Slide 1: 2024 Annual Results Presentation
Stock Code: 1286 2024 ANNUAL RESULTS PRESENTATION March 11, 2025
Slide 2: Disclaimer
Disclaimer The information set forth in this presentation relates to the business of Impro Precision Industries Limited (the “Company”, together with its subsidiaries, the “Group”) for the year ended December 31, 2024. This presentation is intended to provide updated information on the Group for the
Slide 3: FY2024 Results Summary
FY2024 Results Summary Moderate Revenue Growth, with spectacular Financial Increase in Gross Profit Margin and Adjusted profit Performance in High Horsepower Engine End-markets attributable to shareholders of the Company • 2024 Group revenue up 1.8% y-on-y to HK$4,686.8M • Group’s GP Margin increase
Slide 4: Revenue by End-market
Revenue by End-market 2H/2023 2H/2024 FY2023 FY2024 2H/2023 2H/2024 Inc/(Dec) FY2023 FY2024 Inc/(Dec) By End-market HK$ mil HK$ mil HK$ mil Change HK$ mil HK$ mil HK$ mil Change Diversified Industrials 1,029.5 1,121.8 92.3 9.0% 2,213.6 2,260.0 46.4 2.1% Automotive 793.8 774.2 (19.6) -2.5% 1,694.7 1,
Slide 5: Revenue by End-market
Revenue by End-market 2H/2023 2H/2024 Inc/(Dec) FY2023 FY2024 Inc/(Dec) By End-market HK$ mil HK$ mil HK$ mil Change HK$ mil HK$ mil HK$ mil Change Diversified Industrials 1,029.5 1,121.8 92.3 9.0% 2,213.6 2,260.0 46.4 2.1% - High Horsepower Engine 243.8 426.0 182.2 74.7% 495.6 785.8 290.2 58.6% - C
Slide 6: Revenue by Business
Revenue by Business 2H/2023 2H/2024 FY2023 FY2024 2H/2023 2H/2024 Inc/(Dec) FY2023 FY2024 Inc/(Dec) By Business HK$ mil HK$ mil HK$ mil Change HK$ mil HK$ mil HK$ mil Change Investment Casting 919.9 847.7 (72.2) -7.8% 1,914.8 1,804.7 (110.1) -5.7% Precision Machining & Others 859.6 815.5 (44.1) -5.1
Slide 7: Revenue by Geographical
Revenue by Geographical 2H/2023 2H/2024 FY2023 FY2024 2H/2023 2H/2024 Inc/(Dec) FY2023 FY2024 Inc/(Dec) By Geographical HK$ mil HK$ mil HK$ mil Change HK$ mil HK$ mil HK$ mil Change Americas 1,092.8 1,124.5 31.7 2.9% 2,233.3 2,328.5 95.2 4.3% - United States 995.7 992.2 (3.5) -0.4% 2,019.0 2,082.3 6
Slide 8: 2024 Financial Review
impro 2024 Financial Review
Slide 9: 2024 Financial Review
2024 Financial Review FY2023 FY2024 Financial Highlights HK$ mil HK$ mil Change Revenue 4,604.4 4,686.8 1.8% Gross profit 1,178.3 1,269.1 7.7% Gross profit margin 25.6% 27.1% 1.5% Other revenue 30.2 33.2 9.9% Other net income 20.0 125.5 527.5% Selling and distribution expenses (158.5) (177.0) 11.7%
Slide 10: Gross Profit
Gross Profit HK$ mil 30.0% 1,700.0 27.1% 25.6% 25.0% 1,400.0 1,269.1 1,178.3 20.0% 1,100.0 177.7 21.6% 315.5 28.6% 15.0% 800.0 375.8 20.8% 326.8 19.0% 10.0% 500.0 630.0 32.9% 625.0 34.6% 200.0 5.0% (5.2) -9.1% 1.8 3.0% (100.0) FY2023 FY2024 0.0% Investment Casting Precision Machining and Others Sand
Slide 11: Cost of Sales Analysis
