Lsi Industries Inc. · NASDAQ:LYTS
Lsi Industries — Investor Presentation (September 2020)
24 slides from Lsi Industries's investor presentation, Sep 14, 2020
Slide 1: LSI Industries Investor Presentation
. LSI INDUSTRIES INVESTOR PRESENTATION Cincinnati, OH = : | ee ee - i H.C.WAINWRIGHT&CO. al ad eerie itd
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Statements and Non-GAAP Financial Measures This presentation includes “Torward looking statements" within the meaning of the federal securities laws, which involve risks and uncertainties. Fonvard looking staterneats include al statements that do not relate solely to histo
Slide 3: Company Overview
@ COMPANY OVERVIEW Introduction to LSI Industries
Slide 4: LSI is Positioned for Profitable Growth
INTRODUCTION & LSI is Positioned for Profitable Growth * Integrated Lighting/Graphics Solutions Company with Adjacent Growth Opportunities in Services Businesses * Strong Foundation With Entrenched Position in Target Vertical Market Applications; Selectively Expanding; Where We Focus, We Win + Turnk
Slide 5: LSI Profile
LSI PROFILE American-Made Lighting and Graphics Solutions Sales Working Capital Debt EPS Market Cap ©2020 LS1 NDUSTE Adj. EBITDA Free Cash Flow $305M $15M / 4.9% $47.1M 70 evenue mio the che month ended ne 1, 3020, 1976 Cincinnati, OH LYTS 1,100 Year Founded Headau: NASDAQ Employees #of L Qo: @ 95%
Slide 6: Why LSI Wins in Our Focus Markets
WHY LSI WINS IN OUR FOCUS MARKETS & How We Differentiate + Conglomerates + Standard / High Volume + “Telephone Book" Portfolio. + Convert Focused Specialist to Standard Volume + Little Unique Differentiation + Pricing is Main Decision Factor + Built on Scale / Low Cost Provider @ Vertical / Applicat
Slide 7: Vertical Market Focus
VERTICAL MARKET FOCUS st Customize Solutions Serving High-Value Applications ) Vertical Markets Automotive Sports Complex Warehouse ighting Solu as Co 2020 (St NOUSTRIES
Slide 8: Vertical Market Focus: Paths to Market
VERTICAL MARKET FOCUS & Paths to Market Stock and Flow | Direct ecifications, Architects, Other Projects Lighting Solutions caper saan 2020 LSt NDUSTRIES Local Distributor Stock Availability
Slide 9: Strong Customer Engagement
STRONG CUSTOMER ENGAGEMENT & Target Verticals with End-User Specific Lighting & Graphics Applications Leading Partners = Our solutions 3@F @ &% GB om ax Enhance the = Value Proposition er] 7A Ga arcoo W of our Customers Customers Contracts Range from 100's to 1,000's of Locations
Slide 10: Growing Our Commercial Business
GROWING OUR COMMERCIAL BUSINESS Awarded $100 Million Quick-Service Restaurant Program in April 2020 Integration Providing a Custom Solution, Not a Discrete Product INDUSTRIES @ $100 Million, Three-Year Award Through Calendar Year-End 2022 Installing LS! Digital Menu Boards at More than 6,000 Locatio
Slide 11: Business Transformation
BUSINESS TRANSFORMATION & During the Last 18-months, Built a Foundation for Sustainable Growth The Opportunity Lack Of Commercial Focus — Strategic Drift Focused on the Sale Of Discrete Projects, Not Solutions + Lack of a Market-Driven Product/Solution Roadmap; Slow New Product Development Process U
Slide 12: COVID-19 Business Response
COVID-19 BUSINESS RESPONSE Maintaining Safe, Reliable Operations, While Reducing Operating Costs EMPLOYEE SAFETY COST REDUCTIONS BUSINESS CONTINUITY OUR MARKET RESPONSE + LSl Operates asa Supplierto + Reduced Total SGEA by Nearly Customers Operating in 20% in F4020, When Critical infrastructure Comp
Slide 13: Consolidated Performance Indicators
CONSOLIDATED PERFORMANCE INDICATORS Improved Sales Mix and Cost Reduction Contributed to Improved Profitability Improved Earnings, EPS, Cash Generation: Margin Rate Expansion; Lower Operating Costs O rc onerey Spit Away From Low Margin Commodity Basinessto Higher Value Applications + Pandemic Relate
Slide 14: Disciplined Balance Sheet Management
DISCIPLINED BALANCE SHEET MANAGEMENT & Growth in Free Cash Flow Supports Reduction in Net Debt Net Debt Outstanding ($M) Net Debt /TTM Adjusted EBITDA seiaeo Det Outstanding Orme = Basis; NoLT Debt 27x Outstanding wx e stronger Balance Sheet $216 { and Enhanced Liqusity Provides Flexibility to | Acc
Slide 15: The Path Forward
@ THE PATH FORWARD Bridging to 2025
Slide 16: The Path Forward
THE PATH FORWARD & Targeting $500 Million of Revenue & Double-Digit EBITDA in Fiscal 2025 EXPAND CHANGE Vertical Focus on Bolt-On Acquisitions that Expand our Vertical Presence, Either in New or Existing Segments Shift from “Client Support” Model to a Scalable End-to-End Service Model Provide Differ
Slide 17: Expand Our Vertical Focus
a EXPAND OUR VERTICAL FOCUS + Increase SOW and SAM with Current Customers Vertical Markets & Warehouse Senet EXPAND darket Cust Base by Building to New Customers within a Upon ent Relationships Vertical and Vertical Knowledge } = =P 2020 (St NOUSTRIES a
Slide 18: Expand Our Vertical Focus: New Verticals
a EXPAND OUR VERTICAL FOCUS + Growth in New Verticals Vertical Markets Warehouse 1 125 damal
Slide 19: Change Our Customer Engagement
CHANGE OUR CUSTOMER ENGAGEMENT & Migrating Closer Toward The Customer Engage Beyond The Agent Grow Direct ‘Customer Relationships Build Knowledge Base Around ‘Customer Requirements Leverage Design & ‘Manufacturing Expertise 2020 (St NOUSTRIES Go-Forward End-User Focus There is Value in Having Both A
Slide 20: Build a Services Business
m= BUILD A SERVICES BUSINESS Provide a Differentiated Customer Value Proposition Margin Shift to Higher Professional Services Profile Unique Advantage Over Industry Competitors Market Opportunity to Expanded Customer Base to Non-Traditional Segments Service Business Scalable via Partnerships 2020 (S
Slide 21: Grow Through Acquisition
GROW THROUGH ACQUISITION Focused on Complementary and Adjacent Spaces + VerticalEnhancement + Geography TARGETS + Vertical Expansion + Adjacent Space + Strong Vertical Position + Complementary to Core + Market Insulation : ATTRIBUTES Expanded Capabilities Broadens Services Focused Specialist . Organ
Slide 22: Projected Financials
PROJECTED FINANCIALS $500M Sales and Double-Digit EBITDA in 2025 @ econ: Combination of Organic ‘and Inorganic Initiatives Projected Adj. EBITDA ($M) ra0% $500 of $425 70% EBITDA Increase Driven ‘$305 by Continued — 220, improvement to Gross Margin Rates for Existing Business, Combined with $15 Leve
Slide 23: Investment Summary
INVESTMENT SUMMARY & American-Made Company Positioned for Profitable Growth EXPAND Ourv + Integrated Lighting / Graphics Solutions Company with Adjacent Growth Opportunities in Services Businesses + Strong Foundation With Entrenched Position in Target Vertical Market Applications; Selectively Expand
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