Dialight plc · LSE:DIA
Dialight — H1 2007 Earnings Presentation
22 slides from Dialight's earnings presentation, Sep 10, 2007
Slide 1: Interim Results 10th September 2007
Interim Results 10th September 2007
Slide 2: Financial Highlights
Financial Highlights Movement on 2007 2006* H1 H1 z Revenue £28.9m 3% z Operating profit £1.0m (53%) z Profit before tax £1.3m (50%) z Earnings per share (basic) 2.5p (53%) z Strong cash generation z Dividend Increased by 9% to1.9 pence per share *Restated to 2007 currency
Slide 3: Revenue Bridge
Revenue Bridge £m 2006 H1 revenue 30.0 Volume increase (3%) 0.9 Currency impact (2.0) 2007 H1 Revenue 28.9
Slide 4: Revenue Bridge
Revenue Bridge Signals/Illumination Components 2006 H1 revenue £14.2m 2006 H1 revenue £15.8m Volume increase (12%) £1.7m Volume reduction (5%) £(0.8)m Currency impact £(1.1)m Currency impact £(0.9)m 2007 H1 Revenue £14.8m 2007 H1 Revenue £14.1m
Slide 5: Contribution Margin
Contribution Margin 2007 2006 First Half First Half Components 43.8% 47.9% Signals/Illumination 33.2% 36.3%
Slide 6: Bridge – Operating Profit
Bridge – Operating Profit £m 2006 H1 operating profit 2.3 Components (0.9) Signals/Illumination 0.6 Slippage of Cost Reduction (S/I) (0.5) Currency/Other (0.5) 2007 H1 operating profit 1.0 Note: USD rate movement – 18 cents Euro rate movement – 3 cents Effect of 1 cent movement p.a. - £30k (annualis
Slide 7: Summarised Cashflow
Summarised Cashflow £m Operating profit 1.0 Depreciation and amortisation 1.1 Working capital 1.9 * Pension payment (0.5) Operating cashflow 3.5 Capital expenditure (0.7) Development spend (0.4) Taxation 1.1 Free cash flow 3.5 *Inventory reduced by £0.8m to £9.4m
Slide 8: Movement in Cash
Movement in Cash £m Free cash flow 3.5 Dividends (1.1) Interest 0.3 Net cash inflow 2.7 Opening net cash 4.3 Translation (0.1) Closing net cash 6.9
Slide 9: Segment Revenues
Segment Revenues 2007 1H Sales (£M) 2006 1H Sales (£M) 14.1 14.2 14.8 15.8 Signals/Illumination Components
Slide 10: Components
Components z Orders stabilised z End user demand flat to 2006 z Outlook for Disconnects positive
Slide 11: Signals/Illumination Revenues
Signals/Illumination Revenues H1 '07 H1 '06 22% 23% Traffic Obstruction 54% 53% 15% Illumination 14% Other 9% 10%
Slide 12: Traffic
Traffic z 14% Revenue growth year on year z US “Large Bid” activity growing z Awarded major contracts for New York State, Florida State z Adoption of new ITE Specification stabilising z Europe strategy continues z Price movement to be offset by cost reduction
Slide 13: Obstruction
Obstruction z Revenues flat year on year z US Orders up by 33% z Major new product introductions to drive revenue 1. US Wind Turbines - Synchronised Red Beacon 2. European Wind Turbines - White LED Strobe 3. US Telecommunications - White LED Strobe 4. European Hazardous Market - “ATEX” Red Strobe 5.
Slide 14: Obstruction
Obstruction z Synchronised Red Beacon - US Wind Turbine installations to run at 1000 Turbines/ year - potential of 2000 Lights per year z White Strobe 3 Layer (Europe) - 2000 Turbines/year potential of 4000 Lights per year z White Strobe 4 Layer(North America) - over 50,000 lighted Cell Towers in No
Slide 15: Transportation - Vehicle and Rail
Transportation - Vehicle and Rail z Entering H2 2007 with $1m Order Book for Heavy Duty Vehicle Lights z White Lights for Bus Interior Lighting - Fluorescent replacement - Potential $2000 per bus z Booked New York Power Authority Order for 12,000 Wayside Signals - $2m approx.
Slide 16: Lighting
Lighting
Slide 17: Lighting
Lighting Architectural Lighting z In discussions with US OEMs for private label of Lumidrives Products z Won a “Best Product” Category at Lightfair z Light Engines launched through Distribution z High Power Colourdriver to be introduced in H2 for new LEDs
Slide 18: How do LEDs compare to the competition?
How do LEDs compare to the competition ? (September 2007) Colour Efficiency Life -hours Cost Per Type Rendering lm/W x1000 lumen $ Ra High Pressure 60 -120 10 - 20 0.0004 30 Sodium Ceramic Metal 60 -100 6 -12 0.0010 70 - 95 Halide Fluorescent 40 -100 6 - 45 0.0005 60 - 90 Halogen & 8 -22 2 - 10 0.00
Slide 19: White Lighting
White Lighting z Introduced “Safesite” Hazardous Location Downlight z Designed to replace 150 watt High Intensity Discharge Light z Installed base $250m plus for Refinery Market z First sales to beta sites August of this year z Strong value proposition z Over 40% Power Saving z Longer life - 5 year
Slide 20: Break the Paradigm! Efficiency
Break the Paradigm! Efficiency Typical Typical Dialight 150W 100W SafeSite™ HID HL HID HL LED C1D2 16000 9440 4310 Lamp/LED Output (lumens) 7349 4336 3344 Fixture Output (lumens) 3707 2187 3217 Target Area Illumination (lumens) 167 110 95 Power (watts) 39 39 35 Fixture Efficiency lumens/watt) 22 20
Slide 21: Where can LEDs add value today?
Where can LEDs add value today? z By understanding applications in which we can exploit the unique properties of LEDs and engineer system level solutions which create a strong value proposition Robust No Mercury Precision optics Long Life Low operating Compact temperature No UV or IR New lighting ap
Slide 22: Strategy
Strategy z Select the application that drives value z Engineer the fixture to capitalise on LED properties z Register IP to protect the future z Take to End Users/OEMs