Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Broadway Industrial Group — H1 2021 Earnings Presentation
26 slides from Singapore Exchange's earnings presentation, 2021
Slide 1: Broadway Industrial Group Limited 1H2021 Results Presentation
Broadway Industrial Group Limited 1H2021 Results Presentation
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements. The actual future performance and results of Broadway Industrial Group Limited (the “Company”) and its subsidiaries (together the “Group”) however, may be materially different from those expressed or implied in these forward- looki
Slide 3: Contents
Contents Business Updates Tan Choon Hoong Chief Executive Officer Financial Updates Tiong Chi Sieng Chief Financial Officer Key Investment Highlights Lew Syn Pau Chairman Q&A 3
Slide 4: Business Updates
Business Updates Corporate Profile HDD Business Robotics Business 1H2021 Business Highlights 4
Slide 5: Corporate Profile
Corporate Profile HDD Business One of the leaders in the manufacture of precision components and assemblies Key provider of actuator arms, assemblies and other related parts mainly for the global hard disk drive (HDD) industry Headquartered in Singapore with 4 manufacturing facilities in China and T
Slide 6: 1H2021 Business Highlights
1H2021 Business Highlights Launch of glass façade cleaning robot in China in 1H2021 NEW PRODUCT LAUNCH 4% increase (1H2020 to 1H2021)1 Driven by growth in demand for Enterprise HDD INCREASED HDD SHIPMENTS Healthy 1H 2021 Performance Net profit: S$7.83 million (↑ 15.8%) TOP & BOTTOM-LINE GROWTH IN 1H
Slide 7: HDD Business
HDD Business About the Products 4-Pronged Strategy Yields Results HDD Outlook 7
Slide 8: About the Products
About the Products Actuator Arm Actuator Arm Actuator Arm Pivot-bearing Hard Disk Drive Machining Coil Assembly Flex-circuit Assembly 8
Slide 9: 4-Pronged Strategy Yields Results
4-Pronged Strategy Yields Results Management Operational Restructuring Improvements • Eliminated redundancy • Labour cost reduction • Injected new management • Scrap cost reduction • Optimised competency • Quality improvement • Introduced new corporate • Early engagement on new values programmes TUR
Slide 10: HDD Outlook – Near-Term
HDD Outlook – Near-Term HDD demand expected to remain strong in 2H2021 • Post-pandemic macroeconomic recovery expected to provide additional tailwinds for the storage device market for the remainder of 20212 • Industry expectations of a transition away from declining end-markets to a period of finan
Slide 11: HDD Outlook – Long-Term
HDD Outlook – Long-Term HDDs expected to dominate and maintain market share Cloud Cloud Data Superior Price Poised for Exabyte market Centres and Performance growth HDDs currently HDDs represent the HDDs offer a better HDDs are well- dominate the cloud predominant storage combination of price positi
Slide 12: HDD Outlook – Long-Term
HDD Outlook – Long-Term Total Computing/CE forecast to decline by CAGR of 9.2% from 2020 to 2025 Total Enterprise forecast to grow by CAGR of 9.7% from 2020 to 2025 Total Revenue forecast to grow by CAGR of 10.3% from 2020 to 2025 Source: TRENDFOCUS, 10 August 2021 12
Slide 13: Robotics Business
Robotics Business About the Product Updates Market Potential Market Opportunity 13
Slide 14: About the Product
About the Product Leveraging BIGL’s supply chain and manufacturing competencies to enhance robot design and efficiencies for the cleaning service industry, encompassing office and commercial building facades, other architectural glass curtain walls and solar panels Applying big data technology in ro
Slide 15: Updates
Updates Partnered with Acquired a 55% equity manufacturer for Continue to increase stake in BAB in January assembly of glass façade market awareness and 2020 cleaning robots presence in China Commercialised glass Ongoing improvements façade cleaning robot in and enhancements to China in 1H2021 robot
Slide 16: Market Potential
Market Potential Global facade market size expected to grow at a compound annual growth rate of 6.4% from 2021 to 2028.5 Asia Pacific accounting for the largest share of more than 35.0% in 2020. Increasing construction of new commercial and industrial buildings in countries, including China, India,
Slide 17: Market Opportunity
Market Opportunity AI Cleaning Robot • AI cleaning robot is the ideal substitute • Smart cleaning: Efficient and autonomous • Significantly reduces safety risk Manual Cleaning • Able to work longer hours • High risk • More stringent safety requirements • Lesser people willing to engage in the profes
Slide 18: Financial Updates
Financial Updates 1H2021 Financial Highlights Group Financial Trend Balance Sheet Trend Financial Indicators 2H2021 Outlook 18
Slide 19: 1H2021 Financial Highlights
1H2021 Financial Highlights 10.6% 15.7% S$211.4M S$7.8M 3.7% Revenue NPAT* Net Margin S$211.4M S$9.0M 4.3% HDD HDD HDD Revenue NPAT* Net Margin 15.7% 1.67cts 0.5cts DPS 19.8% EPS Interim Dividend ROE** * NPAT refers to net profit after tax and minority interest. 19 ** Annualised ROE
Slide 20: Group Financial Trend
Group Financial Trend Three consecutive halves of profitability - product mix shift, supply chain efficiency, structural cost reduction, asset utilization and working capital management 20
Slide 21: Balance Sheet Trend
Balance Sheet Trend Strengthening balance sheet, valuation of Shenzhen property significantly exceeds book value (Valuation range: S$45 – S$50 million) S$'MIL Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Cash & Bank Balances 11.1 8.7 16.0 29.0 24.7 Net Current Assets 2.2 (26.2) (18.1) 9.0 17.7 Net Non-Current
Slide 22: Financial Indicators
Financial Indicators Improving indices driven by momentum of solid financial performance despite challenging operating environment S$'MIL (where applicable) Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Working Capital Ratio (Current Assets / Current Liabilities) 1.02 0.79 0.84 1.08 1.15 Current Assets 97.3 95
Slide 23: 2H2021 Outlook
2H2021 Outlook HDD Business • Near term demand for HDD products remains strong • Rising COVID-19 cases in Southeast Asian countries may cause supply chain constraint • Mitigation efforts undertaken throughout the entire supply chain • Focus on executing efficiency, productivity and cost improvement
Slide 24: Key Investment Highlights
Key Investment Highlights 24
Slide 25: Key Investment Highlights
Key Investment Highlights HDD Business • Positioned to take advantage of the growing high value, high performance enterprise segment of HDDs • 4-pronged turnaround strategy continues to yield results o Management restructuring; operational improvements; improved factory footprint; and supply chain o
Slide 26: Thank You
Thank You For enquiries, please contact: Investor Relations Email: ir@bigl.com.sg
Broadway Industrial Group — H1 2021 Earnings Presentation on 6ix