Advanced Holdings Ltd. · SGX:BLZ
Advanced — FY2005 Earnings Presentation
27 slides from Advanced's earnings presentation, Feb 22, 2006
Slide 1: Advanced Holdings Ltd. Full Year Results Briefing
Advanced Holdings Ltd. Oil & Gas Petrochemical & Chemical FYE 31 December 2005 Iron & Steel Full Year Results Briefing Power Generation 22 February 2006 1
Slide 2: FY2005 Financial Performance
Oil & Gas Petrochemical & Chemical FY2005 Iron & Steel Financial Performance Power Generation 2
Slide 3: A Record Year
3 A Record Year Sales … of S$38.9 m, +127%* Gross Profit … of S$12.5 million, +138%* Operating Profit … of S$8.4 million, +157%* Net Attributable Profit … of S$6.9million, +170%* Earnings Per Share … of 7.47 cents, +110%* Return on Equity …increase to 49% from 31% Strong performance * FY2005 figures
Slide 4: Continued Growth Momentum
4 Continued Growth Momentum Revenue growth continue to be driven by Petrochemical & Chemical + Oil & Gas sector 50 40 +127% 30 y-o-y S$'m 20 38.9 10 17.1 0 FY04 FY05
Slide 5: Revenue by Geography
5 Revenue by Geography 38.9 40 1.3 35 6.8 30 0.6 25 Others S$'m 20 17.1 Korea Singapore 0.6 2.0 0.4 30.2 China 15 10 14.1 5 China: 78% 0 (FY04: 83%) FY04 FY05 Korea : 18% (FY04 : 3%) Singapore: 1% Others: 3% (FY04: 2%) (FY04: 12%)
Slide 6: Revenue by Industries
6 Revenue by Industries 48 38.9 40 0.7 2.5 Others 32 9.2 S$’m Iron & Steel 24 17.1 Oil & Gas 0.1 1.1 Petrochemical & 16 2.6 Chemical 26.5 8 13.3 0 Petrochem & Chem. : 68% FY04 FY05 (FY04: 78%) Iron & Steel: 6% (FY04: 6%) Others: 2% Oil & Gas: 24% (FY04: 1%) (FY04: 15%)
Slide 7: Profit and Margins
7 Profit and Margins 16 12.5 12 Gross Profit +138% 8.48.4 Operating Profit +157% S$'m 8 6.9 5.2 PBT +157% 4 3.33.3 2.6 Net Profit +170% 0 FY04 FY05 FY05 FY04 Change in % points Gross margin 32% 31% +1 Operating margin 22% 19% +3 All round improve m PBT margin 22% 19% +3 in margi ents ns Net margin 1
Slide 8: Cost Structure
8 Cost Structure S$’m FY05 FY04 Change (%) Revenue 38.9 17.1 +127 Cost of sales 26.4 11.9 +123 Distribution cost 2.1 1.0 +109 Administrative 1.6 1.1 +45 127% revenue expenses growth outpace Other operating 0.6 - N.M. costs increase expenses Finance cost - - N.M. Taxation 1.4 0.7 +109 Total Costs 32.
