Slide 1: Fiscal 2023 Fourth Quarter and Full Year Results
FISCAL 2023 FOURTH QUARTER AND FULL YEAR RESULTS October 4, 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 and adjusted operating profit margin for total company and by segment are “operating profit” and measures: “adjusted gross profit”, “adjusted gross profit margin”, “adjusted operatin
Slide 4: Fiscal 2023 Fourth Quarter Performance
FISCAL 2023 FOURTH QUARTER PERFORMANCE ($ in Millions Except Per Share Data) Net Sales Adj. Operating Profit 1 (9%) (4%) Demonstrated Excellent Execution $1,110 $1,010 $170 $162 Improved Year-over-Year Adjusted Operating Profit Margin Q4'22 Q4'23 Q4'22 Q4'23 Adj. EBITDA 1 Adj. Diluted EPS 1 Increase
Slide 5: Fiscal 2023 Fourth Quarter Segment Performance
FISCAL 2023 FOURTH 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, w
Slide 6: Fiscal 2023 Full Year Capital Allocation
FISCAL 2023 FULL YEAR CAPITAL ALLOCATION $578M Capital Allocation Priorities Operating Cash Flow 1. Growth in Current Businesses 2. Acquisitions $67M 3. Maintain Dividend CapEx 4. Share Repurchases $269M Share Repurchases NYSE: AYI 6
Slide 7: Fiscal 2023 in Summary
FISCAL 2023 IN SUMMARY ($ in Millions Except Per Share Data) Net Sales Adj. Operating Profit 1 Strong Financial Performance in Fiscal 2023 (1%) 2% Despite a Challenging Sales Environment in $4,006 $3,952 Lighting $588 $597 Continued to Grow and Invest in the Intelligent Spaces Group FY'22 FY'23 FY'2
Slide 8: Fiscal 2024 Outlook
FISCAL 2024 OUTLOOK 2024 Guidance1 AYI Net Sales Range $3.7B to $4.0B ABL Net Sales Down Low to Mid-Single Digits ISG Net Sales Up Mid Teens Adjusted Diluted EPS Range $13.00 to $14.50 Assumptions Net Interest ~$10M - $15M Effective GAAP Tax Rate ~23.5% Amortization of Acquired Intangible Assets ~$4
Slide 9: Appendix and Non-GAAP Reconciliations
and Non-GAAP Reconciliations NYSE: AYI 9
Slide 10: AYI: Quarterly Trends
AYI: QUARTERLY TRENDS Net Sales ($ in Millions, Except Per Share Data) $1,061 $1,110 $998 $1,000 $1,010 $926 $909 $944 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Net Sales Growth 16.9% 17.1% 17.9% 11.8% 7.8% 3.8% (5.7%) (9.0%) Gross Profit Margin 41.7% 41.7% 42.0% 41.7% 41.7% 43.1% 44.7% 43.8%
Slide 11: ABL: Quarterly Trends
ABL: QUARTERLY TRENDS Net Sales ($ in Millions) $1,008 $1,055 $884 $947 $891 $941 $944 $863 Q1’22 Q2’22 Q3’22 Q4’22 Q1'23 Q2'23 Q3’23 Q4’23 Net Sales Growth 17.3% 17.1% 18.6% 11.4% 7.2% 3.2% (6.7%) (10.5%) Operating Profit Margin 14.5% 13.5% 14.8% 14.4% 12.5% 13.9% 15.9% 12.5% Adjusted Operating Pro
Slide 12: ISG: Quarterly Trends
ISG: QUARTERLY TRENDS Net Sales ($ in Millions) $72 $61 $66 $58 $57 $58 $46 $50 Q1’22 Q2’22 Q3’22 Q4’22 Q1'23 Q2'23 Q3’23 Q4’23 Net Sales Growth 13.7% 15.5% 5.2% 21.6% 22.4% 16.4% 12.9% 17.1% Operating Profit Margin 4.3% 2.4% 15.8% 16.8% 13.6% 10.8% 13.1% 13.1% Adjusted Operating Profit Margin1 13.1
Slide 13: AYI Quarterly Reconciliation: Adjusted Gross Profit
AYI QUARTERLY RECONCILIATION OF NON-GAAP MEASURES: Adjusted Gross Profit and Adjusted Gross Profit Margin ($ in Millions) First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Gross Profit (GAAP) $416.5 $385.8 $406.7 $379.3 $447.3 $445.
Slide 14: AYI Quarterly Reconciliation: Adjusted Operating Profit
AYI QUARTERLY RECONCILIATION OF NON-GAAP MEASURES: Adjusted Operating Profit and Adjusted Operating Profit Margin ($ in Millions) First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Operating Profit (GAAP) $108.9 $115.1 $111.5 $102.3
Slide 15: AYI Quarterly Reconciliation: Adjusted Net Income and EPS
AYI QUARTERLY RECONCILIATION OF NON-GAAP MEASURES: Adjusted Net Income and Adjusted Diluted Earnings Per Share ($ in Millions, Except Per Share Data) First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Net Income (GAAP) $74.9 $87.6 $8
Slide 16: AYI Quarterly Reconciliation: EBITDA and Adjusted EBITDA
AYI QUARTERLY RECONCILIATION OF NON-GAAP MEASURES: EBITDA and Adjusted EBITDA ($ in Millions) First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Net Income (GAAP) $74.9 $87.6 $83.2 $75.3 $105.0 $105.7 $82.9 $115.4 $346.0 $384.0 + Int
Slide 17: ABL Quarterly Reconciliation of Non-GAAP Measures
ABL QUARTERLY RECONCILIATION OF NON-GAAP MEASURES: Segment Breakdown (ABL) ($ in Millions) First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Operating Profit (GAAP) $118.1 $128.1 $123.6 $116.5 $150.0 $149.6 $117.8 $151.4 $509.5 $545
Slide 18: ISG Quarterly Reconciliation of Non-GAAP Measures
ISG QUARTERLY RECONCILIATION OF NON-GAAP MEASURES: Segment Breakdown (ISG) ($ in Millions) First Quarter Second Quarter Third Quarter Fourth Quarter Full Year 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Operating Profit (GAAP) $7.7 $2.0 $6.3 $1.2 $8.6 $9.2 $9.4 $10.3 $32.1 $22.7 Operating Prof