2009 Interim Results 27 July 2009

Transcription

1 2009 Interim Results 27 July 2009

2 Financial Highlights Group revenue unchanged at 34.6m (2008: 34.5m) Strong growth of obstruction sales underpinned by major new contract Operating profit of 0.6m (2008: 2m) Good cash generation Cash balance 7m-No debt Interim dividend increased by 10% to 2.3p

3 Financial Highlights 000 Pence (Share) Basic EPS 2, p Adjustment to profit on Prior year disposals 1,939 (6.3p) Underlying EPS p Note: Adjustment relates to the non-cash release of provisions no longer required on 2003/2005 businesses sold

4 Financial Highlights * %. Revenue 34.6m 42.5m (18)% Split by operating segment: Signals/Illumination 21.2m 23.8m (11)% Electromagnetic components 5.4m 6.1m (11)% Indication business 8.0m 12.6m (36)% * Restated to 2009 exchange rates

5 Operating Segment Results Signals / Illumination * m m Revenue Contribution Overhead costs (7.2) (7.2) Segment result Contribution % 35.5% 31.3% * Restated to 2009 exchange rates

6 Signals/Illumination Revenue * Revenue 21.2m 23.8m Split as: Traffic 11.0m 13.0m Obstruction 3.1m 2.5m Transportation 4.8m 5.0m Lighting 2.3m 3.3m * Restated to 2009 exchange rates

7 Electromagnetic Components Segment Results Components Indication Business * m m m m Revenue Revenue Contribution Contribution Overhead costs (1.2) (1.5) Overhead costs (2.9) (3.4) Segment results Segment results Contribution % 24.9% 24.7% Contribution % 49.2% 52.7% * Restated at 2009 exchange rates

8 Working Capital/Cash flow Inventory Plan to reduce inventory shows benefit Plans in place for further improvement Receivables Timing of sales Capex Lower spend this half after 2008 investment Cash Debt free balance sheet Continuing strong operating cash flow

9 Summarised Cash flow m Operating profit 0.6 Depreciation and amortisation 1.4 Working capital 4.2 Pension payment (0.8) Operating cash flow 5.4 Capital expenditure (0.4) Development spend (0.5) Taxation (0.4) Free cash flow 4.1

10 Movement in Cash m Free cash flow 4.1 Other 0.5 Dividends (1.2) Interest (0.1) Net cash outflow 3.3 Opening net cash 4.1 Exchange (0.4) Closing net cash 7.0

11 Taxation Effective tax rate 39% due to overseas rates

12 Dividends and Earnings Per Share Dividends per share 2.3p 2.1p Basic EPS 7.3p 4.2p Underlying EPS 1.0p 4.2p Dividend cover 3.14 times 1.99 times

13 Defined Benefit Pension Schemes 2 closed defined benefit schemes in UK and 1 closed defined benefit scheme in US Full Actuarial Valuation at 30 June 2009 Movement in key assumptions: US Discount Rate reduced to 5.7% from 6% UK Discount Rate reduced to 6.05% from 6.25% UK Inflation Rate increased to 3.6% from 3.2%

14 Indication Components Market position unchanged Volumes down 36% on 2008 in line with market Demand stabilised in the half Modest recovery Continued quality earnings

15 Electromagnetic Components Sales down 11% on 2008 Continued business with three major AMI customers Looking to expand customer base Recently announced orders support H2 growth Continued growth of smart meter adoption in US More than 100 million meters to be converted

16 Signals/Illumination Revenue 2009 H H1* Revenue 21.2m 23.8m Traffic 11.0m 13.0m Obstruction 3.1m 2.5m Transportation 4.8m 5.0m Lighting 2.3m 3.3m * Restated to 2009 exchange rates

17 LED Traffic Signals World leader in LED Traffic Signals US Market - 70% adoption to date (mature) European Market emerging <10% adopted Over 7 million lights to be replaced Over 350m market size in Europe

