Slide 1: Serial System Ltd 1H2024 Results Presentation
SERIAL SYSTEM LTD 1H2024 Results Presentation Monday, 12 August 2024 1
Slide 2: Agenda
By moving forward and thinking forward, Serial System helps its partners to be more competitive in the marketplace, today and in the future AGENDA FINANCIAL RESULTS 2 CORPORATE OVERVIEW OUTLOOK
Slide 3: Financial Results
tis FINANCIAL Nae RESULTS A
Slide 4: Snapshot Of 1H2024 Performance
Snapshot Of 1H2024 Performance US$’000 1H2024 1H2023 Change (%) Sales 374,716 369,771 1 Gross Profit 27,860 29,486 -6 Gross Profit Margin (%) 7.4 8.0 -0.6 ppt Net Loss After Tax (5,180) (12,726) -59 (Attributable to equity holders of the Company) LPS - fully diluted (US cents)(1) (0.57) (1.41) -59 N
Slide 5: 1H2024 Highlights
1H2024 Highlights Revenue in 1H2024 increased 1% to US$374.7M from US$369.8M in 1H2023 Sales for the electronic components distribution business increased by 2%, due to higher sales recorded by Hong Kong and China contributed by improved demand and inventory replenishment from the automotive, ne
Slide 6: Revenue Trend
Revenue Trend Revenue (US#039; million) 1,600 1,527 1,492 1,403 1,400 2% 1,222 1,200 6% 1,036 15% 1,000 907 896 817 18% 792 731 759 800 658 27% 1% 616 -48% 600 545 22% 24% -16% 7% -8% 382 370 375 400 354 315 13% 228 43% 186 184 183 1% 200 8% 92 44 - 6
Slide 7: Profitability: 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% 7.8% 8.1% 8.1% 8.0% 120.0 7.5% 7.8% 8.0% 7.4% 7.0% 6.9% 6.8% 118.6 100.0 7.0% 6.3% 97.4 105.1 91.5 6.0% 90.4 13% 80.0 5.0% 8% 73.0 73.8 73.5 -54% 6% 60.0 4.0% 62.6 59% 58.8 57.5 54.2 1% 50.7 3.0
Slide 8: Profitability: Net Profit & Margin
Profitability Net Profit & Net Profit Margin (US#039; million) 20.0 3.0% 18.0 2.2% 16.1 17.7 16.0 44% 1.6% 2.0% 14.0 1.6% 85% 1.4% 4,181% 12.0 1.2% 11.0 1.2% 1.0% 1.2% 12.0 9.6 10.0 10.1 11.1 1.0% 8.0 11.2 0.9% 0.6% 7.9 0.3% 8.0 6.0 -31% -142% 0.04% 41% 110% 4.0 0.0% -21% 4.6 2.0 -59% -55% -16% 0.3 -0.
Slide 9: Profitability: EBITDA
Profitability EBITDA (US#039; million) 50.0 44.8 40.0 64% 30.8 30.0 27.4 26.0 24.4 23.7 22.0 20.2 19.9 20.8 20.0 18.9 -15% -47% 58% 40% 12% 13.2 17% 9.6 10.0 -6% -44% -5% -54% 2.9 3.1 -2% -69% - FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 1H23 1H24 -3.8 (10.0) 9
Slide 10: Financial Position: Current Ratio
Financial Position Maintaining Healthy Current Ratio 1.6 500.0 1.5 1.4 1.4 468.6 1.4 1.5 1.4 458.5 1.3 1.3 1.4 430.6 1.3 1.3 1.2 398.3 400.0 382.6 1.2 397.5 1.2 1.2 1.2 371.5 373.6 1.2 372.0 347.8 340.8 341.7 332.2 325.3 324.1 300.2 1.0 295.6 300.0 277.0 258.2 254.2 252.9 234.0 0.8 230.7 218.3 211.5
Slide 11: Financial Position: Net Gearing Ratio
Financial Position Net Gearing Ratio 140% 180.0 166.5 161.4 168.2 119% 116% 155.9 160.0 112% 115% 151.7 157.2 120% 108% 147.2 148.6 107% 113% 98% 138.0 145.0 140.0 131.8 89% 139.3 144.5 133.2 132.5 100% 124.8 124.1 120.0 119.4 122.2 104.5 110.0 120.2 80% 100.0 98.7 97.9 83% 72% 86.5 82.3 80.0 54% 72
Slide 12: Financial Position: Cash Conversion Cycle
Financial Position Cash Conversion Cycle (days) 145 127 125 113 110 105 96 105 87 85 82 89 72 70 78 70 67 66 66 69 62 75 65 66 58 56 65 63 51 55 58 65 61 60 54 61 51 53 51 54 45 41 49 40 38 40 37 44 33 32 42 30 30 38 41 30 36 35 29 31 25 33 30 32 33 33 31 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Slide 13: Dividend Yield
Dividend Yield FY22 0.11 1.2% 0.22 0.45 6.0% FY21 0.11 1.3% Total Dividend Payout (In Cents (SGD)) FY20 0.22 0.13 4.3% FY19 0.40 1.00 0.46 21.9% FY18 FY17 0.29 0.46 4.6% 0.18 0.17 2.4% FY16 FY15 0.35 0.50 6.3% FY14 0.30 0.75 8.0% FY13 0.24 0.25 0.30 6.3% FY12 0.22 0.30 5.0% FY11 0.30 0.16 0.33 7.9%
