Sarine Technologies Ltd · SGX:U77
Sarine Technologies — Investor Presentation (November 2015)
30 slides from Sarine Technologies's investor presentation, November 2015
Slide 1: Sarine Technologies Ltd. Corporate Presentation November 2015
Sarine Technologies Ltd. Corporate Presentation November 2015 1
Slide 2: Disclaimer
Disclaimer This presentation may contain statements regarding the business of Sarine Technologies Ltd and its subsidiaries (the “Group”) that are of a forward looking nature and are therefore based on management’s assumptions about future developments. Such forward looking statements are typically i
Slide 3: Agenda
Agenda Company Overview Products Update Results Update Appendix - Industry Overview and Sarine’s Competitive Positioning 3
Slide 4: Company Overview
Company Overview 4
Slide 5: Sarine Technologies
Sarine Technologies Sarine Technologies, through its proprietary systems and technologies, is a global leader in the development and provider of solutions for the entire diamond value chain, from rough diamonds evaluation, planning, manufacturing and finishing to polished diamonds assessment, gradin
Slide 6: Inclusion Mapping Technologies
Inclusion Mapping Technologies Before GalaxyTM Technology Suppliers Disadvantages Needs windows opened in stone Done by expert personnel Manual Inclusion Sarine and others Limited success on complicated inclusions Charting Limited to larger inclusion sizes Very long (hours/days per stone)
Slide 7: 5-Year Results Summary (2010 – 2014)
5-Year Results Summary (2010 – 2014) (US$’000) 2010 2011 2012 2013 2014 Revenues 45,663 57,803 63,750 76,369 87,770 Gross Profit 29,350 38,281 43,388 54,583 61,903 Net Profit 11,111 17,366 20,755 23,888 27,230 Gross Profit Margin 64.3% 66.2% 68.1% 71.5% 70.5% Net Profit Margin 24.3% 30.0% 32.6% 31.3
Slide 8: Proven Track Record of Product Innovation
Proven Track Record of Product Innovation 2008 & Prior 2009 thru 2012 2013 thru 2015 DiaMensionTM GalaxyTM GalaxyTM XL DiaExpertTM GalaxyTM Ultra & DiaExpertTM & SolarisTM Atom MeteorTM DiaMensionTM DiaExpert TM DiaMensionTM Sarine ProfileTM DiaMarkTM HD Nano 6.5 Axiom DiaSca
Slide 9: Products Update
Products Update 9
Slide 10: DiaMension Axiom / Instructor
DiaMensionTM Axiom / InstructorTM DiaMensionTM Axiom Quantum leap in proportion measurement and symmetry grading of polished diamonds Adopted by industry leaders (e.g., Tiffany) and by leading gemological labs (e.g., GSI) New Cut and Symmetry grading standards a new business opportunity Th
Slide 11: Galaxy Family Rollout
GalaxyTM Family Rollout Optimal Planning with No real competition for Group’s inclusion GalaxyTM Inclusion Mapping mapping systems in the market. Note unique StrategistTM & QuazerTM III pie-cut sawing Total installed base of GalaxyTM family of products just over 200 as at 30 September 2015 Met
Slide 12: Sarine Profile
Sarine ProfileTM Imaging technologies are gaining traction as an essential marketing tool in the polished diamond trade Instead of a dry tabular non-intuitive report, Sarine ProfileTM utilises all the benefits of Sarine’s diverse cutting-edge technologies to “show and tell” the stone with graphi
Slide 13: Sarine Light
Sarine LightTM Perfect Stone With increasing demand for quality and branded diamonds, light High Clarity, Colour and Cut performance parameters - brilliance, fire, scintillation/sparkle and grades symmetry, are becoming key consumer-oriented criteria 2013: Sarine LightTM light performance gradin
Slide 14: Sarine Loupe
Sarine LoupeTM A unique imaging and inspection system that captures a polished diamond, including its internal features, in simulated three dimensions Enables buyers to view the polished stone from a multitude of angles and at varying magnifications without having it in hand; with new derivative
Slide 15: Allegro
AllegroTM The AllegroTM system processes gemstones (excluding diamonds) and transforms the rough stone directly into a cut and shaped (unfinished) gem with high speed and accuracy New product addresses new market with proven Sarine technologies; market for gemstones independent of and larger in
