Exhibit 99.1
Exhibit 99.1
Strictly Confidential- Do Not Duplicate
CONNECTING ADVANCED TECHNOLOGY WITH LIGHT NEXXUS LIGHTING
NEXXUSTM LIGHTING
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CONNECTING ADVANCED TECHNOLOGY WITH LIGHT NEXXUS LIGHTING
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 Lighting’s 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.
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CONNECTING ADVANCED TECHNOLOGY WITH LIGHT NEXXUS LIGHTING
NEXXUSTM LIGHTING
Michael Bauer
President and Chief Executive Officer
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Company Overview
A leading provider of advanced lighting solutions, including LED lighting and fiber optic lighting
Corporate Facts
Headquarters in Charlotte, NC
70 employees
LTM revenue of $13.3 million (as of 9/30/08) - $3.9 Q3 2008
26 issued, 12 pending patents
Distribution:
– North America:
100 commercial lighting agencies
– International:
42 distributors serving 35 countries
Focus
Markets
Commercial / Architectural
Entertainment
Pool and spa lighting
Technology
High performance color lighting
Specialty white light
High volume white light
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Our Vision
Through advanced technology, aggressive new product development and strategic acquisitions - create a leading, multi-brand, advanced lighting company that offers a comprehensive lighting product platform to serve the global lighting market
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CONNECTING ADVANCED TECHNOLOGY WITH LIGHT NEXXUS LIGHTING
Our History
Over the past 24 months, Nexxus Lighting has positioned itself to become a global leader in the advanced lighting market
Jan 2007 Nexxus Lighting Vision & Strategy Announced
Apr 2007 Moved to new 34,000 sq. ft operating facility in Orlando
Apr 2007 SuperVision becomes Nexxus Lighting, Inc. (“NEXS”)
May 2007 John Oakley joins Nexxus as CFO
Jun 2007 HQ moved to Charlotte, NC
Sep 2007 Advanced Lighting Systems acquired
Apr 2008 Lumificient acquired
Dec 2008 Array–breakthrough white-light LED technology
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CONNECTING ADVANCED TECHNOLOGY WITH LIGHT
Investment Highlights
Growing demand for LED lighting
– Expected to transform the $100B global lighting industry
Recent acquisitions have brought new technology and products
– With launch of the Array product line - anticipate growth
Energy efficient / environmentally conscious lighting solutions
– Robust portfolio of color-changing lighting solutions
– Highly efficient white light LED products
Breadth of advanced lighting solutions
– One of the industry’s broadest lines of advanced lighting solutions
Proprietary technology and intellectual property
– 26 issued and 12 pending patents
Experienced management team
– Demonstrated the ability to drive organic growth and pursue and integrate strategic acquisitions
The combination of our robust technology, broad product line, extensive engineering and manufacturing know-how, and intimate knowledge of our target markets is highly valued by customers and is key to our ongoing success
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Our Markets
We are organized by division to drive adoption of advanced lighting solutions across a number of end-markets
ADVANCED LIGHTING SYSTEMS A NEXXUS LIGHTING COMPANY array lighting LUMificientTM A Nexxus Lighting Company SV LIGHTING a Nexxus Lighting Company NEXXUS LIGHTING POOL & SPA LIGHTING DIVISION
Commercial / Architectural
Entertainment
Pool and Spa
White & RGB LED LED Light Bulbs White light LED General illumination Water feature LED
DMX Control Systems Neon replacements LED systems Fiber Optic
Fiber optic lighting Channel letters White light
Displays Fiber optic lighting
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Representative Applications / Installations
verizon wireless
The Wireless Network Premium Retailer
KENNEDY SPACE CENTER VISITOR COMPLEX
Cape Canaveral, Florida
RESIDENTIAL POOL
Singapore
VERIZON WIRELESS
Minneapolis, Minnesota
ELEMENTS BUILDING AND 7STONES SPA
Corvallis, Oregon
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Lighting Industry
Global Lighting Market
2006: $102 billion
$81 billion
$21 billion
Lamps Fixtures
2011 Est.: $132 billion
$107 billion
$25 billion
Source: Freedonia Group
Lighting Markets
Gen. Illumination Sign Lighting Entertainment Lighting Pool & Spa Lighting
Global
$102B $3B $2B $200M
U.S.A.
