Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Aztech Group — FY2008 Earnings Presentation
34 slides from Singapore Exchange's earnings presentation, Feb 25, 2009
Slide 1: 4Q & FY2008 Financial Results
4Q & FY2008 Financial Results 25 February 2009
Slide 2: Aztech
Aztech ee Aztech AzUnited AzMarine Electronics Materials Supply Marine Logistics | = & Supply of _ _. Owner, Sf aaiaeoh & Management construction building materials of tugs & barges _. Provide external offshore chartering towing & transportation xDSL Modem/Router, Residential Gateway, Wireless Le Pr
Slide 3: Contents
Contents: Overview Financial Review Sectors Update Corporate Update Outlook
Slide 4: Overview
Overview Financial Review Sectors Update Corporate Update Outlook
Slide 5: Overview
Overview Financials: Total revenue of S$276.45 million Total profit of S$12.23 million Strengths: Multi-disciplined corporation involved in the following core businesses: - Electronics - Materials Supply - Marine Logistics Diversification strategy generates revenue stream across various business sec
Slide 6: Financial Review
Overview Financial Review Sectors Update Corporate Update Outlook
Slide 7: Full Year Turnover
Full Year Turnover Materials Supply (S$’m) 300 276.45 268.31 S$23.46m 250 239.00 200 178.58 152.14 150 100 50 0 2004 2005 2006 2007 2008
Slide 8: Full Year Net Profit
Full Year Net Profit (S$’m) 25 20.04 18.18* 20 15 12.23* 10.13 10 6.43 5 0 2004 2005 2006 2007 2008 * Note: • FY2007 - net revaluation gain of S$2.5m on investment properties. • FY2008 - net revaluation loss of S$1.7m on investment properties. • If discounting these items, the profit after tax for F
Slide 9: Full Year Financial Highlights
Full Year Financial Highlights FY08 FY07 Change (S$'m) (S$'m) (%) Turnover 276.45 268.31 3.0% Including: Electronics 252.99 268.31 (5.7%) Materials Supply 23.46 n.m. Gross Profit 40.48 46.33 (12.6%) Gross Profit Margin 14.6% 17.3% (2.7%) Net Profit After Tax 12.23 18.18 (32.7%) Net Margin (%) 4.4% 6
Slide 10: Quarter Turnover
Quarter Turnover Materials Supply (S$’m) 90 83.2 80 74.9 71.1 70 67.5 69.0 S$9.77m 61.8 61.5 60 S$1.48m 55.8 S$12.22m 50 40 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008
Slide 11: Quarter Net Profit
Quarter Net Profit (S$’m) 6 5.6 5.2 5 4 3.8 3.9* 3.6 3.1 2.9 3 2.4* 2 1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 * Note: • 4Q 2007 - net revaluation gain of S$2.5m on investment properties. • 4Q 2008 - net revaluation loss of S$0.8m on investment properties. • If discounting these items, the profit after
Slide 12: Quarter Financial Highlights
Quarter Financial Highlights 4QFY08 4QFY07 Change (S$'m) (S$'m) (%) Turnover 71.10 83.18 (14.5%) Including: Electronics 58.88 83.18 (29.2%) Materials Supply 12.22 n.m. Gross Profit 9.54 11.36 (16.0%) Gross Profit Margin 13.4% 13.7% (0.3%) Net Profit After Tax 2.43 5.56 (56.3%)
Slide 13: Balance Sheet Highlight
Balance Sheet Highlight FY08 FY07 Change (S$'m) (S$'m) (%) Current Assets 118.64 120.10 (1.2%) >>Including cash & bank balance 37.65 36.18 4.1% Currrent Liabilities 76.96 70.02 9.9% Working Capital 41.68 50.08 (16.8%) Non-Current Assets 81.55 48.49 68.2% Non-Current Liabilities 28.34 8.92 217.8% Tot
Slide 14: Key Indicators
Key Indicators FY08 FY07 Change Debtors (S$'m) 36.1 44.2 (18.3%) Debtor turnover (Day) 53 63 (10 days) Creditors (S$'m) 24.5 37.3 (34.3%) Creditors turnover (Day) 54 68 (14 days) Inventory (S$'m) 33.7 36.1 (6.6%) Inventory turnover (Day) 61 67 (6 days) Capital Expenditure (S$'m) 40.6 16.5 146.1% Cur
Slide 15: Capital Expenditure
Capital Expenditure FY08 FY07 (S$'m) (S$'m) Electronics Shenzhen office (FY2008: Tax paym ent) 0.3 8.9 Costs of SMT accessories 0.1 3.8 Test equipment 0.1 2.0 Other factory equipment 0.3 1.4 Other office equipment 0.3 0.4 Sub-total of Electronics 1.1 16.5 Marine Purchase of vessels 39.3 Marine Equip
Slide 16: Cash Flow
Cash Flow FY08 FY07 Change (S$'m) (S$'m) (%) Profit before income tax 12.62 21.22 (40.5%) Depreciation & amortisation 10.24 8.49 20.6% Interest & tax paid (4.32) (3.02) 43.0% Others 0.01 2.03 (99.5%) Net cash from operating activities 18.55 28.72 (35.4%) * Note: Others include the changes in working
