BEACON INTERNATIONAL BUSINESS UPDATE NOVEMBER 2021 Beacon International (Hong Kong) Beacon Lighting America Beacon Lighting Europe Beacon Lighting China

Beacon Lighting Group Limited

1 INTRODUCTION 2 BEACON INTERNATIONAL (HONG KONG) 3 BEACON LIGHTING AMERICA 4 BEACON LIGHTING EUROPE 5 BEACON LIGHTING CHINA 6 BEACON INTERNATIONAL GROUP 7 GROWTH STRATEGIES 8 QUESTIONS

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BEACON INTERNATIONAL

INTRODUCTION

1 FANAWAY

In 2004, an Australian inventor had a vision to create a ceiling fan that had blades concealed within a light pendant and only transformed into a ceiling fan when it was switched on.
The product now known as Fanaway consisted of a unique synchronized retractable mechanism and a uniquely shaped aerodynamic blade design capable of stacking over each other in retracted mode and generating significant airflow when the blades were deployed.
In October 2005, Fanaway appeared on the “New Inventors” show on the ABC TV. Soon after, Beacon Lighting was brought on board to partner with the inventor to develop the product to the manufacturing and production stages, and further promote and distribute Fanaway to the global market.

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BEACON INTERNATIONAL

1 FANAWAY

Fanaway has design patents in Australia, USA, Europe, China, Hong Kong and
other parts of the world to protect the Fanaway intellectual property (IP)
The Fanaway design patents are owned by a BLX IP company in Hong Kong
Beacon Lighting sold the first Fanaway in Australia in 2007 and Fanaway continues to be one of the best selling fan ranges in Australia
The first Fanaway in partnership with the Australian inventor were sold internationally in 2009
In 2013, Beacon Lighting purchased 100% ownership of the Fanaway intellectual property and worldwide distribution rights
Today, Fanaway’s unique product design continues to excite customers and open doors for Beacon Lighting all around the world

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BEACON INTERNATIONAL

1 INTERNATIONAL STRATEGY

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Beacon Lighting in Australia has designed and developed a core range of 3,000 products for Beacon Lighting stores
Beacon Lighting brings to market 600 new fan and lighting products each year
The International Strategy for Beacon Lighting is to leverage the products that are developed for the Australian market and sell them to customers in other parts of the world
The International businesses leverage the supply chain, marketing, websites, systems, processes and support departments of the Beacon Lighting Group
Beacon Lighting sells to international customers by container, pallet or by individual item

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BEACON INTERNATIONAL

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1
BEACON INTERNATIONAL
VENLO, NETHERLANDS
Showroom
DUSSELDORF, GERMANY
Office & Warehouse
LOS ANGELES, CA, USA
Warehouse
DALLAS, TEXAS, USA
Showroom
HONG KONG
SAN DIEGO, CA, USA
Office
Office
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VENLO, NETHERLANDS
Showroom
DUSSELDORF, GERMANY
Office & Warehouse
BEACON INTERNATIONAL OFFICES,
SHOWROOMS AND WAREHOUSE LOCATIONS
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HONG KONG
Office
ZHONGSHAN
Office, Showroom & Warehouse
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BEACON INTERNATIONAL

1 PRODUCT RANGE

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Akmani Whitehaven

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Viceroy

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Radar

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Fanaway Evora
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Fan Accessories
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BEACON INTERNATIONAL

2

BEACON INTERNATIONAL (HONG KONG)

BEACON INTERNATIONAL (HONG KONG) - CUSTOMERS

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Beacon International (Hong Kong) has customers in more than 35 different countries.

