Analyst presentation FY 2011 12 FINAL - Zumtobel GroupOne of largest media facades in the world (12.600qm) with over 22.000 LED-light points THORN: St. Oswald (Austria) ... LED-facade

1June 2012 1

June 27, 2012

Zumtobel GroupFY 2011/12 results

2June 2012 22

THORN: Street lighting project Durham county (UK)More than 6.000 Oxane LED street lighting luminairesEnergy saving > 40% until 2015

THORN: Airport Neapel (Italy)Clan LED and Quattro LED for indoor and outdoor area; Energy saving: 60%.

ZUMTOBEL: Wiener Städtische Ringturm (Austria): Replacement of old lourvre luminaires withLIGHTFIELDS LED: Energy saving: 56% + lowermaintenance costs.

Growth driver energy efficiencySelected reference projects

3June 2012 33

ZUMTOBEL: Städel Museum (Germany)LED-special solution + ARCOS LED, lightingmanagement system LUXMATE Professional

ZUMTOBEL: Galeria Centercity (South Korea)One of largest media facades in the world(12.600qm) with over 22.000 LED-light points

THORN: St. Oswald (Austria)Replacement of traditional metal halide lamp withPlurio LEDs; Energy saving: 84%

Growth driver LED Selected reference projects

4June 2012 44

THORN: Bosch China HQ (Shanghai/CN)Products: Quattro, D-CO LED Downlight

ZUMTOBEL: Rookery Building (Chicago/USA)Products: LED-facade lighting ROOK, LED-spot ELEVO

TRIDONIC: International airport Abu DhabiProducts: converter, TALEXXchain CRYSTAL CLASSIC

Growth driver global market opportunitiesSelected reference projects

5June 2012 5

Good progress in many areasHighlights FY 2011/12

Successful turnaround for Thorn brand

Swift execution of necessary adjustments in Components Segment

Improvement in working capital management

Outstanding LED luminaire product portfolio for Zumtobel brand

Growth well above market in Lighting Segment (i.e. market share gains)

Set-up of global organisational structure in Lighting Segment

Improvement in performance to customer (quality, on-time delivery)

Temporary weakness in product portfolio and performance in Components Segment

Decelerating revenue growth but sharp rise in fixed costs (R&D, selling expenses)

LED business margin currently still below conventional business margin

Luminaire business in Asia and the USA remained disappointing

6June 2012 6

Solid foundation to address strategic challenges and opportunitiesFinancial Highlights FY 2011/12

Group revenues increased by 4.2% to EUR 1,280.3 million –development differed widely by segment and region

Lighting Segment (Zumtobel and Thorn) with sound 9.2% increase mainly in Europe; US and Asia remained disappointingComponents Segment with -6.7% hit by weak market environment and temporary weakness in product portfolioLED revenues with substantial growth of 82.6% to EUR 183.2 million, reaching 14.3% of revenues (PY: 8.2%)

Adj. EBIT of EUR 34.6 million substantially below PY (EUR 78.4 million) due to technology shift, high growth investments and weakness inComponents Segment

Focus on strict working capital management lead to positive development in both working capital as % of revenues (17.8%) and free cash flow (EUR 22.3 million)

Net debt of EUR 141.4 million on PY level (EUR 141.3 million)

Dividend proposal of EUR 0.20 per share

7June 2012 7

0

10

20

30

40

50

60

Q1 Q2 Q3 Q4

LED share of Group revenues increases from 8.2% last year to 14.3% Zumtobel Group – LED revenue development

Zumtobel Group

FY 2010/11 FY 2011/12

19.1

36.6

22.7 25.533.0

LED revenue development in EUR million

+91.0%

Speed of transformation exceeded our expectations

LED revenues grow by 82.6% to EUR 183.2 million

Lighting Segment increases sales with LED products by 117% to EUR 136.6 million

Zumtobel brand LED penetration: ~20%

Thorn brand LED penetration: ~7%

LED sales in Components Segment rise by disappointing 31.4% to EUR 54.7 million.

