SVI Public Company Limited. Q Result

Transcription

1 SVI Public Company Limited Q Result

2 Overview Who We Are A full turnkey, box build EMS company, providing comprehensive services primarily to large OEMs serving Industrial, Medical, Communication Component, and Niche Telecom markets with factories located in SEA. 2

3 SVI Manufacturing Plants-Asia Location 1 : Bangkadi Industrial Park SVI HQ SVI-2B SVI-2A Land (Sqm.) 71,000 Land (Sqm.) 20,400 Building (Sqm.) 17,000 Production space (Sqm.) 12,200 Production focus Head office & development center Production focus Support high volume and clean room class 7 SVI-2M Land (Sqm.) Included in SVI5 Land (Sqm.) Included in SVI5 Production space (Sqm.) 6,350 Production space (Sqm.) 6,400 Production Support Hi-Mix Product focus and Hi-Volume Focus Support industrial Location 2 : SVI Cheangwatana, Nonthaburi SVI-5 Location 3 : Phnom Penh, Cambodia SVI CWT Land (Sqm.) 62,500 Land (Sqm.) 21,400 Production space (Sqm.) 17,450 Production space (Sqm.) 9,700 Production focus High volume and Product Support Hi-Mix micro electronics Focus products SVI AEC Land (Sqm.) 67,000 Production space (Sqm.) 7,600 Product Focus Under Construction 71,000 sq. meter of floor space available for production 3

4 SVI Manufacturing Plants-Europe Manufacturing ( 3 Plants) Product Design (2 offices) SVI Austria (Deutschlandsberg) Sementis Engineering GmbH, Korneuburg, Austria Land (Sqm.) 12,000 Capabilities: Building (Sqm.) 7,300 Product Design & Development, Hardware & Production focus PCBA, Box Build, System Software Build & Test PCB layout, Electronic Design, Firmware, Cables 3D CAD & Mechanical Design User interfaces, Complete Test Solutions, SVI Hungary (Ajka) Certification and Compliance Testing Land (Sqm.) 25,000 Production space (Sqm.) 3,000 Production Sub-con factory under SVI focus Austria; manual insertion (THT), wave soldering, conformal coating, box build, test SVI Slovakia (Liptovsky Hrádok) Land (Sqm.) 28,000 Production space (Sqm.) 6,000 Production focus PCBA (THT & SMT), Box Build, Cable & Harness Assembly, Conformal Coat Emsiso (Embedded System Solutions) Maribor, Slovenia Capabilities: Similar to Sementis but with an Englishspeaking team Focus is on embedded systems design Deep expertise in e-mobility (e.g., battery mgmt systems for electric vehicles) Use different SW for EE & ME design 16,300 sq. meter of floor space available for production 4

5 SVI Full Recovery Before Fire : SVI HQ production facility 33,000 sq.m. was fire on 12 November 2014 with 14 SMT lines We are 100% fully recover. CWN 9,700 sq.m. was started production and delivery on 12 December 2014 to the customer with 30% resumed capacity. 2B 6,500 sq.m was renovated and start production end of January 2015 with 60% resumed capacity. 2A 12,500 sq.m. was renovated and start production end of March 2015 with 100% resumed capacity. Added more spaces, SVI 2M 6,500 sq.m. and start production since November 24 high speed and high end SMT New production of COB capability and clean rooms SVI AEC SVI EU

6 Acquisition Strategic drive initiative 1. Our major customers are using EU EMS for some logistic and flexibility benefit. 2. All SVI key customers prepare to give more business to SVI if we have new sides in EU. 3. SVI has very high reputation in Scandinavian market, fully ready now to enhance our foot print. Marketing strategies 1. Utilize SVI EU to benefit more to customers who are in system build, high logistic cost issues and required more local flexibility. 2. Closer engineering and production support for all new products launch 3. European certification to gain more market share of products with higher products qualification, medical and automotive. 4. Local communication to gain more market shares in Austria, Germany and other Southern EU 6

7 Manufacturing strategies SVI Thailand 1. High end tech 2. Material incentive 3. Automated lines 4. Central material management 5. DMS SVI AEC 1. SVP 2. Labor incentive 3. Distribution 4. GSP SVI EU 1. System build 2. Logistic driven 3. EU certification products 4. R&D 7

8 Full value realization SVI Thailand SVI AEC SVI EU 8

9 SVI EU

10 Business Fit & Strategic Expansion Market fit excellent match to SVI Seidel s focus is on Industrial, Automotive, Medical, Power Electronics, Transportation Geographic Facilities locations 90% of Seidel business is in Germany, Switzerland & Austria ( GSA ), where SVI is underpenetrated Customer base Seidel s customers are leaders in above industries in Europe Facilities locations perfect site locations to support GSA for NPI + low-cost production in HU & SK; logistics 10

