MegaChem Ltd. · SGX:5DS
MegaChem — H1 2015 Earnings Presentation
28 slides from MegaChem's earnings presentation, August 2015
Slide 1: Results Presentation For Analyst Briefing First Half Year ended 30 June 2015
Results Presentation For Analyst Briefing First Half Year ended 30 June 2015
Slide 2: Financial Strength for Business Excellence: Performance Review
Financial Strength for Business Excellence Performance Review
Slide 3: Results Snapshot
Results Snapshot +3.5% Sales +4.3% Quantity of chemicals sold +19.3% EBITDA +30.7% Net profit after tax +31.6% Earnings per share Results exceeded expectation
Slide 4: Profit & Loss Statement
Profit & Loss Statement 1H15 vs 1H15 vs S$’mil 1H 14 2H 14 1H 15 Var % Var % 1H14 2H14 Sales 55.6 60.3 57.6 1.9 3.5% (2.7) (4.5%) Gross Profit 11.0 12.5 12.8 1.8 16.6% 0.3 2.5% Gross Profit Margin 19.7% 20.7% 22.2% 2.5% pts 1.5% pts Expenses 10.0 10.7 11.3 1.3 13.1% 0.6 5.6% Expenses/Sales % 17.9% 1
Slide 5: Half-year Sales
Sales Half-year Sales(S$’mil) 1H 2H 60.3 57.3 57.6 56.8 55.6 54.0 52.2 51.9 49.8 49.6 45.2 2010 2011 2012 2013 2014 2015 1H 15 higher than 1H 14 but fell from record sales in 2H 14.
Slide 6: Sales by Geographic Markets
Sales by Geographic Markets 45,000 40,000 35,000 30,000 1H 14 S$’000 25,000 2H 14 20,000 1H 15 15,000 10,000 5,000 - ASEAN N Asia America Europe S Asia ME Australia 1H 15 vs 1H 14: Most markets were higher except ASEAN, America and Australia. 1H 15 vs 2H 14: Lower sales in Europe and America mor
Slide 7: Sales breakdown by Business Activity
Sales breakdown by Business Activity Distribution Manufacturing 58.5 54.0 55.9 S$’mil 1.6 1.8 1.7 1H 14 2H 14 1H 15 Growth in year-on-year sales came mainly from Distribution activity while sales from Manufacturing activities were relatively flat.
Slide 8: Gross Profit
Gross Profit 14.0 24% 12.5 12.8 12.0 11.0 22% 22.2% 10.0 20.7% 20% 8.0 19.7% 6.0 18% 4.0 16% 2.0 0.0 14% 1H 14 2H 14 1H 15 Gross Profit(S$'mil) GP Margin % Higher GP margins in 1H 15 due to better margins from ASEAN region.
Slide 9: Expenses
Expenses • Total expenses increased by S$1.3 mil or 13.1% to S$11.3 mil. Var S$’000 1H 14 1H 15 Var % inc/(dec) Staff Cost 5,617 6,277 660 11.7% Increase in salary FX losses 73 389 316 434.3% Currency volatility Non-recurring services fees in Professional Fees 326 270 (56) (17.2%) 1H 14 Increase in
Slide 10: Other Income
Other Income • Total other income increased S$65,000 to S$198,000. Var S$’000 1H 14 1H 15 Var % inc/(dec) Bad Debt recovered 51 51 - - Change in fair value of financial asset-FX contracts - 76 76 100.0% Change in fair value of financial assets-equity 5 - (5) (100.0%) Grant Income 41 33 (7) (17.7%)
Slide 11: Share of Associate's Profit
Share of Associate’s Profit Half Year (S$’mil) 1H 2H 1.1 0.7 0.6 0.6 0.6 0.5 0.5 0.5 0.5 0.4 0.3 2010 2011 2012 2013 2014 2015 Thai economy has yet to see a strong recovery.
Slide 12: Net Profit After Tax
Net Profit After Tax NPAT (S$’mil) 1H 2H 3.0 2.8 2.0 2.0 2.1 2.1 1.5 1.5 1.3 1.3 1.1 2010 2011 2012 2013 2014 2015 1H 15 vs 1H 14: Higher sales and GP led to higher NPAT. 1H 15 vs 2H 14: Fall in NPAT mainly due to lower contribution from associate and FX losses.
