This document summarizes Energy Focus, Inc.'s business and strategy for leading the global LED lighting retrofit market. It discusses Energy Focus's history of developing LED lighting for the U.S. Navy, the large addressable markets for LED retrofitting of troffers, high-bays and parking luminaires, and the company's focus on serving specific commercial and military/maritime segments. It also provides an overview of the company's financial performance in recent quarters, with growing sales revenues and gross profits.

1. 1
Leading The Global LED
Tube Lighting Adoption

2. This presentation may contain some statements that may be considered forward-looking
statements. These forward-looking statements may include statements relating to
financial projections or other statements relating to the company’s plans, objectives,
expectations or intentions. These matters involve risks and uncertainties, and actual
results may differ materially from those projected or implied in the forward-looking
statements. Factors that could cause actual results to materially differ from the forward-
looking statements in this presentation are set forth in our most recent annual report on
Form 10-K and quarterly reports on Form 10-Q, and include our ability to gain market
share in the LED lighting retrofit market, grow our sales, expand our customer base, and
attain profitability; the ability to manage any future growth effectively; our ability to
manage expenses and unforeseen adverse competitive, economic or other factors that
may impact our cash position; our ability to establish and maintain a competitive
advantage in the LED lighting retrofit market and respond effectively as new lighting
technologies and market trends emerge; our ability to effectively manage our supply
chain; among others.
2
Safe Harbor Statement

3. 2003
$10 million
DARPA contract
DAAH01-03-9-R001
1st LED products
Installed on
U.S. Navy Ships
10+ Year Solid State Lighting Partnership with US Navy
$23 million
Navy order
N65540-11-D-0009
2013
National Shipbuilders
Research Program (NSRP) &
USN fund next generation
LED Lighting Fixtures
2011
2008
Energy Focus
Champions
SSL Specification
for U.S. Navy
2014
Energy Focus Product on
over 126 Ship & Subs of
the 249 vessel U.S. Fleet
2007
3
Long, Proven History in
LED Tube Technology Development

4. 4
LED Efficiency Grows Exponentially*
And Has Surpassed All Other Light Sources
*LED efficiency improvement has been following the Haitz Law. Proposed by
Dr. Roland Haitz in 2000, the Haitz Law states that every decade the cost per lumen
(unit of useful light emitted) falls by a factor of 10, and the amount of lumens per
LED package increases by a factor of 20.

5. Our Vision:
A Trusted Leader In LED Lighting Retrofit
Singularly focused on 90
billion and 450 billion sqf.
of commercial buildings
in the U.S. and in the
world, respectively
Highest performance,
lowest cost, client centric
(HPLCCC) LED Tubes
Accessing clients directly
for superior service and
price Energy Focus Fluorescent and HID
Replacement LED Tubes (TLEDs)

6. 6
Space Heating
4% Space Cooling
10%
Water heating
2%
Ventilation
11%
Cooking
0%
Lighting
23%Refrigeration
9%
Office PC
5%
Office
equipment
6%
Other Uses
30%
Source: eia Annual Energy Outlook 2011
http://www.columbia.edu/cu/alliance/documents/EDF/Wednesday/Heal_material.pdf
LED Lighting Retrofit Creates
The Largest Energy Savings in Buildings
Lighting: Single Largest Power Draw in Commercial Buildings
LED Tubes: 50%+ Energy Savings Against Traditional Lighting

7. Source: “LED Lighting in Buildings: 2013-2017”, Memoori.
C&I Accounts for 70% of Lighting
Energy Use & Produces 90% of the Lumens
7
Residential Commercial Industrial
Number of Lamps
Energy Use
Lumen Production

8. 8
Source: Smil, V. 2014. The long slow rise of solar and wind.
Scientific American 282 (1):52-57; EIA 2013 Energy Book;
“Lighting The Way 2013”, McKinsey Inc.
TLED Products Have Potential
To Reduce 3% Energy Use TODAY
Percentage of U.S. Energy Production/Consumption
0.2%
1.2%
6.3%
8.4%
12.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Solar Wind FL & HID C&I Lighting
TLEDs Can Reduce
50-75% of Energy
Used in FL and HID
The investment for substituting
incandescent or fluorescent
lighting with LED is a fifth of the
investment for installing solar
power based on CO2 reduced

9. Investment Thesis
Explosive Markets: Our targeted LED lighting markets to grow
100%+ per year in the next 5-7 years
Proven, disruptive products: Established and leading records
and recognitions in the military, government and ESCO markets
Superior business model: Focused and moving fast in building
direct contacts and distribution networks with end clients to
ensure cost and service advantages
Rapid growth ensuing: Restructuring completed with
accelerating, consistent quarterly growth now under way
Government businesses to support profitability: Continuing
sales growth and margin improvement to facilitate corporate
profitability and support C&I expansion initiatives

