Energy Focus, Inc. · NASDAQ:EFOI
Energy Focus — Investor Presentation (April 2021)
39 slides from Energy Focus's investor presentation, April 2021
Slide 1: Energy Focus, Inc. Investor Presentation
Energy Focus, Inc. Investor Presentation April 2021 © Energy Focus, Inc.
Slide 2: Forward Looking Statement
Forward Looking Statement Forward-looking statements in this presentation are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “
Slide 3: Company Snapshot
Company Snapshot Innovator of LED lighting technologies and solutions: - With a proven track record for superior quality and innovation in LED since 2004 - Delivering substantial “triple-bottom-line” (financial, environmental and human health) impacts (”total sustainability”) - Marquee enterprise cu
Slide 4: Recent Quarterly Financial Overview
Recent Quarterly Financial Overview $ in millions Improving financial performance driven by relaunch initiatives since Q2 2019 Net Sales Operating Expenses $6.0 3 2.5 $3.5 $3.8 $3.3 $3.7 $3.1 $2.9 2 1.5 $2.1 $2.3 $2.3 $2.4 $2.3 1 $2.0 $1.9 0.5 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Slide 5: Distinguished History of Disruptive Technology Innovations
Distinguished History of Disruptive Technology Innovations © Energy Focus, Inc. P5
Slide 6: Current Commercial & Industrial Products—Covering 80%+ Indoor Lighting Needs
Current Commercial & Industrial Products— Covering 80%+ Indoor Lighting Needs for C&I Buildings • Energy Services: • EnFocusTM Control o Proven high-quality Platform: LEDs with numerous o Breakthrough case studies Circadian Lighting o Government incentives capability to expand dramatically o Most af
Slide 7: Proven Quality Leadership & Mission-Critical Installations
Proven Quality Leadership & Mission-Critical Installations Education Healthcare U.S. Navy Quality of lighting and flicker free Environmental sustainability, Energy and maintenance savings, environment is important to quality of lighting, flicker free and improved quality of lighting for schools for
Slide 8: Global C&I LED Lighting Market TAM from 2017-2026
Global C&I LED Lighting Market TAM from 2017-2026 $ in Billions *Source: “Market data: LED Global Outlook”, Q3 2019, Navigant Research; “Global LED and Smart Streetlight: Market Forecast 2017-2027”, November 2017, Research & Markets. © Energy Focus, Inc. P8
Slide 9: Adoption of TLEDs Just Exceeded 20% and Accelerating
Adoption of TLEDs Just Exceeded 20% and Accelerating © Energy Focus, Inc. P9
Slide 10: LED Lighting: Going Beyond Energy Efficiency to HCL & IoT
LED Lighting: Going Beyond Energy Efficiency to HCL & IoT Transforming LED from an “Energy Efficiency” Story to Total Sustainability LED Lighting Human Centric Lighting • Flicker-Free (HCL) • Mostly 10-Year Warranty • Color Temperature Tuning • “Military-Tough” with best • Circadian Rhythm industry
Slide 11: Human Centric Lighting (HCL) To Dramatically Penetrate and Broaden Global Lighting Markets
Human Centric Lighting (HCL) To Dramatically Penetrate and Broaden Global Lighting Markets Human Digital HCL LED 2020 Fluorescent 1995 1940 Analog Incandescent 1880 © Energy Focus, Inc. P11
Slide 12: EnFocus™: Enabling Buildings to Provide Sustainable & Affordable HCL
EnFocus™: Enabling Buildings to Provide Sustainable & Affordable HCL P12 7/ 24/ 2020 © Energy Focus, Inc. P12
Slide 13: Context of Human-Centric Lighting
Context of Human-Centric Lighting On average, people spend ~90% of the time indoors. Effective design, construction, and maintenance of buildings can have a big impact on quality of life (and health, productivity, absenteeism, recruitment, retention, and profitability) © Energy Focus, Inc. P13
Slide 14: Dimming and Color Tuning For Optimal Circadian Wellness
Dimming and Color Tuning For Optimal Circadian Wellness © Energy Focus, Inc. P14
Slide 15: Circadian Lighting Influencers
