Impro Precision Industries Limited · HKEX:1286
Impro Precision Industries — H1 2022 Earnings Presentation
28 slides from Impro Precision Industries's earnings presentation, Aug 11, 2022
Slide 1: 2022 Interim Results Presentation
Stock Code: 1286 2022 INTERIM RESULTS PRESENTATION August 11, 2022
Slide 2: Disclaimer
Disclaimer The information set forth in this presentation is relating to the business of Impro Precision Industries Limited (the “Company” which, together with its subsidiaries, the “Group”) for the six months ended June 30, 2022. This presentation is intended to provide updated information on the G
Slide 3: 1H/2022 Results Summary
1H/2022 Results Summary Robust Revenue Growth Improving GP and EBITDA margin • Group revenue up 20.2% y-on-y to HK$2,192.7M • Economies of scale, price adjustment in certain products and • Aerospace & medical end-markets rebounded strongly, 1H/2022 capacity expansion, etc. drove up 1H/2022 GP% by 2.
Slide 4: Revenue by End Markets
Revenue by End Markets 1H/2021 1H/2022 1H/2021 1H/2022 Inc/Dec By End Markets HK$ mil HK$ mil HK$ mil Change Automotive 896.5 929.7 33.2 3.7% Industrial & Others 786.2 1,067.7 281.5 35.8% Aerospace & Medical 141.2 195.3 54.1 38.3% Total 1,823.9 2,192.7 368.8 20.2% 4
Slide 5: Revenue by End Markets
Revenue by End Markets 1H/2021 1H/2022 Inc/Dec By End Markets HK$ mil HK$ mil HK$ mil Change Automotive 896.5 929.7 33.2 3.7% - Passenger Car 509.8 476.5 (33.3) -6.5% - Commercial Vehicle 386.7 453.2 66.5 17.2% Industrial & Others 786.2 1,067.7 281.5 35.8% - High Horsepower Engine 129.5 208.6 79.1 6
Slide 6: Revenue by Business Segment
Revenue by Business Segment 1H/2021 1H/2022 1H/2021 1H/2022 Inc/Dec By Business Segment HK$ mil HK$ mil HK$ mil Change Investment Casting 749.0 933.8 184.8 24.7% Precision Machining 679.0 754.8 75.8 11.2% Sand Casting 247.3 380.6 133.3 53.9% Surface Treatment 148.6 123.5 (25.1) -16.9% Total 1,823.9
Slide 7: Revenue by Geographical Area
Revenue by Geographical Area 1H/2021 1H/2022 1H/2021 1H/2022 Inc/Dec By Geographical HK$ mil HK$ mil HK$ mil Change Americas 717.8 1,046.4 328.6 45.8% - United States 659.2 963.1 303.9 46.1% - Others 58.6 83.3 24.7 42.2% Europe 606.6 672.2 65.6 10.8% Asia 499.5 474.1 (25.4) -5.1% - The PRC 456.1 417
Slide 8: 1H/2022 Financial Review
1H/2022 Financial Review impro
Slide 9: 1H/2022 Financial Review
1H/2022 Financial Review 1H/2021 1H/2022 Financial Highlights HK$ mil HK$ mil Change Revenue 1,823.9 2,192.7 20.2% Gross Profit 498.3 643.3 29.1% Gross Profit Margin 27.3% 29.3% 2.0% Other revenue 15.1 12.6 -16.6% Other net loss (37.3) (49.6) 33.0% Selling and distribution expenses (90.6) (103.3) 14
Slide 10: Gross Profit
Gross Profit HK$ mil 900.0 29.3% 30.0% 27.3% 25.0% 643.3 600.0 36.4 29.5% 20.0% 498.3 115.8 30.4% 29.3% 43.5 15.0% 59.1 23.9% 211.7 28.0% 300.0 181.4 26.7% 10.0% 279.4 29.9% 5.0% 214.3 28.6% - 0.0% 1H/2021 1H/2022 Investment Casting Precision Machining Sand Casting Surface Treatment Gross Profit Mar
Slide 11: Cost of Sales Analysis
Cost of Sales Analysis HK$ mil 1,800.0 1,549.4 1,325.6 284.9 18.4% 1,200.0 268.9 20.2% 115.3 7.4% 6.9% 124.7 8.1% 90.9 120.9 9.1% 404.1 26.1% 600.0 373.3 28.2% 620.4 40.0% 471.6 35.6% - 1H/2021 1H/2022 Cost of RM and consumables Staff Costs Depreciation Fuel Expenses and Utilities Others Percentage
Slide 12: Operating Expenses Analysis
Operating Expenses Analysis HK$ mil Selling and Distribution Expenses HK$ mil Administrative and Other Operating Expenses 150.0 5.5% 250.0 9.0% 5.0% 4.7% 7.8% 7.0% 4.4% 200.0 103.3 100.0 90.6 153.5 6.0% 3.3% 150.0 142.4 2.2% 100.0 50.0 3.0% 1.1% 50.0 - 0.0% - 0.0% 1H/2021 1H/2022 1H/2021 1H/2022 S&D
Slide 13: Key Working Capital Ratios
Key Working Capital Ratios HK$ mil Inventory Turnover Day (Average) Days HK$ mil Trade and Bills Receivable Turnover Days (Average) Days 1,500 150 1,800 100 105 137 126 121 84 86 974.6 1,023.8 1,000 100 1,200 1,092.0 70 972.2 705.3 748.1 500 50 600 35 - - 0 - 12/31/2020 12/31/2021 6/30/2022 12/31/20
Slide 14: Capital Expenditure
Capital Expenditure HK$ mil Actual FY2020-2021 and Budget Capex in FY2022 1,500.0 12.3% 1500 7.6% 6.2% 1,200.0 1200 1,054.1 (Latest 900.0 900 Budget) 720.0 600.0 600 470.5 464.0 366.9 (Latest Budget) 353.1 305.1 300.0 300 223.6 135.4 169.7 353.1 135.4 0.0 0 FY2020 FY2020 FY2021 FY2021 1H/2022 1H/202
Slide 15: Key Financial Ratios
Key Financial Ratios Adjusted Return on Equity Net Gearing Ratio 15.0% 30.0% 12.5% 25.8% 22.1% 10.1% 10.0% 20.0% 7.8% 5.0% 10.0% 6.2% 0.0% 0.0% FY2020 FY2021 1H/2022 (Annualized) FY2020 FY2021 1H/2022 X Net Debt / Adj. EBITDA X Adjusted Interest Coverage Ratio 1.5 25.0 21.3 20.0 18.5 1.0 1.0 1.0 15.
