AZTECH SYSTEMS LTD FY2004 FINANCIAL RESULTS. Analysts and Media Briefing 17 February 2005

Transcription

1 AZTECH SYSTEMS LTD FY2004 FINANCIAL RESULTS Analysts and Media Briefing 17 February 2005

2 Contents of Presentation FY2004 Financial Performance Corporate Update Factory Expansion Plan Outlook for Year 2005 Growth Plans & Strategies Q & A

3 FY2004 Financial Performance

4 Financial Results FY2004 FY2003 Change Turnover $ m $ m 29% EBITA $ m $ 9.87 m 39% Depreciation & Amortization Interest expenses $5.85 m $0.62 m $6.22 m $0.74 m Profit from Operations $ 8.36 m $ 3.17 m 164% Profit Before Tax Tax $ 7.21 m $ 2.91 m $0.37 m $0.08 m 148% Net Profit After Tax $ 6.84 m $ 2.83 m 142%

5 Turnover S$' , % 150, , , , , ,000 50,000 - YR 2001 YR 2002 YR 2003 YR 2004

6 Net Profit / Loss S$'000 10,000 5, % 2,828 6,841 - YR 2001 YR 2002 YR 2003 YR 2004 (5,000) (10,000) (15,000) (20,000) (18,830) (17,924)

7 Product Mix FY2004 Contract Manufacturing 33% Voice Communication 2% Shiro 3% Data Communication 62%

8 Turnover by Geographical Segment Asia Pacific 23% Others 3% FY2004 North and South Americas 34% Asia Pacific 25% Others 1% FY2003 North and South Americas 17% Europe 40% Europe 57%

9 Total Current Assets Balance Sheet FY2004 FY2003 Change $ m $ m 42% Total Current Liabilities $ m $ m 49% Working Capital $ m $ m 31% Non-Current Assets $ m $ m 2% Non Current Liabilities $ 8.28 m $ 8.81 m (6)% Capital and Reserves $ m $ m 14% Total Assets $ m $ m 24% Total Liabilities & equity $ m $ m 24%

10 Key Financial Indicators Profitability FY2004 FY2003 Gross Profit Margin 16.4% 15.6% Net Profit Margin 4.5% 2.4% Balance Sheet Debtors $29.69 m $15.31 m Debtors turnover 71 days 47 days Creditors $30.12 m $24.28 m Creditors turnover 86 days 89 days Inventory $25.47 m $20.76 m Inventory turnover 73 days 76 days Liquidity ratio Current ratio Quick ratio Rate of return (%) ROE 12.4% 5.8% ROA 6.3% 3.2% EPS (diluted shares) 1.70 cents 0.71 cent Capital Expenditure Property, plant and equipment $4.97 m $3.76 m R & D $2.12 m $2.96 m

11 Corporate Update

12 5 Sales Offices : Our Offices & Facilities * Singapore * Hong Kong * USA, Fremont, California * Germany, Frankfurt * Malaysia, Petaling Jaya 2 factories in Dong Guan : * Aztech DG1 (Set-up in 1994) 8,560 sq m * Aztech DG2 (Set-up in 2001) 13,042 sq m 4 R&D Centres : * Singapore * Hong Kong * Shenzhen, China * Dong Guan, China Total employees = 1,700 people

13 Key Products Data Communication * 56 kbps Analog Modem * ADSL2 + Modem * Wireless g devices * HomePlug Voice Communication * DECT Phone * Walkie Talkie

14 Data Communication Products 56K External USB Modem ADSL Ethernet Modem Voice over IP Wireless ADSL Router HomePlug

15 Voice Communication Products SMS Colour DECT Entry level DECT PMR 5000 With Desktop Charger PMR 3000 R

16 Contract Manufacturing ADSL Router Powerline Modem GSM/GPRS Module Video Conferencing CPU Test Board Bluetooth Carkit

17 Shiro Lifestyle Products MP3 Digital Audio Players Telecom Voice Products Digital Camera Products Computer Peripherals

