capture the led revolution - · pdf filethis prospective information does not in any way ......

Capture the

LED Revolution

JUNE 2014

INVESTOR PRESENTATION

2

This document was put together by Lucibel S.A. (the "Company") for the sole purpose of making thepresentation below (the "Presentation").

The information that appears herein is confidential and may not, under any circumstances, be disclosed,reproduced or distributed, directly or indirectly, to any other person, or published, in whole or in part, forany purpose whatsoever, without the consent of the Company. Some of this information is prospective innature and may include forecasts or profit objectives. This prospective information does not in any wayreflect the current profit or financial performance of the Company or the sector on which it is currentlyoperating.

This Presentation is not aimed at providing a comprehensive analysis of the financial situation,commercial standing or prospects of the Company. The reader should not use it for this purpose.

This Presentation and the information it contains do not constitute a public offering, an offer, a solicitationor any kind of invitation to sell, subscribe or purchase any securities of the Company, nor an applicationfor registration of the shares of the Company, in the United States or in any other country. This documentshall not be used as the basis for any contract, commitment or investment decision.

The distribution of this Presentation in certain countries may be subject to the laws and regulations inforce. Natural persons present in these countries and in which this Presentation is disseminated,published or distributed, should obtain information about such restrictions and comply with them.

DISCLAIMER

1. The digital light revolution offers huge opportunities

2. Our mission: to provide innovation-driven LED solutions creating high value

3. Technological build-up in a fragmented luminaire market

4. Financials & perspectives: a fast-growing company

5. Private placement terms & public listing on Alternext Paris

3

AGENDA

4

OUR VISION

LED IS THE BIGGEST INVENTION SINCE THE INTERNET’S BIRTH AND A POWERFUL DEVELOPMENT LEVER FOR HUMANITY

5

FRENCH CLEANTECH COMPANY which designs and markets LIGHTING SOLUTIONS & SERVICES taking advantage of the LED REVOLUTION

Provide INNOVATION-DRIVEN solutions & services leveraging all the

potential of the LED technology to create HIGH VALUE for demanding

PROFESSIONAL CUSTOMERS

� Develop segment-specific solutions with strong R&D capabilities

� Bring them to market with dedicated customer-centric channels

� Consolidate market positions in attractive segments through our

BUILD-UP STRATEGY

LUCIBEL

IN A NUTSHELL

WHO

WE ARE

OUR

MISSION

OUR

STRATEGY

6

STRATEGY & OPERATIONS

Francois-Xavier OLIVEAU

20 years of management and business

development in manufacturing & energy• Management of business units & business development

• Schneider Electric, Air Liquide, Boston Consulting Group

• MBA Harvard, Centrale Paris, Sciences Po Paris

FOUNDER & CEO Frédéric GRANOTIER A serial & successful entrepreneur• Co-founder and COO of POWEO, a French energy operator (2009 sales ~ €600m)

• Co-founder of a TV channel (Vivolta) and of the first peer-to-peer lending player in France (Prêt d’Union)

• CFO then COO of Selftrade, on-line broker

• Business School (ESC Tours), CPA

TECHNOLOGY Jean-Laurent HOUOT

15 years of experience in LED

technology, a true innovator in lighting• R&D and operations in electronics & IT businesses

• Inventor & designer of LED lighting solutions

• Founder of 2 companies specialized in LED lighting

FINANCE Gilles AUBAGNAC

20 years of experience gained

in fast-growing companies• CFO in IT & media companies / Netgem, Video Futur

• Senior Financial Auditor / E&Y

• Business School (ESG Paris)

SALES & MARKETING Thierry BODIOT

20 years of experience in international

sales & market development • Founder & President of Ecotemis and Intenciti (energy

efficiency), CEO of HelioSphera, manager of global

businesses at Royal Dutch Shell (EU, US)

