![]() 01/10/08
Presented by: Mike Bauer President / CEO Capitalizing on the Capitalizing on the LED Lighting Revolution LED Lighting Revolution Nexxus Lighting, Inc. Nexxus Lighting, Inc. Exhibit 99.1 |
![]() Safe Harbor Statement Certain statements contained in this presentation are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Reference is made to Nexxus Lightings filings under the Securities Exchange Act for factors that could cause actual results to differ materially. Nexxus Lighting undertakes no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward- looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements. |
![]() The
Opportunity The global lighting market is an estimated $85 billion industry with clearly established distribution networks and supply chains. Significant changes in light fixture designs are light source (lamp) dependent Carbon Arc Discharge 1850 Incandescent - Carbon Filament to Tungsten 1879 Arc Discharge (Mercury Vapor) 1935 Fluorescent 1936 Incandescent - Halogen 1959 High Pressure Sodium & Metal Halide 1964 Compact Fluorescent 1980 High Powered Light Emitting Diode (LED) 2000 New product development incorporates the evolving technology into lighting fixtures that eventually replace the old technology installed and set higher standards for new construction that lasts for several decades. |
![]() Why
is LED different
LEDs are truly a disruptive technology
As a result we are on the front edge of dramatic new lamp (light bulb) and lighting fixture design and product development efforts to capitalize on this new technology as it evolves into a lighting industry standard. Intellectual Property rights in the applications of this new light source in fixture development is a key element in monetizing this opportunity. |
![]() LED
The Evolution to General Illumination Invented and developed as reliable indicator and display lights back in the 1960s, the LED as a light source really picked up steam in the mid 90s
as a more efficient way to light EXIT signs. However, Red, Amber and Green LEDs were your only choice in color The advent of the Blue LED and then the application of a phosphorus dome on top of a Blue LED to produce White Light was the major break- through that has driven the last 10 years of LED chip development efforts by Philips/Lumileds, Osram, Nichia, Cree and numerous smaller LED die manufacturers The first practical White LED was produced in 1999 However, the challenge for White Light LEDs has been achieving enough Lumens per Watt Up until now the operational Lumens (Amount of Light Energy) has been around 15-25 lumens per watt of electrical power Manufacturers are now producing new chips that can produce 40-50 lumens per watt 100 Lumen per Watt packages have recently been introduced in low power packages |
![]() Moores Law for LED LED (Light Emitting Diode) Technology is evolving in a similar fashion as the computer micro-processor. Light Output (Lumens) per Watt of Energy for White LEDs is doubling about every two years. As a result, General Lighting Applications are within our reach for White LED packages for the first time. Cost and total lumen output are still a major obstacle for many applications, but numerous general lighting applications are now ripe for conversion to LED as the light source of choice. |
![]() Whats does this all mean? Over the last 10 years, numerous companies have been created to capitalize on the emerging LED lighting technology Numerous small ($2-15 million in revenue lighting) companies have been created China has become a hot bed for LED fixture development In the US, the time is similar to the lighting fixture market in the 1980s, numerous small companies are fighting to establish themselves in what is still considered a niche market The stage has been set for a roll-up of several smaller LED companies into a multi-brand, multi-product line advanced technology lighting company that has the capital resources to stand on its own, grow rapidly and emerge as a leader in advanced technology lighting |
![]() The
Vision Create a new advanced technology lighting company that links emerging solid-state LED technology with general lighting applications to provide state-of-the-art lighting fixtures and lamps to the global estimated $85 billion lighting market. Rapidly introduce new products and product lines through both strategic alliances and strategic acquisitions. |
![]() The
Platform Company was originally established in 1991 as Super Vision International, Inc. Name was changed in April 2007. Relocated Orlando Operations Facility to its new location in April 2007. Relocated Corporate headquarters to Charlotte, NC in June of 2007. Acquired Advanced Lighting Systems in Sep 2007. NASDAQ: NEXS Nexxus has been under the radar screen, but in 2008 that will change. |
![]() The Platform Nexxus Lighting, Inc. Restructured & repositioned from Super Vision International LED and Fiber Optic Lighting Technology SaVi, SuperVision, Advanced Lighting Systems and Oasis Brand Names 24 Issues Patents 6 Patents Pending Core Strengths New Dynamic and Experienced Management Team Established Sales and Distribution Network Excellent International Distributor Relationships Strong Marketing Team Broad Platform of LED and Fiber Optic products Excellent Sourcing Relationships in Asia |