11 Synergies Driving Revenue Growth GSA*/US customer base often require lower-cost Asian manufacturing. SVI s Nordic/EU customer base often require production in Eastern Europe. The combined company puts us in a position to compete & win vs Flex Hungary, ENICS Slovakia, Fideltronik Poland, et. al., and opens opportunities for global projects and access to bigger customers. * GSA = Germany, Switzerland, Austria

12 Seidel s Current Profile MARKET SEGMENTS As Percentage of Sales COMPLEXITY OF PRODUCTS As Percentage of Sales 15% Rail Technology Other 30% Measuring & Control Technology 45% Motion Business

13 New businesses that can be achieved with new set up that was not available previously Gain very strong EMS market positions in Austria, Switzerland and Southern Germany System build Transportation system High reputation EU product certification such as medical and automotive R&D and EU prototype services EU distributions and after sale services

14 Shareholders Structure Major Shareholders as of December 30, ,264, ,002, EAGLE MOUNT ASIA EQUITIES LIMITED. 37,652, HSBC (SINGAPORE) NOMINEES PTE LTD 36,864, N.C.B.TRUST LIMITED-NORGES BANK 11 32,822, STATE STREET BANK AND TRUST COMPANY 28,329, STATE STREET BANK EUROPE LIMITED 27,571, ,657, ( ) 21,120, ,265, ,200, ,265,749, Free Float, 55.1 Strategic, 44.9 Total paid up = 2,265,749,381 shares Source: 14

15 Financial Highlight

16 Revenue Forcast Revenue rapid growth (USD million) FC2016 FC2017 FC2018 FC2019 FC2020 Continuous Growth Continuous Growth + Combodia Continuous Growth + Combodia + Europe 16

17 FY 2015 Highlights Operating Performance Revenues of Baht 8.1 billion, reduced 2% from previous year as the Company was in recovery mode after fire. Gross margin of 11% related to less revenue and higher depreciation costs related to new machine and buildings improvement invested after fire. Normalized ROE, ROA and EPS is 10.0%, 6.8% and Baht 0.24 respectively. Balance Sheet Balance sheet is healthy with leverage at historical low: Debt to Equity 0.38x; Debt to Assets 0.27x; Net Cash positive No loan from bank Cashflow & Capex Cash flow generated from operation at Baht 342 million, cash balance of Baht 2,993 million, mainly related to receive insurance payment of fire damages at Baht 1,643 million, partially offsetting with high working capital spent for supporting the business that back to normal after the fire. Capital expenditure amounts to Baht 1,149 million, includes renovation works and purchase of new equipment replacing those damaged by fire. 17

18 Revenue Operating Trends Revenue continues to recover (Baht million) (Baht million) 8,600 8,400 8,200 8,000 7,800 8,079 8,445 7,704 8,006 8,295 8,119 3,000 2,500 2,000 1,500 2,100 2,256 2,650 1,290 1,397 2,317 2,365 2,041 7,600 1,000 7, ,200 - Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 18

19 Sales Breakdown in % Focus on value-added products and the wealthy markets of Scandinavia 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Product portfolio increasingly dominated by the high-margin niche segments 4% 4% 3% 5% 5% 51% 45% 47% 49% 36% 35% 33% 61% 60% 62% Niche Industrial Control Medical 1% 21% 78% Strong presence in the stable and wealthy (AAArated) Scandinavian markets 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 6% 6% 7% 9% 8% 10% 3% 3% 4% 5% 5% 4% 3% 1% 7% 4% 6% 6% 25% 24% 17% 20% 19% 62% 62% 64% 63% 64% Scan Global Europe ROW USA 12% 71% Sales by Market Sector Sales by Region 19

20 Quarterly Operating Trends Gross Profits & EBITDA (in Mil Baht) Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Gross Profit % GP of Revenue 12% 10% 12% 18% 8% 13% 14% 8% EBITDA , % EBITDA of Revenue 15% 13% 19% 76% 21% 54% 11% 24% Net Profits (in Mil Baht) Description Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Net Profit (1,255) 276 1, Less: Extra ordinary Items - Flood / Fire damages 2, Insurance Comp. (104) (62) (212) (852) (180) (1,002) (3) (458) Normalized Net Profit % of Revenue 2% 9% 9% 13% 8% 8% 9% 1% 20