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BEACON INTERNATIONAL CUSTOMER LOCATIONS

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UNITED STATES OF AMERICA
MEXICO
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ESTONIA
UNITED
NETHERLANDS
KINGDOM
GERMANY
BELGIUM RUSSIA
LUXEMBOURG CZECH REPUBLIC
UKRAINE
SLOVAKIA
SWITZERLAND
AUSTRIA
FRANCE
ITALY
SPAIN
GREECE
MALTA SOUTH KOREA
CYPRUS
CHINA
EGYPT ISRAEL
IRAQ
DUBAI, UAE
OMAN INDIA
THAILAND
VIETNAM
PHILIPPINES
SRI LANKA
SINGAPORE
MALDIVES
MALAYSIA
INDONESIA
NIGERIA
TANZANIA
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BOLIVIA
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MAURITIUS
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SOUTH AFRICA

Beacon International (Hong Kong) customers are managed out of the Hong Kong office and supported by the China office

NEW ZEALAND

BEACON INTERNATIONAL

2 BEACON INTERNATIONAL (HONG KONG) - SALES

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Beacon International (Hong Kong) - Sales
FY2017 FY2018 FY2019 FY2020 FY2021
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Beacon International (Hong Kong) - Royalty Income for Fanaway IP FY2017 FY2018 FY2019 FY2020 FY2021

Major Customers:

eCommerce, Distributor – South Korea
Department Store – Spain
eCommerce, Wholesale - Greece
Retailer, Wholesale – Mauritius
• eCommerce, Wholesale – Netherlands

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BEACON INTERNATIONAL

2 BEACON INTERNATIONAL (HONG KONG)
The majority of the inventory is sold by container, ex-factory from China. There is also a 3PL warehouse in China for smaller or mixed quantities of products

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Historically, the Hong Kong Lighting Fair has been held yearly and has been the most significant marketing event for Beacon International (Hong Kong)
The new sales channel of Tmall Global for sales to Chinese customers is managed by Beacon International (Hong Kong)

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BEACON INTERNATIONAL

BEACON LIGHTING AMERICA

NORTH AMERICA CEILING FAN MARKET

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The North America ceiling fan market is the largest ceiling fan market in the world, estimated at USD $2.1 billion[(1) ] with a forecast CAGR of 5.2% through to 2027[(1)]
The ceiling fan sales channel is dominated by large format retailers such as The Home Depot, Lowe’s and Menards and through their eCommerce sales channels
Another large market segment is the thousands of lighting showrooms who have dedicated fan displays in their stores
The ceiling fan market is fragmented with many suppliers. The largest suppliers include Minka, Kichler, Quorum, Craftmade and Hunter
Only the very largest businesses have any vertical integration (e.g. The Home Depot acquired HD Supply in December 2020)

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(1) The Insight Partners - Market Insights - May 2021

BEACON INTERNATIONAL

USA LIGHTING MARKET

The USA residential lighting market is the largest lighting market in the world, estimated at USD $42.1 billion[(1)]
The lighting market is very fragmented and made up of more than 14,000 lighting stores[(2)] which are generally small, family-owned businesses serving a local residential market
The lighting stores also have significant competition from the Large Format retailers (e.g. The Home Depot) and eCommerce businesses such as Wayfair
The largest lighting store chain in the USA is Lamps Plus with 39 stores and estimated sales of USD $195 million[(2)]
There is no vertical integration for USA lighting stores who are supplied by a fragmented market of wholesalers
(1) Statista - Lamps & Lighting - October 2020
(2) IBIS World Research – Lamps & Lighting Stores in the US – March 2019

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BEACON INTERNATIONAL

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3
BEACON LIGHTING AMERICA
–
SALES CHANNELS
Sales Channel Established Major Customers
Wayfair.com
eCommerce 2017 homedepot.com
lowes.com
Large Format Retail 2019 Menards
Lighting Showrooms Beacon B2C website
Agents 2020 Furniture Showrooms
B2C - Direct to Consumer
2021 USA Consumers
www.beaconlighting.us
Retail Stores ??? ???
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Jerry’s Retail Store, USA

BEACON INTERNATIONAL

3 BEACON LIGHTING AMERICA - AGENTS TERRITORIES

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80% of the USA

population is now serviced by Beacon Lighting America Sales Agents (Striped areas remain available).