$14B $600M $500M $80M
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Target Market
LED Market
CAGR 2007 to 2012: LED Other – 11.8% LED Lighting – 35.5%
8,000
7,000
6,000 2007-2012 CAGR=35.5%
5,000
$MUSD 4,000
3,000
2,000 2007-2012 CAGR=11.8%
1,000
0
2006 2007 2008 2009 2010 2011 2012
Other Lighting
Source: databeans, Inc.
Light Bulb Installed Base
US Commercial / Industrial
– 82.5 mm reflector lamps
– 17.5 mm halogen par lamps
– 39.7 mm low voltage halogen
US Residential Lighting
– Over 262.5 mm incandescent reflector lamps / light bulbs
Source: U.S. Dept. of Energy 2002.
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Key Industry Trends
Product innovation / technology advancements driving demand
Conservation efforts and regulatory influence
– New Presidential administration focus on energy efficiency & alternative energy / green technology
– Spurring market adoption of Energy Efficient Lighting
Opportunities exist across a number of markets
– Commercial/Architectural, Entertainment and Pool and Spa
LED technology holds the most promise for complete relighting transformation
– Advancements in LED performance
– Unique capabilities of LEDs broaden applications
– Lower maintenance costs
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Key Benefits that Differentiate LEDs
Performance Advantage
Light Type
Lumens / Watt Color Rendering Index Expected Life (hrs)
Tungsten incandescent
8-15 100 1k
Tungsten halogen
16-22 100 3k
White LED (cool white)
100+ 70-75 50k
White LED (warm white)
85+ >90 50k
T12 florescent tubes
46-75 75-85 15k
T8 florescent tubes
58-89 75-85 30k
Metal halide
80-100 70 5-20k
High-pressure sodium
57-125 22 16-24k
Low-pressure sodium
68-173 5 16-18k
Long life source
– LEDs can achieve an average rated life span of 50,000+ hours
– Reduced maintenance costs
Solid state device with digital capabilities Rugged / robust design – highly durable Compact / small point source
– Smaller / thinner – less obtrusive fixture design possibilities
Does not utilize hazardous materials such as mercury
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Net effect…and how to capitalize
LED’s can save over 80% on energy vs. conventional light sources
Lighting consumes over 20% of the electrical energy in the United States
Cascade effect on Energy: Conventional Lighting adds HVAC loads in commercial and industrial buildings…increasing energy consumption
December 2007 U.S. energy bill specifies that beginning in 2012, all new bulbs must use 25% to 30% less energy for the same light output as today’s incandescent bulbs
With focus on energy savings, declining component costs, higher performance metrics and environmental concerns and regulatory influence, LED-based lighting has a significant opportunity to penetrate the general illumination market
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LED vs. Alternative Light Sources
Nexxus Lighting has eclipsed competition and leaped to front of the technology curve
Luminous Efficiency (lumens / watt)
200 150 100 50 0
NEXXUS LIGHTING Patent Pending Selective Heat Sink Technology
LED
NEXXUS R&D Estimate 120 LPW by 2011
White LED
Fluorescent
Competitive best in breed bench mark 2008
IR Halogen
Halogen
Incandescent
1920 1940 1960 1980 2000 2020
Source: Lumileds & published data of competitive manufacturers
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Lumificient Acquisition
Closed May 2008
Lumificient Corporation is a leading designer and manufacturer of solid state lighting/LED illumination solutions
Key markets addressed:
– Sign and display industry
– Commercial and residential applications
2007 revenues of $2.2mm; Q3 2008 revenues of $1.3mm
– Proforma Revenue Increase YTD over 2007
– Accretive Acquisition YTD
The acquisition provided Nexxus:
– Additional technology and patents
– Enhanced R&D capabilities Array – Selective Heat Sink Technology
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Addressing and Resolving LED Challenges
We have developed a unique approach that will accelerate market adoption of LED technology for the general illumination market
LED Challenges
LEDs are not a “cool” source and require proper thermal management
“Real World” efficacy has been 40 to 60 lumens per watt
Focus has been on high power LED clusters to achieve higher light (lumen) output fixtures
High power LEDs and manufacturing techniques have been cost prohibitive
Nexxus Approach
Low current / low power dies are the solution
Based on patent pending Selective Heat Sink we have achieved up to 95 lumens per watt
Low current / low power dies are the solution
Array based on cost effective LEDs and automated manufacturing processes
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arrayTM lighting
Quality + Sustainability.
