Slide 1: 3Q2018 & YTD3Q2018 Results Presentation
3Q2018 & YTD3Q2018 RESULTS PRESENTATION Monday, 5 November 2018 1 1
Slide 2: Agenda
AGENDA 3D CORPORATE OVERVIEW FINANCIAL RESULTS OUTLOOK & STRATEGIES 2 2
Slide 3: Corporate Overview
CORPORATE OVERVIEW © 2012 PRIVATE & CONFIDENTIAL 3 3
Slide 4: Serial System at a Glance
SERIAL SYSTEM AT A GLANCE The largest One of Asia Pacific’s electronic largest electronic components distribution networks distributor listed on SGX Total Shares: Electronic 896 million Components (96%)* Free Float: 41% Market Capitalisation: S$76M YTD (As at 2 November 2018) SERIAL 3Q2018 FY2017 Ho
Slide 5: Extensive Network & Diversified Business
EXTENSIVE NETWORK & DIVERSIFIED BUSINESS Supporting a network of global brands, Serial System is a leading distributor of electronic components in Asia and a fast-growing dealer for a variety of consumer goods. It is also a strategic investor in businesses in healthcare, managed print services and d
Slide 6: Partnering Leading Suppliers
PARTNERING LEADING SUPPLIERS Electronic Components Distribution … more than 90 Franchised Product Lines in Serial Group © 2012 PRIVATE & CONFIDENTIAL 6 © 2011 A.S. LOUKEN BRANDING PTE LTD. PRIVATE & CONFIDENTIAL | 6 6
Slide 7: Partnering Leading Suppliers
PARTNERING LEADING SUPPLIERS Consumer Products Distribution © 2012 PRIVATE & CONFIDENTIAL 7 © 2011 A.S. LOUKEN BRANDING PTE LTD. PRIVATE & CONFIDENTIAL | 7 7
Slide 8: Other Businesses
OTHER BUSINESSES Part of Group’s diversification into investment holding of high-margin companies Serial MultiVision Pte. Ltd. (100%-stake) Core businesses: Hospitality and Healthcare solutions Hospitality solutions: Build based on a core venue management application suite known as Venue360. L
Slide 9: Strategic Investment
STRATEGIC INVESTMENT Musang Durians Frozen Food (M) Sdn. Bhd. The Group has an effective 27.5% stake in durian processing and distribution company Musang Durians Frozen Food (M) Sdn. Bhd. Operates in 2 sites: Kuala Lumpur, Malaysia (office and warehouse) and Pahang, Malaysia (GMP-certified processin
Slide 10: Financial Results
FINANCIAL RESULTS 10 10
Slide 11: Snapshot of 3Q2018 & YTD3Q2018 Performance
SNAPSHOT OF 3Q2018 & YTD3Q2018 PERFORMANCE Change Change US$’000 3Q2018 3Q2017 YTD3Q2018 YTD3Q2017 (%) (%) Sales 385,567 395,240 (2) 1,199,490 1,102,104 9 Gross Profit 30,221 26,636 13 95,222 76,739 24 Gross Profit Margin (%) 7.8 6.7 1.1 pt 7.9 7.0 0.9 pt Net Profit After Tax 10,267 3,114 230 17,499
Slide 12: 3Q2018 Highlights
3Q2018 HIGHLIGHTS • Revenue of US$385.6M, a slight decrease of 2% from US$395.2M in 3Q2017 Revenue for electronic components distribution declined 3% to US$369.5M mainly due to slowdown in demand for certain product lines in Hong Kong and China, and South Asia, which saw a decrease in turnover of
Slide 13: YTD3Q2018 Highlights
YTD3Q2018 HIGHLIGHTS • Revenue of US$1.20B, an increase of 9% from US$1.10B in YTD3Q2017 Electronic components distribution rose 9% to US$1.15B on higher sales in all markets except South Asia Consumer products distribution increased 15% to US$45.3M due to higher sales in Malaysia and Indonesia,
Slide 14: Revenue Growth Trend
REVENUE GROWTH TREND SERIAL SYSTEM GROUP Revenue (US#039; million) 1,600 1,492 1,403 1,400 1,222 6% 1,200 1,036 15% 1,000 817 18% 800 27% 658 616 600 545 24% 7% 373.9 395.2 390.1 405.2 408.7 385.6 400 354 382 332.9 315 13% 228 186 184 183 200 43% 92 -2% 44 8% - © 2012 PRIVATE & CONFIDENTIAL 14 © 2011 A
Slide 15: Outperforming the Industry
OUTPERFORMING THE INDUSTRY Asia Pacific (including Japan) Semiconductor Revenue (US#039; billion) Serial System Revenue (US#039; million) 300 285 1,600 1,492 1,403 1,400 250 241 232 1,222 229 207 209 1,200 205 205 19% 1,036 6% 200 1,000 4% 15% 817 150 1% 800 18% 658 616 27% 9% 545 600 100 2% 24% 400 -0.9%
Slide 16: Profitability
