View
4
Download
0
Category
Preview:
Citation preview
Dialight
1
Dialight plc 2012 Interim Results
July 2012
Dialight
2
•
Highlights and Financials
•
Business review and outlook
•
Q&A
Agenda
Dialight
3
•
Group Operating Profit of £8.1m up 31% (2011: £6.2m)
•
Group Half year Revenues grew 18.2% to £61.1m (2011:
£51.7m)
•
Signals/Illumination segment revenues increased by 25.1% to
£42.7m (2011: £34.1m)
•
Obstruction sales increased 40.4% to £10.2m (2011: £7.3m)
•
Lighting sales increase 65.1% to £17.2m (2011: £10.4m)
•
Successful acquisition of Airinet
•
Dialight Malaysia established
•
Decision to dispose of Smart Metering product line
•
Dividend increased to 4.0 pence (2011 3.3 pence)
Highlights of First Half 2012
Dialight
4
Five Year History
2012 H1£m
2011£m
2010£m
2009£m
2008£m
2007£m
2006£m
Turnover 61.1 113.5 99.2 77.3 77.9 63.4 52.3
Profit before tax 8.1 15.1 11.3 5.3 5.6 4.5 5.8
Operating Cash flow 9.8 17.7 15.1 11.0 6.0 5.8 2.2
Net Cash 8.1 13.7 10.4 9.1 4.1 4.4 2.2
Net Assets 57.2 54.8 46.2 40.1 37.5 30.8 29.7
Return on Sales % 13.2 13.3 11.4 6.9 7.2 7.1 11.1
Return on Capital %
(Exc
Cash) 33.0 36.7 31.6 17.1 17.7 17.0 21.1
Dialight
5
2012 £M 2011 £M
Revenue 61.1 51.7
Gross Profit 18.6 14.8
Gross Profit % 30.4 28.6
Overhead costs (10.5) (8.6)
Operating profit 8.1 6.2
Net financing cost
inc non‐underlying0.1 (0.7)
Profit before tax 8.2 5.5
Tax (2.8) (2.0)
Profit for the period 5.4 3.5
Group Summary Profit and Loss
Dialight
6
£m
2011 H1 EBIT 6.2
Signals & Illumination Increased Contribution Margin 4.0
Additional Sales Cost (1.3)
Lower Indication Sales (1.5)
Higher Disconnect 0.5
Currency 0.3
Other (0.1)
2012 H1 EBIT 8.1
2011 Interim Financial Result Bridge
Dialight
7
JUNE 2012
£M
JUNE 2011
£M
DEC 2011
£M
Non current assets 29.2 22.0 23.8
Cash 8.1 6.2 13.7
Other current assets 44.5 37.0 38.7
Current liabilities (21.7) (17.0) (21.0)
Non current liabilities (2.9) (0.5) (0.5)
Net Assets 57.2 47.7 54.8
Balance Sheet
Dialight
8
Cashflow
2012 H1 £M
2011 H1 £M
Operating cash 9.8 7.0
Working capital (7.6) (4.6)
Disposal of Pension Fund ‐ (2.4)
Cash from operations 2.2 0.0
Tax/financing (1.2) (0.2)
Investing activities (4.2) (2.0)
Dividend Paid (2.1) (1.7)
Change in net cash (5.3) (3.9)
Dialight
9
Half Year Revenues
2012 2011
Total Revenue £61.1m £51.7m
Signals/Illumination £42.7m £34.1m
Electromagnetic Components £9.2m £6.4m
Indication Components £9.2m £11.2m
Dialight
10
Contribution Margin
2012H1
2011H1
Signals/Illumination 45.7% 44.9%
Electromagnetic Components 15.1% 17.4%
Indication Components 52.9% 55.6%
Dialight
11
Business Overview
Dialight
12
•
Niche with over 15,000 customers –
strong profit and cash
generator
•
Revenues £9.2m compared with strong H1 2011 at £11.2m.
