Acuity Brands
Annual Report 2022

Plain-text annual report

2022 ANNUAL REPORT CEO MESSAGE Acuity Brands Fiscal Year 2022 Overview We have successfully positioned the Company at the intersection of sustainability and technology. Our businesses develop the technology that saves our customers energy and reduces their carbon emissions. We are positioned for long-term growth by taking advantage of two of the most important mega-trends: minimizing the impacts of climate change and maximizing the impacts of technology. Our organization is clear on how we create value. We create value by growing net sales, turning profits into cash, and not growing the balance sheet as fast. We have overhauled our total rewards framework so that everyone in the organization is aligned with this. We have made investments in our current business, have successfully made and integrated acquisitions, and have repurchased approximately 20% of our Company, creating permanent shareholder value. Neil Ashe Chairman, President, CEO AYI Fiscal 2022 Performance $11.08 $4.0B $512M 16% Diluted EPS Net Sales Net Sales Growth1 Share Repurchases Operating Profit $510M $260M Free Cash Flow2 1 Versus AYI Fiscal 2021 Performance 2 See Appendix A to the fiscal 2022 Proxy Statement for a reconciliation to the most directly comparable GAAP financial measure AYI Key Fiscal 2022 Achievements • Successfully positioned the Company at the intersection of sustainability and technology • Created permanent value through the repurchase of approximately 20% of our • Delivered strong fiscal 2022 performance – full-year net sales over $4 billion for first time, improved operating profit, and increased diluted EPS • Prioritized product vitality and service and received several industry awards at ABL • Rolled out new and upgraded Distech™ and Atrius™ products at ISG outstanding shares since May 2020 • Integrated North American OSRAM DS acquisition and rebranded the OPTOTRONICS™ products under our eldoLED™ family • Operated the Company as a values-driven organization • Continued building a strategic leadership team Our Shared Values INTEGRITY TIME CURIOSITY CUSTOMER OBSESSED PEOPLE COMMUNITY OWNER’S MINDSET About Acuity Acuity Brands, Inc. (NYSE: AYI) is a market-leading industrial technology company. We use technology to solve problems in spaces and light. Through our two business segments, Acuity Brands Lighting and Lighting Controls (ABL) and the Intelligent Spaces Group (ISG), we design, manufacture, and bring to market products and services that make a valuable difference in people’s lives. We achieve growth through the development of innovative new products and services, including lighting, lighting controls, building management systems, and location- aware applications. Acuity Brands, Inc. achieves customer-focused efficiencies that allow the Company to increase market share and deliver superior returns. The Company looks to aggressively deploy capital to grow the business and to enter attractive new verticals. Acuity Brands, Inc. is based in Atlanta, Georgia, with operations across North America, Europe, and Asia. Over 13,000 associates worldwide 7 countries 18 manufacturing facilities 8 distribution centers Segment Performance Acuity Brands Lighting and Lighting Controls (ABL) Provides sustainable, inspiring, and intelligent lighting solutions that enrich the communities where people live, learn, work, and play. Our strategy of increasing product vitality, elevating service levels, and using technology to differentiate our solutions is working by creating more sustainable options for our customers. Our broad portfolio in both lighting and lighting controls technology provides customers with a broad choice of industry-leading options. Intelligent Spaces Group (ISG) Delivers intelligent solutions that are smarter, safer, greener. Our Intelligent Spaces Group has differentiated technology in building controls and management systems with Distech, and, with Atrius, we are beginning to effectively demonstrate the benefits of connecting the edge to the cloud. ABL $3.8B Net sales 16% Net sales growth3 $216M Net sales 14% Net sales growth4 ISG 3 Versus ABL Fiscal 2021 Performance 4 Versus ISG Fiscal 2021 Performance ESFX LED Floodlight Our recently released Lithonia Lighting® ESFX LED Floodlight offers a wide array of options, including lumen and color. Atrius® Building Insights Atrius® Building Insights, a cloud- based energy management information system, unveiled new features to simplify Scope 1, 2, 3, and total portfolio emissions. Service & Product Vitality Awards EarthLIGHT Highlights Sustainability NET ZERO Net Zero Establishing our ambition to achieve Net Zero emissions by 2040.  Carbon Reduction Reducing carbon emissions and waste at our production and distribution facilities. Technology Introducing technology solutions such as the new sustainability and ESG reporting features of Atrius® Building Insights.  Safety Enhancing our Environmental Health and Safety (EHS) program.  Culture DEI Advancing our DEI Strategy and further evolving our values-driven culture. Governance Oversight Continued refreshment of our Board membership. Forward Looking Statements: Any statements related to future plans, execution, expectations, targets, permanent value, and opportunities are “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. They are based on management’s beliefs and assumptions and information currently available to management. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information. A number of important factors could cause actual events to differ materially from those contained in or implied by the forward-looking statements, including those factors discussed in our annual report on Form 10-K for the fiscal year ended August 31, 2022, filed on October 26, 2022, and those described from time to time in our other filings with the U.S. Securities and Exchange Commission (the “SEC”), which can be found at the SEC’s website www.sec.gov. We do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of events, or otherwise. 1170 Peachtree Street, NE Suite 2300 Atlanta, Georgia 30309 

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