Dialight plc · LSE:DIA
Dialight — H1 2013 Earnings Presentation
41 slides from Dialight's earnings presentation, July 2013
Slide 1: Dialight plc 2013 Interim Results
Dialight Dialight plc 2013 Interim Results July 2013 1
Slide 2: Agenda
Agenda Dialight • Highlights and Financials • Business review and outlook • Q&A 2
Slide 3: Highlights of First Half 2013
Highlights of First Half 2013 Dialight •Lighting Revenue up over 70% to £29.3m •Lighting Profit up 180% to £4.4m •Lighting sales force expanded to 86 (59 at 31/12/12) •Underlying Operating profit £5.5m (H1 2012: £8.2m) due to repositioning of obstruction signals business •Trial orders received for c
Slide 4: Group Summary Profit and Loss
Group Summary Profit and Loss Dialight 2013 £M 2012 £M Revenue 59.9 53.1 Gross Profit 18.0 18.2 Gross Profit % 30.0 34.3 Overhead costs (12.5) (10.0) Underlying operating profit 5.5 8.2 Net financing cost (0.1) 0.1 Underlying Profit before tax 5.4 8.3 Discontinued and Non‐ Underlying 0.2 ‐ Tax (1.5)
Slide 5: Interim Financial Result Bridge
Interim Financial Result Bridge Dialight £M 2012 H1 EBIT 8.2 Lighting Increased Contribution 5.7 Additional Sales Cost (2.7) Signals Lower Sales (4.3) Residual Switch overhead allocation (0.6) Additional development cost (0.5) Other (0.3) 2013 H1 EBIT 5.5 5
Slide 6: Balance Sheet
Balance Sheet Dialight June 2013 June 2012 Dec 2012 £M £M £M Non current assets 33.3 29.2 30.7 Cash 11.2 8.1 15.0 Other current assets 46.7 44.5 46.6 Current liabilities (21.3) (21.7) (25.0) Non current liabilities (4.8) (2.9) (4.3) Net Assets 65.1 57.2 63.0 6
Slide 7: Cashflow
Cashflow Dialight 2013 H1 2012 H1 £M £M Operating cash 6.6 9.8 Working capital (3.6) (7.6) Cash from operations 3.0 2.2 Tax/financing (1.4) (1.2) Investing activities (2.4) (4.3) Dividend Paid (3.1) (2.1) Change in net cash (3.9) (5.4) 7
Slide 8: Half Year Revenues
Half Year Revenues Dialight 2013 2012 Total Revenue £59.9m £53.1m Lighting £29.3m £17.2m Signals £20.2m £25.5m Components £10.4m £10.4m 8
Slide 9: Contribution Margin
Contribution Margin Dialight 2013 2012 H1 H1 Lighting 44.0% 41.7% Signals 39.6% 48.6% Components 51.0% 50.0% 9
Slide 10: Business Overview
Dialight Business Overview 10
Slide 11: Signals / Lighting
Signals / Lighting Dialight 2013 2012 2012 H1 H2 H1 Total Revenue £59.9m £62.0m £53.1m Transportation £4.3m £4.0m £4.3m Traffic £10.0m £10.6m £11.0m Obstruction £5.7m £8.0m £10.2m Lighting £29.3m £28.4m £17.2m 11
Slide 12: Obstruction Signals
Obstruction Signals Dialight •Americas business being reinvented •Transition from Lighting Business to Monitoring and Control •Total reengineered product line rolled out •Addresses both towers up to 350 feet and those over 350 feet •Expansion into Latin America •Addressable market well over $400m fo
Slide 13: System Overview - E1 System Installation
System Overview ‐ E1 System Installation Dialight Dialight Hosting (Optional) Kentrox Ethernet (RJ45) GPS Photocell TCP/IP Display SNMP CurrentSense Board GSM/CDMA 3G/4G/LTE TCP/IP SNMP Battery Backup Controller Wi‐Fi TCP/IP Translator SNMP Board USB/RS232 Relay Board Alarms Power Supply Modbus Modb
Slide 14: Dialight Cloud
Dialight Central Office od Site Manager message Dialight Cloud
Slide 15: Obstruction Signals
Obstruction Signals Dialight Progress to date Americas:‐ •Customer A – 6,000+ Towers outside the USA expected to commence soon •Customer B – 7,000+ Towers in North America, Purchasing document signed, systems for Medium and High Intensity in test. Significant Potential subject to final sign offs •Cu
Slide 16: Lighting – The Engine for Growth
Lighting – The Engine for Growth Dialight 16
Slide 17: Lighting Five Year History
Lighting Five Year History Dialight 2013 H1 2012 2011 2010 2009 £m £m £m £m £m Sales 29.3 45.5 26.4 11.6 5.5 % of Group Sales 48.9 39.5 25.7 13.7 8.6 17
Slide 18: US DOE Roadmap: Technology Maturing
US DOE Roadmap: Technology Maturing Dialight 18 Market wants LED benefits…at little to no premium 18
Slide 19: Dialight benefits from the price decline in LEDs
Dialight benefits from the price decline in LEDs Dialight Rapid evolution enables lighting; few LED players surviving 19 19
Slide 20: LED Systems
LED Systems Dialight LEDs becoming smaller part of BOM’s 20
Slide 21: What market are we addressing? Why LEDs? Why Dialight?
Dialight What market are we addressing? Why LEDs? Why Dialight? How do we go to market? 21
Slide 22: What is our market focus?
