Slide 1: FY2020 Results Presentation Appendix 1
Appendix 1 FY2020 RESULTS PRESENTATION Wednesday, 28 April 2021 1 1
Slide 2: Agenda
FINANCIAL RESULTS AGENDA STRATEGIC REVIEW By moving forward and thinking forward, Serial System helps its partners to be more competitive in the marketplace, today and in the future OUTLOOK 2 2
Slide 3: Financial Results
FINANCIAL RESULTS 3 Your Integral Component to Success 3
Slide 4: Snapshot of FY2020 Performance
SNAPSHOT OF FY2020 PERFORMANCE US$’000 FY2020 FY2019 Change (%) Sales 731,400 791,637 (8) Gross Profit 45,896 54,191 (15) Gross Profit Margin (%) 6.3 6.8 (0.5) ppt Net Profit After Tax 261 8,032 (97) (Attributable to equity holders of the Company) EPS - fully diluted (US cents)(1) 0.03 0.90 (97) NAV
Slide 5: FY2020 Highlights
FY2020 HIGHLIGHTS • Revenue of US$731.4M in FY2020, a decrease of 8% from US$791.6M in FY2019 • Revenue for 2H2020 was 33% higher than 1H2020. • Improvement in 2H2020 was due to improvement in business activities, particularly in China where economic activity has recovered. • Turnover for the electr
Slide 6: Revenue Trend
REVENUE TREND Revenue (US#039; million) 1,600 1,527 1,492 1,403 1,400 2% 1,222 1,200 6% 1,036 -48% 1,000 15% 817 18% 792 800 731 658 27% 616 600 545 24% -8% 431.3 382 7% 314.5 417.1 400 354 360.4 315 13% 33% 228 186 184 183 43% 200 16% 92 44 8% -27% - 6 Your Integral Component to Success 6
Slide 7: Profitability: Gross Profit & Gross Profit Margin
PROFITABILITY Gross Profit & Gross Profit Margin (US#039; million) 10.0% 9.5% 140.0 9.3% 9.3% 9.0% 8.7% 8.7% 9.0% 120.0 7.8% 8.0% 7.5% 6.9% 7.0% 7.0% 118.6 6.8% 6.7% 7.0% 6.4% 100.0 90.4 91.5 6.3% 97.4 105.1 6.0% 13% 73.5 80.0 8% 6.1% 6% -54% 5.0% 62.6 1% 57.5 60.0 4.0% 23% 50.7 17% 3.0% 54.2 45.9 40.0
Slide 8: Profitability: Net Profit & Net Profit Margin
PROFITABILITY Net Profit & Net Profit Margin (US#039; million) 20.0 2.2% 2.5% 18.0 17.7 2.0% 16.0 1.6% 1.6% 85% 1.3% 1.4% 14.0 1.2% 1.1% 1.5% 1.2% 1.3% 12.0 44% 0.9% 1.0% 0.6% 0.7% 1.0% 12.0 11.2 10.0 16.1 10.1 11.0 41% 0.3% 0.5% 8.0 9.6 -31% 8.0 7.9 6.0 110% 0.0% 0.0% -21% 4.0 5.1 5.4 4.8 4.6 -55% -16
Slide 9: Profitability: EBITDA
PROFITABILITY EBITDA (US#039; million) 50.0 44.8 45.0 40.0 35.0 30.8 64% 30.0 27.4 26.0 24.4 23.7 25.0 22.0 -15% 12% 20.2 19.9 -47% 20.0 18.9 40% -6% 17% 14.0 15.0 13.2 12.7 -5% -44% 9.6 10.0 8.8 -2% 5.0 130% 0.5 - FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 1H19 2H19 1H20 2H20 9 Your I
Slide 10: Financial Position: Healthy Current Ratio
FINANCIAL POSITION Maintaining Healthy Current Ratio 1.6 500.0 1.5 1.4 1.4 1.5 468.6 1.4 458.5 430.6 1.4 1.3 397.5 1.2 400.0 1.2 1.2 1.2 371.5 1.2 1.2 372.0 347.8 382.6 340.8 324.1 332.2 295.6 1.0 300.0 277.0 230.7 234.0 0.8 218.3 211.5 218.7 200.0 173.8 0.6 147.5 147.0 120.7 0.4 100.0 0.2 - - FY10
Slide 11: Financial Position: Net Gearing Ratio
FINANCIAL POSITION Net Gearing Ratio 140% 180.0 166.5 160.0 116% 115% 155.9 120% 112% 151.7 145.0 147.2 138.0 144.5 140.0 98% 139.3 108% 100% 89% 122.2 124.8 120.0 120.2 119.4 110.0 104.5 80% 100.0 98.7 72% 97.9 86.5 82.3 80.0 54% 60% 71.2 72.6 56% 60.0 56.3 43% 48% 40% 40.0 37.6 20% 20.0 - 0% FY10