45.6

+101.3% +85.3%

47.253.8

+62.9%

8June 2012 8

Fast technology shift to LED leads to a rise in fixed costsZumtobel Group – Development of R&D expenses

2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

Conventional LED

36.341.1

47.653.9

62.7

95%

5%10%

90% 80% 65%

30%

20%35%

70%

* Split is management estimate, total R&D includes capitalized development costs

R&D total (in EUR million)*

69.8

50%

50%

R&D expenditures nearly doubled over past 5 years

Increase by 11.3% to EUR 69.8 million in 2011/12

Focus on energy efficiency, LED, lighting quality and controls & systems

Parallel investments into conventional and LED lighting, faster innovation cycles and increasing product and system complexity require higher R&D spending

Medium-term forecasts call for R&D expenditures at approx. 5 to 5.5% (unchanged)

9June 2012 9

Significant investments in sales activities lead to a rise in fixed costs Zumtobel Group – Development of selling expenses

Increase in selling expenses (in EUR million)

2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

273292 299 287

327305

Light is a product that needs explanation

Strong direct sales network is key in the Zumtobel Group business model

Significant investments in sales activities over the last two year in line with global growth strategy

Investments include expansion of sales force, increased marketing expense, training etc. – especially for the Zumtobel brand

10June 2012 10

Sound but decelerating growth, earnings burdened by growth investments and fast technology shift towards LEDLighting Segment – Revenue and EBIT development

Lighting Segment

1) Reported EBIT adjusted for special effects

0

50

100

150

200

250

300

Q1 Q2 Q3 Q4

Revenues FY 2010/11 Revenues FY 2011/12

211.6236.1 228.8

205.7222.9

Adjusted EBIT1)Revenues in EUR million

Adjusted EBIT FY 2010/11,Adjusted EBIT FY 2011/12 in EUR million

Adjusted EBIT FY 2010/11,Adjusted EBIT FY 2011/12 as a % of revenues

+11.6%

Revenues FY 2011/12 EUR 949.2 million (plus 9.2%)Revenues FY 2010/11 EUR 869.0 million

Adjusted EBIT FY 2011/12 EUR 25.6 million (margin of 2.7%)Adjusted EBIT FY 2010/11 EUR 27.0 million (margin of 3.1%)

252.7

+10.5% +8.7%

223.6

-8

-4

0

4

8

12

16

20

24

28

32

Q1 Q2 Q3 Q4-2%

0%

2%

4%

6%

8%

8.610.8

16.4

0.41.6

4.6%

4.1%

0.2% 0.7%

7.6%

-1.8%

-4.1

7.2%

19.3

+6.2%

236.8

-0.1%-0.3

11June 2012 11

Revenues FY 2011/12 EUR 408.1 million (minus 6.7%)Revenues FY 2010/11 EUR 437.3 million


Components Segment

Severe drop on revenue and EBIT line but improvement measures beginning to take first effect in Q4 Components Segment – Revenue and EBIT development


50

70

90

110

130

150

Q1 Q2 Q3 Q4


106.2110.3 108.5 106.5

116.1



+3.8%


108.2

-0.3%

92.4

-13.2%

-5

0

5

10

15

20

25

Q1 Q2 Q3 Q4-5%

0%

5%

10%

15%

20%

25%

13.5

10.7

15.716.7

12.4

12.7%

9.7%

14.5% 15.7%

10.7%

8.1%

-3.4%

-3.2

8.7

-16.3%

97.2

3.4%

3.3

12June 2012 12

Zumtobel Group

Group revenue growth mainly burdened by weak Components SegmentZumtobel Group – Revenue and EBIT development


0

50

100

150

200

250

300

350

400

450

Q1 Q2 Q3 Q4


298.6326.3 316.8

293.5319.3



+9.3%


340.5

+7.5%+1.3%

297.4

Revenues FY 2011/12 EUR 1,280.3 million (plus 4.2%)Revenues FY 2010/11 EUR 1,228.2 million