Slide 9: Balance Sheet
9 Balance Sheet FY05 FY04 Change S$’m S$’m % Non-current assets 1.4 0.9 54 Current assets 23.2 11.5 101 Total assets 24.6 12.4 97 Current liabilities 10.5 4.0 160 Shareholders’ equity 14.1 8.4 67
Slide 10: Key Financial Indicators
10 Key Financial Indicators Efficiency Ratios FY05 FY04 Return on Asset 28.4% 20.7% Return on Equity 49.3% 30.6% Activity Ratios FY05 FY04 Average Debtors Turnover 3.84 times 13.5 times Average Payables Turnover 3.58 times 15.2 times Average Inventory Turnover 2 days 14 days Gearing ratio 0x 0x
Slide 11: Per Share Analysis
11 Per Share Analysis In Singapore cents FY05 FY04 Change S$ S$ % Basic EPS (based on weighted 7.47* 3.56 110% average no. of shares) Weighted Average No. of Shares (in 92.97 72.32 millions) Net asset/share (as at 31 12.52* 9.74 29% December) No. of shares issued (as at 31 112.43 86.48 December) (in
Slide 12: Key Achievements in FY2005
Oil & Gas Petrochemical & Chemical Iron & Steel Key Achievements Power Generation in FY2005 12
Slide 13: Market Development
13 Market Development Strengthened presence in key markets Advanced Controls (China) Ltd • Wholly-owned subsidiary operational in May 2005 • Serves as sales, marketing and support hub for PRC Advanced in the PRC • Able to transact in Chinese currency – greater flexibility in response to the needs of
Slide 14: Progress in Product Development
14 Progress in Product Development Emile • Mar 05: Exclusive selling rights for the whole of PRC Egger • Engineered process pumps and control valves used in & Cie Oil & Gas, and Chemical and Petrochemical industries • Sep 05: Exclusive agreement to market DuPont’s In the area of cleaner fuels STRATC
Slide 15: Strong Interest from Institutions
15 Strong Interest from Institutions Investors have taken notice of Advanced’s financial performance and growth opportunities May Tiedemann Global's stake in Advanced crosses 5% 2005 Dec US fund Wasatch’s stake in Advanced crosses 5% 2005 Placed out 17 million new shares to prestigious institutional
Slide 16: Top share price performer in 2005
16 Top share price performer in 2005 358.8% share price gain “Advanced Holdings…took the top spot in terms of share-price gains over the past year, percentage-wise.” Straits Times, 2 Jan 2006
Slide 17: Top share price performer in 2005
17 Top share price performer in 2005 “Advanced Holdings is the best performing stock in the Singapore market this year…chalked up a total return of 372% in 2005” Business Times Weekend, 31 Dec 2005 – 01 Jan 2006
Slide 18: Going Forward …
Oil & Gas Petrochemical & Chemical Iron & Steel Going Forward … Power Generation 18
Slide 19: Main Growth Drivers for FY2006
19 Main Growth Drivers for FY2006 4-pronged Main growth drivers in FY2006 Strategy Organic Expansion in the PRC and S.Korea Growth New markets: Middle East, India, Africa, South America Regional offices in the pipeline: Thailand, Middle East Strategic In clean fuel incl. alternative fuels Technologi
Slide 20: Clean Fuel Industry Outlook
20 Clean Fuel Industry Outlook Cleaner fuel required by law to meet emission standards PRC to meet EURO 4 emission standard by 2008 Refining capacity crunch “Additional 50 - 70 world size refineries are required to meet estimated demand by 2010…” (ICF Consulting) Most new refineries will be in the P
Slide 21: Clean Fuel Product Development
21 Clean Fuel Product Development Clean fuel technologies for refineries Fuel to meet emission standards (reduce/eliminate pollutants) Emissions Gasoline & diesel blending for refineries Blending system to make on-spec fuel Growth area for Chinese refineries Acid gas removal Technology for alternati
Slide 22: Question & Answer Session
Oil & Gas Petrochemical & Chemical Question & Answer Iron & Steel Session Power Generation 22
Slide 23: Supplement Slides
Oil & Gas Petrochemical & Chemical Iron & Steel Supplement Slides Power Generation 23
Slide 24: PRC Refineries & Ethylene Plants
24 PRC Refineries & Ethylene Plants
Slide 25: Asia-Pacific LNG Demand Growth
25 Asia-Pacific LNG Demand Growth MMT/Y 1996 2000 2001 2005 2010 2015 Japan 45.9 53.6 55.2 57.0 59.1 63.7 S. Korea 9.6 14.6 15.8 18.4 22.8 28.0 Taiwan 2.6 4.3 4.7 7.1 10.6 13.5 India 0.0 5.6 15.0 19.5 China 0.0 0.0 5.0 13.0 Total 58.1 72.5 75.7 88.1 112.5 137.7 Source: Facts, Inc.
Slide 26: Emission Standards – The PRC
26 Emission Standards – The PRC Reference Date Region Euro 1 2000.01 (2000.07†) Nationwide Euro 2 2002.08 Beijing 2003.03 Shanghai Petrol: 2004.07a (2005.07†) Nationwide Diesel: 2003.09 Euro 3 2005.01 Beijing 2007.07 Nationwide Euro 4 2008.01 Beijing 2010.07 Nationwide † Production conformity a Firs
Slide 27: Advanced Holdings Ltd.
Advanced Holdings Ltd. Oil & Gas Petrochemical & Chemical FYE 31 December 2005 Iron & Steel Full Year Results Briefing Power Generation 22 February 2006 27