Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Broadway Industrial Group — FY2021 Earnings Presentation
29 slides from Singapore Exchange's earnings presentation, Feb 17, 2022
Slide 1: Broadway Industrial Group Limited FY2021 Results Presentation
Broadway Industrial Group Limited FY2021 Results Presentation 17 February 2022 BIGL Confidential @ 2022 1
Slide 2: Contents
Contents Business Overview Tan Choon Hoong Chief Executive Officer FY2021 Performance Review Tiong Chi Sieng Chief Financial Officer Outlook & Investment Highlights Lew Syn Pau Chairman Q&A Disclaimer: This presentation may contain forward-looking statements. The actual future performance and result
Slide 3: Business Overview
3 Business Overview Corporate Profile HDD Business Unit Robotics Business Unit BIGL Confidential @ 2022 3
Slide 4: Corporate Profile
4 Corporate Profile Two Key Business Segments HDD Business – Our core business One of the leaders in the manufacture of precision components and assemblies Key provider of actuator arms, assemblies and other related parts mainly for the global hard disk drive (“HDD”) industry Headquartered in Singap
Slide 5: HDD Business Unit
5 HDD Business Unit BIGL Confidential @ 2022 5
Slide 6: Core Products
Core Products Actuator Arm Actuator Arm Actuator Arm Pivot-bearing Hard Disk Drive Machining Coil Assembly Flex-circuit Assembly BIGL Confidential @ 2022 6
Slide 7: HDD Demand Supported by Positive Trends
HDD Demand Supported by Positive Trends Increasing demand Worldwide HDD industry exabytes On-premises datacentre projects and business reopening shipments expected to see a CAGR trends to drive higher HDD exabytes demand from OEM of 23.3% over the 2022–2026 storage customersa forecast period HDD dem
Slide 8: HDD Market Long Term Forecast
HDD Market Long Term Forecast Actuals Long-Term Forecast By units 2021 2022 2023 2024 2025 2026 CAGR Total Computing/CE 171.87 149.74 133.85 116.87 106.14 99.12 -10.4% The expected decline in % -8.5% -12.9% -10.6% -12.7% -9.2% -6.6% HDD volume is sustainable Total Enterprise 87.11 91.76 99.62 104.83
Slide 9: Strong Growth Expected from Key Customer
Strong Growth Expected from Key Customer Key Customer BIGL Strong growth in CQ4’21; expects revenue growth BIGL’s key customer of 12% to 14% for its fiscal 20221 Our key customer’s strong performance expected to impact Projected solid cloud demand for nearline to continue BIGL positively as it contr
Slide 10: Proven Strategy Yields Results
Proven Strategy Yields Results Management Operational Restructuring Improvements • Eliminated redundancy • Labour cost reduction • Injected new management • Scrap cost reduction • Optimised competency • Quality improvement • Introduced new corporate • Early engagement on new values programmes TURN-
Slide 11: Robotics Business Unit
Robotics Business Unit BIGL Confidential @ 2022 11
Slide 12: Expansion of Product Line
Expansion of Product Line Leveraging BIGL’s supply chain and Started manufacturing competencies to Applied big data technology in with one enhance robot design and robot service processes and façade efficiencies for the cleaning service using artificial intelligence (AI) cleaning industry, encompass
Slide 13: Roadmap to Commercialisation & Sales
Roadmap to Commercialisation & Sales Acquired 55% Commercialised equity stake in façade cleaning BAB in January robot in China in 2020 1H2021 January 2020 1 2 Continued to Ongoing Partnered with increase market improvements and manufacturer awareness and enhancements to for assembly of presence in C
Slide 14: Next Steps
Next Steps Collaboration with institute of higher learning Product improvements Working with institute of higher learning on the Modularised RAS (Roof Access System) in improvement to meet the local regulation progress to be more versatile for various type of and requirements to commercialise façade
Slide 15: Market Potential
Market Potential Façade Cleaning Robots Service Robots • Global facade market size expected to grow • Disinfection Robots Market is expected to grow at a at a CAGR of 6.4% from 2021 to 20281 CAGR of 30.1% from 2021 to 2028 to reach $2.79 billion by 20282 • COVID-19 pandemic acted as a growth catalys
