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BMS Software Suite AYI: ACUITY INC. COMPANY OVERVIEW JANUARY 8, 2026 Mark Architectural Lighting , Juno®, Gotham ® Lighting: CIBC Square, Toronto
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FORWARD LOOKING STATEMENTS NYSE: AYI 2 This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements include, but are not limited to, statements that describe or relate to the Company’s plans, initiatives, projections, vision, goals, targets, commitments, expectations, objectives, prospects, strategies, or financial outlook, and the assumptions underlying or relating thereto. In some cases, we may use words such as “expect,” “believe,” “intend,” “anticipate,” “estimate,” “forecast,” “indicate,” “project,” “predict,” “plan,” “may,” “will,” “could,” “should,” “would,” “potential,” and words of similar meaning, as well as other words or expressions referencing future events, conditions, or circumstances to identify forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Act. Forward-looking statements are not guarantees of future performance. Our forward-looking statements are based on our current beliefs, expectations, and assumptions, which may not prove to be accurate, and are subject to known and unknown risks and uncertainties, assumptions and other important factors, many of which are outside of our control and any of which could cause our actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties are discussed in our filings with the U.S. Securities and Exchange Commission, including our most recent annual report on Form 10-K (including, but not limited to, the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), quarterly reports on Form 10-Q, and current reports on Form 8-K. Any forward- looking statement speaks only as of the date on which it is made. This presentation is not comprehensive, and for that reason, should be read in conjunction with such filings. Y ou are cautioned not to place undue reliance on any forward- looking statements. Except as required by law, we undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, or otherwise.
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We disclose the following non-generally accepted accounting principles ("GAAP") financial measures: “adjusted operating profit” and “adjusted operating profit margin” for total company and by segment; for total company only we additionally include: “adjusted net income;” and “adjusted diluted EPS”. These non- GAAP financial measures are provided to enhance the reader's overall understanding of our current financial performance and prospects for the future. Specifically, management believes that these non-GAAP measures provide useful information to investors by excluding or adjusting for items detailed in the appendix of this presentation. We also provide “free cash flow” (“FCF”) to enhance the reader’s understanding of our ability to generate additional cash from its business. Management typically adjusts for these items for internal reviews of performance and uses the above non-GAAP measures for baseline comparative operational analysis, decision making and other activities. Management believes these non-GAAP measures provide greater comparability and enhanced visibility into our results of operations as well as comparability with many of its peers, especially those companies focused more on technology and software. Non-GAAP financial measures included in this presentation should be considered in addition to, and not as a substitute for or superior to, results prepared in accordance with GAAP. The most directly comparable GAAP measures for adjusted operating profit and adjusted operating profit margin for total company and by segment are “operating profit” and “operating profit margin,” respectively, which include the adjustments detailed in the Appendix. Adjusted operating profit margin is adjusted operating profit divided by net sales for total company and by segment. The most directly comparable GAAP measures for adjusted net income and adjusted diluted EPS are “net income” and “diluted EPS,” respectively, which include the adjustments detailed in the Appendix. Adjusted diluted EPS