Corporate presentation of the Zumtobel Group · PDF file“Electric Lamp Service ... • Tridonic is the Group-wide specialist in innovative lighting ... Resistant to salt water

Corporate presentation of the Zumtobel Group

October 2016

“Light is emotion. It is fundamental to human well-being, it

brings buildings, interiors and outdoor spaces to life. Light is

communication. Light is variable. Light is everywhere.

Thanks to new technological possibilities we’re seeing that

light can have many new functions - functions we

understand and want to make available to our clients, and of

course to the users of their facilities.”

Ulrich Schumacher, CEO Zumtobel Group

THE ZUMTOBEL GROUP – A BRIEF PORTRAIT

OUR BRANDSRelevant offers in all brand segments

CORPORATE STRATEGYMilestones and key strategies for profitable growth

Corporate Presentation / October 2016 Nr. 4Nr. 4

The Zumtobel Group A global player in the lighting industry

All figures – Group Financial Statement FY 2015/16 (01 May 2015 – 30 April 2016)

Strong market position

• Focus on general lighting

• Luminaires and lighting solutions: European market leader

• Lighting components: one of the world’s leading producers

Strong brands

• Thorn / Zumtobel / acdc: complementary portfolios for the global luminaire/lighting solutions business

• Tridonic: in-house expertise around innovative lighting components and systems

• Reiss: OEM supplier of moisture-proof luminaires and luminaires with higher protection

Global presence

• Sales offices and partners in around 90 countries

• 6,761 employees worldwide, including 1,943 in sales

• Global production network with 14 plants on four continents

Corporate Presentation / October 2016 Nr. 5

The Zumtobel Group A global player in the lighting industry

Solid financials

• Revenues: €1,356.5 million, including

• Luminaires & lighting solutions: €1,028.4 m

• Components: €410.4 m

• LED share of Group revenues: over 60%

• Adjusted EBIT: €58.7 m

as a % of revenues = 4.3%

• Net profit: €11.9 m

• Investments: €58.4 m

• Equity ratio: 31.2%

All figures – Group Financial Statement FY 2015/16 (01 May 2015 – 30 April 2016 / Financial results: EBIT adjusted for special effects

Innovation leadership

• R&D expenditure: €87.9 million

as a % of revenues: 6,5%

• 602 R&D employees worldwide

• Use of platform strategies for

multiple brands

• Focus on: energy efficiency, light quality, intelligent control, data

management

• Comprehensive patent portfolio:

148 new patent applications in 2015/16


Timeline: from family firm to global lighting group

Acquisition of

acdc lighting, UK

Initial public

offering (IPO)

20062003

Jürg Zumtobel

becomes Chairman of

the Supervisory Board

2001

Onset of LED

activities

2000

Acquisition of luminaire

manufacturer Staff,

based in Germany

1993/9419911976

Zumtobel Licht GmbH and

Tridonic Bauelemente GmbH

become independent

subgroups

The company becomes

a stock corporation

Jules Thorn founds the

“Electric Lamp Service

Company”

First international

design award for a

Zumtobel product

19631928 1950 2015 New business

models in the

spheres of smart,

connected lighting

and light as a

service

Acquisition of Thorn

Lighting Group, UK

CEO Ulrich Schumacher

introduces a new

organisational structure

LED share of

revenues more

than 60%

2014

Dr. Walter Zumtobel establishes

“Elektrogeräte and Kunstharz-

presswerk W. Zumtobel KG” in

Dornbirn, Austria


What defines the Zumtobel Group today

Close customer relationships that have developed over

many years

An international group with a committed family

shareholder. Listed on the Vienna Stock Exchange (ATX)

since 2006; founding Zumtobel family has a 35%

shareholding

Attractive career paths for creative talents, ambitious

lighting experts, electronics and software engineers

Optimal coverage of customer needs through multi-brand

strategy and channel distribution

Established network of leading technology partners,

lighting designers, architects, artists and designers

An open, growth-oriented corporate culture


*Selected management positions of the Zumtobel Group

Ulrich Schumacher

Chief Executive Officer

Karin Sonnenmoser

Chief Finance Officer

Management Board

Alfred Felder

Chief Operating Officer

The management teamA wealth of industry experience and wide-ranging expertise

Management Brands Management Zumtobel Group*

Klaus Vamberszky

Global R&D Guido van Tartwijk

Tridonic (ab 1.11.2016)

