Financial Benefits of Targeting Niche Markets - Dialight plc · Financial Benefits of Targeting...
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1 Dialight Financial Benefits of Targeting Niche Markets Mark Fryer Dialight plc Strategies in Light Milan October 2011
Transcript of Financial Benefits of Targeting Niche Markets - Dialight plc · Financial Benefits of Targeting...
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Dialight
Financial Benefits of Targeting Niche Markets
Mark FryerDialight plcStrategies in Light Milan
October 2011
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DialightHistory of LED Efficacy vs. Traditional Technologies
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DialightDialight Niches
Niche % LED Penetration
DIASpeed toMarket
% Growth Expectation
DIA Share
Indication H H Flat H
Transportation H H GDP H
Traffic US H H Flat H
Traffic Europe L H 5-10% H
Obstruction L H 30-50% H
Industrial Lighting L H 100% H
Lighting General L N/A Not yet ready N/A
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Why LEDs?
• Lower cost of ownership = payback
• Long Life
• High Efficiency
• Shock & Vibration
• Extreme Climates
• Zero Maintenance
• Precise Optical Control
• Instant Light
• Switching Cycles
• Improved Visibility
=Superior Cost
Of Ownership
60%
LED share of lighting market by 2020Source:McKinsey
& Company, Lighting the way: Perspectives on the global lighting market study, July 2011
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DialightWhy LEDs Make SenseCut operational costs and CO2 output instantly with energy efficient LED lighting
Energy savings of up to 60%Replace 400W conventional light source with 150W LED High Bay for immediate
energy savings of 60%, even more when you use dimming and proximity sensors
Reduce CO2 emissionsOn average 100 Dialight DuroSite®
LED High Bays can reduce CO2 emissions by 125
tons per annum, so your organization can be greener (12/7 operation)
Zero maintenance costsAs our LED High Bays carry a 5‐year continuous performance warranty, maintenance
becomes a thing of the past
Attractive payback periodsMany installations see payback in less than two years and the LED lights can last for
10 years or more
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Maintenance, Liability & Safety Issues
What’s involved with changing your light bulbs?
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Intelligent Lighting
•No need for 24/7 lighting•No warm up or restrike
time•Occupancy sensors further
reduce energy consumption
Why are the lights on?
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Retrofit Friendly
CONVENTIONALLIGHTING
LED LIGHTING
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Cold Storage
LED Lighting for Niche Markets
WarehousesOil and Gas
ManufacturingPower Gen
Water
Chem
& Pharma
Data CentersMining
Food Processing
Hazardous Locations Industrial Applications
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DialightCase Study: Top US Refinery
Current Project Overview
(5% conversion)
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(169) 150W High Bay replacing
(169) up to 400W HID
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(176) 100W Area Light replacing
(176) up to 250W HID
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(30) 8W Area light replacing
(30) up to 150W Incandescent
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500,000 kWh Energy Savings / yr•
425 tons CO2 Reduced
Total Plant Opportunity
(20,000+ fixtures)
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19 TWh
Energy Savings / yr•
16,000 tons CO2 Reduced•
Equivalent savings of powering
2,000 households and removing
2,750 cars from the road
Payback = *3.5 years
*This facility generates and distributes their own electricity
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DialightCase Study: Large US Oil Terminal
Project Overview•
(19) 400W HID vs. (19) 150W LED
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(4) 1,000W HID vs. (12) 150W LED
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£3,000 (40,000 kWh) Energy Savings / yr
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35 tons CO2 Reduced
LEDHPS
Payback = 1.75 years
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DialightCase Study: Natural Gas Refinery
Project Overview•
(44) 400W HID vs. (48) 150W LED
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£2,000 (125,000 kWh) Energy Savings / yr
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£15,000 Lifetime Maintenance Savings
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105 tons CO2 Reduced
LEDHPS
Payback = 2.75 years
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DialightCase Study: Kuehne
+ Nagel
Before (High Pressure Sodium High Bay) After (Dialight LED High Bay)
Project Overview
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(136) 250W & (100) 400W HID vs
(126) 150W LED
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£42,000 (>500,000 kWh) Energy
Savings / yr
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271 tons CO2 Reduced
400W HPS High Bay
150W Dialight LED High Bay
Payback = 1.1 years
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DialightCase Study: Building Products Facility
Project Overview•
(40) 400W HID (18h/7d) vs. (40) 150W LED (18h/7d)
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(100) 400W HID (18h/7d) vs. (100) 150W LED (<1h/7d)
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£35,000 (400,000 kWh) Energy Savings / yr
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£19,000 Rebate Conn. Light & Power
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344 tons CO2 Reduced
Payback = 1.5 years
