Slide 1: 3Q2019 / YTD3Q2019 Results Presentation
3Q2019/ YTD3Q2019 RESULTS PRESENTATION Tuesday, 5 November 2019 1 1
Slide 2: Agenda
CORPORATE OVERVIEW AGENDA FINANCIAL RESULTS By moving forward and thinking forward, Serial System helps its partners to be more competitive in the marketplace, OUTLOOK & STRATEGIES today and in the future 2 2
Slide 3: Corporate Overview
CORPORATE OVERVIEW 3 Your Integral Component to Success 3
Slide 4: Serial System at a Glance
SERIAL SYSTEM AT A GLANCE One of Asia Pacific’s largest electronic distribution networks One of the largest Electronic Components (95%)* electronic YTD3Q2019 FY2018 components Hong Kong 49% 61% distributor China 12% 11% listed on SGX South Asia 27% 17% South Korea 4% 5% Taiw an 8% 6% SERIAL 100% 100
Slide 5: Extensive Network & Diversified Business
EXTENSIVE NETWORK & DIVERSIFIED BUSINESS Supporting a network of global brands, Serial System is a leading distributor of electronic components in Asia and a dealer for a variety of consumer products. It is also a strategic investor in businesses in healthcare and managed print services. Electronic
Slide 6: Partnering Leading Suppliers
PARTNERING LEADING SUPPLIERS Electronic Components Distribution … more than 90 Franchised Product Lines in Serial Group 6 Your Integral Component to Success 6
Slide 7: Partnering Leading Suppliers
PARTNERING LEADING SUPPLIERS Consumer Products Distribution 7 Your Integral Component to Success 7
Slide 8: Consumer Products Distribution
CONSUMER PRODUCTS DISTRIBUTION Achieva Technology Pte Ltd • The Group’s 100%-owned subsidiary: Achieva Technology Sdn. Bhd. • Major suppliers include AMD and Intel. • Achieva Technology works closely with partner brands to both fulfil their distribution needs and to create a one-stop solution for th
Slide 9: Consumer Products Distribution
CONSUMER PRODUCTS DISTRIBUTION Managed Print Services • Set up in 2008, PT SMI is 20% owned by Serial System since November 2018 • Listed on Development Board of Indonesia Stock Exchange • Started in 2014, Singapore-based Print-IQ is 70%-owned by Serial System since May 2017 • Provides managed print
Slide 10: Other Businesses
OTHER BUSINESSES Part of Group’s diversification into investment holding of high-margin companies Serial MultiVision Pte. Ltd. (100%-stake) • Core businesses: Hospitality and Healthcare solutions • Hospitality solutions: Build based on a core venue management application suite known as Venue360. • L
Slide 11: Financial Results
FINANCIAL RESULTS 11 Your Integral Component to Success 11
Slide 12: Snapshot of 3Q2019 & YTD3Q2019 Performance
SNAPSHOT OF 3Q2019 & YTD3Q2019 PERFORMANCE US$’000 3Q2019 3Q2018 Change (%) YTD3Q2019 YTD3Q2018 Change (%) Sales 184,612 385,567 (52) 615,864 1,199,490 (49) Gross Profit 11,706 30,221 (61) 41,792 95,222 (56) Gross Profit Margin (%) 6.3 7.8 (1.5 pt) 6.8 7.9 (1.1 pt) Net Profit After Tax 2,000 10,267
Slide 13: 3Q2019 Highlights
3Q2019 HIGHLIGHTS • Revenue of US$184.6M in 3Q2019, a decrease of 52% from US$385.6M in 3Q2018 • Mainly due to the termination of the electronic components distribution business with Texas Instruments (“TI”) • Excluding the impact of decline in turnover due to TI termination, turnover for the electr
Slide 14: YTD3Q2019 Highlights
YTD3Q2019 HIGHLIGHTS • Revenue of US$615.9M in YTD3Q2019, a decrease of 49% from US$1.2B in YTD3Q2018 • Mainly due to the termination of the electronic components distribution business with Texas Instruments (“TI”) which has impacted sales in all markets in Asia • Taking out the impact of decline in
Slide 15: Revenue Growth Trend
REVENUE GROWTH TREND SERIAL SYSTEM GROUP Revenue (US#039; million) 1,600 1,527 1,492 1,403 2% 1,400 1,222 6% 1,200 15% 1,036 1,000 18% 817 800 27% 658 616 600 545 24% 7% 405.2 382 408.7 385.6 400 354 315 327.6 13% 228 229.9 186 184 183 201.4 184.6 200 43% 92 44 8% -52% - 15 Your Integral Component to S
