luxCONTROL lighting management systems Alfred Felder, CEO Tridonic Capital Market Day 2014 April 2, 2014

Executive Summary ► Tridonic on Transformation journey since late 2012 ► Faced with rapid technological and geographic changes in components business ► Initial action plan reflected in improved business results: top and bottom

line as well a rapid growth of LED portion of the overall business ► New products and roadmaps focus on LED and reaffirm commitment

to innovation and quality ► Geographic expansion required to tap emerging markets growth prospects;

focus on Asia ► Need for stringent cost control and restructuring to finance geographic

and new business growth ► Next challenge: preparing for another transformation towards ‘Internet of Things‘ (IoT)

From “Old World” to “New World”

CHANGES IN MARKET AND TECHNOLOGY

New World

„New“ ((O)LED)

►Faster rate of innovation ►New application opportunities ►Global mega trends

Product & Technology Focus

Concurrent shift in market and technologies is leading to unique new opportunities

Old World ►Steady rate of innovation ►Longer time to market

„Old“ (Magnetic, Electronic)

►Regional, protected markets

„Old“ (Established Markets)

Market & Geographic Focus

„New“ (Asia & World)

Transformation Path, Four Phases Phase 1

Vision February 2013: Overall direction Phase 2

Fixing and Foundation Setting March 2013: Targeted action to stabilize business Phase 3

Designing the Path September 2013: Roadmap 2014 to 2016 with Clear Focus on LED Phase 4

Creating High-Performance Organization Accomplished In Progress

February 2014: Adapting organization in line with strategy, preparing for a new business model

Initial Results

► Downward trend (top and bottom line)

Components Segment

stopped and reversed

Adjusted EBIT 12

9,7% 10,7

9

10% 8,1% 7,5% 6,8% 6,6% 7,4 6,6 6,1

8,7

6

4,1%

3,3

3

2,9% 1,4% 2,6

2,3 1,2

0

2% 0%

► 2013/14 revenue expected slightly

above previous year despite phase-out from Magnetic business and shrink in conventional electronic

-3,2

-2% -3

products, focus on LED products and applications

6% 4%

3,4% 2,3% 4,1

8%

► Ongoing cost control, phase out of old

-4%

-3,4%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY 2011/12

FY 2012/13

Adjusted EBIT in EUR million

2013/14

Adjusted EBIT as a % of revenues

► LED growth outperforms shrink in

conventional business (LED share from 17% to 30% from 2013 to 2014)

Continuation of Strong Growth with LED Modules and LED Converters

103%

LED Modules

LED Converters

Revenues

Revenues

52%

88%

187%

108%

130%

12.6

11.5 9.1

10.3

9.7

8.7

7.2 5.8 4.5

5.1

5.5

5.3

5.5

3.6

Q1

Q2

Revenues FY 2012/13 in EUR million

Q3

Q4

Revenues FY 2013/14 in EUR million

Q1

Q2

Revenues FY 2012/13 in EUR million

Q3

Q4

Revenues FY 2013/14 in EUR million

► Current market share in Europe around 6% for modules and 8.5% for converters ► LED product portfolio: on time launches of innovative products both on modules

and converters ► Profitability for LED-components continuously improved year-over-year

Rapid Shift Towards LED Key Points OUR Expectation % Share of Revenues

50%

► Magnetic production site closure

in Europe and Australia complete in 2013

40%

► Over 30 % of LED sales share,

ahead of plan for the current business year

30%

20%

► Around 50 % of LED sales

share in 2015/16 10%

► Over 95 % of current R&D

projects are focused on LED

0% Jan.2011

Jan.2012

LED (Gear and module) Electronic FL

Jan.2013 Electronic HID Magnetic Ballast

Jan.2014

Jan.2015

► More than 50 % of the IP

portfolio is dedicated to LED ► Manage carefully conventional

Electronic products (FL&HID)

Roadmap 2015/16 in Line with Segments Segment Based Product Roadmaps ►Segment based approach established in

order to be more customer centric; offering dedicated solutions for each single application ►Focus on 3 segments: ►Retail & Hospitality: largest segment ►Office & Education: strong growth

prospects due to “LEDification” ►Outdoor & Industry: growth driven by urbanization, esp. in emerging markets ►Product roadmap developed in order to

fulfill individual application needs

Outdoor & Industry

Office & Education

Retail & Hospitality

Superior LED System Solutions to Serve Application Needs

Spotlight Engine

Circular Light Engine

Downlight Engine

Linear Light Engine

Square Light Engine

Industry Light Engine

Market Challenge

Emergency

Control

Flood Light Engine

TRIDONIC LED System Performance

Payback time Energy saving

► ►

Leading efficacy up to 160 lm/W Dimming range 1…100 %; < 0.2 W to 0,15W standby power

