Sarine Technologies Ltd · SGX:U77
Sarine Technologies — Investor Presentation (November 2014)
31 slides from Sarine Technologies's investor presentation, November 2014
Slide 1: Sarine Technologies Ltd. Corporate Presentation
Sarine Technologies Ltd. Corporate Presentation November 2014
Slide 2: Disclaimer
Disclaimer This presentation may contain statements regarding the business of Sarine Technologies Ltd and its subsidiaries (the “Group”) that are of a forward looking nature and are therefore based on management’s assumptions about future developments. Such forward looking statements are typically i
Slide 3: Agenda
Agenda Executive Summary Results Update New Products Update Appendices Company Overview Industry Overview and Sarine’s Competitive Positioning 3
Slide 4: Executive Summary
Executive Summary The Group achieved record 3Q and 9M performance: o Q3 2014 revenue +17% to US$20.4m and net profit +85% to US$5.7m o 9M 2014 revenue +16% to US$69.5m and net profit +20% to US$23.3m With the deployment of 7 GalaxyTM family systems in Q3 2014, total installed base grew to just u
Slide 5: Results Update
Results Update 5
Slide 6: Q3 and 9M 2014 Results Highlights
Q3 and 9M 2014 Results Highlights Sarine set new 3Q and 9M record on the back of increased GalaxyTM family related revenue and higher sales of traditional planning and rough-diamond processing products: o Q3 2014 revenue and net profit rose 17% and 85% to US$20.4m and US$5.7m, respectively o 9M 20
Slide 7: Q3 2014 Results Summary
Q3 2014 Results Summary Q3 2013 Q3 2014 25 +17% 20.4 20 17.3 +13% 15 14.2 (US$ m) 12.6 +12% +15% 10 6.1 6.8 6.8 +85% 5.9 5.7 5 3.1 (60%) 0 (1.1) -5 (2.9) Revenue Gross Profit Operating Profit Pre-tax Profit Tax Net Profit Note: Q3 2013 tax expense included a US$ 2.6m charge associated with the relea
Slide 8: 9M 2014 Results Summary
9M 2014 Results Summary 9M 2013 9M 2014 +16% 80 69.5 70 59.7 +16% 60 49.7 (US$ m) 50 42.7 +13% +14% 40 +20% 30 27.8 28.0 24.7 24.6 23.3 19.4 20 10 (10%) 0 -10 (5.1)(4.6) Revenue Gross Profit Operating Profit Pre-tax Profit Tax Net Profit Note: 9M 2013 tax expense included a US$ 2.6m charge associate
Slide 9: Revenue Breakdown by Geography
Revenue Breakdown by Geography Q3 2014 Q3 2013 % Share Region % Change (US$’ 000) (US$’ 000) (Q3 2014) India 16,366 13,122 25% 80% Africa 803 1,103 (27%) 4% Europe 315 355 (11%) 2% N. America 385 309 25% 2% Israel 1,178 908 30% 6% Other 1,315 1,552 (15%) 6% Total 20,362 17,349 17% 100% 9
Slide 10: Strong Balance Sheet (debt free)
Strong Balance Sheet (debt free) (US$ millions) 30 Sep 2014 31 Dec 2013 Non-Current Assets 20.9 20.4 - Property, plant & equipment 11.4 10.7 - Intangible assets 7.5 8.4 Current Assets 70.1 61.2 - Inventories 10.4 8.5 - Trade receivables 16.7 15.8 - Cash & bank deposits 40.7 33.1 Non-current Liabilit
Slide 11: Dividend
Dividend Dividend policy: US 2.0 cents per share every six months subject to Board approval, AGM approval and other conditions US cent/share 1H 2014 FY2013 FY2012 Interim 2.0 1.50 1.25 Special interim 1.0 2.50 2.00 Final N.A. 2.00 1.25 Total 3.0 6.00 4.50 Total dividend payout for FY2013 (includ
Slide 12: 5-Year Results Summary (2007 – 2013)
5-Year Results Summary (2007 – 2013) (excluding 2008 & 2009, years impaired by the GFC) (US$’000) FY2007 FY2010 FY2011 FY2012 FY2013 Revenues 37,123 45,663 57,803 63,750 76,369 Gross Profit 24,402 29,350 38,281 43,388 54,583 Net Profit** 8,010 11,111 17,366 20,755 26,475 Gross Profit Margin 65.7% 64
Slide 13: New Products Update
New Products Update 13
Slide 14: Galaxy Family Rollout
GalaxyTM Family Rollout Demand for GalaxyTM family of products remains strong in all major industry centres Optimal Planning with GalaxyTM Inclusion Mapping From just over 140 systems at year end 2013, the Group has increased total installed base to just under 185 systems as of 30 Sep 2014 The
Slide 15: DiaMension Axiom / Instructor
DiaMensionTM Axiom / InstructorTM DiaMensionTM Axiom Quantum leap in proportion measurement and symmetry grading of polished diamonds New Cut and Symmetry grading possibly a new business opportunity The InstructorTM software product For the ongoing quality control of the actual polishing p
Slide 16: Sarine Light
Sarine LightTM With increasing demand for prettier diamonds, Light Perfect Stone Performance parameters (brilliance, fire, scintillation/sparkle High Clarity, Colour and Cut grades and symmetry) are becoming accepted as understandable consumer-oriented criteria In April 2013, CIMA, a leading bri
