Homeritz Corp. Bhd. · MYX:HOMERIZ
Homeritz Corp. Bhd — FY2010 Earnings Presentation
30 slides from Homeritz Corp. Bhd's earnings presentation, Nov 1, 2010
Slide 1: Investors' Briefing: FY10 Financial Results & Corporate Update
1 HOMERITZ CORPORATION BERHAD (805792-X) Investors‟ Briefing FY10 Financial Results & Corporate Update 1 November 2010 IR Adviser
Slide 2: Presentation Outline
About Homeritz About Homeritz Business Strategies Financial Highlights Investment Case 2 About Homeritz Business Strategies FY10 Financial Review Investment Case Best of its kind… Presentation Outline
Slide 3: About Homeritz
3 ABOUT HOMERITZ A homegrown story par excellence…
Slide 4: Corporate Profile
About Homeritz About Homeritz Business Strategies Financial Highlights Investment Case 4 High-quality upholstered home furniture manufacturer… Founded in 1997, Homeritz manufactures a full range of quality upholstered furniture Sofas, dining chairs & dining tables, and bed frames Undertakes Or
Slide 5: Corporate Structure
About Homeritz About Homeritz Business Strategies Financial Highlights Investment Case 5 Fully-focused on manufacturing of upholstered furniture… HOMERITZ CORPORATION BERHAD Home Upholstery U.S. Furniture Industries Sdn Bhd Manufacturing Sdn Bhd („HUI‟) („USF‟) (100%) (100%) Research & Development /
Slide 6: Industry Classification
About Homeritz About Homeritz Business Strategies Financial Highlights Investment Case 6 Upholstered furniture of higher-value add in the industry… Furniture Office Furniture Home Furniture Non-Upholstered; i.e. Upholstered Wooden Home Furniture Home Furniture Best of its kind… Industry Classificati
Slide 7: Corporate Milestones
About Homeritz About Homeritz Business Strategies Financial Highlights Investment Case 7 Marking founder’s vision of being a global and growing player in the premium home furniture industry 1997 • Commenced manufacturing of upholstered sofas in rented factory ∙ Began maiden exports to Singapore 1999
Slide 8: Accolades
About Homeritz About Homeritz Business Strategies Financial Highlights Investment Case 8 Corporate awards cement our reputation in the market… Received the Golden Bull Award in 2008, ranking 1st out of 100 outstanding SMEs Won the Malaysia Top 50 Enterprise Award for 2 consecutive years in 2008
Slide 9: Vision & Mission
About Homeritz About Homeritz Business Strategies Financial Highlights Investment Case 9 Setting sights to be a formidable player in the global playing field… To be one of the top 10 Asian players in supply of conceptualized lifestyle home furniture VISION worldwide; recognized for its brands, des
Slide 10: Business Model
About Homeritz About Homeritz Business Strategies Financial Highlights Investment Case 10 Integrated operations within close proximity result in quicker time-to- market… new capacity to be on board in 2Q11 Own Design (ODM) Wholesalers Manufacture Exports Customers‟ Retailers Design (OEM) FACTORY A (
Slide 11: Product Range
About Homeritz About Homeritz Business Strategies Financial Highlights Investment Case 11 Comprehensive range of products for mid- to high-end homes… premium furniture the precursor to premium margins Upholstered Sofas Upholstered Dining Chairs & Dining Tables Upholstered Bed Frames Best of its kind
Slide 12: Customer Base
About Homeritz About Homeritz Business Strategies Financial Highlights Investment Case 12 Attained global clientele in just over a decade… innovation and dedication to quality the key success factors Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Portugal, Sweden, Sw
Slide 13: Key Management
About Homeritz About Homeritz Business Strategies Financial Highlights Investment Case 13 Expertise in product & design innovation… Mr. Chua Fen Fatt Managing Director – Founder of the Group with 23 years’ hands-on experience in the upholstered furniture industry – Primarily responsible for the over
Slide 14: Key Shareholders
About Homeritz About Homeritz Business Strategies Financial Highlights Investment Case 14 Founders still holding majority stakes… shareholders include key institutional shareholders As at 31 October 2010 No. of Shares % Chua Fen Fatt 71.8 mil 35.9% Managing Director Tee Hwee Ing 71.8 mil 35.9% Execu
Slide 15: Business Strategies
15 BUSINESS STRATEGIES Engaging on expansion mode…
Slide 16: Competitive Edge
