Dialight Plc · LSE:DIA
Dialight — FY2021 Earnings Presentation
24 slides from Dialight's earnings presentation, 2022
Slide 1: Dialight Plc Full Year Results 2021
DIALIGHT PLC FULL YEAR RESULTS 2021
Slide 2: Key Highlights
KEY HIGHLIGHTS RETURN TO ROBUST OPERATIONAL BUILDING THE PLATFORM PROFITABILITY PERFORMANCE FOR FUTURE SUCCESS • Stronger order intake - • Delivered successfully • Enhanced sales access up 24% y-o-y to customers • Increased product • Revenue recovery - up • Increased capacity for development – in co
Slide 3: Financial Review
FINANCIAL REVIEW CLIVE JENNINGS
Slide 4: Income Statement
INCOME STATEMENT Constant Actual currency FY-21 FY-20 FY-20 REVENUE £m £m £m • Revenue up 17% at constant currency Revenue 131.6 119.0 112.5 • Lighting up 16% and Signals & Components up 18% Cost of sales (84.6) (85.0) (80.3) Gross profit 47.0 34.0 32.2 GROSS MARGIN Gross margin % 35.7% 28.6% 28.6%
Slide 5: Gross Margin Improvement
GROSS MARGIN IMPROVEMENT GROSS PROFIT BRIDGE (CCY) £6.8m £3.1m (£0.6m) £47.0m £5.5m £32.2m REVENUE MATERIAL COST PRODUCTION FREIGHT FY-20 INCREASE REDUCTIONS EFFICIENCIES CONSTRAINTS FY-21 MATERIAL COST Benefits of efficiency programmes 710 BPS REDUCTIONS launched in the year, coupled with IMPROVEME
Slide 6: Underlying EBIT Bridge
UNDERLYING EBIT BRIDGE [ccy] £9.3m (£3.9m) £4.5m £5.5m FY-20 FY-21 NET SG&A (£6.4m) CHANGE GROSS MARGIN IMPROVEMENT REVENUE INCREASE 6
Slide 7: Segment Performance
SEGMENT PERFORMANCE LIGHTING SIGNALS & COMPONENTS £m (Actual) FY-2021 FY-2020 Variance £m (Actual) FY-2021 FY-2020 Variance Revenue 90.5 81.7 +11% Revenue 41.1 37.3 +10% Gross Profit 33.7 23.7 +42% Gross Profit 13.3 10.3 +29% Gross margin 37.2% 29.0% +820bps Gross margin 32.4% 27.6% +480bps Overhead
Slide 8: Net Debt
NET DEBT £m Underlying EBITDA Net debt at 31 December 2020 (11.4) • Improved EBITDA generation, up £11m on 2020 Inflows Underlying EBITDA 11.1 WORKING CAPITAL Net working capital (excl. inventory) 5.4 16.5 • Supply chain concerns drove short term increase in Outflows inventory of £9.6m Increase in i
Slide 9: 2022 Planning Assumptions
2022 PLANNING ASSUMPTIONS NET INTEREST Broadly in line with FY21 INCOME STATEMENT TAX RATE Effective tax rate c.25% c.£6m production capex CAPEX c.£4m product development CASH FLOW WORKING CAPITAL Targeting inventory reduction for 2022* * Subject to supply chain constraints easing H2 weighting as in
Slide 10: Business Review
BUSINESS REVIEW FARIYAL KHANBABI
Slide 11: As Market Leader We Are at the Forefront of Providing Their Solution
THE INDUSTRIAL SECTOR ACCOUNTS FOR 1/3 OF GLOBAL EMISSIONS AND IS STILL LARGELY DEPENDENT ON INEFFICIENT, ENVIRONMENTALLY DAMAGING LIGHTING TECHNOLOGIES WITH 2/3 FEWER CARBON EMISSIONS VS. LEGACY LIGHTING, LED LIGHTING REPRESENTS A MEANINGFUL SOLUTION TO HELP COMBAT CLIMATE CHANGE, WHILE IMPROVING S
Slide 12: Our Strategy
OUR STRATEGY GROWTH TECHNOLOGY SUSTAINABILITY Growing revenues ahead of our Pushing technological Maintaining our proactive markets through expansion of boundaries to support our safety culture, supporting our our product offering and environmental targets and communities and helping our development
Slide 13: Our Growth Strategy
