Dialight plc · LSE:DIA
Dialight — FY2007 Earnings Presentation
25 slides from Dialight's earnings presentation, Mar 3, 2008
Slide 1: Dialight plc 2007 Preliminary Results
Dialight plc 2007 Preliminary Results 3rd March 2008 p r e l i m i n a r y r e s u l t s 2007
Slide 2: 2007 Highlights
2007 Highlights z Signals/Illumination sales up 17% z Profit before tax £4.5m z Operating Cash Flow £5.8m z Decision to sell LED Components Business following Strategic Review z Focus on high growth Signals/Illumination Business p r e l i m i n a r y r e s u l t s 2007
Slide 3: Financial Review
Dialight plc Financial Review 3rd March 2008 p r e l i m i n a r y r e s u l t s 2007
Slide 4: Financial Highlights
Financial Highlights z Turnover increased by 2% to £63.4m (2006: £62.3m) z Expanded segmental analysis z Operating profit of £3.9m (2006: £5.3m) z Basic EPS of 8.8p (2006:11.8p) p r e l i m i n a r y r e s u l t s 2007
Slide 5: Financial Highlights
Financial Highlights Movement on 2007 2006* FY FY z Revenue £63.4m 8% z Operating profit £3.9m (20)% z Profit before tax £4.5m (16)% z Earnings per share (basic) 8.8p (15)% *Restated to 2007 currency p r e l i m i n a r y r e s u l t s 2007
Slide 6: Revenue Bridge Components
Revenue Bridge Components Electromagnetic LED Components Components Business 2006 FY revenue £11.4m 2006 FY revenue £20.6m Volume decrease (3.2)% (0.4)m Volume - Currency impact - Currency impart (1.6)m ________ ________ 2007 FY revenue £11.0m 2007 FY revenue £19.0m p r e l i m i n a r y r e s u l t
Slide 7: Revenue Bridge Signals / Illumination
Revenue Bridge Signals / Illumination 2006 FY revenue £30.3m Volume increase (17%) £4.8m Currency impact (£1.7)m _______ 2007 FY revenue £33.4m p r e l i m i n a r y r e s u l t s 2007
Slide 8: Segment Results Components
Segment Results Components Electromagnetic Components Indication Business 2007 2006 2007 2006 2006 (1) £m £m £m £m £m Revenue 11.0 11.4 Revenue 19.0 20.6 19.0 Contribution 2.7 3.1 Contribution 10.5 11.7 10.7 Overhead costs (2.8) (2.6) Overhead costs (5.1) (5.1) (4.6) Segment results (0.1) 0.5 Segmen
Slide 9: Segment Results Signals / Illumination
Segment Results Signals / Illumination 2007 2006 2006 (1) Revenue 33.4 30.3 28.6 z Contribution 10.8 10.6 10.0 z Overhead costs (10.7) (11.0) (10.5) z Segment result 0.1 (0.4) (0.5) Contribution % 32.3% 35.0% (1) Restated to 2007 currency p r e l i m i n a r y r e s u l t s 2007
Slide 10: Taxation
Taxation 2007 2006 Actual Rate 39.1% 36.9% p r e l i m i n a r y r e s u l t s 2007
Slide 11: Summarised Cashflow
Summarised Cashflow £m Operating profit 3.9 Depreciation and amortisation 2.0 Working capital (0.1) Share based payments 0.2 Pension payment (0.2) Operating cashflow 5.8 Capital expenditure (1.6) Development spend (0.9) Taxation 0.5 Free cash flow 3.8 p r e l i m i n a r y r e s u l t s 2007
Slide 12: Movement in Cash
Movement in Cash £m Free cash flow 3.8 Dividends (1.7) Interest 0.3 Net cash outflow 2.4 Opening net cash 4.3 Translation (0.1) Closing net cash 6.6 p r e l i m i n a r y r e s u l t s 2007
Slide 13: Dividends and Earnings Per Share
Dividends and Earnings Per Share 2007 2006 z Dividends per share 5.7p 5.25p z Basic EPS 8.8p 11.8p z Dividend cover 1.5 times 2.2 times p r e l i m i n a r y r e s u l t s 2007
Slide 14: IAS19 Pensions
IAS19 Pensions z 2 closed defined benefit schemes in UK and 1 closed defined benefit scheme in US z Total liabilities at 31 December 2007 are £32.4m z Total assets at 31 December 2007 are £31.2m z In 2007 the following mortality tables were used: UK: PA92 medium cohort US: RP2000 Generational Ta
Slide 15: Business Review
Dialight plc Business Review 3rd March 2008 p r e l i m i n a r y r e s u l t s 2007
Slide 16: Components/Indication
Components/Indication z Business continues sound year on year z Distributor POS growth 3% after slow start z Continued strong position with key accounts z Orders continue at run rate z Continued high margins and strong cash generation p r e l i m i n a r y r e s u l t s 2007
Slide 17: Components – Meter Disconnects
Components – Meter Disconnects z Implementation of Advanced Meter Infrastructure in USA will drive demand. z Market potential for 18 million switches between 2008 and 2010 giving a market of over $200m z Dialight in strong market position and delivering switches in preproduction volumes to three of
Slide 18: Signals/Illumination
Signals/Illumination 2007 2006 22% 21% Traffic Obstruction 55% 54% 14% Illumination 15% Other 9% 10% p r e l i m i n a r y r e s u l t s 2007
Slide 19: Signals/Illumination
Signals/Illumination z Strategy for growth - pick defensible and sizeable niche markets with emerging LED value propositions z Segment grew 17% in 2007 z Traffic sales grew 20% z Obstruction grew by 25% in North America z Launched strategic white light products p r e l i m i n a r y r e s u l t s 20
Slide 20: Signals/Illumination/Traffic
Signals/Illumination/Traffic z 20% Sales Growth z Growth of European customer base z First orders for UK based product z Won Miami Dade contract for over 70,000 signals p r e l i m i n a r y r e s u l t s 2007
Slide 21: Signals/Illumination/Obstruction
Signals/Illumination/Obstruction z North American Sales grew 25% z Good progress in US Wind Tower market z First Sales of White LED Strobe Almost 100 sold in second half Adopted by major North American Cell Operator Continued cost and performance improvement Potential to replace over 50,000 conventi
Slide 22: Signals/Illumination/Lighting
Signals/Illumination/Lighting Coloured Lighting z Establishment of European Partnerships z New products in approval for US market z Range retooled for 2008 p r e l i m i n a r y r e s u l t s 2007
Slide 23: Signals/Illumination/White Lighting “The Opportunity!”
Signals/Illumination/White Lighting “The Opportunity!” z Safesite –Hazardous Location Downlight Sales of 300 in Q4 40% energy saving over conventional light Adopted for Rio Tinto mining Installed on Oil Exploration Rig Several Oil Refinery installs z Shelter Light Qualified for US Marines temporary
Slide 24: Research & Development
Research & Development Intellectual Property essential to protect innovation z 19 Patents filed z 47 Patents pending z 7 Patents issued Covering Optics, Thermal management , Software, Communications, Packaging, Electronics. p r e l i m i n a r y r e s u l t s 2007
Slide 25: Summary
Summary z Strong Signals/Illumination Sales growth z Pipeline of new products z First successes with White Strobe z Return of LED Components to normal levels z First major order for Meter Disconnects -200,000 pieces z First LED Hazardous Location Light with first sales z Continued Engineering focus