10. Indoor
Lamps
A-Type Directional Decorative MR16
Luminares
Down
lights
Troffers
High-
Bay
Parking Streetlight
Outdoor
We Currently Target Retrofitting
Troffers, High-Bay and Parking Luminaires

11. Retrofit: The Real LED Lighting Market
Floor Space from Commercial Buildings Built
Before 2008 Accounts for 93.5% of All Floor Space

12. 12
960 Million U.S. Troffers
*Source: US DOE Adoption of Light-Emitting Diodes in Common Lighting Applications
April 2013, Revised May 2013. Data provide through 2012 and estimated by EFOI for 2013.
100% LFL
<1% LED
Troffer Light Sources 2010
LFL LED
99% LFL
1% LED
Troffer Light Sources 2013
LFL LED

13. 13
64 Million High Bay Lights &
54 Million Parking Luminaire in the U.S.
41% LFL
<1% LED
59% HID
High Bay + Parking Luminaire
Light Sources 2010
LFL LED HID
*Source: U.S. DOE Adoption of Light-Emitting Diodes in Common Lighting Applications
April 2013, Revised May 2013. Data provide through 2012 and estimated by EFOI for 2013.
41% LFL
2% LED
57% HID
High Bay + Parking Luminaire
Light Sources 2013
LFL LED HID

14. The U.S. Land Market:
$25.7 Billion (Products Only)
14
We Target To Replace Existing FL and HID Fixtures Over the Next 5-10 Years
(Global Total Addressable Market Exceeds $120 Billion)
*Source: “Adoption of Light-Emitting Diodes in Common Lighting Applications”, DOE,
May 2013; Long term average lamp and fixture prices estimated by Energy Focus.
Troffer:
$18.4
Billion
High Bay:
$5.5 Billion
Parking
Luminaire:
$1.9 Billion

15. Multiple, Seismic Forces
To Expedite LED Adoptions
Appealing payback surpassing inflection: Payback for our TLEDs
is now < 3 years in most parts of the U.S. and Europe
Continuing efficiency gains and price drops: LED lighting market
following Haitz law* with lumens/$ falling 20-30%/year
Electricity cost to rise faster to further shorten LED payback:
Majority coal fire power plants retiring and new generation capacity
dwindling in the next 5 years
Expanding government and business carbon reduction
initiatives: Stringent EPA rules (cutting 30% carbon emissions by
2030) and aggressive corporate sustainability goals to urge institutions
to turn to LEDs to reduce energy use drastically and immediately
*Source: Named after Dr. Ronald Haitz, the Haitz Law states that every decade
the cost per lumen falls by a factor of 10, and the amount of light generated
per LED package increases by a factor of 20 for a given wavelength of light.

16. Power Cost Has Been Rising Fast

17. Shrinking New Power Generation
Capacities To Accelerate Power Cost Rises
Ex: Electricity rates
at FirstEnergy's
Pennsylvania
utilities were raised
by 25-50% in June
1st, 2014.

18. Corporate Sustainability Is Starting
To Drive LED Adoption Outside of ROI

19. Source: NPD DisplaySearch LED Lighting Market and Forecast Report, Oct 2013.
Global LED Lighting Penetration
Rates Entering The Steepest Growth Curve
19

20. Focused, Leading
& Proven LED Product Lines
Military Berth LightMilitary IntelliTube® HazGlobe LightsMilitary Globe Lights
High-Bay LightingLED Tubes or T-Lamps Vapor Tight Lighting
Military & Maritime Products
Commercial & Industrial Products
99.8% of our LED lighting systems are still running after 4+ years
Dock LightRetrofit Kit
100% of our military LED lighting systems are still running after 7 years

21. 21
Ship’s company can change over from T12 Fluorescent to LED in minutes
Military Intellitube Could Save U.S. Navy
Combat Fleet $500+ million Over 10 Years

22. Non-Military U.S. Navy MSC Coast
Guard
Oil Rigs
M&M Global
Market*
$2.9 Billion $250
Million
$210
Million
$70 Million $200
Million
* Energy Focus, Inc. market study, 2014
Uniquely Positioned
To Lead The $3+ Billion Sea Market
22
Energy Focus is the only approved LED lighting supplier to the U.S. Navy
U.S. Gov’t has awarded $53 million R&D contracts to Energy Focus since 2002

