Serial System Ltd · SGX:S69

Serial System — Non-Deal Roadshow (September 2011)

47 slides from Serial System's roadshow presentation, September 2011

Slide 1: Serial System Ltd Road Show in Taiwan
Serial System Ltd Road Show in Taiwan September 2011 www.serialsystem.com © Serial System Ltd 2011 / Page 1
Slide 2: Outline
Outline  Corporate Overview  Business Highlights Our Core Business Other Businesses  Financial Highlights  Taiwan Depository Receipts  Investment Merits Vision  Corporate Social To be the leading electronic component Responsibilities distribution partner, known for our dynamic demand creation
Slide 4: Serial System Ltd company history and business
Serial System Ltd started as a sole proprietorship in 1988, distributing electronic components in Singapore. The company was incorporated as a private limited entity in April 1992 and listed on SESDAQ in 1997. Subsequently on 10 July 2000, Serial System Ltd was listed on the main board of the Singap
Slide 5: Our Mission and Philosophy
Our Mission To be a leading value-added total electronics distributor in Asia Pacific who forges strong relationships with our suppliers and customers by ensuring operational and service excellence, superior customer satisfaction, and outstanding financial performance. Our Philosophy - Strong team s
Slide 6: SERIAL listed in 1997
The largest electronic component distributor listed on SGX Key markets Total Shares 821 million HY 2011 Free Float 47% Greater China 55% Current Share South Korea 24% Price S$0.146 South East Asia PE 6.70 and India 15% Taiwan 6% SERIAL listed in One of the 1997 largest Asian Rank among geographical
Slide 7: Corporate milestones 1988-2009
1988 Incorporated Serial System as a sole 2005 Set up joint venture company, Serial Microelectronics Inc proprietorship to expand into Taiwan 1992 Incorporated Serial System as a private limited 2006 Incorporated 100% owned Serial Microelectronics company (Shenzhen) Co., Ltd 1994 Invested 51% intere
Slide 8: Group structure as at September 2011
As at September 2011 91% Serial Microelectronics 100% Serial Microelectronics (Shenzhen) Co.,Ltd (HK) Limited (Hong Kong) (China) 100% Serial Microelectronics Pte Ltd 98.2% 67.13% Serial Microelectronics Korea Bona Technology Inc. (Singapore) (Research & Development) Limited (South Korea) (South Kor
Slide 9: Board of Directors and management
Electronic Components Derek Goh Distribution Executive Chairman/ Group CEO Ng Teck Cheng (Serial System Ltd) Senior Vice President Operation & Asset Management (Serial Microelectronics Pte Ltd) Peter Ho Board of Directors Other Businesses Sean Goh Executive Director Senior Vice President (Serial Sys
Slide 10: Our Core Business: Electronic Components Distribution
Our Core Business Electronic Components Distribution www.serialsystem.com © Serial System Ltd 2011 / Page 10
Slide 11: Value-add between suppliers and customers
Suppliers Serial System Customers (Distributor) Demand Creation • Extensive reach • Access to broad • Access to 2nd & 3rd tier  Technical support technologies through strong customers which they find and wide product line cards difficult to work with Risk Management • Shorter time-to-market for • M
Slide 13: Strong Product Line Cards Serving Wide Range Of Industries
Strong Product Line Cards Serving Wide Range Of Industries …Adds up to 50 + Franchised Suppliers in the Serial Group :: Confidential :: © Serial System Ltd 2011 / Page 13
Slide 14: Customers spanning across various Industries
Customers spanning across various Industries Consumer Electronics Automotive Cluster DVD Recorder & Player TV: LCD/Digital Refrigerator Digital Video Camera Car Access System (RFID) Washing Machine Aftermarket Portable Navigation MP3 player Digital Clock Connectivity Devices PDA Wireless headset Dig
Slide 15: Customers spanning across various Industries
Customers spanning across various Industries Glass Break Detector Surveillance IP Power Over Ethernet Smoke Detector Camera Surveillance IP Camera Digital Video Recorder Fingerprint Biometrics :: Confidential :: © Serial System Ltd 2010 / Page 15
Slide 16: Customers spanning across various Industries
Customers spanning across various Industries Industrial Telecommunication Industry Medical Devices Industry OEM/EMS/Traders We sell our products to OEM/ EMS customers who on-sell them to other customers :: Confidential :: © Serial System Ltd 2010 / Page 16
Slide 18: Number 1 distributor rankings with suppliers
Number 1 TI Distributor Asia for Demand Creation Highest Growth Distributor for ADI Korea Highest Growth Distributor for On Semi China Number 1 Distributor for TI Korea Number 1 Distributor for Avago South Asia Number 1 Distributor for CSR Korea Number 1 Distributor for Micron Korea
Slide 19: Market leader position and revenue growth
• Maintain market leader position in Korea and Greater China • Focus on Growing Low Base Businesses in Taiwan and India market • Maintain Healthy Growth in South East Asia • Consider adding Japan to the Asian equation HY2011 Total Revenue S$396.3 million FY2001 Total Revenue FY2010 Total Revenue S$5
Slide 20: Extensive Distribution Network
Extensive Distribution Network Total 54 Sales Offices & > 680 employees in Asia Pacific China (29) Additions in 1H11 North China East China South China China: Ningbo, Zhongshan Beijing Shanghai Shenzhen Tianjin Suzhou Xiamen South Korea South Korea: Gwang Ju, Daegu Fuzhou Qingdao Hangzhou (4) Taiwan