Circadian Lighting Influencers You can, for example, make your lights bluer and brighter in the morning to promote alertness and assist in waking up, and then set your lights to be redder and dimmer as the day progresses to allow melatonin production. © Energy Focus, Inc. P15
Slide 16: Circadian HCL Can Boost Health
Circadian HCL Can Boost Health Sleep: 2/3 of adults fail to obtain the recommended 8 hours of nightly sleep. Insufficient sleep is linked to: Alzheimer’s disease Diabetes Cardiovascular disease Stroke Congestive heart failure All major psychiatric conditions Weight gain Source: Why We Sleep (2017),
Slide 17: Circadian Lighting Significantly Boosts Health of Older Adults
Circadian Lighting Significantly Boosts Health of Older Adults “Since 2010, studies in patients with Alzheimer's disease have demonstrated ‘extreme success’ with circadian lighting in restoring normal sleep patterns”. - Dr. Mariana Figueiro, Lighting Research Center, Rensselaer Institute of Technolo
Slide 18: Circadian Lighting Significantly Boosts Learning Effectiveness
Circadian Lighting Significantly Boosts Learning Effectiveness “Students exposed to lighting with higher light intensity and light temperature levels had, by the end of the year, increases in performance that were 33% higher than the increases in performance of the control group.” - Human Centric Li
Slide 19: Circadian Lighting Significantly Boosts Worker Productivity
Circadian Lighting Significantly Boosts - Worker Productivity “Occupancy study shows that productivity was boosted by up to 20%. Additionally, employees were 38% calmer, and 10% more focused than their colleagues in the rest of the office.” - Dr. Marcella Ucci, head of the MSc in Health, Wellbeing a
Slide 20: Benefits of HCL To Dwarf Energy Efficiency
Benefits of HCL To Dwarf Energy Efficiency: 1% Productivity Gain=100% Total Energy Cost Jones Lang Lasalle’s real estate industry rule of thumb, called the “3-30-300”, states that each year it costs a building… $3/sq.ft. $30/sq.ft. $300/sq.ft. in utilities $30 in rent $300 in payroll https://www.us.
Slide 21: Groundbreaking HCL Control Platform
Groundbreaking HCL Control Platform © Energy Focus, Inc. P21
Slide 22: Bringing HCL To Existing Buildings For the First Time
Bringing HCL To Existing Buildings For the First Time • The most sustainable • Preserving high • Much lower cost and affordable lighting power factor and to install than control solution versus • Simple retrofit low total harmonic other wired or other LED alternatives. • Network safe and installatio
Slide 23: Offering Disruptive HCL Value
Offering Disruptive HCL Value L* switch + integrated E* Control System w/ P*, O* Dali Control color tuning fixture sensors Systems Hardware $225 $700 $1,400 $1,400 Labor (4 fixtures: $60 $150 $150 $150 removal & installation) Labor (1 switch: installation & conduit $15 $150 $150 $300 wiring) Total $
Slide 24: UV-C Disinfection Solutions Market TAM 2019-2027
UV-C Disinfection Solutions Market TAM 2019-2027 Total Market: UV-C Disinfection Solutions Sales 6 5 4 $5.7B 3 $1.3B 2 1 $ in Billions 0 2019 2027 2019 2027 *Source: alliedmarketresearch.com UV-C Disinfection Equipment Market Outlook, December 2020 © Energy Focus, Inc. P24
Slide 25: New Launches (Q2 2021) UV-C Disinfection Solutions – Initial Portfolio
New Launches (Q2 2021) UV-C Disinfection Solutions – Initial Portfolio • Portable UV-C Air • Combined Circadian Lighting + • Autonomous UV-C Surface Disinfection “Tower” UV-C Air Disinfection Troffer Disinfection Robot • Personal Disinfection • UV-C Robot Disinfection “Traveler” Service © Energy Foc
Slide 26: Tower - Virus-Targeted UV-C Air Disinfection for Common Spaces
Tower - Virus-Targeted UV-C Air Disinfection for Common Spaces • Inactivating 99.9%+ coronavirus and influenza • 24-hour continuous disinfection capability • 2 air changes per hour (2 ACH) in a 500 square-foot room (4 fan speed settings to 150 CFM) • Patent-pending design with outside LED-strip (w.
