Slide 1: Serial System Ltd 1H2021 Results Presentation
SERIAL SYSTEM LTD 1H2021 RESULTS PRESENTATION Friday, 13 August 2021
Slide 2: Agenda
FINANCIAL AGENDA RESULTS By moving forward and thinking forward, Serial System helps its OUTLOOK partners to be more competitive in the marketplace, today and in CORPORATE the future OVERVIEW
Slide 3: Financial Results
FINANCIAL | RESULTS | j
Slide 4: Snapshot Of 1H2021 Performance
Snapshot Of 1H2021 Performance US$’000 1H2021 1H2020 Change (%) Sales 438,288 314,287 39 Gross Profit 34,931 19,280 81 Gross Profit Margin (%) 8.0 6.1 1.9 ppt Net Profit/(Loss) After Tax 5,837 (4,483) NM (Attributable to equity holders of the Company) EPS/(LPS) - fully diluted (US cents)(1) 0.65 (0.
Slide 5: 1H2021 Highlights
1H2021 Highlights Revenue of US$438.3M in 1H2021, lifted by recovery in all business segments Revenue increased 39% y-o-y from US$314.3 million in 1H2020, when the initial outbreak of COVID-19 impacted demand for electronic components and disrupted manufacturing activity in Asia, especially Chin
Slide 6: Revenue Growth Trend
Revenue Growth Trend SERIAL SYSTEM GROUP Revenue (US#039; million) 1,600 1,527 1,492 1,403 1,400 2% 1,222 6% 1,200 1,036 15% 1,000 18% 817 792 800 27% 731 658 -48% 616 24% 600 545 -8% 7% 438.3 354 382 400 315 13% 314.3 228 186 184 183 43% 200 92 39% 44 8% - 6
Slide 7: Profitability: Gross Profit & Margin
Profitability Gross Profit & Gross Profit Margin (US#039; million) 10.0% 9.3% 9.5% 140.0 9.3% 9.0% 8.7% 8.7% 9.0% 7.8% 8.0% 120.0 118.6 8.0% 7.5% 6.9% 7.0% 105.1 6.8% 7.0% 97.4 100.0 6.3% 13% 6.1% 91.5 90.4 8% 6.0% 80.0 6% 5.0% 73.5 1% 23% 60.0 4.0% 62.6 57.5 54.2 17% 50.7 3.0% -54% 45.9 40.0 9% 13% -1
Slide 8: Profitability: Net Profit & Margin
Profitability Net Profit & Net Profit Margin (US#039; million) 20.0 2.2% 2.5% 18.0 17.7 2.0% 16.0 1.6% 1.6% 85% 1.3% 1.4% 14.0 1.2% 1.2% 1.5% 1.3% 16.1 0.9% 12.0 12.0 0.6% 1.0% 1.0% 10.0 44% 10.1 41% 11.0 0.3% 8.0 0.5% 8.0 11.2 9.6 7.9 -31% -55% 6.0 5.8 -21% 110% 0.0% 0.0% 4.0 5.1 -16% 4.6 0.3 -0.5% 2.
Slide 9: Profitability: EBITDA
Profitability EBITDA (US#039; million) 50.0 44.8 45.0 40.0 35.0 64% 30.8 30.0 27.4 26.0 24.4 23.7 25.0 22.0 -15% 12% 20.2 19.9 18.9 -47% 20.0 40% -6% 15.0 17% 13.2 -5% 10.3 10.0 8.8 -44% -2% 1,914% 5.0 130% 0.5 - FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 1H20 1H21 9
Slide 10: Financial Position: Current Ratio
Financial Position Maintaining Healthy Current Ratio 1.8 500.0 468.6 458.5 1.5 1.6 1.5 430.6 1.4 1.4 1.4 1.5 397.5 400.0 382.6 1.4 1.3 372.0 371.5 347.8 1.2 1.2 340.8 1.2 1.2 1.2 332.2 330.6 324.1 1.2 295.6 300.0 277.0 1.0 230.7 234.0 218.3 211.5 218.7 214.9 0.8 200.0 173.8 147.5 147.0 0.6 120.7 0.4
Slide 11: Financial Position: Net Gearing Ratio
Financial Position Net Gearing Ratio 140% 180.0 166.5 116% 155.9 155.8 120% 160.0 112% 115% 151.7 147.2 108% 98% 138.0 139.3 145.0 140.0 144.5 100% 89% 122.2 124.8 120.2 119.4 120.0 104.5 110.0 105.8 80% 100.0 98.7 97.9 72% 86.5 68% 82.3 54% 60% 80.0 72.6 71.2 56% 60.0 56.3 48% 43% 40% 40.0 37.6 20%
Slide 12: Financial Position: Cash Conversion Cycle
Financial Position Cash Conversion Cycle (days) 125 113 115 105 96 95 87 85 84 72 75 69 70 67 66 66 62 67 65 58 58 56 61 66 55 55 61 60 51 51 54 51 41 53 49 46 45 42 44 38 37 36 33 41 38 32 40 35 40 35 29 29 25 31 33 32 33 33 30 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 1H21 Trade Recei
Slide 13: Dividend Yield
Dividend Yield 1H21 0.22 1.6% 0.11 1.3% Total Dividend Payout (In Cent (SGD)) FY20 (Interim & Final) each year FY19 0.22 0.13 4.3% 0.40 1.00 0.46 21.9% FY18 FY17 0.29 0.46 4.6% FY16 0.18 0.17 2.4% 0.35 0.50 6.3% FY15 FY14 0.30 0.75 8.0% FY13 0.24 0.25 0.30 6.3% 0.22 0.30 5.0% FY12 FY11 0.30 0.16 0.3