• IMD Lausanne, Sup’Aero Toulouse

AN EXPERIENCED TEAM

TO DRIVE GROWTH

220 Employees (June 2014)

22 patents registered or filed

(+20 in preparation)

Sales in 28 countries

5 acquisitions completed since 2011

7

CORPORATE

FACT SHEET

Operations started in 2009

FY2013 total sales € 21.5m

FY2013 sales growth +239%

o/w organic growth +87%

International subsidiaries 7

Nominatedin the 2013’

8

Thanks to critical advantages, LED will take the lion’s share of the lighting market

LESS ENERGY

LONGER LIFETIME

BETTER QUALITY

LED: DISRUPTIVE AND

MARKET-LEADING TECHNOLOGY

5

30

51 50

42

32

2011 2016 2020

Traditional

LED

CAGR

+30%p.a.

(Source: McKinsey, 2012) (*) i.e. excluding automotive lightingand TV backlighting

Global general lighting market in €bn (*)

1990 2000 2014

PHOTOGRAPHY

LIGTHING

2000 2014 2020

9

BEYOND LED, A REVOLUTION OCCURS

LIGHT GOES DIGITAL

Traditional lighting sources become LED sources, no significant change occurs in luminaires’ design

The LED lighting source is integrated into the luminaire, those two objects becoming only one

� Integration into building materials

� Intelligent and omnipresent

� Connected objects (LiFi)

� Health and well-being, (known as ‘human-centric lighting’)

� Lighting as a service

10

NEW OPPORTUNITIES

AND BUSINESS MODELS

Replacement

of sources

(2009-2017)

Sources-luminaires

convergence

(2011-2018)

Pervasive and

smart lighting

(2014+)

New uses

(Coming Soon)

LED materials & chips

LED modules & sources

LED LuminairesSolutions & services

LED chip makers

Historical lighting source players

Consumer electronics giants

Luminaire specialists

LED lightingpure-players

Nichia, Seoul SC

Cree

Osram

Lucibel, Lumenpulse, Revolution Ltg

Zumtobel, Acuity…

Samsung, Toshiba, LG, Panasonic

General Electric

Philips

Core business

Strategic development

11

VALUE CHAIN

GOES DOWNSTREAM

…but also Trilux,

Fagerhult, Juno…

HIGHEST

VALUE






12

AGENDA

13

WE DO NOT SELL PRODUCTS

WE PROVIDE SOLUTIONS

for Audi customers

coming up to

pick their cars

Audi, France

for shops thanks to better

product enhancement

and store contrast

+25% sales

Carnet de Vol, France

Sky view for the children

hospital’s waiting room

Draguignan Hospital,

France

TOP LINE

BOOSTER

SHOPPING

EXPERIENCEWELL-BEING

14

CASE STUDY #1

RETAIL STORE LIGHTING

Solution & benefits� Dedicated luminaire driving light

precisely on the shelves

� 2.5 more light on the shelves

� -60% power consumption

� Customers say they prefer the atmosphere

Customer needs� Enhance products in shelves to

drive sales

� Optimize lighting distribution and reduce power spend

� Improve customer experience

15

CASE STUDY #2

OFFICE / HEALTH CARE

Solution & benefits� Full retrofit with LED Powerlights

� Low luminance (recessed fit) to prevent glare

� Cool white to create a relaxing daylight feeling

Customer needs� Lighting solution to replace

6,000 CFL lamps

� Reduce the energy consumption and maintenance costs

� Improve light quality and well-being of patients & medical staff

ROI = 2 years

Total Lucibel Sales

~€400k (2012-2013)

� Direct sales to large accounts � Partnerships with global players

16

MARKETING

TARGETED APPROACH

Govt.