Slide 13: NPBT/EBITDA
NPBT/EBITDA 4 29% 3.5 19% 43% 3 27% 2.5 S$’mil 2 1.5 1 0.5 0 EBITDA (ex EBITDA(ex NPBT EBITDA FX) FX & Assoc) 1H 14 1.59 2.54 2.64 2.17 1H 15 2.02 3.03 3.41 3.10 Stripping off depreciation, FX and associate’s profit, 1H 15 performance would have been even better.
Slide 14: Balance Sheet
Balance Sheet S$’mil FY2014 1H 15 Var Positive operating cashflow offset by Cash 9.0 9.1 0.1 payments for land and dividend Drawdown of LTL for land coupled with Borrowings 21.9 21.8 (0.1) reduction in STL Increase in retained earnings offset by Shareholders Equity 41.9 41.8 (0.1) dividend payment a
Slide 15: Cashflow
Cashflow FY2014 1H 15 $'000 Cash from Operating Positive cashflow from 83 2,191 activities profitable operations Progressive payments for Cash used in Investing (2,075) (569) land in Malaysia net of activities dividends from associate Cash provided by Financing Dividend payment and 2,538 (1,457) Act
Slide 16: Financial Summary
Financial Summary P&L Summary Balance Sheet Summary Higher sales and gross profit Gearing stable margin Sound liquidity partially offset by Cashflow positive Higher operating expenses Lower contribution from => Financial position remains associate stable => Higher Profit
Slide 17: Outlook 2H 2015: External Volatility, Internal Stability
Outlook 2H 2015: External Volatility Internal Stability
Slide 18: Economic Outlook 2H 2015
Economic Outlook 2H 2015 IMF, in its July economic update, predicted global growth at 3.3% for 2015 marginally lower than the 3.4% in 2014. According to IMF, the underlying drivers for a gradual acceleration in economic activity in advanced economies—easy financial conditions, more neutral fisca
Slide 19: Industry Outlook 2H 2015
Industry Outlook 2H 2015 WASHINGTON (June 28, 2015) – The Chemical Activity Barometer (CAB), a leading economic indicator created by the American Chemistry Council (ACC), increased by 0.1 percent in July. This follows consecutive monthly gains during the second quarter.
Slide 20: Megachem's Outlook 2H 2015
Megachem’s Outlook 2H 2015 Against the backdrop of muted economic outlook and challenging business landscape, the Group will remain focused on strengthening its business fundamentals whilst actively managing any downside risks.
Slide 21: Enhancing Shareholders' Long Term Value
Share Performance: Enhancing Shareholders’ Long Term Value
Slide 22: Share Statistics
Share Statistics Share Information (as at 6 Aug 2015) Listing Date 17-Oct-2003 IPO Price 28 cents Historical High 68 cents Historical Low 13 cents 52 weeks High 42.0 cents 52 weeks Low 28.0 cents Price (as at 6 Aug 2015) 36.5 cents No of Shares 133,300,000 Earnings per share 1H 15 1.00 cents Histori
Slide 23: Share Price Performance
(@) Share Price Performance MegaChem’ MegaChem (5DS.SI)_31ms 06-Aug-2016 Thursday 0.420 0.410 0.400) 4 0.390) 0.380 | 0.310) 0.300) Sen____Oci Now Dec _2015Jan Feb Mar Apr May Jun Jul VOL 0.00 6000
Slide 24: Share Price Performance vs ST All Shares
Share Price Performance vs ST All Shares
Slide 25: Share Price Performance vs Catalist
Share Price Performance vs Catalist
Slide 26: Dividend Record
Dividend Record 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1H 15 Average price for the year(cts) 31.5 28.75 21 16 18.75 22.5 21.5 19.75 19.9 22.9 28.0 33.0 35.5 Dividend / share (cents) - net 0.56 0.864 0.576 0.81 0.595 0.40 1.00 1.20 1.30 1.30 1.00 1.00 0.3 Dividend payout (%)- net
Slide 27: Sponsor statement
This document has been prepared by the Company and the contents have been reviewed by the Company’s Sponsor, SAC Capital Private Limited, for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited (“Exchange"). The Company’s Sponsor has not independently verified the
Slide 28: Thank You
Thank You The presentation is provided without any guarantees or representations of any kind (express or implied) or any liability. Megachem shall not be liable for any damages that have been caused by or in connection with the use of information in this presentation and shall not be responsible for