Karin Technology Holdings Limited · SGX:K29

Karin Technology — H1 FY2013 Earnings Presentation

28 slides from Karin Technology's earnings presentation, February 2013

  1. Slide 1: Corporate Presentation: FY2013 Half Year Results

    { CORPORATE PRESENTATION } Karin Technology Holdings Limited FY2013 Half Year Results

  2. Slide 2: Karin Group at a Glance

    { KARIN GROUP AT A GLANCE } ► A leading HK-based electronic and 1HFY13 Revenue by Business (Total: HK$2.1 billion) industrial components and IT solutions IC Application Design: 3.0% distributor and services provider, as well Components Distribution: 17.9% as consumer electronics products retailer IT

  3. Slide 3: Core Business

    { CORE BUSINESS } Electronic Components Components Distribution Industrial Materials & Instrumentation Components Toys IC Application Design Non-Toys Product Solutions System Integrated Solutions Integrated Solutions IT Infrastructure Systems/ Storage/ Network & Security Professional Services Applic

  4. Slide 4: Key Highlights in FY2013 Interim

    { KEY HIGHLIGHTS IN FY2013 INTERIM } Six months ended 31 December (HK$’m) 1HFY13 1HFY12 % Change Revenue 2,123.3 1,519.4 39.7 Gross profit 114.7 88.9 29.0 Profit before tax 48.1 28.4 69.2 Net profit to Owners of the Company 33.7 22.8 47.5 Gross margins (%) 5.4 5.9 -8.5 EPS (HK cts) 15.9 10.9 45.9 NA

  5. Slide 5: Financial Highlights

    FINANCIAL HIGHLIGHTS

  6. Slide 6: Revenue | Six Month Period

    { REVENUE | Six Month Period } 2000 1500 HK$ [million] 2,123 1000 1,713 1,519 1,266 500 908 986 903 901 741 757 805 703 663 619 565 497 535 0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1HFY13

  7. Slide 7: Gross Profit | Six Month Period

    { GROSS PROFIT | Six Month Period } 100 HK$ [million] 114.7 50 94.2 85.4 88.9 101.3 88.1 83.9 86.5 75.1 69.6 71.1 69.0 56.3 56.2 45.9 44.3 48.1 0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1HFY13

  8. Slide 8: Gross Profit Margin | Six Month Period

    { GROSS PROFIT MARGIN | Six Month Period } 12 11 10 9 8 9.5 10.5 10.4 9.3 Percentage (%) 7 9.9 9.6 8.9 9.6 9.1 8.5 6 8.9 6.6 8.5 5 5.9 7.4 5.9 4 5.4 3 2 1 0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1HFY13

  9. Slide 9: Net Profit to Owners of the Company | Six Month Period

    { NET PROFIT TO OWNERS OF THE COMPANY | Six Month Period } 40 30 HK$ [million] 20 36.4 36.9 33.7 30.2 24.9 24.7 23.3 22.8 21.6 21.4 10 19.5 16.2 14.5 14.6 11.6 9.1 9.1 0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1HFY13

  10. Slide 10: Net Profit Margin | Six Month Period

    { NET PROFIT MARGIN | Six Month Period } 5 4 4.1 3 Percentage (%) 3.0 3.1 2 2.9 2.4 2.4 2.2 2.6 2.6 2.6 2.5 2.3 2.3 1.6 1.5 1 1.2 1.2 0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1HFY13

  11. Slide 11: Revenue by Business Segments | Six Month Period

    { REVENUE BY BUSINESS SEGMENTS | Six Month Period } 1400 1200 1000 HK$ (million) 800 600 400 200 0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1HFY13 1HConsumer 2H Electronic 1H Product 2H 1H 2HIT Infrastructure 1H 2H 1H Components 2H Distribution 1H 2H 1H IC Application 2H 1H Design 2H 1H HK$ (million)

  12. Slide 12: Dividend Payout History

    { DIVIDEND PAYOUT HISTORY } 16.0 14.0 12.0 7.1 10.0 8.1 HK (cents) 7.0 8.0 5.4 4.8 6.0 5.0 3.7 4.0 7.0 7.2 6.0 5.1 5.2 5.0 2.0 4.3 3.3 3.2 0.0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1HFY13 Interim+Special (if any) Final+Special (if any)

  13. Slide 13: Cumulated Dividend Paid

    { CUMULATED DIVIDEND PAID } IPO 20 Price 15.66 14.52 15 12.20 Singapore cents 10.26 10 8.78 6.81 4.48 5 2.74 1.31 0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1HFY13

