Energy Focus, Inc. · NASDAQ:EFOI
Energy Focus — Investor Presentation (November 2021)
35 slides from Energy Focus's investor presentation, November 2021
Slide 1: Investor Presentation
Investor Presentation Energy Focus, Inc. November 2021 © Energy Focus, Inc.
Slide 2: Forward Looking Statements
Forward Looking Statements Forward-looking statements in this presentation are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements can generally be identified by the use of forward-looking terminology, including the terms “believes,”
Slide 3: Company Snapshot: Aiming to Lead & Expand the Emerging Global Human Centric Lighting Market
Company Snapshot: Aiming to Lead & Expand the Emerging Global Human Centric Lighting Market Innovator of LED lighting technologies and solutions: - With a proven track record for superior quality and innovation in LED since 2004 - Marquee enterprise customers, including U.S. and foreign navies, U.S.
Slide 4: 2019-2021 Quarterly Financial Overview
2019-2021 Quarterly Financial Overview: Recovery from Pandemic Slower Than Expected, B2C Products Expected to Launch in Q4’21 $ in millions Net Sales Operating Expenses $6.0 3.5 3 $3.5 $3.8 $3.3 $3.7 2.5 $3.1 $2.9 $2.6 $2.7 $2.1 2 1.5 $2.9 $2.6 1 $2.0 $1.9 $2.1 $2.3 $2.3 $2.4 $2.3 $2.4 Q2 Q3 Q4 Q1 Q
Slide 5: Human Centric Lighting: Transforming Lighting into Wellness Technology
Human Centric Lighting (HCL): Transforming Lighting into Wellness Technology Human Digital (Wellness-Focus) (Efficiency-Focus) HCL LED 2020 Fluorescent 1995 1940 Analog (Illumination-Focus) Incandescent 1880 © Energy Focus, Inc. P5
Slide 6: HCL: Significant, Untapped Potential for Human Wellness
HCL: Significant, Untapped Potential for Human Wellness HCL: Lighting technologies that improve human physiological & psychological performances through both visual and non-visual effects Visual Benefits Non-Visual Benefits ● Task Performance ● Comfort ● Circadian Rhythm (EnFocus/Suncycle) - CRI - F
Slide 7: Adoption of LEDs Just Exceeded 25% and Accelerating
Adoption of LEDs Just Exceeded 25% and Accelerating © Energy Focus, Inc. P7
Slide 8: Smart Lighting & HCL to Emerge & Grow Rapidly
Smart Lighting & HCL to Emerge & Grow Rapidly Estimated Market Sizes From 2021-2027* *Sources: “Smart Lighting Global Forecast to 2026”, Markets & Markets; “Human Centric Lighting Forecast 2021-2027”, Global Market Insights © Energy Focus, Inc. P8
Slide 9: Building Innovations & IPs to Lead the HCL Revolution
Building Innovations & IPs to Lead the HCL Revolution Transforming LED from an “Energy Efficiency” Story to Human-Centric LED Lighting Human Centric Lighting (HCL) • Flicker-Free • Flicker-free • Primarily 10-Year Warranty • Dimming & Color Temperature • “Military-Tough” with best Tuning industry re
Slide 10: Distinguished History of Technology Innovations
Distinguished History of Technology Innovations- Three Industry Tech Awards since 2020 © Energy Focus, Inc. P10
Slide 11: Growing Portfolio of Advanced HCL Products
Growing Portfolio of Advanced HCL Products to Address Military, Commercial, & Consumer Markets • LED Products: • EnFocusTM Controls: o Proven high-quality o Lighting controls through LEDs with numerous powerline case studies o Most affordable by a o Government incentives factor of 3-6 to expand dram
Slide 12: Proven Quality Leadership & Mission-Critical Installations