Slide 12: Financial Position: Cash Conversion Cycle
FINANCIAL POSITION Cash Conversion Cycle (days) 125 115 113 105 95 96 87 85 75 70 67 66 72 66 69 62 66 65 58 58 56 61 55 51 55 60 61 51 54 53 45 44 51 40 41 49 38 40 32 33 42 35 38 41 37 36 35 31 33 29 25 30 32 33 33 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Trade Receivable Turnover (d
Slide 13: Dividend Yield
DIVIDEND YIELD FY20 0.11 1.3% 4.3% FY19 0.22 0.13 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 0.30 0.75 8.0% FY14 0.24 0.25 0.30 6.3% FY13 0.22 0.30 5.0% FY12 Interim Special Final 0.30 0.16 0
Slide 14: Strategic Review
STRATEGIC REVIEW 14 Your Integral Component to Success 14
Slide 15: Overview of Challenges Since Late 2018
OVERVIEW OF CHALLENGES SINCE LATE 2018 • Cessation of Texas Instruments (TI) Relationship At End of 2018 • Accounted for >55% of group turnover • Also affected plans for an IPO in Hong Kong • U.S. - China ‘Trade War’ Has Significant Impact on Semiconductor Business • Restrictions by US on technology
Slide 16: Strategy – Expanded Product Portfolio and Supplier Relationships
STRATEGY 1 – Expanded Product Portfolio and Supplier Relationships • Expanded Product Portfolio • Deepening penetration into 5G infrastructure, autonomous and electric vehicles and data centres • Continue to focus efforts to expand its product portfolio in these technologies by working closely with
Slide 17: Strategy – Response to COVID-19
STRATEGY 2 – Response to COVID-19 • COVID-19 was a catalyst to improve internal efficiencies • Changing workflow practices, reduction of travel-related expenses • Implemented work-from-home measures and rotating shifts in offices • Adopted teleconferencing, which significantly reduced travel and acc
Slide 18: Strategy - Expansion of Computer Peripherals and Print Service Businesses
STRATEGY 3 - Expansion of Computer Peripherals and Print Service Businesses • Increased activities in Malaysia during pandemic • Business momentum improved due to new product launches from Intel and AMD • Benefited from work-from-home measures and Movement Control Order in Malaysia • Expansion of Ma
Slide 19: Outlook
OUTLOOK 19 Your Integral Component to Success 19
Slide 20: Industry Outlook
INDUSTRY OUTLOOK Bright spots Strong recovery of economic and manufacturing activity in China to continue in 2021 China accelerating its semiconductor production, deployment of 5G Serial System to benefit from product portfolio expansion and new supplier base Continued demand in Malaysia for
Slide 21: Group Outlook
GROUP OUTLOOK • In view of business volatility and ongoing supply chain disruptions, the Group remains cautiously optimistic • Barring unforeseen circumstances, revenue for FY2021 will improve compared to FY2020 • The Group will continue its growth strategies outlined in its 21 December 2020 announc
Slide 22: 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 23: Thank You
Your Integral Component to Success