Isdn Holdings Limited · SGX:I07
Isdn — FY2023 Earnings Presentation
29 slides from Isdn's earnings presentation, Mar 14, 2024
Slide 1: Full year 2023 results presentation
Full year 2023 results presentation
Slide 2: Disclaimer
Disclaimer This is a presentation of general information relating to the current activities of ISDN Holdings Ltd (“ISDN”). It is given in summary form and does not purport to be complete. This presentation contains forward-looking statements relating to financial trends for future periods, compared
Slide 3: Agenda
1 Our vision and strategy 2 FY2023 results 3 Market update 4 Building ISDN 5 Case study 6 Clean energy update 7 FY2024 outlook
Slide 4: ISDN powers Asia's industrial future
ISDN powers Asia’s industrial future Our automation and sustainability solutions help thousands of companies build a more productive and sustainable future for Asia Cloud Software We have the right technology Hardware Components 10,000+ customers We have the right customers All industrial verticals
Slide 5: Depth of business
We’ve built clear strategic growth over the last 5 years Despite disruptions from COVID-19, supply shortages, semiconductor downcycle and China’s slow recovery, we’ve grown our capabilities, expanded our markets, and gained share over the past 5 years. We are well positioned for growth. Core industr
Slide 6: We are well-positioned to capitalise on clear, long-term market growth
We are well-positioned to capitalised on clear, long-term market growth The market drivers for automation and sustainability are clear, we’re gaining share, and we’re well positioned for cycle recovery. Market growth opportunity is clear We’re well positioned Asia’s technology industry growth 1 • Se
Slide 7: Agenda: FY2023 results
1 Our vision and strategy 2 FY2023 results 3 Market update 4 Building ISDN 5 Case study 6 Clean energy update 7 FY2024 outlook
Slide 8: FY2023 financial performance
FY2023 financial performance Cautious emergence from cyclical headwinds 1 Revenue • Revenue troughed in 1H23 ➔ grew +2% sequentially in 2H23 • ISDN grew +2.4% in China, gained share (market down 4-7%) S$’000 FY2022 FY2023 YoY change • Heavy cyclical impact in Southeast Asia (semiconductor), but ISDN
Slide 9: Revenue performance
1 Revenue performance 100% of revenue impact in 2024 was in cyclical sectors. ISDN continue to hold or gain share across sectors in 2023. 110% of decline from cyclicals: China grew +6.6% on a constant currency In SGD millions Non-cyclicals continued to grow basis; decline driven by cyclicals in SE A
Slide 10: Signs of recovery, but we remain cautious
1 Signs of recovery, but we remain cautious Manufacturing PMI threads above benchmark for third consecutive month China Caixin Manufacturing PMI Index 55.0 2H2022 1H2023 2H2023 1H2024 53.0 51.0 50.5 50.7 50.8 50.6 Benchmark 49.8 49.0 47.0 ANGGOCI/ SISIRA 45.0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Slide 11: Gross margins and operating expenses
2 3 Gross margins and operating expenses Gross margins primarily driven by cyclical mix shift. Operating expenses at disciplined levels to maintain investment in growth S$’000 FY2022 FY2023 YoY change Gross Margin • 1.9ppt decline is primarily cyclical, as higher-margin revenue Revenue 370,779 341,7
Slide 12: Profitability
4 Profitability It’s clear from our analysis that 2023 earnings were impacted by cyclical factors. We expect profitability to recover with the cycle and grow faster than our markets. Net profit bridge: FY2022 to FY2023 S$23.1m –S$8.3m +S$1.8m S$11.2m –S$6.5m ANGGOCI/ +S$1.1m SISIRA FY2022 Mix-shift
Slide 13: Agenda: Market update
1 Our vision and strategy 2 FY2023 results 3 Market update 4 Building ISDN 5 Case study 6 Clean energy update 7 FY2024 outlook
Slide 14: Strong growth forecasted for the SEA semiconductor industry
Strong growth forecasted for the SEA semiconductor industry SEA business to recover alongside semiconductor industry in FY2024 SEA Semiconductor Revenue Growth 140.0 25.0% 21.9% 120.0 130.1 17.9% 119.8 20.0% 100.0 110.4 14.5% 97.6 100.9 94.5 92.1 15.0% 80.0 80.7 77.5 75.9 9.6% 60.0 70.4 9.4% 8.6% 8.
