Serial System Ltd · SGX:S69

Serial System — Shareholder Meeting (April 2017)

34 slides from Serial System's shareholder meeting presentation, Apr 28, 2017

  1. Slide 1: Corporate Presentation

    Corporate Presentation Friday, 28 April 2017 1 1

  2. Slide 2: Agenda

    AGENDA 1. Corporate Overview 2. Corporate Highlights 3. Financial Results 4. Outlook & Strategies 2 2

  3. Slide 3: Corporate Overview

    Corporate Overview © 2012 PRIVATE & CONFIDENTIAL 3 © 2011 A.S. LOUKEN BRANDING PTE LTD. PRIVATE & CONFIDENTIAL | 3

  4. Slide 4: Serial System at a Glance

    SERIAL SYSTEM AT A GLANCE The largest One of Asia Pacific’s electronic largest electronic component distribution network distributor listed on SGX Electronic Total Shares: Components 896 million (95%)* Free Float: 42% 1Q2017 FY2016 Market Capitalisation: S$159M Hong Kong 58% 61% (As at 27 April 2017

  5. Slide 5: Partnering Leading Suppliers

    Partnering Leading Suppliers Electronic Components Distribution Business … more than 90 Franchised Product Lines in Serial Group 5 5

  6. Slide 6: Partnering Leading Suppliers

    Partnering Leading Suppliers Consumer Products Distribution Business 6 6

  7. Slide 7: Consumer Products Distribution

    Consumer Products Distribution The Group comprises 100%-owned subsidiaries: Swift-Value Business Pte. Ltd, Achieva Technology Group, Serial I-Tech Group, 70%-owned Hydra & Thermal Group and 70%-owned Print IQ Singapore Pte. Ltd. Major suppliers include Hewlett-Packard, Fuji Xerox, Oki, Panasonic, In

  8. Slide 8: Other Businesses - Part of Group's diversification

    OTHER BUSINESSES - Part of Group’s diversification into investment holding of high-margin companies Serial MultiVision Pte. Ltd. Contract Sterilization Services Pte Ltd (100%-stake) (100%-stake)  Core businesses: hospitality solutions  Assembly and distribution of medical devices  Hospitality sol

  9. Slide 9: Strategic Investment - South Pacific Laundry

    Strategic Investment - South Pacific Laundry 27.34% stake in SPL Holdings (Australia) Pty Ltd, a laundry provider servicing the hospitality industry (hotels, resorts, hospitals, care centres, and restaurants) in Melbourne, Sydney, Brisbane, Canberra and other Australian cities/towns Cutting-edge tec

  10. Slide 10: Strategic Investment - Tong Chiang Group

    Strategic Investment - Tong Chiang Group 21% stake in food manufacturer and caterer Tong Chiang Group (“TCG”); increased investment of US$1.5 million. TCG comprises 13 wholly-owned subsidiaries and three separate property investment holding entities, operating in five factories and three warehouse u

  11. Slide 11: Corporate Highlights

    Corporate Highlights © 2012 PRIVATE & CONFIDENTIAL 11 © 2011 A.S. LOUKEN BRANDING PTE LTD. PRIVATE & CONFIDENTIAL | 11

  12. Slide 12: Corporate Highlights

    Corporate Highlights CORPORATE DEVELOPMENTS December 2016  Emerged from SGX-ST Watch-List  Placed on Watch-List on 3 March 2016 pursuant to Rule 1311 of SGX-ST Listing Manual  Removed from Watch-List pursuant to Minimum Trading Price (MTP) exit criteria under Listing Rule 1314(2) with effect from

  13. Slide 13: Corporate Highlights

    Corporate Highlights CONSUMER PRODUCTS DISTRIBUTION April 2017 Strategies : Rationalise Operations & Explore New Profitable Investments  Entered into a conditional sale and purchase agreement (“SPA”) to acquire 70%, of the issued and paid-up capital of Print IQ Singapore Pte. Ltd. (“Print IQ”)  Di

  14. Slide 14: Corporate Highlights

    Corporate Highlights OTHER BUSINESSES February 2017 Strategies : Diversify Risk and Generate Recurring Income  Increased investment of US$1.5 million in 21%-owned associated company, Tong Chiang Group Pte. Ltd. (“TCG”), which is engaged in manufacturing food products and food catering in Singapore