Michael Ball

Thorn

Christoph Mathis

Zumtobel

Durga Rao

Global Sales

Alasdair Waugh

Global OperationsChristian Ranacher

Global HR

Gareth Frankland

acdc ®Reinhardt Wurzer

Chief Business

Development Officer


Employees at the Zumtobel Group Chances for an international career

Design meetstechnology

Creating joint innovative

lighting solutions

High-tech meetscreativity

International graduate

programs, mentorships

Individual career planning

Passion, freshthinking, creativity

Impartingknowledge,

discovering andresearching new

things

Living thefounder´s values

Versatile tasks, flexible

timetables

Shape a common future





Thorn – the performance brand forinternational volume business

Allianz-Riviera stadium (Euro 2016)

Nice, France

Toven Tunnel

Nordland, Norway

Office lighting

Automarocchi Transport, Italy

Emilia School

Sweden

• Quality supplier delivering optimum cost-benefit solutions =

value for money.

• Luminaires with excellent functionality and proven technology,

easy to install and use

• Comprehensive portfolio of indoor and outdoor lighting

(applications include offices, retail, industry, schools, roads,

tunnels, sports facilities)

• Target groups: electricians and electrical consultants,

wholesalers and contractors, businesses and municipalities

• Strongest market presence: UK & Ireland, Scandinavia,

France, Australia & New Zealand, Hong Kong

• Strongest growth potential: D-A-CH region, Middle East, China


Omega Pro

LED flat panel luminaire with outstanding

glare control and high energy efficiency for

office and education lighting.

Urba

Versatile LED urban lantern with a distinctive

contemporary design, available in two sizes

with nine light distribution patterns;

eliminates scattered light.

FleXity

LED post top lantern with efficient optical

system, 100,000-hour maintenance-free

lifetime, self-cleaning; integrated night-

dimming function.

Chalice Pro

LED downlight family: exceptional efficiency

(110 lm/Watt); outstanding and uniform light

quality; dimmable, various light outputs and a

choice of reflectors.

Primata Pro

Highly efficient and low-maintenance LED

trunking luminaire for quick, easy installation

in production and workshop facilities.

Thorn – current core products

Altis Area

High-power LED floodlight – a low-

maintenance, energy-efficient alternative to

1 and 2 KW HID floodlights.


Tridonic – the electronic heartof intelligent, networked lighting

• Tridonic is the Group-wide specialist in innovative lighting

components and systems

• Product portfolio: LED modules, LED drivers, electronic control

gear, sensors, lighting control & management, software solutions

• Complete solutions for lighting operation and control

• New business potential in IoT – the Internet of Things:

communication, data management and additional services via

the lighting infrastructure

• Target group: OEM supplier to luminaire manufacturers

worldwide, wholesalers

• Revenues: around 20% from Zumtobel and Thorn; around 80%

from competitors

ready2mains

Luminaires can be digitally dimmed via

the existing mains system.

An efficient solution for retrofitting

existing installations

connecDIM

Intelligent lighting management solution

for > 250 DALI devices

Configured via the cloud

Accessible online – any time, anywhere


Tridonic – current core products

Spotlight Engine

LED spotlight module for retail, hotel and

hospitality applications.

TALEXXengine LLE

Linear LED modules for office and education

facilities.

TALEXX-Driver

For outdoor applications (e.g. street lighting

and industry). For protection class I and II

luminaires.

ready2mains™

uses the mains cable to transfer data.

Luminaires are controlled and dimmed

directly via the mains, with no need for any

additional wiring.

connecDIM

The connecDIM system, comprising the

gateway and cloud, is used in everything

from relatively small applications to complex

lighting installations in large buildings.

TALEXXengine CLE

LED-module with integrated electronics for

an easy installation on ceilings and walls.