-20

-10

0

10

20

30

40

50

Q1 Q2 Q3 Q4-4%

-2%

0%

2%

4%

6%

8%

10%

18.3 18.2

30.2

15.9 14.0

5.6%

6.1%

9.5%

5.4%

4.4%25.4

7.5%

-9.6

-3.2%

0.2%

0.5

-1.0%

316.1

13June 2012 13

Lighting Segment in European core markets as central growth driverZumtobel Group – Regional revenue distribution

Regional revenue distribution FY 2011/12Q4 2011/12

-1,0

-10,6

14,1

0,4

-6,7

-0,8

-22,7

-1,2

11,7

0,2

4,0

Change in %

1.280,3

10,7

35,7

123,6

114,3

995,9

93,0

375,0

108,2

76,5

343,3

Revenues in EUR million

1,029,4Asia

4,2316,1Total

-14,03,1Others

1,09,6America

1,529,2Australia & New Zealand

5,3244,8Europe

-12,023,5Southern Europe

3,297,1Western Europe

10,527,6Northern Europe

7,917,7Eastern Europe

11,578,9D/A/CH

Change in %

Revenues in EUR million

Europe: 77.8% (PY: 77.0%)

D/A/CH

26.8%

6.0%Eastern Europe

Northern Europe

8.5%

Western Europe

29.3%

Southern Europe

7.3%

Asia8.9%

9.7%

Australia & New Zealand

America 2.8%Others 0.8%

14June 2012 14

Additional revenue of EUR 80 m on solid gross profit margin (20 bps below PY)

Weakness in Components Segment, investments into growth and LED technology shift constitute major burden on adjusted EBITZumtobel Group – adj. EBIT-Bridge FY 2010/11 vs. FY 2011/12

1) Gross profit on segment level excluding development costs

Adj. EBITFY 2010/11

Lighting Segment∆ Gross Profit1)

Components Segment

∆ Gross Profit1)

Development costs

Selling expenses

Other/ consolidation

Adj. EBITFY 2011/12

78.4

27.8

-27.7

-26.1 -1.5-2.8

34.6

Gross Profit margin 460 bps below PY:- Underutilization of production capacities due to low

volumes- Lower revenues with profitable electronic ballasts - Higher share of not yet profitable LED components- High price pressure

Adminexpenses

-8.5

Increase in innovation costs as a result of parallel activities in the area of LED and conventional lighting activities as well as shorter innovation cycles. 75% of increase is attributable to Components Segment.

Global growth strategy requires significant expansion of sales activities (e.g. plus 120 sales people over the last 18 months) – 90% of increase is attributable to Lighting Segment

Licenseincome

-4.9

15June 2012 15

-0.0317.3

-1,3

-0.4

-1.8

0.9-8.4

2.9

9.3-4.7

4.4

14.0

-88.3

32.0

102.3

-217.0

319.3

Q4 2010/11

<-100-19.6

<-100

+81.3

>100

<-100+51.9

-94.4-100.0

-96.3

5.4

-8.5

2.5

-1.0

Change in %

-0.0713.9

-2.9

-0.1

0.7

-3.5-4.0

0.2

0.50.0

0.2

0.5

-93.1

29.6

93.6

-222.4

316.1

Q4 2011/12

-69.01.190.37Earnings per share ( in EUR)4.551.553.9Depreciation and amortisation

-68.951.316.0Net profit for the period

+49.5-1.5-0.8Net profit/loss from discontinued operations

-42.6-7.0-4.0Income taxes

-65.359.820.7Profit before tax+14.5-16.2-13.9Financial results

6.22.7as a % of revenues

-54.576.034.6EBIT-100.0-2.40.0Special effects


-55.978.434.6Adjusted EBIT

9.4-331.9-363.2SG&A expenses adjust for special effects


-3.1410.3397.8Gross profit

7.9-817.9-882.5Cost of goods sold

4.21,228.21,280.3Revenues

Change in %FY 2010/11FY 2011/12in EUR million

Improved financial results and no special effects in FY 2011/12 Zumtobel Group – Income Statement

Income statement

Special effects PY:Revaluation of building: EUR 2.0m, Release of legal provision: EUR 3.1m, Restructuring: EUR -2.8m

2011/12: Improved by EUR 2.4mHigher interest expenses (plus EUR 1.5m), Other financial expenses were substantially less negative at EUR -3.9m (PY EUR -8.8m)