Slide 27: Ideal for Small Offices/Home Offices/Homes
Ideal for Small Offices/Home Offices/Homes © Energy Focus, Inc. P27
Slide 28: Sample Competitive/Value Analysis: nUVo Stands Out for Air Disinfection
Sample Competitive/Value Analysis: nUVo Stands Out for Air Disinfection * Forecasted availability starting Q2/Q3 2021 * Energy Focus nUVo Air Oasis G3 RxAir 400 Molekule Air Price $899 $399 $899.99 $799 Stated Coverage/ACH 500 sq. ft./ 2 ACH 300 sq. ft./ ? ACH 300-800 sq. ft. / 3-6 ACH 600 sq. ft. /
Slide 29: Traveler - Virus-Targeted Personal UV-C Air Disinfection Device
Traveler - Virus-Targeted * Forecasted availability starting Q2/Q3 2021 * Personal UV-C Air Disinfection Device • Inactivates 99.9%+ bacteria , mold and viruses including influenza, coronavirus and its variants • Intercepts potentially infected air in real time • 4 air changes per hour (4 ACH) in a
Slide 30: The Most Affordable and Powerful UV-C Troffer Plus Highest Quality Circadian Lighting
The Most Affordable and Powerful UV-C Troffer Plus Highest Quality Circadian Lighting • Inactivating 99.9%+ coronaviruses and influenzas • 2 air changes per hour (2 ACH) for 100-sq.ft. per 2x4 troffer and 65-sq.ft. for 2x2 • Includes three (3) EnFocus flicker-free, color tuning and dimming TLED lamp
Slide 31: Sample Competitive / Value Analysis: abUV Stands Apart for Air Disinfection
Sample Competitive / Value Analysis: abUV Stands Apart for Air Disinfection Energy Focus abUV Healthe Air VIDASHIELD VS01 UV Angel Clean Air Est. End User Price $449 / $599 $ 2,500 $ 2,000 $ 1,200 Stated Coverage/ACH 900 ft³ / 2 ACH 800 ft³ / 4 ACH 640 ft³ / 4 ACH 800 ft³ / 4 ACH Stated Air Flow 35
Slide 32: Most Affordable and Agile UV-C Disinfection Robot in the Market
Most Affordable and Agile UV-C Disinfection Robot in the Market— by a Long Shot! • Forecasted availability – starting Q4 2021 * • Inactivating 99.99%+ coronaviruses and influenzas at a speed of 18 inches/second, or ~15,000 sq. ft. per hour • Additional UV-C lamp on the robot’s base for floor disinfe
Slide 33: Sample Competitive/Value Analysis: mUVe Stands Apart for Surface Disinfection
Sample Competitive/Value Analysis: mUVe Stands Apart for Surface Disinfection UVD Robots - Blue Energy Focus mUVe Xenex Light Strike Smart Guard UV/ Puro Ocean Robotics Price $59,900 ~$ 125,000 ~$ 100,000+ ~$ 75,000+ Autonomy Autonomous Manual Autonomous Autonomous / Manual UV Output/Efficiency UV-C
Slide 34: mUVeCrew UV-C Robot Disinfection SERVICE
mUVeCrew UV-C Robot Disinfection SERVICE • Innovative subscription service model starting at just $150 per hour and further discounted for volume purchasers • Quick, efficient, cost effective and convenient online scheduling and payment delivering 99.9% surface disinfection for businesses during off
Slide 35: Market Dynamics for Energy Focus UVCD Solutions
First-Mover For an Explosive & Permanent New Market Proven Disinfection Technology Rapidly Emerging Needs UV-C Disinfection has been proven to MARKET Demand for UV disinfection equipment during the COVID- inactivate coronavirus 19 pandemic has increased by and influenza and DYNAMICS nearly 1,000% ot
Slide 36: Summary Balance Sheets
Summary Balance Sheets As of As of ($ in thousands) 12/31/2020 12/31/2019 Cash $1,836 $350 Capital Structure Total current assets $11,076 $9,334 (as of December 31, 2020) Total assets $12,397 $11,739 Total current liabilities $7,557 $6,542 Total liabilities $8,142 $7,743 $4,861 Stockholders’ equity
Slide 37: Energy Focus: Key Investment Attributes
Energy Focus: Key Investment Attributes 1 2 3 4 Significant enterprise Proven and vested Proven industry Introduction of LED lighting market executive team leading innovation leader, with breakthrough, EnFocusTM, opportunity with and completing corporate high performance LED the breakthrough lightin
Slide 38: THANK YOU!
THANK YOU! Energy Focus, Inc. James Tu, Chairman and CEO Tod A. Nestor, President and CFO © Energy Focus, Inc.
Slide 39: APPENDIX - Adjusted EBITDA Reconciliation
APPENDIX - Adjusted EBITDA Reconciliation As of As of As of As of As of As of As of ($ in thousands) 06/30/2019 09/30/2019 12/31/2019 03/31/2020 06/30/2020 9/30/2020 12/31/20 Net Loss $ (2,254) $ (946) $ (1,308) $ (541) $ (4,340) $ (1,165) $ 65 Restructuring (recovery)/expense 128 (19) (47) (14) (14