  15. Slide 15: Financial Results

    Financial Results 1Q’2017 / FY2016 15 15

  16. Slide 16: Snapshot of 1Q2017 & FY2016 Performance

    SNAPSHOT OF 1Q2017 & FY2016 PERFORMANCE Change Change US$’000 1Q2017 1Q2016 FY2016 FY2015 (%) (%) Sales 332,937 332,796 0.04 1,402,583 1,221,562 15 Gross Profit 23,959 22,357 7 97,393 91,486 6 Gross Profit Margin (%) 7.2 6.7 0.5 pt 6.9 7.5 (0.6) pt Net Profit/(Loss) After Tax 2,708 (6,559) N.M. 4,55

  17. Slide 17: 1Q2017 Highlights

    1Q2017 HIGHLIGHTS • Revenue of US$332.9M compared to US$332.8M in 1Q2016:  Revenue from electronic components distribution business increased 20% to US$315.0M, driven mainly by operations in Hong Kong, China and South Asia Pacific  Revenue from consumer products distribution business down 75% to U

  18. Slide 18: FY2016 Highlights

    FY2016 HIGHLIGHTS • Revenue of US$1.4B, a 15% increase compared to FY2015:  Electronic components distribution business rose 15% to US$1.23B on higher contributions from operations in Hong Kong and China  Consumer products distribution business improved 12% to US$173.3M on contributions from newly

  19. Slide 19: Revenue Growth Trend

    REVENUE GROWTH TREND – SERIAL SYSTEM GROUP Revenue (US#039; million) 1,600.0 1,403 1,400.0 1,222 1,200.0 15% 1,036 1,000.0 18% 817.1 800.0 27% 658.1 616.4 600.0 545.0 24% 7% 400.0 353.6 381.9 13% 332.8 378.6 346.3 344.9 332.9 315.3 227.7 43% 185.6 184.5 182.9 200.0 8% 92.0 0.04% 43.7 12% - 19 19

  20. Slide 20: Outperforming the Industry

    OUTPERFORMING THE INDUSTRY Asia Pacific (including Japan) Semiconductor Revenue (US#039; billion) Serial System Revenue (US#039; million) 250 1,600 241 1,403 240 1,400 232 1,222 229 1,200 230 1,036 1,000 15% 4% 817 220 18% 209 1% 800 658 207 616 210 205 205 27% 545 9% 600 24% 200 2% 400 7% -0.9% 190 200 1

  21. Slide 21: Revenue - Hong Kong & China

    Revenue Hong Kong & China Revenue (US#039; million) 900.0 853.4 800.0 700.0 663.0 661.8 29% 600.0 0.2% 500.0 461.4 43% 400.0 370.2 344.1 322.3 25% 300.0 242.4 219.0 8% 217.8 224.8 214.2 196.3 180.8 168.4 200.0 115.9 81.0 100.0 57.0 27% 31.8 3.4 14.4 - FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 F

  22. Slide 22: Profitability - Gross Profit & Margin

    PROFITABILITY Gross Profit & Gross Profit Margin (US#039; million) 10.0% 9.3% 9.5% 120.0 9.3% 9.0% 8.7% 9.0% 8.7% 7.5% 97.4 100.0 8.0% 7.4% 7.2% 6.9% 7.1% 6.7% 6.6% 7.0% 90.4 91.5 80.0 6.0% 6% 73.5 1% 5.0% 60.0 62.6 57.5 23% 4.0% 50.7 17% 40.0 3.0% 33.4 2.0% 24.9 25.6 24.0 20.0 22.4 24.5 1.0% 7% 0.0% -

  23. Slide 23: Profitability - EBITDA

    PROFITABILITY EBITDA (US#039; million) 35.0 30.8 30.0 26.0 25.0 23.5 22.0 20.2 19.9 -16% 20.0 18.9 -9% 40% 15.0 16% 10.0 8.8 8.6 8.9 7.9 6.3 5.0 444% - FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 1Q16 2Q16 3Q16 4Q16 1Q17 (1.8) (5.0) 23 23