16June 2012 16

Positive development of working capital and free cash flow Zumtobel Group – Cash Flow Statement

Cash Flow statement

4.8

-11.7

-19.6

-38.3

22.3

-19.6-21.6

-37.6

Q1 H1 Q1-Q3 FY

Free cash flow development

(cumulative figures in EUR million)

FY 2010/11 FY 2011/12

-57.3-57.2Capital expenditures on non-current assets

-13.913.0Change in cash and cash equivalents

-0.35.3Effects of exchange rate changes on cash and cash equivalents

-18.5-14.6Cash flow from financing activities

4.822.3Free cash flow

-61.5-55.8Cash flow from investing activities

-1.60.0Change in liquid funds from changes in the consolidation range

-3.30.2Capital expenditures on non-current and currentfinancial assets

0.71.1Proceeds from the sale of non-current assets

66.478.1Cash flow from operating activities

-3.6-6.0Taxes paid/received

1.6-12.9Change in other operating items

-54.99.3Change in working capital

123.287.7Cash flow from operating results

FY 2010/11FY 2011/12in EUR million

17June 2012 17

16.7%

19.2%19.4%20.8%

15.8%

18.4%18.0%18.4% 18.6%19.0%19.9%19.8%

17.8%

20.7%21.9%22.4%

Q1 Q2 Q3 Q4

Working capital back in targeted range on solid inventory reductionZumtobel Group – Key data Balance Sheet

Working capital

in % of rolling 12-month revenues

FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12

Target range:18% - 20% Working Capital remains a priority for management

As % of 12-month revenues, working capital equaled 17.8% as of 30 April 2012 (PY: 18.6%)

Inventory reduction (by EUR 17.6m) was main driver for positive development (all above in Components Segment)

Working Capital reduction achieved despite decrease of factoring from EUR 50 million to EUR 41.8 million as of 30 April 2012

18June 2012 18

Continued solid balance sheet structure and secured liquidity positionZumtobel Group – Key data Balance Sheet

Balance sheet data

1.111,60Net debt/EBITDA

228.8228.3Working capital

18.617.8As a % of rolling 12 months revenues

57.357.2Investments

37.338.2Gearing in %

37.135.8Equity ratio in %

378.7370.5Equity

141.3141.4Net debt

1,020.51,036.3Total assets

30 April 201130 April 2012in EUR million

Liquidity position supported by

Consortium credit agreement with max. line of EUR 500 million, ending Oct. 2016 (30. April 2012 EUR 200 million drawn)

Unsecured line of credit totaling EUR 100,6 million as of 30 April 2012

Dividend recommendation for 2011/12 financial year: 20 cent per share (payout ratio of approx. 50%)

19June 2012 19

Swift execution of necessary adjustments in Components SegmentComponents Segment

Management issues addressed – new COO as of 1 June 2012, search for new CEO ongoing

Majority of new generation of electronic ballasts with focus on cost-down already launched

Full integration of LED activities into existing Tridonic organisation completed

Clear strategic decision to focus LED activities on general lighting – e.g. exit commercial refrigeration business

Launch of new generation of LED converters and competitive LED modules in preparation

Enter partnerships and cooperations to support competitive position (e.g. with Schneider in April 2012)

Cost saving and capacity adjustment measures to stabilize earnings position introduced (e.g. headcount reduction by 368 employees, shut down of magnetic plant in Malaysia etc)

Inventory reduced by ~ EUR 16 million over the last 12 months

20June 2012 20

Striking the right balance between investing into future growth and adjusting cost structure to market demandZumtobel Group Outlook

Zumtobel Group outlook for FY 2012/13:

Year-on-year improvement in revenues (2011/12: EUR 1,280.3 million) and the adjusted EBIT margin (2011/12: 2.7%) despite

Increasingly negative economic outlookIncreased risk of government austerity programmes holding back public spending on lighting

The challenge for FY 2012/13 is striking the right balance betweenFocus on medium term growth opportunities (Energy efficiency, LED, additional global market opportunities)Continuing investments into innovative product portfolio (LED products, Control & Systems) Adjusting total cost structure in both segments to market demand / market opportunities