Maintenance cost

► ►

High system reliability Lumen maintenance L90 50.000 hours F10

Light quality

► ►

Color consistency up to Mac Adams 2 Photometric fit for the application

Beam shaping / optical control / Touch protection

► ►

Small light emitting area Fast replacement of conventional light source

Easy to use / thermal management

► ►

Plug and play Automated & constant lumen setting

Backwards compatible Light engine upgrade (performance / cost) every 9-12 months up

2014 Innovation Highlights

TUNEABLE WHITE

INTEGRATED LIGHT ENGINE

Retail & Hospitality

Office & Education

Retail & Hospitality

Office & Education

Up to 72 lm/W SDCM 3 2700 – 6500K on Planck curve

Up to 100 lm/W SDCM 4 3000 – 6000K

Up to 100 lm/W SDCM 3

Up to 80 lm/W SDCM 3 < 20mm height

FLAT CONTROL GEAR

OLED

Office & Education

Office & Education

35 W DALI / DSI

15 mm height

Edge less Up to 40 lm/W SDCM 4 < 6mm height

Flexible Up to 50 lm/W SDCM 4 < 1mm height

Reaching Beyond Home Markets in Western Europe Key Points ► Over 30% of sales share will come from regions outside of Western Europe ► Shift of resources to create dedicated products in emerging markets ► Strong focus on Asia: achieving growth targets requires stronger presence in Asia ► Consolidation of footprint

Asian Market: >50% of professional lighting market by 2020

2020 Sources: Tridonic Intelligence

LED Gears - TEC layer

SLE Initial Cost layer

Integrated Downlight

LED Gears - TEC layer

LLE and QLE - Initial Cost layer

Outdoor & Industry

Office & Education

Retail & Hospitality

Dedicated Products to Serve Emerging Markets

Outdoor Converter

Emerging Market Challenge

TRIDONIC LED System Performance

Payback time Energy saving

► ►

Leading efficacy up to 120 lm/W Fixed Output and Phase cut Dimming

Maintenance cost

► ►

High system reliability Lifetime up to 30.000 hours

Light quality

►

Photometric fit for the application

Beam shaping / optical control / Touch protection

► ►

Small light emitting area Fast replacement of conventional light source

Easy to use / thermal management

►

Plug and play

Backwards compatible Light engine upgrade (performance / cost) every 9-12 months up

Outlook: The Next Challenge

Stage 2

Stage 1

Revenues / Quantity / Performance

Established Players

+

Stage 3 Internet of Things (IoT)

“Newcomers”

? Early phase ► Trial & Error ► Small projects ► Learning phase ► Good enough (lm + lm/W) ► Create portfolio

Growth phase ► Differentiation in the core functionality ► Improve performance ► Project business ► Payback time decreases ► Create volume ► Penetration & costs (€ + lm/€)

Saturation phase & transition to IOT ► Differentiation in additional functionality ► Range extensions ► Mature market ► Integrate features (digitalization) ► New players entering from different industries ► New revenue sources/streams

Time

CURRENT TRIDONIC FOCUS

FUTURE TRIDONIC FOCUS

New World 2.0 CHANGES IN MARKET

„New 2.0“ (Internet of things)

AND TECHNOLOGY

New World 2.0 ►Beyond Lighting

Technology Focus

New World

„New“ ((O)LED & Control)

„Old“ (Conventional)

►Lighting

Old World

„Old“ (Established Markets)

„New“ (Real)

Market & Geographic Focus

Unique new opportunities for “out of the box” ideas A world of software, sensors, big data, services 30 billions devices connected in 2020

„New 2.0“ (Real & Virtual)

BackUp

luxCONTROL lighting management systems

The Configurator

Semiconductor Industry LED Chips & Package

Electronic components

Lighting Industry Components

Finished products

LED Chip

LED

LED Gear

LED retrofit lamp

LED package

Other electronic components

LED Module

LED Luminaire

Other components

Control

End User ► ► ► ► ►

Commercial Office Industry Outdoor Residential

Lighting Solutions ► Maintenance ► Leasing ► Energy

Management ► Data

Management ► Individualized

Services

Life cycle

4 – 6 months

Footprint

Global

Mix

High Volume / Low Diversity

Be aware Be quick Sustainable platform Global set-up with close regional customer intimacy

Flexibility

Source: Berenberg Lighting Report 2013 – Tridonic intelligence

12 – 24 months

Regional / National

Low to Medium Volume / High Diversity

Beyond Lighting – Smart Lighting

APPLICATIONS

INSIGHT Connect people, places and things

OPTIMISATIONS Radical Savings

INTERNET OF THINGS Foreseeable due to convergence of technology (microelectronics, communications and information) + diminishing size, falling price and declining energy consumption

WELL-BEING Comfort

Internet of Things (IoT)

“Connected Any-time, Any-place, with Any-thing and Any-one Ideally using Any-path/network and Any-service” Source: SINTEF 2011