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| 8-K - FORM 8-K - LIGHTING SCIENCE GROUP CORP | d8k.htm |
 ©
2010 Lighting Science Group Corporation.
Canaccord
Genuity
30th
Annual
Growth
Conference
InterContinental
Boston
August 10
th
, 2010
1
Exhibit 99.1 |
 Certain
statements in this presentation constitute “forward-looking statements”
relating
to
Lighting
Science
Group
Corporation
(“LSG”
or
the
“Company”)
within
the
meaning
of
the
Private
Securities
Litigation
Reform
Act
of
1995.
All
statements
regarding
future
events,
our
business
strategy
and
our
financing
plans
are
forward-
looking statements. In some cases you can identify forward-looking statements by
terminology such as “may,”
“will,”
“would,”
“should,”
“could,”
“expect,”
“intend,”
“plan,”
“anticipate,”
“believe,”
“estimate,”
“predict,”
“potential,”
or “continue,”
the
negative of such terms or other comparable terminology. These statements that are
not historical facts are forward looking. Readers are specifically directed to
the Company’s SEC filings for a description of certain business issues and risks
and, specifically, the discussion under “Risk Factors”
in the Company’s Form 10-K. These
known and unknown risks, uncertainties and other factors could cause actual results
to differ materially from those contemplated by the forward-looking statements. Any
forward-looking statement speaks only as of the date on which such statement is
made. The Company undertakes no obligation to update any forward-looking
statement
or
statements
to
reflect
events
or
circumstances
after
the
date
on
which
such statement is made.
Safe Harbor
Statement
2
©
2010 Lighting Science Group Corporation. |
 Lighting
Science Group Corporation designs, develops, manufactures and markets LED lighting
solutions. By applying the science of light, our team outperforms the competition and
delivers on the promise of LED Technology. From
outer
space
to
major
cities
and
now
your
home,
LSG
products
save
money
and
are environmentally friendly. Company business lines include lamps, products for
Public and Private Infrastructure, Retail and Hospitality, Consumer products in
partnership with The Home Depot as well as leading lighting companies, and Custom
Solutions for special artistic projects.
Lighting Science Group Vision
“I have to admit that it seems to be brighter than the
75W incandescent bulb I have in the utility room.”
3
©
2010 Lighting Science Group Corporation. |
 Employees at
Corporate Headquarters in Satellite Beach, FL: 300+ Staffed
with
industry
leading
experts
in
both
lighting
and
Solid
State
Technology.
Currently
holds
over
100
US
and
international
utility
and
design
patents
Lighting Science Group Overview
“I just wanted to say that I really
like your Ecosmart
bulb”
Sales Offices
Australia &
New Zealand
Corporate
Headquarters
Satellite Beach,
Florida
European
Sales Office
Goes,
Netherlands
4
©
2010 Lighting Science Group Corporation. |
 Technology
Leadership NASA
Bayer
Cypress
University of Florida
National Semiconductor
Jefferson
Harvard University
University of Sydney
University of Oxford
Oak Ridge National Lab
Military/Municipal
5
©
2010 Lighting Science Group Corporation. |
 Lighting
Design Thermal Management
Optics
Power Supplies
Intelligent Controls
Areas of
Focus
6
©
2010 Lighting Science Group Corporation. |
 Technology
Integration Thermal Solution:
•
Function & Form
•
Convection & Conduction
•
Optimized for Tj model
Optical System:
•
Design
•
Materials
•
Absorption
Power Supply:
•
Optimized V
f
output
•
High Efficiency
•
Balanced components
LED:
•
V
f
optimized
•
Spectrum optimized
•
Thermal match
“I have one bulb in a ceiling fixture point down –
works great!”
7
©
2010 Lighting Science Group Corporation. |
 •
System Optimization
•
Higher utilization of available chip lumens
drives greater efficacy and lower first costs
•
Subcomponent Modularity
•
Economies of scale
•
Reduced complexity
•
Manufacturing Capability
•
Integrated development and early
commercialization
•
Insourced
and outsourced low cost
production
Our Competitive Advantages
8
©
2010 Lighting Science Group Corporation. |
 Demonstrated
Advantage C2D
Definity
Symetrie
*LSGC C2D compared
LSGC
Best in Class Competition
*DFN 30 WW compared
*CRD A WW compared
9
©
2010 Lighting Science Group Corporation. |
               Markets
Served LSG
LSG
has
developed
a
uniquely
complete
product
portfolio
that
enables
it
to
provide
solutions
to
a
broad
range
of
market
segments.
