3Q 2014 / Jan-Sep FY2014
Financial Results Announcement
23 October 2014
• Dynamic International Corporation with diversified business:
2
• Acquired shipyard and set up as AZ Marine Offshore Services (AMOS) to
strengthen the Group’s core marine logistics capability, and expand its ship
repair and maintenance capacity.
• Announced agreement to acquire Kay Lee Roast Meat Joint and set up Kay
Lee Pte Ltd to expand the Group’s food business.
Group Profile
3Q / 9M 2014 Turnover
3
(S$’m)
100
60
20
0
40
80
3Q 2013
$66.86m
3Q 2014
$79.31m
0 9M 2013
$158.02m
9M 2014
$252.08m
(S$’m)
150
50
100
200
250
(S$’m)
0
1
2
3
3Q 2013
$2.01m
3Q 2014
$2.44m
(S$’m)
0
1
2
3
9M 2013
$3.42m
9M 2014
$5.50m
3Q / 9M 2014 Net Profit
4
5
6
4
5
S$’m Jan-Sep 2014 Jan-Sep 2013 % change
Turnover 252.08 158.02 59.5
Gross Profit 26.30 21.37 23.1
Gross Profit Margin 10.4% 13.5% (3.1)
Net Profit After Tax 5.50 3.42 60.6
Net Profit Margin 2.2% 2.2% -
Earnings Per Share 1.13 cts 0.70 cts 61.4
EBITDA 13.56 10.05 34.9
Financial Summary
6
S$’m Jan-Sep 2014 FY 2013 % change
Current Assets 148.27 115.16 28.8
>> including Cash & Bank
Balance; and 28.39 25.68 10.6
>> Bonds (Liquid Assets) 4.24 2.16 96.3
Current Liabilities 131.53 87.40 50.5
Net Working Capital 16.74 27.76 (39.7)
Non-Current Assets 72.00 58.42 23.3
Non-Current Liabilities 2.26 1.52 48.7
Total Assets 220.27 173.57 26.9
Total Liabilities 133.79 88.92 50.5
Shareholders’ Equity 86.48 84.65 2.2
Balance Sheet Summary
7
Key Indicators
Jan-Sep 2014 FY 2013 change
Debtors (S$’m) 62.50 44.09 41.7%
Debtor Turnover (Days) 58 54 4 Day
Creditors (S$’m) 46.52 30.66 51.7%
Creditor Turnover (Days) 50 58 (8 Days)
Inventory (S$’m) 48.19 38.57 24.9%
Inventory Turnover (Days) 57 65 (8 Days)
Capital Expenditure (S$’m) 20.74 8.94 132.0%
Current Ratio (x) 1.13 1.35 (16.3%)
Quick Ratio (x) 0.76 0.88 (13.6%)
Gearing Ratio (x) 0.89 0.51 74.5%
8
Operating Cash Flow Summary
n.m. - not meaningful
S$’m Jan-Sep 2014
Jan-Sep 2013 % change
Profit before Income Tax 6.50 4.05 60.6
Depreciation & Amortisation 6.32 5.64 12.1
Other Non Cash-Flow
Adjustments 0.37 1.14 (67.5)
Operating Cash Flows before
Movement in Working Capital 13.19 10.83 21.8
Changes in Working Capital (10.62) (19.52) (45.6)
Interest & Income Tax Paid (1.41) (0.92) 53.3
Net Cash from (used in)
Operating Activities 1.16 (9.61) n.m.
9
Business Segment S$’m %
Electronics 131.27 52.1
Materials Supply & Marine Logistics
117.46 46.6
Food & Beverage 3.34 1.3
Total 252.07 100.0
Region S$’m %
Asia Pacific 191.93 76.1
Europe 55.62 22.1
North & South America
3.82 1.5
Others 0.70 0.3
Total 252.07 100.0
By Business Segment By Region
F&B
1.3%
Materials Supply
& Marine Logistics
46.6%
Electronics
52.1%
Europe
22.1%
Others
0.3%
North & South
America
1.5%
Asia Pacific
76.1%
Jan-Sep 2014 Turnover
Electronics Business
11
Operational Update
Continue to promote Aztech as the leading broadband and networking brand
Continue to innovate on faster speed HomePlug and Wireless Fibre Gateway
Expand Aztech HOME range of home appliances
Moving Forward
Sales of Electronics in 9M 2014: S$131.27m (increase of 6.3% compared to 9M 2013))
Launch of Aztech HOME new range of home appliances –Slow Juicer, Egg Roll
maker, and Electric Kettle
Introduced Aztech MWR647 4G MI-FI with Built-in PowerBank
Electronics Business
11
HL115EP HomePlug AV
500Mbps Gigabit Ethernet Adapter
with AC Pass Through
HL113EP HomePlug AV
200Mbps Ethernet Adapter with
AC Pass Through
HL117EP HomePlug AV
500Mbps Fast Ethernet Adapter with AC Pass
Through
HL119EP HomePlug AV2
600Mbps Gigabit Ethernet Adapter with Smart Link
HL129EP HomePlug AV2
1200Mbps Gigabit Ethernet Adapter with Smart Link
HL113EW HomePlug AV 200Mbps
with 150Mbps Wi-Fi Extender
HL117EW HomePlug AV 500Mbps
with 300Mbps Dual-band Wi-Fi Extender
Powerline Networking
Products
12
WL559E 300Mbps Wireless Repeater
WL580E Dual Frequency 300Mbps
Wireless Repeater
