Serial System Ltd · SGX:S69
Serial System — Q3 2015 Earnings Presentation
28 slides from Serial System's earnings presentation, Nov 6, 2015
Slide 1: 3Q’2015 Results Briefing
3Q’2015 Results Briefing 6 November 2015 1 1
Slide 2: Agenda
AGENDA 1. Recent Corporate Developments 2. Financial Results 3. Outlook 2 2
Slide 3: Recent Corporate Developments
Recent Corporate Developments 3 3
Slide 4: Recent Corporate Developments
Recent Corporate Developments 30 October 2015 ` Invested 49% equity interest in Serial Factoring (Thailand) Co., Ltd. Provision of project financing in the form of leasing, hire-purchase, factoring and loan to IT and related corporations in Thailand The Group will also benefit from supplying its
Slide 5: About Tong Chiang Group
About Tong Chiang Group Acquisition of a 21% equity interest in food products manufacturer and caterer, Tong Chiang Group (“TCG”) for ~U$3.2M Part of Group’s diversification into investment holding of high-margin companies TCG comprises 13 wholly-owned subsidiaries and three separate property invest
Slide 6: Financial Results
Financial Results 6 6
Slide 7: 3Q’2015 & YTD’3Q2015 Snapshot
3Q’2015 & YTD’3Q2015 SNAPSHOT Change YTD’15 YTD’14 Change US$’000 3Q2015 3Q2014 (%) 3Q2015 3Q2014 (%) Sales 321,127 293,107 10 892,484 768,391 16 Gross Profit 22,993 24,711 (7) 68,741 66,338 4 Gross Profit Margin (%) 7.2 8.4 (1.2) pt 7.7 8.6 (0.9) pt Net Profit After Tax 2,182 4,318 (49) 10,008 11,4
Slide 8: 3Q’2015 & YTD’3Q2015 Key Highlights
3Q’2015 & YTD’3Q2015 KEY HIGHLIGHTS 3Q’2015 • Revenue up 10% to US$321.1 million: - Higher sales from electronic components distribution in South Korea and Taiwan (up 28% and 27% respectively) - Revenue in South-East Asia and India grew marginally at 0.5% - Swift Value and Serial I-Tech Group contri
Slide 9: Revenue Growth
REVENUE GROWTH Revenue (US$' million) 1,200.0 1,036 1,000.0 892.5 8 817.1 768.4 800.0 27% 658.1 616.4 24% 600.0 545.0 7% 16% 381.9 13% 400.0 353.6 315.3 293.1 309.6 321.1 43% 262.9 261.8 227.7 212.4 185.6 184.5 182.9 8% 200.0 10% 12% 92.0 43.7 11% 4% - 9 9
Slide 10: Outperforming the Industry
OUTPERFORMING THE INDUSTRY Asia Pacific (includes Japan) Semiconductor Revenue (US$' billion) Serial System Revenue (US$' million) 240 239 1,200 1,036 235 229 230 1,000 817 225 800 220 658 616 27% 215 4% 545 209 600 207 210 205 205 24% 205 9% 400 7% 200 2% 195 200 -0.9% 190 - 185 FY10 FY11 FY12 FY13
Slide 11: Sales in HK, China
SALES IN HK, CHINA Hong Kong & China Revenue (US$' million) 700.0 661.8 600.0 489.7 487.9 500.0 461 461.4 400.0 370.2 43% 344.1 -0.4% 322.3 25% 300.0 219.0 8% 196.3 196.1 200.0 180.8 176.6 165.4 160.5 150.8 128.2 115.9 81.0 -18% 100.0 57.0 31 8 31.8 19% -9% 3.4 14.4 - 11 11
Slide 12: Sales in India
SALES IN INDIA India Revenue US$' million 25.000 21.7 20.000 17.9 18.3 15.000 14.1 2% 10.8 54% 10.000 9.3 8.6 66% 7.9 7.9 5.5 5.5 5.1 36% 4.8 4.5 5.000 3.8 3.1 69% 15% 18% 0.001 - FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 1Q14 2Q14 3Q14 YTD3Q14 1Q15 2Q15 3Q15 YTD3Q15 12 12
Slide 13: Sales in Taiwan
SALES IN TAIWAN Taiwan Revenue (US$' million) 70.0 60.7 60.0 56 56.2 47.6 49.1 50.0 45.6 39.4 8% 40.0 18% 8% 25.3 30.0 21% 18.7 20.2 21.3 20.0 14.9 14.0 15.6 16.9 14.2 13.1 13.6 10.0 27% 5.8 8% 57% - FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 1Q14 2Q14 3Q14 YTD3Q14 1Q15 2Q15 3Q15 YTD3Q15 13 1
Slide 14: Profitability: Gross Profit & Margin
PROFITABILITY Gross Profit & Gross Profit Margin (US$' million) 10.0% 9.5% 100.0 9.3% 9.3% 9.0% 9.0% 8.7% 8.6% 8.4% 9.0% 8.3% 90.0 8.6% 7.8% 8.0% 90.4 80.0 7.7% 7.0% 7.2% 70.0 73.5 68.7 23% 66.3 6.0% 62.6 60.0 57.5 5.0% 17% 4% 50.0 50.7 4.0% 40.0 3.0% 30.0 2.0% 22.6 24.7 24.1 23.0 20.0 21.7 19.0 -7%
Slide 15: Profitability: EBITDA