  14. Slide 14: Dividend Payout History

    { DIVIDEND PAYOUT HISTORY } 2005 2006 2007 2008 2009 2010 2011 2012 1HFY13 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 Dividend 2,648 2,887 3,524 4,689 3,990 3,012 3,987 4,878 2,398 Dividend / S 1.31 cents S 1.43 cents S 1.74 cents S 2.32 cents S 1.98 cents S 1.48 cents S 1.94 cen

  15. Slide 15: Dividend Payout From 2005 to 2013 Interim

    { DIVIDEND PAYOUT | From 2005 to 2013 Interim } Total dividend payout from 2005 to Interim 2013 S$32,011,142 Aggregate dividend per share in the last 8.5 years S$0.1566 Current share price S$0.3150 Total dividend paid per share to current share price 49.7% IPO share price S$0.2000 Total dividend pai

  16. Slide 16: Cumulated Net Profit & Dividend Paid Since Listing

    { CUMULATED NET PROFIT & DIVIDEND PAID SINCE LISTING } 370,500 350,000 336,802 300,000 277,105 Cumulated Net Profit 250,000 225,506 HK$'000 200,000 191,703 Cumulated Dividend Paid 179,375 164,174 159,352 150,000 134,210 109,523 100,000 98,018 92,814 71,306 56,901 50,000 44,642 26,080 26,260 12,120 0

  17. Slide 17: Key Indicators

    { KEY INDICATORS } 2008 2009 2010 2011 2012 1HFY13 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Net Asset 238,298 249,905 299,579 382,603 456,390 485,926 Value YOY 28.9% 4.9% 19.9% 27.7% 19.3% 6.5% increment Increment since listing N/A N/A N/A N/A N/A 256.4% in 2005 Earnings per HK$0.30 / HK$0.16

  18. Slide 18: 5.5 Consecutive Years Financial Summary

    { 5.5 CONSECUTIVE YEARS FINANCIAL SUMMARY } FY2008 FY2009 FY2010 FY2011 FY2012 1HFY13 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Revenue 1,893,938 1,566,262 1,562,157 2,167,430 3,232,279 2,123,296 Gross profit 182,340 142,665 144,054 169,336 190,227 114,671 Profit before tax 73,754 36,429 42,37

  19. Slide 19: 5.5 Consecutive Years Financial Summary

    { 5.5 CONSECUTIVE YEARS FINANCIAL SUMMARY } FY2008 FY2009 FY2010 FY2011 FY2012 1HFY13 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Non-current assets 58,162 81,582 131,829 224,862 286,749 287,361 Current assets 644,139 368,193 449,974 529,615 609,708 887,589 Current liabilities 458,910 194,074 27

  20. Slide 20: Our Business

    i BR KARIN GROUP

  21. Slide 21: Investment Merits

    { INVESTMENT MERITS } Strong profit track record: Profitable for the last 36 years, even during the financial crises of 1997 and 2009 Regular and attractive dividend payout: 93% of IPO proceeds paid back to public shareholders from 2005 to date Sound management philosophy: Good risk and financial co

  22. Slide 22: Growth Strategies

    { GROWTH STRATEGIES } FUTURE GROWTH • Expansion of product and service ranges horizontally and vertically • Exploit recession-proof businesses such as energy Improve saving and environmental protection Profit Margins • Development in new industries and industries not yet covered in extended market r

  23. Slide 23: Future Direction

    i BR KARIN GROUP FUTURE DIRECTION

  24. Slide 24: Karin's Objectives

    { KARIN’S OBJECTIVES } Achieve sustainable double- Keep growing our digit growth in both turnover marketshare in our 2 core and profitability business segments Reward shareholders with Become a high performance distributor and relative high dividend solutions provider in the payout ratio respective

  25. Slide 25: Trends & Future Focus

    { TRENDS & FUTURE FOCUS } • Home surveillance security system • Power-saving, slim, see-through, Components Display technology shift higher contrast ratio, wide operating Distribution from TFT to OLED temperature range • Used in Smartphone, Metering, Industrial Control. • Environmental / New Energy

  26. Slide 26: Improve Profit Margins

    { IMPROVE PROFIT MARGINS }  Stringent cost controls  Offer services with higher margins  Cable : Electrical control cables branded by KARIN  Strengthening of IC Application Design and IT Services : Business units enhancing products with higher margins through IP and service incremental

  27. Slide 27: Improve Human Capital & Company Value

    { IMPROVE HUMAN CAPITAL & COMPANY VALUE }  Promote skill-set development among staff  Introduce staff achievement awards for professionalism, skill- sets, and technology  Upgrade in-house IT infrastructure to promote synergy building among business units  Automated eWorkflow  Group Intranet  E

  28. Slide 28: Thank You

    Thank You wbaoe

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