1. No category

Annual Investor Conference
Mark Eubanks, President – Eaton’s Cooper Lighting Division
February 27, 2015
© 2015 Eaton. All Rights Reserved..
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
© 2015 Eaton. All Rights Reserved..
3
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
Revenue Mix
18%
51%
International
Commercial
10%
82%
Outdoor
Americas
13%
Residential
© 2015 Eaton. All Rights Reserved..
26%
Industrial
4
Product brands and application knowledge that
customers trust all over the world
Metalux (Ambient)
Crouse-Hinds
(Harsh & Hazardous)
Halo (Recessed)
Complete product
solutions
McGraw- Edison (Outdoor)
CEAG (Life Safety)
Fifth Light (Controls)
© 2015 Eaton. All Rights Reserved..
5
Eaton has broad and deep presence in all areas
of lighting
Commercial
Residential
Industrial
Multiple applications, channels, and geographies
Street Lighting
Healthcare
© 2015 Eaton. All Rights Reserved..
Education/Universities
6
Strong product brands and human capital
invested across all areas of the value chain
Sales Agents
and Dealers
Architects,
Engineers
Wholesale
Distributors
EPC, Electrical
Contractors
Owners,
End Users
Eaton’s global sales and support infrastructure
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
© 2015 Eaton. All Rights Reserved..
7
Our marketing and education have global reach
Eaton Global
Tech Days
SOURCE Education Center
WaveStream Roadshow
© 2015 Eaton. All Rights Reserved..
8
Expanding Eaton’s intellectual property for
protection of proprietary technology solutions
Global LED & Controls Patent Applications
© 2015 Eaton. All Rights Reserved..
Global LED & Controls Patents Issued
9
Our results continue to outperform the market
Quarterly Revenue Growth %
© 2015 Eaton. All Rights Reserved..
LED Penetration
10
Lighting greatly expands the depth and breadth
of our Electrical franchise
Moving Upstream
Utility power distribution
network
Historic Eaton Core:
Facilities Power
Distribution
© 2015 Eaton. All Rights Reserved..
Moving Downstream
Load management &
lighting control
11
Lighting infrastructure exists everywhere
STREET
HELIPAD
LIGHTING
LIGHTING
PARKING AND
GARAGE LIGHTING
RECESSED
LIGHTING
EXIT SIGNS
(LIFE SAFETY)
DAYLIGHT
NIGHT LIGHTS /
HARVESTING
BED LIGHTS
OUTDOOR
LIGHTING
AMBIENT
LIGHTING
CLASSIFIED
AREAS
LEDs
© 2015 Eaton. All Rights Reserved..
Controls
12
Growth drivers: energy efficiency gains through
technology convergence
• Rising global energy costs
• Increased regulation and legislation – lighting
efficacies and controls
Total Controlled Lighting Growth
• 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
© 2015 Eaton. All Rights Reserved..
13
Expanding our value proposition as the “new”
value chain develops
Ballast
Conventional Lamps
Luminaire
Conventional components
Brand/Channel
Application
Conventional luminaires
Traditional lighting component suppliers
LED component suppliers
LED luminaires / systems
LED source components
Epitaxy
Phosphor
LED
Modules/
Electronics
Controls
© 2015 Eaton. All Rights Reserved..
Luminaires
Brand/Channel
Application
14
Looking forward, trends favor Eaton…
Lighting to “controlled lighting”
Energy Codes
Green Programs
•
•
•
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
•
LED/SSL
Common specification requirement
for Lighting & Controls must be
provided by “single supplier”
© 2015 Eaton. All Rights Reserved..
•
•
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
15
Value /
Benefit
Primary
Drivers
Control
Technologies
Sample Application
– Office Space
Energy code progression to addressable
“smart” controlled lighting
Office Floorplan
1970’s-1990’s
Contactors &
Time Clocks
Office Floorplan
2000’s-2010’s
Office Floorplan
2010’s-2020’s
Centralized
Relay
+/- 5,000 ft2 of control
20% - 30%
Energy Savings
+/- 2,000 ft2 of control
30% - 50%
Energy Savings
© 2015 Eaton. All Rights Reserved..
+/- 150 ft2 of control
50% - 70%
Energy Savings
16
Lighting infrastructure is pervasive…
creates data nodes & high density sensor networks
Private offices
Conference rooms
Area lighting and
roadway
Open office areas
Mechanical rooms
/ classified spaces
Single & multifamily
residential
Parking garages
© 2015 Eaton. All Rights Reserved..
17
Putting it all together…
• Broad geographic and application
coverage
• Strong channel presence, with
increasing investments
• Increased “wallet share” of facilities
construction
• Enables “Systems & Solutions”
architecture
• Expansion of light points
• Embedded intelligence and
communication…deployment of
high-density, sensor networks
• Connecting devices to
systems…systems to networks
© 2015 Eaton. All Rights Reserved..
18
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
© 2015 Eaton. All Rights Reserved..
19