WE’RE CREATING
A WORLD OF
POSSIBILITIES
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A C U I T Y B R A N D S , I N C 2 0 1 7 A N N U A L R E P O R T
IN 20 1 7 WE LAUNCHED
CREATE BRILLIANT
EXPERIENCES
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A C U I T Y B R A N D S , I N C 2 0 1 7 A N N U A L R E P O R T
Indoors or out, wherever there are people, there are lights.
By leveraging this ubiquity, our new Atrius brand makes
greater human interaction and productivity possible.
HOW IT WORKS
Unlock the power
of a building’s data.
With its expansive network of intelligent luminaires,
lighting, controls, and software, the Atrius IoT framework
represents a major breakthrough in scalable technology
infrastructure. Unlocking data such as occupancy and
location, Atrius addresses a broad range of critical
business challenges.
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A C U I T Y B R A N D S , I N C 2 0 1 7 A N N U A L R E P O R T
Atrius Navigator
Delivers precise indoor positioning (IPS) and location-based services
(LBS), enabling applications that redefine customer journeys and
enhance business operations.
Atrius Assets
Combines asset tracking services with Bluetooth® low energy technology
tags to manage critical equipment and resources for easy, real-time
location and status monitoring.
Atrius Insights
Provides rich visualization of spatial analytics acquired from IPS data to
gain understanding of how visitors interact with your space, optimize
customer journeys, analyze and predict traffic and behavioral patterns,
and improve conversions.
Atrius Spaces
Transforms occupancy data into accurate insights into your
space utilization to efficiently allocate and plan for your spatial
requirements – optimizing facility operations, budgeting and life
cycle management – across your building or campus portfolio.
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A C U I T Y B R A N D S , I N C 2 0 1 7 A N N U A L R E P O R T
01
To Our Stakeholders
2017 was another year of record financial performance for Acuity Brands
as we reported all-time highs for net sales, operating profit, net income,
and diluted earnings per share. During the past year, we continued to
successfully execute our strategy to extend our leadership position in the
North American lighting and building management solutions market by
providing our customers with differentiated value from our industry-leading
portfolio of innovative products and solutions along with superior service.
ACUITY BRANDS 2 01 7 FINANCIAL RE SULTS INCLUDE :
• Record net sales of $3.5 billion, an
• Net cash provided by operating activities
increase of over 6% compared with
of $316.2 million, a decrease of 9%
fiscal 2016;
compared with fiscal 2016; and
• Record operating profit of $518.8
• Fiscal 2017 year-end cash balance of
million, an increase of 9% compared
$311.1 million, while investing $67.3
with fiscal 2016;
• Record net income of $321.7 million,
an increase of 11% compared with
fiscal 2016;
• Record diluted earnings per share of
$7.43, an increase of 12% compared
with fiscal 2016;
million in capital expenditures,
repurchasing $357.9 million of the
Company’s common stock, and paying
$22.7 million of dividends to
stockholders.
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A C U I T Y B R A N D S , I N C 2 0 1 7 A N N U A L R E P O R T
On the strategic front, we accomplished several items during fiscal 2017. We extended our leadership
position in North America through the continued expansion of our product portfolio of innovative and
energy-efficient lighting and building management solutions, including software and services. As a result,
we believe we generated net sales that meaningfully exceeded the growth rate of the overall lighting
market in North America, our primary addressable market, which was estimated to be flat to modestly
up during fiscal 2017. We created the Atrius™ brand, which encompasses the Company’s portfolio of
Internet of Things (IoT) business solutions and software platform. The transition to solid-state lighting
provides the opportunity to expand our addressable market because lighting now provides an ideal
platform for enabling IoT, which supports the advancement of smart cities and the smart grid.
Despite record financial performance in fiscal 2017, the share price of the Company’s common stock
declined year-over-year as our results were potentially below the expectations of investors. In fact, our
results were below our own expectations due primarily to the lighting market being softer than originally
forecast, as well as higher quality and customer service related costs. At August 31, 2017, the 1-year
total return on the Company’s common stock was meaningfully below that of the respective benchmark
indexes, which include the S&P 500 Index, the Dow Jones U.S. Electrical Components & Equipment
Index, and the Dow Jones U.S. Building Materials & Fixtures Index. However, the Company’s 3-year
annualized return exceeded all but the Dow Jones U.S. Building Materials & Fixtures Index, and for the
5-year period exceeded the annualized total returns of all the respective benchmark indexes as noted in
the following table:
Annualized Total Returns
1-Year
3-Years
5-Years
Acuity Brands, Inc.