18 OEM / ODM Customers Contract Manufacturing Retail Distribution Sales Channel * Shiro (100% Aztech Subsidiary) - Sales of Aztech Brand Products - Shiro Lifestyle Products

19 Aztech Dong Guan (China) Plant 1 & 2 - DG1 is located at Dong Guan Shi, Chang Ping, Jiu Jiang Shui - Occupied land area of about 6,900 sq metres - DG2 is located at Dong Guan Shi, Chang Ping, Shang Keung - Total built up area: 13,042 sq m TL ISO 9001 Manufacturing facilities in Dong Guan (China)

20 Manufacturing Equipment 21 x High Speed SMT lines 2 x X-Ray & SRT BGA rework station 5 x Manual Insertion Lines 5 x Teradyne 1850/1820 ICT testers 2 x HP3070 Series II ICT testers Burn-In Facilities (static) 8 x Test Lines w/x900, Hi-Pot 5 x DECT Testing Lines 6 x Assy & Packing Lines

21 Chip On Board (COB) COB 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 max of 100 dice.

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

23 Plastics Injection Factory 24 Plastics Injection Machines (80T-250T) Complete services * Plastics parts injection molding * Spray painting * Silkscreen * EMC coating Secondary services * Industrial design * Mechanical design * Tooling production management

24 Factory Expansion Plan.

25 Aztech Dong Guan Plant 3

26 10 New SMT Equipment Investment Universal Instruments Advantis Platforms 10 units of DEK ELA auto-paste printers 25 units of UIC Advantis AC30L 5 units of UIC Advantis AC72 10 units of Vitronic-Soltec XPM2 Reflow ovens

27 Outlook for Year 2005

28 Market Situation Components Inventory starts to ease off recently General economy remains stable and healthy PC C market expects to grow 10% in FY 05 to 208 million units Broadband ADSL lines expect to hit 100 million in early 2005 : * Expects rapid growth in emerging countries * Matured ADSL countries moving into wireless, Video on Demand and VOIP Dect Phone market expects to grow: * More users will upgrade their analog cordless phones to DECT * Growing demand for SMS Colour DECT Phones * Market size expects to be 40 million units in FY 2005

29 New Products In FY 2005 Data Communication * ADSL2 + with VoIP & g wireless Residential Gateway * ADSL2 + with 85Mbps HomePlug * 85Mbps and 200Mbps Audio/Video HomePlug * IP Set Top Box * Entering into Wireless Broadband Internet Access (3G Modem, Wi-max) Voice Communication * VOIP ATA Adaptor * VOIP DECT Phone * IP Phone Moving Into Consumer Electronics: * MP3 Player * Digital Weather Station * Baby Monitor

30 New Products in FY 2005 Flash MP3 Hard Disk Jukebox VoIP DECT ADSL + Homeplug Router IP Set Top Box ADSL + VoIP + Wireless Baby Monitor Personal Mobile Radio Digital Weather Station

31 Growth Plans & Strategies

32 Growth Strategies in FY 2005 FY 2005 : Diversify into more products and gain market share * Aztech DECT Phone and Walkie Talkie available in Qtr Expect Voice Communication to contribute higher sales in FY05 * Gain more sales in Data Communication from emerging markets such as Latin America and Eastern Europe * Expand our Contract Manufacturing customer base * Expect sales of Shiro Lifestyle Products to increase after 1 year in the market Voice Contract Communication Manufacturing 2% 33% FY2004 Shiro 3% Voice Communication 34% FY2005 Forecast Shiro 5% Data Communication 41% Data Communication 62% Contract Manufacturing 20%

33 Challenges in FY 2005 What are the challenges that we face in 2005? Increase in oil price Power shortage in China Price competition from local Chinese companies Strengthening of RMB Rising manpower costs Shortage of manpower

34 Thank You Q & A Visit For media releases, announcements and presentations