Dialight 2011 Canaccord Genuity Growth Conference August 2011 2011 Canaccord Genuity Growth Conference 1
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 2
Five Year History 2011 2010 2009 2008 2007 2006 H1 £m £m £m £m £m £m Turnover 51.7 99.2 77.3 77.9 63.4 52.3 Profit before 6.2 11.3 5.3 5.6 4.5 5.8 tax Operating 7.0 15.1 11.0 6.0 5.8 2.2 Cash flow Net Cash 6.2 10.4 9.1 4.1 4.4 2.2 Shareholders 47.7 46.2 40.1 37.5 30.8 29.7 Funds Return on 12.0 11.4 6.9 7.2 7.1 11.1 Sales % Return on n/a 31.6 17.1 17.7 17.0 21.1 Capital % (Exc Cash) 2011 Canaccord Genuity Growth Conference 3
Half Year Revenues 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 2011 Canaccord Genuity Growth Conference 4
Signals/Illumination Five Year History 2011 H1 2010 2009 2008 2007 2006 £m £m £m £m £m £m Turnover 34.1 61.1 46.4 43.3 33.4 28.6 Operating 5.4 8.7 3.3 1.7 0.1 (0.5) Profit Return on 15.8 14.2 7.1 3.9 0.3 n/a Sales % % of Group 87.1 77.7 62.2 30.4 2.2 n/a Profit 2011 Canaccord Genuity Growth Conference 5
Signals/Transportation 2009 2010 2011/H1 Sales £m 10.2 9.8 4.2 Niche business in US Transit Bus market ● Large market share ● Lights are specified by Transit Authorities ● Sales will be flat for the foreseeable future ● 2011 Canaccord Genuity Growth Conference
Signals/Traffic 2009 2010 2011/H1 Sales £m 23.6 27.4 12.2 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 ● 2011 Canaccord Genuity Growth Conference 7
Signals/Obstruction Global Markets Served Telecom Markets Utilities • Cellular • Stacks, Chimneys & • Private Microwave Cooling Towers networks • Catenary Systems • Private Pager networks Wind Markets Marine • Onshore • Offshore Platforms • Offshore • Fixed & Seasonal Aids Broadcast Market Tall Structures • 500 ‐ 2,200 Ft. Towers • Buildings • Bridges • Cranes 2011 Canaccord Genuity Growth Conference 8
Signals/Obstruction 2009 2010 2011/H1 Sales £m 7.0 12.3 7.3 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 ● 2011 Canaccord Genuity Growth Conference 9
Signals/Illumination 2009 2010 2011/H1 Sales £m 5.5m 11.6m 10.4 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 ● 2011 Canaccord Genuity Growth Conference 10
Industrial Lighting 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 2011 Canaccord Genuity Growth Conference 11
Market Size Hazardous Lighting Automotive Building Utilities 2% Automation 4% 2% Other Textile Chemical & Industries Machinery Pharmaceutical Defence 16% 0% 21% 3% Rubber & Plastics 7% Food & Oil & Gas Beverage Pulp & 32% 7% Paper 3% Machine Tools 2% Metals 1% 2010 Estimated Global Sales: $900+ Million Source: Freedonia Growth projections 7%+ CAGR 2011 ‐ 2015 2011 Canaccord Genuity Growth Conference 12
Customer Base by Market Segments Customer Base by Market Segments Oil & Gas, Petrochemical, Chemical & Pharmaceutical Mining & Power 25% Generation 34% Water, Waste Water, Processing & Food Plants 18% Industrial ‐ Warehouse, Manufacturing & Cold Storage 23% 2011 Canaccord Genuity Growth Conference 13