Introducing Array Lighting, the industry’s first 95+ Lumens per Watt LED Lamp Line
Array PAR30
8.0 Watt or 6.0 Watt
Array MR16
3.0 Watt
Array GU10
3.0 Watt
Array PAR16
3.0 Watt
Array G4
1.2 Watt
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Application of Selective Heat SinkTM Patent Pending Technology
By using the patent pending Selective Heat SinkTM (SHS) method and a large ArrayTM of low current – high efficacy LED’s we are able to achieve unmatched performance in a much smaller package.
STRICTLY CONFIDENTIAL
WORLDWIDE PATENTS PENDING
Competitive Light Engine and Heat Sink
Array Par 30 Light Engine and Heat Sink
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array lighting
Industry Firsts
World’s first 95 Lumen per Watt LED Lamp/Light Bulb
30% More Lumens per Watt than competitive products
75% Maintained vs. Initial Lumens at 50,000 Hours
Lightest weight LED lamp line in the industry
– No large, clunky aluminum heat sinks, fins or housing
Automated lamp manufacturing
– No Hand Soldering / Screws
All Lamp types dimmable on Standard Commercial Dimmers
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array lighting
Unlike CFL’s – Array Lamps are truly “Green”
“Green” means not only energy efficient, but that the product itself does not pollute our planet.
– 80% Energy Savings vs. Incandescent
– No Mercury, No Lead – RoHS Compliant
– Minimal Metal Content
– Recycled Plastic utilized for housing
– Recycled packaging Materials
A lot of people are talking “green”, Array lives it!
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Less Than One Year ROI
PAR30 Lamp Comparison
YEAR ONE
$32.00
$32.00
$52.56
50W Incandescent PAR30
SAVINGS
$22.26
$8.00
$79.99
6W Array PAR30
$6.30
YEAR FIVE
$144.00
$144.00
$262.80
50W Incandescent PAR30
5 YEAR LIFE CYCLE SAVINGS
$431.30
$79.95
6W Array PAR30
$8.00
$31.53
Savings
Labor Cost
Lamp Cost
Energy Cost
Lamps on 24 hours a day year round
Using $8 maintenance per re-lamp and energy costs of $.12/kWh
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Reduce Your Carbon Footprint
Yearly Kilowatt Hour Usage and CO2 Emissions
700
600
500
400
300
200
100
0
50W Incandescent PAR30
16W CFL PAR30
6W Array PAR30
A traditional 50 watt incandescent PAR30 uses 438 kWh which creates 675 lbs. of carbon dioxide emissions per year. While a 16W CFL PAR30 uses 140 kWh per year and creates 216 lbs. of CO2. Our Array LED 6W lamp uses only 52.56 kWh and creates only 81 lbs. of CO2 in one year.
Kilowatt Hours (kWh)
CO2 Emissions (lbs.)
1.54 lbs of CO2 is generated from 1kWh (EPA 2008)
Lamps on 24 hours a day year round
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Reduce Mercury vs. CFL
Mercury Emissions (mg) in One Year
6
5
4
3
2
1
0
50W Incandescent PAR30
16W CFL PAR30
6W Array PAR30
48.6 percent of all energy in the United States is generated from coal burning power plants. Power plant emissions contain mercury which is released once the coal is burned. CFL’s on average contain 4 mg of mercury which has to be disposed by land filling. If a CFL is disposed of improperly the 4 mg contained within the lamp can released directly into the ecosystem.