Slide 15: Structural growth drivers in China
Structural growth drivers in China Demographic, self-reliance, and policies contributing to the high-paced growth Demographics and labour costs The need for self-reliance • Ageing population and low fertility rates: China’s • US-China tensions: Strengthened the determination of population is on a de
Slide 16: Attractive growth from Industry 4.0 in ASEAN
Attractive growth from Industry 4.0 in ASEAN ISDN is at the right place at the right time with the right capabilities Industry 4.0 opportunity The ISDN advantage • “Next-generation Industry 4.0 technologies and mounting pressures on companies to lower their greenhouse gas emissions, are creating new
Slide 17: Long-term growth drivers have strengthened during downcycle
Long-term growth drivers have strengthened during downcycle China policy, wages, economic development all require automation growth Stronger ISDN long-term fundamentals • China policy focus+stimulus for automation • Wage escalation in China • Changing demographics → fewer Secular workers • US-China
Slide 18: Agenda: Building ISDN
1 Our vision and strategy 2 FY2023 results 3 Market update 4 Building ISDN 5 Case study 6 Clean energy update 7 FY2024 outlook
Slide 19: Why we've kept building through the downturn
Why we’ve kept building through the downturn Companies that drive hard through downturns emerge with significantly stronger growth. => We believe sustained investment will position us well for growth, and we are taking market share as a result McKinsey study of 400+ tech companies through downturn-a
Slide 20: We have grown the depth x breadth of our capability
We have grown the depth ✕ breadth of our capability through the downturn Our investment in capabilities has opened up significant addressable market space for ISDN’s growth, and we have good commercial traction building in our new capabilities. Core industrial automation business Emerging businesses
Slide 21: Agenda: Case study
1 Our vision and strategy 2 FY2023 results 3 Market update 4 Building ISDN 5 Case study 6 Clean energy update 7 FY2024 outlook
Slide 22: Novapeak is a full stack solution provider
Hardware, software, IoT, cloud, AI Novapeak automates human-based is a full stack are all integrated into next-gen solution that is operating today building inspection in a safer, faster, 100% attentive full stack solution. solution provider Full stack Cloud, AI and • AI and AI control • Cloud Indus
Slide 23: Apply machine learning to monitor and maintain turbochargers
Apply machine learning to ISDN software and solutions worked monitor and maintain to integrate IoT sensors, real time data analytics, and machine learning turbochargers to optimise the performance of a critical industrial system Full stack • Machine learning based on Cloud, AI and • AI and AI contro
Slide 24: Agenda: Clean energy update
1 Our vision and strategy 2 FY2023 results 3 Market update 4 Building ISDN 5 Case study 6 Clean energy update 7 FY2024 outlook
Slide 25: Powering Asia's sustainable future
Powering Asia’s sustainable future Early vision will result in impressive long-term results 2013 Identified the opportunity 2019 Set-up new business focus 2023 Milestone year 3 24.6 MW ~S$8m 2 Commercialised mini- Total power generation Recurring net cash income New mini-hydropower hydropower plants
Slide 26: Multi-year growth prospects in clean energy
Multi-year growth prospects in clean energy Servicing a massive and growing market opportunity RE1 realisation short of target $2bn to $5bn in investment per year indicates need for acceleration needed for Indonesia’s 2030 renewables target Targeted Accumulated New Capacity by Year Development of RE
Slide 27: Agenda: FY2024 outlook
1 Our vision and strategy 2 FY2023 results 3 Market update 4 Building ISDN 5 Case study 6 Clean energy update 7 FY2024 outlook
Slide 28: ISDN's focus for FY2024
ISDN’s focus for FY2024 Capitalise on strong business model to drive incremental growth EMERGE STRONGER ➢ Keep building capability and customer relationships in downturn from China and ➢ Protect market share, position well for recovery semiconductor downcycle CAPITALISE ➢ Drive continued growth in c
Slide 29: Investor Q&A
Investor Q&A