� Direct and indirect sales� Acquisition of key players with a

strong vertical expertise

Commercial&

Hospitality

� High LED added value thanks to impact on sales

� Specific lighting concept & solutions

� Complex & multi-players projects

� Need for partial customisation

Office & Healthcare

� Maintenance and financing are key issues

� Need for partial customisation

� Direct sales entity (JV) selling lighting as a service

SEGMENT SPECIFICS GO-TO-MARKET

HQ & domestic sales

International sales subsidiaries

Main sales areas

- EMEA

- APAC

CHINA

HONG KONG

SPAIN

BELGIUM

SWITZERLAND

DUBAÏ

FRANCE

MOROCCO

17

ALREADY SIGNIFICANT

INTERNATIONAL SALES COVERAGE

Sales in 28 countries through 7 international sales subsidiaries

18

R&D / CORE ASSET TO PROVIDE

CLIENT-FOCUSED SOLUTIONS

� Internal R&D resources = 15 people on 3 different sites

� Partnerships in place or under discussion with public bodies: Laplace (CNRS) & CEA Liten in France

Focus on ‘Product Development Process’ to bring innovation to end-users as quickly as possible

Easy installation EasyFix technology

Surface temperature < 45°C Venturi ActiveCore technology

Fascinating shine 10-source dynamic lighting system

Patent # 13/54329 - 13/55072 Patent # 12/60236 Patent # 12/53046

+ 20 in preparation

22 PATENTS

registered

or filed

19

INTEGRATING NEW TECHNO BRICKS

INTO OUR SOLUTIONS

LiFi

Health &

Well-being

CONCEPT APPLICATIONS

� LiFi (Light Fidelity) = data transmission by light high frequency on-off cycles

� Available: precise indoor positioning

� Coming up: high bandwithsecure data transmission

� Ability to reconstitute the whole natural light spectrum thanks to LED

� Ability to use specific wavelength for healing purposes

� Retail: couponing, merchandising, data analysis

� Office: secure Internet data transmission

� Museums: enriched visitor experience

� Office: increased comfort and productivity

� Education: better learning and retention

� Health: comfort, healing and curing

Carrefour

pilot Q4

Available

OFFSHORING (China)

Flextronics is in charge of high-runnerproducts and standard base units

Lucibel keeps the relationships withstrategic suppliers and selects localmanufacturers for complementary rangeproducts

NEXTSHORING (Europe)

Assembly sites close to final demand tomanage late differentiation or small series

� Procédés Hallier’s workshop near Paris

� Lucibel’s plant – Barentin: set up of alate stage assembly plant (deal withSchneider Electric)

�

Flextronics + Lucibel (Shenzhen office)

Procédés Hallier’sworkshop

+ new site in Normandy (op. 2014)

20

SUPPLY CHAIN

FLEXIBILITY AND PROXIMITY

21

KEY SUCCESS FACTORS

VS. COMPETITION

TECHNOL.

KNOW-HOW

SEGMENT

EXPERTISE

CORPORATE

AGILITY

LED specifics and integration know-how� Ability to integrate LED

and forthcoming SSL technologies (OLED…)

� Close connexion with LED chip manufacturers

� Anticipation of new applications/uses

Customer proximity and market access� Clear understanding of

customer expectations

� Segment-focused offerings and customisation options

� Footprint in specialised distribution channels, direct sales force

Moving faster than peers in an ever-changing market� Short product development

cycles for fast time-to-market

� Ability to develop customised solutions in a few weeks

� Fast execution in M&A deals

Combination by Lucibel of these 3 key success factors creates strong barrier to entry






22

AGENDA

23

TARGETED ACQUISITIONS FOR A

TECHNOLOGICAL BUILD-UP

Traditional lighting players with expertise andfootprint on vertical segments with high potential forLED conversion� Ex: Cordel, Procédés Hallier

Areas selected for their sales potential� Ex: ElektroLED, Diligent HK

Complementary technological bricks

Leveraging our core skill:our ability to design and

integrate LED solutions

Lucibel targets in priority entrepreneurial and profitable companies focusedon attractive segments, geographies and/or technologies

SEGMENTS

GEOGR.

