Dialight plc 2006 AGM 9th May 2006 Dialight plc AGM 2006 Highlights of 2005 z z z z z z Divested Solartron Businesses for gross proceeds of £72.1m Returned £46.5M to Shareholders (£90m since 2003) Renamed and Refocussed company : Dialight plc Appointed new Executive Management Team Year end cash position £9.8m Early 2006 acquisition of Lumidrives Dialight plc AGM 2006 Highlights - Continuing Businesses z z z z z Strong increase in sales and profit in H2 over H1 Profit before tax £4.5m versus £4.3m in 2004 Operating Cash Flow £5.3m for Continuing Group before Capex and Pension Payment Strong year-end balance sheet Increased order intake in 2006 Dialight plc AGM 2006 Proforma 2005 group profit and loss account £m Turnover Operating profit Interest Profit before tax Taxation Dividend – say 4.5 pence full year EPS Dividend Cover 56.1 5.0 0.4 5.4 (1.9) 3.5 1.4 11p 2.46x Dialight plc AGM 2006 Dialight – continuing group cash flow £m 2005 2004 Operating profit 3.9 4.4 Depreciation / amortisation 1.8 1.7 (0.4) (0.1) 5.3 6.0 Capital expenditure (1.1) (0.7) Tax (1.6) (1.5) 2.6 3.8 Movement in working capital Cash from operations Before one-off pension contributions Dialight plc AGM 2006 Reporting Segments z Components- Traditional Indicator Business + Electromagnetic Based Products z Signals/Illumination – High Brightness LED Business comprising Traffic Lights, Rail Signals, Obstruction Lights and Solid State Lighting Dialight plc AGM 2006 2005 Sales and Contribution by Segment 2005 2004 Sales £m Contribution £m Sales Contribution £m £m % % Components 26.6 13.3 27.2 14.7 (2.2) (9.5) Signals/Illumination 29.6 9.9 28.0 9.2 5.5 7.3 Total 56.2 23.2 55.2 23.9 1.8 (2.9) Dialight plc AGM 2006 Components z z z z z Orders up 4% on year and 18% on H2 Sales down 2% on year H2 Sales up 5% on H2/04 Contribution down on year Electromagnetic Components responsible for adverse swing in contribution year on year Dialight plc AGM 2006 Components z z z z z North American Distributor Point of Sales 5% growth in 2005 Continued strong Preferred Vendor Status at OEMs Awarded Wing Mirror Contract for major Japanese Auto Manufacturer- will ship in 2006 Booked £1.5m+ orders for Meter Disconnects in January/February 2006 2006 to date Order Input up over H2/05 Dialight plc AGM 2006 Signals /Illumination z z z z z z z Orders up 4.6% on year Orders in H2/05 up 10% on H2/04 Sales up 5.5% on year Sales in H2/05 up13% on H2/04 Contribution up 7.3% on year Obstruction showing good growth year on year Traffic flat in 2005 Dialight plc AGM 2006 Drivers for Growth z z Components Segment expected to show mid single digit growth over time Signals/Illumination expected to demonstrate double digit growth through focus on 1. 2. 3. 4. 5. European Traffic European/Asia Rail Obstruction Lights Niche opportunities in Industrial Applications for white light Architectural/Entertainment Lighting for coloured lights Dialight plc AGM 2006 Acquisition of Lumidrives Ltd. z Completed on 11 January 2006 for £3m z z z z £2.45m in cash £0.55m in Dialight shares (223,578 shares) 2005 draft results show sales of £3.2m with a double digit return Consistent growth in sales from 2002 to 2005 Net assets of approximately £0.5m at acquisition – fair value review to be completed Strong position in Architectural Lighting Markets Dialight plc AGM 2006 Architectural Lighting Products Dialight plc AGM 2006 Modules – Light Engines, Drivers and Optics Dialight plc AGM 2006 The Light – Leeds, UK Dialight plc AGM 2006 Lacoste Retail Outlets – Nationwide UK Dialight plc AGM 2006 Prospects for 2006 z z z z z European Traffic positioned to grow Obstruction continued growth with new products and more adoption White Light- hazardous location launched Coloured Light- exploitation of Lumidrives acquisition on a worldwide basis Promising signs in Components Segment Dialight plc AGM 2006 DIALIGHT Uniquely Positioned to Exploit the Lighting Revolution Dialight plc AGM 2006