23. Growth Path of
LED Lighting in C&I Uses
23
Source: eia Annual Energy Outlook 2011
http://www.columbia.edu/cu/alliance/documents/EDF/Wednesday/Heal_material.pdf
2
0
1
4
2
0
1
4
130 LPW130 LPW
150 LPW150 LPW
100 LPW100 LPW
2
0
1
6
2
0
1
6
2
0
1
8
2
0
1
8
2
0
1
2
2
0
1
2

24. IntellitubeTM
Provides Industry’s
Leading ROI Against Fluorescent
* Payback calculations for an office with 5,000 3-lamp FL fixtures in Northeast regions.
Key assumptions include 12 cents/kWh power rate, 12 hours per day operation, 5 cents
per kWh project rebate, 3% discount rate and $20 per tube.
Initial Investment -$300,000
Annual Power Savings (1-5 Year) $117,180
Annual Power Savings (6-10 Year) $143,640
Maintenance (ballast removal at 5th Year) -$87,000
Rebate $48,825
Simple payback wo. rebate (Yrs) 2.56
Simple payback w. rebate (yrs) 2.14
NPV $755,221
IRR 44%

25. We Grow and Build Our Brand By Serving
Our Target Clients In The Best Possible Ways
Clearly defined market segments: We only focus on market
segments where we can produce the highest profitable growth with
overwhelming success (“dominance”)
Providing the most compelling value propositions: Our
products/services bring far away the highest performance, lowest cost
and client centric (HPLCCC) features
We sell direct: We avoid layers of distributors and build our own
distribution networks directly with end users and installers, so services
and margins can be far better while remaining competitive
Inventory availability: By focusing only on the government and C&I
sectors (80%+ of lighting needs can be served by our TLEDs), we
maintain far fewer SKUs that are available and sold quickly

26. Clearly Defined Target
Markets To Ensure Leadership
26
Commercial & Industrial:
National Accounts:
National retailers
National parking chains
Regional Accounts:
Industrial facilities
Property managers/REITs
Healthcare
Higher Education
Military & Maritime:
U.S. Navy
Foreign Navies
Commercial ocean-liners
Hazardous lighting
Government:
Federal ESCOs
GSA contracts
Military bases
States
K-12 schools
* Green: leading the markets; orange: clear successes; blue: early entrance.

27. 1,398
9,799
2,438 1,544
9,108
10,882
35,029
8,614
4,631
11,971
32,151
13,870
54,289
111,828
10,012
14,430
14,409
33,695
22,978
65,171
146,857
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14
M1 Commercial Total
27
LED Tubes Sold Per Quarter

28. Quarterly Results
28
Q3 2013 Q4 2013 Q1 2014 (1) Q2 2014 Q3 2014
Net sales 4,827 6,595 4,919 6,699 $7,890
Cost of sales 3,897 5,067 3,497 4,525 5,332
Gross Profit 930 1,528 1,422 2,174 2,558
19.3% 23.2% 28.9% 32.5% 32.4%
Operating expenses:
Research and development 57 331 191 203 232
Selling, general and administrative 2,472 2,689 2,304 2,533 2,648
Loss on impairment - 608 - - -
Change in estimate of contingent liabilities - - - - -
Restructuring 79 1 - - -
Total operating expenses 2,608 3,629 2,495 2,736 2,880
Loss from operations (1,678) (2,101) (1,073) (562) (322)
Other (expense) income (192) (358) (2,978) (61) (81)
Loss from continuing operations before income taxes (1,870) (2,459) (4,051) (623) (403)
Benefit for income taxes - - 1 1 -
Net loss from continuing operations $(1,870) $(2,459) $(4,050) $(622) $(403)
(1) 2014 Other expense includes a $2.3M non-cash charge to write-off the unamortized discount associated with the conversion of convertible notes.

29. Balance Sheet
29
December 31, September 30,
2013 2014
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $2,860 $6,737
Accounts Receivable 3,925 4,044
Inventories, net 2,510 3,633
Prepaid and other current assets 1,482 1,340
Total current assets 10,777 15,754
Property and equipment, net 536 542
Intangible assets, net 55 14
Other assets 1,440 1,089
Total assets $12,808 $17,399
LIABILITIES
Current liabilities:
Accounts payable $3,707 $4,988
Other current liabilities 2,112 1,851
Total current liabilities 5,819 6,839
Other liabilities 54 4
Long-term debt 4,011 185
Total liabilities 9,884 7,028
SHAREHOLDERS' EQUITY
Common stock and paid-in capital 85,447 97,986
Accumulated other comprehensive income 462 465
Accumulated deficit (82,985) (88,080)
Total shareholders' equity 2,924 10,371
Total liabilities and shareholders' equity $12,808 $17,399