Slide 21: Supply Chain Excellence
Supply Chain Excellence 7 Product Distribution centers Beijing Korea Warehousing and Logistics support Shenzhen ERP and Advanced Planning Tools Shanghai Hong Kong Integrated Materials Supply Chain Solution Same SAP platform across the Group Taiwan Singapore :: Confidential :: © Serial System Ltd 201
Slide 23: Media / Hospitality Solutions and Distribution
Media / Hospitality Solutions Distribution Serial Multivision Pte Ltd’s (SMV) core businesses are in Digital Out- of-Home (DOOH) Advertising, Multimedia Solutions and Venue Management Services (VMS) • Currently there are two LED advertising locations in Singapore, namely at Grand Park Orchard@Knight
Slide 24: Contract Sterilization Services Pte Ltd
 Contract Sterilization Services Pte Ltd ‘s (CSS) principal businesses are the assembly, sterilisation and distribution of a medical device called the heart-lung pack for use in relation to cardiopulmonary bypass procedures  The product is sold under its own in-house brand name “CSS”  Customers f
Slide 25: Bull Will Co., Ltd (Taiwan Stock Code 6259)
Bull Will Co., Ltd (Taiwan Stock Code 6259) (Components Manufacturing & Distribution) Bull Will is the manufacturer of automotive and customised magnetic, passive, electro-mechanical, and discrete components widely used in automotive, industrial and consumer electronic products. In 2011, Bull Will b
Slide 27: Revenue (S$ million)
Revenue (S$' million) 800.0 746.2 700.0 556.5 600.0 510.6 476.2 500.0 396.3 364.4 371.0 400.0 324.8 313.6 303.7 300.0 7% 165.5 200.0 77.9 100.0 ‐ FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 1H10 1H11 Note: 1H11 results are unaudited © Serial System Ltd 2011 / Page 27
Slide 28: Serial out-performing the Industry
Asia Pacific Semiconductor Revenue (US$' billion) Serial System Revenue (US$' million) 574 200.0 181.9 600 171.6 180.0 160 500 160.0 6% 123.5 124.0 381 140.0 116.5 119.6 354 7% 400 331 120.0 316 51% 265 100.0 300 228 80.0 19% 200 60.0 40.0 100 20.0 ‐ ‐ FY06 FY07 FY08 FY09 FY10 FY11F FY12F FY06 FY07
Slide 30: India Revenue
India Revenue US$' million 8.6 9.000 8.000 7.000 5.5 6.000 5.1 81% 4.3 4.4 5.000 3.1 56% 4.000 3.000 8% 61% 2.000 1.000 0.001 ‐ FY06 FY07 FY08 FY09 FY10 1H10 1H11 Note: 1H11 results are unaudited © Serial System Ltd 2011 / Page 30
Slide 32: Profit before tax
Include a S$7.1 m gain on disposal of the entire interests in a Taiwan listed company 116% 10% Note: 1H11 results are unaudited © Serial System Ltd 2011 / Page 32
Slide 33: Improving Net Profit & Net Profit Margin
Improving Net Profit & Net Profit Margin through economies of scale, staff productivity & operational excellence Impairment losses on trade debts (S$8.4 m) Note: 1H11 results are unaudited © Serial System Ltd 2011 / Page 33
Slide 35: Dividend payout every year
Dividend payout every year Note: 1H11 results are unaudited © Serial System Ltd 2011 / Page 35
Slide 37: Dividend Yield (%)
Two Dividend payout Dividend Yield (%) (Interim & Final) each year 4.0% 6.1% Special interim dividend of SGD 2.7 cent :- (1) Reward shareholders for their royalty and support over the years ( out of proceeds from 8.5% sale of a Taiwan listed Co. (2) Pass on S44 tax credits to shareholders by giving
Slide 39: Why TDR?
Issue size : 84 million new ordinary shares representing 28 million TDR on the basis of 3 new shares into 1 TDR : 10.2% of existing issued share capital and 9.3% of enlarged share capital Purposes of Funds : Working capital requirements : Strengthen the financial structure of the Company and improvi
Slide 41: Why Serial
 Robust revenue growth  Low PE/PB amongst distributors  High GP amongst distributors  Attractive dividend (Annual yield of 6-8%)  Strong foothold in Why South East Asia, Korea  Healthy balance sheet and Greater China Serial  Good corporate  Good potential in India governance and Taiwan © Ser
Slide 42: Operational Efficiency & Enhanced Risk Management
 New product lines and extension of existing lines  Organic growth from value-added M&A, new and existing product lines Revenue  Continued focus on lucrative markets, such as China, Growth Korea and Taiwan  Expansion in emerging markets, India and Vietnam Improve  Improved value-added designs a
Slide 43: Serial Strengths
Sustainable Good Sustainable & Resilient Serial Semiconductor Strategies Business + Model Strengths Growth in Asia Pacific Execution Continued Revenue Attractive Growth Dividend Yield + (Interim and Profitability Final Dividend) © Serial System Ltd 2011 / Page 43
Slide 44: Corporate Social Responsibility
Staff of Serial System Ltd distributing goody bags Serial System donated $50,000 to North East Serial System Ltd committed to donate a total of and red packets to the old folks at Tai Pei Old Community Development Council (CDC) for various $150,000 over three years to San Jiao Sheng Tang Folks Home
Slide 46: Forward looking statements
The presentation herein may contain forward looking statements by the management of Serial System Ltd (“Serial”) that pertain to expectations for financial performance of future periods versus past periods. Forward–looking statements involve certain risks and uncertainties because they relate to fut

