Presentation The path of Tridonic 2016

Zumtobel GroupThe Path of Tridonic

Alfred Felder – CEO Tridonic

Capital Markets Day 2016 / March 15, 2016 / Frankfurt am Main

Nr. 2Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main

AGENDA

� Revisiting our promises from the last Capital Market Day

� The next challenge

� The path of Tridonic


AGENDA





Promised in 2014Preparing for transformation towards “Internet of Things” (IoT)

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2

4

Full focus on LED technology for professional light ing

Rigid consolidation of manufacturing footprint

Reaching beyond Home Markets (Europe)

Creating a high performance organisation

3


Successful transition to LED (LED share ca. 70%)Delivered by 2016

1 Focus on LED for professionalLighting

2013• Sale of LED products for

commercial refrigeration• Exit Magnetic business• Sale of LED Lamp business

2014• Sale of connection technology

business• Exit HID (high intensity discharge)2015• Sale of LED signage business

Revenue**-Breakdown: LED / electronic / magnetic / other

* Expected development** Revenues 2014/15: EUR 393.8 million

as % of revenues 2012 2014 2016* 2018*

LED components 14 33 71 90

Electronic conventional products 63 55 29 10

Magnetic 12 8 - -

Others 11 5 - -


Rigid consolidation of manufacturing footprintDelivered by 2016

2 Restructuring measures

2013• Closure of Fürstenfeld, AUT• Sale of Melbourne, AUS

2014• Closure of Ennenda, CH• Sale of connection technology

business, Innsbruck, AUT

2015• Sale of magnetics business,

Auckland, NZL

Between 2014 and 2016 the share of third party manufacturing increased from 17% to 27%.

DornbirnAUT

FürstenfeldAUT

AucklandNZL

ShenzhenCHN

JennersdorfAUT

SpennymoorGB

InnsbruckAUT

EnnendaCH

MelbourneAUS


Geographical expansion into growth markets - focus o n AsiaDelivered by 2016

3

Asian Market: >50% of

professional lightingmarket by 2020

Geographical Expansion

• Full management attention• Dedicated product portfolio to

serve emerging markets • New sales structure

Between 2014 and 2016 the revenue share of Asia increased from 7% to approx. 10%

Revenue-Breakdown: China and MEIAT**

* Expected development** All countries in Middle East, India, Africa

[in EUR Mio] 2013 2014 2015 2016*

China 16 20 27 32

MEIAT 21 22 21 27

TRIDONIC World 379 384 394


High performance organisation: Y -o-Y increase in profitability

4 Increase in profitability is a result of

• Stringent cost control and restructuring

• Phase out of non-core businss and outdated technologies

• Platform approach • Innovative and differentiated product

portfolio (new product ratio > 70%) combined with customer intimacy

In the current financial year the profitability of LED products is higher than for conventional products.

Q1-Q3 2015/16 adjusted EBIT margin 1.7 percentage points above Q1-Q3 prior year.

*) Reported EBIT adjusted for special effects

377,7 (-7.4%) 384,5 (1.8%)393,8 (2.4%)

311,8 (7.9%)

2012/13 2013/14 2014/15 Q1-Q3 2015/16

Net Sales (in EUR million)

EBIT adj. (in % of revenues)*

3.6%

6.5%7.2%

9.1%


AGENDA





Digitalisation – enabling value add for our customer s Lighting Evolution and Market Trends

Time

“Bui

ldin

g B

lock

” V

alue

Today

Innovation:Enabling value add creation (lighting centric & beyond lighting) for our customers

Partitioning:Enabling value add creation or cost down for our customers

Rationalisation:Enabling cost down for our customers

net4more

DLE, SLE

DC string


Many new business opportunites beyond IlluminationLighting Evolution and Market Trends

DALI to IP Gateway

Lighting beyond Illumination

Connected lighting

LED World

• Unique new opportunities for

“out of box” ideas

• A world of software, sensors,

big data, services

• 30 billion connected devices (by 2020)

• Tridonic technology is utilized to provide

more than 40 million light points around

the world every year

connecDIM net4more


AGENDA





The Tridonic PathTaking full advantage of the new opportunities

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2

4

Driving innovation

Dedicated product portfolio for connected lighting

Further geographical expansion of sales footprint

Cost efficient fab-light operations footprint

3


Driving Innovation

Innovation Power

Every year, Tridonic technology is utilized to provide more than 40 million light points around the world.

• More than 830 Tridonic inventions protected by patent families and we own 2850 active patents. (Status 2015)

• 70 % of patents are LED related, 15 % are related to connectivity

Solutions beyond illumination

Our R&D departments around the world continuously devote their time to develop new ideas that go beyond lighting.

• Net4More

• connecDIM

• ready2mains™

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15

25

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15

40

25

20

10

5

Radical shift in technology focus

LED portfolio ramp-up Partitioning & 1 st IP solutions Complete IP based & further integr.

