Slide 1: 2024 Interim Results Presentation
Stock Code: 1286 2024 INTERIM RESULTS PRESENTATION August 8, 2024
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 six months ended June 30, 2024. This presentation is intended to provide updated information on the Group for t
Slide 3: 1H/2024 Results Summary
1H/2024 Results Summary Flattish Group Revenue, Mixed End- Gross Profit Margin Improved & Profit Markets Performance attributable to Shareholders Increased • 1H/2024 Group revenue remained flat at HK$2,402.5M • Group GPM up 0.4% to 26.4%, with IC up 2.5% to 34.2%; SC up 6.2% to • Aerospace, energy &
Slide 4: Revenue by End Markets
Revenue by End Markets 1H/2023 1H/2024 1H/2023 1H/2024 Inc/(Dec) By End Markets HK$ mil HK$ mil HK$ mil Change Diversified Industrials 1,184.1 1,138.2 (45.9) -3.9% Automotive 900.9 866.3 (34.6) -3.8% Aerospace, Energy & Medical 319.8 398.0 78.2 24.5% Total 2,404.8 2,402.5 (2.3) -0.1% 4
Slide 5: Revenue by End Markets
Revenue by End Markets 1H/2023 1H/2024 Inc/(Dec) By End Market HK$ mil HK$ mil HK$ mil Change Diversified Industrials 1,184.1 1,138.2 (45.9) -3.9% - High Horsepower Engine 251.8 359.8 108.0 42.9% - Construction Equipment 402.2 334.1 (68.1) -16.9% - Agricultural Equipment 206.0 177.2 (28.8) -14.0% -
Slide 6: Revenue by Business
Revenue by Business 1H/2023 1H/2024 1H/2023 1H/2024 Inc/(Dec) By Business HK$ mil HK$ mil HK$ mil Change Investment Casting 994.9 957.0 (37.9) -3.8% Precision Machining & Others 948.7 904.8 (43.9) -4.6% Sand Casting 433.8 511.7 77.9 18.0% Surface Treatment 27.4 29.0 1.6 5.8% Total 2,404.8 2,402.5 (2
Slide 7: Revenue by Geographical
Revenue by Geographical 1H/2023 1H/2024 1H/2023 1H/2024 Inc/(Dec) By Geographical HK$ mil HK$ mil HK$ mil Change Americas 1,140.5 1,204.0 63.5 5.6% - United States 1,023.3 1,090.1 66.8 6.5% - Others 117.2 113.9 (3.3) -2.8% Europe 790.1 739.9 (50.2) -6.4% Asia 474.2 458.6 (15.6) -3.3% - PRC 405.6 393
Slide 8: 1H/2024 Financial Review
1H/2024 Financial Review
Slide 9: 1H/2024 Financial Review
1H/2024 Financial Review 1H/2023 1H/2024 Financial Highlights HK$ mil HK$ mil Change Revenue 2,404.8 2,402.5 -0.1% Gross profit 624.1 634.5 1.7% Gross profit margin 26.0% 26.4% 0.4% Other revenue 14.8 13.5 -8.8% Other net income 25.7 44.8 74.3% Selling and distribution expenses (83.9) (87.0) 3.7% Ad
Slide 10: Gross Profit
Gross Profit HK#039;mil 1,100.0 30.0% 26.0% 26.4% 25.0% 800.0 0.3 1.1% 20.0% 624.1 634.5 91.0 21.0% 139.2 27.2% 500.0 15.0% 217.2 22.9% 168.6 18.6% 10.0% 200.0 34.2% 315.6 31.7% 327.6 5.0% (0.9) -3.1% (100.0) 1H/2023 1H/2024 0.0% Investment Casting Precision Machining and Others Sand Casting Surface Tr
Slide 11: Cost of Sales Analysis
Cost of Sales Analysis HK#039;mil 2,400.0 1,780.7 -0.7% 1,768.0 1,800.0 16.4% 17.0% 294.0 300.6 6.3% 6.4% 111.7 112.5 158.0 8.9% 165.1 9.3% 1,200.0 433.7 24.4% 483.0 27.3% 600.0 783.3 44.0% 706.8 40.0% - 1H/2023 1H/2024 Cost of materials (raw materials & Staff Costs Depreciation Fuel Expenses and Utili
Slide 12: Operating Expenses Analysis
Operating Expenses Analysis HK$ mil Selling and Distribution Expenses HK$ mil Administrative and Other Operating Expenses 150.0 300.0 9.0% 8.0% 7.2% 4.0% 3.6% 6.5% 7.0% 3.5% 100.0 200.0 6.0% 83.9 87.0 173.6 156.1 5.0% 4.0% 2.0% 50.0 100.0 3.0% 2.0% 1.0% - 0.0% - 0.0% 1H/2023 1H/2024 1H/2023 1H/2024
Slide 13: Key Working Capital Ratios
Key Working Capital Ratios Inventory Turnover Days (Average) Trade and Bills Receivable Turnover Days (Average) Days HK$ mil Days HK$ mil 1,800 135 150 1,800 105 123 1,600 88 88 87 90 1,500 109 120 1,400 1,152.1 1,190.6 75 1,200 1,200 1,091.2 1,081.4 961.2 961.0 90 60 1,000 900 800 45 60 600 600 30
Slide 14: Capital Expenditure
Capital Expenditure HK$ mil 12.3% 10.1% 1,054.1 8.5% 5.7% 713.0 599.7 Actual Capex Forecast Capex Capex (ex Mexico) as % of Revenue Group (ex Mexico) Mexico 14
Slide 15: Key Financial Ratios
Key Financial Ratios 20.0% Adjusted Return on Shareholders' Equity 50.0% Net Gearing Ratio 14.9% 40.0% 39.2% 15.0% 34.6% 33.2% 11.5% 11.4% 30.0% 10.0% 20.0% 5.0% 10.0% 0.0% 0.0% FY2022 FY2023 1H/2024 FY2022 FY2023 1H/2024 X X 2.0 Net Debt / L12M Adj. EBITDA 20.0 Adjusted Interest Coverage 1.5 1.4 1.
