Impro Precision Industries Limited · HKEX:1286
Impro Precision Industries — FY2021 Earnings Presentation
30 slides from Impro Precision Industries's earnings presentation, Mar 10, 2022
Slide 1: 2021 Annual Results Presentation
Stock Code: 1286 2021 ANNUAL RESULTS PRESENTATION March 10, 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 year ended December 31, 2021. This presentation is intended to provide updated information on the Gro
Slide 3: 2021 Results Highlights
2021 Results Highlights Record High Revenue Growing Americas Business • 2021 Revenue grew by 29.2% y-on-y to HK$3.78B • 2021 Americas revenue increased by 35.0% y-on-y, with • Stellar growth rate in several Industrial & Others sub 2H/2021 growth rate even higher at 43.9% y-on-y end-markets like Hydr
Slide 4: Revenue by End Market
Revenue by End Market 2H/2020 2H/2021 FY2020 FY2021 2H/2020 2H/2021 Inc/(Dec) FY2020 FY2021 Inc/(Dec) By End Market HK$ mil HK$ mil HK$ mil Change HK$ mil HK$ mil HK$ mil Change Automotive 797.5 826.8 29.3 3.7% 1,394.2 1,723.3 329.1 23.6% Industrial & Others 643.4 962.4 319.0 49.6% 1,258.3 1,748.6 4
Slide 5: Revenue by End Market
Revenue by End Market 2H/2020 2H/2021 Inc/(Dec) FY2020 FY2021 Inc/(Dec) By End Market HK$ mil HK$ mil HK$ mil Change HK$ mil HK$ mil HK$ mil Change Automotive 797.5 826.8 29.3 3.7% 1,394.2 1,723.3 329.1 23.6% - Passenger Car 473.8 458.5 (15.3) -3.2% 868.6 968.3 99.7 11.5% - Commercial Vehicle 323.7
Slide 6: Revenue by Business
Revenue by Business 2H/2020 2H/2021 FY2020 FY2021 2H/2020 2H/2021 Inc/(Dec) FY2020 FY2021 Inc/(Dec) By Business HK$ mil HK$ mil HK$ mil Change HK$ mil HK$ mil HK$ mil Change Investment Casting 645.9 807.4 161.5 25.0% 1,307.0 1,556.4 249.4 19.1% Precision Machining 536.2 659.6 123.4 23.0% 926.6 1,338
Slide 7: Revenue by Geographical Market
Revenue by Geographical Market 2H/2020 2H/2021 FY2020 FY2021 2H/2020 2H/2021 Inc/(Dec) FY2020 FY2021 Inc/(Dec) By Geographical HK$ mil HK$ mil HK$ mil Change HK$ mil HK$ mil HK$ mil Change Americas 590.3 849.4 259.1 43.9% 1,160.5 1,567.2 406.7 35.0% - United States 544.6 761.2 216.6 39.8% 1,073.2 1,
Slide 8: 2021 Financial Review
2021 Financial Review
Slide 9: FY2021 Financial Review
FY2021 Financial Review FY2020 FY2021 Financial Highlights HK$ mil HK$ mil Change Revenue 2,924.6 3,777.7 29.2% Gross Profit 767.3 1,022.4 33.2% Gross Profit Margin 26.2% 27.1% 0.9% Impairment loss of goodwill & other assets (445.2) - N/A Other net loss (27.8) (48.0) 72.7% Selling and distribution e
Slide 10: Gross Profit
Gross Profit HK$ mil 1,500.0 30.0% 27.1% 26.2% 25.0% 1,200.0 1,022.4 93.4 30.7% 20.0% 900.0 767.3 139.6 24.1% 15.0% 80.7 31.5% 600.0 108.3 24.9% 308.2 23.0% 10.0% 206.9 22.3% 300.0 30.9% 5.0% 481.2 371.4 28.4% - 0.0% FY2020 FY2021 Investment Casting Precision Machining Sand Casting Surface Treatment
Slide 11: Cost of Sales Analysis
Cost of Sales Analysis HK$ mil 3,000.0 2,755.3 2,500.0 545.7 19.8% 2,157.3 202.1 7.3% 2,000.0 421.9 19.6% 246.9 9.0% 162.6 7.5% 1,500.0 235.0 10.9% 768.3 27.9% 1,000.0 548.7 25.4% 500.0 992.3 36.0% 789.1 36.6% - FY2020 FY2021 Cost of materials (raw materials & Staff Costs Depreciation Fuel Expenses
Slide 12: Operating Expenses Analysis
Operating Expenses Analysis HK$ mil Selling and Distribution Expenses HK$ mil Administrative and Other Operating Expenses 300.0 6.0% 500.0 10.0% 8.7% 5.0% 8.4% 9.0% 250.0 5.0% 400.0 8.0% 4.0% 328.4 7.0% 200.0 187.4 4.0% 300.0 6.0% 150.0 3.0% 245.9 5.0% 117.0 200.0 4.0% 100.0 2.0% 3.0% 100.0 2.0% 50.