BEACON INTERNATIONAL

3 BEACON LIGHTING AMERICA - MARKETING

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The Dallas International Lighting Show, Lightovation is held twice yearly. It is the largest residential lighting show in North America. The next show is scheduled for January 2022, highlighting the latest trends, innovations and products in lighting and ceiling fans
Beacon Lighting America has a permanent showroom at the Dallas International Lighting Show and provides an opportunity to showcase the latest product innovations to the entire North American market

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BEACON INTERNATIONAL

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3
BEACON LIGHTING AMERICA – SALES
Beacon Lighting America - Sales Beacon Lighting America
Number of Individual Customers [ (1) (2)]
102
52
27
14
10
FY2017 FY2018 FY2019 FY2020 FY2021 FY2017 FY2018 FY2019 FY2020 FY2021 [(3)]
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Q1 FY2022 Highlights

(1) eCommerce customers like Wayfair are viewed as one customer (2) B2C website sales channel are viewed as one customer (3) 2021 is based on September 2021 year to date customers

Established the new sales channel of B2C – Direct to Consumer website: www.beaconlighting.us
American sales are 77% ahead of last year
Agent sales to Showrooms have increased by more than 1,000%
Sales to Large Format Retail has increased by more than 360%

BEACON INTERNATIONAL

3 BEACON LIGHTING AMERICA

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Beacon Lighting America has invested in 150 items which consists of 25 fan families and accessories
All inventory is currently managed by a 3PL warehouse in Los Angeles
Beacon Lighting America has a serviced office in San Diego while the team members work from home based in Denver and Los Angeles
The Beacon Lighting China Team provides procurement and sales support services to Beacon Lighting America

BEACON INTERNATIONAL

BEACON LIGHTING EUROPE

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4
BEACON LIGHTING EUROPE - SALES
Beacon Lighting Europe - Sales
IRELAND
UNITED
NETHERLANDS
KINGDOM
GERMANY
BELGIUM
LUXEMBOURG CZECH REPUBLIC
FY2017 FY2018 FY2019 FY2020 FY2021
SWITZERLAND
AUSTRIA
FRANCE ROMANIA
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IRELAND
UNITED
NETHERLANDS
KINGDOM
GERMANY
BELGIUM
LUXEMBOURG CZECH REPUBLIC
SWITZERLAND
AUSTRIA
FRANCE ROMANIA
CROATIA
ITALY
SPAIN
GREECE
MALTA
CYPRUS
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Major Customers:

eCommerce, Amazon
Hardware Store, Germany
Lighting Stores, Furniture Stores
Project customers in various countries

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BEACON EUROPE CUSTOMERS
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BEACON INTERNATIONAL

4 BEACON LIGHTING EUROPE

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Beacon Lighting Europe has invested in 260 items which primarily consist of fans, accessories and a small range of lighting products
All inventory is currently managed by a 3PL warehouse in Dusseldorf
Beacon International Europe is serviced out of an office in Dusseldorf
The Beacon Lighting China Team provides support services to Beacon International Europe

BEACON INTERNATIONAL

BEACON LIGHTING CHINA

5 BEACON LIGHTING CHINA
• Beacon Lighting China currently do not sell direct to customers. Instead, the China team provide product development, procurement, quality assurance, logistics and sales support services to the other Beacon International businesses and the Beacon Lighting Group in Australia
Beacon Lighting China does have a showroom in Zhongshan, China which is used by all of the Beacon Lighting businesses
Beacon Lighting China may sell Australian Designed fans and lighting products to the Chinese consumer in the future

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Office

Reception

Showroom

Warehouse

BEACON INTERNATIONAL

BEACON INTERNATIONAL GROUP

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6
BEACON INTERNATIONAL GROUP
Sales (incl. Royalties) $AUD Millions
$12.3M
CAGR 30.5%
$8.5M
$7.7M
$5.8M
$4.2M
FY2017 FY2018 FY2019 FY2020 FY2021
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BEACON INTERNATIONAL

INTERNATIONAL GROWTH STRATEGIES
7 NEW SALES CHANNELS

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Early in FY2022, two new sales channels were established in international markets:

The new B2C – Direct to the Consumer sales website in the USA
The new Tmall Global Beacon Lighting store selling Australian Designed products to the China domestic market from Beacon International (Hong Kong)

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BEACON INTERNATIONAL

7 NEW CUSTOMERS EXISTING CHANNELS , The number of customers continue to grow so there is always the opportunity to sell to new customers through the existing sales channels. The establishment of the Sales Agents in the USA provides for exciting opportunities to sell more products into USA lighting and furniture stores in 2022 and beyond

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40 80
lighting and lighting and
furniture stores furniture stores
2020 2021
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160?
lighting and
furniture stores
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2022?
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BEACON INTERNATIONAL

7 EXISTING AND NEW CUSTOMERS With the home never having been more important than it is today, there are always opportunities to sell more products to existing customers in the future.

With 2022 being the year of the new COVID normal, the return of the major lighting shows in Dallas and Hong Kong, will provide opportunities for Beacon International to introduce our product ranges to new customers.

A marketing campaign involving google ad words and a social media strategy, will support the promotion of existing and new customers to the Beacon Lighting International sales channels.

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BEACON INTERNATIONAL

7 PRODUCT RANGE EXPANSION

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New ceiling fan product ranges will be introduced into the international markets. Some lighting products will be trialled in Europe in order to get a better understanding of the international lighting market

Orion 14 Light

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Fanaway Orbit

Aria Hugger

Peregrine

Fanaway Veil

Callam

BEACON INTERNATIONAL

7 EXCITING OPPORTUNITY

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Beacon International sales with a CAGR of 30.5% over the last 5 years has very exciting sales momentum
More than 70% of the Beacon International sales are ultimately sold to the end consumer through the rapidly growing eCommerce sales channel
The average ceiling fan price in the North America is estimated to be USD $75[(1)] compared to more than AUD $200 for Beacon Lighting in Australia. There remains significant up selling and growth opportunities in the middle to upper North America market
The North America ceiling fan market is forecast to grow at CAGR of 5.2% through to 2027 which remains a very attractive market to operate in
The key to success in the ceiling fan market lies in product differentiation, technology, innovation, premiumisation and a wide variety of sales channels
(1) Independent research prepared for the Beacon Lighting Group

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Sales (incl. Royalties) $AUD Millions
$12.3M
CAGR 30.5%
$8.5M
$7.7M
$5.8M
$4.2M
FY2017 FY2018 FY2019 FY2020 FY2021
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BEACON INTERNATIONAL

8 QUESTIONS

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 Group 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 Group will not necessarily release publicly any revisions to any such forward-looking statement.

The presentation contains general background information about the Group 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 Group. It should be read in conjunction with the Group’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.

BEACON INTERNATIONAL

AI assistant

BEACON LIGHTING GROUP LIMITED Investor Presentation 2021

64534_rns_2021-11-09_bf8a881e-c5f7-401d-b3ad-773fea23373b.pdf

CONTENTS

INTRODUCTION

1 FANAWAY

1 FANAWAY

1 PRODUCT RANGE

2

BEACON LIGHTING AMERICA

USA LIGHTING MARKET

Q1 FY2022 Highlights

BEACON LIGHTING EUROPE

BEACON LIGHTING CHINA

7 EXCITING OPPORTUNITY

8 QUESTIONS

DISCLAIMER

AI assistant

BEACON LIGHTING GROUP LIMITED — Investor Presentation 2021

64534_rns_2021-11-09_bf8a881e-c5f7-401d-b3ad-773fea23373b.pdf

CONTENTS

INTRODUCTION

1 FANAWAY

1 FANAWAY

1 PRODUCT RANGE

2

BEACON LIGHTING AMERICA

USA LIGHTING MARKET

Q1 FY2022 Highlights

BEACON LIGHTING EUROPE

BEACON LIGHTING CHINA

7 EXCITING OPPORTUNITY

8 QUESTIONS

DISCLAIMER

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