Improper Disposal
Landfilling
Power Plant Emissions
.012 mg mercury is generated from 1 kWh (DOE 2008)
Lamps on 24 hours a day year round
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Leading Technology and IP Portfolio
Focus on commercializing IP into superior solid-state lighting systems and controls
– 26 issued patents
– 12 patents pending
Selective Heat SinkTM (SHS) method and a large Array of low current / high efficacy LEDs
– Enabling the achievement of unmatched performance in a much smaller package
LED and fiber optic trade secrets
– Array die and phosphor package design
– Line voltage and dimming control programming
– Assembly methodology
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CONNECTING ADVANCED TECHNOLOGY WITH LIGHT NEXXUS LIGHTING
Broad, Innovative Product Portfolio
Division
ADVANCED LIGHTING SYSTEMS A Nexxus Lighting Company
array lighting
LUMificient A Nexxus Lighting Company
NEXXUS LIGHTING Pool & Spa Lighting Division
SV Lighting a Nexxus Lighting Company
Indicates new product introduction
Product Example
Product Name
LiveLEDTM
eLUMTM
MegaGlowTM
3M
RadiaLyteTM
MegaLyteTM
FocaLyteTM
Array LED MR16
Array LED PAR16
Array LED PAR30
Array LED G4
Hyperion R-Lite
Lumeon 360
OasisTM
Galaxy Lights
Savi Note & Melody
SAVITM Architectural White LEDs
SAVITM RGB and Color LED Systems
Super Vision Fiber Optics
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Global Sales and Distribution
Over 100 commercial lighting agencies selling through all major electrical distributors in U.S. and Canada
– Estimated 1,500 selling “feet on the street”
Strong senior management relationships
– All major U.S. electrical distributor chains and buying groups
– All major lighting fixture manufacturers for OEM sales
Strong International Distributor Network
– 42 distributors serving 35 countries
– China, Mexico, Spain, Russia, Japan, United Kingdom, Middle-East, Australia, New Zealand and Greece are all strong markets
– Bi-lingual international sales team
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Nexxus Growth Strategy
Through advanced technology, new product innovation and strategic acquisitions, we will continue to enhance our position as a leading, multi-brand, lighting company
Rapidly ramp new Array Lighting
– Broad LED light bulb product offering to the global commercial / general illumination market.
Expand white light LED product portfolio
– Continued R&D and new product development of Selective Heat Sink technology
Capitalize on the opportunities in our target markets
– Industry conversions to LED lighting systems
Consolidation and integration of strategic acquisitions
– Leverage expanded relationships / access to market channels as well as potentially expand and strengthen our Intellectual Property
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Financial Highlights
Attractive growth opportunities
– Deployment of advanced lighting – color-changing and white
– Worldwide markets
Business model leverage
– Established channels and well-recognized product brands
– Technology investments like Array to expand margins
– Outsourced manufacturing and supply chain
Improving financial performance
– Consistent revenue growth from fiscal 2007 to present
– Gross margins improving
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Financial Performance
FY 2007 Q3 YTD 2007 Q3 YTD 2008
Revenue ($M) $10.2 $7.6 $10.7
Gross Margin 26.9% 28.8% 29.0%
G&A / S&M 54.5% 50.0% 60.0%
R&D 4.1% 3.9% 4.6%
Operating Margin NM NM NM
Net Margin NM NM NM
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Q3 Balance Sheet
($ in millions)
September 30, 2008
Assets:
Cash & cash equivalents $1.2*
Working Capital 4.3
Total Assets $18.5
Liabilities & Shareholders’ Equity
Long-term debt $3.0*
Total liabilities 7.5
Total shareholders’ equity $11.0
Total liabilities & shareholders’ equity $18.5
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Why Invest in Nexxus Lighting?
Clear vision and strategy
Unique and robust combination of white light and color- changing advanced lighting solutions
Large market potential for Array Lighting
Both retrofit and highly customized offerings
Broad product portfolio targeting multiple end markets
Strong channel partnerships with large installation opportunities
Solid & growing intellectual property base
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