Slide 13: Key Working Capital Ratios
Key Working Capital Ratios HK$ mil Inventory Turnover Days (Average) Days HK$ mil Trade and Bills Receivable Turnover Days (Average) Days 1,500 150 1,600 105 90 121 100 118 137 90 1,200 120 84 974.6 1,200 972.2 75 900 785.8 90 816.0 60 705.3 748.1 800 600 60 45 30 400 300 30 15 - - 0 - 12/31/2019 12
Slide 14: Capital Expenditure
Capital Expenditure HK$ mil Actual and Forecast Capex in FY2019-FY2022 1,600.0 1500 9.7% 12.3% 7.6% 1200 1,180.0 1,200.0 125.9 900 800.0 696.0 600 457.9 470.5 1,054.1 464.0 400.0 353.8 223.6 269.6 300 0.0 0 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (Group) (Ex. (Group) (Ex. (Group) (Ex
Slide 15: Dividends & Available Bank Facilities
Dividends & Available Bank Facilities Dividends Available Bank Facilities HK$ mil HK$ mil 300.0 48% 1,500.0 45% 1,200.0 36% 1,101.2 200.0 302.8 900.0 25% 25% 24% 600.0 100.0 190.2 1,088.8 994.9 12% 798.4 135.6 300.0 79.1 - 0% - FY2019 FY2020 FY2021 FY2019 FY2020 FY2021 Dividends Dividend Payout Rati
Slide 16: Key Financial Ratios
Key Financial Ratios Adjusted Return on Equity Net Gearing Ratio 20.0% 25.0% 17.2% 22.1% 20.0% 15.0% 10.1% 15.0% 12.6% 10.0% 7.8% 10.0% 6.2% 5.0% 5.0% 0.0% 0.0% FY2019 FY2020 FY2021 FY2019 FY2020 FY2021 X Net Debt / Adj. EBITDA X Interest Coverage Ratio 1.5 25.0 20.0 18.5 1.0 1.0 15.0 11.6 9.2 0.5 1
Slide 17: Sustainability Highlights
Sustainability Highlights ⚫ Insist in low greenhouse gas emission and reduction of energy consumption during manufacturing process, reducing group’s carbon emissions and energy consumption density over the past 2 years Tonne of CO2/ Greenhouse Gas Emission Density Tonne of std. coal/ Energy Consumpt
Slide 18: Business Outlook
Business Outlook
Slide 19: 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 Feb 4, 2022) (Photo taken on July 27, 2021) ⚫ Mexico SLP Campus Sand Casting (SC) and Precision Machining (PM) plants have been put into operation in
Slide 20: Business Outlook
Business Outlook ⚫ As of Feb 28, 2022, orders on hand for next 12 months amount to HK$3.75B, a ~43% increase y-on- y, or ~18% increase as compared to orders on hand as of Jul 31, 2021 ⚫ Resilient demand from several Industrial & others end-markets like Construction Equipment, High Horsepower Engine,
Slide 21: Q&A Session
impro > 4 Q&A Session
Slide 22: Appendices – Financials Summary
Appendices – Financials Summary
Slide 23: Reconciliation of Adjusted Profit Attributable to Shareholders and Adjusted EBITDA
Appendix 1 - Reconciliation of Adjusted Profit Attributable to Shareholders and Adjusted EBITDA FY2020 FY2021 HK$ mil HK$ mil Change Reconciliation to Adj. Profit Attr. to Shareholders (Loss) / Profit after tax (144.3) 385.8 Adjustments: - Provision for staff severance and related costs in relation
Slide 24: Consolidated Statement of Profit or Loss
Appendix 2 – Consolidated Statement of Profit or Loss FY2020 FY2021 HK$ mil HK$ mil Revenue 2,924.6 3,777.7 Cost of sales (2,157.3) (2,755.3) Gross Profit 767.3 1,022.4 Other revenue 36.6 34.4 Other net loss (27.8) (48.0) Impairment loss of goodwill and other assets (445.2) - Selling and distributio
Slide 25: Consolidated Statement of Financial Position
Appendix 3 – Consolidated Statement of Financial Position 12/31/2020 12/31/2021 HK$ mil HK$ mil Non-current assets Property, plant and equipment 3,256.6 3,970.1 Prepayments for Property, plant and equipment 25.3 54.5 Intangible assets 60.3 43.7 Deferred expenses 173.2 178.5 Other financial assets 1.
Slide 26: Consolidated Statement of Financial Position
Appendix 3 – Consolidated Statement of Financial Position 12/31/2020 12/31/2021 HK$ mil HK$ mil Current liabilities Bank loans 460.9 786.7 Lease liabilities 24.6 9.4 Trade payables 280.1 349.3 Other payables and accruals 196.2 381.7 Taxation payable 45.6 56.0 1,007.4 1,583.1 Net current assets 1,127
Slide 27: Consolidated Statement of Financial Position
Appendix 3 – Consolidated Statement of Financial Position 12/31/2020 12/31/2021 HK$ mil HK$ mil Capital and reserves Share capital 188.3 188.3 Reserves 3,824.8 4,167.8 Total equity attributable to equity shareholders of the Company 4,013.1 4,356.1 Non-controlling interest 19.8 23.3 TOTAL EQUITY 4,03
Slide 28: Condensed Consolidated Cash Flow Statement
Appendix 4 – Condensed Consolidated Cash Flow Statement FY2020 FY2021 HK$ mil HK$ mil Operating activities Cash generated from operations 996.9 515.5 Tax paid (108.2) (91.1) Net cash generated from operating activities 888.7 424.4 Investing activities Payment of property, plant and equipment (485.0)
Slide 29: Condensed Consolidated Cash Flow Statement
Appendix 4 – Condensed Consolidated Cash Flow Statement FY2020 FY2021 HK$ mil HK$ mil Financing activities Proceeds from bank loans 736.3 1,212.8 Repayment of bank loans (901.0) (491.5) Interest paid (34.2) (27.2) Dividends paid (105.5) (88.5) Lease rentals paid (68.9) (25.7) Net cash (used in)/gene
Slide 30: Reliable - Flexible - Global
Reliable - Flexible - Global
Impro Precision Industries — FY2021 Earnings Presentation on 6ix