18 Signals - Traffic Traffic up 8% on 2008 (down 16% constant currency) Both Europe and US down on strong 2008 H1 Reduced sales to Eastern Europe partially offset by increased sales in UK Improved margins in both geographies Second half starting confidently

19 Signals Obstruction Lighting 54% year on year growth (23% at constant currency) despite some slowdown in US Wind Turbines Three level White Strobe introduced Volume shipments started in H1 Significant contract win announced with major cellular operator Strong growth expected with accelerated adoption Tipping Point reached

20 Obstruction Lighting White LED Strobe replaces over 80,000 conventional strobes in the US alone Sales to operators covering more than two thirds of the market Major contract win Potential market over $250m Sales in 2009 H1 less than 1% of market

21 Signals - Vehicle 28% Growth in 2009 ( flat at constant currency) Continued Federal Government spending on Transit Buses -stimulus Enhanced penetration of Heavy Duty Vehicle Market as LED lights become standard Continued potential for interior white lighting

22 Illumination Sales down 22% in 2009 Architectural sales affected most by economic downturn Industrial sales showing growth Safesite sales run rate up 50% over 2008 Customer base broadened with more reference sales to more key customers Safesite qualified to ATEX allowing worldwide sales

23 White Industrial Lighting Estimated market to be over $500m per year Highly Regulated Standards Extremely Rugged Environments But what is so special about LEDs??

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25 How do LEDs compare to the competition? Type Efficiency lm/w Life -hours x1000 Cost Per lumen $ Colour Rendering Ra High Pressure Sodium Ceramic Metal Halide Fluorescent Halogen & Tungsten Cool white LED 6000k Warm white LED 3000k

26 SafeSite LED Lighting Fixture Energy Per LED Fixture= 100W HPS = 250W 60% Energy Savings Mercury & CO2 Savings Efficient optics No light pollution Shock and Vibration proof Guaranteed long lifetime avoid replacement of conventional bulbs

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28 Hazardous Location Lighting 717 Refineries Worldwide 3,000 fixtures per refinery Annual Energy Savings $175 Million 1.75 Billion KWh Saved 1.5 Billion Tons of CO2 Saved 150 Pounds of Mercury Potential $1bn in replacement lights

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30 SafeSite High Bay Series Features & Benefits: Mercury Free Low Power Consumption Operating Temperature: -40 F to 133 F Instant On / Off Operation 70% lumen maintenance; 60,000 hours Superior CRI versus HPS, MH, MV Resistant to Shock & Vibration Advantages of LED

31 SafeSite High Bay Series Case Study: - Project Scope Project Information: Building: 400,000 sq/ft refrigerated distribution warehouse Mounting Height: 37 feet Floor Plan: 25ft racks, spaced 10ft apart Current Fixture: 54W 6 Lamp T5 High Output Fluorescent System Wattage: 363 Watts # of Fixtures: 1,057 Required Fc: 15 Average Maintained Foot Candles Ambient Temp.: 10 F to 35 F

32 SafeSite High Bay Series Design - Photometric Narrow Optic

33 SafeSite High Bay Series Design - Photometric Wide Optic

34 SafeSite High Bay Series Case Study: Results & Savings SafeSite High Bay Results: # of Fixtures: 793 (Reduced by 264 fixtures) Foot Candles: Foot Candles (aisle) Foot Candles (loading docks) Annual Savings: Energy Savings: $185,530 Relamp & Maintenance: $162,073 kwh Savings: 2,319,131 kwh Pounds of C0 2 Saved: 3,977,761 lbs. Mercury Reduced: 19,026 mg. Payback 14 months

35 Dialight poised for sustained and profitable growth Number one in LED Traffic Lights with Europe yet to adopt technology Number one in Aircraft Obstruction Lights with unique White LED Strobe and $250m plus market potential First in Industrial White LED Lighting with market ready to adopt Smart Meter Disconnects shipping in volume Indication Components showing signs of recovery Energy and money savings products solving today s environmental problems!