vtech holdings ltd · 2015-11-05 · 9 north america (continued) tel 289.4 (65.5%) elp 103.6...
TRANSCRIPT
VTech Holdings Ltd2009/2010 Interim Results Announcement
25th November 2009
2
Shereen Tong
Group Chief Financial Officer
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Financial Highlights
34.6%74.8100.7Operating Profit
33.0%68.891.5Profit Attributable to Equity Shareholders
31.9%28.237.2Basic Earnings per Share (US cents)
Changes20082009(US$ M)
5.2%778.5738.0Revenue
For the six months ended 30th September
3.4%263.4254.5Gross Profit
Interim Dividend per Share (US cents) 33.3%12.016.0
4
Revenue by Region
Total 738.0 100.0 778.5 5.2%
28.1Others 3.8 31.1 9.6%
Europe 30.5 298.3 24.4%225.6
North America 441.8 59.9 417.8 5.7%
Asia Pacific 42.5 5.8 31.3 35.8%
For the six months ended 30th September
% Change20082009(US$ M)
5
Working Capital
Stocks 197.8 207.3
Stocks Turnover Days 98 days 95 days
Trade Debtors 338.7
Trade Debtors Turnover Days 55 days 62 days
280.4
30/09/0830/09/09(US$ M)
128.0
67 days
154.0
73 days
31/03/09
6
Deposits and Cash 229.9 143.7
Less: Total Interest Bearing Liabilities
Net Cash Position 229.9 143.7
- -
30/09/0830/09/09(US$ M)
Liquidity Position
Currency-linked Deposits with Principal Protected - 19.3
229.9 163.0
287.2
287.2
-
31/03/09
4.9
292.1
77
Allan Wong
Chairman and Group CEO
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North America
TEL289.4 (65.5%)
ELP103.6 (23.5%)
CMS48.8 (11.0%)
• Revenue up 5.7% to US$441.8
million, 59.9% of Group revenue
• Growth was driven by higher
TEL sales
• TEL revenue up 31.6% to
US$289.4 million, due to:
− Higher sales of branded products
− Supply chain excellence
− Market share gains, as a major
competitor exited the market
Revenue by Product Line (US$ million)
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North America (continued)
TEL289.4 (65.5%)
ELP103.6 (23.5%)
CMS48.8 (11.0%)
• ELP revenue down by 25.1% to
US$103.6 million
− Emphasised value because of weak
economy
− Delayed the launch of a major new
platform
− Poor sentiment led to lower ASPs and
revenue
− Standalone products outperformed
platform products
• CMS revenue down by 18.0% to
US$48.8 million
− Tough comparison with strong 1HFY09
− Lower orders across the board
Revenue by Product Line (US$ million)
1010
Europe
TEL76.9 (34.1%)
ELP95.4 (42.3%)
CMS53.3 (23.6%)
• Revenue down by 24.4% to
US$225.6 million, 30.5% of Group
revenue
• Sales decline was due to lower
sales of TEL products, ELPs and
CMS
• TEL revenue down by 24.4% to
US$76.9 million, due to:
− Reduced orders from customers
− Tough comparison with strong
1HFY09
Revenue by Product Line (US$ million)
1111
Europe (continued)
TEL76.9 (34.1%)
ELP95.4 (42.3%)
CMS53.3 (23.6%)
• ELP revenue down by 26.1% to
US$95.4 million
− Declining consumer spending and lower ASPs
− Standalone products outperformed
platform products
• CMS revenue down by 21.0% to
US$53.3 million
− Lower sales in power supplies and wireless products
− Tough comparison with strong 1HFY09
Revenue by Product Line (US$ million)
121212
Asia Pacific
TEL8.1 (19.1%)
ELP10.3 (24.2%)
CMS24.1 (56.7%)
• Revenue up 35.8% to US$42.5
million, 5.8% of Group revenue
• AP outperformed other markets due
to higher sales in all product lines
• TEL revenue rose by 9.5% to
US$8.1 million
• ELP revenue increased by 18.4% to
US$10.3 million
• CMS showed strongest growth in AP,
with revenue growing by 58.6% to
US$24.1 million, due to:
− Increasing sales in solid state lighting
Revenue by Product Line (US$ million)
1313
Other Regions
TEL16.2 (57.6%)
ELP11.8 (42.0%)
CMS0.1 (0.4%)
• Revenue down by 9.6% to
US$28.1 million, 3.8% of Group