PROFITABILITY Gross Profit & Gross Profit Margin (US#039; million) 10.0% 9.5% 120.0 9.3% 9.3% 9.0% 8.7% 9.0% 8.7% 105.1 8.2% 7.7% 100.0 8.0% 7.5% 97.4 7.0% 7.2% 7.0% 7.3% 6.9% 90.4 6.7% 7.8% 7.0% 91.5 80.0 6.0% 73.5 8% 5.0% 62.6 60.0 6% 57.5 4.0% 50.7 1% 40.0 3.0% 23% 33.4 31.4 33.6 2.0% 28.4 30.2 24.0
Slide 17: Profitability
PROFITABILITY Net Profit & Net Profit Margin (US#039; million) 18.0 3.0% 16.1 2.7% 16.0 2.5% 2.2% 14.0 -31% 12.0 11.2 2.0% 12.0 11.0 1.6% 10.3 1.6% 10.0 230% 9.6 1.3% 1.5% 1.4% 1.3% 8.0 10.1 1.2% 110% 0.9% 6.0 44% 0.9% 0.8% 5.2 1.0% 7.9 0.8% 4.6 0.6% 4.0 5.1 0.5% 41% 3.4 3.1 0.3% 2.7 0.5% 2.0 0.4 -59%
Slide 18: Profitability
PROFITABILITY EBITDA (US#039; million) 35.0 30.8 30.0 26.0 26.1 25.0 23.5 22.0 20.2 19.9 20.3 20.0 18.9 11% 15.0 -9% 11.1 -16% 10.0 8.8 7.8 7.7 8.1 40% 6.3 4.3 5.0 16% 164% - FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 18 18
Slide 19: Financial Position
FINANCIAL POSITION Maintaining Healthy Current Ratio 509.6 1.5 1.6 500.0 1.4 1.4 468.6 430.6 1.4 1.3 408.6 400.0 1.2 397.5 382.6 372.0 1.2 1.2 1.2 1.2 347.8 1.2 324.1 295.6 1.0 300.0 277.0 0.8 218.3 211.5 218.7 200.0 173.8 0.6 147.5 147.0 120.7 0.4 100.0 0.2 - - FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY
Slide 20: Financial Position
FINANCIAL POSITION Net Gearing Ratio 186.2 140% 180.0 166.5 122.5% 160.0 116% 120% 114.8% 112% 152.0 138.0 140.0 98% 145.0 100% 89% 124.8 119.4 139.3 120.0 122.2 120.2 98.7 104.5 80% 100.0 72% 97.9 110.0 86.5 80.0 54% 60% 71.2 43% 56.3 60.0 40% 40.0 37.6 20% 20.0 - 0% FY10 FY11 FY12 FY13 FY14 FY15 F
Slide 21: Financial Position
FINANCIAL POSITION Cash Conversion Cycle (days) 75 70 70 67 69 65 62 66 58 58 61 60 61 60 55 55 56 54 51 51 53 49 50 51 44 45 42 41 40 39 36 33 40 38 35 35 38 32 33 32 30 33 31 33 32 30 25 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 YTDSEP18 Trade Receivable Turnover (days) Trade Payable Turnover (days)
Slide 22: Dividend Yield
DIVIDEND YIELD 0.40 1.00 13.6% FY18 0.29 0.46 4.6% FY17 Total Dividend Payout FY16 0.18 0.17 2.4% (In Cent (SGD)) (Interim & Final) each year 0.35 0.50 FY15 6.3% FY14 0.30 0.75 8.0% FY13 0.24 0.25 0.30 6.3% 0.22 0.30 5.0% FY12 7.9% FY11 0.30 0.16 0.33 FY10 0.28 0.67 6.1% Singapore Cents 0.13 0.38 8.
Slide 23: Outlook & Strategies
OUTLOOK & STRATEGIES 23 23
Slide 24: Industry Outlook
INDUSTRY OUTLOOK Worldwide semiconductor revenue is expected to reach US$451 billion in 2018, up from US$420.4 billion in 2017, according to Gartner. Demand from artificial intelligence, cloud, and IoT for semiconductor products is expected to have greater impact on revenue in 2018 vs prior years. W
Slide 25: Group Outlook
GROUP OUTLOOK • Under a newly-signed business transition agreement with Texas Instruments (“TI”), deadline for cessation of distribution agreement with TI has been extended to 30 June 2019 from 31 December 2018. • Extension will facilitate: An orderly winding down of Serial Microelectronics’ TI di
Slide 26: Our Three-Pronged Strategy
OUR THREE-PRONGED STRATEGY Objectives: Increase revenue Drive greater internal efficiencies to improve margins Deepen value proposition to increase margins Deepen penetration in Improve internal Expand product portfolio existing markets & efficiencies to & increase higher-value widen geographi
Slide 27: Forward-looking statements disclaimer
The presentation herein may contain forward-looking statements by the management of Serial System Ltd (“Serial System”) that pertain to expectations for financial performance of future periods versus past periods. Forward–looking statements involve certain risks and uncertainties because they relate
Slide 28: Thank You
Thank You Media and Investor Contact Information: WeR1 Consultants Pte Ltd 3 Phillip Street #12-01 Royal Group Building Singapore 048693 Tel: (65) 6737 4844 | Fax: (65) 6737 4944 Frankie Ho, frankieho@wer1.net Jordan Teo, jordanteo@wer1.net 28 28