Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Broadway Industrial Group — FY2022 Earnings Presentation
25 slides from Singapore Exchange's earnings presentation, Feb 28, 2023
Slide 1: Broadway Industrial Group Limited FY2022 Results Presentation
Broadway Industrial Group Limited FY2022 Results Presentation 28 February 2023 BIGL Confidential @ 2023 1
Slide 2: Contents
Contents Business Overview Tan Choon Hoong Chief Executive Officer FY2022 Performance Review Tiong Chi Sieng Chief Financial Officer Investment Highlights Lew Syn Pau Chairman Q&A Disclaimer: This presentation may contain forward-looking statements. The actual future performance and results of Broad
Slide 3: Business Overview
Business Overview Corporate Profile HDD Business Unit & Outlook Introduction to new Precision Engineering Business & Outlook BIGL Confidential @ 2023 3
Slide 4: Corporate Profile
Corporate Profile Core Businesses HDD Business Unit Precision Engineering Unit KOREA (SALES OFFICE) One of the leaders in the Newly established in late 2022 / manufacture of precision early 2023 following a joint components and assemblies venture with Korea-based company Key provider of actuator arm
Slide 5: HDD Business Unit & Outlook
HDD Business Unit & Outlook BIGL Confidential @ 2023 5
Slide 6: Outlook for Enterprise HDD
Outlook for Enterprise HDD Prospects remain intact with consistent growth drivers to fuel demand for enterprise HDDs Manufacturers continue to add new HDD technologies Cloud storage such as Seagate’s holds strength as development of hybrid working and HAMR (heat-assisted Relentless rise in work from
Slide 7: Long Term Forecast for Enterprise Segment
Long Term Forecast for Enterprise Segment Actuals Long-Term Forecast By units 2022 2023 2024 2025 2026 2027 CAGR Enterprise segment Total Computing/CE 102.41 87.74 94.84 90.42 87.28 83.03 -4.1% expected to grow modestly -40.4% -14.3% 8.1% -4.7% -3.5% -4.9% in 2023 due to potential % recession. Total
Slide 8: Strategies to Cushion Near Term Challenges
Strategies to Cushion Near Term Challenges 01. Remain nimble 01 02. Manage utilisation Closely monitor macroenvironment Ensure capacity utilisation is at and markets and adjust strategies optimum levels accordingly 02 03 03. Engage stakeholders 04. Increase effectiveness Increase engagement with key
Slide 9: Introduction to new Precision Engineering Business Unit & Outlook
Introduction to new Precision Engineering Business Unit & Outlook BIGL Confidential @ 2023 9
Slide 10: Introduction to New PE Unit
Introduction to New PE Unit DIVERSIFICATION INTO New income stream PRECISION ENGINEERING • Provides new revenue and profit • Dec 2022: Established a JVCo – BIGL Korea stream from non-HDD customers • Jan 2023: Established a subsidiary – BIGL Vietnam • Paves the way to expand into the • Enables BIGL t
Slide 11: Positioned to Ride Regional 5G Opportunities
Positioned to Ride Regional 5G Opportunities 5G adoption is expected to accelerate the Internet of Things (IoT) in the region. South Korea is expanding Japan was expected to move to Since 2021, India’s network networks following initial standalone 5G by the end of operators have been enhancing deplo
Slide 12: Other Target Industries of PE Unit
Other Target Industries of PE Unit Automotive Industry* Microwave Systems** • The automotive industry is the largest market for precision • Used in various communication applications such as machined parts. cellular, radio telecommunication broadband, satellite, radar and navigation • Currently, the