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DialightCase Study: Correctional Facilities
Project Overview
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(464) 400W HID vs. (464) 150W LED
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>£90,000 (1,340,000 kWh) Energy Savings / yr
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1,150 tons CO2 Reduced
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24/7 operation ‐
£0.05 energy rate Payback = 1.25 years
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DialightCase Study: Food Processing
Project Overview
(150) 400W HID vs. (150) 150W LED
$55,000 (450,000 kWh) Energy Savings / yr
$18,000 Utility Rebate
372 Tons of CO2 ReducedPayback = 1.25 years
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Project Information
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100,000 sq ft warehouse
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24/7 lighting
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25’
mounting height
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(100) 400W Metal Halide vs
(100) 150W LED Fixtures
Existing Cost Assumptions
•
Energy cost: $0.11/kWh
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Annual maintenance cost: $100/fixture
•
Annual re-lamp cost: $25/fixture
Payback Scenario
Payback = 1.25 yrs
Paybackw/ Rebates
= .5 yrs
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Payback Scenario
Project Information
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100,000 sq ft warehouse facility
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24/7 lighting
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25’
mounting height
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Energy cost: $0.11/kWh
Existing Fixtures & Cost Assumptions
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(100) 400W Metal Halide fixtures
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24 hrs / 7 days operation
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Annual energy cost: $46,000
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Annual maintenance cost: $12,500 ($125/fixture)
LED Fixtures & Cost Assumptions
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(100) 150W LED High Bay fixtures
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24 hrs / 7 days operation
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Initial cost: $65,500 ($650/fixture)
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Annual energy cost: $14,000
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Annual maintenance cost: $0/fixture (60,000 hr life)
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$110 / fixture utility rebate incentivePayback = ~1.5 yr
Payback w/ Rebates = >1 yr
Summary
• Initial spend: $54,500 (after rebate)
• Annual Energy Savings: $32,000
• Annual Maintenance Savings: $12,500
• 300,000 kWh saved
• CO2 Reduction: 42 tons
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DialightPayback Scenario with Occ
Sensor
Project Information
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Cold storage freezer
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24/7 lighting vs. 2/7 lighting with LEDs
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14’
mounting height
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Energy cost: $0.11/kWh
Existing Fixtures & Cost Assumptions
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(12) 400W Metal Halide fixtures
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24 hrs / 7 days operation
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Annual energy cost: $5,500
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Annual maintenance cost: $2,750 ($230/fixture)
LED Fixtures & Cost Assumptions
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(10) 150W LED High Bay fixtures
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2 hrs / 7 days operation (w/ occupancy sensor)
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Initial cost: $5,500 ($550/fixture)
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Annual energy cost: $121
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Annual maintenance cost: $0/fixture (60,000 hr life)
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$90 / fixture utility rebate incentive
Payback = <1 yr
Payback w/ Rebates = ~6 mos
Summary
• Initial spend: $4,600 (after rebate)
• Annual Energy Savings: $5,379
• Annual Maintenance Savings: $2,750
• CO2 Reduction: 42 tons
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DialightSignals/Illumination Five Year History
2011 H1£m
2010£m
2009£m
2008£m
2007£m
2006£m
Turnover 34.1 61.1 46.4 43.3 33.4 28.6
Operating
Profit
5.4 8.7 3.3 1.7 0.1 (0.5)
Return on Sales
%
15.8 14.2 7.1 3.9 0.3 n/a
% of Group
Profit
87.1 77.7 62.2 30.4 2.2 n/a
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DialightWhy LEDs ?
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Payback –
energy saving
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Payback –
maintenance
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Improved health and safety
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Retrofit friendly
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Quality of light
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Intelligent lighting
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Rebate
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Tax deduction
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Funding available
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Corporate Sustainability Reporting
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DialightWhy Dialight?