Dow Jones U.S. Electrical Components & Equipment Index
Dow Jones U.S. Building Materials & Fixtures Index
Standard & Poor’s 500 Index
(36%)
25%
5%
16%
13%
9%
15%
10%
23%
15%
19%
14%
Our Future: Growth, Innovation, Excellence
This is an extraordinary time to be in the lighting and building management industries, particularly for
a company of the caliber of Acuity Brands. Rapid advancements in technology, along with the need
for greater energy efficiency, changes in public policy, and demand for environmental sustainability,
continue to drive profound changes in our industry creating exciting opportunities. Acuity Brands is
capitalizing on these profound changes to provide lighting and building management solutions that
are efficient, elegant, and sophisticated, while at the same time simple to install, maintain, and use.
We are at the forefront of transforming the lighting and building management industries. Our experience,
knowledge, and skill as lighting experts allow us to deliver superior lighting solutions for virtually any
application, a promise best captured in our tag line: “Expanding the Boundaries of Lighting™.”
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A C U I T Y B R A N D S , I N C 2 0 1 7 A N N U A L R E P O R T
As we enter 2018, our mission is to continue to build on our rich legacy of excellence, growth, and
innovation to provide great returns for our shareholders, superior value for our customers, and growth
opportunities for our associates. Our passion and intense focus continue to be centered on creating lighting
and building management solutions that deliver superior quality, energy efficiency and performance.
We know that superior quality of light enhances how we live and interact, whether it is increasing students’
learning ability in schools, improving worker productivity and comfort in offices and industrial facilities,
enhancing the shopping experience in retail establishments, or accelerating patient healing in hospitals.
The possibilities of what can be achieved by the use of intelligent lighting solutions are still being explored.
Our associates are rapidly exploiting new technologies and aggressively expanding our industry-leading
portfolio by developing intelligent lighting and building management solutions that represent significant
advancements over traditional technologies and easily network with other systems, improving energy
efficiency, health & safety, and productivity.
As the market leader in North America, we believe our deep expertise in technology, optics and thermal
management, our understanding of the art and science of lighting, and our ability to provide tailored
lighting and building management solutions for numerous applications have positioned the company to excel.
Our key strategies and tactical focus have remained consistent over the last few years. We expect to
continue to execute our profitable growth strategy by focusing on the three mission-critical areas of
operational excellence that we refer to as the 3 Cs.
THE 3 C’S
• Providing unparalleled customer service.
• Pursuing world-class cost efficiency by eliminating non-value added activities
and transaction costs.
• Creating a culture that demands excellence in everything we do through
continuous improvement.
On behalf of Acuity’s management team and its Board of Directors, I would like to thank our 12,500
associates for making possible the record success we experienced in 2017 and for their continued
contributions and dedication to our vision. I would also like to thank our customers for their business,
our suppliers for their support, and our stockholders for the partnership we share in our enterprise.
Sincerely,
Vernon J. Nagel
Chairman, President, and Chief Executive Officer
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A C U I T Y B R A N D S , I N C 2 0 1 7 A N N U A L R E P O R T
02
2017 Financial Highlights
(in millions of dollars, except earnings per share)
for the year ended August 31
Operations
Net sales
Gross profit %
Operating profit
Operating profit %
Net Income
Diluted earnings per share
Diluted weighted average number of shares outstanding (in millions)
Return on average shareholders’ equity
Cash provided by operating activities
Depreciation and amortization
Capital expenditures
Financial Position
Total assets
Total cash
Total debt
Total stockholders’ equity
Ratio of total debt to capital
Operating working capital as a percentage of net sales(3)
2017(1)
2016(2)
% Change
$
3,505.1
$
3,291.3
42.3%
518.8
14.8%
321.7
7.43
43.3
19.2%
316.2
74.6
67.3
$
$
$
$
$
$
43.6%
475.2
14.4%
290.8
6.63
43.8
19.3%
345.7
62.6
83.7
6%
9%
11%
12%
(1%)
(9%)
19%
(20%)
2017(1)
2016(2)
% Change
$
$
$
$
2,900
311
357
1,666
17.6%
14.5%
2,948
413
355
1,660
17.6%
14.2%
(2%)
(25%)
1%
0%
$
$
$
$
$
$
$
$
$
$
(1) 2017 results include pre-tax special charges associated with streamlining initiatives of $11.3 million, pre-tax amortization of acquired intangible assets of $28.0 million, pre-tax
share-based payment expense of $32.0 million, and pre-tax costs associated with manufacturing inefficiencies associated with the closing of a facility of $1.6 million, and gain
on sale of investment in an unconsolidated affiliate of $7.2 million, totaling $1.02 per share.