Proven Quality Leadership & Mission - Critical Installations Education Healthcare U.S. Navy Quality of lighting and flicker free Environmental sustainability, Energy and maintenance savings, environment is important to quality of lighting, flicker free and improved quality of lighting for schools fo
Slide 13: EnFocus & Suncycle: Making Circadian Lighting Accessible
EnFocus™ & Suncycle™: Making Circadian Lighting Accessible for Buildings & Homes P12 7/ 24/ 2020 © Energy Focus, Inc. P13
Slide 14: Groundbreaking HCL Control Platform
Groundbreaking HCL Control Platform © Energy Focus, Inc. P14
Slide 15: Circadian Lighting Influencers
Circadian Lighting Influencers You can, for example, make your lights bluer and brighter in the morning to promote alertness and assist in waking up, and then set your lights to be redder and dimmer as the day progresses to allow melatonin production. © Energy Focus, Inc. P15
Slide 16: Circadian HCL Can Boost Health
Circadian HCL Can Boost Health Sleep: 2/3 of adults fail to obtain the recommended 8 hours of nightly sleep. Insufficient sleep is linked to: Alzheimer’s disease Diabetes Cardiovascular disease Stroke Congestive heart failure All major psychiatric conditions Weight gain Source: Why We Sleep (2017),
Slide 17: Circadian Lighting Significantly Boosts Health of Older Adults
Circadian Lighting Significantly Boosts Health of Older Adults “Since 2010, studies in patients with Alzheimer's disease have demonstrated ‘extreme success’ with circadian lighting in restoring normal sleep patterns”. - Dr. Mariana Figueiro, Lighting Research Center, Rensselaer Institute of Technolo
Slide 18: Circadian Lighting Significantly Boosts Learning Effectiveness
Circadian Lighting Significantly Boosts Learning Effectiveness “Students exposed to lighting with higher light intensity and light temperature levels had, by the end of the year, increases in performance that were 33% higher than the increases in performance of the control group.” - Human Centric Li
Slide 19: Circadian Lighting Significantly Boosts Worker Productivity
Circadian Lighting Significantly Boosts Worker Productivity “Occupancy study shows that productivity was boosted by up to 20%. Additionally, employees were 38% calmer, and 10% more focused than their colleagues in the rest of the office.” - Dr. Marcella Ucci, head of the MSc in Health, Wellbeing and
Slide 20: Bringing Circadian Lighting to Existing Buildings & Homes
Bringing Circadian Lighting to Existing Buildings & Homes for the First Time • The most sustainable • Preserving high • Much lower cost and affordable lighting power factor and to install than control solution versus • Simple retrofit low total harmonic other wired or other LED alternatives. • Netwo
Slide 21: Offering Disruptive HCL Value
™ Offering Disruptive HCL Value L* switch + integrated E* Control System w/ P*, O* Dali Control EnFocus™ color tuning fixture sensors Systems Hardware $225 $700 $1,400 $1,400 Labor (4 fixtures: removal & installation) $60 $150 $150 $150 Labor (1 switch: installation & conduit $15 $150 $150 $300 wiri
Slide 22: Benefits of HCL to Dwarf Energy Efficiency
Benefits of HCL to Dwarf Energy Efficiency: 1% Productivity Gain=100% Total Energy Cost Jones Lang Lasalle’s real estate industry rule of thumb, called the “3-30-300”, states that each year it costs a building… $3/sq.ft. $30/sq.ft. $300/sq.ft. $3 in utilities $30 in rent $300 in payroll https://www.
