Investor
Presentation
August 2016
Content
1. Who we are and our market
2. Creating value through growth
3. The Lumenpulse advantage
4. Our Acquisition Strategy
2
Who we are
3
VISION To become a world leader in
specification-grade LED lighting
solutions
Founded in 2006
587 employees
Fiscal 2016 Revenues of $145.1M1
Revenue CAGR of 51% for FY 2013 to FY 2016
Company Overview 4
1 Year ending April 30st 2016
Locations
Vancouver
Montreal HQ Québec
Boston
London
Manchester Paris
Florence
Hong Kong
Singapore
Sales Office and Manufacturing Facility
Technology Center and Sales Office
Sales Office
Regional Sales Management Office (Hong Kong)
and Experience Center (Singapore)
Footprint Headquartered in Montreal, Lumenpulse has a
growing global reach
5
Operating in a fast growing segment 6
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
LED Adoption Drivers
Longer lifespan
Increased energy
efficiency2
Greater design flexibility
Regulations /
Environmental benefits
GENERAL LIGHING MARKET
2015-2019 Forecast
Specification-grade Lighting Solutions Market 7
Less pricing pressure
Solutions-driven / Focused on
quality and technological features
Fragmented with smaller players
competing
7
1Management estimates
Light Sources
& other
~80%
Fixtures and
controls
$92G
GENERAL LIGHTING MARKET1: $117 G
60%
Specification
$55G
40%
Stock &
Flow
FIXTURES and CONTROLS1: $92 G
20%
Our Positioning in the LED Value Chain
Upstream Midstream Downstream
Components LED Module/
Lamp Luminaires
Integration and design services
8
Commodity-driven market Value-added market
Lumenbeam family
Lumenfacade family Lumenline family
Lumencove family
Lumendome family
Fluxwerx View
Fluxwerx Profile
Lumenalpha family
Lumenarea family
Our portfolio
composed of
more than
400 products
cover multiple
lighting
applications and
offer numerous
configurations
Our Product Portfolio 9
Our Brands
10
1 As of January 31, 2016
High-performance specification grade LED downlights for
flexible indoor lighting applications
Specification-grade LED decorative lighting solutions for
hotels, museums, shops, and offices.
Specification-grade, LED general lighting for
commercial and institutional applications, including
workplace, education, and healthcare environments.
LED luminaires for a range of urban, area, and
professional landscape lighting applications.
High-performance, specification-grade LED luminaires for
indoor and outdoor lighting applications, including
commercial, institutional, and urban environments.
10
All figures, in millions of Dollars. Source : McKinsey : Lighting the way, 2012
LED Market Segments and Growth 11
Our product portfolios and brands operate
across all major segments including the fast
growing indoor segments
Targeted Sectors 12
Retail Stores
Museums Landscape
Investor Presentation, July 2015
Bridges
Hospitality Offices Transport
Facades Urban
Targeted Vertical Markets
Creating Value through Growth
13
Creating Value Long-term 14
HOW WE CREATE VALUE
TOP LINE GROWTH
GROSS MARGIN EXPANSION
OPERATING LEVERAGE
=
Leverage current sales network
Channel expansion
Portfolio expansion
Synergies
Value engineering
Improved manufacturing efficiency
Material-cost reductions
Leverage our workforce
and infrastructure
Lumenpulse Delivers
Above-market Growth Rate
15
(millions CAN$)
TOTAL REVENUE CAGR: 51%
FY 2013 – FY 2016
For Fiscal 2017, we
expect revenues of
$230 to $240 million
and anticipate an
Adjusted EBITDA
margin of 12%-14%
Lumenpulse Products Adjusted
Gross Margin 36% 44% 45% 49%
Consolidated Adjusted Gross
Margin 36% 42% 43% 48%
Adjusted Operating Expenses
51% 41% 39% 40%
Adjusted EBITDA (14)% 1% 4% 8% 18%-20%
Financial Highlights Improving Profitability
16
FY 2013 FY 2019 Goal FY 2014
…
FY 2015
16
FY 2016
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.
The Lumenpulse Advantage
18
Customer Centric
Superior Products and Strong Design
Well-Established Sales Channels
+ Product quality
Technological features
Lifetime economics
Versatility
Controllability
Durability
Sustainability
Consistency & quality of light
ght
Specifiers Looking for:
Architects
Engineers
Lighting Designers
1
9
Focused on customer needs Specification-Grade LED Solutions
19
Our Customers
Company Confidential
20
The Lumenpulse Advantage
21
Customer Centric
Superior Products and Strong Design
Well-Established Sales Channels
A Key Competitive Advantage
Combining innovative technology with strong industrial design
22
98 Patents granted1
64 Patents pending1
1 As of April 30 2016
Proprietary and Patented Technologies 23
Our technology platform is expandable across product
categories and applications, providing an attractive opportunity
for expansion and growth.
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
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
Enabling Smart Controls
Turns existing electrical wiring into digital
control network
Reduces installation costs
Facilitates conversion to LED
Compatible with all common control
standards
25
The Lumenpulse Advantage
26
Customer Centric
Superior Products and Strong Design
Well-Established Sales Channels
Complete coverage
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
27
Strong North American Sales Network 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 represent
25%
International
Revenues
of $36.3M for FY 2016
Recent Acquisitions
29
Objectives
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
Transactions
Fluxwerx - March 2016 ($60M1)
Exenia - December 2015 ($14.9M1)
SDL Lighting - March 2015 ($3.2M)
Ariane Controls - February 2015
AlphaLED - July 2014 ($30.4M)
Acquisitions 30
1 Excluding potential earn-out 2 Non-disclosed amount.
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 well-
established network of agents and VARs.
Adding a highly creative team of designers.
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.
Recent Acquisition
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
Going Forward
33
34
Notable projects
Birks Laval, Laval, QC, Canada
Lighting Design: Aedifica
35
Boston Harbour Hotel, Boston, MA, USA
Lighting Design: Lighting Design Collaborative
36
Burnham Building, Boston, MA, USA
Lighting Design: Lam Partners Inc.
37
Cabrillo Bridge, San Diego, CA, USA
Lighting Design: Illumination Arts
38
Cincinnatti City Hall, Cincinnatti, OH, USA
Lighting Design: Eco Engineering
39
Délices Érable et Cie, Montréal, QC, Canada
Lighting Design: Provencher Roy
40
Meubelplein Ekkersrijt, Eindhoven, Netherlands
Lighting Design: Industrielicht
41
La Presse, Montreal, QC, Canada
Lighting Design:
42
Lolë, Montreal, QC, Canada
Lighting Design: Aedifica
43
Pont Lafayette, Lyon, France
45
Retailers Next, Rugby, Warwickshire, UK
US National Archives, Washington, DC, United States
Lighting Design: Available Light
46
47
RJ Corman Bridge, Clarksville, Tennessee, United States
Lighting Design: Tennessee Lighting Sales
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 2016. 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 2016.
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 2016.
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.