Waves Corporation Ltd · PSX:WAVES
Waves — Waves Singer Pakistan — Corporate Update (November 2021)
24 slides from Waves's corporate update, Nov 16, 2021
Slide 1: Waves Singer Pakistan Limited Corporate Brief Session
WAVES SINGER PAKISTAN LIMITED CORPORATE BRIEF SESSION 16TH NOVEMBER 2021
Slide 2: Company Overview
Company Overview INFORMATION BRIEF 2
Slide 3: WSPL Overview
WSPL OVERVIEW Waves Singer Pakistan Limited (“Waves”) is the pioneer manufacturer of electronic appliances and white goods in Pakistan Singer’s history dates back to 1850, when Isaac Merritt Singer manufactured the first ever sewing machine. The Company first established presence in the Indian Sub c
Slide 4: Waves Singer Timeline
WAVES SINGER TIMELINE Singer Broadens its Received 1st Isaac Merit Cool portfolio and Singer Order from Singer Born Industries launches retail Acquired By Coca-Cola for In New York Incorporated stores with brand Current supply of (Waves name “Singer Plus”. Sponsors DF/Visi Cooler Brand) 1811 1853 19
Slide 5: Pakistan Appliance Market
PAKISTAN APPLIANCE MARKET Size: PKR 3 Bn Water Heater Size: PKR 4 Bn Water Dispensers Size: PKR 5 Bn Microwaves Size: PKR 8 Bn Washing Machine Size: PKR 15 Bn Deep Freezers Size: PKR 70 Bn Air Conditioners Size: PKR 95 Bn PKR 200 Bn Appliances PKR 200 Bn Refrigerator Electronics INFORMATION BRIEF 5
Slide 6: Product Range
PRODUCT RANGE Multi Brand Retail White Goods Deep Freezers • Refrigerator • Deep Freezer Refrigerator • Air Conditioner • Washing Machine • Microwave Oven Air Conditioner • Water Dispenser White Goods Gas Appliances Washing Machine • Cooking Range • Water Heater (Conventional + Instant) Microwave Ov
Slide 7: Corporate Sales
CORPORATE SALES Waves has the largest corporate clientele in the deep freezer segment INFORMATION BRIEF 7
Slide 8: Pakistan Deep Freezer Market
PAKISTAN DEEP FREEZER MARKET Deep Freezer Sales Market Share Varioline Others 300 300 300 9% 3% 289 280 Dawlance 270 10% Waves 265 32% 2021 PEL 18% Haier 28% FY15 FY16 FY17 FY18 FY19 FY20 FY21 P Waves Haier PEL Dawlance Waves is the Market Leader in Deep Freezer Market of Pakistan INFORMATION BRIEF
Slide 9: Pakistan Refrigerator Market
PAKISTAN REFRIGERATOR MARKET Appliance Penetration Rate Refrigerator Sales Market Share PEL 19% Australia & Japan FY15 FY16 FY17 FY18 FY19 FY20 FY21 1,825 1,800 North America Haier Orient 1,700 1,700 1,690 29% 9% 1,600 1,525 Western Europe Latin America 2021 Waves 7% Africa & Middle East Southeast A
Slide 10: Pakistan Air Conditioner Market
PAKISTAN AIR CONDITIONER MARKET AC Penetration Rate in Pakistan Air Conditioner Sales in Pakistan Market Share FY15 FY16 FY17 FY18 FY19 FY20 FY21 Waves Southeast Asia & China Others 1% R&I 3% 950 Australia & Japan 10% PEL 875 850 850 850 5% 800 North America Haier 725 Orient 23% Latin America 17% 20
Slide 11: Growth Strategy
GROWTH STRATEGY Significant competitive advantage in the home electronic appliances division in the form of diverse products across different categories Deep Freezer and Refrigerator segments are the primary revenue drivers Market leader in Deep Freezer segment with a substantial market share
Slide 12: Financial Summary
Financial Summary INFORMATION BRIEF 12
Slide 13: Financial Performance
FINANCIAL PERFORMANCE PKR million FY18 FY19 FY20 9 M 2021 Income Statement Net Sales 8,516 9,484 8,525 8,398 Gross Profit 2,278 2,629 1,844 1,908 Operating Profit 783 1,298 886 704 Finance Costs 431 868 880 509 Net Profit 382 378 127 371 Balance Sheet Property, Plant and Equipment 4,755 5,705 5,571
Slide 14: Key Ratios
KEY RATIOS Particulars FY18 FY19 FY20 Half Yearly FY21 Gross Margin 27% 28% 22% 23% Operating Profit Margin 9% 14% 10% 8% Net Margin 5% 4% 1% 4% Current Ratio 1.34 1.28 1.37 1.47 Leverage 0.33 0.43 0.44 0.37 PROFITABILITY MARGINS Current Ratio FY18 FY19 FY20 9 M 2021 28% 27% 9 M 2021 23% 22% FY20 14
Slide 15: New Factory Construction and Real Estate Development Plan
New Factory Construction and Real Estate Development Plan 15
Slide 16: New Factory Construction and Real Estate Development Plan
NEW FACTORY CONSTRUCTION AND REAL ESTATE DEVELOPMENT PLAN • 32 Acre Land already purchased, major construction contracts have been awarded and construction is in progress at a fast pace • Phase wise shifting during FY 22 in conjunction with production plan ensuring continuity of the operations • WBD
Slide 17: Relocation Rationale
RELOCATION RATIONALE • Improvements in product quality & design along with production process • New state of the art machinery will be imported and installed • Reduction in product costs by reducing wastages, labor costs, power costs, conversion costs etc. • Improve productivity and product quality
Slide 18: Real Estate Development Plan
REAL ESTATE DEVELOPMENT PLAN Direct Scheme by RMC REIT Scheme via SPV Real Estate Equity Raising Plan IPO of SPV Listing of SPV Direct Listing 18
Slide 19: Proposed Demerger
waves Q SINGER Proposed Demerger 19
Slide 20: Current Structure
CURRENT STRUCTURE Holding Company 100% Owned Subsidiaries Electronic Marketing Company Private Limited (EMCPL) Retail Business Waves Singer Pakistan Limited (WSPL) 139 Retail Outlets 100% Manufacturing Operations & Dealer Multi Brand Portfolio Business Fully operational ERP for cash, - Waves Brand i
Slide 21: Proposed Demerger of WSPL Appliances Business
PROPOSED DEMERGER OF WSPL APPLIANCES BUSINESS Home Appliance Business of WSPL to be carved out/demerged into: An SPV to be listed in PSX via IPO or Samin Textiles Limited – Already a listed company – After proposed demerger it will become a subsidiary of WSPL Will result in enhanced focus on Hom
Slide 22: Proposed Demerger Scheme
PROPOSED DEMERGER SCHEME WSPL WHALE Related Assets & Liabilities Demerger scheme shall be approved by High Court after obtaining relevant approvals from Company’s BOD, Shareholders and NOC’s from Secured Lenders 22
Slide 23: Proposed Structure
PROPOSED STRUCTURE Parent Company Subsidiaries Waves Home Appliances Limited (WHALE)- Listed Manufacturing Operations & Dealer Business Waves Singer Pakistan Limited (WSPL) Electronic Marketing Company Private Limited Parent Company (EMCPL)- Private Retail Business Waves Builders & Developers Limite
Slide 24: Thank You
waves Q SINGER Thank You | |_| 24
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