Lpa Group Plc · LSE:LPA
Lpa — Investor Presentation (October 2012)
49 slides from Lpa's investor presentation, Oct 11, 2012
Slide 1: Long Life Reliability does not cost the earth
Long Life Reliability does not cost the earth
Slide 2: Disclaimer – part I
Disclaimer – part I This corporate presentation document and its content (the “Corporate Presentation”) have been prepared by LPA Group Plc (the “Company”) for informational purposes only. This Corporate Presentation is confidential and should not, unless otherwise agreed in advance in writing by th
Slide 3: Disclaimer – part II
Disclaimer – part II i. persons having professional experience in matters relating to investments, within the meaning of article 19 of FSMA (Financial Promotion) Order 2005 (the "FPO"); ii. high net worth bodies within the meaning of article 49 of the FPO, including corporations, unincorporated asso
Slide 4: Recovery underway, 2013 a year of transition, growth ahead
Recovery underway, 2013 a year of transition, growth ahead Presentation to analysts and investors 11 October 2012
Slide 5: LPA Group Structure
LPA Group Structure LPA Group Plc Peter Pollock Michael Rusch Per Staehr Non-Executive Chairman Group Chief Executive Non-Executive Director Steve Brett Finance Director Electro-Mechanical Added Value Electro-Mechanical LED Based Lighting Transport+ Distribution LPA Niphan Systems LPA Excil Electron
Slide 6: Who We Are
Who We Are • Light & Power Accessories founded 1908, origins in 19th Century • Designed and manufactured first weatherproof electrical connector c.1860 • Market leading designer, manufacturer and supplier of LED based lighting and electro-mechanical systems; added value component distributor • UK ba
Slide 7: Major Customers
Major Customers Rail Alstom UK, France, Italy, Spain Bombardier UK, Belgium, France, Sweden, Australia Downer EDI Rail Australia Hitachi Japan Kinki Sharyo Japan Nippon Sharyo Japan London Underground UK MTRC Hong Kong SMRT Singapore SNCF France Siemens UK, Germany TRSC Taiwan Wabtec UK Aerospace an
Slide 8: Worldwide sales presence
Worldwide sales presence LPA Worldwide Sales & Overseas Representation Rest of World
Slide 9: Where We Have Been
Where We Have Been Develops leading Sudden, protracted delay Re-location plans announced position in in production orders Significantly improved application of LED Extremely difficult trading trading performance technology conditions Major contracts won 2005 2006 2007 2008 2009 2010 2011 2012 LPA TO
Slide 10: The LPA Recovery Story
The LPA Recovery Story • Year ended 30 September 2011: recovery underway – Revenue up 17.7% to £17.3m (2010: £14.7m) – Profit before tax £400,000 (2010: loss of £458,000) – Diluted earnings per share 2.92p (2010: loss per share of 3.35p) – Final dividend increased 25% to 0.50p (2010: 0.40p), total f
Slide 11: Our marketplaces offer opportunities
Our marketplaces offer opportunities • UK Rail vehicle market set for growth – Thameslink, CrossRail, 500+ additional vehicles in Cost Period 5*(2014-19), Cascade Refurbishments, Vehicle Life Extensions, Vehicle Upgrades, Vehicle Compliance, European Rail Traffic Management System (ERTMS), Few vehic
Slide 12: UK Rail Market
UK Rail Market UK Rail market is growing significantly – More than 45% growth in passenger journeys in the last decade – 8% in the last year – 16000+ railway vehicles in the UK, > £600M maintenance spend per annum – New vehicles being sourced • Reliability, Functionality and Performance are key to T
Slide 13: Property
Property • Tudor Works Saffron Walden is at the end of its useful life – Promoted re-designation in draft local plan as development site for 20+ houses – Outline Planning Application for up to 24 houses submitted in June 2012 – Application due to be considered by Planning Committee in November 2012