•
Business expected to be flat H2 over H1
•
Fundamentals of the business unchanged
•
Margins solid but influenced by mix
•
Demand driven by Servers, Storage, Cellular Infrastructure
and Internet Access
Indication
Dialight
13
•
Revenues up £2.9m (45%) versus 2011
•
All growth from single Smart Meter customer
•
Traditional business flat
•
Smart Meter margins still poor
•
Decision made to divest Smart Meter product line
•
Conclusion expected H2
Electromagnetic Components
Dialight
14
Signals / Illumination Five Year History
2012 H1£m
2011£m
2010£m
2009£m
2008£m
2007£m
2006£m
Turnover 42.7 78.8 61.1 46.4 43.3 33.4 28.6
Operating Profit 8.0 13.8 8.7 3.3 1.7 0.1 (0.5)
Return on Sales % 18.8 17.5 14.2 7.1 3.9 0.3 n/a
% of Group Profit 98.8% 91.3 77.7 62.2 30.4 2.2 n/a
Dialight
15
Signals/Illumination
2012H1
2011H2
2011H1
Total Revenue £42.7m £44.8m £34.1m
Traffic £10.9m £14.3m £12.2m
Obstruction £10.2m £10.5m £7.3m
Transportation £4.3m £4.0m £4.2m
Lighting £17.2m £16.0m £10.4m
Dialight
16
Signals/Illumination ‐
Transportation
•
Exterior lights for US Transit Buses
•
Revenues flat last three halves as expected
•
Some potential growth with LED Headlights
•
Still low single digit
Dialight
17
Signals/Illumination ‐
Traffic
•
Business down 11% versus H1 2011
•
Europe flat helped by major UK contract
•
Expected some recovery in H2 but full year still down on
2011•
Future prospects still to grow low single digit
Dialight
18
LED Obstruction Lighting
Dialight
19
Signals/Illumination ‐
Obstruction
•
40% growth to £10.2m
•
Growth drivers are:‐1.
US Cell Tower market –
80,000 towers to light, less than 9,000
done Remaining market worth over $200m
2.
US Broadcast Tower market –
1800+ Towers to light. Market worth
over $200m
3.
Offshore Wind Turbine market – much less than 1 and 2 above but
increasing. As turbines get bigger, lights are becoming brighter
and
more important.
•
Dialight works to get sole sourced/qualified positions
•
Guidance of 30‐50% growth for the coming year
Dialight
20
Illumination
Dialight
21
Vertically Focused –
Hazardous & Industrial
Regulated Primary MarketsOil & GasPower GenMiningChemical
PharmaceuticalWater & SewageFood & Beverage
Secondary MarketsManufacturingWarehousingCold StorageData Centers
Dialight
22
Signals/Illumination ‐
Lighting
•
Revenues up over 65% versus H1/2011
•
Introduction of first 100 lumen/Watt fixture
•
Acquisition of Airinet Controls to enhance payback
•
Introduction of first 10 year warranty
•
Expected accelerated growth in H2/2012
Dialight
23
What are the prospects for Growth ?
•
Is the market big enough for sustained growth?
•
Is our value proposition good enough to drive adoption?
•
Do we have the sales channel to drive adoption?
Dialight
24
How big is the market, is the opportunity real?
2010 Global Industrial Sales: $5.25 billion
Source: Freedonia IMS
•
Freedonia says Industrial Lighting is
approx., $5Bn Annually
•
We address the installed base which
is probably 10 times that size
•
Hazardous and Heavy is about 20%
of that
•
Dialight has achieved between 0.1
and 0.5% penetration
•
Major investment in channel
expansion
Dialight
25
Illumination‐
Value Drivers
•
Fixture Efficiency →
Lumens/Watt
•
Lifetime/Reliability →
Warranty
•
Optimisation
of Lighting →
Control
Dialight
26
50
100
150
200
250
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Driving Lumen Affordability with Technology$
/lm
(Coo
l Whi
te, 6
500K
)
Annual Improvement in
$/lm @ Standard Drive
Current
43% 45% 35% 29% 45% 40%
Copyright © 2012, Cree, Inc. pg. 26
Efficacy (LPW
)
XR‐EXR‐E
XRXR
XP‐EXP‐E
XP‐GXP‐G
XM‐LXM‐LXT‐EXT‐E
$0.10
$0.09
$0.08
$0.07
$0.06
$0.05
$0.04
$0.03
$0.02
$0.01
Dialight
27
Improving Fixture Lumens/Watt
8,000 lumens
53 lm/W
12,000 lumens
81 lm/W
14,000 lumens
90 lm/W
17,000 lumens
100 lm/W
Dialight
28
LED PackageEfficacy (LPW)
150
OpticsEfficacy (%)
90
PSU (Driver)Efficacy (%)
87
ThermalEfficacy (%)
85
FixtureEfficacy (LPW)
100
Wattage (W) 170
Total Initial Lumens 17,000
LED Luminaire
Performance (Lumens/Watt)
High Bay – 17K Lumens
Dialight
29
Illumination‐
LED Lifetime
Lifetime vs Drive Current & Junction Temperature
0
20
40
60
80
100
120
1000 10000 100000 1000000
Time (Hours)
Ligh
t Out
put (
%)
High Temp High Current
Low Temp Low Current
68000 Hours
330000 Hours
Dialight
30
Illumination‐
Electronics Lifetime
•
LEDs
will last up to 40 years if properly driven – the driver
electronics have a more limited lifetime
•
All Dialight’s
Lighting products have a comprehensive 5 year
warranty
•
New Power Supply Topology has enabled the introduction of
a 10 year warranty on our 17,000 High Bay lights.
