Interim Results - Sept 2006 · Holcim ‐ Apasco. Huntsman Tioxide ... City of Kalgoorlie Boulder....

2011 Canaccord Genuity Growth Conference 1

Dialight 2011 Canaccord Genuity Growth Conference

August 2011

2

Highlights of First Half 2011

●

Operating Profit of £6.2m up 17% (2010: £5.2m)

●

Half year Revenues grew 12% to £51.7m (2009: £46.1m)

●

Signals/Illumination segment revenues increased by 30.7% to £34.1m (2010: £26.1m)

●

Obstruction sales increased 52.1% to £7.3m (2010: £4.8m)

●

Lighting sales increase 161% to £10.4m (2010: £4.0m)

●

Two international initiatives completed -

Dialight Japan and Dialight Australia

●

US pension scheme successfully bought out

●

Dividend increased 17.9% to 3.3 pence (2010 2.8 pence)

2011 Canaccord Genuity Growth Conference

3

Five Year History

2011 H1£m

2010£m

2009£m

2008£m

2007£m

2006£m

Turnover 51.7 99.2 77.3 77.9 63.4 52.3Profit before tax

6.2 11.3 5.3 5.6 4.5 5.8

Operating Cash flow

7.0 15.1 11.0 6.0 5.8 2.2

Net Cash 6.2 10.4 9.1 4.1 4.4 2.2Shareholders Funds

47.7 46.2 40.1 37.5 30.8 29.7

Return on Sales %

12.0 11.4 6.9 7.2 7.1 11.1

Return on Capital % (Exc

Cash)

n/a 31.6 17.1 17.7 17.0 21.1


4

2011

2010

Total Revenue £51.7m

£46.1m

Signals/Illumination

£34.1m

£26.1m

Electromagnetic Components

£6.4m

£7.5m

LED Indication Components

£11.2m

£12.5m

Half Year Revenues


5

Signals/Illumination Five Year History

2011 H1£m

2010£m

2009£m

2008£m

2007£m

2006£m

Turnover 34.1 61.1 46.4 43.3 33.4 28.6Operating Profit

5.4 8.7 3.3 1.7 0.1 (0.5)

Return on Sales %

15.8 14.2 7.1 3.9 0.3 n/a

% of Group Profit

87.1 77.7 62.2 30.4 2.2 n/a


Signals/Transportation

●

Niche business in US Transit Bus market●

Large market share●

Lights are specified by Transit Authorities●

Sales will be flat for the foreseeable future

2009 2010 2011/H1

Sales £m 10.2 9.8 4.2


7

●

Dialight is the world’s largest manufacturer of LED Traffic Lights

●

US market mature shows little growth almost 80% adoption of LED Traffic Lights

●

European market only 20% adopted

●

Europe sales 33% of total

●

Europe should grow to equal US business

●

Expect high single digit growth over the next 3-

4 years

●

Interest building for LED street lights from customers in both US and Europe

Signals/Traffic

2009 2010 2011/H1

Sales £m 23.6 27.4 12.2


8

Telecom Markets•

Cellular•

Private Microwave networks

•

Private Pager networks

Wind Markets •

Onshore•

Offshore

Broadcast Market •

500‐2,200 Ft. Towers

Utilities •

Stacks, Chimneys &Cooling Towers

•

Catenary Systems

Marine •

Offshore Platforms•

Fixed & Seasonal Aids

Tall Structures•

Buildings•

Bridges•

Cranes

Signals/Obstruction Global Markets Served


9

Signals/Obstruction

●

Dialight is the world leader in LED based Obstruction Lighting●

Strong margins driven by new Beacon and Strobe designs●

More than 5,000 White Strobes supplied to US Cell Tower market since launch–

75,000 to go worth over $200m!●

Dialight still the only FAA Approved supplier of this light●

Danish operation performing to plan amid signs of improving European wind market

●

Expect 30-50% annual growth over the next 3-4 years

2009 2010 2011/H1

Sales £m 7.0 12.3 7.3


10


●

Dialight is first to market with LED based lighting for Hazardous and Industrial applications

●

Over 20,000 Industrial White Lights shipped in H1 –equivalent to whole of 2010!

●

High Bay Light major success –over 30,000 installed in 18 months●

Winner of multiple awards●

Pipeline of new/improved products●

Customer base grown from 300 in 2010 to 460 at end of H1/11

2009 2010 2011/H1

Sales £m 5.5m 11.6m 10.4


11

●

Highest customer base segment –

Oil, Gas, Petrochem●

Worldwide presence expanded with investment in Sales personnel in Europe/Middle East and acquisitions in Australia and Japan

●

Largest LED lighting portfolio for hazardous locations ●

H1/11 released one new product per month●

Product sells on payback to customer generated by energy saving,

maintenance, difficulty of access, 24/7 operations, high electricity cost.