Managed
as
three
distinct
product
families,
we
currently
focus
on
market
segments
where
we
can
provide
the
most
compelling
ROI
possible.
Infrastructure
Lamps
Commercial &
Architectural
Product Families
Targeted Market Segments
Schools and
Universities
Government
Infrastructure
Retail and
Hospitality
OEMs
10
©
2010 Lighting Science Group Corporation. |
 Customer
Examples Schools and
Universities
Government
Infrastructure
Retail and
Hospitality
Private Label &
OEMs
Mexico
Salt Lake City
LABSL and DPW
NYC Design Competition
Orlando Public Works
University of Arizona
Florida Internat’l
University
Tufts
Dallas County Schools
Starbucks
AMC Theaters
Hilton Hotels
Simon Malls
JC Penney Sephora
The Home Depot
Westinghouse
Generation Brands
Philips Lighting
Other major lighting brands
Through our OEM
partners LSG accesses
the massive consumer
lighting market
Commercial
American Airlines
Related Properties
Merrill lynch
Visionaire
One Arts Plaza
11
©
2010 Lighting Science Group Corporation. |
 Strategic
Relationship with The Home Depot
•
LSG is Home Depot’s preferred
provider and product
development partner with
respect to LED lamps and fixtures
•
Full line of New EcoSmart
LED
Lamps available this year
•
LSG has the option to provide
any of Home Depot’s branded
LED lamps and fixtures
12
©
2010 Lighting Science Group Corporation. |
 30%
12%
30%
16%
12%
2006 Overall Lighting Market -
$2.7B
2007 Overall Lamp Market
14% increase in CFL
7% decrease in incandescent
23%
11%
26%
14%
26%
21%
11%
27%
15%
26%
2009 Overall Lamp Market -
$2.4 B
CFL maintains 26% share
2% decrease in incandescent
1% increase in linear fluorescent & HID
Total 2009 US Lamp Market -
$2.4B
13
©
2010 Lighting Science Group Corporation. |
 Inelastic
– Price
decrease hurts revenue
Elastic –
Price decrease
improves revenue
Inelastic –
Price
decrease hurts revenue
LED Projected Market Elasticity
14
©
2010 Lighting Science Group Corporation.
Adoption curve was generated by using over 30 choice based questions to derive preference
between unbranded Incandescent, CFL and LED offerings. This curve is adjusted for
market awareness which is 30% lower for CFL and LED, the model assumes equally availability at retail, equal promotions and
that consumers are equally informed of the relative features and
benefits. Information generated from an independent third party on behalf of LSG.
|
 Now
12
Months
24
Months
LSGC Projected Luminaire
Performance/Cost Trajectories
15
©
2010 Lighting Science Group Corporation. |
 Production
Strategy Global Footprint
•
Footprint to service regional demand
•
SB attached to product development
and R&D
•
SB to service initial product demand
•
China to service Europe, Asia & Australia
•
Near term support of US demand
•
SB and Mexico to support North & South
America demand
16
©
2010 Lighting Science Group Corporation. |
 Projected
Manufacturing Cost Improvement
50%
19%
2%
•
Expedited volume ramp caused deviations from baseline gross margins.
•
Expect to deliver product at baseline margins by Q1 2011 as a result of the following:
Q1
Q2
Q3
Q4
•
Ramp of fixed price Asian contract
manufacturing –
agreement in place and
production has started
•
LSG Mexico facility on line in Q4
•
Automation equipment implemented in Q3 and Q4
•
Supply chain stability by end of Q4 should greatly
reduce non-LED material shortages, which have
caused significant freight and labor variances
17
©
2010 Lighting Science Group Corporation. |
 •
Year-over-year 29% reduction in SG&A on increasing Sales
•
Cut General & Administrative Expense by 48%
•
Additional reduction in operating expenses through consolidation
of
California Design Works to headquarters
•
Completion of restructuring of European operations
•
Maintain R&D and product development capabilities while maintaining
strong market presence
•
Retain engineers to continue innovative product and solution
development
•
Consolidate company-wide R&D and product development operations
into Satellite Beach facility
•
Divesting of Japan Operations
Continued SG&A Rationalization
18
©
2010 Lighting Science Group Corporation. |
 Backlog has
grown to 300% Q4’09 Level 2010 Revenue and Backlog
$MM
19
©
2010 Lighting Science Group Corporation. |