What is our market focus? Dialight •We are not in the LED Light Bulb Business •We do not focus on Street Lights •We are not in Commercial, Retail or Domestic Lighting •We have chosen to be the market leader and innovator in Hazardous and Heavy Industrial Lighting applications 22
Slide 23: Why Hazardous Locations?
Dialight Why Hazardous Locations? • Hazardous Lighting addressable market is estimated to be in excess of $10bn • Significant barriers to entry ‐ Rigorous and expensive global safety certifications ‐ Fragmented market – market knowledge, sales/distribution channels ‐ Requires full product portfolio
Slide 24: Vertically Focused – Hazardous & Industrial
Vertically Focused – Hazardous & Industrial Dialight Oil, Gas & Petrochem $3bn Heavy Industrial $2.5bn • Upstream (exploring & • Steel processing drilling) • Pulp & paper • Downstream (refining) • Auto plants • Transportation (terminals • Aircraft plants & pipelines) Power Generation $3bn Chemical &
Slide 25: Prospect Review – Drilling Rig Manufacturer
Prospect Review – Drilling Rig Manufacturer Dialight Scale of opportunity 168 land based rigs 122 offshore rigs • Total opportunity: ~$40M • Opportunity per land rig: $100K • Opportunity per offshore rig: $200K Traditional lighting suffers constant breakages causing production downtime Installed Dia
Slide 26: Prospect Review – Chemical Manufacturer
Prospect Review – Chemical Manufacturer Dialight Scale of opportunity 188 global plants ~ 1,200 fixtures per plant • Total opportunity: $126M • Opportunity per plant: $675K Typical Lighting Applications: Process Areas Steam Rooms Catwalks 26
Slide 27: New Construction and Retro-fit Markets
New Construction and Retro‐fit Markets Dialight New Build Markets •Capital projects handled by EPC firms, multiple, global decision points •18‐36 month sales cycles •Competing mostly against conventional lighting at this stage •High volume projects •‘Multinational Account’ approach Retro‐fit Markets
Slide 28: Why LED Lighting?
Dialight Why LED Lighting? • Energy saving up to 60% against conventional efficient lighting • Maintenance – lasts more than ten years in service • Safety – superior light with no failure • Reliability‐ no need to plan shutdowns to replace lights • Control – easy to turn on and off/down with no degr
Slide 29: Why Dialight?
Dialight Why Dialight? • World’s leading LED hazardous lighting company • LED only! We are THE SSL experts • State of the art products – always a generation ahead (speed!) • Superior performance, complete product portfolio • Unprecedented ’No Quibble’ 10 year warranty • Vertically integrated manufac
Slide 30: Continuous product improvement
Dialight Continuous product improvement… ...we are never satisfied! 30
Slide 31: Area Light
Area Light Dialight 2013 2011 10 lbs (4.5 kg) 7,000 Lumens 68 Watts 2009 103 LPW Walkway / Wide Throw Optics 10 lbs (4.5 kg) Added Mounting Accessories 5,500 Lumens Retrofit Adapters 70 Watts Stanchion Mount Safety Cables 78 LPW Junction Boxes Battery Backup (Coming Soon) 17 lbs (7.7 kg) 5,000 Lumen
Slide 32: Linear Light
Linear Light Dialight 2013 2012 11 lbs. (4.99 kg) 7,000 Lumens 66 Watts 2011 106 LPW 17 lbs (7.71 kg) Integrated Wiring Compartment Added Mounting Accessories: 7,000 Lumens Stanchion Mount 70 Watts Safety Cables 100 LPW Stainless Steel Fixture 17 lbs (7.71 kg) 7,000 Lumens 100 Watts 70 LPW Battery B
Slide 33: High Bay
High Bay Dialight Q4 2012 Q1 2012 2011 25,000 Lumens 250 Watts 17,000 Lumens 100 LPW 2010 170 Watts Q4 100 LPW 2009 14,500 Lumens 161 Watts 90 LPW 12,000 Lumens 150 Watts 8,000 Lumens 80 LPW 150 Watts 53 LPW
Slide 34: Controls for High Bay
Controls for High Bay Dialight
Slide 35: Dialight Cloud Services
Dialight Cloud Services Dialight
Slide 36: Competition
Competition Dialight Dialight Competitor 1 Competitor 2 Competitor 3 Hazardous Focus √ √ √ √ Long term LED Experience √ X X X LED Only √ X X X 5‐10 Year Warranty √ X X X Full Product Portfolio √ √ X X 100 Lumens per Watt √ X √ X In‐House Optics √ X X X In‐House Power Supply √ X X X Speed to Market √
Slide 37: How do we address the market and sustain growth?
Dialight How do we address the market and sustain growth? 37
Slide 38: Lighting Channel to Market
Lighting Channel to Market Dialight Asia Pacific 25 direct sales personnel Europe / Middle East US, Canada, 27 direct sales personnel Mexico & Brazil 34 direct sales personnel 38
Slide 39: Direct Customer facing Sales Channels
Direct Customer facing Sales Channels Dialight Sales Force Sales Force Sales Force June 2013 June 2012 June 2011 Americas 34 18 6 Europe/ 27 11 6 Middle East Asia 25 10 5 Total 86 39 17 39
Slide 40: The way forward
The way forward Dialight More Sales people More geographies Improved product efficiency Improved warranty Improved return for our customers Real Continuous Improvement! 40
Slide 41: Dialight… It's all about Lighting!
Dialight Dialight… It’s all about Lighting! 41