(2) 2016 results include pre-tax special charges associated with streamlining initiatives of $15.0 million, pre-tax amortization of acquired intangible assets of $21.4 million, pre-tax
share-based payment expense of $27.7 million, pre-tax acquisition-related items of $10.8 million, and pre-tax impairment of intangible asset of $5.1 million, totaling $1.21 per share.
(3) Operating working capital is defined as net receivables plus inventories minus accounts payable.
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A C U I T Y B R A N D S , I N C 2 0 1 7 A N N U A L R E P O R T
2017 At A Glance
Revenues
($ in millions)
Diluted EPS
$3,505
$3,291
$7.43
$6.63
$2,707
$2,394
$2,089
$5.09
$4.05
$2.95
‘13
‘14
‘15
‘16
‘17
‘13
‘14
‘15
‘16
‘17
Operating Profit
($ in millions)
Free Cash Flow
($ in millions)
$518.8
$475.2
$376.3
$262.0
$232.4
$248.9
$197.8
$299.1
12.5%
$221.5
10.6%
13.9%
14.4%
14.8%
$91.7
‘13
‘14
‘15
‘16
‘17
‘13
‘14
‘15
‘16
‘17
Margins
Free Cash Flow is defined as cash provided by operating
activities minus purchases of property, plant, and equipment.
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A C U I T Y B R A N D S , I N C 2 0 1 7 A N N U A L R E P O R T
A C U I T Y B R A N D S , I N C 2 0 1 7 A N N U A L R E P O R T
5-Year Cumulative Total Return*
Among Acuity Brands, Inc., the S&P 500 Index, the Dow Jones US Electrical Components & Equipment Index,
and the Dow Jones US Building Materials & Fixtures Index
500
400
300
200
100
0
8/12
8/13
8/14
8/15
8/16
8/17
Acuity Brands, Inc.
S&P 500
Dow Jones US Electrical Components & Equipment Index
Dow Jones US Building Materials & Fixtures Index
Acuity Brands, Inc.
S&P 500
Dow Jones US Electrical Components & Equipment Index
Dow Jones US Building Materials & Fixtures Index
8/12
$100
$100
$100
$100
8/13
$134
$119
$125
$127
8/14
$195
$149
$156
$159
8/15
$308
$149
$141
$183
8/16
$436
$168
$161
$228
8/17
$281
$195
$201
$239
*Assumes $100 invested on August 31, 2012 in stock or index, including reinvestment of dividends.
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A C U I T Y B R A N D S , I N C 2 0 1 7 A N N U A L R E P O R T
03
Markets
Commercial Office
Education
Lighting solutions that enable financial incentives, stimulate
Smart solutions deliver beautifully-controlled lighting to
worker productivity, ensure employee wellbeing and lower
address the unique needs of each space within the campus.
costs. Start mitigating risks and enjoying a more intelligent
From classroom to auditorium to corridor, and even outdoor,
working space.
you’ll find it here.
Healthcare
Hospitality
Enhance the healing and nurturing environment with
Lighting solutions that deliver comfortable, home-like,
complete solutions that make it simple to deliver the right
engaging spaces which improve ambiance, hospitality
lighting for each space. Enable caregivers. Improve patient
provider performance, and environmental sustainability.
experience and outcomes.
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A C U I T Y B R A N D S , I N C 2 0 1 7 A N N U A L R E P O R T
Industrial
Infrastructure
Your industrial environments need advanced solutions that
Lighting solutions for municipalities, DOTs, and utilities,
go beyond illumination. You need lighting and controls that
encompassing the industry’s largest portfolio of smart lighting
improve your operations, and deliver savings that improve
and controls solutions for roadways, bridges, and tunnels.
your bottom line.
Residential
Retail
Residential lighting solutions ensure residents and property
Lighting and controls that create dynamic and engaging
managers have lighting that is functional, attractive, and
lighting environments to help deliver on cost saving and
energy-efficient.
revenue enhancing goals.