is adjusted net income divided by diluted weighted average shares outstanding. A reconciliation of each measure to the most directly comparable GAAP measure is available in the Appendix to this presentation. We define FCF as net cash provided by operating activities less purchases of property, plant and equipment. A calculation of this measure is available in in the Appendix to this presentation. Our non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures used by other companies, have limitations as an analytical tool, and should not be considered in isolation or as a substitute for GAAP financial measures. Our presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that our future results will be unaffected by other unusual or non-recurring items. NON-GAAP FINANCIAL MEASURES NYSE: AYI 3
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a ABOUT ACUITY We use technology to solve problems in spaces, light and more things to come. INNOVATORS | DISRUPTORS | BUILDERS OUR BUSINESS SEGMENTS a a Integrity Time Curiosity Customer Obsessed People Community Owner’s Mindset Grow Net Sales Turn Profits Into Cash Don’t Grow Balance Sheet as Fast OUR VALUES OUR OPERATING SYSTEMHOW WE CREATE VALUE INNOVATORS | DISRUPTORS | BUILDERS OUR BUSINESS SEGMENTS Grow Net Sales Turn Profits Into Cash Don’t Grow Balance Sheet as Fast INNOVATORS | DISRUPTORS | BUILDERS OUR BUSINESS SEGMENTS Grow Net Sales Turn Profits Into Cash Don’t Grow the Balance Sheet as Fast
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$468 $515 $587 $591 $624 $662 $669 FY20 FY21 FY22 FY23 FY24 FY25 LTM Q1'26 ABL: ACUITY BRANDS LIGHTING 1 ABL Adjusted Operat ing Profit and Adjusted Operating Profit Margin are non-GAAP f inancial measures. See the Appendix f or reconciliations t o the most directly comparable financial measures calculated in accordance with GAAP. Not e: Graphs not to scale NYSE: AYI 5 PREDICTABLE, REPEATABLE, SCALABLE Fiscal 2026 First Quarter YTD Performance NET SALES ($B) ADJUSTED OPERATING PROFIT1 ($M) ADJUSTED OPERATING PROFIT MARGIN1 Mark Architectural Lighting , Peerless® Lighting: Portland International Airport $3.2 $3.3 $3.8 $3.7 $3.6 $3.6 $3.6 FY20 FY21 FY22 FY23 FY24 FY25 LTM Q1'26 14.7% 15.7% 15.4% 15.9% 17.5% 18.3% 18.5% FY20 FY21 FY22 FY23 FY24 FY25 LTM Q1'26
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$157 $190 $216 $253 $292 $764 $948 FY20 FY21 FY22 FY23 FY24 FY25 LTM Q1'26 ADJUSTED OPERATING PROFIT MARGIN1 AIS: ACUITY INTELLIGENT SPACES UNIQUE AND DISRUPTIVE TECHNOLOGIES DRIVING PRODUCTIVITY FOR PEOPLE EXPERIENCING SPACES AND FOR THE PEOPLE WHO ARE PROVIDING THOSE SPACES. 1 Acuity Int elligent Spaces Adjusted Operating Profit and Adjust ed Operating Profit Margin are non-GAAP f inancial measures. See the Appendix for reconciliat ions to the most directly comparable financial measures calculated in accordance with GAAP. Not e: Graphs not to scale NYSE: AYI 6 MAKING SPACES AUTONOMOUS Acuity India Experience Center Fiscal 2026 First Quarter YTD Performance NET SALES ($M) ADJUSTED OPERATING PROFIT1 ($M) $15 $26 $40 $50 $63 $164 $205 FY20 FY21 FY22 FY23 FY24 FY25 LTM Q1'26 9.5% 13.5% 18.5% 19.8% 21.7% 21.5% 21.7% FY20 FY21 FY22 FY23 FY24 FY25 LTM Q1'26
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CAPITAL ALLOCATION PRIORITIES Invest for Growth in our Current Businesses Invest in M&A Increase our Dividend Repurchase Shares to Create Permanent Shareholder Value NYSE: AYI 7 4. 3. 2. 1. WE HAVE REPURCHASED AROUND $1.5 BILLION OF OUR SHARES OUTSTANDING FROM THE BEGINNING OF THE 4TH QUARTER OF 2020. THIS IS APPROXIMATELY 25% OF THE THEN-OUTSTANDING SHARES. 2021: OPTOTRONIC® 2023: KE2 THERMTM 2025: M3 INNOVATION 2025: QSC®
