Advanced Holdings Ltd. · SGX:BLZ
Advanced — FY2006 Earnings Presentation
23 slides from Advanced's earnings presentation, Feb 23, 2007
Slide 1: FY 2006 Results Briefing
Advanced Holdings Ltd. FY 2006 Results Briefing 23 Feb 2007
Slide 2: FY2006 Financial Performance
FY2006 Financial Performance Oil & Gas Petrochemical & Chemical Power Generation Micro-electronics
Slide 3: Revenue
Revenue Lower revenue due to delay in securing expected large-value contracts, particularly the petrochemical & chemical projects 50 40 -38% 30 S$'m 20 38.9 24.0 10 0 FY05 FY06
Slide 4: Revenue by Geography
Revenue by Geography • Strong improved contribution from New markets • Strong improved contribution from Singapore due to CAE • Decline in contribution from China due to delay in securing expected projects Singapore: 15% (FY05: 1%) Korea: 13% (FY05: 18%) China: 55% Asia: 8% (FY05: 78%) FY06 (FY05: 1
Slide 5: Revenue by Industries
Revenue by Industries • Delays in Securing expected Petrochemical & Chem. Projects • Sharply improved contribution from more O&G projects Iron & Steel: 13% (FY05: 6%) Oil & Gas: 40% (FY05: 24%) Micro-Electronics: 5% (FY05: 2%) Others: 2% FY06 (FY05: 0%) Petrochem. & Chem.: 40% (FY05: 68%)
Slide 6: Cost Structure
Cost Structure S$’m FY06 FY05 Change (%) Revenue 24.0 38.9 (38.1) Cost of sales 15.4 26.4 (41.7) Distribution cost 2.1 2.1 (1.2) Administrative expenses 3.1 1.6 +100.8 Other operating expenses 0.6 0.6 +0.7 Finance cost 0.02 - N.M. Taxation 0.06 1.4 (96.1) Total Costs 21.2 32.1 (33.7) Net Profit 3.5
Slide 7: Net Profit
Net Profit 8 -49% Improvement in Gross margins S$'m 4 6.9 3.5 0 FY05 FY06 FY06 FY05 Chg (% pts) Gross margin 36% 32% +4 pts PBT margin 15% 22% -7 pts Net margin 15% 18% -3 pts
Slide 8: Balance Sheet
Balance Sheet FY06 FY05 Change S$’m S$’m % Non-current assets 1.7 1.4 +21 Current assets 38.6 23.1 +62 Bank FD + Cash & Bank balances 27.3 9.8 +179 Total assets 40.3 24.5 +59 Current liabilities 8.5 10.5 -29 Shareholders’ equity 31.7 14.1 +124 Strengthened cash position of S$27.3m from S$9.8m Cash →
Slide 9: Key Financial Indicators
Key Financial Indicators As at 31 Dec FY06 FY05 Change EPS (in Singapore cents) 1.42 3.09 -58% NAV (in Singapore cents) 12.20 6.26 +95% Efficiency Ratios FY06 FY05 Change Return on Asset 9.0% 28.2% -18.8% Return on Equity 11.5% 49.3% -37.8% Activity Ratios FY06 FY05 Average Debtors Turnover 3.64 tim
Slide 10: Dividend Payout
Dividend Payout Total tax-exempt cash dividend of SGD 0.60 cents per ordinary share * Final Tax-exempt cash dividend for the year is SGD 0.35 cents per share * Date of dividend payment to be announced later * An interim dividend of SGD 0.25 cents per ordinary share was paid on 6 Oct 2006
Slide 11: Key Achievements in FY2006
Key Achievements in FY2006 Oil & Gas Chemical & Petrochemical Power Generation Micro-electronics
Slide 12: Organic Growth
Organic Growth New subsidiaries to grow clean & bio fuel business Advanced Clean Fuels Pte. Ltd. - Singapore → To invest & own clean fuel and biofuel process technologies and equipment related businesses Advanced Biofuel Technologies Sdn Bhd - Malaysia → To serve as the Group’s investment vehicle in
Slide 13: Strategic Technologies & Products
Strategic Technologies & Products Increase portfolio in the area of Clean Fuel/Biofuel • Axens (Feb 06): Exclusive project agreement to market Axen’s selective hydrogenation process & technology • DuPont (Jun 06): Extended exclusive agreement to cover South Korea, Singapore and Thailand • Advanced C
Slide 14: Strategic Investments
Strategic Investments Strategy 1. Acquire/Invest in companies in similar or complementary industries 2. Invest/acquire strategic products & technologies 3. Secure/Engage Strategic Investment Partners • Advanced Corporate Finance Team constantly seeking and assessing attractive and good investment op
Slide 15: Capability Investments
Capability Investments Professional and technical competencies → Increased staff strength, particularly for sales and engineering team → Collaborate with our European and American technology partners to improve our technical competencies Management and professional services team → New independent di
Slide 16: Going Forward …
Going Forward … Oil & Gas Chemical & Petrochemical Power Generation Micro-electronics
Slide 17: Growth Strategies
Growth Strategies Organic Growth + Strategic Technologies & Products + Investing now for future growth Continued focus on high operational + efficiency and strong cost control Capabilities Strategic Investments + COSTInvestments EFFICIENCIES
Slide 18: Growth Strategies
Growth Strategies Process Instrumentation, Process Licensing & Systems Packaging Emissions • Design & Supply Process Equipment & Technologies to plants in Oil & Gas, Petrochemical industries to improve operations, safety and efficiency • Our traditional business Acid gas • Field services (Installati
Slide 19: Future Plans & Prospects
Future Plans & Prospects Large scale projects in the Petrochemical & Core Chemical + Oil & Gas industries business Expand our geographical coverage and improve our proximity to our customers Invest in companies with strategic alignment, Clean / technologies and high earning growth potentials Bio-fue
Slide 20: Future Plans & Prospects
Future Plans & Prospects New clean fuel contracts as platform to grow Core clean fuel refinery technologies and equipment business in Asia Cleaner fuel required by law to meet emission standards PRC to meet EURO 4 emission standard by 2008 Clean / Bio-fuel Refining capacity crunch Additional 50 - 70
Slide 21: Future Plans & Prospects
Future Plans & Prospects Core To become an integrated provider of process business technologies, equipment and services in the areas of clean and biofuels in the region. Clean / Design & supply clean fuel process equipment & technologies Bio-fuel Enviro Soln
Slide 22: Future Plans & Prospects
Future Plans & Prospects Core To become a provider of environmental solutions business in zero-discharge industrial effluent treatment Design & supply environmental process equipment & technologies and solutions to industrial plant owners Clean / Assist customers in managing and solving their Bio- f
Slide 23: Question & Answer Session
Question & Answer Session Oil & Gas Petrochemical & Chemical Power Generation Micro-electronics