Dialight plc · LSE:DIA
Dialight — FY2009 Earnings Presentation
41 slides from Dialight's earnings presentation, Mar 3, 2010
Slide 1: Dialight plc 2009 Results
Dialight plc 2009 Results 3 March 2010
Slide 2: Agenda
Agenda Business review and outlook Financial results Q&A
Slide 3: Highlights
Highlights Turnover maintained at £77.3m (2008: £77.9m) Signals/Illumination showing good revenue growth in difficult market Record Operating profit £5.5m (2008: £5.3m) Strong Operating Cash Flow. Net cash £9.1m (2008:£4.1m) Second Interim Dividend 4.3 pence (2008:3.9 pence Final)
Slide 4: Revenues
Revenues 2009 2008 Revenue £77.3m £77.9m Signals/Illumination £46.4m £43.4m Electromagnetic components £13.3m £15.1m Indication business £17.6m £19.4m
Slide 5: Operating Profit
Operating Profit 2009 2008 Signals/Illumination £3.3m £1.7m Electromagnetic Components £0.7m £0.5m Indication Components £3.2m £4.9m
Slide 6: Indication Components
Indication Components Revenues down almost 25% (US$) versus 2008 Some recovery in H2 Fundamentals of the business unchanged Margins solid Recovery continues in 2010
Slide 7: Electromagnetic Components
Electromagnetic Components Revenues down £1.8m versus 2008 200 amp Disconnect still showing growth but slowed by design change with one customer Traditional business down with economy but showing some signs of recovery Prospects for Disconnect still promising but on thin margins
Slide 8: Signals/Illumination Revenue
Signals/Illumination Revenue 2009 2008 Revenue: £46.4m £43.4m Traffic £23.1m £24.4m Obstruction £7.2m £4.6m Transportation £10.4m £8.3m Lighting £5.7m £6.1m
Slide 9: Signals - Traffic
Signals - Traffic US traffic down due to lack of big contracts in the year and tough comparison Strong European recovery in second half to maintain revenues at 2008 levels UK performance and prospects good Margins improved Interest in street lights from customers in both US and Europe
Slide 10: Signals - Obstruction
Signals - Obstruction 50% year on year growth (again!) Sales of Red Beacons helped by second half recovery of US Wind Turbine Market New Beacon introduced end of the year New White Strobe introduced end of the year Two major contracts announced Over 1000 units sold Installed cell tower base over 80,
Slide 11: 2000 2004 2006 2009
2000 2004 2006 2009
Slide 12: Dialight
Dialight 2009 0000000000005
Slide 13: Obstruction Lighting
Obstruction Lighting
Slide 14: Illumination
Illumination Revenues down overall Industrial White Lighting sales 300% of 2008 Highly successful launch of Safesite High Bay Payback approaching tipping point Multiple street lighting trials Pipeline of new products 2010 starting strongly
Slide 15: White Light Strategy
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Slide 16: How do LEDs compare to the competition?
How do LEDs compare to the competition ? Type Efficiency lm/W Life -hours Cost Per lumen Colour x1000 $ 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 17: LED Luminaire Performance Projections
Dialight Table 4.3.3: Summary of LED Luminaire Performance Projections (at operating temperatures) Metric Package Efficacy- nr reer 108 147 164 188 degrees C) Thermal Efficiency 85% 89% 91% 05% Efficiency of Driver 85% 87% 89% 92% y ‘Oy 0, Efficiency of Fixture 80% 83% 87% 92% ee 58% 64% 70% 80% Lum
Slide 18: Projected LED Luminaire Cost Track
Dialight eo Optics os + . : - - ~ - ® Accambly ¥ 07 =PowerSupples 06 i ; BS Thermal and Metal os Bending 3 o4 BLED Devices { 03 « 02 61-4 Py ; : ’ 2009 2010 2012 2015 Figure 1. Projected LED Luminaire Cost Track, Source: DOE Manufactrring Workshop consensus 0000000000005
Slide 19: White Light LED Lamp Price vs. Fluorescent Lamp (Projection)
White Light LED Lamp Price vs. Fluorescent Lamp (Projection)
Slide 20: World Lighting Fixture Market
World Lighting Fixture Market 2010 Projection: $75 billion Parts & Accessories 14% Residential 23% Industrial Portable 7% 18% Outdoor Commercial 17% 21% Source: Freedonia
Slide 21: Why LEDs?