OUR GROWTH STRATEGY INVEST IN OUR EXPAND MARKET DEVELOP STRATEGIC CORE REACH RELATIONSHIPS Increasing conversion to LED Expanding our market reach by in our core markets developing new routes to market Building strategic partnerships and new market verticals with global customers OUR OVERALL STRATEG
Slide 14: Lighting Order Performance
LIGHTING ORDER PERFORMANCE SALES BY VERTICAL MARKET FY-21 FY-20 AMERICAS • +27% YoY growth Oil & Gas 26% 22% • Regaining MRO business • Capex projects deferral Heavy industrial 14% 14% • Strategic accounts Mining 24% 12% Power 6% 12% EMEA Pulp & Paper 4% 10% • +2% YoY growth • Impact of repeated loc
Slide 15: Signals & Components
SIGNALS & COMPONENTS STRATEGIC GOALS ORDERS • Increase speed of NPD • Diverse end customers with over 40,000 globally • Target markets with higher volume • 27% increase over FY-20 (constant currency) LED usage • Significant demand in higher margin OE market • Continue to expand sales channel, • Stro
Slide 16: Operational Performance
OPERATIONAL PERFORMANCE EQUIPMENT INVESTMENT IMPROVED PLANNING AND SCHEDULING PROCESSES BOTTLENECK REDUCTION AUTOMATION 71% 3 week Strong H&S On Time Delivery Lead times record Above current industry standard 16
Slide 17: Supply Chain
SUPPLY CHAIN INVENTORY £m SKU reduction £42.1m Reducing complexity £32.2m £22.2m VMI/Consignment inventory £13.5m Safeguarding against shortages £6.1m £8.7m £12.6m Localising supply £11.2m Utilising local suppliers to reduce lead times/risk 2020 2021 27% 29% REVENUE REVENUE Improved planning systems
Slide 18: Products Launched
PRODUCTS LAUNCHED Vigilant® ProSite Floodlight Ultra-Efficient High Output High Bay Vigilant® High Bay • 30% reduction in weight • Chipscale LEDs and unique • 30% more efficient and 60% reduction in molded optics • Higher lumen levels – height • Modular design bridging portfolio gap • Easier install
Slide 19: ESG Embedded in the Organisation
ESG EMBEDDED IN THE ORGANSATION ENVIRONMENT SOCIAL GOVERNANCE • Net Zero by 2040 • Developing our people to • Inaugural ESG report • Product recycling partners fulfil their potential • Environmental product • Move to recyclable materials • Enhancing highest health & declarations safety standards • S
Slide 20: Dialight Foundation
DIALIGHT FOUNDATION WEA PARTNERSHIP 20
Slide 21: Summary
SUMMARY We have made a good start to the year with order intake ahead of the same period last year and a strong order pipeline. Our expectation for 2022, despite current headwinds including supply chain constraints and inflation, is for further strong progress driven by revenue growth and improved m
Slide 22: Appendix
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Slide 23: Overview
OVERVIEW LED INDUSTRIAL LIGHTING SIGNALS AND COMPONENTS MARKET PENETRATION OVERVIEW • Cumulative penetration of industrial LED lighting is • Dialight has operated in these well establish less than 10%, enabling strong growth potential markets since 1938 for some years to come • Sales channels compri
Slide 24: Segments
SEGMENTS Lighting Actual currency Constant currency £m FY-2021 FY-2020 Variance FY-2020 Variance Revenue 90.5 81.7 +11% 77.7 +16% Gross Profit 33.7 23.7 +42% 22.7 +48% Gross margin 37.2% 29.0% +820bps 29.2% +800bps Overheads (28.4) (26.8) (6%) (25.4) (12%) EBIT 5.3 (3.1) +271% (2.7) +296% Signal and