Slide 1: Fiscal Third Quarter FY2023 Results
FISCAL THIRD QUARTER FY2023 RESULTS June 29, 2023
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation and related conference call and webcast include “forward-looking Forward-looking statements are not guarantees of future performance. Our forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as statements are based
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES We disclose the following non-generally accepted accounting principles ("GAAP") financial amortization of acquired intangible assets, acquisition-related items, share-based payment expense, measures: “adjusted operating profit” and “adjusted operating profit margin” for t
Slide 4: Fiscal 2023 Third Quarter Performance
FISCAL 2023 THIRD QUARTER PERFORMANCE ($ in Millions Except Per Share Data) Net Sales Adj. Operating Profit 1 Year-over-year and Sequential Adjusted (6%) Flat Operating Margin Improvement Despite $1,061 $1,000 a Decline in Net Sales $163 $163 Q3'22 Q3'23 Q3'22 Q3'23 Adjusted Diluted EPS Expansion Ad
Slide 5: Fiscal 2023 Third Quarter Segment Performance
FISCAL 2023 THIRD QUARTER SEGMENT PERFORMANCE Lighting and Lighting Controls (ABL) Intelligent Spaces Group (ISG) Providing sustainable, inspiring, and Using technology to make spaces smarter, intelligent lighting solutions that enrich the safer, and greener. communities where people live, learn, wo
Slide 6: 2023 Year to Date Capital Allocation
2023 YEAR TO DATE CAPITAL ALLOCATION $472M Capital Allocation Priorities Operating Cash Flow 1. Growth in Current Businesses 2. Acquisitions $48M 3. Maintain Dividend CapEx 4. Share Repurchases $219M Share Repurchases NYSE: AYI 6
Slide 7: Fiscal 2023 Outlook as of June 29, 2023
FISCAL 2023 OUTLOOK AS OF JUNE 29, 2023 Fiscal 2023 Guidance1 AYI Net Sales Range $3.9B to $4.0B Adjusted Diluted EPS $13.00 to $14.50 1 Management estimates are based on multiple quantitative and qualitative inputs Note: Contains forward-looking information; please see Forward Looking Statements on
Slide 8: Fiscal 2023 Third Quarter in Summary
FISCAL 2023 THIRD QUARTER IN SUMMARY Year-over-year and Sequential Adjusted Operating Margin Improvement Adjusted Diluted EPS Expansion Strong Cash Flow Generation and Effective Capital Allocation NYSE: AYI 8
Slide 9: Appendix and Non-GAAP Reconciliations
and Non-GAAP Reconciliations NYSE: AYI 9
Slide 10: AYI: Quarterly Trends
AYI: QUARTERLY TRENDS Net Sales ($ in Millions, Except Per Share Data) $1,110 $1,061 $993 $998 $1,000 $926 $944 $909 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Net Sales Growth 11.4% 16.9% 17.1% 17.9% 11.8% 7.8% 3.8% (5.7%) Gross Profit Margin 42.2% 41.7% 41.7% 42.0% 41.7% 41.7% 43.1% 44.7% Ope
Slide 11: ABL: Quarterly Trends
ABL: QUARTERLY TRENDS Net Sales ($ in Millions) $1,055 $1,008 $947 $947 $941 $884 $891 $863 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1'23 Q2'23 Q3’23 Net Sales Growth 11.0% 17.3% 17.1% 18.6% 11.4% 7.2% 3.2% (6.7%) Operating Margin 15.8% 14.5% 13.5% 14.8% 14.4% 12.5% 13.9% 15.9% Adjusted Operating Margin1 16.8
Slide 12: ISG: Quarterly Trends
ISG: QUARTERLY TRENDS Net Sales ($ in Millions) $61 $66 $58 $57 $58 $51 $46 $50 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1'23 Q2'23 Q3’23 Net Sales Growth 23.5% 13.7% 15.5% 5.2% 21.6% 22.4% 16.4% 12.9% Operating Margin 4.0% 4.3% 2.4% 15.8% 16.8% 13.6% 10.8% 13.1% Adjusted Operating Margin1 11.9% 13.1% 11.2% 2
Slide 13: AYI Quarterly Reconciliation of Non-GAAP Measures: Adjusted Operating Profit
AYI QUARTERLY RECONCILIATION OF NON-GAAP MEASURES: Adjusted Operating Profit and Adjusted Profit Margin ($ in Millions) Fourth Quarter First Quarter Second Quarter Third Quarter 2022 2021 2023 2022 2023 2022 2023 2022 Operating Profit (GAAP) $149.6 $132.8 $108.9 $115.1 $111.5 $102.3 $143.3 $142.7 Op
Slide 14: AYI Quarterly Reconciliation: Adjusted Net Income and Adjusted EPS
AYI QUARTERLY RECONCILIATION OF NON-GAAP MEASURES: Adjusted Net Income and Adjusted Earnings Per Share ($ in Millions Except Per Share Data) Fourth Quarter First Quarter Second Quarter Third Quarter 2022 2021 2023 2022 2023 2022 2023 2022 Net Income (GAAP) $115.4 $98.1 $74.9 $87.6 $83.2 $75.3 $105.0
Slide 15: AYI Quarterly Reconciliation: EBITDA and Adjusted EBITDA
AYI QUARTERLY RECONCILIATION OF NON-GAAP MEASURES: EBITDA and Adjusted EBITDA ($ in Millions) Fourth Quarter First Quarter Second Quarter Third Quarter 2022 2021 2023 2022 2023 2022 2023 2022 Net Income (GAAP) $115.4 $98.1 $74.9 $87.6 $83.2 $75.3 $105.0 $105.7 + Interest expense, net 6.8 5.5 6.6 5.9
Slide 16: ABL Quarterly Reconciliation of Non-GAAP Measures
ABL QUARTERLY RECONCILIATION OF NON-GAAP MEASURES: Segment Breakdown (ABL) ($ in Millions) Fourth Quarter First Quarter Second Quarter Third Quarter 2022 2021 2023 2022 2023 2022 2023 2022 Operating Profit (GAAP) $151.4 $149.3 $118.1 $128.1 $123.6 $116.5 $150.0 $149.6 Operating Profit (GAAP) Margin
Slide 17: ISG Quarterly Reconciliation of Non-GAAP Measures
ISG QUARTERLY RECONCILIATION OF NON-GAAP MEASURES: Segment Breakdown (ISG) ($ in Millions) Fourth Quarter First Quarter Second Quarter Third Quarter 2022 2021 2023 2022 2023 2022 2023 2022 Operating Profit (GAAP) $10.3 $2.0 $7.7 $2.0 $6.3 $1.2 $8.6 $9.2 Operating Profit (GAAP) Margin 16.8% 4.0% 13.6