33 slides from Willas-array Electronics (holdings)'s earnings presentation, Jun 5, 2014
Slide 1: FY 2014 Results Briefing
FY 2014 Results Briefing June 4, 2014
Slide 2: Contents
Contents • About Us o Corporate Profile o Products & Services - Our Principals o Our Customers o Investment Merits o Business Structure • FY2014 Results Highlights • Business Review o Key Market Review - China o Business Segment Review o Market Highlight o New Suppliers 2
Slide 3: About Us
About Us • Corporate Profile • Products & Services - Our Principals • Our Customers • Investment Merits • Business Structure
Slide 4: Corporate Profile
Corporate Profile • One of the largest HK-based electronics company involved in the global sourcing and regional distribution of electronics components Beijing Qingdao • Established in 1981 and listed on the Chengdu Mainboard of the Singapore Exchange in Shanghai 2001 Chongqing Xiamen • Strong netwo
Slide 5: Products and Services
PRODUCTS AND SERVICES Supplier
Slide 6: Our Customers
Our Customers We have a growing pool of over 3,000 customers in Hong Kong, China and Taiwan 6
Slide 7: Investment Merits
Investment Merits Market insight and strong fundamentals •Leading components distributor with a wide product range for different sectors • Long-standing and excellent capabilities in sales and engineering •Extensive and growing network in China •Stable and well-developed relationships with suppliers
Slide 8: Business Structure
Business Structure Willas-Array Electronics (Holdings) Limited Greater China Northern Southern Hong Kong Taiwan China China Willas-Array Array Willas-Array Willas-Array Willas-Array Electronics Electronics Electronics Electronics Electronics (Hong Kong) (China) (Shanghai) (Shenzhen) (Taiwan) Limited
Slide 9: FY2014 Results Highlights
FY2014 Results Highlights July 20099
Slide 10: Dividend & Dividend Payout
Dividend & Dividend Payout HK cents Dividend Payout 14 90% 75% 80% 12 10.152 10.354 70% 10 63% 60% 55% 8 50% 7.489 51% 50% 6.822 50% 45% 50% 48% 6.677 51% 45% 46% 5.923 6.088 6.132 5.461 5.651 40% 6 4.43 4.49 30% 4 20% 2 10% 0 0 0% 0% a b c FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
Slide 11: Profit & Loss
Profit & Loss HK$’M FY 14 FY 13 % Change Turnover 3,196.3 3,157.6 1.2% EBITDA 95.1 82.9 14.7% Depreciation & Amortization (11.6) (12.3) (5.0%) Finance costs (17.2) (16.2) 6.0% Listing expenses (26.1) NM Profit before tax 40.2 54.4 (26.1%) Income tax expense (14.8) (13.1) 13.0% Profit after tax 25.
Slide 12: Inventory Level
Inventory Level In HK$’M 550 500 481 * 453 463 448 446 449 * 435 439 437 450 404 400 370 341 * 343 350 300 250 200 150 100 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 13 * 13 13 13 13 13 13 * 13 13 13 14 14 14 * * Excluding Goods-in-Transit 12
Slide 13: Inventory Turnover Ratio
Inventory Turnover Ratio No. of days 70 66 57 58 59 58 60 60 55 54 53 56 46 49 50 44 40 30 20 10 0 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 13 13 13 13 13 13 13 13 13 13 14 14 14 13
Slide 14: Net Accounts Receivable
Net Accounts Receivable In HK$’M 700 612 602 619 602 600 559 564 580 578 560 554 503 511 525 500 400 300 200 100 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 13 13 13 13 13 13 13 13 13 13 14 14 14 14
Slide 15: Debtors Turnover Ratio
Debtors Turnover Ratio No. of days 80 73 72 76 68 66 66 69 70 65 64 64 64 59 59 60 50 40 30 20 10 0 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 13 13 13 13 13 13 13 13 13 13 14 14 14 15
Slide 16: Net Cash Per Share
Net Cash Per Share HK Cents 120 100 95.5 91.5 80 61.5 60 44.6 40 30.6 20 0 2010 2011 2012 2013 2014 Net Cash: Cash and bank balances less bank borrowings 16
Slide 17: Business Review
Business Review • Key Market Review - China • Business Segment Review • Market Highlight • New Suppliers