TECHNOL.

24

French leader in shop-lighting solutions� Specific solutions (products + services) for retail shops

30,000 points of sales already equipped

� Main customers: Casino, H&M, Zara, C&A…

Fast integration process� Acquisition effective on March 1st, 2013

� Team and systems integration completed in 6 months

� 2013 sales of €10.8m (12 months)

Dual business development potential� LED reached ~25 % of Cordel sales in 2013 vs. 8% in 2012

� International sales to be derived from existing Cordel’slarge accounts and group international sales branches (Ex: MAJE Group in China)

BUILD-UP CASE STUDY #1

CORDEL

25

French leader in Museum Lighting� Supplier of 9 French museums out of 10

(Louvre, Orsay, Beaubourg…)

� Successful diversification in luxury shops (Dior, Givenchy, Vuitton…)

High margins and qualitative industrial tool� 2013 sales = €2.5m with EBIT margin > 20 %

� Technical skills & flexible production tool close to Paris

Growth synergies already under way� New targets : art galleries, antique dealers, luxury hotels…

� Workshop used for prototyping & small series with high technical specifications

� Joint-projects already in process in France and abroad (Ex: the Louvre Abu Dhabi)

BUILD-UP CASE STUDY #2

PROCEDES HALLIER






26

AGENDA

6,7

31%

9,7

45%

5,2

24%

27

CONSOLIDATED REVENUES

FAST-GROWING SALES PATTERN

Dual-growth strategy real take-off in 2013

International sales = 45% in 2013excluding Cordel acquisition

International France(Lucibel)

France (Cordel)

0,8

3,6

6,3

21,5

2010 2011 2012 2013

Cordel

Lucibel

Group Revenues ( i n €m)

CAGR = 107%

Sales growth +239% (YoY)o/w organic growth +87%

2013 Group Revenues breakdown (in €m)

25,1

2013

pro-forma

28

P&L ACCOUNT

INVESTING FOR GROWTH

Gross Margin rate = 38.8% of revenues in line with industry level

Sales & Marketing efforts, industrial transition and strengthening of operations & structure weighed on

profitability in 2013

R&D expenses = €1.0m in 2013 (4.7% of revenues) of which €0.6m capitalised

Consolidated P&L Account (1)

(in €k)2013 2012

Revenues 21 542 6 357

COGS (13 192) (4 328)

Gross Margin 8 350 2 029

In % of Rev. 38.8% 31.9%

Sales & Marketing (2) (9 774) (5 328)

G&A (3) (4 879) (3 091)

Current Operating Income (Loss) (6 303) (6 390)

_o/w EBITDA (4 716) (5 422)

Other operating profits & losses (391) (266)

EBIT (6 694) (6 656)

Financial Result (601) (30)

Income Tax 55 3

Minority Interests 7 3

Net Result - Group Share (7 233) (6 680)

(1) based on audited IFRS accounts and internal management data

(2) including Operations & Cust. Serv. for €2.2m (2013) and €1.5m (2012)

(3) including R&D costs for €0.5m (2013) and €0.4m (2012)

29

BALANCE SHEET

SOUND FINANCIAL POSITION

Consolidated Balance Sheet (in €K, IFRS)

Dec 2013 Dec 2012

Non-Current Assets 12 101 950

_o/w Goodwill 9 495 48

_o/w Intangible Assets 2 169 511

Current Assets 22 358 5 499

_o/w Inventories 4 070 1 497

_o/w Receivables 7 453 1 650

_o/w Cash & Cash Equivalent 9 306 1 349

Total Assets 34 459 6 449

Net Equity 4 486 (314)

Non-Current Liabilities 15 965 1 647

_o/w Convertible Bond 9 125 -

_o/w Non-Current Financial Debts 5 491 1 101

Current Liabilities 14 008 5 116

_o/w Current Financial Debts 3 254 779

_o/w Payables 3 694 1 864

Total Liabilities 34 459 6 449

Net Equity of €4.5m� Shares issues completed in FY’2013 for a

total amount of €13.5m, o/w €4.3m in partial payment of completed acquisitions (Cordel, Procédés Hallier)