Slide 13: Growing Demand for Machined Parts
Growing Demand for Machined Parts 5G Communication Equipment and its mechanical parts market: increasing over 10% continuously + GROWING DEMAND FOR PRECISION PARTS* 5G Mobile Equipment Mechanical parts Driven by increasing sales of electric vehicles in countries, such as China and India, along with
Slide 14: Our PE Products
Our PE Products Machined parts for wireless infrastructure and Machined parts for immersive display (Smart Windows) microwave energy product BIGL Confidential @ 2023 14
Slide 15: FY2022 Performance Review
FY2022 Performance Review BIGL Confidential @ 2023 15
Slide 16: 2H2022 Financial Highlights
2H2022 Financial Highlights 52.3% S$124.0M -S$1.2M -1.0% REVENUE NPAT* NPAT S$124.0M S$0.2M MARGIN 0.1% HDD HDD HDD NPAT REVENUE NPAT* MARGIN -0.26C S$29.4M EPS CASH ON HAND *NPAT is net profit after tax and minority interest BIGL Confidential @ 2023 16
Slide 17: FY2022 Financial Highlights
FY2022 Financial Highlights 25.2% 58.9% S$352.4M S$6.3M 1.8% REVENUE NPAT* NPAT S$352.3M S$8.2M MARGIN 2.3% HDD HDD HDD NPAT REVENUE NPAT* MARGIN 57.8% 1.38c S$29.4M 7.2% EPS CASH ON ROE** HAND * NPAT is net profit after tax and minority interest ** Annualised RoE BIGL Confidential @ 2023 17
Slide 18: FY2022 Performance Review
FY2022 Performance Review • Sharp decline in HDD market demand in 2H FY2022, which led to the lowest unit shipment and revenue in recent history. This severely impacted performance and depressed margins due to factory resource underutilisation. • Remained profitable in FY2022 despite challenging sec
Slide 19: Healthy Performance since Restructuring
Healthy Performance since Restructuring Revenue Gross Profit (S$’m) & Net Profit (S$’m) & (S$’m) Gross Profit Margin (%) Net Profit Margin (%) 40 10.0 7.4% 9.0 6.9% 8.0 20 3.5% 3.2% 1.8% 471.4 35 6.0% 7.0 0 6.0 -7.0% 34.7 5.0 15 3.4% 15.3 30 4.0 400.7 3.0 14.1 -10 2.0 10 352.4 25 27.7 1.0 0.0 -20 -1
Slide 20: Summary of Balance Sheet
Summary of Balance Sheet 31 December S$’million 2019 2020 2021 2022 Cash & bank balances 8.7 29.0 27.7 29.4 Key Highlights: • Balance sheet continued to strengthen in FY2022. Net current assets (26.2) 9.0 22.6 24.8 • Inventories, receivables and Net non-current assets 88.1 67.2 65.2 63.2 payables de
Slide 21: Key Financial Ratios
Key Financial Ratios • Key financial matrices remain relatively healthy despite reduced profits, increased industry headwinds and challenging macroeconomic environment. 31 December S$ Mil 2019 2020 2021 2022 Working Capital Ratio (Current Assets / Current Liabilities) 0.79 1.08 1.17 1.42 Current Ass
Slide 22: Investment Highlights
Investment Highlights BIGL Confidential @ 2023 22
Slide 23: Key Investment Highlights
Key Investment Highlights HDD Business: • Continued focus on the growing high value, high performance enterprise segment of HDDs, which is expected from the relentless growth in enterprise usage such as data centres and cloud storage Precision Engineering Business: • Leveraging machining competencie
Slide 24: Position Among Peers
Position Among Peers* Market Cap Price (S$) Net profit ROE Debt / P/E Div yield (S$’ m) margin (%) (%) Equity (times) (%) (times) BIGL 44.01 0.10 1.79 7.22 Net Cash 7.03 9.7 Frencken Group 478.27 1.12 6.86 14.27 0.032 9.01 3.59 Limited UMS Holdings Limited 751.00 1.12 18.51 19.99 Net Cash 12.33 3.52
Slide 25: Thank You Questions please?
Thank You Questions please? BIGL Confidential @ 2023 25
Broadway Industrial Group — FY2022 Earnings Presentation on 6ix