•
This will extend to further products
•
Further development will improve PSU efficiency to improve
lumens/Watt
Dialight
31
Illumination ‐Controls & Networking
•
Dimming/Trimming
•
Flexible Scheduling
•
Daylight Harvesting
•
Fault Management/Diagnostics
•
Smart Grid
Faster paybackLower cost of
ownership→
Dialight
32
HB1 HB2 HB N‐1
PLC MotionSensor
PLCPLC PLC PLC
NetworkManageriPhone
PLC/ EthernetWall Controller
Internet
HBN
PLC DaylightSensor
iPadLaptop
Controls –
Hazardous/Heavy Industrial Lighting
Dialight
33
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Conventional 250WDialight 12K High Bay (120W)Dialight 12K High Bay (120W) + CTRL
Scenario: RetrofitYears
Cost of O
wne
rship
$US
Energy rate = $0.11/kWh
Controls improve payback!
Light Operating Profile
Time
Light Level
Dialight
34
Global Hazardous Market requires Global Sales
Gulf Coast32 Refineries113 Rigs3,533 Offshore Platforms
Europe150 Refineries80 Nuclear Plants500 Offshore Platforms
Middle East
40 Refineries121 Offshore Platforms
Australia565 Surface Mines8 Refineries30 Coal Power Plants69 Offshore Platforms10 Offshore Rigs
ASEAN Region
40 Refineries43 Coal Power Plants144 Offshore Platforms
Dialight
35
Industrial Energy Rates – focus
Region Avg
Rates per kWh
US/Canada $0.07
UK $0.12
Germany $0.13
France $0.07
Japan $0.15
Australia $0.15
Brazil $0.12
ASEAN $0.07
Dialight
36
•
UL 1598 & UL 844 for North America
•
CE/ATEX/IECEx
for UK, Europe & ROW
•
NEC 505 for ASEAN regions
•
TIIS & PSE Marking for Japan
•
INMETRO for Brazil
•
GOST for Russia & Kazakhstan
•
CCC for China
•
VDE for Germany
•
TISI for Thailand
•
CNS for Taiwan
Expanding our Reach
Dialight
37
Direct Customer facing Sales Channels
Sales Force June 2012
Sales Force 2011
North America 18 6
Europe 8 5
Middle East 3 1
Australasia 10 5
Total 39 17
Dialight
38
•
Multi‐Billion Dollar addressable Market in Lighting with low penetration
•
Ever improving value proposition driven by Efficiency, Lifetime and
Control
•
Major Sales Force expansion to continue with the objective to become
Number 1 in Hazardous Lighting
•
Almost $0.5Bn addressable market in Obstruction with low penetration
and prime position
•
Objective to achieve strong growth by driving adoption of our
technology
Prospects
Dialight
39
DialightChallenging the status quo in
the lighting industry
Dialight
40
•
Operational leverage and maintained/improving contributions will
drive
the Groups operating Income •
Continued doubling lighting through ’14 would triple the size of the Group•
£100m Incremental Revenue drives £30m Incremental EBIT
The FutureDialight Signals & Illumination Leverage
Base % Fixed % Variable %
Revenue 100
Direct Material 45% 0 100
Direct Labour 6% 0 100
Sales Commission 2% 0 100
Freight 2% 0 100
Contribution Margin 45% 0 100
Production Cost 8% 50 50
Gross Margin 37%
Development 6% 75 25
Sales & Marketing 9% 0 100
Administration 7% 95 5
EBIT 15%
Recommended