Zumtobel Group Mid-term targets:

Market growth assumption of 4% p.a. no longer appears realisticMedium term revenue growth target of approx. 10% CAGR needs to be adjusted downwards (Lighting Segment and Components Segment) to reflect economic developmentsTarget EBIT margin for the Group of > 10% over the medium term under stable economic conditions

21June 2012 21

Financial Calendar

Fri, July 27, 2012 36th ordinary Shareholders’ Meeting

Tues, July 31, 2012 Ex-dividend Day

Fri, Aug. 3, 2012 Dividend Payout Day

Wed, Sep. 5, 2012 Report on the 1st Quarter 2012/13 (May 2012 – Jul. 2012)

Wed, Dec. 5, 2012 Interim Financial Report 2012/13 (May 2012 – Oct. 2012)

Tues, Mar. 5, 2013 Report on the 3rd Quarter 2012/13 (May 2012 – Jan. 2013)

22June 2012 2222

Thank you for your attention!

Passion for Light

23June 2012 23

57% decrease in share price in 2011/12 (PY +50%)

Zumtobel family holds 35.4% of the share capital bound by a syndicate agreement (expires in Dec 2014)

Dividend recommendation for 2011/12 financial year: 20 cent per share (payout ratio of approx. 50%)

Zumtobel share price performance vs. ATX Shareholder structure

Share price reflects volatile stock market climate and weak operating performanceZumtobel AG – Development of Zumtobel Share in FY 2011/12

Free Float > 50%

Delta Lloyd AM > 5%

FMR LLC (Fidelity) > 5%

Zumtobel family 35.4%

30.04.2011 31.07.2011

20%

Zumtobel AG

ATX

140%

80%80%

31.10.2011 31.01.2012 30.04.2012

120%120%

40%

60%

100%100%

24June 2012 24

Five-Year Overview

in EUR million

7,329

4.4

48.7

80.4

131.4

35.0

340.4

972.8

-6.3

-69.8

4.6

51.4

1,114.6

2009/10

7,165

5.5

64.7

107.3

163.5

40.8

412.4

1,010.3

1.1

13.3

6.7

78.9

1,169.0

2008/09

7,9087,8147,456Headcount incl. contract worker (full-time equivalent)

5.14.74.5as a % of revenues

66.057.357.2Investments

166.0123.287.7Cash flow from operating results

129.0141.3141.4Net debt

45.337.135.8Equity ratio in %

490.7378.7370.5Equity

1,082.41,020.51,036.3Total assets

7.34.21.2as a % of revenues

93.551.316.0Net profit/loss for the period

9.66.42.7as a% of revenues

123.078.434.6Adjusted EBIT

1,282.31,228.21,280.3Revenues

2007/082010/112011/12

25June 2012 25

Disclaimer

The facts and information contained herein constitute forward-looking statements as of the date they were made and based upon assumptions as to future events or circumstances that may not prove to be complete or accurate. By their nature, these statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and are difficult to predict. Therefore, actual outcomes or results may differ materially from what is expressed, impliedor forecasted in these statements. Neither Zumtobel AG nor any of its directors, officers, employees or advisors nor any other person makes any representation or warranty, expressed or implied, as to the accuracy or completeness of the facts and information contained in this document or the related oral presentation thereof, including responses to questions following the presentation. Neither Zumtobel AG nor any of its directors, officers, employees and advisors nor any other person shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this document, the facts and/or information.Whilst all reasonable care has been taken to ensure the facts stated herein are accurate and that the assumptions and opinions contained herein are fair and reasonable, this document is selective in nature and is intended to provide an introduction to, and overview of, the business of Zumtobel AG as of the date this document was made. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by Zumtobel AG as being accurate.

Contacts:Investor RelationsTel.: +43 (5572) [email protected]

Documents

Analyst presentation FY 2011 12 FINAL - Zumtobel GroupOne of largest media facades in the world (12.600qm) with over 22.000 LED-light points THORN: St. Oswald (Austria) ... LED-facade