aztech systems ltd · roe 7% 2% * roa 4% 1% * capital expenditure property, plant and equipment...

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

AZTECH SYSTEMS LTDAZTECH SYSTEMS LTDH1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Analysts’ Briefing18 July 2005

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

HighlightsHighlights

• H1 FY2005 Net Profit up 278% to $4.12 million

• H1 FY2005 Revenue up 34% to $83.96 million

• All three business segments recorded healthy growth in revenue

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

TurnoverTurnover

62.81

83.96

0

10

20

30

40

50

60

70

80

90

H1 FY2004 H1 FY2005

Turnover(S$ millions) 34%34%

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Profit After TaxProfit After Tax

1.09

4.12

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

H1 FY2004 H1 FY2005

Profit After Tax(S$ millions)

278%278%

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Reasons for Encouraging PerformanceReasons for Encouraging Performance

• Introduction of new products

• Expansion of customer base

• Vertical manufacturing operations and enhanced capacity utilisation

• Tight cost control measures

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Data Communications

Voice Communications

DigitalElectronics

ODM/OEM Sales

PCBA andBox Build Assembly

Plastic Moulding

Plastic Injection

Contract Manufacturing

Sales ofAztech brand products

Sales ofShiro brand products

Retail - Shiro Corporation

Aztech

Our BusinessesOur Businesses

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

H1 FY2005 H1 FY2005 Financial PerformanceFinancial Performance

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

� Turnover

� Profit from Operations

� Net Profit After Tax

$83.96m

$4.88m

$4.12m

H1 FY2005 H1 FY2004 Change

$62.81m

$1.87m

$1.09m

+ 161%

+ 34%

+ 278%

Highlights of Interim ResultsHighlights of Interim Results

� EPS (Basic) 1.03 cents 0.27 cents + 281%

� EPS (Diluted) 1.01 cents 0.27 cents + 274%

� EBITDA $7.80m $4.60m + 70%

� Gross Profit $15.65m $9.59m + 63%

ODM/OEM Sales54%

Contract Manufacturing

32%

Retail Business14%

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Turnover by Business SegmentsTurnover by Business Segments

H1 FY2005

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Turnover by Geographical AreasTurnover by Geographical Areas

H1 FY2005 H1 FY2004

Asia Pacific34.6%

Europe35.1%

North & South Americas24.6%

Others5.7%

Europe51.5%

North & South Americas

19.3%

Others1.9%

Asia Pacific27.3%

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

H1 FY2005 FY2004 Change

� Total Current Assets

� Non-Current Assets

� Total Current Liabilities

� Non Current Liabilities

$ 69.51m

$ 43.77m

$ 45.32m

$ 9.86m

$ 67.25m

$ 40.79m

$ 44.58m

� Total Assets $113.27m $108.04m + 5%

+ 3%

+ 7%

+ 2%

� Capital and Reserves

� Total Liabilities

$ 58.10m

$ 55.17m

$ 8.28m

$ 55.18m

$ 52.86m

+ 19%

+ 5%

+ 4%

� Working Capital $ 24.19m $ 22.67m + 7%

Financial ResourcesFinancial Resources

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Balance Sheet H1 FY2005 FY2004

Rate of return (%)ROE 7% 2% *ROA 4% 1% *

Capital ExpenditureProperty, plant and equipment $5.38m $2.10m *R & D $1.14m $1.21m *

Financial ResourcesFinancial Resources

* Using H1 FY2004 figures

Debtors $28.55m $29.69mDebtors turnover 62 days 71 days Creditors $31.83m $30.12mCreditors turnover 85 days 86 daysInventory $29.52m $25.47mInventory turnover 79 days 73 days

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

TwoTwo --Pronged ApproachPronged Approach

• Expanding product portfolio and markets

• Improving margin enhancements through- vertical integration of manufacturing operations- stringent cost control

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

First Approach: Expansion of product First Approach: Expansion of product portfolio and new marketsportfolio and new markets

• Invest in R&D

• Invest in manpower

• Increase the level of sales and marketing activitie s

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Second Approach: Improving MarginsSecond Approach: Improving Margins

• Reduce overheads through consolidation of manufacturing facilities

• Reduce cost through application of a vertical integration strategy

• Streamlining of operations

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Risk ManagementsRisk Managements

• Inventories

• Increase in oil prices

• Business environment in China- RMB Re-Valuation- Electricity and Labour supply

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Business Outlook Business Outlook for H2 FY2005for H2 FY2005

