Dialight Plc · LSE:DIA
Dialight — Investor Presentation (October 2018)
25 slides from Dialight's investor presentation, Oct 30, 2018
Slide 1: 2018 Investor Visit
2018 INVESTOR VISIT 30 OCTOBER 2018
Slide 2: Agenda
AGENDA Morning session • Introduction – Marty Rapp • Operations – Luis Ramirez Site tour • Product development & Technology – Marty Rapp Lighting controls demo Lunch Afternoon session • Sales – Tim Cillessen Dinner
Slide 3: Summary
SUMMARY • The Industrial market remains attractive and growing Manufacturing • Manufacturing partner issues impacted the business over last two years • Focus now on bringing all assembly back in house • Transfer to own facilities on track with good on time delivery • Ensenada/Tijuana and Penang our
Slide 4: Regional Emphasis – To Support Local Expansion
REGIONAL EMPHASIS –TO SUPPORT LOCAL EXPANSION OPERATIONS ENGINEERING • Regional assembly facilities • Global technology leadership • Global purchasing with local delivery deployed regionally • Fulfilment from regional hubs • Dialight design rules • Regional customer service • Increase speed to marke
Slide 5: Operations – Luis Ramirez
1 ss dc tis a i OPERATIONS LUIS RAMIREZ
Slide 6: Hybrid Manufacturing Model
HYBRID MANUFACTURING MODEL External Cable harness PCBAs Machining &Painting Regional suppliers to support subassemblies requirements: Select sku inventory • suppliers expertise in Internal Final assembly Final assembly and supply chain management specific process/products • Competitive prices • Risk
Slide 7: Overview of Our Manufacturing Capabilities
OVERVIEW OF OUR MANUFACTURING CAPABILITIES Ensenada Tijuana Penang Roxboro Size 162,000 sq. ft 100,000 sq. ft 45,000 sq. ft 79,000 sq. ft Moulding, PCBA, CNC, Cable Distribution, Future Moulding and Capability Harness, Assembly CNC and paint assembly metallisation and hard coating Employees 845 400
Slide 8: Upgrades at Our Ensenada Facility
UPGRADES AT OUR ENSENADA FACILITY PEOPLE • Upgraded operations leadership • Labour force skilled in complex assembly process • Enhanced sustaining engineering on site PROCESSES • Improved shop floor controls – upgraded manufacturing practices • Improved Sales and Operations Planning process • Improv
Slide 9: Tijuana Plant
TIJUANA PLANT • Proximity to the US border • Proximity to Suppliers • Proximity to Ensenada • Proximity to component imports from Asia • Proximity to major Airports 9
Slide 10: Penang
PENANG • Servicing APAC and EMEA markets • Proximity to regional supplier base • Key manufacturing hub in Asia • In place since 2012 • New building to expand with additional capabilities for CNC, paint and PCBA 10
Slide 11: Materials
MATERIALS • Dialight’s high SKU, low volume business requires a flexible system for materials management • Sales and Operations Planning process is challenging due to forecast accuracy and short order time • Dialight has an experienced team for sourcing components • Component market is still experie
Slide 12: Product Management & Technology
PRODUCT MANAGEMENT & TECHNOLOGY MARTY RAPP
Slide 13: Technology Differentiation of Dialight
TECHNOLOGY DIFFERENTIATION OF DIALIGHT CUSTOM POWER SUPPLIES Long-life drivers with optimised thermal dissipation for protection against environmental contaminants and vibration related failures INTEGRATED DESIGN Built for longevity in harsh environments: Simple installation, advanced protective coa
Slide 14: Product Management
PRODUCT MANAGEMENT 3rd Party Competitive Channel Results Internal SAM Market Data Results Reporting Reporting Workshops Estimated Market Size / Dialight Share Database of Current and Adjacent Markets, Existing Share & Growth Opportunities Leverage existing sales Target current customer New products
Slide 15: Opportunity – Extend Product Range to Our Existing Customers
OPPORTUNITY – EXTEND PRODUCT RANGE TO OUR EXISTING CUSTOMERS Core product offering in hazardous environments of the heavy industrial space Dialight £0.5b £0.5bn current market n Expand our offering to provide a more competitive product for the lighter Potential £1.8b £2bn expanded market industrial
Slide 16: Sales – Tim Cillessen
SALES we TIM CILLESSEN
Slide 17: Sales Structure
SALES STRUCTURE Americas EMEA APAC 79 Direct sales heads 27 Direct sales heads 24 Direct sales heads No. of distributors: 622 No. of distributors: 52 No. of distributors: 31 17
Slide 18: Growth and Success
GROWTH AND SUCCESS • Ranges from lighting upgrade to new facility • We supply ~30% of lighting schedule CAPEX • Distributor consolidate all vendors • Bidding process through multiple Contractors End Users (1,500+) • Oil & Gas (Downstream) • Maintenance, Repair, Operate • Metals & Mining • Long term
Slide 19: Distribution Channel
DISTRIBUTION CHANNEL Top 2 Global - $42B Sonepar - $26B Rexel - $16B Top 5 in US - $34B Sonepar - $10.1B WESCO - $7.3B Graybar - $6.7B Rexel - $5.6B CED - $4.6B 19
Slide 20: Americas
AMERICAS • The Americas showed significant growth over last 10 years • The current operational challenges have impacted: • Our ability to keep inventory levels through our Channel partners • Extended lead times affected capex spend • Our multiple value propositions still dominate our core markets •
Slide 21: APAC
APAC • Dialight Australia has shown significant YoY growth for the last 7 years • Dialight Australia have secured every large Greenfields and brownfields mining project for 2017 • New sales team established in Asia • New channel partners signed increasing geographical coverage Large Mining Project B
Slide 22: EMEA
EMEA • EMEA has refocused sales efforts since 2016 • Distribution channel expansion is key to driving growth • New territories such as South Africa (mining and Oil & Gas) and Iceland (largest Aluminium plants in Europe) are now being explored Rio Tinto Paraburdoo Before and after shot CV2/CV3 Vault
Slide 23: Summary
SUMMARY • Industrial LED market opportunity largely untapped • High Bay transfer back to our own facilities is largely completed • Significant reduction in level of late orders • Assembly of lighting products commenced in Penang to serve EMEA and APAC • Active steps to materially de-risk supply chai
Slide 24: Questions
Questions 24
Slide 25: Disclaimer
DISCLAIMER Certain statements included or incorporated by reference within this presentation may constitute “forward-looking statements” in respect of the Group’s operations, performance, prospects and/or financial condition. By their nature, forward-looking statements involve a number of risks, unc