Zumtobel – the premium brand for architectural lighting

• Integrated lighting solutions including lighting management – with

the focus on project business

• Outstanding design, innovative technology and comprehensive

applications expertise

• Working in close collaboration with leading international architects,

lighting designers and artists

• Portfolio covers all applications in and around buildings; currently

expanding into the outdoor and residential sectors

• Target groups: lighting designers and electrical consultants,

architects, electricians, major businesses, private and public

investors

• Strongest market presence: Austria, Switzerland, UK & Ireland,

Benelux and Italy

• Strongest growth potential: Germany, USA, Middle East, Asia

Audi production lighting

Györ, Hungary

Issey Miyake Shop

Antwerpen, Belgium

Bridge Sägerbrücke

Dornbirn, Austria

St. Martin Tower

Frankfurt on the Main, Germany


Zumtobel – current core products

TECTON LED

The world’s top-selling continuous-row LED

lighting system for industry, logistics and

retail applications – enhanced energy

efficiency; pared-down, minimalist design.

SUPERSYSTEM

Precision lighting technology for museums,

galleries, retail and hotel applications.

SUPERSYSTEM Outdoor for outdoor

applications added in Autumn 2015.

SLOTLIGHT infinity

The world’s first continuous LED light line – a

uniform strip of light without shadows or

overlaps.

LITECOM

Lighting management system – intuitive app-

based operation, multiple configurations.

ONDARIA LED

Round luminaire providing diffuse and

uniform lighting – for interiors with a

pleasant, atmospheric ambience.

CRAFT

LED luminaire for high-bay warehouses.

Special thermo-management with high

durability and minimal maintanance.


acdc – the innovative, dynamic brand for high-end LED projects

• Supplier of LED luminaires – specialising in façade lighting and

lighting solutions for hotels and restaurants

• Creative, dynamic architectural lighting for

high-prestige settings; specialist in colour change and dynamic

lighting

• Established in the UK in 2001, acquired by the Zumtobel Group in

2015: the ideal addition to the Group’s brand and product portfolio,

for the project business in particular

• Outstanding client relationships with lighting designers,

architects and interior designers

• Strongest market presence: UK, Middle East;

• Strongest growth potential: international,

via the Zumtobel Group sales organisation

The Regent Bridge

Edinburgh, UK

The Woodland Spa

Burnley, UKKnightsbridge Estate

London, UK

Porsche Braevern

Bellevue, USA


acdc – current core products

DARC PRO

A family of deep-recessed pinhole LED

downlights delivering outstanding

performance with minimal glare.

AIR

Soft-edge deep-recessed LED downlight

family which blends seamlessly into a

contemporary environment.

GIO

Mini deep-recessed low-glare LED downlight

with excellent performance and low glare.

ORELLE

Superb plug-and-play linear product with 2

high levels of output, ideal for coves and

recesses.

BLADE

Micro-linear surface-mount wall-graze

luminaire capable of washing up to 10

metres.

FUSION

Family of colour-change or static-colour

floodlights for exterior building facades.

Market-leading performance and output.


Reiss –Luminaires with higher protection for extreme applications

• Reiss is the group-wide expert for luminaires with

higher protection

• Product range for all applications requiring maximum

protection and safety

• Target group: retailers, agents, and – as OEM

partners – also renowned luminaire manufacturers

throughout the world

• Strongest market presence: Europe, Scandinavia

• Strongest growth potential: Middle East, Asia

• Current sales: approx. 20% with Zumtobel Group;

approx. 80% with third-party customers


Reiss – current core products

FAD LED XTREME

High-temperature and low-temperature

model of FAD LED, suitable for even more

application areas. Boasting a service life of

50,000 hours, the XTREME models of FAD

are ideal for ambient temperatures ranging

from -35°C to +55°C.

RLT2 LED

A classic all-round unit, this slim-line tubular

luminaire with IP68 protection presents itself

at its best in applications requiring maximum

protection.

RLS LED

Surface-mounted LED luminaire for ceilings

and walls, with high IP54 protection rating.

RHF LED

High-power high-bay reflector luminaire, with

up to 18,000 lumens. Resistant to salt water

and therefore suitable for harsh

environments.

RV*

Vandal-proof luminaires. Reliable operation

even after forceful impact.