Slide 14: Corporate Overview
CORPORATE OVERVIEW 14
Slide 15: Serial System At A Glance
Serial System At A Glance Electronic Components* One of Asia Pacific’s 1H2024 : 89% largest electronic FY2023 : 88% distribution networks 1H2024 FY2023 Hong Kong 50% 43% Total Shares: China 20% 22% 905 million Free Float: 38% SERIAL Southeast Asia & India 19% 22% SYSTEM South Korea 6% 8% listed in T
Slide 16: Diversified Business
Diversified Business Supporting a network of global brands, Serial System is a leading distributor of electronic components and consumer products in Asia. It is also a strategic investor of businesses in hospitality and healthcare, managed print services and 3D printing, and fast moving consumer pro
Slide 17: Strong Asia Pacific Presence
Strong Asia Pacific Presence The Group’s offices and 21 13 800 Employees Sales Offices Warehouses in Asia Pacific representations Extensive Distribution SINGAPORE CHINA INDIA JAPAN MALAYSIA Network • (Headquarter) • North China • Bangalore • Tokyo • Penang Beijing • New Delhi • Kuala Lumpur • Pune •
Slide 18: Partnering Leading Suppliers: Electronic Components
Partnering Leading Suppliers Electronic Components Distribution … more than 90 Franchised Product Lines in Serial System Group 18
Slide 19: Partnering Leading Suppliers: Consumer Products
Partnering Leading Suppliers Consumer Products Distribution 19
Slide 20: Serial Achieva Listing on Catalist via Reverse Takeover
Consumer Products Distribution Successful listing of Serial Achieva Limited (“Serial Achieva”) on Catalist Board of Singapore Exchange via Reverse Takeover (“RTO”) • Serial Achieva (formerly known as Axington Inc. and listed on Catalist Board of Singapore Exchange) has recently completed its RTO via
Slide 21: Managed Print Services and 3D Printing
Consumer Products Distribution Managed Print Services and 3D Printing Swift-Value Business Pte. Ltd. (100%-stake) Major suppliers include Kyocera, Hewlett-Packard (HP), Epson and Canon product s and also the authorised reseller of products from major brands such as Fuji Xero x and Samsung By pro
Slide 22: Print-IQ and PT Sentral Mitra Informatika
Consumer Products Distribution Managed Print Services and 3D Printing Print-IQ MPS Co., Ltd. (49%-stake) Set up in 2019, Achieva Technology (Thailand) is 49% owned by Serial System since December 2019 Provides managed print services and maintains and distributes Lexmark printers and toners PT Se
Slide 23: Other Businesses
0ther Businesses Serial MultiVision Pte. Ltd. (100%-stake) Core business: Hospitality and Healthcare solutions Hospitality solutions: Build based on a core venue management application suite known as Venue360 Leading edge modules within Venue360: Electronic meal ordering system (eMOS), Intelli
Slide 24: Outlook
OUTLOOK
Slide 25: Industry Outlook
Industry Outlook Bright Spots Rising global demand for artificial intelligence and high- performance computing. AIDCs are being set up in Southeast Asia Channel inventory is beginning to normalise Manufacturing activities are poised to pick up in Southeast Asia and India Uncertainties High i
Slide 26: Group Outlook
Group Outlook • Focus efforts on expanding into emerging sectors, building upon track record in renewable energy, artificial intelligence, cloud and automotive segments • Increase range of consumer products and suppliers to maintain lead in Malaysia and Thailand. • Review operations to boost efficie
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 Serial System Ltd 8 Ubi View #05-01 Serial System Building Singapore 408554 Tel: (65) 6510 2408 Fax: (65) 6510 2407 ecomm@serialsystem.com