Slide 14: Strategy for growth
Strategy for growth • Further develop LED based lighting opportunities, in addition to Rail vehicles, in Infrastructure, Hazardous Areas and Commercial Markets in UK, Europe and Worldwide. • Further develop Transport+ market in UK in response to growing demand. • Continue to focus Electro-mechanical
Slide 15: 2013 - a year of transition
2013 - a year of transition • Objectives for 2013 – Obtain Satisfactory Outline Planning Permission (SOPP) for Tudor Works, Saffron Walden – Based on SOPP, enter into conditional contract for sale of Tudor Works to house builder – Refurbish and upgrade Shire Hill facility – Relocate Tudor Works acti
Slide 16: Financial Overview - 1
Financial Overview - 1 2009 2010 2011 2012 2013 Actual Actual Actual Broker* Broker* Sales £m 13.72 14.72 17.32 18.79 20.02 Op profit £m 0.21 (0.37) 0.43 0.80 0.92 PBT £m 0.19 (0.46) 0.40 0.78 0.80 EPS P 1.24 (3.35) 2.93 5.9 5.9 Tax rate % 24.1 16.4 16.3 12.0 14.0 Dividend P 0.9 0.4 0.9 1.0 1.1 EBIT
Slide 17: Financial Overview - 2
Financial Overview - 2 2009 2010 2011 Balance sheet Actual Actual Actual Working capital £m 2.63 2.83 2.42 Fixed assets £m 2.03 1.79 1.66 Net debt £m (1.40) (1.88) (1.16) Deferred tax £m 0.02 0.09 0.05 3.28 2.83 2.97 Intangibles £m 1.29 1.33 1.32 Pension liability £m (0.10) (0.20) - Net assets £m 4.
Slide 18: Financial Overview - 3
Financial Overview - 3 2009 2010 2011 Sales split by division Actual Actual Actual Electro-Mechanical £m 6.6 7.1 9.0 48% 48% 52% Lighting £m 2.7 3.8 4.7 20% 26% 27% Distribution £m 4.4 3.8 3.6 32% 26% 21% LEDs included within Lighting £m 1.2 1.6 2.4 Transport+ included within Electro-Mech £m - - 0.2
Slide 19: Financial Overview - 4
Financial Overview - 4 2009 2010 2011 Sales split by market Actual Actual Actual Rail £m 6.5 8.0 10.6 47% 54% 62% Non-rail lighting £m 0.2 0.1 0.4 2% 1% 2% Aerospace and defence £m 2.2 1.9 1.8 16% 13% 10% Ground support £m 1.1 1.1 1.1 8% 8% 6% Other £m 3.7 3.6 3.4 27% 24% 20%
Slide 20: Value Added Distribution
Sector presentation: Value Added Distribution Serving the Rail, Aerospace and Defence markets 45 Years of service and experience Rail and Aerospace specific quality accreditations Direct accounts with OEM and 1st tier customers including Airbus, BAe Systems, Bombardier, Augusta Westland, Thales and
Slide 21: Value Added Distribution Suppliers
Sector presentation: Value Added Distribution Suppliers Existing • Amphenol Air-LB Connectors, Pipe Clamps and Cable Clamps • STPI Group Hermetic Relays and Relay systems • LMB Fans • Mors Smit Railway Relays • CBI Circuit Breakers • Schaltbau Contactors and Switches Additions This Year • Amphenol U
Slide 22: Value Added Distribution
Sector presentation: Value Added Distribution 2013 Objectives • Maintain existing applications and business • Add new suppliers & new technology • Grow and strengthen sales force • Add services to customers • Introduce final assembly of some product lines to increase added value
Slide 23: Electro-Mechanical: Aircraft Support
Sector presentation: Electro-Mechanical Aircraft Support • Ground Power Connectors - harnesses, plugs – Dominant market position in following markets - UK (90%), France (90%), Australia (90%) - £2.0M – Original Equipment manufacturers (£650k) & replacement (£1.3M) – Targeting new countries by partne
Slide 24: Electro-Mechanical: Metal Plugs and Sockets
Sector presentation: Electro-Mechanical Metal Plugs and Sockets • Niche, high added value product • High fire performance - low smoke & toxicity • Hostile environments • Applications – London Underground station refurbishments – Crossrail stations – Maritime cranes - ships & docks – Boat harnesses -
Slide 25: Electro-Mechanical: Rail Passenger Vehicles
