2011 Interims 1
Dialight plc
2011 Interim Results25th July 2011
2011 Interims 2
● Highlights and Financials
● Business review and outlook
● Q&A
Agenda
2011 Interims 3
Highlights of First Half 2011
● Operating Profit of £6.2m up 17% (2010: £5.2m)
● Half year Revenues grew 12% to £51.7m (2009: £46.1m)
● Signals/Illumination segment revenues increased by 30.7% to
£34.1m (2010: £26.1m)
● Obstruction sales increased 52.1% to £7.3m (2010: £4.8m)
● Lighting sales increase 161% to £10.4m (2010: £4.0m)
● Two international initiatives completed - Dialight Japan and
Dialight Australia
● US pension scheme successfully bought out
● Dividend increased 17.9% to 3.3 pence (2010 2.8 pence)
2011 Interims 4
Five 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
2011 Interims 5
2011
£M
2010
£M
Revenue 51.7 46.2
Gross Profit 14.8 12.6
Gross Profit % 28.6 27.3
Overhead costs (8.6) (7.3)
Operating profit 6.2 5.3
Net financing cost inc
non-underlying
(0.7) (0.1)
Profit before tax 5.5 5.2
Tax (2.0) (1.9)
Retained profit 3.5 3.4
Summary Profit and Loss
2011 Interims 6
£m
2010 H1 EBIT 5.3
OE Volume – exceptional Q1 2010 (0.4)
Switch – Copper & Silver impact sales (0.3)
Signals and Illumination – Volume Growth * 4.1
Signals and Illumination – Margin Growth * 1.0
Foreign Currency Translation (0.5)
Recruitment (0.5)
Investment in additional Development Costs (0.7)
Investment in additional Sales and Marketing (0.7)
Additional BTI overhead / amortization of intangibles (0.6)
Increased Bonus Provision (0.3)
Increased Share Option Charge (IFRS2) (0.1)
2011 H1 EBIT 6.2
2011 Interim Financial Result Bridge
2011 Interims 7
JUNE 2011
£M
JUNE 2010
£M
DEC 2010
£M
Non current
assets
22.0 21.0 21.9
Cash 6.2 7.0 10.4
Other current
assets
37.0 34.1 28.0
Current
liabilities
(16.9) (15.7) (12.2)
Non current
liabilities
(0.5) (1.9) (1.9)
Net Assets 47.8 44.5 46.2
Balance Sheet
2011 Interims 8
2011 H1
£M
2010 H1
£M
Operating cash 7.0 6.7
Working capital (4.6) (2.5)
Disposal of US Pension Fund (2.4) -
Cash from operations 0.0 4.2
Tax/financing (0.2) (1.6)
Investing activities (2.0) (3.7)
Dividend Paid (1.6) (1.4)
Change in net cash (3.9) (2.5)
Cashflow
2011 Interims 9
2011 2010
Total Revenue £51.7m £46.1m
Signals/Illumination £34.1m £26.1m
Electromagnetic Components £6.4m £7.5m
Indication Components £11.2m £12.5m
Half Year Revenues
2011 Interims 10
2011 2010
Signals/Illumination 44.9% 42.0%
Electromagnetic Components 17.4% 18.3%
Indication Components 55.6% 54.6%
Contribution Margin
2011 Interims 11
Business Overview
2011 Interims 12
● Niche with over 15,000 customers – strong profit and
cash generator
● Revenues £11.2m compared with strong H1 2010 at
£12.5m.
● Currency translation impact reduced 2011 sales by
£0.7m and EBIT by £0.3m.