revenue
• Other regions comprise mainly
markets in:
- Latin America
- Middle East
- Africa
• Sales drop was due to lower sales
of TEL products and ELPs
• TEL revenue down by 5.8% to
US$16.2 million
• ELP revenue declined by 15.1% to
US$11.8 million
Revenue by Product Line (US$ million)
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King Pang
Group President
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Proven Strategy
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Proven Strategy
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Technology Roadmap - TEL Products
� Landline & mobile convergence
� Enterprise products� IAD
� Corded and cordless phones
� Strong industrial design
� Enhanced user interface
CY2009 CY2010
Core Product Line
Design & Tech Innovation
New Product Categories
� More enterprise products
� Corded and cordless phones
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Technology Roadmap - ELPs
Core Product Core Product
LineLine
Design & Tech Design & Tech
InnovationInnovation
New Product New Product
CategoriesCategories
CY2009CY2009 CY2010CY2010
� Jungle Gym
� Learning & exercise� Reading
� Standalone products� Platform products
� Video technologies� Wireless technologies
New New
PlatformPlatform
ProductsProducts
ExpandedExpanded
StandaloneStandalone
LineLine
� Wireless connectivity� User interface
1919
Proven Strategy
2020
Gains in Market Share
Industry consolidation
• Major competitor exited
• Weak competition +
Market leader
• No. 1 player in the US
• Strong core product lines
• New product categories
Market VTech
Further gains in market share for TEL products Further gains in market share for TEL products
2121
Proven Strategy
2222
Asia Pacific
Geographic Expansion
Other Regions
Asia Pacific + other markets = Less than 10% of Group sales
Potential to grow
9.6%(3.8% of group sales)
35.8%(5.8% of group sales)
2323
Proven Strategy
2424
Operational Excellence
Good cost control + Efficient operations
Selling & Distribution Costsas Percentage of Group Sales%
0
5
10
15
20
25
15.114.515.115.7
13.1
2005 2006 2007 2008 2009
Administrative & Other Operating Expensesas Percentage of Group Sales*%
0
1
2
3
4
5
6
7
4.13.94.13.94.7
2005 2006 2007 2008 2009
For the six months ended 30th September
*Excluding the effect of exchange differences
2525
Outlook
2626
Outlook – Overview
• Expect consumer sentiment to remain
subdued through holiday season
• Top line growth will not be easy to
achieve
• Profitability is expected to be higher
year on year
2727
Outlook – North America & Europe
TEL products
• North American sales to perform well
− Market share gains
− Boost from recently introduced cordless, enterprise phone products
• European sales to pick up
− Orders from existing customers return to normal levels
− Full range of “T-Home / VTech”products on shelves
− Increasing shipments of IADs
2828
Outlook – North America & Europe
ELPs
• Have planned for challenging holiday season
• Rich line up of new products for CY2010
− Includes new platform products
− Received uniform enthusiastic receptions
CMS
• Economies stabilising
• Expect sales to pick up in 2H
2929
Outlook – Asia Pacific & Other Regions
TEL products
• Benefit from Telstra deal in Australia
• Expand our presence in other markets
ELPs
• Growing demand for electronic toys and
educational products
CMS
• Good opportunities in solid state lighting
3030
Conclusion
VTech is a company with market leadership position, a strong
balance sheet and a highly efficient operation…..
…We are well positioned to take advantage of the recovery
in the global economy
3131
Thank You