Slide 17: Turnover by Business and Region
Turnover by Business and Region By Business Segments By Region Electronics Materials Supply Asia Pacific Others Europe 20% 91% 9% 32% 7% North & South America 41% Turnover by business (S$'m) % Turnover by region (S$'m) % Electronics 252.99 91% North & South America 111.49 41% Materials Supply 23.46
Slide 18: Dividends Pay-out
Dividends Pay-out (cents) 2.00 2.0 1.75 1.50 1.5 1.0 0.5 0.5 0.25 0 2004 2005 2006 2007 2008 * Note: • FY2008 dividend: - Final dividend 1.5 cents - Interim dividend 0.5 cents already paid on 28 August 2008
Slide 19: Sectors Update
Overview Financial Review Sectors Update Corporate Update Outlook
Slide 20: Aztech
. Aztech
Slide 21: Aztech New Products
Aztech New Products 4-Port ADSL2+ / 4-Port Wireless 802.11n Router plus VoIP / Wireless 802.11n Gateway HSPA Support for 3.5G Mobile Broadband DSL1205FGU(L) HW550-3G DSL1205FGU(L)
Slide 22: Electronics Business
Electronics Business Product Focus: xDSL will remain a core contributor HomePlug/Powerline continues to be widely accepted as the choice for Home Networking especially in IPTV application FY09 will see continuous shipment to USA leading telco for ADSL modem contract secured since Aug 07. (3.8 millio
Slide 23: Electronics Business
Electronics Business Operation & New Customers: Continue to strive for efficiency in plant operations to get best quality / cost performance to improve profit margin. Secured S$292,000 funded by SIIRD to facilitate the R&D of new product - SIIRD (Singapore-Israel Industrial R&D) is a co-operation pr
Slide 24: Electronics Business
Electronics Business Targeting emerging countries on Broadband & Networking products:
Slide 25: Aztech
Aztech www.aztech-group.com
Slide 26: Az United
Az United Operational Update: Awarded S$253 million contract in February 2008 - Delivered S$23 million in 2008 Registered as highest Singapore Building Construction Authority (BCA)’s L6 grading for tender projects Forward Strategies: To complete current S$253 million contract Secure new contracts Co
Slide 27: Az Marine
Az Marine Ocean-going tugs Operational Update: Total fleet of 9 tugboats and 6 barges Expanded into ship chandling, agency services and tugboat services (ship assist and escort) Forward Strategies: Continue to strive to improve and expand its current logistics services To recruit additional manpower
Slide 28: Corporate Update
Overview Financial Review Sectors Update Corporate Update Outlook
Slide 29: 2008 Corporate Brand Sponsorship
2008 Corporate Brand Sponsorship Singapore Biathlon – Feb 2008 RUN @ NUS – Apr 2008 Republic Polytechnic Entrepreneurship Challenge – Nov 2008
Slide 30: 2008 Corporate Social Responsibility
2008 Corporate Social Responsibility Children’s Society “A Walk For Our Children” Donation relief efforts for Cyclone Nargis – May 2008 – 27 Sep 2008 Donation relief efforts for Sichuan Earthquake – May 2008
Slide 31: Outlook
Overview Financial Review Sectors Update Corporate Updates Outlook
Slide 32: Outlook
Outlook Challenges & Opportunities: Global economy remains uncertain; it possess both challenges and opportunities for the Group. Key customers of the electronics sector maintain a cautious outlook of their business climate and require shorter lead-time for delivery With the shakeup in the electroni
Slide 33: Outlook
Outlook Strategies adopted by the Group: Aztech - Electronics to focus on leading telcos in emerging markets where there are growing demands in broadband & networking products Aztech - Electronics to increase operational efficiency Az United to target new projects to boost revenue Az Marine vessels
Slide 34: Thank You
Thank You Winner of Most Transparent Company by SIAS 2006, 2007 & 2008 Winner of Best Investor Relations by Singapore Corporate Awards 2007 & 2008 For more information, please visit www.aztech-group.com Investor Relations: Pavani Nagarajah pavanin@aztech.com DID: +65 6594 2180