Slide 1: Serial System Ltd 1H2022 Results Presentation
SERIAL SYSTEM LTD 1H2022 RESULTS PRESENTATION Saturday, 13 August 2022
Slide 2: Agenda
AGENDA By moving forward and FINANCIAL thinking forward, RESULTS Serial System helps its partners to be more competitive in the OUTLOOK marketplace, today and in the future
Slide 3: Financial Results
FINANCIAL | RESULTS | j
Slide 4: Snapshot Of 1H2022 Performance
Snapshot Of 1H2022 Performance US$’000 1H2022 1H2021 Change (%) Sales 462,768 438,288 6 Gross Profit 39,892 34,931 14 Gross Profit Margin (%) 8.6 8.0 0.6 ppt* Net Profit After Tax 384 5,387 (93) (Attributable to equity holders of the Company) EPS - fully diluted (US cents) 0.04 0.65 (94) NAV per sha
Slide 5: 1H2022 Highlights
1H2022 Highlights ❑ Revenue of US$462.8M in 1H2022, 6% higher from US$438.3M ▪ Turnover for electronic components distribution business rose 10%; growth was led by industrial, AI, renewable energy and automotive segments in Hong Kong and China ▪ Higher sales in Southeast Asia amid production and all
Slide 6: Revenue Trend
Revenue Trend Revenue (US#039; million) 1,600 1,527 1,492 1,403 2% 1,400 1,222 6% 1,200 15% 1,036 1,000 18% -48% 896 817 792 800 731 658 27% 616 22% 600 545 24% -8% 462.8 438.3 382 7% 400 354 315 13% 228 6% 186 184 183 200 43% 92 44 8% - 6
Slide 7: Profitability: Gross Profit & Gross Profit Margin
Profitability Gross Profit & Gross Profit Margin (US#039; million) 10.0% 9.5% 140.0 9.3% 9.3% 9.0% 8.7% 9.0% 8.6% 118.6 8.1% 120.0 7.5% 8.0% 8.0% 7.8% 105.1 6.9% 6.8% 7.0% 7.0% 100.0 91.5 6.3% 90.4 97.4 13% 6.0% 80.0 73.5 8% 5.0% -54% 73.0 6% 62.6 57.5 59% 60.0 54.2 4.0% 1% 50.7 45.9 3.0% 23% 40.0 17%
Slide 8: Profitability: Net Profit & Net Profit Margin
Profitability Net Profit & Net Profit Margin (US#039; million) 20.0 2.5% 18.0 2.2% 17.7 16.1 16.0 2.0% 44% 14.0 1.6% 1.6% 85% 12.0 1.4% 12.0 1.5% 11.0 11.1 1.2% 1.3% 10.1 -55% 1.2% 10.0 11.2 -31% 9.6 1.0% 4,168% 7.9 8.0 8.0 -16% 110% 1.2% -93% 1.0% 0.9% 5.8 6.0 41% -59% 0.6% -97% 4.0 4.6 0.5% -21% 2.0
Slide 9: Profitability: EBITDA
Profitability EBITDA (US#039; million) 50.0 44.8 45.0 40.0 35.0 30.8 -47% 30.0 27.4 26.0 24.4 23.7 25.0 64% 22.0 -15% 20.2 19.9 20.8 20.0 18.9 12% 40% -44% -2% -6% 15.0 17% 13.2 -5% 10.3 10.0 58% 6.0 5.0 -42% - FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 1H21 1H22 9
Slide 10: Financial Position: Maintaining Healthy Current Ratio
Financial Position Maintaining Healthy Current Ratio 1.6 500.0 1.5 468.6 1.4 1.5 1.4 1.4 1.4 458.5 1.3 430.6 1.4 1.3 1.2 409.9 400.0 1.2 382.6 1.2 1.2 397.5 371.5 373.6 1.2 372.0 347.8 1.2 340.8 332.2 324.1 304.0 1.0 295.6 300.0 277.0 258.2 234.0 0.8 230.7 218.3 211.5 218.7 200.0 173.8 0.6 147.5 147
Slide 11: Financial Position: Net Gearing Ratio
Financial Position Net Gearing Ratio 140% 180.0 166.5 161.4 116% 115% 155.9 160.0 151.7 155.3 154.7 120% 112% 144.5 147.2 145.0 108% 98% 138.0 139.3 140.0 133.2 89% 100% 100% 124.8 122.2 120.2 119.4 120.0 104.5 110.0 98.7 72% 83% 80% 100.0 97.9 86.5 82.3 80.0 54% 72.6 60% 71.2 56% 43% 60.0 56.3 48%
Slide 12: Financial Position: Cash Conversion Cycle
Financial Position Cash Conversion Cycle (days) 125 113 115 105 96 98 95 89 87 85 72 75 70 69 67 65 71 66 66 65 62 61 58 58 66 56 61 55 55 44 51 61 60 49 54 41 53 51 54 45 42 40 51 38 40 37 36 33 41 38 32 30 35 34 31 33 35 29 33 32 33 25 30 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Slide 13: Dividend Yield
Dividend Yield 1H22 0.11 1.0% FY21 0.22 0.45 6.0% Total DivIdend Payout (In Cent (SGD)) 0.11 1.3% (Interim & Final) each year FY20 0.22 0.13 4.3% FY19 0.40 1.00 0.46 21.9% FY18 0.29 0.46 4.6% FY17 FY16 0.18 0.17 2.4% 0.35 0.50 6.3% FY15 0.30 0.75 8.0% FY14 0.24 0.25 0.30 6.3% FY13 0.22 0.30 5.0% FY1
Slide 14: Outlook
OUTLOOK
Slide 15: Industry Outlook
Industry Outlook Bright Spots ▪ Demand for chips will continue to grow in the long term, as emerging technologies gain traction (5G Infrastructure, IoT, AI, Electric and Autonomous Vehicles etc) ▪ Manufacturing activities expected to see cyclical uptick, driving demand for semiconductor chips Uncert
Slide 16: Group Outlook
Group Outlook • Leverage our extensive global network to add value to customers affected by COVID restrictions within China • Implement growth strategies to strengthen business and increase revenue • Ride long-term growth in electronic components distribution business and capture new opportunities •
Slide 17: Serial System At A Glance
Serial System At A Glance Electronic Components (94%)* One of Asia Pacific’s FY2021 1H22 largest electronic Hong Kong 51% 48% China 18% 20% distribution networks Southeast Asia and India 19% 19% South Korea 6% 6% Taiwan 6% 7% 100% 100% Total Shares: 905 million Free Float: 38% SERIAL Consumer Produc
Slide 18: 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 19: Thank You
Thank You Media and Investor Contact: WeR1 Consultants Pte Ltd 1 Raffles Place #02-01 One Raffles Place Mall Suit 332 Singapore 048616 Tel: (65) 6721 7161 Isaac Tang, serialsystem@wer1.net 19