Key Topics

• Electrical Conversion: High Frequency Switching• Communication: IPv6 / COAP / LP Mesh / OTA updates• Sensors: Partitioning/CMOS/Radar• Light Generation: Watch CSP

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30

5

5

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Electrical conversion

Light generation

Communication & Cloud

Sensors & data mgmt

Old technology

Apps & User experience

12012 2016 2020

Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main Nr. 16

INTEGRATED LIGHT ENGINE

DLE Downlight Revolution

Driver on Boardone4all (DALI) / FO / EMY

1.000 / 2.000 / 3.000lm120lm/WRa >80

3.000 / 4.000K

2016 Innovation Highlights1

Driver (DALI, R2M) Modules

OUTDOOR

Highest efficacy up to 161lm/W-40C-105C ta

Salt fog and harmful gas proofLifetime up to 100kh

10kV surge burst protection-40C-70C ta

SELV insulationLifetime up to 100kh

connecDIM

predictive maintenanceenergy performance

multi site cloud monitoringtunable white sequencer

email notificationemergency lighting reporting

CLOUD Feature Expansion

Retail & Hospitality Office & Education

TUNEABLE WHITE

2ch drivers SELV / Non-SELVTW / Up-Down LightCRI90 / 2700-6500K

TW controls and apps

SLE 2ch COBand driver

easy 2 tunespotlight kit


Dedicated product portfolio for connected lightingWhy are we Getting into IP Connected Lighting?

2

Value-add beyond illumination

Problems solved through IP Connectivity

Value-add for other IP connected systems

Partnerships & ecosystem Services beyond illumination

Smooth interoperabilityEasy connectivityFull scalabilityFast commissioning

Infrastructure Data collection

1810/03/2016


What is net4more?

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Fully scalablelighting system

Easy to connectwith other systems, the Internet & smart devices

Future proofEasy updates and extension

of lighting system

net4more will be Tridonic’s IPv6/IoT lighting system, turning any luminaire into an IP device and enable gateway


How does net4more look like?

2 net4more easily bridges between wired and wireless networks, stretching from small to big networks








luxCONTROL lighting management systems

What is net4more composed of? net4more is set up as a modular toolbox of hardware and software blocks to allow easy migration

LED drivers:

LCA 50W 100-400mA lp PRE uniCLCA 75W 100-400mA lp PRE uniCLCA 45W 500-1400mA C PRE uniCLCA 25W 350-1050mA C PRE uniCLMI 48V 350-700mA uniC

Communication modules:

Ethernet-2-uniCPoE-2-uniC (incl. DC supply)Thread-2-uniC (wireless)

Sensors:

MSensor 5DPI ILB built-in MSensor 5DPI PoE independent

Infrastructure:

Border router Ethernet-802.15.48port fanless PoE SwitchPoE light switch modulePoE connector setuniC splitter & uniC cables

Software:

Commissioning app for AndroidControls reference app for Android & iOSDevice management server

2


Dedicated product portfolio for connected lightingWhat can net4more do?

2

• net4more is turning any luminaire into an IP device and enables gateway free communication

• net4more not only allows lighting to interconnect easier with other systems (lighting as backbone), but also enables service beyond lighting

• net4more easily bridges between wired and wireless networks and can stretch from small to big networks

• net4more is set up as a modular toolbox of hardware and software blocks to allow easy migration


Further geographical diversification of sales footprintSales strategy Tridonic

3

6%5%

3%

15%

59%

12%

Europe vs Non-Europe in 2019/20

PACRIM

MENA

Turkey

China

Europe

Investment Geos

6%4%

4%

8%

76%

2%

Europe vs Non-Europe in 2015/16

PACRIM

MENA

Turkey

China

Europe

Investment Geos

Key Topics

• Channels : Back Office Efficiency improvements in Europe with E-Commerce Portals for established customer base • Investment Geos : North and South Americas, India and Korea• Positioning : “Connected” technology acceleration driven by balanced “Push/Pull” sales motions and marketing communications


Additional Cost optimisation of manufacturing footpr intOngoing optimization

4 Operations Plan for the Future

• Implementation of cost down initiatives and LEAN processes in all production locations

• Focus on increased automation of production to ensure continuous competitiveness of production processes

• Phase out of conventional product portfolio over the next business years with necessary adaptions in production flows

• Optimize factory load with planned growth and increase flexibility through building up strong partnerships with third party suppliers


Key takeaways

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Restructuring completed

We offer a comprehensive LED portfolio as well as connected lighting solutions

With our technological insight and our customer pro ximity we are well prepared for the future

Connected lighting is embedded into our strategy

We believe in IP as the future interface of lightin g and beyond


luxCONTROL lighting management systems

BackUp

When will we launch net4more ?

Since this new kind of system implicates changes along the complete value chain and processes, we want to enable an early learning:

Market preparation Market preparation

• Customer & stakeholder presentations

• Field testing internal & external

“Technology Introduction Phase”“Technology Introduction Phase”

• Technology / product access for selected partners

• Selected pilot installations

• “Learning kits” for stakeholders & partners

LaunchLaunch

• Availability from stock

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Where can we apply net4more?

Connected Commerce Connected CityConnected Building

Indoor Navigation Easily guide user to selected area via the user’s mobile device

People TrackingTrack customer shopping behaviour and presence in-store

Remote MonitoringMonitor the performance of the lighting infrastructure

Space ManagementTrack building user behaviour and presence in building

Dynamic LightingOptimised street lighting in line with traffic and weather conditions

Advanced ParkingLighting infrastructure used to guide drivers to free parking spaces

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Enabling connected buildings is the primary application for net4more

3110/03/2016

Documents

Presentation The path of Tridonic 2016