Slide 17: Sarine Loupe
Sarine LoupeTM An imaging system that captures a polished diamond, including its internal features, in simulated three dimensions Enables buyers to view it, as if with a traditional loupe, from a multitude of angles and at varying magnifications, without having the polished diamond physically in
Slide 18: Going Forward
Going Forward Given the immediate tangible benefits of Sarine’s unique technology and the ongoing lack of meaningful competition, the Group is confident of deepening the market penetration of the GalaxyTM family of inclusion mapping systems GalaxyTM and SolarisTM inclusion mapping enhances deman
Slide 19: Growth Drivers for Recurring Revenue
Growth Drivers for Recurring Revenue Important Catalysts to Future Growth Deliveries of additional GalaxyTM family systems for rough diamond inclusion scanning and mapping to customers Adoption and roll-out of Sarine LightTM and Sarine LoupeTM Benefits to Sarine Expand Sarine’s potential marke
Slide 20: Appendix: Company Overview
Appendix Company Overview 20
Slide 21: About Sarine Technologies
About Sarine Technologies Sarine Technologies, through its proprietary systems and technologies, is a global leader in the development and provider of solutions for the entire diamond value chain, from rough diamonds (evaluation, planning, manufacturing and finishing) to polished diamonds (assessmen
Slide 22: Proven Track Record of Product Innovation
Proven Track Record of Product Innovation 2008 & Prior 2009 2010 2011 2012 & Beyond DiaMensionTM GalaxyTM 1000 / SolarisTM 100 GalaxyTM HD GalaxyTM XL DiaExpertTM 2000 DiaMark TM HD GalaxyTM Ultra DiaExpert TM DiaExpertTM Atom DiaMensionTM Nano 6.5 DiaMarkTM HD DiaMensionTM
Slide 23: Industry Overview and Sarine's Competitive Positioning
Appendix Industry Overview and Sarine’s Competitive Positioning 23
Slide 24: Diamond Industry Value Chain
Diamond Industry Value Chain De Beers concentrates ~ 40% of rough diamonds Miners worldwide; Botswana; Russia; Zimbabwe; Australia; Canada; others India accounts for ~ 90% of all stones; Manufacturers Southern Africa (S. Africa, Botswana and Namibia) emerging as important centre Gemmological Strateg
Slide 25: Diamond Industry Value Chain
Diamond Industry Value Chain Our products increase profits at all stages of the diamond trade from purchase of rough stones to sale of polished diamonds Value of Market in US$ in 2013 $15.1 $15.6 $21.6 $74.5 billion billion billion billion Rough Rough Polished Retail Sales Diamond Diamond Diamond of
Slide 26: Sarine's Value Proposition
Sarine’s Value Proposition Challenges • Need to increase industry players’ profits • Address issues of quality and beauty Sarine’s Solutions • Maximise profit from rough diamonds • Grade quality and beauty polished diamonds according to 4Cs and light performance • Solutions to affirm and enhance bra
Slide 27: Inclusion Mapping - Overview
Inclusion Mapping - Overview Diamond with Inclusion Diamonds without Inclusion Inclusion Planned diamonds Diamonds without inclusions can be worth up to 10x more No cost effective automated inclusion mapping system existed in the market until the introduction of GalaxyTM 1000 GalaxyTM/SolarisT
Slide 28: Inclusion Technologies Before Galaxy 1000
Inclusion Technologies Before GalaxyTM 1000 Technology Suppliers Disadvantages Needs windows opened in stone Done by expert personnel Manual Inclusion Sarine and others Limited success on complicated inclusions Charting Limited to larger inclusion sizes Very long (hours/days per stone) pro
Slide 29: Galaxy / Solaris in Planning
GalaxyTM / SolarisTM in Planning GalaxyTM DiaExpertTM Set-up Station DiaMarkTM Z SolarisTM Linking inclusion 3-D External Internal Inclusion mapping data and Convex / Scanning / rough planning to Marking Concave Mapping Mapping optimise polished diamonds’ value 29
Slide 30: Competitors
Competitors Diamond Planning & Laser Sawing & Grading Products Cutting Products OctoNus (Russia) Synova (Switzerland) High-end rough planning and polished evaluation equipment; High-end, fast, safe green lasers; extremely expensive ($600K - trying to launch Immersion Glass inclusion mapping system;
Slide 31: Thank You Q & A
Thank You Q&A 31
Sarine Technologies — Investor Presentation (November 2014) on 6ix