Financial Data and Key Metrics Changes - Net sales for the second quarter reached a record $854 million, an increase of almost 3% compared to the year-ago period [8] - Adjusted operating profit for the second quarter was $112.4 million, up 7% from $105.3 million in the prior year [8][14] - Adjusted diluted earnings per share (EPS) was a record $1.99, reflecting a 5% increase from the previous year [8][16] - Adjusted gross profit margin decreased by 100 basis points to 39.2% compared to the year-ago period [14] Business Line Data and Key Metrics Changes - Net sales through the independent sales network benefited from price increases and growth from the building management team at Distech, while C&I sales volume declined due to order pull-forward [11] - Corporate accounts channel net sales increased by 10% year-over-year, driven by the expansion of Atrius-enabled luminaires [11] - C&I market net sales were up almost 5% for the first half of 2019 compared to the previous year, indicating a recovery from the pull-forward effect [12] Market Data and Key Metrics Changes - The overall growth rate of the lighting industry in North America was reported to be low-single digits, with the company outpacing this growth [10] - The company noted that prolonged weak demand for larger non-residential lighting projects and product substitution to lower-priced alternatives continued to impact sales [12][32] Company Strategy and Development Direction - The company is focused on diversifying its product offerings and enhancing customer solutions, particularly through its Atrius IoT platform and building management solutions [17][36] - The company aims to maintain its investment-grade rating while exploring M&A opportunities and share buybacks as part of its capital allocation strategy [39][42] - The company is reviewing its product portfolio to eliminate underperforming items, which is expected to improve margins and return on invested capital [35][72] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth despite current market challenges, citing strong cash flow and sales growth [28] - The company anticipates that labor shortages and global trade issues may continue to impact growth rates in the construction and lighting markets [30][31] - Management expects to continue outperforming the overall market growth rate, particularly in North America, while facing challenges from product substitutions and pricing dynamics [33][34] Other Important Information - The company generated $188 million in net cash flow from operating activities in the first half of fiscal 2019, an increase from $178 million in the prior year [24] - The company repurchased 400,000 shares for $49 million during the first six months of fiscal 2019, with 4.8 million shares remaining under the current repurchase authorization [26][27] Q&A Session Summary Question: Thoughts on deploying net buybacks and leveraging the balance sheet - Management indicated that cash will be used for capital expenditures, shareholder returns, and acquisitions, with a preference for M&A opportunities [39][40] Question: Impact of retail channel mix on growth - Management sees opportunities for diversification and growth in the retail channel, despite the complexities of different customer service requirements [46][48] Question: Price capture and realization timeline - Management believes there may be another quarter of noise around price capture, but is optimistic about future price realization [54][55] Question: Recent lighting industry M&A activity - Management remains bullish on the lighting industry, stating that it continues to grow and that Acuity is well-positioned compared to smaller competitors [68][69]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________ Form 10-Q _____________________________________________ (Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 28, 2019. OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 001-16583. _____ ...

Financial Data and Key Metrics Changes - The company reported record net sales of $933 million for Q1 2019, an increase of 11% compared to the same period last year [7] - Diluted earnings per share grew 17% to $1.98, marking a first-quarter record [6] - Adjusted operating profit for Q1 2019 was $134.1 million, a slight decrease of 1% from $135.5 million in the prior year [8][16] - Adjusted diluted earnings per share reached a record $2.32, up 20% from $1.94 in the year-ago period [20] Business Line Data and Key Metrics Changes - Solutions sold through the independent sales network, which constitutes approximately 70% of total net sales, grew 10% compared to the previous year [11] - The company experienced solid growth in net sales across most channels and geographies, particularly driven by demand for Atrius-based luminaires and lighting control solutions [10][15] - The adjusted gross profit margin for Q1 was 39.5%, a decrease of about 200 basis points compared to the prior year [16] Market Data and Key Metrics Changes - The overall growth rate in the lighting market in North America was up low-single digits, while the company's net sales growth rate of approximately 11% significantly outperformed this [14] - The company noted that the construction market is expected to grow in the low to mid-single-digit range, with the lighting industry lagging behind due to product substitutions to lower-priced alternatives [32] Company Strategy and Development Direction - The company is focused on expanding its customer base and introducing new products to drive growth, with a particular emphasis on innovative lighting and building management solutions [10][21] - The company continues to expand its Contractor Select portfolio to compete profitably in the market for lower-priced products [22][36] - Strategic actions taken include price increases and productivity improvements to address inflationary cost pressures [6][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth despite current market challenges, citing strong sales growth and cash flow [31] - The company anticipates that labor shortages and tariff-related cost increases may dampen growth rates in the near term [32][33] - Management believes that announced price increases will eventually offset rising input costs [33] Other Important Information - The company generated $132 million in net cash flow from operating activities during Q1, with a cash position of $215 million at the end of the quarter [28] - The effective tax rate for Q1 2019 was 25.2%, significantly lower than 35.5% in the prior year due to the Tax Cuts and Jobs Act [27] Q&A Session Summary Question: Trends in Contractor Select profitability - Management noted that the Contractor Select portfolio has seen improved margins and growth since its relaunch, aimed at value-oriented products [34][36] Question: Impact of product sourcing on gross contribution margin - Management acknowledged that while sourcing from Asia may reduce leverage opportunities, the margin profile remains favorable for the Contractor Select portfolio [37][39] Question: Product substitution dynamics - Management indicated that product substitution occurs both at the initial bid stage and later in the construction process, influenced by budget constraints [43][51] Question: State of the non-residential cycle - Management highlighted that while small to medium projects remain favorable, larger projects are constrained by labor availability [75] Question: Residential business growth - Management reported a 10% increase in retail channel sales, which includes residential applications, indicating stability in that segment [78]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________ Form 10-Q _____________________________________________ (Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2018. OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 001-16583. _____ ...