BEACON LIGHTING GROUP LIMITED — AGM Information 2018

Oct 8, 2018

CEO PRESENTATION

BEACON LIGHTING UPDATE

• Beacon Lighting Stores

• Beacon Lighting Commercial

• Emerging Businesses

• Historical Financial Performance

• Outlook for FY2019

• Questions

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ANNUAL GENERAL MEETING 2018

BEACON LIGHTING STORES

• Dominant market position in the retail lighting category in Australia

• 110 stores providing customers with convenience and choice

• Website generates significant traffic and sales with all orders being directed back to the store network for customer service and fulfillment

• 98% vertically integrated retailer from factory to customer

• Core range of more than 3,000 of the latest fashionable, technically advanced and energy efficient lighting and fan products

• Over 800 skilled lighting sales associates and over 300 are Accredited Lighting Design Consultants

• Beacon Design Studios now operating in 22 stores

• 312,000 VIP Customers and 24,000 Trade Club Customers all receiving special offers and benefits

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Beacon Design Studio
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ANNUAL GENERAL MEETING 2018

BEACON LIGHTING STORES (CONTINUED)

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Current Network
of 110 Stores
Potential Network
States
Network Plan
VIC + 16 49
QLD + 13 38
NSW + 26 56
WA + 6 20
SA + 3 9
NT + 1 2
TAS + 2 4
NATIONALLY + 67 178
NT 1
QLD 25
WA 13
SA 6
NSW 30
VIC 33
TAS 2
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ANNUAL GENERAL MEETING 2018

BEACON LIGHTING COMMERCIAL

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• Five Beacon Lighting Commercial Offices operating in VIC, NSW, QLD, SA and WA

COMMERCIAL

• Key sales channels include Volume Residential Builders, Wholesalers and Project Developers

• Provide lighting design consultations for the customers of Volume Residential Builders

• Selling the Beacon Lighting and GE product range to Electrical Wholesalers

• Working with developers, builders and architects to supply lighting and fan products into building projects

• Key strategies include expanding the volume residential customer base and expanding the product range for the Electrical Wholesale market

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ANNUAL GENERAL MEETING 2018

BEACON INTERNATIONAL

• Product innovation in Australia is leveraged and customised for international markets

• Beacon International continues to expand its customer base in the USA, Europe and Asia

• The Beacon International sales channels include E Commerce platforms, Wholesalers, Retailers and IP License Sales

• The Fanaway product range continues to be a competitive differentiator in international markets

• The key growth strategy for Beacon International is to continue to expand the product range to new customers in new markets through multiple sales channels

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I N T E R N A T I O N A L
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ANNUAL GENERAL MEETING 2018

LIGHT SOURCE SOLUTIONS

• Light Source Solutions is the sole distributor for GE Globes, GE Light Fittings and GE Street Lights in Australia and New Zealand

• GE remains one of the most recognised lighting brands in the world

• GE Globe and Light Fitting customers include Wholesalers, Retailers and the Project Developers

• GE Street Light customers include Councils, Utility Network Service Providers and Project Developers

• GE Street Light major sales opportunities continue to be the upgrade of street lights to new LED technology throughout Australia

• Key strategies involve continuing product development, improving in stock ratios and expanding the customer base

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ANNUAL GENERAL MEETING 2018

BEACON ENERGY SOLUTIONS & MASSON FOR LIGHT

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• Beacon Energy Solutions (formerly Beacon Solar) offer complete energy solutions including energy (including solar) design, installation and monitoring, HVAC treatment, lighting upgrades, battery storage, energy audits and maintenance contracts.

• PV Solar Systems and other efficiency technologies have been installed on 48 Beacon Lighting stores.

• Beacon Energy Solutions continues to have a strong commercial pipeline which also includes funding options for customers.

• The Masson for Light store in Richmond continues to grow market share by selling Australian designed and manufactured architectural lighting products for commercial, retail, hospitality, residential and open public spaces.

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ANNUAL GENERAL MEETING 2018

HISTORICAL FINANCIAL PERFORMANCE

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SALES $m GROSS PROFIT MARGINS
65.7%
236.0
215.0
64.7%
193.2
64.3%
179.4 63.9%
63.4%
150.3
FY2014 FY2015 FY2016 FY2017 FY2018
FY2014 FY2015 FY2016 FY2017 FY2018
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65.7%
64.7%
64.3%
63.9%
63.4%
FY2014 FY2015 FY2016 FY2017 FY2018
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EBITDA $m
33.2
29.2
27.6
27.4
20.1
FY2014 FY2015 FY2016 [3] FY2017 FY2018
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NPAT $m [2]
19.6
17.8
16.9
16.6
11.8
FY2014 FY2015 FY2016 [3] FY2017 FY2018
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ANNUAL GENERAL MEETING 2018

FY2019 OUTLOOK

• Comparative sales for Q1 FY2019 are in line with last year

• The Underwood (QLD) franchise store was converted to a company store in August 2018

• New company stores at Warrnambool (VIC) and Mackay (QLD) have opened. New stores in Moore Park (NSW) and Craigieburn (VIC) are expected to open in FY2019

• Launched Beacon Lighting as the “Home of Smart Lighting” with brands like Lucci, Google, Amazon, Philips and LIFX

• Set up the Brisbane DC operation

• Focus on improving the financial returns from the investments that have been made in recent years

• Beacon Lighting is looking forward to achieving record sales and record profits in FY2019

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ANNUAL GENERAL MEETING 2018

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QUESTIONS
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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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ANNUAL GENERAL MEETING 2018