Dialight plc · LSE:DIA
Dialight — Shareholder Meeting (April 2013)
35 slides from Dialight's shareholder meeting presentation, Apr 25, 2013
Slide 1: Dialight plc 2013 AGM
Dialight Dialight plc 2013 AGM April 25th 2013 1
Slide 2: Highlights of 2012
Highlights of 2012 Dialight • Profit before tax from continuing operations increases 26.7% to £19.7m (2011: £15.5m) • 2012 Lighting Revenues increase 72.7% to £45.5m (2011: £26.4m) • Lighting Contribution Margin increased by 8.6 points to 44.3% • Disposal of Utility Switch business complete • Operat
Slide 3: Group History Since Introduction of Lighting
Group History Since Introduction of Lighting Dialight * 2012 and 2011 2012* 2011* 2010 2009 Continuing Basis £m £m £m £m Revenue 115.1 102.5 99.2 77.3 Profit before tax 19.7 15.5 11.3 5.3 Operating Cash flow 22.6 17.7 15.1 11.0 Net Cash 15.0 13.7 10.4 9.1 Net Assets 63.0 54.8 46.2 40.1 Return on Sal
Slide 4: Full Year Segments
Full Year Segments Dialight 2012 2011 £m £m Inc / (Dec) Signals Revenue 48.1 52.5 Contribution 22.6 25.1 EBIT 11.3 11.8 (4)% Lighting Revenue 45.5 26.4 Contribution 20.2 9.4 EBIT 8.6 2.0 323% Components Revenue 21.5 23.7 Contribution 10.3 12.4 EBIT 3.1 4.9 (37)% 4
Slide 5: Business Overview
Dialight Business Overview 5
Slide 6: Components
Components Dialight • Niche with over 15,000 customers – strong profit and cash generator • Revenues £21.5m compared with £23.7m • Profitability impacted by mix and Malaysia start up costs expensed • Business expected to be flat in 2013 • Fundamentals of the business unchanged • Demand driven by Ser
Slide 7: Signals
Signals Dialight • Niche – strong profit and cash generator • Revenues £48.1m compared with £52.5m with weak traffic down 19% and 2% obstruction growth • Contribution margin percent flat • Business expected to be flat to small growth in 2013 7
Slide 8: LED Obstruction Lighting
LED Obstruction Lighting Dialight 8
Slide 9: Signals - Obstruction
Signals ‐ Obstruction Dialight • 2% growth to £18.2m • Growth drivers for the future are:‐ 1. US Cell Tower market – 80,000 towers to light, around 10,000 done Remaining market worth over $200m. Competition arrived in 2012 2. US Broadcast Tower market – 2000+ Towers to light. Market worth over $200m
Slide 10: Signals - Obstruction
Signals ‐ Obstruction Dialight • Change in market dynamics • Sales to major tower operators will be direct, not through resellers • Product will be integrated system offering remote monitoring and control with hosting options • System is common to both Medium (Cell Tower) and High Intensity (Broadca
Slide 11: Lighting – The Engine for Growth
Lighting – The Engine for Growth Dialight 11
Slide 12: How Big is the Market?
Dialight How Big is the Market? • Industrial Lighting Sales Globally estimated to be $5Bn annually (Freedonia study) • Hazardous Lighting is estimated to be 20% of Industrial Lighting (Recent IHS study gives EMEA annual hazardous lighting market size as $425m in 2012) • Dialight addresses the instal
Slide 13: Vertically Focused – Hazardous & Industrial
Vertically Focused – Hazardous & Industrial Dialight Oil, Gas & Petrochem $3bn Heavy Industrial $2.5bn • Upstream (exploring & • Steel processing drilling) • Pulp & paper • Downstream (refining) • Auto plants • Transportation (terminals • Aircraft plants & pipelines) Power Generation $3bn Chemical &
Slide 14: Application Review – Refinery Lighting
Application Review – Refinery Lighting Dialight Scale of opportunity ~ 660 refineries worldwide ~ 6,700 lights per refinery • Total opportunity: $2.5Bn • Opportunity per refinery: $4M How we calculate: Typical Lighting Applications: 134,000 BPD = 6,700 light fixtures Process Areas Steam Rooms Catwal
Slide 15: Application Review – Power Gen Plants
Application Review – Power Gen Plants Dialight Scale of opportunity Total opportunity for coal and nuclear plants: $2.7Bn ~ 1,700 Coal plants worldwide ~ 2,000 lights per coal plant • Opportunity per coal plant: $1.5M 193 Nuclear plants worldwide ~ 1,100 lights per nuclear plant • Opportunity per nu
Slide 16: Application Review – Steel Processing
Application Review – Steel Processing Dialight Scale of opportunity ~ 2,300 steel mills worldwide ~ 1,500 lights per mill • Total opportunity: $1.7Bn • Opportunity per steel mill: $750K How we calculate: Typical Lighting Applications: 643,000 metric tonnes = 1,500 light fixtures Cranes Blast Furnace
Slide 17: Prospect Review – Large Auto Manufacturer
Prospect Review – Large Auto Manufacturer Dialight Scale of opportunity 75+ global plants ~ 8,000 fixtures per plant • Total opportunity: $280M • Opportunity per plant: $3.75M Typical Lighting Applications: Stamping Engine Transmission 17
Slide 18: Prospect Review – Large Food Manufacturer
Prospect Review – Large Food Manufacturer Dialight Scale of opportunity ~ 470 global facilities ~ 1,300 fixtures per facilities • Total opportunity: $330M • Opportunity per auto plant: $700K Typical Lighting Applications: Process Cold Storage Quality Packaging 18
Slide 19: Identified EPC Global Capital Projects
Identified EPC Global Capital Projects Dialight Europe 7,532 Projects Asia 17,923 Projects North America 14,763 Projects Middle America 703 Projects Africa 1,040 Projects South America Oceania 5,581 Projects 1,343 Projects Total Projects Estimate ‐ $12,074Bn Total Lighting Estimate ‐ $1.20Bn
Slide 20: Why LED Lighting?