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v AYI PERFORMANCE OVER TIME NYSE: AYI 8 1 Adjusted Operating Profit, Adjusted Diluted EPS and Free Cash Flow are non -GAAP financial measures. See the Appendix for reconciliations to the most directly comparable financial measures calculated in accordance with GAAP. Note: Graphs not to scale ($ in Millions, Except Per Share Data) NET SALES ($B) ADJUSTED OPERATING PROFIT1 ($M) ADJUSTED DILUTED EARNINGS PER SHARE1 FREE CASH FLOW1 $2.0 $2.0 $1.7 $1.6 $1.8 $1.9 $2.1 $2.4 $2.7 $3.3 $3.5 $3.7 $3.7 $3.3 $3.5 $4.0 $4.0 $3.8 $4.3 $4.5 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 LTM Q1'26 $3.04 $4.04 $2.79 $2.42 $2.85 $3.47 $3.81 $4.45 $5.83 $7.84 $8.45 $8.84 $9.57 $8.27 $10.17 $12.83 $14.05 $15.56 $18.01 $18.73 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 LTM Q1'26 $230 $291 $199 $186 $213 $253 $274 $322 $421 $555 $592 $534 $528 $456 $506 $588 $597 $640 $769 $806 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 LTM Q1'26 $177 $195 $72 $139 $138 $141 $92 $198 $232 $262 $269 $310 $442 $450 $365 $260 $511 $555 $533 $534 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 LTM Q1'26
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APPENDIX nLight® AnimateTM Controller: Application Rendering
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NYSE: AYI 10 AYI ADJUSTED OPERATING PROFIT AND ADJUSTED OPERATING PROFIT MARGIN ($ in Millions Except Per Share Data) Notes: 1) In FY2019 we made changes to our pension accounting that moved the presentation of certain costs out of operating profit and into miscellaneous expenses. This change is reflected from fiscal FY17 and is included in all subsequent fiscal years. Prior fiscal y ears do not reflect this change. 2) All numbers were taken from publicly available 10 -Ks and earnings release filings that can be found on the AYI Investor Relation s website. FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY'23 FY’24 FY’25 LTM Q1’26 Net Sales $1,965 $2,027 $1,657 $1,627 $1,796 $1,934 $2,089 $2,394 $2,707 $3,291 $3,505 $3,680 $3,673 $3,326 $3,461 $4,006 $3,952 $3,841 $4,346 $4,538 Operating Profit (GAAP) $222 $261 $154 $158 $189 $208 $222 $299 $376 $475 $519 $461 $463 $354 $428 $510 $473 $553 $564 $591 Add-back: Amortization of acquired intangible assets 3 4 5 7 10 11 11 11 11 21 28 29 31 42 41 41 42 40 77 91 Add-back: Stock-based compensation expense 11 12 10 9 8 16 17 18 18 28 32 32 29 38 33 37 42 47 45 45 Add-back: Special charge - 15 27 8 - 13 9 - 12 15 11 6 2 20 3 - 27 - 30 30 Infrequent Adjustments Add-back: Settlement gain (7) - - - - - - - - - - - - - - - - - - - Add-back: Manufacturing Inefficiencies Related to Facility Closing - - - - - 3 8 - - - - - - - - - - - - - Add-back: Abandonment of Inventory - - - - - 1 - - - - - - - - - - - - - - (Less)/Add-Back: Freight service provider fraud-related (recovery)/expense - - - - - - 8 (6) - - - - - - - - - - - - Add-back: Acquisition-related costs - - - - - - - - 3 11 - 4 3 3 2 - - - 24 19 Add-back: Impairment of intangible asset - - - - - - - - - 5 - - - - - - - - - - Add-back: Manufacturing inefficiencies - - - - - - - - - - 2 - 1 - - - - - - - Add-back: Excess inventory - - - - - - - - - - - 3 - - - - - - - - Add-back: Supplier recovery charge - - - - - - - - - - - - - - - - 13 - - - Add-back: Acquired profit in inventory - - - - - - - - - - - - - - - - - - 30 30 Adjusted Operating Profit (Non-GAAP) $230 $291 $196 $182 $207 $253 $274 $322 $421 $555 $592 $534 $528 $456 $506 $588 $597 $640 $769 $806 Adjusted Operating Profit Margin (Non-GAAP) 11.7% 14.4% 11.8% 11.2% 11.5% 13.1% 13.1% 13.5% 15.6% 16.9% 16.9% 14.5% 14.4% 13.7% 14.6% 14.7% 15.1% 16.7% 17.7% 17.8% ($ in Millions)
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NYSE: AYI 11 AYI ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE Notes: 1) All numbers were taken from publicly available 10K’s and earnings release filings that can be found on the AYI Investor Relat ions website 2) TCJA: Tax Cuts and Jobs Act of 2017 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY'23 FY’24 FY’25 LTM Q1’26 Net Income (GAAP) $129 $149 $85 $79 $106 $116 $127 $176 $222 $291 $322 $350 $330 $248 $306 $384 $346 $423 $397 $410 Add-back: Amortization of acquired intangible assets 3 4 5 7 10 11 11 11 11 21 28 29 31 42 41 41 42 40 77 91 Add-back: Stock-based compensation expense 11 12 10 9 8 16 17 18 18 28 32 32 29 38 33 37 42 47 45 45 Add-back: Special Charge - 15 27 8 - 13 9 - 12 15 11 6 2 20 3 - 27 - 30 30 Infrequent Adjustments - - - - - - - - - - - - - - - - - - - - Add-back: Settlement gain (7) - - - - - - - - - - - - - - - - - - - Add-back: Loss on extinguishment of debt - - - 11 - - - - - - - - - - - - - - - - Add-back: Manufacturing