Slide 16: Outperforming the Industry
OUTPERFORMING THE INDUSTRY Asia Pacific (including Japan) Semiconductor Revenue (US#039; billion) Serial System Revenue (US#039; million) 350 1,600 1,492 1,527 323 1,403 1,400 2% 300 285 1,222 13% 6% 241 1,200 250 232 229 1,036 209 19% 15% 205 207 205 1,000 200 4% 817 18% 800 1% 658 150 616 27% 9% 545 600
Slide 17: Profitability: Gross Profit & Margin
PROFITABILITY Gross Profit & Gross Profit Margin (US#039; million) 10.0% 9.3% 9.5% 140.0 9.3% 9.0% 8.7% 8.7% 9.0% 7.8% 8.2% 7.7% 120.0 118.6 7.8% 7.5% 6.9% 7.3% 8.0% 7.0% 7.1% 105.1 6.7% 7.0% 97.4 100.0 13% 6.0% 90.4 91.5 8% 6.3% 80.0 5.0% 6% 73.5 1% 60.0 4.0% 62.6 57.5 23% 50.7 3.0% 40.0 17% -61% 2.0%
Slide 18: Profitability: Net Profit & Margin
PROFITABILITY Net Profit & Net Profit Margin (US#039; million) 20.0 3.0% 18.0 17.7 2.7% 16.1 2.5% 16.0 2.2% 85% 14.0 44% 2.0% 12.0 12.0 1.6% 11.2 1.6% 11.0 1.3% 9.6 1.4% 10.0 1.4% 1.5% 10.1 1.2% 1.3% -31% 1.2% 1.1% 1.1% 8.0 7.9 0.9% 10.3 110% 1.0% 6.0 41% 5.1 0.6% -21% 5.2 0.5% 4.0 4.6 0.3% 2.0 0.5% -1
Slide 19: Profitability: EBITDA
PROFITABILITY EBITDA (US#039; million) 50.0 45.0 43.2 40.0 35.0 30.8 65% 30.0 26.0 26.1 25.0 23.5 22.0 20.2 19.9 20.3 18.9 -16% 11% 20.0 40% -9% 15.0 -76% 17% 11.1 10.0 8.8 8.1 -5% 6.5 5.5 4.8 5.0 -2% 3.7 130% - FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 19 You
Slide 20: Financial Position: Current Ratio
FINANCIAL POSITION Maintaining Healthy Current Ratio 1.6 500.0 1.5 1.4 1.4 468.6 1.5 458.5 430.6 1.4 1.3 1.2 400.0 1.2 382.6 397.5 372.0 371.5 1.2 1.2 347.8 1.2 324.1 1.2 309.0 1.0 295.6 300.0 277.0 0.8 218.3 211.5 218.7 211.9 200.0 173.8 0.6 147.5 147.0 120.7 0.4 100.0 0.2 - - FY10 FY11 FY12 FY13 F
Slide 21: Financial Position: Net Gearing Ratio
FINANCIAL POSITION Net Gearing Ratio 140% 180.0 166.5 160.0 116% 115% 155.9 120% 112% 145.0 144.5 145.9 138.0 108% 140.0 98% 139.3 100% 89% 122.2 120.2 120.0 119.4 124.8 104.5 110.0 80% 100.0 98.7 97.9 72% 86.5 80.0 75.6 60% 71.2 54% 60.0 56.3 43% 52% 40% 40.0 37.6 20% 20.0 - 0% FY10 FY11 FY12 FY13
Slide 22: Financial Position: Cash Conversion Cycle
FINANCIAL POSITION Cash Conversion Cycle (days) 115 107 105 95 85 84 75 70 69 67 66 65 62 58 58 66 56 59 55 55 51 61 60 54 41 53 49 51 45 51 44 38 40 42 41 38 32 33 35 31 29 36 36 35 33 32 33 33 25 30 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 YTDSep19 Trade Receivable Turnover (days) Trade Payabl
Slide 23: Dividend Yield
DIVIDEND YIELD 0.22 2.8% 1H19 0.40 1.00 0.46 21.9% FY18 FY17 0.29 0.46 4.6% FY16 0.18 0.17 2.4% Total Dividend Payout (In Cent (SGD)) 0.35 0.50 6.3% FY15 (Interim & Final) each year FY14 0.30 0.75 8.0% FY13 0.24 0.25 0.30 6.3% FY12 0.22 0.30 5.0% FY11 0.30 0.16 0.33 7.9% 0.28 0.67 6.1% FY10 Singapor
Slide 24: Outlook & Strategies
OUTLOOK & STRATEGIES 24 Your Integral Component to Success 24
Slide 25: Industry Outlook
INDUSTRY OUTLOOK Uncertainties ? Greater uncertainty in the global market due to continuing US- China trade tensions, as well as Japan and South Korea ? Global economic slowdown and keen market competition ? Slowdown in semiconductor industry Bright spots New applications in IoT, AI, mobility serv
Slide 26: Group Outlook
GROUP OUTLOOK • Exploring opportunities for potential partnerships and revenue streams • Reviewing its operations and reallocating resources and personnel to boost efficiency and reduce costs • Barring unforeseen circumstances, the Group expects to remain profitable for the financial year ending 31
Slide 27: Forward-looking statements disclaimer
The presentation herein may contain forward-looking statements by the management of Serial System Ltd (“Serial System”) that pertain to expectations for financial performance of future periods versus past periods. Forward–looking statements involve certain risks and uncertainties because they relate
Slide 28: Thank You
SERIAL an he & Bl Your Integral Component to Success