● Business up sequentially from H2 2010
● Fundamentals of the business unchanged
● Margins solid
● Demand driven by Servers, Storage, Cellular
Infrastructure and Internet Access
LED Indication
2011 Interims 13
● Revenues down £1.1m (15%) versus 2010
● Copper and silver pricing has negatively impacted
● Traditional business flat
● Prospects for Disconnect still promising but on thin
margins and very lumpy
● Smart Metering starting to proliferate throughout
the world
● Qualified for UK market
Electromagnetic Components
2011 Interims 14
Signals / 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
2011 Interims 15
2011/H1 2010/H2 2010/H1
Revenue £34.1m £35.0m £26.1m
Traffic £12.2m £15.1m £12.3m
Obstruction £7.3m £7.5m £4.8m
Transportation £4.2m £4.8m £5.0m
Lighting £10.4m £7.6m £4.0m
Signals/Illumination
2011 Interims 16
● Dialight is the world’s largest manufacturer of LED Traffic Lights
● US traffic continues steady in US$ but with currency impact £0.2m
● Good European performance offset by slower UK market
● Margins improved
● Expect single digit growth for 2011 and following years
● Europe should grow to equal US business
● Interest building for LED street lights from customers in both US and Europe
Signals - Traffic
2011 Interims 17
Telecom Markets
• Cellular
• Private Microwave
networks
• Private Pager networks
Wind Markets
• Onshore
• Offshore
Broadcast Market
• 500-2,200 Ft. Towers
Utilities
• Stacks, Chimneys &
Cooling Towers
• Catenary Systems
Marine
• Offshore Platforms
• Fixed & Seasonal Aids
Tall Structures
• Buildings
• Bridges
• Cranes
Signals - Obstruction
Global Markets Served
2011 Interims 18
Signals - Obstruction
● Dialight is the world leader in LED based Obstruction Lighting
● Over 50% half on half growth again
● Margin improvement driven by new Beacon and Strobe designs
● More than 5,000 White Strobes supplied to US Cell Tower
market since launch – 75,000 to go worth over $200m!
● Dialight still the only FAA Approved supplier of this light
● BTI performing to plan and sign of improving European wind
market
● High Intensity Strobe introduced for Broadcast applications –
Dialight has the only FAA approved product
2011 Interims 19
Illumination
● Dialight is first to market with LED based lighting for
Hazardous and Industrial applications
● Revenues up over 160% - payback for customers key
in current times
● Over 20,000 Industrial White Lights shipped in H1 –
equivalent to whole of 2010!
● High Bay Light major success
● Winner of multiple awards
● Pipeline of new/improved products
● Further expansion of geographies and sales channels
● Increased customer base
2011 Interims 20
● 460 Industrial & Hazardous Location Customers
● Highest customer base segment – Oil, Gas, Petrochem
● Worldwide presence
● Largest LED lighting portfolio for hazardous locations
● Releasing one product per month
● Award winning LED High Bay leading industry 30,000+ installed base
● Dialight products qualified by DesignLights™ Consortium, QPL for NA utility rebate incentives
● Dialight products qualified to both UL and IEC standards
Industrial Lighting
2011 Interims 21
LED Performance and Price
● Cree, Philips and Nichia all supplying high performance devices
● Koreans offering competitive prices to enter market
● Typical lumens/watt 135
● Device output possible to 235 lumens
● LED cost per fixture reduced by 50% in 2010 and continuing
albeit at a slower rate in 2011
● More LED suppliers entering the market – China particularly
● More opportunity for Dialight to improve value proposition,
driving new product introduction
2011 Interims 22
Market Size - Hazardous Lighting
2010 Estimated Global Sales: $900+ Million
Growth projections 7%+ CAGR 2011 - 2015Source: Freedonia
2011 Interims 23
Customer Base by Market Segments
Customer Base by Market Segments
34%
23%
18%
25%
Oil & Gas, Petrochemical,Chemical &Pharmaceutical
Mining & PowerGeneration
Water, Waste Water,Processing & Food Plants
Industrial - Warehouse,Manufacturing & ColdStorage
2011 Interims 24
Progress to date – Customers / Segments
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
2011 Interims 25
Progress to date – Customers / Segments
Mining & Power Generation
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
2011 Interims 26
Progress to date – Customers / Segments