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

CAPEXCAPEX

H1 FY2005 H2 FY2005 Total No of SMT machines 9 23 32 Cost of SMT machines $3.56 million $6.91 million $10.47 million Factory Construction $0.76 million $8.13 million $8.89 million Other Factory & Office Equipment

$1.06 million $0.7 million $1.76 million

Total $5.38 million $15.74 million $21.12 million

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Business Outlook for H2 FY2005Business Outlook for H2 FY2005

ODM/OEM Sales

• Demand for data and voice communications to remain strong• Growth in ADSL 2/2+, VoIP and DECT markets• Increase in customers for new products which will b e launched in H2 FY2005

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Business Outlook for H2 FY2005Business Outlook for H2 FY2005

Contract Manufacturing

• Global Contract Manufacturing industry uptrend • Continue to strengthen overall manufacturing capabilities to cater customers’ requirements.

Retail Business

• Expand product line• Intensify marketing efforts to penetrate new market

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Corporate UpdateCorporate Update

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

ODM/OEM Sales ODM/OEM Sales ––Current Product OfferingsCurrent Product Offerings

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Data Communication

• 56K USB Modem

• 56K PCI Modem

• USB ADSL Modem

• ADSL2/2+ Wireless Router

• ADSL2/2+ Router

• 14Mbps Homeplug Ethernet Adaptor

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Voice Communication

• SMS DECT• Entry Level DECT

• SMS Colour DECT

DECT Phone

• V300ATA VoIP Broadband Router

VoIP Devices

Personal Mobile Radios

• PMR3000R• PMR5000

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

ODM/OEM Sales ODM/OEM Sales ––New Product Offerings New Product Offerings

(H2 FY2005)(H2 FY2005)

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Data Communication

• ADSL 2/2+ with HomePlug Router

• 85Mbps Homeplug Ethernet Adaptor

• ADSL 2/2+ with Wireless and VoIP

• Aztech V500DP, integrating VoIP ATA and DECT Phone

Voice Communication

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

• aFP50 series• aFP500 series

Digital Electronics

Digital MP3 Audio Players

Digital Weather Station

Baby Monitor

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Contract Manufacturing Contract Manufacturing ServicesServices

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Contract Manufacturing

• ADSL Router

• GSM/GPRS Module

• Bluetooth Carkit

• Powerline Modem

• CPU Test Board

• Video Conferencing

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Retail BusinessRetail Business

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Shiro Corporation

Consumer Digital Electronics

Consumer Telecom Products

• DECT Phones

• Corded Phones

• Walkie Talkies

• Digital Cameras

• MP3 Players

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

FacilitiesFacilities

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Manufacturing Equipment

• 21 High Speed SMT lines

• 1 X-Ray rework station

• 5 Manual Insertion Lines

• 3 Teradyne 1850/1820 ICT testers

• 2 HP3070 Series II ICT testers

• 7 Burn-In Facilities (static)

• 6 Test Lines w/X900 and Hi-Pot

• 5 DECT Testing Lines

• 5 Assembly & Packaging Lines

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Chip On BoardCOB Wire Bonder

• AC servo control Bond head

Z travel resolution 1um(0.039mil), high speed 14ms for 1mm Z travel

• High throughput: 6 wires/sec for 80mil wire length

• Fine Pitch cap: pad pitch 80um/3.15mil

• pad size:70um/2.8 mil@1mil wire diameter

• Large substrate: 4”x6”, multiple die device with ma x of 100 dice.

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Plastic Mold Fabrication

• 2 CNC machines (Maximart, Rapid 032 V-8D)• 6 EDM (Acro II, P/ZNC S-430)• 15 Radial Miller (Manford)• 2 Horizontal millers • 4 Wire cutters (Gold Sun)• 2 Drill Press x (TF 750S)• 1 Lathe (GapBed C6232A)• 4 Grinders • 1 Saw

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Plastic Injection Factory

• 24 Plastics Injection Machines (80T-250T)

• Complete services

* Plastics parts injection molding * Spray paintin g

* Silkscreen * EMC coating

• Secondary services

* Industrial design * Mechanical design

* Tooling production management

H1 FY2005 FINANCIAL RESULTSH1 FY2005 FINANCIAL RESULTS

Thank YouThank YouAndAnd

Q&A SessionQ&A Session

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