Why LEDs? Long Life High Efficiency Shock & Vibration Low Cost = Extreme Climates Zero Maintenance Of Ownership Low Case Temperature Precise Optical Control Instant Light Switching Cycles Colour Performance
Slide 22: 250W HPS vs 100W SafeSite Downlight
250W HPS 100W SafeSite Downlight 60% Energy Saving No Mercury or Hazardous material 10+ years expected life
Slide 23: Dow Corning
Dow Corning Product: SafeSite HZC Downlight Qty: 423 Units Location: Midland, MI Application – Silicon Plant
Slide 24: 250W HID vs Dialight 150W LED High Bay
250W HID Dialight 150W LED High Bay 40% Energy Saving 50% less weight & 75% reduced size No Mercury or Hazardous material 10+ years expected life
Slide 25: Frontline Manufacturing
Frontline Manufacturing Product: LED High Bay Qty: 59 units Location: Frontline Manufacturing Application – Warehouse
Slide 26: Rockline Manufacturing
Rockline Manufacturing Product: LED High Bay Qty: 130 units Location: Rockline Manufacturing Application – Warehouse
Slide 27: US installed base of Street & Area Light Fixtures
US installed base of Street & Area Light Fixtures 2007 Total: 131 million units Type Millions of units Area Lights 47.8 Floodlights 45.8 Street Lights 34.7 Parking Lot/Garage 3.1 Total 131.4 US DOE Report: Energy Savings Estimates of Light Emitting Diodes in Niche Lighting Applications 2008
Slide 28: Pittsburgh Street Light Trial
Pittsburgh Street Light Trial Product: StreetSENSE LED Street Light Qty: 3 units Location: Pittsburgh, PA Application: Residential road
Slide 29: Dialight US Street Light Trials
Dialight US Street Light Trials Pittsburgh, PA - 3 St. Peters, MO - 4 Pocatella, ID - 1 Mobile, AL - 1 Tacoma, WA - 5 Longmont, CO - 1 Indio, CA - 4 Macob Co, MI - 1 Brea, CA - 1 VA Beach, VA - 3 Fargo, ND - 3 O'Fallon, MO - 4 Pierre, SD – 1 Riverside, CA - 2 Stevens Point, WI - 1
Slide 30: Edinburgh Street Light
Product: LED Street Light Qty: 4 units Location: Edinburgh, Scotland Application: Princes Street
Slide 31: Outlook
Outlook Signals/Illumination positioned for continued growth with stronger margins Improved LED efficiency and cost is moving the adoption point Pipeline of new and improved White Lighting products Continued reengineering and cost reduction LED Indication showing recovery and still a strong profit a
Slide 32: George Ralph - Finance Director
George Ralph- Finance Director
Slide 33: Summary Profit & Loss
Summary Profit & Loss 2009 £M 2008 £M Revenue 77.3 77.9 Gross Profit 18.7 16.3 Gross Profit % 24.2 20.9 Overhead costs (13.2) (11.0) Operating profit 5.5 5.3 Net financing cost (0.2) 0.3 Profit before tax 5.3 5.6 Tax (2.0) (2.2) Profit from cont. ops 3.3 3.4 Exceptional profit 2.1 - Retained profit
Slide 34: 2009 Segments result
2009 Segments result Emech Indication Signals/ Total £M Components £M Illum £M £M Revenue 13.3 17.6 46.4 77.3 Contribution 3.2 9.3 18.0 30.5 Contribution % 23.8 52.7 38.8 39.3 Overheads (2.5) (6.1) (14.7) (23.3) Segment profit 0.7 3.2 3.3 7.2
Slide 35: Taxation
Taxation Effective tax rate in 2009 was 37.7% Effective tax rate in 2008 was 38.5% Issues impacting Profits in high tax locations Unrelievable UK losses
Slide 36: Dividends and Earnings Per Share
Dividends and Earnings Per Share 2009 2008 Dividends per share 6.6p 6.0p Basic EPS 17.5p 11.2p Dividend cover 2.7 times 1.9 times Adjusted EPS 10.2p 11.2p Adjusted Dividend cover 1.5 times 1.9 times
Slide 37: Summary Balance Sheet
Summary Balance Sheet 2009 £M 2008 £M Non current assets 17.8 19.8 Cash 9.1 4.1 Other current assets 27.3 33.3 Current liabilities (12.1) (13.8) Non current liabilities (2.0) (5.9) Net Assets 40.1 37.5
Slide 38: Working Capital
Working Capital 2009 £M 2008 £M Inventories 9.2 13.0 Trade and other 18.2 20.4 receivables Trade and other payables (11.0) (11.1) Working Capital 16.4 22.3
Slide 39: Summarised Cash flow
Summarised Cash flow 2009 £M 2008 £M Operating cash 8.3 8.1 Working capital 2.7 (2.1) Cash from operations 11.0 6.0 Tax/financing (1.6) (2.3) Investing activities (2.5) (2.4) Financing activities (1.9) (4.2) Net cash generated 5.0 3.1
Slide 40: Cash flow
Cash flow Inventory – strong inventory management performance giving significant reduction Working capital generated cash rather than consumed cash Cash - Continuing strong cash flow from Operations with debt free balance sheet
Slide 41: Summary
Summary Profitable business in difficult market conditions Strong 2nd half performance Cash generative Debt free balance sheet All above provides good platform to build on in 2010 and beyond