ADM Corn ProcessingADM Wallhalla AG 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
Water, Waste Water, Processing & Food Plants
2011 New Business
2011 Interims 27
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
Progress to date – Customers / Segments
Industrial - Warehouse, Manufacturing & Cold Storage3E - 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 DiariesLogix London 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
2011 Interims 28
● Short payback periods – trending close to 1-2 years
● 50 of 50 US States offering rebate incentives, many significant (>50% savings)
● Regions/Countries with exceptional energy rates
● Dangerous or hard to reach areas
● 24/7 operating.. Reconsidering with LEDs
● High maintenance costs (up to £100/hr)
● LEDs “low hanging fruit” to quickly reduce energy bills and CO2 emissions
Key Drivers for the Market
2011 Interims 29
Case Study: Kuehne + Nagel
Before (High Pressure Sodium High Bay) After (Dialight LED High Bay)
Project Overview
• (136) 250W & (100) 400W HID vs (126) 150W LED
• £42,000 (>500,000 kWh) Energy Savings / yr
• 271 tons CO2 Reduced
400W HPS High Bay
150W Dialight LED High Bay
Payback = 1.1 years
2011 Interims 30
Case Study: Oregon Correctional Facility
Project Overview
• (464) 400W HID vs. (464) 150W LED
• >£90,000 (1,340,000 kWh) Energy Savings / yr
• 1,150 tons CO2 Reduced
• 24/7 operation - £0.05 energy rate
Payback = 1.25 years
2011 Interims 31
Case Study: Firestone Building Products
Project Overview
• (40) 400W HID (18h/7d) vs. (40) 150W LED (18h/7d)
• (100) 400W HID (18h/7d) vs. (100) 150W LED (<1h/7d)
• £35,000 (400,000 kWh) Energy Savings / yr
• £19,000 Rebate Conn. Light & Power
• 344 tons CO2 Reduced
Payback = 1.5 years
2011 Interims 32
Case Study: Top US Refinery
Current Project Overview (5% conversion)
• (169) 150W High Bay replacing (169) up to 400W HID
• (176) 100W SafeSite Area Light replacing (176) up to 250W HID
• (30) 8W SafeSite Area light replacing (30) up to 150W Incandescent
• 500,000 kWh Energy Savings / yr
• 425 tons CO2 Reduced
Total Plant Opportunity (20,000+ fixtures)
• 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
2011 Interims 33
Case Study: Oil Fueling Canopy
Project Overview
• (10) 400W HID vs. (10) 150W LED
• £1,000 (14,500 kWh) Energy Savings / yr
• 12 tons CO2 Reduced
• 12/7 operation
LEDMetal Halide
2011 Interims 34
Case Study: Red Cedar Natural Gas
Project Overview
• (44) 400W HID vs. (48) 150W LED
• £2,000 (125,000 kWh) Energy Savings / yr
• £15,000 Lifetime Maintenance Savings
• 105 tons CO2 Reduced
LEDHPS
2011 Interims 35
Case Study: Large Data Center in Asia
Project Overview
• New Installation
• Minimal energy consumption
• Instant on allows for lights only on when required
• Zero maintenance
• (200) 150W LED High Bays
• $0.14 kWh rate
New Installation:Singapore
2011 Interims 36
Case Study: Large US Oil Terminal
Project Overview
• (19) 400W HID vs. (19) 150W LED
• (4) 1,000W HID vs. (12) 150W LED
• £3,000 (40,000 kWh) Energy Savings / yr
• 35 tons CO2 Reduced
LEDHPS
2011 Interims 37
Case Study: Galores Logistica Cold Storage
Project Overview
New Installation - Panama
Project won against:
• Fluorescent
• HID
• LED (Multiple Competitors)
• (510) 150W LED High Bays
• $0.17 kWh rate
• 24/7 operation – LED lowest available energy consumption
New Installation:Panama
2011 Interims 38
Case Study: Warehouse Facility
Project Overview
• (600) 400W vs (600) 150W LED
• £60,000 (>85,000 kWh) Energy Savings / yr
• 744 tons CO2 Reduced
• 12/7 Operation
2011 Interims 39
Case Study: Large Logistics Warehouse
Project Overview
• (150) 400W vs (150) 150W LED
• £16,000 (430,000 kWh) Energy Savings / yr
• 372 tons CO2 Reduced
• 24/7 operation
New Installation:Panama
2011 Interims 40
Gorgon Project: Turtle Friendly Lighting
2011 Interims 41
H1 New Lighting Products
2011 Interims 42
What is it?
● 2nd generation Dialight Street Light
● Built in US to meet ARRA Buy American requirements funded projects
● IES Type II, III, IV & V
● Cool white or neutral white
● DesignLights Consortium listed
StreetSense™ Series LED Street Light
180W, 13,500 lumens(replaces up to 400W HID)
120W, 9,000 lumens(replaces up to 250W HID)
60W, 4,500 lumens (replaces up to 150W HID)
Introduced Jan ‘11
Typical 55% energy savings
2011 Interims 43
SafeSite® LED High Bay – EMEA Hazloc Version
Introduced Feb ‘11
What is it?
