BEACON LIGHTING GROUP LIMITED — AGM Information 2015

Oct 19, 2015

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Beacon Lighting Group Limited

ANNUAL GENERAL MEETING 20 OCTOBER 2015

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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CEO PRESENTATION

FY2015 RESULTS OVERVIEW

FY2015 HIGHLIGHTS

• Record sales and record profit results

• Sales increased by $29.0m, 19.3% ahead of last year

• Company store comparative sales increase of 10.4%

• Strong gross profit dollar increase of 20.1%

• Opened seven new company stores, purchased one franchise store and closed one company store

• Designed and developed 440 exclusive new products

• Increased sales across all divisions and sales channels

• Achieved expense productivity gains across all aspects of the business

• Operating expenses down 3.0% as a percentage of

• sales on FY2014

• EBITDA increased by $7.3m, 36.4% ahead of FY2014

• NPAT increased by $5.1m, 43.6% ahead of FY2014

• Inclusion in the ASX All Ordinaries Index

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YEAR-ON-YEAR RESULT

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FY2014 FY2015 $ + / - % + / -
$’000 $’000 on Last Year on Last Year
Sales 150,338 179,386 29,048 19.3%
Gross Profit 96,660 116,041 19,381 20.1%
Gross Profit Margin 64.3% 64.7%
Other Income 5,521 3,949 (1,572) (28.5%)
% of Sales 3.7% 2.2%
Operating Expenses [(1)] (82,095) (92,595) (10,500) 12.8%
% of Sales 54.6% 51.6%
EBITDA 20,086 27,395 7,309 36.4%
EBITDA Margin % 13.4% 15.3%
EBIT 18,066 25,042 6,976 38.6%
EBIT Margin % 12.0% 14.0%
Net Profit After Tax 11,797 16,939 5,142 43.6%
NPAT Margin % 7.8% 9.4%
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(1) Operating Expenses exclude depreciation, amortisation and financing costs.

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BALANCE SHEET

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FY2014 FY2015 $ + / - % + / -
$’000 $’000 on Last Year on Last Year
Cash 11,427 11,779 352 3.1%
Receivables 8,217 7,017 (1,200) (14.6%)
Inventories 32,194 44,656 12,462 38.7%
Other 365 997 632 173.2%
Total Current Assets 52,203 64,449 12,246 23.5%
PPE 16,818 19,121 2,303 13.7%
Intangible 4,125 5,085 960 23.3%
Other 3,832 5,481 1,649 43.0%
Total Non Current Assets 24,775 29,687 4,912 19.8%
Total Assets 76,978 94,135 17,158 22.3%
Payables 16,566 15,686 (880) (5.3%)
Borrowings 13,592 18,090 4,498 33.1%
Other 5,621 7,336 1,715 30.5%
Total Current Liabilities 35,779 41,112 5,333 14.9%
Borrowings 774 1,278 504 65.1%
Other 2,221 2,340 119 5.4%
Total Non Current Liabilities 2,995 3,618 623 20.8%
Total Liabilities 38,774 44,730 5,956 15.4%
Net Assets 38,204 49,406 11,202 29.3%
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BEACON LIGHTING TEAM

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GROWTH STRATEGIES 5

GROWTH STRATEGIES

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GROWTH STRATEGY UPDATE

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NEW STORE ROLLOUT • Target six new stores dependent on suitable sites, negotiations and availability.
• Independent analysis conducted showing growth for additional locations for the foreseeable
future.
OPTIMISING STORE • Drive increased sales and profits from the existing store network.
PORTFOLIO AND • Plan store expansions, store refits and merchandise upgrades.
OPERATIONS • Manage store systems and processes to improve performance.
• Continue to grow trade sales by catering to their specific service requirements.
NEW PRODUCTS • Introduce the latest fashion oriented products developed by our internal team exclusively for
AND RANGES Beacon Lighting.
• Continue to build awareness for the GE and Lucci brands.
• Increase the number of value products to drive sales and store traffic.
• Increase the range of trade products to better cater for this customer segment.
ONLINE • Implement better functionality within our core Beacon Lighting website.
• Continue to use social media to drive traffic and brand awareness.
• Investigate and introduce other online sales channels.
TECHNOLOGY • Research and develop the latest in technologically advanced lighting, globes and ceiling fan
IN LIGHTING products.
• Bring the latest technology to market.
• Continue to roll out LED technology throughout the product range.
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GROWTH STRATEGIES

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GROWTH STRATEGY UPDATE

GROWTH STRATEGY	UPDATE
ACQUISITIONS	• Acquire Beacon Lighting franchise stores as they become available. • Consider further acquisitions of existing lighting retail stores throughout Australia. • Consider and investigate acquisitions that are complementary to the Group.
EMERGING BUSINESSES	• Ensure that the emerging businesses are complementary to the core business. • Support and nurture the Beacon Solar and Beacon International businesses as they continue to become established. • Support and grow the new GE Distribution and Product Licence Agreement business.
EFFICIENCY GAINS	• Further effciency gains may be realised by managing the cost base as the business continues to grow.

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FY2016 OUTLOOK

FY2016 OUTLOOK

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Strategy Update

• Company store comparative sales have made a positive start to the year

• Acquired the Essendon (VIC) and Watergardens (VIC) franchise stores in September 2015

• GE Globes Licence and Sole Distribution Agreement commenced operation in September 2015

• Bundall (QLD), Maribyrnong (VIC), Preston (VIC), Gungahlin (ACT) and Fairfield Townsville (QLD) to

• open in FY2016

• Already released 132 new products for the Lamp and Spring/Summer Catalogues

• Implemented a new sales channel through ebay.com.au in July 2015

Market Conditions

• General market conditions remain supportive of Beacon Lighting

Summary

• Beacon Lighting expects the current growth strategies to continue to drive improved sales and profits in FY2016

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QUESTIONS