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04
Brands
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A C U I T Y B R A N D S , I N C 2 0 1 7 A N N U A L R E P O R T
05
Stockholder Information
Board of Directors
Vernon J. Nagel(1)
Chairman, President,
W. Patrick Battle
Managing Partner
Peter C. Browning(2)
Managing Director
G. Douglas Dillard, Jr.
Founder and Managing Director
and Chief Executive Officer
Stillwater Family Holdings
Peter Browning Partners
Slewgrass Capital, LLC
Acuity Brands, Inc.
Board Advisory Services
James H. Hance, Jr.
Operating Executive
Gordon D. Harnett
Former Chairman, President
Robert F. McCullough(3)
Former Chief Financial Officer
The Carlyle Group;
and Chief Executive Officer
AMVESCAP PLC
Julia B. North
Former President and
Chief Executive Officer
Former Vice Chairman
Brush Engineered Materials, Inc.
(now known as Invesco Ltd.)
VSI Enterprises, Inc.;
Bank of America Corporation
(now known as Materion Corp.)
Former President of
Consumer Services
BellSouth Corporation
Dominic J. Pileggi
Former Chairman and
Ray M. Robinson(4)
Non-Executive Chairman
Norman H. Wesley
Former Chairman and
Mary A. Winston
President
Chief Executive Officer
Citizens Trust Bank;
Chief Executive Officer
Winsco Enterprises, Inc.;
Thomas & Betts Corporation
President Emeritus
Fortune Brands, Inc.
Former Executive Vice President
East Lake Golf Club
and Chief Financial Officer
Family Dollar Stores, Inc.
(1) Chairman of Executive Committee (2) Chairman of Governance Committee, Lead Director (3) Chairman of Audit Committee (4) Chairman of Compensation Committee
Executive Officers
Vernon J. Nagel
Chairman, President,
Richard K. Reece
Executive Vice President
Mark A. Black
Executive Vice President
Laurent J. Vernerey
Executive Vice President
and Chief Executive Officer
and Chief Financial Officer
and President of
Acuity Brands Lighting
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Corporate Information
Corporate Headquarters
Acuity Brands, Inc.
1170 Peachtree Street, NE
Suite 2300
Atlanta, Georgia 30309-7676
404-853-1400
www.acuitybrands.com
Acuity Brands Lighting
One Lithonia Way
Conyers, Georgia 30012-3957
770-922-9000
Reports Available to Stockholders
Copies of the following Company reports may be obtained,
without charge:
- 2017 Annual Report to the Securities and Exchange Commission,
filed on Form 10-K
- Quarterly Reports to the Securities and Exchange Commission,
filed on Form 10-Q
Requests should be directed to:
Acuity Brands, Inc.
Attention: Investor Relations
1170 Peachtree Street, NE
Suite 2300
Atlanta, Georgia 30309-7676
404-853-1400
www.acuitybrands.com
Transfer Agent and Registrar
Computershare Shareowner Services is the transfer agent, registrar,
Independent Registered Public Accounting Firm
EY
dividend disbursing agent and dividend reinvestment agent for the
55 Ivan Allen Jr. Boulevard
Company. Stockholders of record with questions about lost certifi-
Suite 1000
cates, lost or missing dividend checks, direct deposit of dividends,
Atlanta, Georgia 30308-3051
or notification of change of address should contact:
404-874-8300
Acuity Brands, Inc.
c/o Computershare
P.O. Box 30170
College Station, Texas 77842
www.computershare.com/investor
Toll Free: 866-234-1921
(Inside the United States and Canada)
201-680-6578
(Outside the United States and Canada)
Stock Listing
New York Stock Exchange
Ticker Symbol: AYI
Annual Meeting
11:00 a.m. Eastern Time
January 5, 2018
Four Seasons Hotel
75 Fourteenth Street, NE
Atlanta, Georgia 30309
Direct Stock Purchase Plan
Computershare Shareowner Services offers a direct stock purchase
and sale plan for investors wishing to purchase Acuity Brands
stock. Dividends can be automatically reinvested. The Plan is not
sponsored or administered by Acuity Brands. Inquiries should be
directed to: Computershare Shareowner Services.
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A C U I T Y B R A N D S , I N C 2 0 1 7 A N N U A L R E P O R T
1170 Peachtree Street, NE
Suite 2300
Atlanta, Georgia 30309-7676
404-853-1400
www.acuitybrands.com
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