WL590E Dual Frequency 750Mbps
Wireless AC Repeater
WIPC408HD HD Wireless-N IP Camera
with Pan/Tilt
WIPC403 Wireless-N IP Camera
with Pan/Tilt
HIPC700 500 Mbps HomePlug
IP Camera
Wireless Repeater
Wireless-N IP Camera
Products
13
FG7003GRV 4-Port Wireless-AC
(1600Mbps) Fibre Gateway
FG7008GRV(AC) 4-Port Wireless AC
(2400 Mbps) Fibre Gateway
FG7000GRV 4-Port 300 Mbps Wireless +
Voice Over IP Gateway
DSL5018EN(1T1R) 4-Port ADSL2/2+ 150Mbps Wireless-N
Modem Router with USB Host
DSL5018EN(2T2R) 4-Port ADSL2/2+ 300Mbps Wireless-
N Modem Router with USB host
VDSL5038GRV 4-Port VDSL2 300Mbps Wireless-N
Gateway with USB 2.0 Host
FG8800GRV 4-Port Gigabit Dual-Frequency
Wireless-N Fibre Gateway
Fibre Gateway
ADSL / VDSL
Products
14
Aztech Home
VC2000 Smart Robotic Vacuum Cleaner
AEK1700 Electric Kettle
EG008 LollieEgg Roll Maker
SJ1000 JuiceMAX Slow Juicer
MT400 Air Purifier
MT402 Air Purifier
Products
15
LED Lighting Business
17
Operational Update
Stable revenue contribution from LED lighting business
Set up new factory facilities in China to expand production capacity for LED lighting
New product launch – AZPOSE LED Floodlight and AZEL LED Bedside Lamp
Expand product offerings for commercial and retail markets
Continue to increase brand awareness through participation in
international trade shows, e.g. Hong Kong International Lighting Fair
(Autumn Edition) on 27-30 Oct 2014
Continue to expand business in re-lamping and new projects
Moving Forward
LED Lighting
18
LF212 LF212B 2-feet, 9W 800lm
LF424 LF424B 4-feet, 21W 1600lm
LED Batten Fitting with
Sensor
LED Batten Fitting
LFE207 LFE207B 2-feet, 7W 750lm
LFE414 LFE414B 4-feet, 14W 1500lm
LF212S LF212BS 2-feet, 9W 800lm
LF424S LF424BS 4-feet, 21W 1600lm
LFE207S 2-feet, 7W 750lm
LFE414S 4-feet, 14W 1500lm
LED T5 Fitting
LFC2-104 1-feet, 4W 350lm
LFC2-208 2-feet, 8W 700lm
LFC2-312 3-feet, 12W 1050lm
LFC2-416 4-feet, 16W 1400lm
Lighting Products
AZCESS LF / LFE LED Batten Fitting
AZPAND LFC T5 LED Fitting
18
19
Lighting Products
AZSENCE LDR / LDS / LDRA / LDSA series LED Downlight
AZPRESS / AZPRESS+ LCR series LED Ceiling Light
LDR3H12 3.5-inch, 11W 850lm
LED Downlight
Dimmable LED
Downlight
LDRA824/830 8-inch, round 24/30W
LDR412 4-inch, 11W 850lm
LDS412 4-inch, 11W 850lm
LDR612 6-inch, 11W 800lm
LDRA616/624/630 6-inch, round 16/24/30W
LDSA616/624/630 6-inch, square 16/24/30W
LCR1424 (Lunar) 20W, 1400lm
LCR1424 (Solar) 20W, 1400lm
14-inch LED Ceiling
Light
LCR1930M 30W, 2700lm Dimmable, adjustable colour temperature with Night Light
19-inch LED Ceiling
Light
19
20
Lighting Products
AZPLORE LBHR series LED Bulkhead / 2D Luminaire
Handheld Light / AZCEND Globe / AZIS Spot LED Bulb
LBHR1424 LBHR1424S 14-inch, 24W 1350lm
LBHR1424B LBHR1424BS 14-inch, 24W 1350lm
LED 2D Luminaire
LED Bulk Head
LBHR810 LBHR810S 8-inch, 10W 800lm
LBHR1120 LBHR1120S 10-inch, 20W 1600lm
LBHR1120B LBHR1120BS 10-inch, 20W 1600lm
LHE102 1-feet, 1.5W 170lm, USB rechargeable
LE27G58-6 E27, 6W 550lm
LMR16D24-6 LMR16D36-6 GU5.3, 6W 450lm
20
Lighting Products
AZCEL LT8 series LED Tube
LT8F210 2-feet, 10W 850lm
LT8F419 4-feet, 19W 1800lm
LT8S419 4-feet, 19W 1800lm
LT8B209E LT8BR209E LT8B209EP 2-feet, 9W, 825lm
LT8B418E LT8BR418E LT8B418EP 4-feet, 18W, 1650lm
LT8B522E LT8BR522E 5-feet, 22W 2000lm
LT8B208P LT8B208PEP 2-feet, 8W, 1000lm
LT8B416P LT8B416PEP 4-feet, 16W, 2000lm
LT8B525P 5-feet, 25W 3125lm
LT8G208 2-feet, 8W 800lm
LT8G416 4-feet, 16W 1600lm
21
Business Update
23
Total contribution of 46.6% to Group Turnover in 9M 2014 (S$117.46m)
A major sand importer with multiple sourcing capabilities, supported by sizable fleet of
marine vessels
Acquired shipyard and set up as AZ Marine Offshore Services Pte Ltd
Strengthen core marine logistics capability and expand ship repair and maintenance
capacity
Continue to explore new business opportunities
Provide full-fledged marine transportation &
offshore services
Expand service offerings