Progress to date – Customers / Segments Oil & Gas, Petrochemical, Chemical & Pharmaceutical Oxbow (2 locations) AES DuPont (3 locations) Shell Eastern Petroleum Oxy Chemical Singapore Refining Company Alyeska Pipeline Services Co. ENI Blacktip Gas Pfizer (2 locations) Shell Oil (2 locations) Exxon Mobile (4 locations) (2 locations) Pioneer Drilling Co. Solvay Chemicals (2 locations) Anadarko Petroleum Flexsys Chemicals Philips Chevron Sun Products Apache FMC Alcoy Polyolefin Company Sunoco (3 locations) Formosa Plastic Arkema Chemicals Polyplastics Asia Pacific Synthomer Sdn Bhd GlaxoSmithKline Atwood Oceanics (2 locations) Talisman Energy BASF Petronas (5 locations) Great Salk Lake Minerals Pride International Tameco Baxter GPN Total Proctor & Gamble Taminco HB Rentals Baxter Caribe Inc. (2 locations) Technip Hess (2 locations) Bayer CropScience Questar Gas Tesoro Holcim ‐ Apasco Berquist & Knobelsdorff Pride International (ENCSO) Thatcher Chemical Huntsman Tioxide BP Offshore Propisol Trans Canada Natural Gas Indolex Chemical Co. BP Refineries (6 locations) PT Badak NGL Total Gas Ineos (3 locations) Bristol Myers Rain CII Carbon LLC Valero (2 locations) Innoveox Caltex Red Cedar Gathering Viking Pipeline ISP Chemicals Cenex (6 locations) Vopak Kaneka Malaysia Sdn Bhd Reichart Chemicals Citgo Westlake Chemical Lubrizol Painseville (2 locations) Chevron (3 locations) Wesvaco Lyondell Bassell (6 locations) Roquette Williams Energy Gas Plant Chevron (Gorgon Gas) Marathon Gas (2 locations) Rohm Haas CPC Corporation Marathon Oil (4 locations) Sabic Coffeyville Resources Merck & Co. Saint Gobain Plastics ConocoPhillips (6 locations) Molet Sanofi Pasteur Degussa Engineered Carb Nexen Gas Sartomer Dow Chemical (5 locations) National Oilwell Shanghai Sasol North America Dow Corning (2 locations) Oil Tanking Schering Plough Optimal Chemicals Dubai Petroleum 2011 New Business 2011 Canaccord Genuity Growth Conference 14
Progress to date – Customers / Segments Mining & Power Generation 3M Great Basin Gold Rocky Mountain Power (2 locations) Accelor Mittal Great River Energy Rohr Arch Black Thunder Coal Mine Hibbing Taconite Rytway Barrick Gold Idaho Power Corporation Scottish & Southern Energy BHP Billiton (2 locations) IES Utilities, Inc OGS Sembawang Chamming Electric Iluka Resources Sebago Chesapeake Energy (3 Locations) Integra Coal Segari Energy Venture Climax Molybdenum La Mancha Gold Snowey Hydro Coal Peers Intrepid Potash Mining Southwest Generation Colstrip PP&L Jacobs Ranch Mine Spectra Energy (2 locations) Consumers Energy Kaneka Eperan Steel Dynamics Corteau Mines Kansai Power Electric Tata Colorado Springs Utilities Kapar EnergyLine Power Teck ‐ Cominko Connectiz Merrit Energy Tenaga Nasional Berhad Coteau Midwest Generation Toledo Edison Tucson Electric Power Covanta Energy (2 locations) Mississippi Phosphates Corp. Delta Electricity Mitsui Copper Foil TVA (3 locations) DTE Energy Montana Power (PPL) Colstrip Unico Mining Eco Electrica Power Plant Mountain Coal US Steel (2 Locations) Elite Energy Newmont Gold Vectron Energy Enogex Nucor Steel Verve Energy Entergy Nuclear (3 locations) Oxbow Carbon and Minerals Western Energy Envirolight Excel Energy PCS Phosphate Westmore Coal Eraring Energy (2 locations) Peabody (2 locations) WI Industrial Sand & Gravel Fairmont Minerals Pilbara Iron Wisconsin Power & Light Freeport McMoRan Copper & Gold Portland General Electric Xcel Energy (3 locations) Public Service New Mexico Xstrata Coal GE Power & Water Red Path Mining 2011 New Business Genting Sanyen Power Rio Tinto (6 locations) Gerdau Steel 2011 Canaccord Genuity Growth Conference 15
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