Slide 23: Emerging UVC Market Poised to Grow Rapidly
Emerging UVC Market Poised to Grow Rapidly UV-C Disinfection Solutions Sales 6 5 4 $5.7B 3 2 1 $ in Billions $1.3B 0 2019 2027 2019 2027 *Source: alliedmarketresearch.com UV-C Disinfection Equipment Market Outlook, December 2020 © Energy Focus, Inc. P23
Slide 24: UVC Disinfection Initial Product Portfolio
UVC Disinfection Initial Product Portfolio: Designed for 99.9%+ Disinfection Effectiveness • nUVo Tower: Free- • Autonomous UVC-254nm • Combined EnFocus™ Circadian standing & Portable Air Surface Disinfection Robot Lighting + UVC-254nm Air Disinfection • Winner of FacilitiesNet Disinfection Troffer
Slide 25: Tower - Virus-Targeted UVC Air Disinfector for Common Spaces
Tower - Virus-Targeted UVC Air Disinfector for Common Spaces • Designed to inactivate 99.9%+ coronavirus and influenza • 24-hour continuous disinfection capability • 2 air changes per hour (2 ACH) in a 500 square-foot room (4 fan speed settings to 150 CFM) • Contemporary patent-pending design with o
Slide 26: Ideal for Small Offices/Home Offices/Homes
Ideal for Small Offices/Home Offices/Homes Planned Availability: Q4 2021 © Energy Focus, Inc. P26
Slide 27: Traveler - Virus-Targeted Personal UVC Air Disinfector
Traveler - Virus-Targeted Personal UVC Air Disinfector Planned Availability: Q4 2021 • Designed to inactivate 99.9%+ bacteria, mold and viruses including influenza, coronavirus and its variants • Intercepts potentially infected air in real time • 8 air changes per hour (8 ACH) in a compact car • Con
Slide 28: Highly Effective, Independently Validated Disinfection Capability
Highly Effective, Independently Validated Disinfection Capability Organism Mold Virus Bacteria Mold Virus Bacteria Type Phi-X174 Phi-X174 Organism A. niger E. coli A. niger (COVID E. coli (COVID Name Proxy) Proxy) % Reduction 98.3% 94.1% 97.8% 99.9% 94.1% 94.3% Source: “Efficacy Test Report (Microbi
Slide 29: Award-Winning Autonomous UVC Robo-Disinfector
Award-Winning Autonomous UVC Robo- Disinfector • Designed to inactivate 99.9%+ coronaviruses and influenzas at a speed of 18 inches/second, or ~10,000 sq. ft. per hour • Additional UVC lamp on the robot’s base for floor disinfection • Safety assurance and anti-collision through LiDAR sensors and mac
Slide 30: Market Dynamics for Energy Focus
Category Creator for an Explosive & Permanent New Market Proven Disinfection Technology Rapidly Emerging Needs UVC Disinfection has been proven to MARKET Demand for UV disinfection equipment during the COVID- inactivate coronavirus 19 pandemic has increased by and influenza and DYNAMICS nearly 1,000
Slide 31: Summary Balance Sheets
Summary Balance Sheets As of As of ($ in thousands) 9/30/2021 12/31/2020 Cash $381 $1,836 Capital Structure Total current assets $12,098 $11,076 (as of September 30, 2021) Total assets $13,105 $12,397 Total current liabilities $8,573 $7,557 Total liabilities $8,603 $8,142 $4,268 Stockholders’ equity
Slide 32: Energy Focus: Key Investment Attributes
Energy Focus: Key Investment Attributes 1 2 3 4 Significant leadership & IP Proven industry Proven and vested Breakthrough, award- in the rapidly emerging innovation leader, with executive team leading winning EnFocusTM and human-centric lighting high performance LED and completing corporate Suncycl
Slide 33: Thank You!
THANK YOU! Energy Focus, Inc. James Tu, Chairman and CEO Tod A. Nestor, COO and CFO © Energy Focus, Inc. P33
Slide 34: Appendix - Adjusted EBITDA Reconciliation
APPENDIX - Adjusted EBITDA Reconciliation As of As of As of As of As of As of As of As of As of As of ($ in thousands) 6/30/19 9/30/19 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 9/30/21 Net Loss $ (2,254) $ (946) $ (1,308) $ (541) $ (4,340) $ (1,165) $ 65 $ (1,642) $ (2,473) $ (1,140)
Slide 35: Appendix - Total Availability Reconciliation
APPENDIX – Total Availability Reconciliation As of As of As of As of As of As of As of As of As of As of ($ in thousands) 6/30/19 9/30/19 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 9/30/21 Total borrowing capacity under credit facilities $ 2,006 $ 2,517 $ 2,407 $ 2,025 $ 2,566 $ 4,577