About Homeritz Business Strategies Financial Highlights Investment Case 16 Entrenched in the higher value-add furniture sector… Group to embark on new growth phase with own brand Entrenched in the Provider of complete Integrated Continuous product higher value-add range of upholstered manufacturing
Slide 17: Growth Strategies
About Homeritz Business Strategies Financial Highlights Investment Case 17 Focused on broadening our Group’s revenue base… To continue undertaking product development • To design approx 250 new models of products in FYE2011 • To invest at least 1% of annual revenue for R&D activities To penetrate de
Slide 18: FY10 Financial Review
18 FY10 FINANCIAL REVIEW Decent financial track record…
Slide 19: Revenue Trend
About Homeritz Business Strategies Financial Financial Highlights Highlights Investment Case 19 Maintenance of high profit margins proof of high value-add in products… RM „mil Group Revenue (RM „mil) Gross Margin Group Revenue Gross Margin 120 60% 100 50% 80 40% 30.0% 29.5% 60 22.7% 22.3% 30% 18.6%
Slide 20: Revenue Segmentation: Products
About Homeritz Business Strategies Financial Financial Highlights Highlights Investment Case 20 Upholstered home furniture remaining major contributors… Revenue Segmentation: Products 3% 3% 2% 1% 2% 2% 100% 1% 5% 13% 16% 13% Others 18% 80% 51% 44% 31% 30% 28% Bed Frames 60% 43% Dining Chairs 40% 45%
Slide 21: Revenue Segmentation: Geographic
About Homeritz Business Strategies Financial Financial Highlights Highlights Investment Case 21 Fastest growth from the Americas from targeted strategies… FY2010 Revenue: RM110.0 mil 7.8% yoy 17.3% yoy Country FY2010 FY2009 76.8% RM‟ mil % RM‟ mil % yoy Europe 59.91 54.5% 64.95 59.9% Australasia 27.
Slide 22: Income Statement
About Homeritz Business Strategies Financial Financial Highlights Highlights Investment Case 22 Commendable profit despite forex challenges and uncertainty in end- markets… Operations Review: RM‟mil FY10 FY09 Chg 1) Revenue in USD increased 8% due to increased volume, & overall upward adjustment of
Slide 23: EBITDA & Net Profit Trends
About Homeritz Business Strategies Financial Financial Highlights Highlights Investment Case 23 Margins still higher than FY2008 levels… RM „mil Margins EBITDA & Net Profit (RM „mil) 30 30% 24.7% 21.4% 20 16.7% 16.2% 20% 20.9% 12.6% 12.2% 18.2% 14.2% 13.4% 10 10% 10.1% 10.3% 10.5 12.4 22.7 20.1 12.3
Slide 24: Balance Sheet
About Homeritz Business Strategies Financial Financial Highlights Highlights Investment Case 24 Healthy net cash position grants the Group ample flexibility… Proforma Balance Sheet („000) As at 31 Aug 2009 As at 31 Aug 2010 PPE & Prepaid Lease Payments 28,094 28,300 Current Assets 40,567 44,545 Curr
Slide 25: Key Financial Ratios
About Homeritz Business Strategies Financial Financial Highlights Highlights Investment Case 25 Maintained commendable degree of operational efficiency… FY2009 FY2010 Return on Average Equity 60.0% 42.9% Return on Average Assets 36.6% 28.3% Average Inventory Turnover 57.3 days 68.1 days Average Debt
Slide 26: Dividend Trend
About Homeritz Business Strategies Financial Financial Highlights Highlights Investment Case 26 50% of FY10 net profits to be paid out as dividends… Homeritz has a dividend policy of sen Dividend Trend paying 40% of net profits to shareholders 2.5 FY2010 would see special dividend 2.0 payout of
Slide 27: Investment Case
27 Investment Case
Slide 28: Investment Merits
About Homeritz Business Strategies Financial Highlights Investment Case 28 Much upside given impressive dividend yield and maintained high net margins… Historical PE Market Cap ('mil) Annualised PE FY Div Yield @ Company Ticker Last Price (x) Net Margin (x) 27.10.10 Local currency @ 27.10.10 Eurospa
Slide 29: Investment Merits
About Homeritz Business Strategies Financial Highlights Investment Case 29 Homeritz: Gem in an unappreciated industry… minimum 40% payout dividend policy already put in place Manufacturer of a full range of high-quality upholstered home furniture, commanding high margins Single-digit PE offers Stron
Slide 30: Thank You
30 Thank You Contacts: Tee Hwee Ing E:[email protected] T: +606 - 9865 000 Wee See Yee E: [email protected] T: +606 - 9865 000 Julia Pong E: [email protected] T: +6012- 3909 258
Homeritz Corporation Berhad — FY2010 Earnings Presentation on 6ix