2019 A Look Forward – Must Execute Continued Innovation – To support our overall vision and Human Centric approach! Tell our story and sell our complete portfolio Quantum, Ecosystem, Vive, Vive Integral Fixture Controls, Shades, Limelight, Vue Portfolio, Services, RUS Specification – continue to commit to the process and invest in capabilities! Close rates effectively double when Ecosystem is on the job Close rates will further improve with T-Series, Ketra, Limelight, Vue, Shades, Vive

2019 A Look Forward – Must Execute Coordinate and drive availability and fair price transparency for Lutron In-Fixture technology through the OEM Channel Ecosystem including NEW T-Series Vive integral fixture controller Limelight by Lutron

2019 A Look Forward – Must Execute Continue transition and increase focus on vertical account development Higher Ed Office – Corporate Campus K-12 Hospitality Healthcare

2019 A Look Forward – Must Execute Continue to mobilize the ED channel utilizing the Advantage Program, engaging and developing the channel’s customer Connected Home LutronPro Find An Installer Builder Engagement – 15-20k home standard in 2019 Commercial Farmer Development VIP Training Vive Designer Farmers Vive App Farmers

Vive 2019 Commission + Incentive Program 11% Base Commission +3% New Product Incentive +3% Quarterly bonus for achieving 25% growth Intention of 11% + 3% + 3% : to support growth activity acceleration Project Support Specifications to drive future business Farmer Development to lower white collar costs for Rep and Lutron

Vive 2019 Commission + Incentive Program 11% Base Commission +3% Quarterly New Product Incentive for achieving spec and farmer +3% Quarterly bonus for achieving 30% growth Intention of 11% + 3% + 3% : remains to support growth activity Project Support Specifications to drive future business Farmer Development to lower white collar costs for Rep and Lutron

Vive 2019 Commission + Incentive Program Types of Farmers Those that standardize on Vive and start up their own jobs ECs End Users / Facility Teams Those that perform design work via Vive Designer EDs CIs

Vive 2019 Commission + Incentive Program Metric A Market Rep B Market Rep C Market Rep Lutron Designer Active Users* +2 per Quarter by Q1:2 ** by Q2:4 by Q3:6 by Q4:8 +1 per Quarter by Q1:1 ** by Q2:2 by Q3:3 by Q4:4 +1 per Half By Q1:1 ** By Q2:1 By Q3:2 By Q4:2 Vive Project Registrations (w/app) that are not Lutron 8 per quarter 4 per quarter 1 per quarter Spec Firms with a Vive spec 3 new firms per Qtr 2 new firms per Qtr 1 new firm per Qtr Vive IFC Specs or Projects Q1:1 Q2:2 Q3:3 Q4:3 Q2:1 Q3:2 Q4:2 * Active User = 1 Project / Month ** Existing Designer Users count toward Q1 total

2019 A Look Forward – Must Execute Commercial Integrator (CI) Engagement and Development Every rep to have the CI contract and business plan Every rep to have at least (1) CI engaged with Vive opportunities

2019 A Look Forward – Must Execute What is a CI? Typically advertised as a building/systems integrator A firm that has significant resources devoted to servicing existing customers Core competency is low voltage control systems (BMS, HVAC, security, fire alarm, AV, telecom); typically do not sell lighting controls Purpose of CI Channel CI’s have many end user relationships for ongoing service Most perform regular energy efficiency projects with their clients Opportunity to expand Lutron’s business and enhance CIs portfolio

2019 A Look Forward – Must Execute CI FAQs Q1: Do they buy direct or through channel? A: We will have a path for both procurement models depending on market Q2: What systems do they have access to? A: Focus on Vive; teach them how to ride a bike, avoid this and this. The program allows for access to other commercial systems, if the CI has the opportunities and can support the expertise needed for them.

2019 A Look Forward – Must Execute Where do I find these companies? InsideIQ (https://www.insideiq.org/locate-contractor.php) Mechanical Contractors of America (MCAA) and Mechanical Service Contractors Association (MSCA). Both have national directories on their website. Search major BMS vendors website for local dealers (Schneider, Johnson Controls, Trane, Honeywell, Automated Logic, Delta, Reliable Controls) Google business search for “building automation integrators” or “systems integrators” in your market

MyRoom and “GCI” vs. “HTI”

2019 A Look Forward – Must Execute Ketra Commercial Ramp! Coordinated and time managed rollout of Ketra to our Commercial Rep Agents

Ketra 2019 Update Chris Udall

2019 A Look Forward – Must Execute Aggressively launch and develop Limelight by Lutron business! 11% commercial commission 50% spec / 25% point of sale / 25% destination +2% New Product Incentive for 2019! Limelight Jobs are expected to be managed by Reps unless it’s part of a large Quantum job Lutron is managing Reps with outdoor lines must assist Lutron OEM team in getting OEMs to integrate Limelight into their outdoor lines Reps should attach Limelight and Enterprise Vue to existing Higher Education and Commercial Office jobs

2019 A Look Forward – Must Execute FAQs Why +2% New product incentive To support accelerated specification, market training and OEM coordination. Limelight should be an add-on or attachment to an existing job. What if the job has Quantum, Enterprise Vue, and Limelight? Commission: 11% + CIP on Quantum and Enterprise Vue Commission: 11% + 2% New Product Incentive on Limelight What is the commission for OEM Limelight product? OEM commission is the same as the gateway or retrofit modules Tracked by LSC-LL-COUNT SKU and verified prior to scheduling startup

2019 A Look Forward – Must Execute Aggressively pursue RUS opportunities 6000 and 7000! Increased focus and prioritization within Higher Ed initiatives