Annual Investor Conference - Eaton · Wholesale Distributors . EPC, Electrical Contractors ......
Transcript of Annual Investor Conference - Eaton · Wholesale Distributors . EPC, Electrical Contractors ......
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Annual Investor Conference
Mark Eubanks, President – Eaton’s Cooper Lighting Division February 27, 2015
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Lighting Facts • Lighting represents 20% of global electricity consumption • DOE projects that by 2030 LED will represent 74% of
lighting sold in the U.S. • Represents 300 terawatt-hours in energy savings, the
equivalent of 50 1000-megawatt power plants • These savings could result in greenhouse gas reduction
of 210 million metric tons by 2030; equivalent to annual output of 38 million passenger vehicles
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Eaton’s lighting business is large, diverse, and growing
Global Sales : >$2.0B
Geographic mix: >18% outside Americas
Growth rate: Double digit CAGR since 2011
82%
18% 51%
26% 13%
10%
Revenue Mix
International
Americas
Commercial
Industrial Residential
Outdoor
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Product brands and application knowledge that customers trust all over the world
Metalux (Ambient)
McGraw- Edison (Outdoor)
CEAG (Life Safety)
Crouse-Hinds (Harsh & Hazardous)
Fifth Light (Controls)
Halo (Recessed)
Complete product solutions
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Eaton has broad and deep presence in all areas of lighting
Multiple applications, channels, and geographies
Industrial Commercial Residential
Street Lighting Healthcare Education/Universities
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Strong product brands and human capital invested across all areas of the value chain
Lighting and Controls Value Proposition • Responsive to rapidly evolving global lighting trends
• Strong understanding of channel and stakeholder requirements
• Unique technology solutions, broad application portfolio
Sales Agents and Dealers
Architects, Engineers
Wholesale Distributors
EPC, Electrical Contractors
Owners, End Users
Eaton’s global sales and support infrastructure
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Our marketing and education have global reach Eaton Global
Tech Days
WaveStream Roadshow
SOURCE Education Center
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Expanding Eaton’s intellectual property for protection of proprietary technology solutions
Global LED & Controls Patents Issued Global LED & Controls Patent Applications
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Our results continue to outperform the market LED Penetration Quarterly Revenue Growth %
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Lighting greatly expands the depth and breadth of our Electrical franchise
Historic Eaton Core: Facilities Power
Distribution
Moving Downstream Load management &
lighting control
Moving Upstream Utility power distribution
network
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Lighting infrastructure exists everywhere PARKING AND GARAGE LIGHTING
HELIPAD LIGHTING
STREET LIGHTING
EXIT SIGNS (LIFE SAFETY)
AMBIENT LIGHTING
CLASSIFIED AREAS
OUTDOOR LIGHTING
LEDs Controls
RECESSED LIGHTING
DAYLIGHT HARVESTING
NIGHT LIGHTS / BED LIGHTS
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Growth drivers: energy efficiency gains through technology convergence
• Rising global energy costs
• Increased regulation and legislation – lighting efficacies and controls
• Social responsibilities and awareness in the areas of sustainability
• Evolution of LED technology relative to traditional lighting sources – cost / performance
• Digitization of lighting systems
• Physical and functional convergence of light sources and controls
Total Controlled Lighting Growth
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LED luminaires / systems LED source components
Application Brand/Channel Conventional Lamps Luminaire Ballast
Conventional luminaires Conventional components
Epitaxy Phosphor Application Brand/Channel LED Luminaires Modules/
Electronics Controls
Expanding our value proposition as the “new” value chain develops
Traditional lighting component suppliers
LED component suppliers
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• Increased granular control requirements in ASHRAE 2010
• Title 24 California Code 2013 includes requirements for automated and manual off lighting in single room, including receptacles
• LEED v3 • Energy & atmosphere credits
• Controllability of systems credits
• Measurement & verification
• Enhanced commissioning
• LEED promoting granular controls (below 150 ft2)
• 2010 - GSA projects require DALI addressable systems
• Common specification requirement for Lighting & Controls must be provided by “single supplier”
• LED adoption drives “Smart Fixture” solutions
• Fixture companies developing smart drivers
• LED fixture solutions include networkable solution/software
• LED 28% of office lighting by 2016, 48% by 2020. Eaton one of few that can provide multi-source solution
Looking forward, trends favor Eaton… Lighting to “controlled lighting”
Green Programs Energy Codes LED/SSL
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Sam
ple
App
licat
ion
– O
ffice
Spa
ce
Con
trol
Te
chno
logi
es
Prim
ary
Driv
ers
+/- 5,000 ft2 of control +/- 2,000 ft2 of control +/- 150 ft2 of control
Office Floorplan 1970’s-1990’s
Office Floorplan 2000’s-2010’s
Office Floorplan 2010’s-2020’s
Valu
e /
Ben
efit Energy code progression to addressable “smart” controlled lighting
20% - 30% Energy Savings
30% - 50% Energy Savings
50% - 70% Energy Savings
Contactors & Time Clocks
Centralized Relay
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Lighting infrastructure is pervasive… creates data nodes & high density sensor networks
Area lighting and roadway
Private offices
Single & multifamily residential
Conference rooms Open office areas
Mechanical rooms / classified spaces
Parking garages
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Putting it all together… • Broad geographic and application
coverage
• Strong channel presence, with increasing investments
• Expansion of light points • Embedded intelligence and
communication…deployment of high-density, sensor networks
• Increased “wallet share” of facilities construction
• Enables “Systems & Solutions” architecture
• Connecting devices to systems…systems to networks
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A transformed Electrical Sector positioned to win big • A strong history of electrical solutions • Transformational acquisition with a complementary business • Integration results meeting increased targets • A business with the scale and size to compete globally • Positioned to capitalize on global megatrends • A portfolio of leading brands • A stronger combined enterprise that can provide distinctive
capabilities to target segments