Slide 16: Business Outlook
Business Outlook
Slide 17: 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 July 22, 2024) (Photo taken on Mar 1, 2024) ⚫ Mexico SLP Campus Precision Machining (PM), Sand Casting (SC) and Investment Casting (IC) plants are cur
Slide 18: Business Outlook
Business Outlook ⚫ Global economy remains exposed to a number of uncertainties: high inflation, potential geopolitical conflicts and multilateral tensions that would dampen near term revenue growth rate ⚫ The Group’s “Global Footprint” and “Diversified End-markets” strategies will continue to divers
Slide 19: Q&A Session
Q&A Session
Slide 20: Appendices – Financials Summary
Appendices – Financials Summary
Slide 21: Reconciliation of Adjusted Profit Attributable to Shareholders and Adjusted EBITDA
Appendix 1 - Reconciliation of Adjusted Profit Attributable to Shareholders and Adjusted EBITDA 1H/2023 1H/2024 HK$ mil HK$ mil Change Reconciliation to Adj. Profit Attr. to Shareholders Profit after tax 303.5 305.5 Adjustments (net of tax): - Insurance claims received for Nantong fire incident (10.
Slide 22: Consolidated Statement of Profit or Loss
Appendix 2 – Consolidated Statement of Profit or Loss 1H/2023 1H/2024 HK$ mil HK$ mil Revenue 2,404.8 2,402.5 Cost of sales (1,780.7) (1,768.0) Gross Profit 624.1 634.5 Other revenue 14.8 13.5 Other net income 25.7 44.8 Selling and distribution expenses (83.9) (87.0) Administrative and other operati
Slide 23: Consolidated Statement of Financial Position
Appendix 3 – Consolidated Statement of Financial Position 12/31/2023 6/30/2024 HK$ mil HK$ mil Non-current assets Property, plant and equipment 4,535.5 4,465.4 Prepayments for Property, plant and equipment 52.4 77.8 Intangible assets 214.8 198.2 Goodwill 227.5 225.9 Deferred expenses 161.1 160.2 Oth
Slide 24: Consolidated Statement of Financial Position
Appendix 3 – Consolidated Statement of Financial Position 12/31/2023 6/30/2024 HK$ mil HK$ mil Current liabilities Bank loans 1,028.6 878.0 Lease liabilities 7.7 3.7 Trade payables 519.5 517.4 Other payables and accruals 308.9 378.8 Taxation payable 59.6 22.9 1,924.3 1,800.8 Net current assets 1,062
Slide 25: Consolidated Statement of Financial Position
Appendix 3 – Consolidated Statement of Financial Position 12/31/2023 6/30/2024 HK$ mil HK$ mil Capital and reserves Share capital 188.7 188.7 Reserves 4,691.9 4,631.8 Total equity attributable to equity shareholders of the Company 4,880.6 4,820.5 Non-controlling interest 20.3 21.0 TOTAL EQUITY 4,900
Slide 26: Condensed Consolidated Cash Flow Statement
Appendix 4 – Condensed Consolidated Cash Flow Statement 1H/2023 1H/2024 HK$ mil HK$ mil Operating activities Cash generated from operations 718.7 560.0 Tax paid (41.2) (62.1) Net cash generated from operating activities 677.5 497.9 Investing activities Payment of property, plant and equipment (373.8
Slide 27: Condensed Consolidated Cash Flow Statement
Appendix 4 – Condensed Consolidated Cash Flow Statement 1H/2023 1H/2024 HK$ mil HK$ mil Financing activities Proceeds from bank loans 673.4 796.3 Repayment of bank loans (607.2) (915.9) Interest paid (56.8) (59.3) Lease rentals paid (7.2) (3.7) Dividends paid (150.8) (151.0) Proceeds from exercise o
Slide 28: Thank You
impro Reliable - Flexible - Global THANK YOU