Slide 16: Going Forward
Going Forward Given the immediate tangible benefits of Sarine’s unique technology and the ongoing lack of competition, the Group is confident of extending the market penetration of the GalaxyTM family of inclusion mapping systems Inclusion mapping systems market penetration enhances demand for S
Slide 17: Growth Drivers for Recurring Revenue
Growth Drivers for Recurring Revenue Important Catalysts to Future Growth Deliveries of additional GalaxyTM family systems for rough diamond inclusion scanning and mapping to customers Increased adoption and roll-out of new products and services based on digital trade visualisation solutions - S
Slide 18: Results Update
Results Update 18
Slide 19: Results Highlights
Results Highlights 9M 2015 Group revenue and profitability declined to US$36.1m and US$1.2m, respectively, as business conditions remained challenging: o Disproportionate rough to polished diamond prices o High polished inventories resulting in significantly reduced quantities of new rough diamond
Slide 20: 9M 2015 Results Summary
9M 2015 Results Summary 9M 2015 9M 2014 69.5 70 60 49.7 50 (US$ m) 40 36.1 30 27.8 28.0 24.4 23.3 20 10 3.5 3.3 2.1 (1.2) (4.6) 0 -10 Revenue Gross Profit Operating Profit Pre-tax Profit Tax Net Profit % (48%) (51%) (88%) (88%) (74%) (91%) change 20
Slide 21: Q3 2015 Results Summary
Q3 2015 Results Summary Q3 2015 Q3 2014 25 20.4 20 15 14.2 (US$ m) 9.5 10 6.8 6.8 6.0 5.7 5 0 (0.7) (0.9) (0.5) (1.1) (1.4) -5 Revenue Gross Profit Operating Profit Pre-tax Profit Tax Net Profit % (53%) (58%) NM NM (53%) NM change 21
Slide 22: Revenue Breakdown by Geography
Revenue Breakdown by Geography Region 9M 2015 9M 2014 % Chg % Share (US$’ 000) (US$’ 000) (9M 2015) India 25,399 56,088 (55%) 70% Africa 1,675 2,872 (42%) 5% Europe 1,882 1,340 + 40% 5% N. America 1,110 1,007 + 10% 3% Israel 2,401 3,966 (40%) 7% Other 3,589 4,177 (14%) 10% Total 36,056 69,450 (48%)
Slide 23: Strong Balance Sheet (debt free)
Strong Balance Sheet (debt free) (US$ millions) 30 Sep 2015 31 Dec 2014 Non-Current Assets 23.4 20.5 - Property, plant & equipment 12.0 11.5 - Intangible assets 8.2 6.8 Current Assets 56.6 71.6 - Inventories 10.9 10.1 - Trade receivables 10.5 13.5 - Cash & bank deposits 31.8* 45.5 Non-current Liabil
Slide 24: Dividend
Dividend US cent/share 2015 2014 2013 2012 Interim 1.50 2.00 1.50 1.25 Special interim - 1.00 2.50 2.00 Final - 2.00 2.00 1.25 Total - 5.00 6.00 4.50 24
Slide 25: Appendix: Industry Overview and Sarine's Competitive Positioning
Appendix Industry Overview and Sarine’s Competitive Positioning 25
Slide 26: Diamond Industry Value Chain
Diamond Industry Value Chain De Beers concentrates ~ 40% of rough diamonds Miners worldwide; Russia; Botswana; Australia; Canada; Zimbabwe; others India accounts for ~ 90% of all stones; Manufacturers Southern Africa (S. Africa, Botswana and Namibia) and China other manufacturing centres Gemmologica
Slide 27: Diamond Industry Value Chain
Diamond Industry Value Chain Our products increase profits at all stages of the diamond trade from purchase of rough stones to sale of polished diamonds Value of Market in US$ in 2014 $16.5 $16.7 $22.3 $78.5 billion billion billion billion Rough Rough Polished Retail Sales Diamond Diamond Diamond of
Slide 28: Sarine's Value Proposition
Sarine’s Value Proposition Challenges • Increase industry players’ sustainable profitability • Satisfy consumer concerns on issues of quality and beauty Sarine’s Solutions • Maximise polished value yield from rough diamonds, while reducing risk and cutting costs • Grade quality and beauty of polishe
Slide 29: Competitors
Competitors Diamond Planning & Laser Sawing & Grading Products Cutting Products OctoNus (Russia) Synova (Switzerland) High-end rough planning and polished evaluation equipment- High-end, fast, safe green lasers; extremely expensive ($600K - offers services and trying to gain traction, without succes
Slide 30: Thank You Q&A
Thank You Q&A 30
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