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Long established -
in business of using LEDs since
invention•
Only sell product applying LED technology –
but don’t
make LED.•
Fully integrated
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First to market in LED lighting applications for over 20 years
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Sell primarily on payback
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Constant improvement –
R&D 9% of lighting sales
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High percentage of lighting sales from product introduced in last 12 months
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No quibble 5 year warranty on all products
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DialightMaking a Niche Profitable
2007
2008
2009
Present
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DialightDuroSite®
LED High Bay
Introduced Q4 2009:
8,000 lumens @ 150W (53 lm/w)
Current Offering:
14,000 lumens @ 150W (93 lm/w)
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2011 Interims
AESAlyeska
Pipeline Services Co. (2 locations)Anadarko PetroleumApacheArkema
ChemicalsAtwood OceanicsBASF Petronas
(5 locations)BaxterBaxter Caribe
Inc.Bayer CropScienceBerquist
& KnobelsdorffBP OffshoreBP Refineries (6 locations)Bristol MyersCaltexCenexCitgoChevron (3 locations)Chevron (Gorgon Gas)CPC CorporationCoffeyville Resources
ConocoPhillips
(6 locations)Degussa Engineered CarbDow Chemical
(5 locations)Dow Corning (2 locations)Dubai Petroleum
Shell Eastern PetroleumSingapore Refining CompanyShell Oil (2 locations)Solvay Chemicals (2 locations)Sun ProductsSunoco (3 locations)Synthomer
Sdn
BhdTalisman Energy TamecoTamincoTechnipTesoroThatcher ChemicalTrans Canada Natural GasTotal GasValero (2 locations)Viking PipelineVopakWestlake ChemicalWesvacoWilliams Energy Gas Plant
Oxbow (2 locations)Oxy ChemicalPfizer (2 locations)Pioneer Drilling Co.Philips ChevronPolyolefin CompanyPolyplastics
Asia Pacific (2 locations)Pride InternationalProctor & Gamble (2 locations)Questar
GasPride International
(ENCSO)PropisolPT Badak
NGLRain CII Carbon LLCRed Cedar Gathering (6 locations)Reichart
Chemicals (2 locations)RoquetteRohm HaasSabicSaint Gobain
PlasticsSanofi
PasteurSartomerSasol North AmericaSchering Plough
Oil & Gas, Petrochemical, Chemical & Pharmaceutical
DuPont (3 locations)ENI Blacktip
GasExxon Mobile (4 locations)Flexsys
ChemicalsFMC AlcoyFormosa PlasticGlaxoSmithKlineGreat Salk Lake MineralsGPN TotalHB RentalsHess (2 locations)Holcim‐ApascoHuntsman TioxideIndolex
Chemical Co.Ineos
(3 locations)InnoveoxISP ChemicalsKaneka Malaysia Sdn
BhdLubrizol PainsevilleLyondell Bassell
(6 locations)Marathon Gas (2 locations)Marathon Oil (4 locations)Merck & Co.MoletNexen
Gas National Oilwell
ShanghaiOil TankingOptimal Chemicals 2011 New Business
Progress to date –
Customers / Niche
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2011 Interims
3MAccelor
MittalArch Black Thunder Coal MineBarrick
GoldBHP Billiton (2 locations)Chamming
ElectricChesapeake Energy (3 Locations)Climax Molybdenum Coal PeersColstrip PP&LConsumers Energy Corteau
MinesColorado Springs UtilitiesConnectizCoteauCovanta Energy (2 locations)Delta ElectricityDTE EnergyEco Electrica
Power PlantElite EnergyEnogexEntergy Nuclear (3 locations)Envirolight
Excel EnergyEraring
Energy (2 locations)Fairmont MineralsFreeport McMoRan
Copper & Gold(3 locations)GE Power & WaterGenting
Sanyen
PowerGerdau
Steel
Great Basin GoldGreat River EnergyHibbing TaconiteIdaho Power CorporationIES Utilities, Inc OGSIluka
ResourcesIntegra CoalLa Mancha GoldIntrepid Potash MiningJacobs Ranch MineKaneka EperanKansai Power ElectricKapar
EnergyLine
PowerMerrit
EnergyMidwest GenerationMississippi Phosphates Corp.Mitsui Copper FoilMontana Power (PPL) ColstripMountain CoalNewmont GoldNucor SteelOxbow Carbon and MineralsPCS PhosphatePeabody (2 locations)Pilbara IronPortland General ElectricPublic Service New MexicoRed Path MiningRio Tinto (6 locations)
Rocky Mountain Power (2 locations)RohrRytwayScottish & Southern EnergySembawangSebagoSegari
Energy VentureSnowey
HydroSouthwest GenerationSpectra Energy (2 locations)Steel DynamicsTataTeck‐CominkoTenaga
Nasional
BerhadToledo EdisonTucson Electric PowerTVA (3 locations)Unico
MiningUS Steel (2 Locations)Vectron
EnergyVerve EnergyWestern Energy Westmore