Serial System — Non-Deal Roadshow (September 2011) on 6ix

Serial System — Non-Deal Roadshow (September 2011)

Slide 1: Serial System Ltd Road Show in Taiwan

Slide 2: Outline

Slide 3: Corporate Overview

Slide 4: Serial System Ltd company history and business

Slide 5: Our Mission and Philosophy

Slide 6: SERIAL listed in 1997

Slide 7: Corporate milestones 1988-2009

Slide 8: Group structure as at September 2011

Slide 9: Board of Directors and management

Slide 10: Our Core Business: Electronic Components Distribution

Slide 11: Value-add between suppliers and customers

Slide 12: Our Wide Range Of Products

Slide 13: Strong Product Line Cards Serving Wide Range Of Industries

Slide 14: Customers spanning across various Industries

Slide 15: Customers spanning across various Industries

Slide 16: Customers spanning across various Industries

Slide 17: © Serial System Ltd 2011 / Page 17

Slide 18: Number 1 distributor rankings with suppliers

Slide 19: Market leader position and revenue growth

Slide 20: Extensive Distribution Network

Slide 21: Supply Chain Excellence

Slide 22: Other Businesses

Slide 23: Media / Hospitality Solutions and Distribution

Slide 24: Contract Sterilization Services Pte Ltd

Slide 25: Bull Will Co., Ltd (Taiwan Stock Code 6259)

Slide 26: Financial Highlights

Slide 27: Revenue (S$ million)

Slide 28: Serial out-performing the Industry

Slide 29: 1H11 results by region

Slide 30: India Revenue

Slide 31: Financial results 1H11

Slide 32: Profit before tax

Slide 33: Improving Net Profit & Net Profit Margin

Slide 34: Balance sheet and financial position

Slide 35: Dividend payout every year

Slide 36: Financial ratios

Slide 37: Dividend Yield (%)

Slide 38: Taiwan Depository Receipts

Slide 39: Why TDR?

Slide 40: Investment Merits

Slide 41: Why Serial

Slide 42: Operational Efficiency & Enhanced Risk Management

Slide 43: Serial Strengths

Slide 44: Corporate Social Responsibility

Slide 45: :: Confidential :: © Serial System Ltd 2011 / Page 45

Slide 46: Forward looking statements

Slide 47: :: Confidential :: © Serial System Ltd 2011 / Page 47