Lsi Industries Inc. · NASDAQ:LYTS
Lsi Industries — Investor Presentation (September 2022)
33 slides from Lsi Industries's investor presentation, Sep 9, 2022
Slide 1: Investor Presentation September 2022
NASDAQ: LYTS INVESTOR PRESENTATION SEPTEMBER 2022
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER Forward-Looking Statements ‘This presentation contains “forward-looking statements’—that is, statements related to future events within the meaning of the Private Securities Litigation Reform Act of 1995, The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forw
Slide 3: Company Overview
COMPANY OVERVIEW Leading Integrated Lighting and Display Solutions Company Our Transformation + Leading vertically integrated commercial indoor/outdoor lighting ‘and display solutions company ~ strong foundation with entrenched position in growing vertical markets + Commenced successful business tra
Slide 4: Market Driven Portfolio Serving High-Value Applications
alec ae QUARIASU adenee rving High-Value Applica ys) Automotive Refueling & C-Store Retail 8 Grocery Sports Complex Warehouse NS teat Market Driven Portfolio ighting Slaton Disteysoutons Psevees | Bi . Prince Graphics 5 tural Graphics + Facades and Cladding + Digital Signage Systems ting ion /Instal
Slide 5: Uniquely Positioned in Target Markets
UNIQUELY POSITIONED IN TARGET MARKETS & Our Integrated Solution Includes Design, Production and Installation ‘Our Competition -— Market Generalists | Our Approach - Area and Sector Specialization Vs) H + Conglomerates + Standard/High Volume + “Telephone Book" Portfolio + Convert Focused Specialist t
Slide 6: Strong Customer Engagement
STRONG CUSTOMER ENGAGEMENT & Target Verticals with End-User Specific Lighting & Display Solutions Strong Value Proposition We Serve Leading Global Brands + We provide integrated lighting and display solutions to a growing (xia) bp Ceestonsseuesconeme — EB) DM GG scores wy GomdD) base of ong tenuredc
Slide 7: Sustained Multi-Year Growth
SUSTAINED MULTI-YEAR GROWTH & Strong Track Record of Operational and Financial Execution Leiter Bape Drought Total Net Sales Total Adjusted Operating Income + Focused growth in higher margin targeted vertical improved operational execution and disciplined capital deployment + vested in commercial an
Slide 8: Sustained Multi-Year Growth
SUSTAINED MULTI-YEAR GROWTH & Strong Track Record of Operational and Financial Execution Leiter Bape Drought isplay Solutions Segment Sales Lighting Segment Sales + Within Display Solutions segment, within QSR, grocery and e-store vertical riving revenue growth = Within the Lighting segment, exited
Slide 9: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Balanced Approach for Driving Shareholder Value 1 Organic and Inorganic Growth + Organic- Invest in New Product Development/ Innovation, Sales / Marketing Capabilities, Strategic Inventory Investments ‘to Support Market Share Gains + Inorganic- Pursue ‘Complementarily,
Slide 10: The Path Forward: Bridging to 2025
THE PATH FORWARD Bridging to 2025
Slide 11: Environmental, Social & Governance
ENVIRONMENTAL, SOCIAL & GOVERNANCE B, Deep Commitment to ESG Environmental Factors LSI takes its commitment to the environment very seriously. As demand for electricity continues to increase, our customers and their communities look tous to provide product solutions that help reduce energy consumpti
Slide 12: The Path Forward
THE PATH FORWARD Building a Platform of Scale within Higher-Margin Growth Verticals Provide Differentiated Value through Direct Engagement of Both Existing Verticals and New Vertical Segments t <-> 4 62022151 INDUSTRIES CHANGE Our Customer En Transition to High- Value Channel Engagements that Focus
Slide 13: Expand Our Vertical Focus
Jt. EXPAND OUR VERTICAL FOCUS 1 Increase SOW and SAM with Current Customers ‘Automotive Petroleum 4 EXPAND Increase Addressable Market LSI Value Proposition <«- > B
Slide 14: Convenience Store
Bases & CONVENIENCE STORE Le th D 4 Li ‘COLUMN WRAP” 3D FORMED METAL DISPENSER GRAPHICS: ‘GRAPHICS. VALENCE GRAPHICS BRANDED OVERLAYS REGULATORY DECALS 4
Slide 15: Grocery
GROCERY with Display § DIMENSIONAL SIGNAGE &GRAPHICS SS CORATIVE LIGHTING. FRESH REFRIGERATION. FIXTURES SIGNAGE 8: GRAPHICS
Slide 16: Automotive
AUTOMOTIVE HIGH BAY LIGHTING By OUTDOOR VEHICLE P- DELIVERY FIXTURI ARCHITECTURAL TROFFERLIGHTING SGRABHIC 8 DIGITAL SIGNAGE
Slide 17: Quick Serve Restaurants (QSR)
QUICK SERVE RESTAURANTS (QSR) Lead with Digital Menu Boards and Lighting AREA LIGHTS / POLES [WALL MOUNTED & ea A sbycrat Lo FACADE FIXTURES } eM
Slide 18: Change Our Customer Engagement
