STORE

• Fountain Gate franchise store will be acquired on 27[th] October 2014.

• Number 2 Beacon Lighting store in terms of sales $ in the Group in FY2014.

• Services the growing market of Melbourne’s SE Suburbs.

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INNOVATIVE PRODUCTS

Energy Efficient Technology

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Infinity Downlight

Fashion

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Nord Pendant
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GROWTH STRATEGY UPDATE

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GROWTH STRATEGY DETAIL UPDATE
NEW STORE ROLLOUT Target 6 new stores per year • Committed to 6 net new stores
• Opened Mittagong (NSW) in July 2014
• Small store formats and regional store success enables expansion to new locations
• Independent analysis conducted showing growth for additional locations for
the foreseeable future
• Closure of Hawthorn (VIC) in FY2015, will open Camberwell (VIC) in FY2015
OPTIMISING STORE Optimise store size, fit out, • 2 major refurbishments at Moorabbin (VIC) and Taren Point (NSW)
PORTFOLIO merchandising and operations • Drive increased sales and profit from the existing store network
AND OPERATIONS • Continue to grow trade sales by catering to their product and service requirements
NEW PRODUCTS AND Refresh the range with new • Introduce the latest fashion orientated products, developed by our own internal
RANGES fashion, technical and energy team exclusively for Beacon Lighting
efficient items • Increase the breadth and depth of our exclusive globe range
• Introduce new LED products and the latest advancements in that technology
• Continue to build awareness of our internal product brand ‘Lucci’
• Increase the range of trade lighting, globes and ceiling fans to better cater to that market
ONLINE Optimise customer experience • Better functionality within our core website
across our online assets • Introduce social media to drive traffic and brand awareness
• Introduce potential new websites to capture additional sales opportunities
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GROWTH STRATEGY UPDATE

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GROWTH STRATEGY DETAIL UPDATE
ACQUISITIONS Businesses that have synergies • Consider acquisitions of existing lighting retail stores in Australia
with the core Beacon business • Consider acquisitions of Franchise operated Beacon Lighting stores
• Acquisitions need to meet strict financial parameters
EMERGING Beacon Solar and Beacon • Continue to support the emerging business as they continue to have synergies with the core business
BUSINESSES International
EFFICIENCY GAINS Improve productivity throughout • Further efficiency gains can be realised by better control of the cost base as the business grows,
the business this includes evaluating processes, systems and technology to make better use of resources
within the business
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FY2015 OUTLOOK

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FY2015 OUTLOOK

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Beacon Lighting

• Strong comparative company store sales have continued into Q1 FY2015

• Store roll out is on track for 6 new company stores. Purchase the Fountain Gate (Vic) franchise store in October 2014

• Need for greater energy efficiency continues to drive rapid innovation in lighting technology

• Operating efficiencies remain a focus throughout the business

• A solid pipeline of fashion, technical lighting and ceiling fan releases for FY2015

• Actively investigating further acquisition opportunities

Market Conditions

• General market conditions remain supportive of Beacon Lighting and the lighting industry in Australia

Summary

• Beacon Lighting expects the current growth strategies to continue to drive improved sales

and profits in FY2015

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QUESTIONS

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