Slide 16: Business Outlook
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Slide 17: Mexico SLP Campus Construction Update
Mexico SLP Campus Construction Update Aerospace & Aerospace & ST Plant ST Plant SC Plant SC Plant PM Plant PM Plant IC Plant IC Plant (Photo taken on Aug 3, 2022) (Photo taken on Feb 4, 2022) ⚫ Mexico SLP Campus Sand Casting (SC) and Precision Machining (PM) plants have been put into operation in No
Slide 18: Business Outlook
Business Outlook ⚫ As of July 31, 2022, orders on hand for next 12 months at HK$3.63B, a ~14.7% increase y-on-y ⚫ International travel activities will be gradually resumed in 2022, Aerospace end-market may become the future growth engine of the Group again ⚫ Current energy price rises in the world,
Slide 19: Q&A Session
Q&A Session impro
Slide 20: Appendices – Financials Summary
Appendices – Financials Summary
Slide 21: Reconciliation of Adjusted Profit Attributable to Shareholders and Adjusted EBITDA
Appendix 1 - Reconciliation of Adjusted Profit Attributable to Shareholders and Adjusted EBITDA 1H/2021 1H/2022 HK$ mil HK$ mil Change Reconciliation to Adj. Profit Attr. to Shareholders Profit after tax 176.6 268.0 Adjustments (net of tax): - Prov. for staff severance costs re: Germany plant closur
Slide 22: Consolidated Statement of Profit or Loss
Appendix 2 – Consolidated Statement of Profit or Loss 1H/2021 1H/2022 HK$ mil HK$ mil Revenue 1,823.9 2,192.7 Cost of sales (1,325.6) (1,549.4) Gross Profit 498.3 643.3 Other revenue 15.1 12.6 Other net loss (37.3) (49.6) Selling and distribution expenses (90.6) (103.3) Administrative and other oper
Slide 23: Consolidated Statement of Financial Position
Appendix 3 – Consolidated Statement of Financial Position 12/31/2021 6/30/2022 HK$ mil HK$ mil Non-current assets Property, plant and equipment 3,970.1 3,945.9 Prepayments for property, plant and equipment 54.5 52.5 Intangible assets 43.7 34.4 Deferred expenses 178.5 169.4 Other financial assets 1.7
Slide 24: Consolidated Statement of Financial Position
Appendix 3 – Consolidated Statement of Financial Position 12/31/2021 6/30/2022 HK$ mil HK$ mil Current liabilities Bank loans 786.7 948.8 Lease liabilities 9.4 8.2 Trade payables 349.3 440.4 Other payables and accruals 381.7 313.4 Taxation payable 56.0 73.2 Total current liabilities 1,583.1 1,784.0
Slide 25: Consolidated Statement of Financial Position
Appendix 3 – Consolidated Statement of Financial Position 12/31/2021 6/30/2022 HK$ mil HK$ mil Capital and reserves Share capital 188.3 188.3 Reserves 4,167.8 4,138.8 Total equity attributable to equity shareholders of the Company 4,356.1 4,327.1 Non-controlling interest 23.3 22.7 TOTAL EQUITY 4,379
Slide 26: Condensed Consolidated Cash Flow Statement
Appendix 4 – Condensed Consolidated Cash Flow Statement 1H/2021 1H/2022 HK$ mil HK$ mil Operating activities Cash generated from operations 350.4 500.9 Tax paid (39.4) (57.9) Net cash generated from operating activities 311.0 443.0 Investing activities Payment of property, plant and equipment (538.6
Slide 27: Condensed Consolidated Cash Flow Statement
Appendix 4 – Condensed Consolidated Cash Flow Statement 1H/2021 1H/2022 HK$ mil HK$ mil Financing activities Proceeds from bank loans 486.8 876.7 Repayment of bank loans (377.6) (524.1) Lease rentals paid (18.2) (5.2) Dividends paid (33.9) (135.6) Interest paid (11.8) (20.4) Net cash generated from
Slide 28: Reliable - Flexible - Global
Reliable - Flexible - Global
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