●

LED improved performance and price improving payback to customers.●

50 of 50 States offering rebates●

LED Lighting can be the “low hanging fruit”

of energy saving/carbon reduction whilst saving money

Industrial Lighting


12

Market SizeHazardous Lighting

Automotive 2%

Building Automation

2%Chemical &

Pharmaceutical 21%

Defence 3%

Food & Beverage

7%

Machine Tools 2%Metals

1%

Oil & Gas 32%Pulp &

Paper 3%

Rubber &

Plastics 7%

Textile Machinery

0%

Utilities 4%

Other Industries

16%

2010 Estimated Global Sales: $900+ Million

Growth projections 7%+ CAGR 2011 ‐ 2015Source: Freedonia


13

Customer Base by Market Segments

Customer Base by Market Segments

34%

23%

18%

25%

Oil & Gas, Petrochemical,Chemical &Pharmaceutical

Mining & PowerGeneration

Water, Waste Water,Processing & Food Plants

Industrial ‐ Warehouse,Manufacturing & ColdStorage


14

Progress to date – Customers / Segments

AESAlyeska

Pipeline Services Co. (2 locations)Anadarko PetroleumApacheArkema

ChemicalsAtwood OceanicsBASF Petronas

(5 locations)BaxterBaxter Caribe

Inc.Bayer CropScienceBerquist

& KnobelsdorffBP OffshoreBP Refineries (6 locations)Bristol MyersCaltexCenexCitgoChevron (3 locations)Chevron (Gorgon Gas)CPC CorporationCoffeyville Resources

ConocoPhillips

(6 locations)Degussa Engineered CarbDow Chemical

(5 locations)Dow Corning (2 locations)Dubai Petroleum

Shell Eastern PetroleumSingapore Refining CompanyShell Oil (2 locations)Solvay Chemicals (2 locations)Sun ProductsSunoco (3 locations)Synthomer

Sdn

BhdTalisman Energy TamecoTamincoTechnipTesoroThatcher ChemicalTrans Canada Natural GasTotal GasValero (2 locations)Viking PipelineVopakWestlake ChemicalWesvacoWilliams Energy Gas Plant

Oxbow (2 locations)Oxy ChemicalPfizer (2 locations)Pioneer Drilling Co.Philips ChevronPolyolefin CompanyPolyplastics

Asia Pacific (2 locations)Pride InternationalProctor & Gamble (2 locations)Questar

GasPride International (ENCSO)PropisolPT Badak

NGLRain CII Carbon LLCRed Cedar Gathering (6 locations)Reichart

Chemicals (2 locations)RoquetteRohm HaasSabicSaint Gobain

PlasticsSanofi

PasteurSartomerSasol North AmericaSchering Plough

Oil & Gas, Petrochemical, Chemical & Pharmaceutical

DuPont (3 locations)ENI Blacktip

GasExxon Mobile (4 locations)Flexsys

ChemicalsFMC AlcoyFormosa PlasticGlaxoSmithKlineGreat Salk Lake MineralsGPN TotalHB RentalsHess (2 locations)Holcim‐ApascoHuntsman TioxideIndolex

Chemical Co.Ineos

(3 locations)InnoveoxISP ChemicalsKaneka Malaysia Sdn

BhdLubrizol PainsevilleLyondell Bassell

(6 locations)Marathon Gas (2 locations)Marathon Oil (4 locations)Merck & Co.MoletNexen

Gas National Oilwell

ShanghaiOil TankingOptimal Chemicals

2011 New Business


15

Progress to date – Customers / SegmentsMining & Power Generation

3MAccelor

MittalArch Black Thunder Coal MineBarrick

GoldBHP Billiton (2 locations)Chamming

ElectricChesapeake Energy (3 Locations)Climax Molybdenum Coal PeersColstrip PP&LConsumers Energy Corteau

MinesColorado Springs UtilitiesConnectizCoteauCovanta Energy (2 locations)Delta ElectricityDTE EnergyEco Electrica

Power PlantElite EnergyEnogexEntergy Nuclear (3 locations)Envirolight

Excel EnergyEraring

Energy (2 locations)Fairmont MineralsFreeport McMoRan

Copper & Gold(3 locations)GE Power & WaterGenting

Sanyen

PowerGerdau

Steel

Great Basin GoldGreat River EnergyHibbing TaconiteIdaho Power CorporationIES Utilities, Inc OGSIluka