![]() Strengths of Nexxus Lighting Dynamic and Experienced Management Team Mike Bauer President / CEO 19 Year Veteran of Lighting Industry GE Lighting, Cooper Lighting, Lighting Corp. Of America John Oakley CFO 16 year Veteran in Finance and Public Accounting CFO of Home Meridian International CFO of Pulaski Furniture Corporation Corporate Controller for Collins and Aikman Floorcoverings, Inc. Senior Auditor for Arthur Andersen, LLP Mike Kline General Manager SV Lighting Experienced Vice President & General Manger Operations, Sales, Marketing Experience MBA, Lean Mfg Implementation Paul Streitz Division President / GM Advanced Lighting Systems 15 year veteran of Lighting Industry Entertainment Lighting Expertise Mark Masterman Vice President Pool & Spa Lighting 34 Year Veteran of Pool & Spa Industry 8 Years with Fiberstars/EFO Richard Heiner Director of Marketing 10 Year Veteran of Lighting Industry Talented Print, Tradeshow and Web Development Team Donna Daniels Director of Human Resources 15 Year Veteran in Human Resources HR manager at Belk, Inc. |
![]() Strengths of Nexxus Lighting Existing Sales and Distribution Network in Place 70 Commercial Lighting Agencies selling through all major electrical distributors in U.S. with over 1500 feet on the street Senior Management Relationships with all major U.S. electrical distributor chains and buying groups Strong Senior Management Relationships with all major lighting fixture manufacturers for OEM sales Strong International Distributor Network already in place Bi-lingual International Sales Team in place China, Mexico, Spain, Russia, Japan, Italy, Middle-East, Australia, New Zealand, Poland, Romania, Greece are all strong markets for Nexxus Lighting. |
![]() Marketing Brand Management Experience Web Site and Web Development First Class Literature and Specification Information Packaging and POP Expertise Trade Show Management, Lead Generation and Follow-Up Strengths of Nexxus Lighting |
![]() Overseas Sourcing Extremely strong vendor relationships with multiple contract manufacturers China, Taiwan, Japan, Korea Have been sourcing from Asia since 1999 Understand international procurement process, importation requirements and Letters of Credit / Terms negotiations Strengths of Nexxus Lighting |
![]() Photo/Image Slides |
![]() Nexxus Lighting Ready for Take Off Name Change and vision announced in January Official in April 2007 New stock Symbol NEXS April 2007 Relocated SV Lighting in April 2007 to new facility Relocated corporate headquarters in June 2007 Acquired Advanced Lighting Systems in Sep. 2007 The company is now positioned for growth through product development and additional acquisitions |
![]() Nexxus means Link or Connection Point Our vision is to link advanced technology with general lighting applications to develop state-of-the- art, energy efficient lighting fixtures for the 21 st century. Each company acquired will operate as a wholly- owned subsidiary of Nexxus Lighting, Inc. Centralize/consolidate back-office functions & reduce costs Finance, Human Resources, Corp. Marketing, R&D Optimize International Sales network for all brands Market and Sell as unique brands in North America |
![]() Company Structure - Clarity Umbrella company for all Nexxus Lighting Business Units (Charlotte, NC) Corp Finance, Corp. IT, Corp HR, Corp Marketing & International Sales Nexxus Lighting Companies & Division |
![]() Opportunities for Nexxus Lighting White Light and RGB LED Market will provide opportunities for strong growth Polymer, New O-Led and Quantum Dot technologies are emerging as well Fiber Optic Market through the introduction of LED light sources Multi-Generation New Product Development Plan is key to success Leverage global lighting relationships for exponential growth |
![]() Nexxus Lighting Three-Fold Strategy Strategy 1 Strategically acquire existing commercial/architectural and residential LED and advance fiber optic lighting companies and consolidate administrative and operational costs, optimize R&D and create a product and revenue platform of significant size to capitalize on the new market potential for white light LED lighting fixtures. |
![]() Nexxus Lighting Three-Fold Strategy Strategy 2 Expand specific areas of market strength of the consolidated company to achieve leadership positions in those markets and introduce new products that drive dynamic growth Pool & Spa Lighting Systems Entertainment Lighting Products LED Light Sources to drive Fiber Optic Revenue White Light LED General Illumination Lamps & Fixtures
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![]() Nexxus Lighting Three-Fold Strategy Strategy 3 Operational Efficiency Improvements Lean Manufacturing Vendor Management Supply Chain Improvement Inventory Turns Improvement |
![]() The Perfect Storm for LED Lighting is upon us
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![]() Headlines almost everyday
Green is the word of the day Global Environmental Concern Alternative Energy Energy Savings $100 a Barrel Oil 2007 Energy Legislation |
![]() What about CFL Lamps? CFL lamps contain mercury and are required to be recycled The reality is that they end up in the garbage and ultimately
the public landfills Potential to pollute ground water Not a green solution |
![]() Nexxus Lighting 2008 We are in growth mode in 2008 Currently evaluating potential strategic acquisitions for 2008 Commercial product line expansion
Four new Architectural White Light Products All being rolled out in Q1 New LED Light Source for Fiber Optics Q1 New Pool & Spa Leadership In Place Already seeing results Market Share Gain Capitalize on OEM Opportunities ALS Entertainment Product Line Expansion CycLED product line and software International rollout of ALS products Focused on gross margin improvement through pricing and cost reduction synergies Driving market and brand awareness through expanded tradeshow schedule and enhanced sales agency network |
![]() Outlook for 2008 ($Millions) YTD Q3 07 2008 E Revenue $ 7.6 $ 16.0 - 18.0 Gross Profit $ 2.2 $ 6.0 - 7.2 GM 29% 37 - 40% Op. Income/(Loss) $ (1.9) $ (.5) - .1 Non-Op Expenses $ .3 $ .1 - .2 Net Income/(Loss) $ (1.6) $ (.4) - .3 Evaluating potential acquisitions is an ongoing process |
![]() Notes / Questions |