Cost of Sales Analysis HK$ mil 4,000.0 3,500.0 3,426.1 -0.2% 3,417.7 580.7 16.9% 607.0 17.8% 3,000.0 221.0 6.5% 223.4 6.5% 2,500.0 322.3 9.4% 318.7 9.3% 2,000.0 827.0 24.1% 935.4 27.4% 1,500.0 1,000.0 1,475.1 43.1% 1,333.2 39.0% 500.0 - FY2023 FY2024 Cost of materials (raw materials & Staff Costs De
Slide 12: Operating Expenses Analysis
Operating Expenses Analysis HK$ mil Selling and Distribution Expenses HK$ mil Administrative and Other Operating Expenses 300.0 500.0 9.0% 7.7% 8.0% 7.4% 250.0 3.8% 4.0% 400.0 7.0% 3.4% 362.6 341.7 200.0 6.0% 177.0 300.0 158.5 5.0% 150.0 4.0% 2.0% 200.0 100.0 3.0% 2.0% 100.0 50.0 1.0% - 0.0% - 0.0%
Slide 13: Key Working Capital Ratios
Key Working Capital Ratios Inventory Turnover Days (Average) days HK$ mil Trade and Bills Receivable Turnover Days (Average) days HK$ mil 1,800.0 135 150 1,600.0 105 123 88 88 87 118 1,400.0 90 1,500.0 120 1,200.0 1,091.2 1,081.4 1,120.6 75 1,200.0 1,152.1 1,052.2 1,000.0 961.2 90 60 900.0 800.0 45
Slide 14: Capital Expenditure
Capital Expenditure HK$ mil Actual and Forecast Capex in FY2022-FY2025 1,200.0 1500 8.5% 7.3% 1200 900.0 5.7% 713.0 900 632.7 650.0 599.7 600.0 319.9 290.1 600 353.1 425.8 300.0 300 393.1 342.6 246.6 224.2 0.0 0 FY2022 FY2023 FY2024 FY2025 Actual Capex Forecast Capex Capex (Excl. Mexico) as % of Rev
Slide 15: Dividends & Available Bank Facilities
Dividends & Available Bank Facilities Dividends Available Bank Facilities HK$ mil HK$ mil 400.0 2,400.0 57% 350.0 49% 2,100.0 46% 300.0 1,800.0 250.0 1,500.0 200.0 1,200.0 2,308.6 150.0 301.4 301.9 302.0 900.0 1,785.6 100.0 600.0 1,114.4 50.0 300.0 - - FY2022 FY2023 FY2024 FY2022 FY2023 FY2024 Divid
Slide 16: Key Financial Ratios
Key Financial Ratios 20.0% Adjusted Return on Shareholders' Equity 50.0% Net Gearing Ratio 14.9% 39.2% 40.0% 15.0% 33.2% 33.6% 12.8% 11.5% 30.0% 10.0% 20.0% 5.0% 10.0% 0.0% 0.0% FY2022 FY2023 FY2024 FY2022 FY2023 FY2024 x 2.0 Net Debt / Adj. EBITDA x Interest Coverage 15.0 13.4 1.5 1.4 1.3 1.2 10.0
Slide 17: Sustainability Highlights
Sustainability Highlights Tonne of CO2/ HK$ mil Revenue Tonne 60.0 Greenhouse Gas Emission Intensity 50.0 Waste Disposal 87.8% 41.2% 76.9% 50.0 40.0% 40.0 34.1% 38.3% 40.0 30.0 30.0 20.0 30.9 20.0 37.7 33.7 34.3 10.0 10.0 11.7 9.2 - - FY2022 FY2023 FY2024 FY2022 FY2023 FY2024 GHG Emission Intensity
Slide 18: Business Outlook
impro Business Outloo
Slide 19: Mexico SLP Campus Construction Update
Mexico SLP Campus Construction Update Aerospace & Aerospace & ST Plant SC Plant ST Plant SC Plant PM Plant PM Plant IC Plant IC Plant (Photo taken on Feb 27, 2025) (Photo taken on Jul 22, 2024) ⚫ Mexico SLP Campus Precision Machining (PM), Sand Casting (SC) and Investment Casting (IC) plants are cur
Slide 20: Business Outlook