Slide 16: FY2021 Performance Review
16 FY2021 Performance Review BIGL Confidential @ 2022 16
Slide 17: 2H2021 Financial Highlights
2H2021 Financial Highlights 24.1% 1.2% S$260.1M S$7.4M 2.9% REVENUE NPAT* NPAT S$260.0M S$11.7M MARGIN 4.5% HDD HDD HDD NPAT REVENUE NPAT* MARGIN 1.2% 1.59C 1.00C EPS FINAL DIVIDEND** * NPAT is net profit after tax and minority interest. ** Final ordinary dividend of 0.5 Singapore cents per share an
Slide 18: 2H2021 Performance Review
2H2021 Performance Review Robust HDD demand lifted 2H2021 revenue 24% y-o-y, 70bps improvement in gross margin benefited from factory capacity utilisation as a result of strong shipment volume. HDD GROUP S$'MIL 2H'21 2H'20 Better / (Worse) 2H'21 2H'20 Better / (Worse) Revenue 260.0 209.5 24.1% ▲ 260
Slide 19: FY2021 Financial Highlights
FY2021 Financial Highlights 17.7% 8.2% S$471.4M S$15.3M 3.2% REVENUE NPAT* NPAT S$471.3M S$20.7M MARGIN 4.4% HDD HDD HDD NPAT REVENUE NPAT* MARGIN 8.6% 3.27C 1.50C S$27.7M 18.9% EPS TOTAL CASH ON ROE DIVIDEND HAND * NPAT is net profit after tax and minority interest BIGL Confidential @ 2022 19
Slide 20: FY2021 Performance Review
FY2021 Performance Review Strong y-o-y revenue and profit growth, benefitting from strong operational execution despite challenging operating environment. Better / Better / S$'MIL 1H'21 1H'20 2H'21 2H'20 FY21 FY20 Better / (Worse) (Worse) (Worse) Revenue 211.4 191.1 10.6% 260.1 209.5 24.1% 471.4 400
Slide 21: Strong Growth Trajectory
Strong Growth Trajectory Revenue Gross Profit (S$’m) & Net Profit (S$’m) & (S$’m) Gross Profit Margin (%) Net Profit Margin (%) 40 10.0 7.4% 9.0 6.9% 8.0 20 0.5% 3.5% 3.2% 471.4 35 5.3% 7.0 0 6.0 -7.0% 34.7 5.0 15 3.4% 15.3 30 4.0 400.7 3.0 14.1 -10 386.9 2.0 10 25 27.7 1.0 0.0 -20 -1.0 5 306.6 20 -
Slide 22: Balance Sheet
Balance Sheet Balance sheet strength continued to improve in 2021, building from the strong HDD operational performance and prudent fiscal management. Dec-20 S$'MIL Jun-19 Dec-19 Jun-20 Jun-21 Dec-21 Reclassified Non-current Assets 76.4 97.8 97.4 86.0 82.2 76.7 Current Assets 97.3 95.8 92.7 115.8 13
Slide 23: Key Financial Ratios
Key Financial Ratios Balance sheet strength continued to improve in 2021, building from the strong HDD operational performance and prudent fiscal management. S$'MIL (where applicable) Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Working Capital Ratio (Current Assets / Current Liabilities) 1.02 0.79 0.8
Slide 24: Outlook & Investment Highlights
24 Outlook & Investment Highlights BIGL Confidential @ 2022 24
Slide 25: New Dividend Policy
New Dividend Policy* • BIGL will be implementing a dividend policy to distribute approximately 30.0% of the Group’s net attributable profit annually from the current financial year ending 31 December 2022 onwards. * Subject to the Group’s operating results, financial conditions such as cash position
Slide 26: Outlook
Outlook HDD Business • Operating environment remains challenging and uncertain, COVID-19 continues to impact HDD supply chain in Asia • HDD Demand remains resilient in the seasonally slower first half of the year • Cost inflation and higher inventory holding to mitigate supply chain disruption remai
Slide 27: Healthy Position Among Peers
Healthy Position Among Peers* Market Cap Price (S$) Net profit ROE Debt / P/E Div yield (S$’ m) margin (%) (%) Equity (times) (%) (times) BIGL 92.00 0.200 3.73 21.50 0.02 5.21 2.55 Frencken Group 755.83 1.770 7.84 15.74 0.29 13.70 1.70 Limited UMS Holdings Limited 846.82 1.270 21.34 17.21 0.14 17.40
Slide 28: Key Investment Highlights
28 Key Investment Highlights HDD Business • Positioned to take advantage of the growing high value, high performance enterprise segment of HDDs • 4-pronged turnaround strategy continues to yield results o Management restructuring; operational improvements; improved factory footprint; and supply chai
Slide 29: Thank You
Thank You BIGL Confidential @ 2022 29
Broadway Industrial Group — FY2021 Earnings Presentation on 6ix