Dialight plc · LSE:DIA
Dialight — H1 2008 Earnings Presentation
30 slides from Dialight's earnings presentation, Jul 29, 2008
Slide 1: Interim Results 29th July 2008
Interim Results 29th July 2008
Slide 2: Financial Highlights
Financial Highlights z Turnover increased by 20% to £34.5m (2007: £28.9m) z All business segments showing good revenue growth z Operating profit up by 104% to £2.0m (2007: £1.0m) z Profit before tax up by 68% to £2.1m (2007:£1.3m) z Basic EPS of 4.2p (2007:2.5p)
Slide 3: Financial Highlights
Financial Highlights 2008 2007 % z Revenue £34.5m £28.9m 20% z Signals/Illumination £19.0m £14.8m 28% z Electromagnetic components £6.0m £5.1m 18% z Indication business £9.5m £8.9m 6%
Slide 4: Signals/Illumination Revenue
Signals/Illumination Revenue 2008 2007 z Revenue £19.0m £14.8m z Traffic £10.2m £8.1m z Obstruction £2.0m £1.4m z Transportation £3.8m £3.2m z Lighting £3.0m £2.1m
Slide 5: Segment Results Signals / Illumination
Segment Results Signals / Illumination 2008 2007 £m £m Revenue 19.0 14.8 z Contribution 6.0 4.9 z Overhead costs (5.7) (5.4) z Segment result 0.2 (0.5) Contribution % 31.4% 33.2%
Slide 6: Segment Results Components
Segment Results Components Electromagnetic Components Indication Business 2008 2007 2008 2007 £m £m £m £m Revenue 6.0 5.1 Revenue 9.5 8.9 Contribution 1.5 1.2 Contribution 5.0 5.0 Overhead costs (1.5) (1.4) Overhead costs (2.6) (2.6) Segment results (-) (0.2) Segment results 2.4 2.4 Contribution % 2
Slide 7: Summarised Cash flow
Summarised Cash flow £m Operating profit 2.0 Depreciation and amortisation 1.1 Working capital (0.6) Pension payment (0.2) Operating cash flow 2.3 Capital expenditure (0.6) Development spend (0.4) Taxation (1.0) Free cash flow 0.3
Slide 8: Movement in Cash
Movement in Cash £m Free cash flow 0.3 Dividends (1.2) B Shares redeemed (2.0) Own shares purchased (0.2) Interest 0.2 Net cash outflow (2.9) Opening net cash 6.6 Translation (0.2) Closing net cash 3.5
Slide 9: Dividends and Earnings Per Share
Dividends and Earnings Per Share 2008 2007 z Dividends per share 2.1p 1.9p z Basic EPS 4.2p 2.5p z Dividend cover 1.99 times 1.33 times
Slide 10: Segment Revenues
Segment Revenues 2008 1H Sales (£M) 2007 1H Sales (£M) 6 5.1 14.8 19.9 9.5 Signals/Illumination 8.9 Indication Disconnect
Slide 11: Indication Components
Indication Components z Sales up 6% against H1 2007 z Distributor Point of Sales up 11% z OEM demand up z Contribution margin affected by commodity inflation z Price increases implemented for H2 z Outlook for business is stable given economic conditions z Disposal project suspended
Slide 12: Electromagnetic Components
Electromagnetic Components z Orders up 19% z Sales up 18% z US Disconnects continue to be promising z Volume shipments to US increasing z Targeting further Automatic Meter customers
Slide 13: Signals/Illumination
Signals/Illumination H1 2008 £19.0M H1 2007 £14.8M 3.8 3.2 10.2 8.1 3 2.1 Traffic Obstruction Illumination 2 Transportation 1.4
Slide 14: Traffic
Traffic z 25% Revenue growth year on year z Shipments to Miami Dade major influence in H1 z European Traffic Sales increase by 40% z European customer base increased z Price movement offset by cost reduction
Slide 15: Obstruction
Obstruction z Revenues increased 40% half on half z US Wind Turbine Market strong z First White Strobe Sales to Europe Wind Market z Solid progress in adoption of White Strobe in North America
Slide 16: Obstruction – Opportunity for growth
Obstruction –Opportunity for growth 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 l
Slide 17: Transportation
Transportation z Sales increased by 27% half on half z Majority sales to US Transit Bus Market z Military Vehicle sales $1m z Potential for white light for internal illumination z Oil price may drive more use of buses?
Slide 18: Lighting
Lighting z Sales up 40% z Growth both sides of Atlantic z Agreement signed in UK with Iluma z Agreement signed in USA with Juno Lighting z Good progress with Industrial White
Slide 19: How do LEDs compare to the competition? (July 2008)
How do LEDs compare to the competition ? (July 2008) 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 0.001 60 - 90 Halogen & 8 -22 2 - 10 0.0002 100
Slide 20: Rapid Improvement in White LEDs
Rapid Improvement in White LEDs
Slide 21: White Lighting
White Lighting z Introduced “Safesite” Hazardous Location Downlight H2 07 z Designed to replace 150 watt High Intensity Discharge Light z Installed base $250m plus for Refinery Market z H1 Sales in line with plan z Strong value proposition for both Hazardous and “Rugged” Markets z Over 40% Power Sav
Slide 22: Safesite - what is the advantage?
Safesite- what is the advantage?
Slide 23: Break the Paradigm! Efficiency?
Break the Paradigm! Efficiency? Typical Dialight 150W SafeSite™ HID HL LED C1D2 16000 4310 Lamp/LED Output (lumens) 7349 3344 Fixture Output (lumens) 3707 3217 Target Area Illumination (lumens) 167 95 Power (watts) 39 35 Fixture Efficiency lumens/watt) 22 34 Target Area Efficiency (lumens/watt) z Di
Slide 24: Inefficient Light Fixture!
Dialig nt Inefficient Light Fixture!
Slide 25: Sharp beam - no pollution/no wasted light
Sharp beam- no pollution/no wasted light
Slide 26: Wasted Light!
Dialig nt Wasted Light!
Slide 27: "Rugged" Safesite Application
“Rugged” Safesite Application
Slide 28: Lights on during the daytime!
Lights on during the daytime!
Slide 29: Who is there to see these lights?
Who is there to see these lights?
Slide 30: Continued Strategy
Continued Strategy z Identify sizeable regulated markets with potential LED value proposition z Bring technology to bear along with improving LED performance and cost z Look at different ways to manage light z Qualify product to difficult market regulation z Register IP where possible to protect the