Business Outlook ⚫ Uncertainties such as geopolitical conflicts, high inflation and high interest rates that have persisted for several years will continue to loom over the global economy, dampening the short-term revenue growth rates in some end-markets ⚫ The Group’s “Global Footprint” and “Diversi
Slide 21: Q&A Session
impro Q&A Session
Slide 22: Appendices – Financials Summary
Appendices – Financials Summary
Slide 23: Reconciliation of Adjusted Profit Attributable to Shareholders and Adjusted EBITDA
Appendix 1 - Reconciliation of Adjusted Profit Attributable to Shareholders and Adjusted EBITDA FY2023 FY2024 HK$ mil HK$ mil Change Reconciliation to Adj. Profit Attr. to Shareholders Profit after tax 586.8 645.8 Adjustments (net of tax): - Insurance claims received, net of legal expenses & tax, (1
Slide 24: Consolidated Statement of Profit or Loss
Appendix 2 – Consolidated Statement of Profit or Loss FY2023 FY2024 HK$ mil HK$ mil Revenue 4,604.4 4,686.8 Cost of sales (3,426.1) (3,417.7) Gross Profit 1,178.3 1,269.1 Other revenue 30.2 33.2 Other net income 20.0 125.5 Selling and distribution expenses (158.5) (177.0) Administrative and other op
Slide 25: Consolidated Statement of Financial Position
Appendix 3 – Consolidated Statement of Financial Position 12/31/2023 12/31/2024 HK$ mil HK$ mil Non-current assets Property, plant and equipment (PPE) 4,535.5 4,322.6 Prepayments for purchase of PPE 52.4 75.7 Intangible assets 214.8 184.2 Goodwill 227.5 222.7 Deferred expenses 161.1 159.0 Other fina
Slide 26: Consolidated Statement of Financial Position
Appendix 3 – Consolidated Statement of Financial Position 12/31/2023 12/31/2024 HK$ mil HK$ mil Current liabilities Bank loans 1,028.6 919.2 Lease liabilities 7.7 3.8 Trade payables 519.5 588.6 Other payables and accruals 308.9 378.1 Taxation payable 59.6 24.4 1,924.3 1,914.1 Net current assets 1,06
Slide 27: Consolidated Statement of Financial Position
Appendix 3 – Consolidated Statement of Financial Position 12/31/2023 12/31/2024 HK$ mil HK$ mil Capital and reserves Share capital 188.7 188.7 Reserves 4,691.9 4,532.7 Total equity attributable to equity shareholders of the Company 4,880.6 4,721.4 Non-controlling interest 20.3 21.5 TOTAL EQUITY 4,90
Slide 28: Condensed Consolidated Cash Flow Statement
Appendix 4 – Condensed Consolidated Cash Flow Statement FY2023 FY2024 HK$ mil HK$ mil Operating activities Cash generated from operations 1,454.5 1,259.0 Tax paid (173.1) (112.8) Net cash generated from operating activities 1,281.4 1,146.2 Investing activities Payment for the acquisition of PPE (711
Slide 29: Condensed Consolidated Cash Flow Statement
Appendix 4 – Condensed Consolidated Cash Flow Statement FY2023 FY2024 HK$ mil HK$ mil Financing activities Proceeds from bank loans 1,295.0 1,529.4 Repayment of bank loans (1,228.3) (1,578.7) Interest paid (115.5) (110.1) Lease rentals paid (15.7) (5.8) Proceeds from exercise of share options 6.5 -
Slide 30: Thank you
impro Reliable - Flexible - Global Thank you