We continued to expand our addressable market and further penetrated key geographies,
reducing our reliance on new construction activity. 2013 was the fifth consecutive year
in which we expanded our industry-leading portfolio with the introduction of approximately
100 new products for indoor and outdoor applications. Additionally, we won multiple awards
for innovation and ingenuity, further demonstrating our leadership in solid state as well as
conventional lighting solutions. These are among the strategic accomplishments that allowed
us to once again extend our market leadership position in 2013 while strengthening our platform
for future growth.
Acuity Brands also delivered solid results, despite the continuing challenges of a weak economy:
- Net sales grew 8 percent, to approximately $2.1 billion;
- Adjusted operating profit margin expanded 10 basis points to 11.8 percent;
- Adjusted diluted earnings from continuing operations increased 10 percent, to $3.31 per share;
- Return on stockholders’ equity exceeded 14 percent; and
- Total shareholder return exceeded 34 percent.
This is an extraordinary time to be in the lighting industry, particularly for a company of the caliber
of Acuity Brands. Rapid advancements in technology, along with the need for greater energy efficiency,
changes in public policy, and demand for environmental sustainability, continue to drive profound
changes in our industry creating an exciting opportunity. Acuity Brands is capitalizing on these
profound changes to provide lighting solutions that are elegant, sophisticated, and efficient, while at
the same time simple to install, maintain, and use. We are at the forefront of transforming the
lighting industry. Our skill, knowledge and experience as lighting experts allow us to deliver superior
lighting solutions for virtually any application, a promise best captured in our tag line: “Expanding
the Boundaries of Lighting™.”
Our Future: Growth, Innovation, Excellence
As we enter 2014, our mission is to continue to build on our rich legacy of growth, innovation and excellence.
Our passion and intense focus continue to be centered on creating lighting solutions that deliver superior
quality, energy efficiency and performance. We know that superior quality of light enhances how we live and
interact, whether it is increasing students’ learning ability in schools, improving worker productivity and
comfort in offices and industrial facilities, enhancing the shopping experience in retail establishments, or
accelerating patient healing in hospitals. The possibilities of what can be achieved by the use of intelligent
lighting solutions are still being explored. Technology, coupled with our deep knowledge of lighting, is
allowing us to create ever more effective and energy-efficient solutions that are smart and simple, a slogan
campaign we use to convey our value proposition in the many vertical markets we serve. Our associates are
rapidly exploiting these new technologies and aggressively expanding our industry-leading portfolio by
developing intelligent lighting solutions that represent significant advancements over traditional technologies
and that easily network with other building systems, improving energy efficiency, performance and safety.
We believe the emphasis on energy efficiency and environmental concerns will continue to drive significant
growth in our industry. As the market leader in North America, we believe that our deep expertise in
technology, optics and thermal management, our understanding of the art and science of lighting, and our
ability to provide tailored lighting solutions for numerous applications have positioned the company to
excel. Our key strategies and tactical focus have remained consistent over the last few years. We expect
to continue to execute our profitable growth strategy by focusing on the three mission-critical areas of
operational excellence that we refer to as the 3 Cs:
- Providing unparalleled customer service;
- Pursuing world-class cost efficiency by eliminating non-value added activities and transaction costs; and
- Creating a culture that demands excellence in everything we do through continuous improvement.
On behalf of Acuity’s management team and its Board of Directors, I want to thank our 6,500 associates for
making possible the success we experienced in 2013 and for their continued contributions and dedication to
our vision. I also want to thank our customers for their business, our suppliers for their support, and
our stockholders for the partnership we share in our enterprise.
stockckholders for the partnership we share in our enterprise.
Sincerely,
VERNON J. NAGEL
Chairman, President, and Chief Executive Officer
November 18, 2013