ResourcesIntegra CoalLa Mancha GoldIntrepid Potash MiningJacobs Ranch MineKaneka EperanKansai Power ElectricKapar

EnergyLine

PowerMerrit

EnergyMidwest GenerationMississippi Phosphates Corp.Mitsui Copper FoilMontana Power (PPL) ColstripMountain CoalNewmont GoldNucor SteelOxbow Carbon and MineralsPCS PhosphatePeabody (2 locations)Pilbara IronPortland General ElectricPublic Service New MexicoRed Path MiningRio Tinto (6 locations)

Rocky Mountain Power (2 locations)RohrRytwayScottish & Southern EnergySembawangSebagoSegari

Energy VentureSnowey

HydroSouthwest GenerationSpectra Energy (2 locations)Steel DynamicsTataTeck‐CominkoTenaga

Nasional

BerhadToledo EdisonTucson Electric PowerTVA (3 locations)Unico

MiningUS Steel (2 Locations)Vectron

EnergyVerve EnergyWestern Energy Westmore

CoalWI Industrial Sand & GravelWisconsin Power & LightXcel EnergyXstrata Coal

2011 New Business


16

Progress to date – Customers / Segments

ADM Corn ProcessingADM WallhallaAG Processing Allen CanAmerican Crystal SugarAppert’s

FoodArbiti

BowaterBar‐S Foods (2 locations)Baxter SoupsBNS FererroBritish SugarCavendishCarmel Clay TownshipCargillCity of PhiladelphiaCity of Reno, NVClearbrook

RiceCook HamsDarigoldDel MonteDiageoDiamond CrystalDip Abitibi BowaterDrayton FoodsDriscoll’s BerriesGalvinGary Waste WaterGilbertson & Page

NoyonPassaic Valley SewagePaulaner

Brauerei

GmbH & Co KGPatrick CudahyPepsiPort Stevens CouncilPrimo Foods (2 locations)PUBQuantum FoodsRiverview Dairy FarmSeneca FoodsSherwin AluminaSimplot PotatoesSSAB Steel Alabama Inc.Sugar Beet PlantTecnologia

IntercontinentalTemple IslandTyson FoodsTwin Lakes Regional Waste DistrictUnited FarmsValassis

FoodsVion

FoodsWallhalla

Bean PlantWhiteWaveWild FlavorsWispak

Goderich

ElevatorGolden Plump ChickensGS DunnHatfield Quality MeatsHayes LemmerzHenry’s FoodHeinzHenkelHenry BellHuntington AlloysIdaho PowerIFFCO Al AinInterbrewJennie O TurkeysKapstone

Kraft Paper CoKellogg'sKenko

Mayonnaise GotenbaLA Water & PowerMartisaMcDonaldsMcCain FoodsMichigan SugarMermaid MarineMonterey Gourmet FoodsNabiscoNestle‐Stouffer Noranda

AluminaNorth Dakota Mill

Water, Waste Water, Processing & Food Plants

2011 New Business


17

DMI IndustriesDOT WarehouseDTE Energy‐St. Clair PPE‐LeatherEco Lighting Services & TechEmerson CompressorExCeL

Conference CentreFedExFlexicon

IncFirestone Building ProductsFrontline Int.Galavan

IndustriesGalores

LogisticaGeneral MachineryGeneral Motors (2 locations)Glenadale

ComplexGraphic Packaging Int’lHamletHealthstoreHenrico County Holcium USAHonda (2 locations)*HoneywellHuhtamakiHuntsmannI/O Solutions & ControlsIndiana Department of AssetsIndiana Department of CorrectionsIndustrial Automation ControlsJesco

Progress to date – Customers / SegmentsIndustrial ‐

Warehouse, Manufacturing & Cold Storage3E ‐

Electrical Eng &

Equipment Co.Aisin AWAlcoaAllsteel

PanelAl Tayer

Motors AndersonAnderson AutoArcher Daniels Midland

Corp.Automation & ElectronicsBMWBrikmakersBuckman

LabsBungeCDS Hackner

GmbHCharter FreightlinesChris HayterCity of Kalgoorlie

BoulderCity of PhoenixCity of TorontoCity of WichitaConcord PhillipsConectiv

EdgemoorDalmoreDaniscoDavisco

Int’lDaiwan

KaseiDelta ClothesDHL/Danzas

John Deere (2 Locations)KEW Incorporated C/O GerrieKimberly ClarkKlockner

PentaplastKuehne

+ NagelLafargeLetts DiariesLogixLondon UndergroundMcDermott Internatonal

Inc.MedsafeMeng

Xue

SongMetal ContainerMiller/CoorsMozel

Inc.Multi Packaging SolutionsNational StarchNocturNorbert DentressangleNorboardNSK BearingsOakleyOlympus KeymedOregon Department of Corrections

