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


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


TurnoverTurnover

62.81

83.96

0

10

20

30

40

50

60

70

80

90

H1 FY2004 H1 FY2005

Turnover(S$ millions) 34%34%


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%


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


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 H1 FY2005 Financial PerformanceFinancial Performance


� 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%


32%

Retail Business14%


Turnover by Business SegmentsTurnover by Business Segments

H1 FY2005


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 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


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


TwoTwo --Pronged ApproachPronged Approach

• Expanding product portfolio and markets

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


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


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


Risk ManagementsRisk Managements

• Inventories

• Increase in oil prices

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


Business Outlook Business Outlook for H2 FY2005for H2 FY2005


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


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


Business Outlook for H2 FY2005Business Outlook for H2 FY2005


• 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


Corporate UpdateCorporate Update


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


Data Communication

• 56K USB Modem

• 56K PCI Modem

• USB ADSL Modem

• ADSL2/2+ Wireless Router

• ADSL2/2+ Router

• 14Mbps Homeplug Ethernet Adaptor


Voice Communication

• SMS DECT• Entry Level DECT

• SMS Colour DECT

DECT Phone

• V300ATA VoIP Broadband Router

VoIP Devices

Personal Mobile Radios

• PMR3000R• PMR5000


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

(H2 FY2005)(H2 FY2005)


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


• aFP50 series• aFP500 series

Digital Electronics

Digital MP3 Audio Players

Digital Weather Station

Baby Monitor


Contract Manufacturing Contract Manufacturing ServicesServices



• ADSL Router

• GSM/GPRS Module

• Bluetooth Carkit

• Powerline Modem

• CPU Test Board

• Video Conferencing


Retail BusinessRetail Business


Shiro Corporation

Consumer Digital Electronics

Consumer Telecom Products

• DECT Phones

• Corded Phones

• Walkie Talkies

• Digital Cameras

• MP3 Players


FacilitiesFacilities


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


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.


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


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


Thank YouThank YouAndAnd

Q&A SessionQ&A Session

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

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