Slide 14: Outlook
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Slide 15: Industry Outlook
Industry Outlook Br igh t Spot s Adoption of 5G, electric and autonomous vehicles and IoT will increase demand for chip with more processing power and memory storage US-China ’tech war’ will drive demand for chips Work-from-home measures in Malaysia expected to continue, strengthening business
Slide 16: Group Outlook
Group Outlook • The Group will continue to focus efforts to expand product portfolio, widen customer and supplier base • Appointed as a distributor in Malaysia by Taiwan- based Asrock, fortifying our position as the leading motherboard and VGA distributor in Malaysia • Added franchises for Singapore
Slide 17: Corporate Overview
CORPORATE OVERVIEW
Slide 18: Serial System At A Glance
Serial System At A Glance Electronic Components One of (91%)* Asia Pacific’s 1H2021 1H2020 largest electronic Hong Kong China 51% 16% 47% 14% distribution networks South East Asia and India 19% 26% South Korea 7% 4% Taiwan 7% 9% 100% 100% Total Shares: 905 million Free Float: 38% SERIAL Consumer Pro
Slide 19: Diversified Business
Diversified Business Supporting a network of global brands, Serial System is a leading distributor of electronic components in Asia and a dealer for a variety of consumer products. It is also a strategic investor in businesses in healthcare, managed print services and fast moving consumer products.
Slide 20: Strong Asia Pacific Presence
Strong Asia Pacific Presence Extensive Distribution Network The Group’s offices and representations CHINA JAPAN INDONESIA 23 Sales Offices North China Tokyo Jakarta 13 Warehouses Beijing > 700 employees Qingdao MALAYSIA TAIWAN in Asia Pacific Xi'an Penang Taipei Kuala Lumpur Hsinchu East China
Slide 21: Group Structure
Group Structure As at 31 July 2021 Note: (1) Entities held by Serial System Ltd (2) Entities held by SCE Enterprise Pte. Ltd. (3) Entities held by Serial System International Pte. Ltd. (4) Investment holding and trading, and rental of properties (5) Excluded entities which are dormant, inactive or i
Slide 22: Partnering Leading Suppliers: Electronic Components
Partnering Leading Suppliers Electronic Components Distribution … more than 90 Franchised Product Lines in Serial System Group 22
Slide 23: Partnering Leading Suppliers: Consumer Products
Partnering Leading Suppliers Consumer Products Distribution 23
Slide 24: Consumer Products Distribution
Consumer Products Distribution Achieva Technology Group The Group’s 100%-owned subsidiary: Achieva Technology Sdn. Bhd. Major suppliers include AMD, AOC, Asrock, Gigabyte, Intel, MSI, Philips and ViewSonic Achieva Technology works closely with partner brands to fulfil their distribution needs
Slide 25: Managed Print Services and 3D Printing
Consumer Products Distribution Managed Print Services and 3D Printing Print-IQ Singapore Pte. Ltd. Started in 2014, Singapore-based Print-IQ is 91.43% owned by Serial System Provides managed print services and maintains and distributes copiers and printers Premier partner for HP copiers Part
Slide 26: Other Businesses
0ther Businesses Serial MultiVision Pte. Ltd. (100%-stake) Core businesses: Hospitality and Healthcare solutions Hospitality solutions: Build based on a core venue management application suite known as Venue360 Leading edge modules within Venue360: Electronic meal ordering system (eMOS), Intel
Slide 27: 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
Slide 28: Thank You
Thank You Media and Investor Contact: WeR1 Consultants Pte Ltd 1 Raffles Place #02-01 One Raffles Place Mall Suite 332 Singapore 048616 Tel: (65) 6721 7161 Isaac Tang, serialsystem@wer1.net 28