Dialight Why LED Lighting? • Energy saving – up to 60% against conventional efficient lighting • Maintenance – lasts more than ten years in service • Safety – superior light with no failure • Reliability – no need to plan shutdowns to replace lights • Control – easy to turn on and off/down with no d
Slide 21: Energy Savings Example
Energy Savings Example Dialight New 300,000 sq ft facility Class II, Div 2 • (221) 50W LED Linears replace (221) 75W T8 Fluorescent • (41) 100W LED Linears replace (41) 150W T8 Fluorescent • (97) 146W LED High Bay Fixtures replace (97) 480W HID Fixtures • (48) 153W LED High Bay Fixtures replace • En
Slide 22: Maintenance Savings
Maintenance Savings Dialight How does maintenance savings affect payback? Expected life • Metal halide bulb = 2 years • LED fixture = 10+ years Scenario • Maintenance costs up to $2,000 per bulb! • $1,000 / yr • Traditional lamps often don’t reach full • (100) 153W LED High Bays replace expected lif
Slide 23: Health & Safety Improvements
Health & Safety Improvements Dialight LED High Pressure Sodium • Major push for safety improvement investments for industrial facilities • Temperature rating (t‐rating) • Color quality improvements = safer at night • No flash lights required • No mercury / hazardous gases 23
Slide 24: Why are the lights on?
LED Controls Dialight Why are the lights on? • No need for 24/7 lighting • No warm up or restrike time • Controls further reduce energy consumption 24
Slide 25: Why Dialight?
Dialight Why Dialight? • LED only! Almost quarter of a million installed LED lights • Superior lumens per Watt • Unprecedented comprehensive 10 year warranty • Designed for high shock and vibration environments • Handle extremes of temperature • Always state of the art products – short product lifec
Slide 26: Superior Lumens per Watt
Superior Lumens per Watt Dialight • 2009 – 53 lumens per Watt • 2012 – 100 lumens per Watt • 2013 – 115 lumens per Watt goal • Surpassed traditional technologies and LED competitors • New power supply topology to increase efficiency by 7% Dialight *Other LED High Pressure T5HO Metal Halide LED High
Slide 27: Unprecedented Comprehensive 10 Year Warranty
Unprecedented Comprehensive 10 Year Warranty Dialight • 10 year all inclusive warranty includes fixture housing, power supply, LEDs and finish • Industry average 5 year (with stipulations) • In the harshest environments, our customers can rely on our fixtures to continue operating 10 years of No s
Slide 28: Designed for High Shock & Vibration
Designed for High Shock & Vibration Dialight • Dialight fixtures expected to last 10+ years, traditional bulbs may last 1 month or less • Fixtures designed for offshore & mining applications where continual shock and vibration present • Our products pass vibration test of 3G vibration (2,000,000 cyc
Slide 29: From -50C to +70C
Extreme Temperature Capable Dialight From ‐50C.. ..to +70C Dialight’s fixtures are extreme environment capable 29
Slide 30: State-of-the-Art Products
State‐of‐the‐Art Products Dialight • Now have largest portfolio of LED lighting fixtures for hazardous environments • Full system design for optimal performance and efficiency • Wireless or powerline communication control options for accurate lighting and additional energy savings • Controls monitor
Slide 31: Vertically Integrated
Vertically Integrated Dialight • In‐house power supply design – full quality control over every single component • Improved lead times – Dialight standard is 2 weeks, LED competitors are 4‐8 weeks • Full testing capability – mimic all 3rd party tests to ensure compliance and performance • Superior s
Slide 32: How do we Continue to Sustain Growth?
Dialight How do we Continue to Sustain Growth? 32
Slide 33: Lighting Channel to Market
Lighting Channel to Market Dialight Asia Pacific 19 direct sales personnel Europe / Middle East US, Canada, 17 direct sales personnel Mexico & Brazil 23 direct sales personnel 2012 Lighting sales in 40+ countries and sales people in 20+ countries 33
Slide 34: Prospects
Prospects Dialight • Growth is all about Lighting • Assume the other segments are broadly flat • Our 30% leverage model is vindicated and exceeded in 2012 and still valid for the future • Dialight recruitment and geographic expansion plans targeted to support Lighting sales growth in excess of marke
Slide 35: Dialight…. It's all about Lighting!
Dialight Dialight…. It’s all about Lighting! 35