Sector presentation: Electro-Mechanical Rail Passenger Vehicles • New Build Projects – UK and global markets – Large values – Sydney 66 train sets (£2.8M), Taiwan EMU800 & Tilting Train 2 (£2.2M) – Generates Installed base and legacy opportunities – Significant Opportunities to be bid: • Thameslink
Slide 26: High quality, vertically integrated manufacturing
Sector presentation: Electro-Mechanical High quality, vertically integrated manufacturing • Highly Flexible manufacturing resource • Flexible procurement locally and from low cost countries • Highly Automated CNC Machine Shop ensures repeatability, quality and low minimum order quantities • Automati
Slide 27: Transport+
Sector presentation: Electro-Mechanical Transport+® • Rail Vehicle Maintenance Depots have limited resources, focussed on routine maintenance. • The growing requirement for Modifications, Upgrades and Solution Provision is frequently subcontracted • New business offering Transport+® identified and i
Slide 28: Transport+
Sector presentation: Electro-Mechanical Transport+® • Transport+® for the customer – Is competitive compared with larger players – Minimises risk for the Train Operator or Owner – Shortens timelines – Eliminates • cost and risk of multiple single discipline suppliers • project management • Transport
Slide 29: Transport+: Significant repeatable projects completed
Sector presentation: Electro-Mechanical Transport+® Significant repeatable projects completed • 172 Cab desk upgrade modules • 184 CCTV, ethernet backbone and Jumper installations • 600 Door Threshold Tread plates delivered • Toilet door locks designed
Slide 30: Transport+: Customers and market potential
Sector presentation: Electro-Mechanical Transport+® • Customers – say LPA are innovative and good to work with – say LPA has demonstrated competence across a broad spectrum – Relationships with key players established – TOCs and ROSCOS • Market potential – Core focus is 12000 vehicles stabled in Dep
Slide 31: LED Lighting: Why the move into LED?
Sector presentation: LED Lighting Why the move into LED? • LED lighting is ‘the next big thing’ – Fragmented market with enormous growth potential – Adoption rates accelerating sharply – driven partly by regulation – The global LED lighting market is growing rapidly (from EUR 7 billion in 2010 to EU
Slide 32: LED Lighting: The LPA Proposition
Sector presentation: LED Lighting The LPA Proposition • LPA is a designer and manufacturer of technology leading LED based lighting solutions. • Our expertise includes design and manufacture of LED light engines, drive electronics and control systems, and complete lighting solutions. • LPA LED Light
Slide 33: LED Lighting: The LPA Proposition
Sector presentation: LED Lighting The LPA Proposition • The LED lighting business originated in the passenger rail vehicle interior lighting sector. • Target growth in high added value market sectors including: – Europe and other high added value export markets – Transport Infrastructure. – Tunnels
Slide 34: LED Lighting: New product development
Sector presentation: LED Lighting New product development • Our product range is constantly expanding. • R&D spend is £0.5m per annum and rising. • Our engineers have a wide range of expertise including LED, electronics, mechanical, materials engineering and project management. • We have specialists
Slide 35: LED Lighting: The Technology
Sector presentation: LED Lighting The Technology • The LED is a solid state electronic device, there are no fragile filaments or gas discharge processes to fail. • LPA’s In-house expertise in the fields of drive electronics, thermal management and light capture has resulted in LED based products ach
Slide 36: LED Lighting: Summary
