Dialight plc · LSE:DIA
Dialight — FY2008 Earnings Presentation
31 slides from Dialight's earnings presentation, Mar 2, 2009
Slide 1: 2008 Preliminary Results
2008 Preliminary Results 2 March 2009
Slide 2: Financial Highlights
Financial Highlights z Turnover increased by 23% to £77.8m (2007: £63.4m) z Signals/Illumination showing good revenue growth z Operating profit up by 37% to £5.3m (2007: £3.8m) z Profit before tax up by 26% to £5.6m (2007:£4.5m) z Basic EPS of 11.2p (2007:8.8p)
Slide 3: Financial Highlights
Financial Highlights 2008 2007* % z Revenue £77.9m £67.6m 15% z Signals/Illumination £43.4m £36.0m 21% z Electromagnetic components £15.1m £11.0m 37% z Indication business £19.4m £20.6m (6)% * Restated to 2008 exchange rates
Slide 4: Segment Results: Signals / Illumination
Segment Results Signals / Illumination 2008 2007* £m £m Revenue 43.4 36.0 z Contribution 14.2 11.6 z Overhead costs (12.4) (11.5) z Segment result 1.8 0.1 Contribution % 32.7% 32.2% * Restated to 2008 exchange rates
Slide 5: Segment Results: Components
Segment Results Components Electromagnetic Components Indication Business 2008 2007 2008 2007* £m £m £m £m Revenue 15.1 11.0 Revenue 19.4 20.6 Contribution 3.5 2.7 Contribution 10.3 11.4 Overhead costs (3.0) (2.8) Overhead costs (5.4) (5.6) Segment results 0.5 (0.1) Segment results 4.9 5.8 Contribut
Slide 6: Indication Components
Indication Components z Good quality earnings z Business fundamentals unchanged z Last three months of trading down 35% z No sign of recovery or deterioration
Slide 7: Electromagnetic Components
Electromagnetic Components z Sales up 37% on 2007 z Continued business with three major AMI customers z Looking to expand customer base z Market continues to grow
Slide 8: Working capital/Cash flow
Working capital/Cash flow z Inventory - Some Increase for new products Improvement plans in place z Receivables -Timing of sales z Capex - In line with depreciation z Cash - Debt free balance sheet Continuing strong operating cash flow
Slide 9: Summarised Cash flow
Summarised Cash flow £m Operating profit 5.3 Depreciation and amortisation 2.9 Working capital (1.2) Pension payment (1.0) Operating cash flow 6.0 Capital expenditure (1.8) Development spend (0.8) Taxation (2.4) Free cash flow 1.0
Slide 10: Movement in Cash
Movement in Cash £m Free cash flow 1.0 Dividends (1.9) B Shares redeemed (2.2) Own shares purchased (0.2) Interest 0.3 Net cash outflow (3.0) Opening net cash 6.6 Translation 0.6 Closing net cash 4.2
Slide 11: Taxation
Taxation z Effective tax rate 38.5% due to overseas rates
Slide 12: Dividends and Earnings Per Share
Dividends and Earnings Per Share 2008 2007 z Dividends per share 6.0p 5.7p z Basic EPS 11.2p 8.8p z Dividend cover 1.85 times 1.5 times
Slide 13: Defined Benefit Pension Schemes
Defined Benefit Pension Schemes z 2 closed defined benefit schemes in UK and 1 closed defined benefit scheme in US z Total liabilities at 31 December 2008 are £32.5m z Total assets at 31 December 2008 are £28m z In 2008 the following mortality tables were used: UK: PA92 medium cohort US: RP2000
Slide 14: Signals/Illumination Revenue
Signals/Illumination Revenue 2008 2007* z Revenue £43.4m £36.0m z Traffic £24.4m £20.5m z Obstruction £4.6m £3.1m z Transportation £8.3m £7.9m z Lighting £6.1m £4.5m z * Restated to 2008 exchange rates
Slide 15: Signals - Traffic
Signals - Traffic z Traffic up 31% on 2007 (20% constant currency) z Both Europe and US showing growth z First significant sales to UK z Improved margins in both geographies z Some major contracts in the US z Potential to use channel for lighting sales – bridges, tunnels, roadway signs
Slide 16: Signals - Obstruction
Signals - Obstruction z 56% year on year growth (47% at constant currency) z Sales of Red Beacons driven by US Wind Turbine Market z Latest White Strobe half the size, half the weight Initial shipments made to major cell tower operators covering more than 60% of the market More than three hundred un
Slide 17: Dialight
Dialight
Slide 18: Signals - Vehicle
Signals - Vehicle z 35% Growth in 2008 (25% at constant currency) z Growth driven by continued government spending on Transit Buses z Enhanced penetration of Military Vehicle Market as LED lights become standard
Slide 19: Illumination
Illumination z 37% Lighting growth in 2008 ( 34% at constant currency) z Architectural Agreement signed with Juno Lighting in the US Agreement signed with Illuma Lighting in the UK Partner strategy continues New products introduced UK Manufacturing consolidated in Newmarket Improving margins
Slide 20: White Light Strategy
Dialight eeeeeeoeoe ecco White Light Strategy 200000000000
Slide 21: How do LEDs compare to the competition?
How do LEDs compare to the competition ? Type Efficiency lm/W Life -hours x1000 Cost Per lumen $ Colour Rendering Ra High Pressure 60 -120 10 - 20 0.0004 30 Sodium Ceramic Metal Halide 60 -100 6 -12 0.0010 70 - 95 Fluorescent 40 -100 6 - 45 0.0005 60 - 90 Halogen & Tungsten 8 -22 2 - 10 0.0002 100 C
Slide 22: White Lighting
White Lighting z LED efficiency no better than Sodium/Metal Halide z Superior optics and controllability add to value proposition z Long life/Maintenance free and ruggedness adds to value proposition z “Whole Life “ benefit opens up niche markets
Slide 23: Energy used by lighting
Dialight Energy used by lighting
Slide 24: 24/7 lighting is a waste
Dialight 24/7 lighting is a waste
Slide 25: Why light an empty tunnel?
Dialight Why light an empty tunnel?
Slide 26: Inefficient Light Source
Dialight Inefficient Light Source Ceeeeeeoooooe
Slide 27: Efficient light source
Efficient light source
Slide 28: Industrial Lighting
Industrial Lighting z Sales of initial Safesite product to many flagship customers z Product in evaluation/first use by Centrica, Rio Tinto, Valero, Henkels,etc z Over 1200 hundred units sold z Payback in less than two years z Agreement signed with Gexpro in the US for distribution z Retrofitted maj
Slide 29: Industrial Lighting
Industrial Lighting z Ledpak introduced as fluorescent replacement z Safesite 250 introduced giving 150 watt saving over conventional light z Introducing Road Sign Light for Roadway Sign Illumination z Streetlight trial in major UK city z “Streetsense” Streetlight range being introduced.
Slide 30: Stimulus Package
Stimulus Package z $3.2Bn for Energy Efficiency including Traffic Lights and Street Lights with LEDs z $6Bn Loan Guarantees for renewable energy z $4.5Bn Improved Energy Efficiency in Federal Buildings z $4.2Bn Dept of Defense improved Energy Efficiency z $27.5Bn highway investments including traffi
Slide 31: Prospects
Prospects z Signals/Illumination positioned for continued growth building on 47% growth since 2005 z Continued investment in Sales and Engineering for S/I z Meter Disconnect well placed for AMI implementation z LED Indication continued reduced activity level until market returns but still profitable