€9.1m bond loan which may be converted upon IPO at listing price subscribed in 2013 by institutional shareholders (Aster Capital, CM-CIC) and Bpifrance

Gross cash position of 9.3m at 2013-end� Adjusted net cash position of €0.6m

(i.e. excluding convertible bonds)

30

6,3

25,1

200,0

2012 2013 2014 2015 2016 2017

AMBITIONS

4-YEAR PLAN TO REACH €200M

Sales ambitions rely on dual-growth strategy� Organic growth based on

• targeted markets’ intrinsic growth

• differentiated offerings and direct / indirect sales

network extension, notably on the international scale

� Acquisitions with our build-up strategy in the European luminaire market

Revenue growth to drive profitability� Largely variable cost structure

� Fixed costs to be stabilised after the current investment and structuration period

� Strict acquisition financial policy should contribute to value creation through LED conversion of traditional luminaire playersBreakeven targeted

in 2015 (EBITDA)

Group Revenues

( in €m)

pro-forma






31

AGENDA

32

PRIVATE PLACEMENT

FUEL FOR GROWTH

Finance our build-up strategy� Cash portion of

anticipated deals

� Share deals made easier

Extend our innovation capabilities� Engineer-grade

recruitment

� R&D laboratory equipment

� Complementary to public subsidies (Bpifrance)

Support the sales network extension � Sales force recruitment,

both in France and abroad

� Sales channels animation

� Working capital requirement financing

40% *

ORGANIC

GROWTH

45% *

ACQUISITIONS

15% *

R&D

EFFORT

* Indicative breakdown

33

PRIVATE PLACEMENT

MAIN TERMS & CONDITIONS

Deal structure Private Placement mainly with domestic and foreign

institutional investors

Indicativeprice range

€ 13.50 – 15.00 per share (final issuance price to be set

by a book building procedure)

Number of sharesto be issued

Issuance of 1 403 509 new shares assuming a mid-range

issuance price (this number may be increased subject to final

demand)

Gross proceeds € 20.0m assuming a mid-range issuance price

Lock-up agreements � Management: 180 days

� Main shareholders: 180 days

� Convertible bondholders (bonds to be converted on share

admission on Alternext): 180 days

26%

8%

7%

3%

56%

21%

7%

5%

3%46%

18%

Etoile Finance & F Granotier

Board Members, Managers

& Employees

Aster Capital

CM-CIC Capital Innovation

& Sudinnova

Private Individuals

Private Placement

34

PRIVATE PLACEMENT

COMPANY OWNERSHIP

Post-Money

Assuming the issuance of 1 403 509 newly-created shares, i.e. a total of 7 729 339 outstanding shares post-money on a non-diluted basis

Pre-Money

Based on 6 325 830 outstanding shares on a non-diluted basis

Free float64%

35

DEAL CALENDAR AND

LISTING ON ALTERNEXT

24 June 2014 Opening of the Private Placement

8 July 2014 SFAF Meeting in Paris

9 July 2014 Closing of the Private Placement

10 July 2014 Final setting of price and number of new shares to be issued

15 July 2014 Settlement and delivery of new shares

16 July 2014 Admission on Alternext Paris of all existing or newly-created

shares and start of trading

Listing Sponsor Book Runner

36

WITH LUCIBEL,

CAPTURE THE LED REVOLUTION

Pure LED-player

Truly innovative company (product & marketing)

Distinctive ‘segment-focused’ market positioning

Dual-growth (organic & acquisitions) strategy to grow faster

than a fast-growing market

Agile organisation and experienced management to drive hyper-growth

1

3

2

4

5

capture the led revolution - · pdf filethis prospective information does not in any way ......

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