Acuity Inc. · NYSE:AYI
Acuity — Acuity Brands — Merrill Lynch Growth Industrials Conference 2007
28 slides from Acuity's conference presentation, Dec 13, 2007
Slide 1: Merrill Lynch Growth Industrials Conference
Merrill Lynch Growth Industrials Conference December 13, 2007 Vernon J. Nagel Acuity Brands, Inc. Chairman, President, and CEO Exhibit 99.1
Slide 2: Topics
Topics • 2007 Achievements • Company Overview • Market Overview • Profitable Growth Strategy
Slide 3: Key Achievements
• Strategic clarity • Operational improvements • Record financial results Key Achievements
Slide 4: Strategic Clarity
ABL 78% Strategic Clarity ASP 22% FY 2007 Net Sales $2.53 Billion Markets Products Customers Sales Model Construction Fixtures Contractors, Specifiers, Distributors Agents, Direct Cleaning Chemicals End-Users Direct ABL ASP
Slide 5: Strategic Clarity
Strategic Clarity • October 31, 2007 • Tax-free • Zep Inc. • NYSE: ZEP • $62.5M cash dividend • Different industry dynamics • Greater focus Strategic Tactical • Pursue separate strategies • Better alignment of associates and shareholders • Transparency to investors Spin-off Reason
Slide 6: Operational Improvements
Operational Improvements • Products and services • Pricing • Productivity • Access to market
Slide 7: Consolidated Results
Consolidated Results Net sales Operating profit % EPS Free cash flow Dividend Debt, net of cash Return on equity $2.53B 10.2% $3.37 $204M $26M $149M 24% $2.39B 8.2% $2.34 $127M $27M $283M 20% 6% 200bps 44% 61% (4%) (47%) 400bps Free cash flow is defined as cash provided by operations less capital ex
Slide 8: Net Sales, Operating Profit and Diluted EPS Historical Proformas
11.3% Margin +6.7% +67% Diluted EPS Net Sales Operating Profit & Margins Historical Proformas ($Millions, except Diluted EPS) $1,638 $1,841 $1,965 '05 '06 '07 $67 $152 $222 '05 '06 '07 $0.55 $1.75 $2.93 '05 '06 '07 Note: Historical Proformas exclude operating results from specialty chemicals busines
Slide 9: Proformas
Proformas (a) Assume Zep distribution dividend used to finance Q1 share repurchases. (b) Corporate expense consists primarily of public company expense and LTIP. FY 2008 forecasted Corporate expense by quarter: Q1 - $8M; Q2 - $7M; Q3 - $6M; Q4 - $5M. Cash Total Assets Debt Equity Diluted shares O/S
Slide 10: Company Overview
Company Overview • Acuity Brands - holding company • Operating subsidiary - ABL • NYSE: AYI
Slide 11: Lighting
Lighting Bs <<AcuityBrands.
Slide 12: ABL Profile
ABL Profile Agencies: Customers: Products: Associates: Market Share*: $1.96B $251M 12.8% Net Sales: Operating Profit: OP Margin: Mfg Facilities: 160+ 5,000 500,000 Active Products 2,000 Product Groups 7,000 17% (#1 Rank) $1.64B $95M 5.8% Note: 2005 operating profit includes $15.7 million restructuri
Slide 13: Indoor Products
13 Indoor Products Fluorescent Downlighting Track Lighting Emergency H.I.D. Rough Service Flexible Wiring Controls Retrofit
Slide 14: Outdoor Products
14 Area & Parking Roadway & Street Flood Lighting Security Sports High-Mast Building Mounted Poles & Post In-grade Underwater Accent & Border Controls Outdoor Products
Slide 15: Market Overview
• Size • Trends • Outlook Market Overview
Slide 16: N.A. Market Overview
$1.3 $2.5 $6.9 $0.6 Lighting Showrooms Utilities Direct/Nat'l Accts Electrical Wholesalers Other $0.2 Home centers Source: Company Estimates – $2.4 $1.6 $0.9 $1.9 Product Segments $1.7 $0.5 Channels ($ billions) N.A. Market Overview $10.6 Billion $0.7 Residential Industrial Emergency, Controls and M
Slide 17: Market Overview
Market Overview U.S. National Office Vacancy Rates 0% 4% 8% 12% 16% 20% Q1-99 Q1-00 Q1-01 Q1-02 Q1-03 Q1-04 Q1-05 Q1-06 Q1-07 Downtown Suburban Source: CB Richard Ellis • Positive AIA Billings Index • Stable office vacancy rates • Solid leasing/rental income fundamentals for commercial real estate •
Slide 18: Market Overview
Market Overview Residential Non-Residential U.S. Private Construction Index Through October 2007 (Inflation Adjusted)
Slide 19: N.A. Market Overview
N.A. Market Overview Source: Company Estimates Non-Residential Lighting Market Growth Trends (Real Growth) 3.9% 7.9% -4.3% -3.6% -1.2% -1.0% 2.7% 0.5% 3.6% 4.8% 3.3% -2.4% FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
Slide 20: N.A. Outlook
N.A. Outlook ’08-’12 Est. Annualized Growth Rate* Industrial $1.3B Outdoor $2.5B C&I $4.9B +3.2% +2.4% +2.7% CY07 Market Size Application Office, Retail Education, Hospital Streets, Highways, Parking Lots Manufacturing, Warehouses ABL holds the #1 position in each of the product markets in the U.S.
Slide 21: Profitable Growth Strategy
Profitable Growth Strategy
Slide 22: Profitable Growth Strategy
Profitable Growth Strategy Market leader of lighting and lighting related products and services delivering consistent upper-quartile performance Vision
Slide 23: Profitable Growth Strategy
Profitable Growth Strategy Grow Market Share Operating Excellence “3 C’s” Organic Growth Strategic Opportunities
Slide 24: Profitable Growth Strategy
Profitable Growth Strategy Operational excellence • Lean tools • 3 C’s Customer satisfaction Globally competitive Cost structure Culture of continuous improvement • Product innovation • Superior customer service • Expand market presence NYC office Sales force/marketing expansion • Acquisitions/allia
Slide 25: Profitable Growth Strategy
Profitable Growth Strategy • Margins • EPS Growth • ROE • Cash Flow >10% 15%+ 20%+ Exceed net income “Consistent Upper-Quartile Performance” Financial Goals
Slide 26: Investment Considerations
Investment Considerations • Market leader • Superior customer value proposition • Strong operational focus • Growth-oriented organization Conclusion Compelling long-term investment
Slide 27: Forward-Looking Statement
Forward-Looking Statement This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Statements made herein that may be considered forward-looking include statements incorporating terms such as "expects," "believes," "intends,"
Slide 28: Acuity Brands
“AcuityBrands. HYORGL) <a e iN Optics" LIGHTING CONTROLS
Acuity Brands — Merrill Lynch Growth Industrials Conference 2007 on 6ix