Moving Forward
Operational Update
23
24
Services
Vertical integrated system – a one-stop centre
Construction materials in bulk importer
Reclamation
Material supply chain management
Comprehensive and full Maritime Logistic and Husbanding support
Ship repair and maintenance
Customise fabrication works for oil and gas and offshore sector
Efficient lifting and supply support via wide water frontage and dedicated jetty
Provision of barges and tugs support
Dredging Transportation Stevedoring Discharging
Shipyard with site area of 251,500 square feet and water
frontage of 2,475 feet long
Diversified service portfolio includes ship management,
vessel agency, ship chandling and ship brokerage services
Owns 11 tugs, 13 barges, 2 conveyor barges, 2 mooring
boats and 1 passenger launch that can support a wide
range of operations
25
Shipyard
Warehouse And Workshop Storage, Small Craft refurbishments Tugboats
13 Barges
• Az Beijing
• Az Chengdu
• Az Xiamen
• Az Qingdao
• Az Fuzhou
• Az Kunming
• Az Guangzhou
• Az Tianjin
• Az Dalian
• Az Shanghai
• AZ Changi 9
• AZ CHT
• NUSA 14
26
Fleet
Biden Az Xiamen Az Marigold
11 Tugboats
• Az Rose
• Az Sakura
• Az Orchid
• Az Lily
• Az Sunflower
• Az Tulip
• Az Peony
• Az Lavender
• Az Carnation
• Az Iris
• Az Marigold
2 Conveyor Barges
• Aiden
• Biden
1 Launch Boat
• Ciden
2 Mooring Boats
• Az Zavier
• Az Zoey
27
Food Business
28
Food Business
Shiro’s Business Models:
Jade Brand – canned and frozen products
Direct import and sales of premium food products
Agency / Distribution for brands such as Gourmet Chef Packers,
Aux Champs d'Élisé and Junta
Research and develop own range of products
Continue to expand product offerings and distribution services
Focus on promoting product range to food services and retail market in Singapore
With the acquisition of Kay Lee Roast Meat Joint, expand and drive revenue growth for
the Group’s Food Division.
Moving Forward
Operational Update
28
29
Jade Brand
Jade Canned Products
Jade Frozen Products
Finger Food Basa White Fillet Shrimp & Mulluscs
29
30
Premium Food Range
UHP Lobster Meat Canadian Beef
Brome Lake Duck Kurobuta Pork &
Miyazaki Herb Pork
Kagoshima Wagyu Beef
H2O Baked Lobster Foie Gras
30
31
Ready-to-Cook
31
Comex Show, Singapore –
Sep 2014 Hong Kong Computer &
Communications Festival – Aug 2014
Events & Exhibitions
33
IT Fair, Malaysia
– Aug 2014
Digital Lifestyle Expo, Malaysia
– Aug 2014
Events & Exhibitions
34
Events & Exhibitions
Epicurean Market, Singapore
– Sep 2014
Canadian Beef Launch, Singapore
– Sep 2014
35
• Walk for Our Children (17 August 2014) – fund raising
for Singapore Children’s Society
• Mooncake Donation to Charities (Sep 2014) – in
support of Lions Home For the Elderly, Thye Hua Kwan
Family Service Centre and Food from the Heart
CSR Events
36
• SPARK 2014 Table Tennis Tournament (August 2014) –
participated in table tennis competition organised by
Hong Kong Science & Technology Parks
• Yellow Ribbon Prison Run (14 Sep 2014) – charity run to
raise funds for ex-offenders
CSR Events
37
This presentation should be read in conjunction with Aztech Group’s Results for the period ended 30 September 2014 in the SGXNET announcement. This presentation may contain certain forward-looking statements which are based on Aztech Group’s current views, intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside Aztech Group’s control and that could cause actual results, performance or achievements for the Group to differ materially from such statements. Such risks and uncertainties include industry and economic conditions, competition, and legal, governmental and regulatory changes. Consequently, readers are cautioned not to place undue reliance on any forward-looking statements.
For more information, please visit www.aztech-group.com
Corporate Communications: Jesmine Ong [email protected] DID: +65 6594 2276
Disclaimer
38
THANK YOU