Slide 18: Key Market Review - China
Key Market Review - China Export in 2013 China's exports rose 7.9% y-o-y to RMB$2.21 trillion in 2013 Balance GDP Growth in 2013 • Consumption contributed 50% GDP • Investment contributed 54.4% • Trade of goods and services was a negative 4.4% [Source: China’s National Bureau of Statistics] 18
Slide 19: Key Market Review - China
Key Market Review - China Domestic Consumption • Stable • Consumer Price Index 2013 CPI @ + 2.6% 2014 CPI Forecast @ +3.5% • GDP Growth 2013 Chinese GDP +7.7% 2014 Full-Year Target is +7.5%. [Source: Apr 2014 National Bureau of Statistics of China] 19
Slide 20: Business Review
Business Review • Business Segment Review Segment Performance Segment Strategy
Slide 21: Segment Performance
Review - Business Review Segment Performance (in HK#039;000) FY 2014 FY 2013 Increase (Decrease) Turnover % % % Industrial 779,400 24.4% 735,829 23.3% 43,571 5.9% Dealer 490,094 15.3% 462,232 14.6% 27,862 6.0% Telecommunications 436,265 13.7% 519,841 16.5% (83,576) (16.1%) Home Appliance 364,857 11.4%
Slide 22: Business Segment Review
Business Segment Review Segment Performance FY 2014 Change FY 2013 Change Market Segment (YoY) (YoY) Industrial +5.9% -1.4% Telecom -16.1% +8.7% Automotive +14.7% +17.1% Home Appliance -0.2% -1.6% Audio/Video -4.2% -11.8% Lighting +9.9% -21% EMS +8.3% -21% Dealer +6% +5.1% Others -1.5% -23.7% Total
Slide 23: Business Segment Review: Segment Strategy
Business Segment Review Segment Strategy Segment. Strategy Industrial • Continue to invest in engineering resources to explore more applications • Source for new product line to expand product offering Telecommunication • Capture the 4G opportunity • Careful inventory control Automotive • Position o
Slide 24: Business Segment Review: Segment Strategy
Business Segment Review Segment Strategy Segment Strategy Audio/Video • Target the wireless audio application • More solutions for High-ended Audio Lighting • Increase market share in traditional lighting • Source for new product line for LED lighting 24
Slide 25: Business Review
Business Review • Market Highlight Telecommunication Automotive
Slide 26: Telecommunication
Telecommunication It is predicted that from 2013-2017, the GAGR (Gross Annual Growth Rate) of the global shipments of TD-LTE mobile phones will reach 103%. By 2017, the shipments of the TD-LTE mobile phones will account for nearly 1/4 of 4G mobile phones. [Source: IDC Dec 2013] In China, a 1,500%
Slide 27: Telecommunication
Telecommunication Application 4G Smartphones LTE 3G Smartphones Tablet Wearable Electronics Internet of Things(IoT)
Slide 28: Automotive
Automotive China's total number of car production and sales rose by 14.8% (21.9 million) and 13.9% (21.98 million vehicles) in 2013 respectively. No. of Vehicles produced in China It is projected that number of car sold in China will grow between 8% and 10% in 25000000 2014, with total demand re
Slide 29: Automotive
Automotive [Source: Strategy Analytics, IHS Automotive, Jan 2014] 29
Slide 30: Automotive
Automotive Application Dash Board BLDC Fuel / Water /Oil Pump HVAC Tire Pressure Monitoring System Electronic Power Steering Cooling Fan AFS/HID Lighting Door/Window motor control Car Infotainment
Slide 31: Business Review
Business Review • New Suppliers
Slide 32: New Suppliers
New Suppliers Supplier Country Products Applications Susumu JPN Thin-film surface mount Resistor Automotive, high precision equipment, Industrial control system SANKEN Electric JPN Power Management IC, motor High power supply unit, control IC, automotive, industrial power supply, motor control Genes
Slide 33: Thank You!
LHe Fle F (A) SBR A Al Willas-Array Electronics (Holdings) Limited / WILLAS-ARRAY™