CHANGE OUR CUSTOMER ENGAGEMENT & Migrating Closer Toward the Customer Engage Beyond The Agent Grow Direct ‘Customer Relationships Knowledge Base Around ‘Customer Requirements Leverage Design (4) & Manufacturing Expertise 62022151 INDUSTRIES Go-Forward End-User Focus Thereis Value in Having Both Agen
Slide 19: Build a Services Business
== ~=BUILD A SERVICES BUSINESS & Addresses Customer Pain Point SCALABLE + Provide a Differentiated ‘Customer Value SERVICE MODEL Proposition + Margin Shift to Higher FUTURE EXPANSION Professional Services + Turnkey Installations Profile + Maintenance Contracts, SERVICE BUSINESS + ESCO Services + Uni
Slide 20: Grow Through Acquisition
GROW THROUGH ACQUISITION Focused on Complementary and Adjacent Spaces TARGETS ATTRIBUTES Criteria * VerticalEnhancement + Geography + Vertical Expansion + Strong Vertical Position + Market Insulation + Focused Specialist Organizational Cultural Synergy Opportunity + Adjacent Space + Complementary to
Slide 21: JSI Store Fixtures
JSI STORE FIXTURES JSI is a Leading Provider of Retail Display Solutions to Grocery & C-Store Verticals Established Market Leader + Milo, Maine corporate headquarters + Soyears of industry experience + 4 Facilities throughout North America Attractive Market Fundamentals. + 255,000 SF of manufacturin
Slide 22: Established, Multi-Channel Product Portfolio
ESTABLISHED, MULTI-CHANNEL PRODUCT PORTFOLIO JSI's Innovative Products Maintain Freshness, Promote Food Safety, Drive Traffic Diversified Based of Large, Long-Tenured National Customer Accounts + 3Siceres ofthe top 20pure-ley NA grocers Ce. GA BR WRger wien obey” wa + Average customer tenure is 18 y
Slide 23: Investment Thesis
INVESTMENT THESIS Positioned to Scale Lighting and Display Solutions in Higher-Margin Adjacencies Driving ProfitableGrowth ‘Strong Growth Across Key Metrics. F4Q22 sales +31% yly and +16% sequentially (rom F3Q22); Adjusted Operating Income +75% yly to$81 million; Adjusted EBITDA +56% yly to $106 mil
Slide 24: Projected Financials
PROJECTED FINANCIALS & $500M Sales and Double-Digit EBITDA Margin in 2025 Leiter Bape Drought + Given strong FY22 results, LSI remainson track to meet or exceed FY25 guidance of $500 million in sales, $50, ; milion of Adjusted , ca = EBITDA and 10% EBITDA nat) $50 20% margins Consolidated Adjusted E
Slide 25: Appendix
APPENDIX
Slide 26: Statement on Non-GAAP Financial Measures
STATEMENT ON NON-GAAP FINANCIAL MEASURES ‘This presentation includes adjustments to GAAP operating income, net income and earnings per share for the twelve months ended June 30, 2022 and 2021. Operating income, net income and earnings per share, which exclude the impact of stock compensation expense
Slide 27: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Allocating Free Cash Flow Toward Debt Reduction, Return of Capital Initiatives + Generated free cash flow of $80 millionin QaFY22,, versus $2.7 million in the PY period + Positive cash flow in second halfof fiscal 2022, following ~$20 million inventory, investment in fi
Slide 28: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION & sindusies fos20m _q22022_g32m2 01202 ugnng segment umn q2m qm? au Nese Teel ses MONT AS Nees) So Te Se AE Oneergircone aoe aaa Sel TAS Opnagtncne 3p aes ass Fama Tessin Sateen come a te Sock coreerestonespae as 2 ant Aes ming come ae ae ne ‘Asta Open omeB) Zsl_Sw2 5567 E119
Slide 29: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION {tinder te ch Net oebt Outstanding st industies Net cashflows (ued in) provided operating acts Purchases of property sare ard equomert Proceeds tromsalecf sets Free Cath How “Ti Free Cash Flow Free Cash How, Excluding Asset Sales Tit ee Cosh Flow, Excluding Set Sales 62022151
Slide 30: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION 62022151 INDUSTRIES a Shas esr LiphtngSepment Netsuesis) ross Margin Severance costs restruauringandplant clone costs (es) ‘Adjustee Gross ain (2), ‘Adjusted Gross Marin 1 /(0) isola Solation Segment Nets el roe agin estraturng andpint clone cos (ee) ‘Adjusted Gross ein, ‘Adj
Slide 31: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Spentiname: Reported ric covs dence Aeasmoncons pentgincame: Adina 62022151 INDUSTRIES Craver) aoe esta eng Segment ‘Opeaingincme-Repores equation oss ‘Operating nome Basted ‘spy Sotions ezment ‘Operating income Aajses corporate Segment ‘Operating income Report Sevemnceconson
Slide 32: Non-GAAP Reconciliation
Non-GAAP RECONCILIATION Tams on = Tas oa 62022151 INDUSTRIES
Slide 33: For Additional Questions, Please Contact
For Additional Questions, Please Contact 720.778.2415 Thank You, LSI Investor Relations
LSI Industries — Investor Presentation (September 2022) on 6ix