21 Annual Operating Trends Gross Profits & EBITDA (in Mil Baht) in million baht Gross Profit 889 1, , % GP of Revenue 11% 13% 10% 10% 12% 11% EBITDA ,602 1,843 2,070 2,276 % of EBITDA Revenue 11% 11% 21% 23% 25% 28% Net Profits (in Mil Baht) Description Net Profit 735 (1,275) 1,250 1,623 (304) 2,029 Less: Extra ordinary Items - Flood / Fire damages - 1, , Insurance Comp. - - (744) (1,063) (1,231) (1,643) Normalized Net Profit % of Revenue 9.1% 8.4% 7.0% 7.0% 8.9% 6.7% 21

22 Annual Balance Sheet Mil Baht Total Assets,6,9,9 6, 79 6, 7,7 Financial Dept Total Liabilities,767,7,,,78, 7 Shareholders Equity,8 6,, 7,,6 9,68 Debt to Equity Ratio Financial Debt /EBITDA of SVI balance sheet Deleverage Financial debt completely repaid in Q

23 Capex Robust capex spending expected this year in order to build capacity in anticipation of stronger demand 2013 Capex Spending Capex in 2013 was Baht 138 M, including renovation works for Baht 50 M 2014 Capex Spending Capex in 2014 was Baht 233 M, mainly for renovation of office at HQ & Production space of Baht 75 M and Baht 158M for M/C and others 2015 Capex of Baht 1,149 M. Mainly for renovation of buildings and purchase of new machine Y2011 Y2012 Y2013 Y2014 Y2015 Bldg & Imp. Machine others 23

24 Annual Key Financials Data in Baht Million Financial Ratios Revenue (excl. other income) 8,079 8,445 7,704 8,006 8,295 8,119 EBITDA ,602 1,843 2,070 2,276 Net Profit 735-1,275 1,250 1, ,029 Gross Profit (%) 11.0% 12.8% 9.7% 9.7% 12.4% 11.4% Net Profit on Sale (%) 9.1% -15.1% 16.2% 20.3% -3.7% 25.0% Annualized ROA (%) 14.60% % 24.70% 26.40% -4.20% 25.90% Annualized ROE (%) 27.72% % 51.78% 42.93% -7.11% 37.18% Current Ratio (Time) Interest Bearing Debt to Equity D : E Ratio P/BV Ratio P/E Ratio Baisc EPS (annualized)

25 Annual Key Financials Data in Baht Million (Normalized) Financial Ratios Revenue (excl. other income) 8,079 8,445 7,704 8,006 8,295 8,119 EBITDA Net Profit Gross Profit (%) 11.0% 12.8% 9.7% 9.7% 12.4% 11.4% Net Profit on Sale (%) 9.1% 8.4% 7.0% 7.0% 8.9% 6.7% Annualized ROA (%) 14.60% 14.50% 10.70% 9.10% 11.00% 6.80% Annualized ROE (%) 27.72% 21.65% 15.41% 14.38% 13.40% 10.04% Current Ratio (Time) Interest Bearing Debt to Equity D : E Ratio P/BV Ratio P/E Ratio Baisc EPS (annualized)

26 Fire Damages Claim Status In Mil Baht Description Damages Recorded Status - Fixed Assets 747 Settlement by Q Stocks 1,604Settlement by Q BI Additional Exps up to Settlement by Q2 16 Total losses recorded 2,509 Already received Baht 2.5 Billion for interim payment 26

27 Dividend Policy and Historical Dividend Policy The policy is to pay dividend of at least 30% of consolidated net profit after deductions of all reserves required by law and the Company. However, it depends on operating performance, cash flow, investment plans, financial status, restriction of laws and other considerations as deemed appropriate for the Company and its Subsidiaries. The payment of dividends is subject to final approval from the shareholders. Dividend Historical Fiscal Dividend / Share % of Total Year Year Normalized Net Profit (interim) (stock 57 dividend; 7:1) 2011 No Dividend (flood)

28 Thank You Commitment to Superior Service and Highest Quality Thank You SVI Public Company Limited Investor Relations Department Tel # This presentation has been prepared solely for informational purposes. It does not constitute an offer or sale or a solicitation of an offer to purchase securities. Neither this presentation nor any part of it shall form the basis of, or be relied on in connection with, or act as an inducement to enter into, any contract or commitment whatsoever. Any decision to purchase or subscribe for any securities of the Company must be made on the basis of a thorough review of publicly available information of the Company, including information made publicly available pursuant to the requirements of the Securities Exchange of Thailand and the Thai Securities Exchange Commission.