Inefficiencies Related to Facility Closing - - - - - 3 8 - - - - - - - - - - - - - Add-back: Abandonment of Inventory - - - - - 1 - - - - - - - - - - - - - - (Less)/Add-Back: Freight service provider fraud-related (recovery)/expense - - - - - - 8 (6) - - - - - - - - - - - - Add-back: Acquisition-related costs - - - - - - - - 3 11 - 4 3 3 2 - - - 24 19 Add-Back: Net loss (gain) on financial instruments - - - - - - - - 3 - - - - - - - - - - - Add-back: Impairment of intangible asset - - - - - - - - - 5 - - - - - - - - - - Add-back: Manufacturing inefficiencies - - - - - - - - - - 2 - 1 - - - - - - - Add-back: Gain on sale of investment in unconsolidated affiliate - - - - - - - - - - (7) - - - - - - - - - Add-back: Excess inventory - - - - - - - - - - - 3 - - - - - - - - Less: Gain on sale of business - - - - - - - - - - - (5) - - - - - - - - Add-back: Impairment of investment - - - - - - - - - - - - - - 6 - 3 - - - Add-back: Supplier Recovery Charge - - - - - - - - - - - - - - - - 13 - - - Add-back: Loss on sale of a business - - - - - - - - - - - - - - - - 11 - - - Add-back: Acquired profit in inventory - - - - - - - - - - - - - - - - - - 30 30 Add-back: Pension settlement loss - - - - - - - - - - - - - - - - - - 31 31 Total Adjustments 8 30 42 35 19 45 52 23 47 80 66 68 65 102 85 78 138 86 236 246 Adjustment for Tax Effect (3) (11) (14) (12) (6) (16) (18) (8) (15) (27) (22) (20) (15) (23) (19) (18) (32) (20) (54) (56) Less: Discrete income tax net benefit of the TCJA - - - - - - - - - - - (35) - - - - - - - - Less: One-time tax benefit - - - - - - - - - - - - - - - - - - (8) (8) Adjusted Net Income (Non-GAAP) $132 $168 $114 $103 $118 $145 $162 $191 $254 $344 $366 $363 $381 $327 $372 $444 $452 $489 $570 $592 Diluted weighted average number of shares outstanding 43.9 41.6 41.6 43.3 42.8 41.9 42.5 43.0 43.4 43.8 43.3 41.0 39.8 39.6 36.6 34.6 32.2 31.4 31.6 31.6 Adjusted Diluted EPS (Non-GAAP) $3.04 $4.04 $2.74 $2.37 $2.76 $3.47 $3.81 $4.45 $5.83 $7.84 $8.45 $8.84 $9.57 $8.27 $10.17 $12.83 $14.05 $15.56 $18.01 $18.73 ($ in Millions, Except Per Share Data)
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NYSE: AYI 12 AYI FREE CASH FLOW ($ in Millions Except Per Share Data) Notes: 1) All numbers were taken from publicly available 10K’s and earnings release filings that can be found on the AYI Investor Relat ions website FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY'23 FY’24 FY’25 LTM Q1’26 Net Cash Provided by Operating Activities $209 $222 $93 $161 $161 $172 $132 $233 $289 $346 $337 $352 $495 $505 $409 $316 $578 $619 $601 $610 Purchases of Property, Plant, and Equipment (32) (27) (21) (22) (23) (31) (41) (35) (57) (84) (67) (44) (53) (55) (44) (57) (67) (64) (68) (76) Free Cash Flow (Non-GAAP) $177 $195 $72 $139 $138 $141 $92 $198 $232 $262 $269 $308 $442 $450 $365 $260 $511 $555 $533 $534 ($ in Millions)
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NYSE: AYI 13 ABL ADJUSTED OPERATING PROFIT AND ADJUSTED OPERATING PROFIT MARGIN ($ in Millions Except Per Share Data) FY20 FY21 FY22 FY'23 FY’24 FY’25 LTM Q1’26 Net Sales $3,181 $3,287 $3,810 $3,723 $3,573 $3,612 $3,621 Operating Profit (GAAP) $426 $476 $546 $510 $583 $591 $596 Add-back: Amortization of acquired intangible assets 27 28 28 29 26 25 25 Add-back: Stock-based compensation expense 13 11 13 14 15 17 17 Add-back: Acquisition related items 1 - - - - - - Add-back: Special charge - - - 25 - 30 30 Add-back: Supplier recovery charge - - - 13 - - - Adjusted Operating Profit (Non-GAAP) $468 $515 $587 $591 $624 $662 $669 Adjusted Operating Profit Margin (Non-GAAP) 14.7% 15.7% 15.4% 15.9% 17.5% 18.3% 18.5% AIS ADJUSTED OPERATING PROFIT AND ADJUSTED OPERATING PROFIT MARGIN FY20 FY21 FY22 FY'23 FY’24 FY’25 LTM Q1’26 Net Sales $157 $190 $216 $253 $292 $764 $948 Operating Profit (GAAP) ($4) $10 $23 $32 $44 $76 $102 Add-back: Amortization of acquired intangible assets 14 13 13 13 14 51 66 Add-back: Stock-based compensation expense 5 3 4 5 6 7 8 Add-back: Acquired profit in inventory - - - - - 30 30 Adjusted Operating Profit (Non-GAAP) $15 $26 $40 $50 $63 $164 $206 Adjusted Operating Profit Margin (Non-GAAP) 9.5% 13.5% 18.5% 19.8% 21.7% 21.5% 21.7% ($ in Millions) ($ in Millions)