Dialight plc · LSE:DIA
Dialight — H1 2006 Earnings Presentation
26 slides from Dialight's earnings presentation, Sep 18, 2006
Slide 1: Interim Results 18th September 2006
Interim Results 18th September 2006
Slide 2: Financial Highlights
Financial Highlights z Turnover increased by 16.2% to £30m (2005: £25.8m) z Strong increase in order intake over first half 2005 z Operating profit increased by 53% to £2.3m (2005: £1.5m) z Basic EPS up by 63% to 5.2p (2005: 3.2p)
Slide 3: Group profit and loss account
Group profit and loss account £m 2006 2005 Movement z Turnover 30.0 25.8 16.2% z Contribution 12.7 11.0 15.9% z Unallocated expenses (10.4) (9.5) 10.0% z Operating profit 2.3 1.5 52.5% z Profit before tax 2.6 1.4 83.8% z Earnings per share 5.2p 3.2p 62.5%
Slide 4: Sales and Contribution (£m)
Sales and Contribution (£m) 2006 2005 First Half First Half % Movement Sales Contribution Sales Contribution Sales Contribution z Components 15.8 7.6 12.4 6.4 27.1% 18.8% z Signals/Illumination 14.2 5.1 13.4 4.6 6.0%* 11.9% 30.0 12.7 25.8 11.0 16.2% 15.9% * Note: Adjusted for £0.9m returned inventor
Slide 5: Contribution Margin
Contribution Margin 2006 2005 First Half First Half Components 47.9% 51.2% Signals/Illumination 36.3% 34.4%
Slide 6: Unallocated Overheads
Unallocated Overheads £m 2005 first half 9.5 Lumidrives acquisition 0.6 European traffic signal reorganisation 0.2 Corporate cost saving (0.5) Investment in people 0.5 Other 0.1 10.4
Slide 7: Significant Cashflow Items
Significant Cashflow Items z £2.5m acquisition of Lumidrives z £0.5m ongoing cash contribution to DB pension schemes z £0.3m funding of Employee Share Plan z Working capital absorption £2.1m z 2005 final dividend payment of £0.9m
Slide 8: Summarised Cashflow
Summarised Cashflow £m Operating profit 2.3 Depreciation and amortisation 1.0 Working capital (2.1) Pension payment (0.5) Operating cashflow 0.7 Capital expenditure (0.6) Development spend (0.5) Taxation (0.5) Free cash flow (0.9)
Slide 9: Movement in Cash
Movement in Cash £m Free cash flow (0.9) Dividends (0.9) Shares acquired (0.3) Acquisitions (2.5) Interest 0.3 Net cash outflow (4.3) Opening net cash 9.8 Translation - Closing net cash 5.5
Slide 10: Business Review
Business Review
Slide 11: Components
Components z Orders up 30% z Sales up 27% z Contribution up 19%
Slide 12: Key Customers and Channels
Key Customers and Channels z Dialight does business with almost all the professional electronics companies in the world and is a key supplier to Nokia, Ericsson, Lucent, Cisco, IBM, etc. z Dialight sells both direct (as to key OEMs/CEMs) and through distributors such as Arrow, Farnell, InOne, Electr
Slide 13: Components
Components z Key OEM Relationships intact z North American Distributor POS growing z Margins stable z Expansion of worldwide sales channels z General Electronics market continues to be strong
Slide 14: North America Distributor Point of Sale
500 1,000 1,500 2,000 2,500 3,000 - Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-0
Slide 15: Signals/Illumination Highlights
Signals/Illumination Highlights z Orders up 18% z Sales up 13% * z Contribution up 12% z Acquisition of Lumidrives z License agreement with Color Kinetics z New Obstruction Products z New Traffic Signals Standards z Good progress with OEM relationships in Europe *adjusting for contract cancellation
Slide 16: Signals/Illumination Traffic
Signals/Illumination Traffic z Introduced first fully ITE compliant Traffic Light for US market z Transferred production of European Standard lights from Germany to UK z Grew OEM relationships in Europe z Sales to over 30 customers in 19 countries in Europe z Commenced volume shipments to Siemens
Slide 17: Signals/Illumination Rail
Signals/Illumination Rail z Flat sales in US z Product in evaluation in China z Product in evaluation in Russia z Discussions with a number of potential customers in Europe z Danish Rail awaiting Safety Review
Slide 18: Signals/Illumination Obstruction
Signals/Illumination Obstruction z Introduced Hazardous Location Products z Introduced new low wattage Beacon z Introduced ICAO Standard Product for European market z Developing multi country variants for Europe and Asia z Developing product for new US Wind Tower specification z New FAA Specificatio
Slide 19: New Beacon versus Old Beacon
New Beacon versus Old Beacon D264 Gen III Beacon D164 Gen II Beacon 45 Watts Power 125 Watts 12.5 Inches Height 15 Inches 30 lbs Weight 62 lbs 42 # of LEDs 432 Yes Full ICAO Compliance No Yes Hazardous Location Rated No
Slide 20: Signals/Illumination Solid State Lighting
Signals/Illumination Solid State Lighting z Lumidrives acquisition January 2006 z Successful 1st Half z Exhibited at Light and Building in Frankfurt, Lightfair in Las Vegas, Light Middle East in Dubai z Introduced Lumidrives products to Electronic Distributors – Arrow, Future, Farnell, InOne, Electr
Slide 21: LINKLED – Product Improvements
LINKLED – Product Improvements z Improvements z IP67 rated – more applications z Pre-assembled – faster installation z Multichip RGB package – better colour mixing z More lensing options – more applications z Integrated heat-sink – easier installation z Lower system costs
Slide 22: HL series Product Improvement
HL series Product Improvement z Die-cast heatsink – low cost, faster assembly z User selectable optics - less stock holding z Modular wiring options – faster installation
Slide 23: Colourdriver XP – Range Expansion
Colourdriver XP – Range Expansion z More options to suit more markets z Advanced control options – power line control z First fully functioned driver for latest LED technology – drive currents of up to 1000 mA z Additional colour channel for improved colour performance z Roll out of 2 Pat applied fo
Slide 24: Signals/Illumination Solid State Lighting
Signals/Illumination Solid State Lighting z First shipments of white hazardous location light for petrochemical application z Developed white bridge light for fluorescent replacement z Specifying white light for commercial vehicle interiors
Slide 25: Intellectual Property
Intellectual Property IP Strategy z Continued development of IP portfolio in key business areas z Synergistic licensing agreements to enable Dialight driven LED based solutions Signals Obstruction Illumination z Yellow Traffic Signal Using White z Beacon Light with Reflector and Light z Color Mixing
Slide 26: Summary
Summary z Good performance in Components z Electronics market continues at H1 pace z European Traffic positioned for good growth on top of good H1 z Steady underlying growth for Obstruction z New low wattage Beacon will fuel more adoption z HazlocLED Obstruction products starting to move into the fi