(2 locations)PADOT Salt ShedsPilkington North AmericaPip Shin Chubu Logistics

Phillip MorrisPowder SolutionPPGPort Moresby Port HedlandPT Holcim

CementRAF HendonRexamRittenhouse ElectricRockline IndustriesSaint GobainSan Francisco Municipal TransitSea ChillSEPTASescoSmurfit KappaSteffen Inc. SwannTECOT Dover Branch TransfersTescoThe Baltimore SunTimken David SIPEToyota SteelUNAMVan Meter IndustrialVektra

ElectricWilkinsonsYahoo

2011 New Business


18

Case Study: Kuehne + Nagel

Before (High Pressure Sodium High Bay) After (Dialight LED High Bay)

Project Overview

•

(136) 250W & (100) 400W HID vs

(126)

150W LED

•

£42,000 (>500,000 kWh) Energy Savings/yr

•

271 tons CO2 Reduced

400W HPS High Bay

150W Dialight LED High Bay

Payback = 1.1 years2011 Canaccord Genuity Growth Conference

19

Case Study: Oregon Correctional Facility

Project Overview

•

(464) 400W HID vs. (464) 150W LED

•

>£90,000 (1,340,000 kWh) Energy Savings / yr

•

1,150 tons CO2 Reduced

•

24/7 operation ‐

£0.05 energy rate Payback = 1.25 years


20

Case Study: Top US Refinery

Current Project Overview

(5% conversion)

•

(169) 150W High Bay replacing (169)

up to 400W HID

•

(176) 100W SafeSite Area Light

replacing (176) up to 250W HID

•

(30) 8W SafeSite Area light replacing

(30) up to 150W Incandescent

•

500,000 kWh Energy Savings / yr•


Total Plant Opportunity

(20,000+ fixtures)

•

19 TWh

Energy Savings / yr•

16,000 tons CO2 Reduced•

Equivalent savings of powering

2,000 households and removing

2,750 cars from the road


21

Case Study: Oil Fueling Canopy

Project Overview

•

(10) 400W HID vs. (10) 150W LED

•

£1,000 (14,500 kWh) Energy Savings / yr

•

12 tons CO2 Reduced

•

12/7 operation

LEDMetal

Halide


22

Case Study: Red Cedar Natural Gas

Project Overview

•

(44) 400W HID vs. (48) 150W LED

•


•

£15,000 Lifetime Maintenance Savings

•


LEDHPS


23

Case Study: Large Data Center in Asia

Project Overview

•

New Installation

•

Minimal energy

consumption

•

Instant on allows for lights

only on when required

•

Zero maintenance

‐‐

•

(200) 150W LED High Bays

•

$0.14 kWh rate

New Installation:Singapore


24

Case Study: Large US Oil Terminal

Project Overview

•

(19) 400W HID vs. (19) 150W LED

•

(4) 1,000W HID vs. (12) 150W LED

•


•

35 tons CO2 Reduced

LEDHPS


25

Case Study: Galores Logistica Cold Storage

Project Overview

New Installation ‐

Panama

Project won against:

•

Fluorescent

•

HID

•

LED (Multiple Competitors)

•

(510) 150W LED High Bays

•

$0.17 kWh rate

•

24/7 operation – LED lowest

available energy consumption

New Installation:Panama


Case Study: Martisa Metal Processing

LEDHPS

Project Overview

•

(32) 400W HID vs. (32) 150W LED

•


•

24 tons CO2 Reduced

Retrofit:Barcelona

Payback = 2.5 years


Case Study: Olympus KeyMed

Project Overview

•

(105) 400W HID vs. (105) 150W LED

•


•


Retrofit:UK

Payback = 2 years


Dialight LED Lighting Product Portfolio

Area LightPower Consumption:

70WReplaces: 250W HIDEnergy Savings: 70%

Wallpack / BulkheadPower Consumption: 22WReplaces: 70W HIDEnergy Savings: 70%

Area LightPower Consumption: 9WReplaces: 65W IncanEnergy Savings: 85%

Linear FixturePower Consumption:

50W / 100WReplaces: up to 200W FluorEnergy Savings: 50%

High BayPower Consumption:


Roadway Sign LightPower Consumption:

70W / 100WReplaces: Up to 250W HIDEnergy Savings: 70%

Low BayPower Consumption:


General Purpose FixturePower Consumption: 50WReplaces: 72W FluorEnergy Savings: 30%


29

Outlook 2011 & Beyond

●

Signals/Illumination positioned for continued growth with stronger margins. Potential growth :-Transportation flatTraffic high single digitObstruction 30-50%Lighting 100%

●

LED efficiency and cost improvement supports customer value proposition and Dialight margin growth

●

Strong pipeline of new and improved White Lighting products with

continuous reengineering and cost reduction

●

Executive confident in continued Revenue Growth and Profitability -

Guidance upgraded for 2011 and 2012


30

Challenging the status quo in the Lighting Industry!


