ACUITY BRANDS, INC. 2014 ANNUAL REPORT

Financial Performance

We delivered record financial performance in 2014.

Financial Highlights

For the year ended August 31
(In millions of dollars, except earnings per share) 2014(1) 2013(2) % Change
Operations
Net sales $2,393.5 $2,089.1 15%
Gross profit % 40.9% 40.1%
Operating profit $299.1 $221.5 35%
Operating profit % 12.5% 10.6%
Net Income $175.8 $127.4 38%
Diluted earnings per share $4.05 $2.95 37%
Diluted weighted average number of shares outstanding
  (in millions)		 43.0 42.5
Return on average shareholders' equity 16.3% 14.1% 16%
Cash provided by operating activities $233.1 $132.3 76%
Depreciation and amortization $43.4 $40.8 6%
Capital expenditures $35.3 $40.6 (13%)
Financial Position
Total assets $2,168 $1,904 14%
Total cash $553 $359 54%
Total debt $354 $354 —
Total stockholders' equity $1,164 $994 17%
Ratio of total debt to capital 23.3% 26.2%
Operating working capital as a percentage of net sales(3) 12.5% 13.0%

(1) 2014 results include $5.8 million of pre-tax fraud-related recoveries (or $0.08 per diluted share) that partially offset the $8.1 million pre-tax loss incurred in fiscal 2013 as a result of fraud perpetrated at a freight payment and audit service firm formerly retained by the Company.

(2) 2013 results include an $8.5 million pre-tax special charge (or $0.12 per diluted share) related to streamlining activities; $8.4 million (or $0.12 per diluted share) of temporary manufacturing inefficiencies associated with the closing of the Cochran facility; and, a pre-tax loss of $8.1 million (or $0.12 diluted EPS) resulting from fraud perpetrated at a freight payment and audit service firm formerly retained by the Company.

(3) Operating working capital is defined as net receivables plus inventories minus accounts payable.

Bar Graphs

Revenues ($ in millions)

$1,627

$1,796

$1,934

$2,089

$2,394

’10
’11
’12
’13
’14

Diluted EPS  

$1.79

$2.42

$2.72

$2.95

$4.05

’10
’11
’12
’13
’14

Operating Profit ($ in millions)

$157.7

9.7%

$188.7

10.5%

$208.0

10.8%

$221.5

10.6%

$299.1

12.5%

’10
’11
’12
’13
’14

MARGINS

Free Cash Flow ($ in millions)

$138.6

$137.8

$140.8

$91.7

$197.8

’10
’11
’12
’13
’14

Free Cash Flow is defined as cash provided by operating
activities minus purchases of property, plant, and equipment.

Comparison of Five-Year Cumulative Total Return*

Among Acuity Brands, Inc., the S&P MidCap 400 Index, the Dow Jones US Electrical Components & Equipment Index, and the Dow Jones US Building Materials & Fixtures Index

Acuity Brands, Inc.

Dow Jones US Electrical Components & Equipment Index

S&P MidCap 400 Index

Dow Jones US Building Materials & Fixtures Index

Aug. ‘09 Aug. ‘10 Aug. ‘11 Aug. ‘12 Aug. ‘13 Aug. ‘14
Acuity Brands, Inc. $100 $122 $147 $206 $277 $403
S&P MidCap 400 Index $100 $112 $137 $155 $192 $236
Dow Jones US Electrical Components & Equipment Index $100 $104 $130 $161 $201 $251
Dow Jones US Building Materials & Fixtures Index $100 $100 $112 $168 $213 $267

*Assumes $100 invested on August 31, 2009 in stock or index, including reinvestment of dividends.