presentation the path of tridonic 2016
TRANSCRIPT
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
Nr. 3Capital 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
Nr. 4Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
Promised in 2014Preparing for transformation towards “Internet of Things” (IoT)
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Full focus on LED technology for professional light ing
Rigid consolidation of manufacturing footprint
Reaching beyond Home Markets (Europe)
Creating a high performance organisation
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Nr. 5Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
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 - -
Nr. 6Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
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
Nr. 7Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
Geographical expansion into growth markets - focus o n AsiaDelivered by 2016
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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
Nr. 8Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
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%
Nr. 9Capital 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
Nr. 10Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
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
Nr. 11Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
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
Nr. 12Capital 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
Nr. 13Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
The Tridonic PathTaking full advantage of the new opportunities
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Driving innovation
Dedicated product portfolio for connected lighting
Further geographical expansion of sales footprint
Cost efficient fab-light operations footprint
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Nr. 14Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
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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Nr. 15Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
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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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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
Nr. 17Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
Dedicated product portfolio for connected lightingWhy are we Getting into IP Connected Lighting?
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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
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Nr. 19Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
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
Nr. 20Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
How does net4more look like?
2 net4more easily bridges between wired and wireless networks, stretching from small to big networks
Nr. 21Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
How does net4more look like?
2 net4more easily bridges between wired and wireless networks, stretching from small to big networks
Nr. 22Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
How does net4more look like?
2 net4more easily bridges between wired and wireless networks, stretching from small to big networks
Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main Nr. 23
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
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Nr. 24Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
Dedicated product portfolio for connected lightingWhat can net4more do?
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• 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
Nr. 25Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
Further geographical diversification of sales footprintSales strategy Tridonic
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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
Nr. 26Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
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
Nr. 27Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main
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
Capital Markets Day 2016 / 15 March 2016 / Frankfurt am Main Nr. 28
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
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