31

Appendix


32

H1/2011£M

H1/2010£M

Revenue 51.7 46.2Gross Profit 14.8 12.6Gross Profit % 28.6 27.3Overhead costs (8.6) (7.3)Operating profit 6.2 5.3Net financing cost inc non-underlying

(0.7) (0.1)

Profit before tax 5.5 5.2Tax (2.0) (1.9)Retained Profit 3.5 3.4

Summary Profit and Loss


33

£m

2010 H1 EBIT 5.3

OE Volume –

exceptional Q1 2010 (0.4)

Switch –

Copper & Silver impact sales (0.3)

Signals and Illumination –

Volume Growth * 4.1

Signals and Illumination –

Margin Growth * 1.0

Foreign Currency Translation (0.5)

Recruitment (0.5)

Investment in additional Development Costs (0.7)

Investment in additional Sales and Marketing (0.7)

Additional BTI overhead / amortization of intangibles (0.6)

Increased Bonus Provision (0.3)

Increased Share Option Charge (IFRS2) (0.1)

2011 H1 EBIT 6.2

2011 Interim Financial Result Bridge


34

2011 H1£M

2010 H1£M

Operating cash 7.0 6.7

Working capital (4.6) (2.5)

Disposal of US Pension Fund

(2.4) -

Cash from operations 0.0 4.2

Tax/financing (0.2) (1.6)

Investing activities (2.0) (3.7)

Dividend Paid (1.6) (1.4)

Change in net cash (3.9) (2.5)

Cashflow


35

JUNE 2011 £M

JUNE 2010 £M

DEC 2010 £M

Non current assets

22.0 21.0 21.9

Cash 6.2 7.0 10.4

Other current assets

37.0 34.1 28.0

Current liabilities

(16.9) (15.7) (12.2)

Non current liabilities

(0.5) (1.9) (1.9)

Net Assets 47.8 44.5 46.2

Balance Sheet


36

●

Working capital requirements increased due to growth in business

●

Inventory –

strategic purchasing to protect growth and from Japan risk

●

Small improvement in receivables days outstanding compared with H1 2010

●

Payables days outstanding consistent with H1 2010

●

Cash -

Continuing operating cash flow despite pension buyout, inventory build and acquisitions. Debt free balance sheet

Working Capital


37

2011 2010

Interim dividend per share 3.3p

2.8p

Basic EPS 11.2p

10.8p

Dividend cover times

3.4x

3.9x

Adjusted EPS (before pension disposal)

12.6p

10.8p

Dividend and EPS


38

●

Effective tax rate in FY 2008 was 38.5%●



Effective tax rate in H1 2010 was 36.0%●

Effective tax rate in H1 2011 is 36.0% which we hope to marginally reduce by year-end

Tax


39

2011

2010


44.9%

42.0%


17.4%

18.3%

Indication Components

55.6%

54.6%

Contribution Margin


40

●

Niche with over 15,000 customers –

strong profit and cash generator

●

H1/11 Revenues £11.2m compared with strong H1 2010 at £12.5m.

●

Currency translation impact reduced 2011 sales by £0.7m and EBIT by £0.3m.

●

Business up sequentially from H2 2010

●

Fundamentals of the business unchanged

●

Margins solid

●

Demand driven by Servers, Storage, Cellular Infrastructure and Internet Access

LED Indication


41

●

H1 Revenues down £1.1m (15%) versus 2010

●

Copper and silver pricing has negatively impacted

●

Traditional business flat

●

Prospects for Disconnect still promising but on thin margins and very lumpy

●

Smart Metering starting to proliferate throughout the world

●

Qualified for UK market



42

2011/H1 2010/H2

2010/H1

Revenue £34.1m £35.0m

£26.1m

Traffic £12.2m £15.1m

£12.3m

Obstruction £7.3m £7.5m

£4.8m

Transportation £4.2m £4.8m

£5.0m

Lighting £10.4m £7.6m

£4.0m



Interim Results - Sept 2006 · Holcim ‐ Apasco. Huntsman Tioxide ... City of Kalgoorlie Boulder....

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Transcript of Interim Results - Sept 2006 · Holcim ‐ Apasco. Huntsman Tioxide ... City of Kalgoorlie Boulder....