Corporate strategy: 3 phases for profitable growth

Phase 1

Phase 2

Phase 3

Strategic redirection and

restructuring

Provide initial growth impetus &

improve profitability

Develop new business models for

smart lighting

• Create new offerings in the field of smart,

connected lighting

• Develop a comprehensive service offering

• Access new application areas (e.g. residential)

• Increase M&A activity for strategic development

of the global brand portfolio

• Optimise the sales organisation

• Create growth through systematic multi-brand

sales approach

• Develop a global competitive production

network

• Establish and expand technology partnerships

• Make initial acquisitions of compementary

companies

• Merge the sales organisations of

Zumtobel and Thorn

• Close plants with excess capacity

• Exit outdated technologies

(mainly magnetic ballasts, HID)

• Merge purchasing functions

• Introduce a platform strategy

• Stengthen the technology position


1

Corporate strategy: The key success factors

2

3

4

5

6

7

Multi-brand strategy

Efficient, lean corporate structures

Sales channels aligned with customer target groups

Global, competitive production network

Establishment of innovative business models in the Internet of Things

Establishment of a service business: Light as a service

Targeted advancement and development of existing and future employees


Benefits of multi-brand strategy: Strong brands cover all customer segments

Lighting

solution

Lighting

management

(user interface

& apps)

LuminaireLED driverLED module

Premium Segment*

Performance Segment

Sensors,

controls, hard

& software

Budget Segment

1

* Marktsegmentierung Europa


Efficient structures: Clearly defined brand profiles, maximum synergies

*simplified representation; in organisational terms the Reiss brand is assigned to the SPP Business Division

Lighting Segment Components Segment

Zumtobel Group*

Global Sales / 7 regions Global Sales / 7 regions

Global production network / 9 plants

Group Purchasing

Global R&D

Corporate Functions

Thorn

Product portfolioMarketing, Logistics

Tridonic

R&D / Product portfolioMarketing, Logistics

SPP*

Product portfolioLogistics

Zumtobel


acdc


Global production network / 4 plants 1 plant

• Defining and developing the product and service portfolio is the core competency of the brands

• All new products are signed off by a Steering Committee in order to avoid overlaps

• Sales in the Lighting Segment are cross-brand and structured by region, offering the optimum portfolio from all brands.

• Cost and synergy effects are leveraged by Group-wide functions

2


Clear customer focus through 4-channel sales

Architects, lighting designers,

electrical consultantsSPECIFICATIONZumtobel

Thorn

acdc Specialising in: Hospitality, Facade & Amenity

Luminaire manufacturers worldwideOEMTridonic

Reiss Specialising in luminaires with higher protection

TRADEZumtobel Smaller projects (“soft spec”)

Thorn Smaller projects (“soft spec”)

Thorn Stock business with wholesalers (“over the counter”)

Electricians

Wholesalers

END USERZumtobel

Thorn

Key accounts

mainly from retail and industry

Municipal specifiers

particularly for road lighting

3

acdc Specialising in: Hospitality, Facade & Amenity


Success factor multibrand projectsGreater customer satisfaction and larger-volume projects

3

MICHELIN URBALAD

Ladoux, France

Thorn for offices and conference rooms

Zumtobel for corridors and foyer

Total volume: EUR 390,000

ACADEMIC HOSPITAL

MARIA MIDDELARES

Ghent, Belgium

Thorn for offices, treatment rooms and corridors

Zumtobel for recreation rooms, underground car

park and corridors

Total volume: EUR 1.28 million

SKYLAB

Geneva, Switzerland

Thorn for corridors, sanitary facilities and utility

rooms

Zumtobel for foyer, corridors, underground car

park, emergency lighting, conference rooms and

offices

Total volume: EUR 578,000

ARAB CENTER FOR RESEARCH AND

POLICY STUDIES (ACRPS)