● ATEX/IECEx certified 150W High Bay replaces up to 400W traditional
● Only ATEX/IECEx certified LED product of it’s type
● 9,500 initial fixture lumens
● Weights 13.6 Kg compared to typical Zone 1 HID of 30-35 Kg
● Temperature rating (T rating) of T5 compared to traditional fitting of T2
Typical >60% energy savings
2011 Interims 44
SafeSite® LED Wallpack – US Hazloc Version
Introduced Feb ‘11
What is it?● Class I, Div 2 and Class II, Div 2 11W & 22W
Wallpack replaces up to 70W HID traditional fixtures
● 11W – 600 lumens● 22W – 1,200 lumens● Temperature rating (T rating) of T4
compared to traditional fitting of T2 Typical 70% energy savings
2011 Interims 45
SafeSite® LED Linear Fixture – US Hazloc Version
What is it?
● 50 W or 100 W Replaces Hazardous Duty Fluorescent Fixtures up to 200W
● 2 Foot or 4 Foot Versions
● Class I, Div. 1, Class I, Div. 2 &
Class II, Div 1 Hazardous Versions
● Temperature rating (T rating) of T5 compared to traditional fitting of T2
Introduced Mar ‘11
Typical 50% energy savings
2011 Interims 46
DuroSite® LED Low Bay
What is it?
● 80W Low Bay replaces up to 150W
traditional fixtures
● Ideal for up to 20’ mounting heights
● Parking garage or canopy applications
● Cool white or neutral white
Introduced Apr ‘11
Typical >45% energy savings
2011 Interims 47
SafeSite® LED Area Light – US Hazloc Version
Introduced June ‘11
What is it?
● Class I, Div 1 & Class II, Div 1 70W Area Light replaces up to 150W traditional fixtures
● Ideal for up to 25’ mounting heights
● 2nd generation SafeSite Area Light
Replacing the original SafeSite fixture
Typical >50% energy savings
2011 Interims 48
SafeSite® LED General Purpose Fixture -
EMEA Hazloc Version
Introduced June ‘11
What is it?
● ATEX/IECEx 50W General Purpose Light replaces up 2x36W 4’ Fluorescent – the most popular light fixture in the Oil & Gas market for ROW
● Temperature rating (T rating) of T5 compared to traditional fittings of T4
● Emergency battery backup – accounting for 25% of these fittings used globally Typical 30% energy savings
2011 Interims 49
World Lighting Demand by Region
Source: Freedonia
Dialight Japan expands Global footprint
2011 Interims 50
Outlook 2011 & Beyond
● Signals/Illumination positioned for continued growth with
stronger margins. Potential growth :-
Traffic high single digit
Obstruction 30-50%
Lighting 100%
● LED efficiency and cost improvement supports customer value
proposition and Dialight margin growth
● Strong pipeline of new and improved White Lighting products
with continuous reengineering and cost reduction
● Executive confident in continued Revenue Growth and
Profitability - Guidance upgraded
2011 Interims 51
Challenging the status quo in the
Lighting Industry!
2011 Interims 52
Appendix
2011 Interims 53
2011 2010
Interim dividend per share 3.3p 2.8p
Basic EPS 11.2p 10.8p
Dividend cover times 3.4x 3.9x
Adjusted EPS (before pension disposal) 12.6p 10.8p
Dividend and EPS
2011 Interims 54
● Effective tax rate in FY 2008 was 38.5%
● Effective tax rate in FY 2009 was 37.5%
● Effective tax rate in FY 2010 was 34.0%
● Effective tax rate in H1 2010 was 36.0%
● Effective tax rate in H1 2011 is 36.0%
which we hope to marginally reduce by
year-end
Tax
2011 Interims 55
● Working capital requirements increased due to growth in business
● Inventory – strategic purchasing to protect growth and from Japan risk
● Small improvement in receivables days outstanding compared with H1 2010
● Payables days outstanding consistent with H1 2010
● Cash - Continuing operating cash flow despite pension buyout, inventory build and acquisitions. Debt free balance sheet
Working Capital