Slide 1: Serial System Ltd FY2023 and 2H2023 Results Presentation
SERIAL SYSTEM LTD FY2023 AND 2H2023 RESULTS PRESENTATION Friday, 23 February 2024
Slide 2: Agenda
AGENDA By moving forward and FINANCIAL thinking forward, RESULTS Serial System helps its partners to be more competitive in the OUTLOOK marketplace, today and in the future
Slide 3: Financial Results
FINANCIAL | RESULTS | i
Slide 4: Snapshot Of FY2023 And 2H2023 Performance
Snapshot Of FY2023 And 2H2023 Performance US$’000 2H2023 2H2022 Change (%) FY2023 FY2022 Change (%) Sales 389,180 443,955 -12 758,951 906,723 -16 Gross Profit 29,344 33,858 -13 58,830 73,750 -20 Gross Profit Margin (%) 7.5 7.6 -0.1 ppt 7.8 8.1 -0.3 ppt Net Loss After Tax (2,105) (5,008) -58 (14,831)
Slide 5: FY2023 Highlights
FY2023 Highlights ❑ Revenue in FY2023 decreased 16% year-on-year to US$759.0M from US$906.7M in FY2022 ▪ Sales for the electronic components distribution business decreased by 21%, due to lower sales across most of the regions in Asia, notably Hong Kong, China and Taiwan, attributable to weak demand
Slide 6: 2H2023 Highlights
2H2023 Highlights ❑ Revenue in 2H2023 declined 12% to US$389.1M from US$444.0M in 2H2022 ▪ Turnover for the electronic components distribution business declined by 16% mainly due to lower sales across most of the regions in Asia, particularly in Hong Kong, China and Taiwan, attributable to dampened
Slide 7: Revenue Trend
Revenue Trend Revenue (US#039; million) 1,600 1,527 1,492 1,403 1,400 1,222 2% 1,200 1,036 1,000 6% 896 907 817 792 15% 731 759 800 658 616 18% 600 545 -48% 27% 1% 463 24 444 382 % 370 389 400 354 315 7% 22% -16% 228 186 184 183 13% -12% 200 -8% 92 43% 44 -20% 8% - 7
Slide 8: Profitability: Gross Profit & Gross Profit Margin
Profitability Gross Profit & Gross Profit Margin (US#039; million) 10.0% 9.5% 140.0 9.3% 9.3% 9.0% 8.7% 8.6% 9.0% 7.8% 8.1% 8.1% 8.0% 120.0 7.5% 7.8% 7.6% 8.0% 7.5% 7.0% 6.9% 6.8% 7.0% 118.6 100.0 6.3% 91.5 97.4 105.1 6.0% 90.4 13% 80.0 5.0% 8% 73.0 73.5 -54% 73.8 6% 1% 60.0 4.0% 62.6 58.8 54.2 57.5 59
Slide 9: Profitability: Net Profit & Net Profit Margin
Profitability Net Profit & Net Profit Margin (US#039; million) 20.0 3.0% 44% 18.0 2.2% 16.0 16.1 17.7 1.6% 2.0% 14.0 11.2 1.6% 4,181% 12.0 1.2% 1.4% 11.0 1.2% 1.2% 12.0 9.6 1.0% 10.0 7.9 10.1 11.1 1.0% 8.0 0.9% 0.6% 0.3% 8.0 6.0 41% -31% 0.04% -55% 4.0 85% 0.0% -21% 4.6 -0.5% -97% 0.1% 2.0 -16% 110% 0.
Slide 10: Profitability: EBITDA
Profitability EBITDA (US#039; million) 50.0 44.8 40.0 30.8 30.0 27.4 26.0 24.4 23.7 22.0 64% 20.2 19.9 20.8 20.0 18.9 -15% 12% 13.2 40% 58% 9.6 10.0 -6% 17% 6.0 6.8 -47% -54% -5% 2.9 3.6 -2% -44% -69% - FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 1H22 2H22 1H23 2H23 (3.8) (10.
Slide 11: Financial Position: Maintaining Healthy Current Ratio
Financial Position Maintaining Healthy Current Ratio 1.6 500.0 1.5 1.5 1.4 1.4 468.6 1.4 1.4 458.5 1.3 1.3 430.6 1.4 1.3 1.2 398.3 382.6 1.2 397.5 400.0 1.2 1.2 1.2 371.5 373.6 1.2 372.0 347.8 340.8 341.7 332.2 324.1 295.6 300.2 1.0 300.0 277.0 258.2 254.2 230.7 234.0 0.8 218.3 211.5 218.7 200.0 173
Slide 12: Financial Position: Net Gearing Ratio
Financial Position Net Gearing Ratio 140% 180.0 166.5 168.2 119% 116% 161.4 155.9 157.2 120% 160.0 115% 151.7 108% 147.2 148.6 113% 140.0 138.0 145.0 131.8 89% 124.8 139.3 144.5 100% 122.2 112% 133.2 120.2 120.0 119.4 98% 104.5 110.0 83% 72% 80% 100.0 98.7 97.9 86.5 82.3 80.0 54% 72.6 60% 71.2 43% 5
Slide 13: Financial Position: Cash Conversion Cycle
Financial Position Cash Conversion Cycle (Days) 145 127 125 113 105 105 96 89 85 87 82 70 69 75 66 66 72 70 60 67 66 65 58 58 65 65 61 62 56 61 51 55 53 54 54 51 49 51 45 44 41 40 42 41 38 33 40 36 32 38 37 35 31 33 32 33 33 30 29 30 30 30 25 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY
Slide 14: Dividend Yield
Dividend Yield FY22 0.11 FY21 0.22 0.45 0.11 Total Dividend Payout (In Cents (SGD)) FY20 FY19 0.22 0.13 FY18 0.40 1.00 0.46 FY17 0.29 0.46 FY16 0.18 0.17 0.35 0.50 FY15 FY14 0.30 0.75 FY13 0.24 0.25 0.30 FY12 0.22 0.30 FY11 0.30 0.16 0.33 FY10 0.28 0.67 Interim Special Final FY09 0.13 0.38 FY08 0.33
Slide 15: Outlook
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Slide 16: Industry Outlook
Industry Outlook Bright Spots ▪ Rising global demand for artificial intelligence and high- performance computing ▪ Stabilizing demand for consumer electronics and infrastructure in Asia ▪ Resilient growth in the electric cars industry Uncertainties ▪ High interest rates, persistent inflation and geo
Slide 17: Group Outlook
Group Outlook • The Group sees opportunities to increase supplier base, particularly in China, as suppliers look for reliable distributors • Further expanding into emerging sectors, building upon track record in renewable energy, artificial intelligence and automotive segments • Increase range of co
Slide 18: Serial System At A Glance
Serial System At A Glance Electronic Components* FY2023 : 88% FY2022 : 93% One of FY2023 FY2022 Asia Pacific’s Hong Kong 43% 46% largest electronic China 22% 22% distribution networks South East Asia & India 22% 19% South Korea 8% 7% Taiwan 5% 6% 100% 100% Total Shares: 905 million SERIAL Consumer P
Slide 19: 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 20: Thank You
Thank You Serial System Ltd 8 Ubi View #05-01 Serial System Building Singapore 408554 Tel: (65) 6510 2408 Fax. 65 6510 2407 ecomm@serialsystem.com 20