  24. Slide 24: Profitability - Net Profit & Margin

    PROFITABILITY Net Profit & Net Profit Margin 18.0 2.2% (US#039; million) 2.5% 1.6% 16.0 16.1 2.0% 1.6% 14.0 1.3% 1.4% 1.1% 1.2% 1.5% 12.0 0.9% 1.2% 0.8% 12.0 0.9% 10.0 11.2 11.0 1.0% 10.1 8.0 0.3% 44% 0.5% 7.9 6.0 -31% 3.8 4.0 0.0% 4.0 5.1 3.3 41% 4.6 2.0 -0.5% -59% 2.7 - -1.0% FY09 FY10 FY11 FY12 FY13

  25. Slide 25: Financial Position - Current Ratio

    FINANCIAL POSITION Maintaining Healthy Current Ratio 450.0 430.6 438.1 1.6 1.5 1.4 1.4 400.0 382.6 1.4 1.3 372.0 375.6 347.8 1.2 350.0 1.2 1.2 1.2 324.1 1.2 295.6 300.0 277.0 1.0 250.0 218.3 211.5 218.7 0.8 200.0 173.8 147.5 147.0 0.6 150.0 120.7 0.4 100.0 50.0 0.2 - - FY10 FY11 FY12 FY13 FY14 FY15

  26. Slide 26: Financial Position - Net Gearing Ratio

    FINANCIAL POSITION Net Gearing Ratio 140% 160.0 116% 144.6 120% 138.0 139.3 140.0 132.4 124.8 122.2 120.2 112% 100% 120.0 119.4 109% 110.0 104.5 98.7 97.9 98% 100.0 72% 80% 86.5 89% 80.0 71.2 54% 60% 60.0 43% 56.3 40% 40.0 37.6 20% 20.0 - 0% FY10 FY11 FY12 FY13 FY14 FY15 FY16 1Q17 Shareholders' Equi

  27. Slide 27: Financial Position - Cash Conversion Cycle

    FINANCIAL POSITION Cash Conversion Cycle (days) 75 70 69 70 67 65 62 66 60 60 61 60 58 55 55 53 56 51 51 56 49 50 45 44 41 44 40 36 39 33 40 35 38 38 32 31 30 33 33 33 32 30 25 FY10 FY11 FY12 FY13 FY14 FY15 FY16 1Q17 Trade Receivable Turnover (days) Trade Payable Turnover (days) Inventory Turnover (

  28. Slide 28: Dividend Yield

    DIVIDEND YIELD Total Dividend Payout (In Cent (SGD)) (Interim & Final) each year 0.18 0.17 2.4% FY16 0.35 0.50 6.3% FY15 0.30 0.75 8.0% FY14 0.24 0.25 0.30 6.3% FY13 0.22 0.30 5.0% FY12 0.30 0.16 0.33 7.9% FY11 0.28 0.67 6.1% FY10 0.38 Singapore 0.13 8.5% FY09 Cents Interim Special Final 0.33 0.25 8

  29. Slide 29: Outlook & Strategies

    Outlook & Strategies 29 29

  30. Slide 30: Industry Outlook

    Industry Outlook The semiconductor industry is expected to fare better in 2017, driven by higher selling prices of flash memory for products such as servers, solid-state drives and premium smartphones. The Group stands to benefit from its close ties with chip suppliers and electronics manufacturers.

  31. Slide 31: Group Outlook

    Group Outlook • Explore organic/inorganic opportunities to expand electronic components business through investments in higher-value business segments such as, security and surveillance, automotive and mobile devices and enterprise cloud solutions • Continue to further rationalise consumer products

  32. Slide 32: Our Three-Pronged Strategy

    Our Three-Pronged Strategy Objectives: - Increase revenue - Deepen value proposition - Drive greater internal efficiencies to improve margins Deepen penetration in Expand product Improve internal existing markets & portfolio & increase efficiencies to achieve widen geographical higher-value greater

  33. Slide 33: 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

  34. Slide 34: Thank You

    Thank You Media and Investor Contact Information: WeR1 Consultants Pte Ltd 3 Phillip Street #12-01 Royal Group Building Singapore 048693 Tel: (65) 6737 4844 | Fax: (65) 6737 4944 Frankie Ho, frankieho@wer1.net Grace Yew, graceyew@wer1.net 34 34

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