Dialight plc · LSE:DIA
Dialight — The Roxboro Group — FY2003 Earnings Presentation
26 slides from Dialight's earnings presentation, Mar 15, 2004
Slide 1: The Roxboro Group PLC Preliminary Results 2003
The Roxboro Group PLC Preliminary Results 2003 15th March 2004 preliminary results 2003
Slide 2: 2003 - the opening challenge
the roxboro group plc 2003 - the opening challenge y Economic climate continued to be difficult in key markets y Telecoms market remained soft y Process segment remained flat y Oil and Gas segment was mixed y Aerospace was beginning to improve y Very few bright spots y Market capitalisation £82milli
Slide 3: 2003 - our response
the roxboro group plc 2003 - our response y Disposal of aerospace sensors business for £55.7million y Returned £42.6million to shareholders y Relocated Dialight production from USA to Mexico y Drove hard on RoBuST programmes y Kept costs tight y Redirected selling effort y Maintained R&D spend preli
Slide 4: the result
the roxboro group plc the result y Sale proceeds 61% of market cap. at the time of the deal y Generated shareholder value y Created more focus in Group y Reduced operating and central costs y Positioned Group for new growth preliminary results 2003
Slide 5: Financial Review
Financial Review 2003 preliminary results 2003
Slide 6: Group profit and loss account
the roxboro group plc group profit and loss account £m 2003 2002 y Turnover 136.8 156.0 Continuing Operations 122.2 124.6 Discontinued operations 14.6 31.4 y Operating Profit 8.2 8.6 Continuing operations 5.4 5.2 Discontinued operations 2.8 3.4 y Interest (0.3) (0.9) y Profit before goodwill & excep
Slide 7: Group profit and loss account - continued
the roxboro group plc group profit and loss account-continued £m 2003 2002 y Profit before taxation 22.3 6.6 Tax (2.6) (2.5) 19.7 4.1 Dividends (3.0) (5.7) y Retained Profit 16.7 (1.6) y Operating Margin* 6.0% 5.5% y Trading Margin ** 5.8% 4.9% * before profit on disposal, goodwill, amortisation and
Slide 8: Continuing operations first and second half comparison
the roxboro group plc continuing operations first and second half comparison £m First Half Second Half % Movement Sales Profit Sales Profit Sales Profit Dialight 27.6 0.3 30.3 0.7 10% 133% Solartron 31.1 2.8 33.2 3.8 7% 36% 58.7 3.1 63.5 4.5 8% 45% Central (1.1) (1.1) - 2.0 3.4 70% Interest (0.3) -
Slide 9: Profit on disposal of Weston
the roxboro group plc profit on disposal of Weston £m Initial Sales Proceeds 55.0 Cash adjustment net of assumed tax 0.7 55.7 Expenses (2.4) 53.3 Less cost of investment – net assets (16.0) – goodwill previously written off (21.7) (37.7) Profit on disposal 15.6 Tax due on disposal (0.2) Exit P/E (20
Slide 10: Dividends and earnings per share
the roxboro group plc dividends and earnings per share 2003 2002 y Dividends per share 10.0p 10.0p y EPS Basic 45.4p 7.2p Adjusted 12.6p 9.1p y Dividend Cover Basic 6.5x 0.7x Adjusted for profit on disposal 1.4x 0.7x y Continuing Operations 0.8x - y Cash Cover - continuing operations 1.6x - prelimin
Slide 11: Movement in net debt
the roxboro group plc movement in net debt 2003 2002 £m Free Cash Flow 6.8 8.0 y Disposals 52.7 - y Issue of ordinary shares 0.1 - y Redemption of B shares (40.1)- y Share issue expenses (0.5)- y Dividends (4.9)(5.7) y Acquisitions - (4.8) Net Cash Inflow/(Outflow) 14.1 (2.5) y Opening Net Debt (11.
Slide 12: Operational Review
Operational Review 2003 preliminary results 2003
Slide 13: Solartron
Operational Review SOLARTRON preliminary results 2003
Slide 14: Solartron business by market sector
the roxboro group plc Solartron business by market sector 19% 14% 12% Level & Flow Measurement in Process Sector Flow Metering in Oil and Gas 55% Gauging Products in Metrology Sector Laboratory Instruments for Materials Analysis preliminary results 2003
Slide 15: Solartron overview
the roxboro group plc Solartron overview y Good tight performance in slack markets y Margins in double digits y Strong H2 performance up 36% up on H1 y RoBuST initiatives making a difference y Good growth in Service Business y Brighter environment towards year end preliminary results 2003
Slide 16: Solartron highlights
the roxboro group plc Solartron highlights y Dualstream II granted international recognition y Sakhalin contract expanded and on schedule y Won first Dualstream II contract in China y Completed North Sea contract for Shell y Acquired novel radar technology y Ultrasonic product family launched y Mark
Slide 17: Solartron - key drivers in 2004
the roxboro group plc Solartron -key drivers in 2004 y Overall expected market recovery y New product introductions y Geographic expansion y Dualstream II Wet Gas Growth y Far East appetite for laboratory instruments y Increasing glass gauging preliminary results 2003
Slide 18: Dialight
Operational Review DIALIGHT preliminary results 2003
Slide 19: Dialight - 2003 key points
the roxboro group plc Dialight - 2003 key points y Significant operational issues related to supply chain transfer to Mexico y Gross Margin Increase 17% in $ and 2.3% in COS y Inventory reduced 8% y Sales up 7% despite fall in Traffic pricing y Material and direct labour savings yet to be fully real
Slide 20: Dialight - Optoelectronics
the roxboro group plc Dialight -Optoelectronics y Distributor POS up strongly from Q4/02 y Expanded distribution channels - Future Electronics and Regional Industrial y Continued strong position in Distribution and with proprietary products y Fourth quarter - strongest bookings for 12 quarters y Con
Slide 21: Dialight - Signals - traffic
the roxboro group plc DIalight - Signals - traffic y US Traffic sales up 7% in units but slightly down in turnover y Major cost reductions implemented giving improved margins y Strong dealer network protecting small/medium business y Major contracts bid selectively- wins at NC, CT, KY, Detroit, Edmo
Slide 22: Dialight - Signals
the roxboro group plc Dialight - Signals y Expect good growth y Continued cost reductions y FAA Obstruction Contract to ship in 2004 y Balance of NYCT Rail contract to ship with follow on expected y New products differentiation continues preliminary results 2003
Slide 23: Dialight - Lighting
the roxboro group plc Dialight - Lighting y Luxeon Design Centre established y Partnering with Lumileds and Future y 2003 was a year of prospecting y Strategy is similar to Opto - selling to OEMs y Trial OEM Customers in Lifts / Street Sign / Marine / Vending / Theatre / Swimming y Secured substanti
Slide 24: Dialight - Prospects
the roxboro group plc Dialight - Prospects y Continued electronics market recovery expected y Dialight leveraged to recovery y Further Signals cost reductions yet to show y Shipment of new technology products to begin in 2004 y Improving Mexican improvements y Anticipate a much improved overall perf
Slide 25: Summary
the roxboro group plc Summary y Conditions more favourable than past 3 years y Relocation project completed y New product introductions y Exciting prospects in Lighting y Looking for better progress in 2004 y Group mission remains generation of shareholder value preliminary results 2003
Slide 26: The Roxboro Group PLC Preliminary Results 2003
The Roxboro Group PLC Preliminary Results 2003 15th March 2004 preliminary results 2003