Asian Micro Holdings Limited · SGX:585
Asian Micro — H1 2005 Earnings Presentation
18 slides from Asian Micro's earnings presentation, Jan 31, 2005
Slide 1: Analysts' Briefing 1H FY05 / Business Update
ASIAN MICRO Asian Micro Holdings Ltd ( Company Registration No. 199701052K ) Analysts’ Briefing 1H FY05 / Business Update Tapping new frontiers in plastics re-use and recycling 31 January 2005 We add value… Panelists ASIAN MICRO • Pang Kim Hin Chairman, Non-Executive Director • Victor Lim CEO & Grou
Slide 2: Highlights
Highlights ASIAN MICRO • Completed a strategic shift from Flexible Circuit Board Assembly (“FCBA”) to new core business with strong environmental protection focus • Now offer total solutions in plastic packaging recycling – from collection, cleaning / washing, recycling, to end-products manufacturin
Slide 3: Highlights: 1H05 Results
Highlights ASIAN MICRO 1H05 Results • Turnover fell 14% to S$15.07m • Net profit up 223% to S$1.66m • Backed by strong profit from operations which rose 164% to S$1.82m • Gearing fell 65% from 1.73x to 0.61x • Write-offs of S$0.3m for 1H05 compared to S$6.5m written off between FY03 and FY04 ASIAN M
Slide 4: Turnover and Net Profit attributable to Shareholders
Turnover ASIAN MICRO S$’ S$’m 35 29.97 30 25 12.50 20 2H Results 1H Results 15 (14%) 10 17.47 15.07 5 0 FY04 1H05 Net Profit attributable ASIAN MICRO to Shareholders S$’ S$’m 2 1.8 1.58 1.6 1.4 1.2 2H Results 3% 1 1.07 22 1H Results 0.8 1.66 0.6 0.4 0.2 0.51 0 FY04 1H05 4
Slide 5: Profit from Operations and Improving Margins
Profit from Operations ASIAN MICRO S$’ S$’m 2 1.8 1.6 1.4 1.2 2H Results 4% 1 1H Results 0.73 16 1.82 0.8 0.04 0.6 0.4 0.69 0.2 0 FY04 1H05 Improving Margins ASIAN MICRO 1H04 2H04 1H05 Margins Gross 19.47% 28.06% 29.58% Profit from 1.59% 3.62% 12.09% Operations PBT 2.53% 7.95% 11.33% Net Profit 2.94
Slide 6: Turnover by Activity and Country
Turnover by Activity ASIAN MICRO 1H FY05 Manufacturing Trading 7% 13% 1H FY04 Manufacturing Trading 6% 24% Tray Recycling 80% Tray Recycling 70% Turnover by Country ASIAN MICRO 1H FY05 USA 9% Singapore 70% China / Hong Others 1% Kong 4% Thailand 7% 1H FY04 Others 1% USA 3% Hong Kong 2% Malaysia 9% T
Slide 7: Financial Ratios / Statistics
Financial Ratios / Statistics ASIAN MICRO 1H04 1H05 Balance Sheet Current Ratio 0.93 1.37 Total Debt / Equity 1.73 0.60 NTA 1.97 cents 3.07 cents Cash Flow Net cash generated from operating activities $1.60 m $0.63 m Profitability EPS (fully diluted) 0.22 cent 0.58 cent ROE 9.67% 18.28% ROTA 1.85% 8
Slide 8: Our Core Business Activities and Rationale for Transformation
Our Core Business Activities ASIAN MICRO We provide plastic waste environmental management solutions and manufacture clean room packaging products 1. Collect and re-use packaging 2. Collect, clean room wash and recycle materials Vacuum Formed Trays Pallets Injection Mold Trays Edge protectors Media
Slide 9: Tray & Media Cassette Recycling; Clean Room Packaging
Tray & Media Cassette ASIAN MICRO Recycling 3a. Tray Washing (Conveyorised) 1. Collection 2. Visual Inspection 4. Final Products 100% pre-washing Washed trays and media screening is conducted. cassettes have to undergo Specification is per a sampling audit, vacuum customer’s QCIC and sealing under C
Slide 10: Our Regional Network; Machine & Facility Capabilities
Our Regional Network ASIAN MICRO Asian Micro Technology (Suzhou) Co., Ltd Building 1A, Export Processing Zone, Shenzhen Bige Industrial Co., Ltd. No. 200 Su Hong, Middle Road, Blg 10, Century Industrial District, Er Gong Suzhou Industrial Park Ling Ping Hu, Long Gang, Shenzhen, Suzhou P.R. China 215
Slide 11: Bag Manufacturing Capabilities and Products
Machine & Facility Capabilities: ASIAN MICRO Bag Manufacturing Cutting Machine 2-Side Seal Machine • 5 units of extrusion machine for LDPE • 5 units of extrusion machine for HDPE LDPE Extrusion Machine • 7 units of cutting machine • 1 unit of 2-side seal machine • 1 unit of 3-side seal machine 3-Sid
Slide 12: Recent Developments
ASIAN MICRO Recent Developments We add value… Recent Developments ASIAN MICRO October 2004 to January 2005 Proposed JV – World Plastic Circuit Image Increased Technology stake in Jan 2005 JV with Micro Brite Jan 2005 Shenzhen Technology Fire at Wuxi BIGE Dec 2004 Plant Oct 2004 July 2004 July 2004 t
Slide 13: Shenzhen BIGE Joint Venture; Micro Brite Technology
Shenzhen BIGE ASIAN MICRO Industrial Co., Ltd. Joint Venture Core Business Volume manufacturing of precision disk cassettes for use in HDD: In-process cassettes Disk substrate cassettes Magnetic disk cassettes Storage cassettes for rejected disks Growth Prospects Existing contract to produce over 5m
Slide 14: World Circuit Technology; Plastic Image
World Circuit Technology ASIAN MICRO Pte Ltd Entering new business of Plastic Materials Recovery Core Business Recover plastic waste and convert it into usable plastic resins Begin by recovering plastic waste from trays recycling and clean room plastic packaging Growth Prospects Plan to recover and
Slide 15: Industry Trends: Strong Demand for HDD
ASIAN MICRO Looking Ahead We add value… Industry Trends: ASIAN MICRO Strong Demand for HDD (Units / Millions) .2% 450.00 R = 13 400.00 CAG 350.00 Growth in 300.00 Consumer 250.00 Electronics 200.00 150.00 100.00 50.00 0.00 2003 2004 2005 2006 2007 Act. Fct. Fct. Fct. Fct. (Units / Millions) Traditio
Slide 16: Overview of Recycling in the HDD Industry
Industry Trends: ASIAN MICRO Rising Environmental Consciousness Source : The ISO Survey of ISO 9000 and ISO 14001 Certificates, 2003 Overview of Recycling in the ASIAN MICRO HDD Industry • We expect an increase in demand for HDD to lead to a corresponding increase in demand for our plastic packaging
Slide 17: Growth Strategies and Future Plans
Growth Strategies ASIAN MICRO • Proactive and aggressive marketing strategies – To promote AMH products and services in all markets • Continued focus on quality standards – Optimise recovery of used packaging materials • Penetration to Japanese HDD manufacturers – via Japanese suppliers of major US-
Slide 18: New Business & Prospects; Q&A
New Business & Prospects ASIAN MICRO • Precision Tray and Cassette Cleaning – FY04 – Cleaned more than 2m sets of cassettes – 1H05 – Cleaned more than 2m sets – 2H05 – Target to clean more than 5m sets • Manufacturing of Clean Room Bags and Cassettes – Expect minimum of 10% growth in contribution fr