Qatar

Thorn for back office, car park and outdoor

areas

Zumtobel for offices and classrooms

Total volume: EUR 2.4 million


Globally, competitive production network

Restructuring measures

2013

• Closure of Fürstenfeld, AUT

• Closure of Melbourne, AUS

2014

• Closure of Tianjin, CN

• Closure of Landskrona, SWE

• Closure of Ennenda, CH

• Sale of connection technology business,

Innsbruck, AUT

2015

• Sale of magnetics business, Auckland,

NZL

• Restructuring of Lemgo, GER

4

Dornbirn

AUT

Lemgo

DE

Les Andelys

FR

Usingen

DE

Guangzhou

CN

Highland

USA

Sydney

AUS

Auckland

NZL

Shenzhen

CN

Jennersdorf

AUT

Spennymoor

UK

Key

Luminaire plantComponents plant

Production volume > €100 million

Production volume > €50 million

Production volume < €50 million

Barrowford (acdc)

UK


Establishing innovative business models in the Internet of Things

Connected lighting

LED World

Many different opportunities for

new business models

•Lighting already installed in all

buildings: ideal basis for new services

•Additional customer benefits through:

- energy savings

- reduced complexity

- added value through data

management

5


Three core application areas for smart, connected lighting

5

Connected Commerce Connected Building Connected City

Indoor Navigation

Easily guide user to

selected area via the

user’s mobile device

People Tracking

Track customer

shopping behaviour

and presence in-store

Remote Monitoring

Monitor the performance

of the lighting

infrastructure

Space Management

Track building user

behaviour and

presence in building

Dynamic Lighting

Optimised street

lighting in line with

traffic and weather

conditions

Advanced Parking

Lighing infrastructure

used to guide drivers to

free parking spaces


Establishing a service business: Light as a service

Benefits for the customer

• Benefit from energy savings

from the outset and, as a direct

result, from cost savings

• Financing extends over full term

of contract

• Zumtobel Group looks after all

aspects

• Benefit from technological

progress through regular

updates in the lighting solution

• Flexibility through service

upgrade option within existing

contract

6

LIGHTING MANAGEMENT

We take

responsibility for

your lighting


Success factor service businessReference customers with Zumtobel Group service contracts (5 to 10-year term)

6LIGHTING MANAGEMENT

1 SHOP: Andrew & Co, Dinkelsbühl, Germany

2 SUPERMARKT: Delhaize, Denderleeuw, Belgium

3 PRODUKTION: Heron, Dornbirn, Austria

4 SUPERMARKT: Aveve, Sint Truiden, Belgium

5 PRODUKTION: SAPA, Nenzing, Austria

6 INDUSTRIE: Luitpoldhütte, Amberg, Germany

7 LOGISTIK: Multi Packaging Solutions, Bornem, Belgium

1 2 3 4

5 6 755


Success factor employees: The Zumtobel Group as an attractive employer

Zumtobel Group Academy

• Comprehensive training

programme

• Focus on sales:

product/applications

expertise

• Classroom instruction and

extensive e-learning

portfolio

Talent Management

• Targeted development of

specialists and managers

• International assessment

centre and courses for

high potentials

• Systematic succession

planning

• Career advancement

across functional and

regional boundaries

Corporate Culture

• Highly relevant corporate

values

• Dr. Walter Zumtobel

Award

to promote value

orientation and culture of

innovation

• Strong community: long-

service celebrations,

Christmas party, sports

and employee events

Employer Brand

• All brands united under the

Zumtobel Group employer

brand; harmonized

approach to recruitment

• International search for

specialists and young

talents

• Establishment of R&D

Centres in major cities

(Amsterdam / Paris)

7


Outlook in facts & figures: Bright prospects for the Zumtobel Group

Revenues

Above-average growth through:

• Systematic multi-brand sales

• Higher market shares through

innovative product and service portfolio

• Investments in growth markets

such as the Middle East, China and

Latin America

• Selected acquisitions

Profits

Improvement of operating profits

through:

• Consolidation of the sales organisation

• Higher capacity uptake at the production

plants

• Bundling of purchasing activities

• Synergies in development through

platform strategy and Group-wide

predevelopment

Objectives (medium-term)

Operating earnings (adjusted EBIT margin)

of 8-10%

| |

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Documents

Corporate presentation of the Zumtobel Group · PDF file“Electric Lamp Service ... • Tridonic is the Group-wide specialist in innovative lighting ... Resistant to salt water