Venture Corporation Limited · SGX:V03
Venture — 1H 2020 Earnings Presentation
17 slides from Venture's earnings presentation, Aug 7, 2020
Slide 1: 2Q/1H 2020 Results Presentation
2Q/1H 2020 Results Presentation 7 August 2020
Slide 2: Results Highlights
Results Highlights 2Q 2020 net profit1 of S$70.2 million on revenue of S$692.7 million, translating to net margin of 10.1%. Sequentially, 2Q 2020 net profit grew 16.4%. 1H 2020 net profit of S$130.5 million on revenue of S$1,365.7 million, translating to net margin of 9.6%. Earnings per share2 of 44
Slide 3: Financial Performance Review
FINANCIAL PERFORMANCE REVIEW
Slide 4: 2Q 2020 Results – QoQ Comparison
2Q 2020 Results – QoQ Comparison (S$’m) 2Q 2020 1Q 2020 % Revenue 692.7 673.0 2.9 Profit before tax 81.2 69.9 16.1 PBT Margin (%) 11.7 10.4 Income tax expense (11.0) (9.6) 14.7 Effective Tax Rate (%) 13.5 13.7 Net profit 70.2 60.3 16.4 Net Margin (%) 10.1 9.0 EPS (cents) 24.2 20.8 16.3 While Covid-1
Slide 5: 2020 Sequential Quarters Summary
2020 Sequential Quarters Summary (S$’m) 1Q 2020 2Q 2020 1H 2020 Revenue 673.0 692.7 1,365.7 Profit before tax 69.9 81.2 151.1 PBT Margin (%) 10.4 11.7 11.1 Income tax expense (9.6) (11.0) (20.5) Effective Tax Rate (%) 13.7 13.5 13.6 Net profit 60.3 70.2 130.5 Net Margin (%) 9.0 10.1 9.6 EPS (cents)
Slide 6: 1H 2020 Results – YoY Comparison
1H 2020 Results – YoY Comparison (S$’m) 1H 2020 1H 2019 % Revenue 1,365.7 1,832.2 (25.5) Profit before tax 151.1 211.6 (28.6) PBT Margin (%) 11.1 11.5 Income tax expense (20.5) (29.8) (31.3) Effective Tax Rate (%) 13.6 14.1 Net profit 130.5 181.7 (28.2) Net Margin (%) 9.6 9.9 EPS (cents) 44.9 62.9 (
Slide 7: Financial Position and Cash Flow
FINANCIAL POSITION AND CASH FLOW
Slide 8: Balance Sheet Summary
Balance Sheet Summary 30 June 31 December (S$’m) 2020 2019 Cash & Bank Balances 834.1 714.5 Net Current Assets 1,632.6 1,590.0 Net Non-current Assets 902.4 908.6 Total Net Assets 2,535.0 2,498.6 Accumulated Profits 1,760.0 1,774.6 Share Capital & Reserves 772.5 721.6 Non-Controlling Interests 2.5 2.
Slide 9: Comparison of Net Cash Position
Comparison of Net Cash Position 30 June 31 December 30 June (S$’m) 2020 2019 2019 Cash & Bank 834.1 714.5 761.8 Balances Total Loans (1.1) (1.1) (1.6) Net Cash 833.0 713.4 760.2 The Group continues to maintain a healthy net cash position of S$833.0 million as at 30 June 2020. Net cash increased by S
Slide 10: Comparison of Working Capital
Comparison of Working Capital 30 June 31 December 30 June (S$’m) 2020 2019 2019 Trade Receivables 624.8 898.9 691.9 Trade Payables (416.7) (490.3) (475.4) AR – AP 208.1 408.6 216.5 Inventories 798.6 706.2 749.7 Working Capital 1,006.8 1,114.7 966.2 Working Capital position kept to a relatively simil
Slide 11: Comparison of Free Cash Flow
Comparison of Free Cash Flow (S$’m) 1H 2020 1H 2019 Operating profit before working capital 167.6 223.3 changes Cash generated from operations 271.3 235.6 Less Capex (5.6) (15.4) Free cash flow 265.7 220.2 Cash generated from operations improved by S$35.6 million (+15.1%) year-on-year. Free cash flo
Slide 12: Declared Interim Dividend
DECLARED INTERIM DIVIDEND
Slide 13: Interim Dividend of S$0.25 per share
Interim Dividend of S$0.25 per share Key Dates Book Closure Date: 5pm, 7 September 2020 Payment Date: 18 September 2020 0.70 0.70 Total DPS 0.60 (S$) 0.50 0.50 0.50 Final Dividend Interim Dividend 0.20 0.20 0.25 FY16 FY17 FY18 FY19 1H20 The Board of Directors has declared an interim dividend of S$0.
Slide 14: Outlook
OUTLOOK ee
Slide 15: Outlook
Outlook Venture’s sequential recovery in 2Q 2020 was enabled by the effective teamwork, resourcefulness and resiliency of its people. The teams received deep appreciation from several customers and partners, with one of them lauding Venture as their “Heroes in Production”. Over the past few months,
Slide 16: Note on forward-looking statements
Note on forward-looking statements This presentation may contain certain forward-looking statements including, but not limited to, statements as to future operating results and plans. These statements are based on our assumptions and estimates and are subject to known and unknown risks and uncertain
Slide 17: Thank You
WW VENTURE Thank You