PROFITABILITY EBITDA (US$' million) 35.0 30.8 30.0 25.0 22.0 22.2 21.1 20.2 19.9 20.0 18.9 40% 15.0 -5% 16% 10.0 8.7 8.2 8.6 6.2 6.3 5.3 5.0 -23% -6% -27% - FY10 FY11 FY12 FY13 FY14 1Q14 2Q14 3Q14 YTD3Q14 1Q15 2Q15 3Q15 YTD3Q15 15 15
Slide 16: Profitability: Net Profit & Margin
PROFITABILITY Net Profit & Net Profit Margin (US$' million) 18.0 2.5% 2.2% 16.0 16.1 1.9% 2.0% 14.0 1.6% 12.0 1.5% 1.5% 1.5% 12.0 1.6% 11.4 1.5% 11.2 10.0 1.2% 10.1 1.2% 10.0 1.4% 1.0% 8.0 7.9 1.1% 1.0% 44% 0.7% 6.0 -13% 4.0 41% 5.0 4.8 48 4.3 3.1 31 0.5% -49% 2.0 2.1 2.2 2 -14% -54% - 0.0% FY10 FY1
Slide 17: Balance Sheet: Current Ratio
BALANCE SHEET Maintaining Healthy Current Ratio 450.0 1.6 1.5 422.4 1.4 1.4 400.0 1.4 365.2 1.3 350.0 347.8 1.2 1.2 1.2 295.6 300.0 277.0 1.0 250.0 218.3 211.5 218.7 0.8 200.0 173.8 147.5 147.0 0.6 150.0 120.7 0.4 100.0 50.0 0.2 - - FY10 FY11 FY12 FY13 FY14 YTD Sep15 Current Assets Current liabiliti
Slide 18: Balance Sheet: Net Gearing Ratio
BALANCE SHEET Net Gearing Ratio 173.7 160% 147% 160.0 140% 140.0 122.2 120% 120.2 118.1 120.0 110.0 98% 104.5 100% 98.7 89% 97.9 100.0 86.5 72% 80% 80.0 71.2 54% 56.3 60% 60.0 43% 37.6 40% 40.0 20.0 20% - 0% FY10 FY11 FY12 FY13 FY14 YTD Sep15 Shareholders' Equity Net Borrowings Net Gearing Ratio 18
Slide 19: Cash Conversion
CASH CONVERSION Cash Conversion Cycle (days) 75 70 69 70 67 65 62 65 66 60 58 61 60 55 55 51 51 50 44 45 41 40 36 33 41 35 38 32 31 34 30 33 32 30 25 FY10 FY11 FY12 FY13 FY14 YTD Sep15 Trade Receivable Turnover (days) Trade Payable Turnover (days) Inventory Turnover (days) Cash Conversion Cycle (day
Slide 20: Dividend Yield
DIVIDEND YIELD At least Two Dividend payout (Interim & Final) each year 0.35 4.3% FY15 0.30 0.75 8.0% FY14 FY13 0.24 0.25 0.30 6.30% FY12 0.22 0.30 5.0% 0.30 0.16 0.33 7.9% FY11 0.28 0.67 6.1% FY10 8.5% SGD Cents FY09 0.13 0.38 Interim Special Final 0.33 0.25 8.9% FY08 - 0.20 0.40 0.60 0.80 1.00 1.2
Slide 21: Outlook
Outlook 21 21
Slide 22: Industry Outlook
Industry Outlook The semiconductor industry is The slowdown is likely to These trends bode well for expected to experience slower be mitigated by the the Group as semiconductor growth due to headwinds such proliferation of mobile foundries and component as weaker global economic devices, tablet comp
Slide 23: Group Outlook
Group Outlook • Continues to pursue growth for core electronic components business through expansion of product lines, customer base and distribution network. • Continues to expand consumer products business: - Expects double-digit revenue growth in 2H’2015 versus 1H’2015 (1H’2015 – 8% of Group’s re
Slide 24: Our Three-Pronged Strategy
Our Three-Pronged Strategy Objectives to: - Increase revenue - Deepen value proposition - Drive greater internal efficiencies to improve margins Expand product Deepen penetration in portfolio & increase Improve internal existing markets & higher-value efficiencies widen geographical components expan
Slide 25: Serial System at a Glance
SERIAL SYSTEM AT A GLANCE The largest One of Asia Pacific’s electronic largest electronic component distribution network distributor (in terms of offices) listed on SGX Electronic Components Total Shares: (89%) 896 million YTD’3Q 2015 FY 2014 Free Float: 42% Hong Kong 52% 55% Market Capitalisation:
Slide 26: Partnering Leading Suppliers
Partnering Leading Suppliers Electronic Components Distribution Business … more than 90 Franchised Product Lines in Serial Group Consumer Products Distribution Business 26 26
Slide 27: Forward-looking statements disclaimer
The presentation herein may contain forward-looking statements by the management of Serial System Ltd (䇾Serial System䇿) 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 Information: WeR1 Consultants Pte Ltd 3 Phillip Street #12-01 Royal Group Building Singapore 048693 Tel: (65) 6737 4844 | Fax: (65) 6737 4944 Frankie Ho, frankieho@wer1.net Sheryl Sim, sheryl@wer1.net 28 28