Sector presentation: LED Lighting Summary LED Lighting • Large and fast growing market • Major opportunity to leverage our existing rail based offer into selected target sectors • Significant orders won from Siemens for Munich and Warsaw Metros in 2012 • Significant orders won for hazardous area lig
Slide 37: LPA Group Major Factors in 2013
LPA Group Major Factors in 2013 • Investing in people for growth • Growing LED Lighting and Transport+® rapidly • Extending Normanton LED Lighting Facility • Refurbishing Shire Hill • Relocating electro-mechanical activities from Tudor Works to Shire Hill to increase operational efficiency • Selling
Slide 38: Thank you for listening Q&A
% Q&A Long Life Reliability does not cost the earth
Slide 39: Appendix
Ss Long Life Reliability does not cost the earth
Slide 40: Value Added Distribution: Aerospace, Defence, Naval Markets
Sector presentation: Value Added Distribution Aerospace, Defence, Naval Markets
Slide 41: Value Added Distribution: Rail Market
Sector presentation: Value Added Distribution Rail Market PROJECT REFERENCES • Diesel Multiple Units – Classes: 142, 144, 150, 153, 158, 159, 168,170, 172 • Electric Multiple Units – Classes: 313, 315, 317, 319, 377, 379, 455, 475, 476, 442, 456 • London Underground Limited – Lines: Bakerloo, Centra
Slide 42: High Reliability Rail Vehicle Products
Sector presentation: Electro-Mechanical High Reliability Rail Vehicle Products • 40 years experience in Rail market • Designed, simulated and type tested to meet UK and International Standards • Battery Rafts and Under frame electrical enclosures • Connectors – Robust – High density – Function and c
Slide 43: Electro-Mechanical: Long Life Reliability
Sector presentation: Electro-Mechanical Long Life Reliability Class 390, Pendolino Heavy Level 3 overhaul - 2.5M miles, No Jumper replacement required Class 465, heavy overhaul - First fleet after 20 years service; Jumper replacement programme Class 334, Juniper 7 year inspection Pristine - good for
Slide 44: LED Lighting: Current customers
Sector presentation: LED Lighting Current customers include: • Siemens, UK, Austria and Germany. • Alstom, UK, France and Italy. • Bombardier Worldwide. • Hitachi UK and Japan. • Downer EDI Australia. • Kinki Sharyo, Japan. • SNCF, France. • South West Trains UK. • A-Belco Group UK. • Transport for
Slide 45: LED Lighting: Halogen replacement applications
Sector presentation: LED Lighting Halogen replacement applications • Integrated or centralised power supply • Threshold lights • Downlights • Ship Balcony Lights • Reading Lights
Slide 46: LED Lighting: LumiPanel
Sector presentation: LED Lighting LumiPanel • Features • 20 mm thick • Vandal resistant (IK10 rated-5Kg from 400mm). • Connects directly to power source (AC or DC). • Typically 17 years service life. • Up to 40% energy saving. • Fire compliant (BS6853 1a) • Applications • London Underground Central
Slide 47: LED Lighting: LumiMatrix
Sector presentation: LED Lighting LumiMatrix • Features • Uses Power LEDs in light engines for industrial applications. • Uses hundreds of chip LEDs achieving extremely high levels of uniformity in a Luminaire just 30 mm thick • Flexible LED pitch and form. • Connects direct to the available power s
Slide 48: LED Lighting: LumiTile
Sector presentation: LED Lighting LumiTile • Features • Uses Matrix technology in a 600mm x 600mm or 600mm x 1200mm standard ceiling tile format. • Uses hundreds of chip LEDs to create a homogenous light source. • Equivalent output to a 4 x 18W T8 fluorescent fitting. • 30% energy saving compared to
Slide 49: LED Lighting: LumiStrip
Sector presentation: LED Lighting LumiStrip • Features • Retrofit or new installation • Connects direct to the power source. • Fixes directly to the luminaire gear tray. • Typically 17 years service life. • 25% energy saving compared to fluorescent. • DC and AC versions available. • Applications • P