CoalWI Industrial Sand & GravelWisconsin Power & LightXcel EnergyXstrata Coal
2011 New Business
Progress to date –
Customers / NicheMining & Power Generation
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Dialight
2011 Interims
ADM Corn ProcessingADM WallhallaAG Processing Allen CanAmerican Crystal SugarAppert’s
FoodArbiti
BowaterBar‐S Foods (2 locations)Baxter SoupsBNS FererroBritish SugarCavendishCarmel Clay TownshipCargillCity of PhiladelphiaCity of Reno, NVClearbrook
RiceCook HamsDarigoldDel MonteDiageoDiamond CrystalDip Abitibi BowaterDrayton FoodsDriscoll’s BerriesGalvinGary Waste WaterGilbertson & Page
NoyonPassaic Valley SewagePaulaner
Brauerei
GmbH & Co KGPatrick CudahyPepsiPort Stevens CouncilPrimo Foods (2 locations)PUBQuantum FoodsRiverview Dairy FarmSeneca FoodsSherwin AluminaSimplot PotatoesSSAB Steel Alabama Inc.Sugar Beet PlantTecnologia
IntercontinentalTemple IslandTyson FoodsTwin Lakes Regional Waste DistrictUnited FarmsValassis
FoodsVion
FoodsWallhalla
Bean PlantWhiteWaveWild FlavorsWispak
Goderich
ElevatorGolden Plump ChickensGS DunnHatfield Quality MeatsHayes LemmerzHenry’s FoodHeinzHenkelHenry BellHuntington AlloysIdaho PowerIFFCO Al AinInterbrewJennie O TurkeysKapstone
Kraft Paper CoKellogg'sKenko
Mayonnaise GotenbaLA Water & PowerMartisaMcDonaldsMcCain FoodsMichigan SugarMermaid MarineMonterey Gourmet FoodsNabiscoNestle‐Stouffer Noranda
AluminaNorth Dakota Mill 2011 New Business
Progress to date –
Customers / NicheWater, Waste Water, Processing & Food Plants
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Dialight
2011 Interims
DMI IndustriesDOT WarehouseDTE Energy‐St. Clair PPE‐LeatherEco Lighting Services & TechEmerson CompressorExCeL
Conference CentreFedExFlexicon
IncFirestone Building ProductsFrontline Int.Galavan
IndustriesGalores
LogisticaGeneral MachineryGeneral Motors (2 locations)Glenadale
ComplexGraphic Packaging Int’lHamletHealthstoreHenrico County Holcium USAHonda (2 locations)*HoneywellHuhtamakiHuntsmannI/O Solutions & ControlsIndiana Department of AssetsIndiana Department of CorrectionsIndustrial Automation ControlsJesco
3E ‐
Electrical Eng &
Equipment Co.Aisin AWAlcoaAllsteel
PanelAl Tayer
Motors AndersonAnderson AutoArcher Daniels Midland
Corp.Automation & ElectronicsBMWBrikmakersBuckman
LabsBungeCDS Hackner
GmbHCharter FreightlinesChris HayterCity of Kalgoorlie
BoulderCity of PhoenixCity of TorontoCity of WichitaConcord PhillipsConectiv
EdgemoorDalmoreDaniscoDavisco
Int’lDaiwan
KaseiDelta ClothesDHL/Danzas
John Deere (2 Locations)KEW Incorporated C/O GerrieKimberly ClarkKlockner
PentaplastKuehne
+ NagelLafargeLetts DiariesLogixLondon UndergroundMcDermott Internatonal
Inc.MedsafeMeng
Xue
SongMetal ContainerMiller/CoorsMozel
Inc.Multi Packaging SolutionsNational StarchNocturNorbert DentressangleNorboardNSK BearingsOakleyOlympus KeymedOregon Department of Corrections
(2 locations)PADOT Salt ShedsPilkington North AmericaPip Shin Chubu Logistics
Phillip MorrisPowder SolutionPPGPort Moresby Port HedlandPT Holcim
CementRAF HendonRexamRittenhouse ElectricRockline IndustriesSaint GobainSan Francisco Municipal TransitSea ChillSEPTASescoSmurfit KappaSteffen Inc. SwannTECOT Dover Branch TransfersTescoThe Baltimore SunTimken David SIPEToyota SteelUNAMVan Meter IndustrialVektra
ElectricWilkinsonsYahoo
2011 New Business
Progress to date –
Customers / NicheIndustrial ‐
Warehouse, Manufacturing & Cold Storage
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DialightFive Year History
2011 H1£m
2010£m
2009£m
2008£m
2007£m
2006£m
Turnover 51.7 99.2 77.3 77.9 63.4 52.3
Profit before
tax
6.2 11.3 5.3 5.6 4.5 5.8
Operating Cash
flow
7.0 15.1 11.0 6.0 5.8 2.2
Net Cash 6.2 10.4 9.1 4.1 4.4 2.2
Shareholders
Funds
47.7 46.2 40.1 37.5 30.8 29.7
Return on
Sales %
12.0 11.4 6.9 7.2 7.1 11.1
Return on
Capital % (Exc
Cash)
n/a 31.6 17.1 17.7 17.0 21.1
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DialightDialight Overview
Approaching $200M in Revenues and growing by 20% pa
Profitable
Cash generative
Strong Balance Sheet
Employees >1,000 worldwide
Locations:
USA (2), UK (2), Mexico, Japan, Germany, UAE, Australia, Denmark, Singapore
Niches:
LED Traffic Signals LED Obstruction LightsLED Status Indicators LED Hazardous Lighting
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Dialight
Challenging the status quo in the lighting industry
