Steering ahead FY2012 Results Briefing 22 nd June 2012

Transcription

1 Steering ahead FY2012 Results Briefing 22 nd June 2012

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3 AGENDA FY2012 Highlights Business Overview Financial and Operations Highlights Industry Review Outlook & Growth Strategies

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5 FY2012 HIGHLIGHTS Revenue up 6.7% to S$364.1m SEA market up 5.6% to S$276.4m South Africa grew 5.6% to S$38.3m (up 18% in local currency terms) Gross margin stable at 22.1% (FY2011: 23.3%) Dividend per share of S$1.5 cent recommended, representing 36.1% payout ratio comparing (FY2011: 26.5%) Expects FY2013 to be profitable

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7 BUSINESS OVERVIEW One of the largest independent tyre and wheel distributors in South East Asia Presence in 9 countries; with 4,000 dealers Sole distributor for major international brands: International export of proprietary brands

8 OUR BUSINESS MODEL Distribution Manufacturing Overseas Distribution Network Retail Network (tyres for passenger cars, wheels, car services & accessories) Commercial Tyres and Services (Truck and Off the Road OTR tyre management services) Proprietary Brand Tyres (passenger car radial, light truck, truck bus radial) SSW Alloy Wheel (Manufacturing) Retread of Truck and OTR Tyres Central warehousing and distribution in 9 countries 25 Retail Outlets in South East Asia 2 Truck Centers 3 Contract Customer Workshops 7 Mobile Fleet Service Vehicles Export to over 90 countries

9 DISTRIBUTION VALUE CHAIN Major Brands Over 4,000 3 rd Party Retail Outlets Proprietary Brands Distribution Centres 92% of revenue derived from distribution 25 Stamford Retail Outlets 2 Truck Centers 3 Contract Customer Workshops 7 Mobile Fleet Service Vehicles

10 OVERSEAS DISTRIBUTION NETWORK Links to 4,000 dealers/retailers across 9 countries India Thailand China Australia South Africa Malaysia Singapore Indonesia Hong Kong

11 LOCAL PRESENCE Singapore Malaysia Thailand Indonesia Hong Kong China Australia India South Africa

12 SOLE DISTRIBUTION AREAS OF MAJOR BRANDS Brands Falken Continental Countries Singapore, Malaysia, Thailand, Indonesia, Singapore, China, Malaysia, South Thailand, Africa, Indonesia, Mauritius, China, Brunei, South Vietnam, Africa, Cambodia, Mauritius, Myanmar Brunei, Vietnam, and India East Cambodia, Timor, Nepal, Myanmar New and Caledonia, India Southern Africa Singapore Dunlop Toyo OTR and Truck Hong Kong, Macau, Indochina through Tyre Pacific HK Singapore, Brunei, Malaysia and Indonesia

13 INTERNATIONAL EXPORT OF PROPRIETARY BRANDS Network spans more than 90 countries including Eastern Europe, Western Europe, Africa, Latin America and Middle East

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15 STEADY SALES & GP MARGINS S$ mln 400 CAGR of 7.0% 23.3% 23.5% % 23.0% % % 22.0% % % % % 0 FY2009 FY2010 FY2011 FY2012 Revenue 20.0%

16 OVERSEAS EXPANSION Growth in all key markets Turnover by geographical segment FY12 FY11 Change (S$'000) % (S$'000) % % Southeast Asia 276, , South Africa 38, , North Asia 34, , Others 14, , Total 364, ,

17 FOREX MANAGEMENT S$ mln FY2009 FY2010 FY2011 FY

18 FOREX MANAGEMENT SGDZAR 2010/ / SGDZAR 2010/ /12 AVE FX RATE ZAR FY FY FY May '10 Aug '10 Nov '10 Feb '11 May '11 Aug '11 Nov '11 Feb '12

19 FOREX MANAGEMENT To reduce Forex impact to Profit and Loss for South Africa, the Group is taking two steps: Increase equity in South Africa to reduce foreign currency denominated payables Increase local bank borrowings to reduce foreign currency denominated payables

20 GROUP S NET PROFIT S$ mln Net Profit & Margin % % 4.0% % 3.5% % 3.0% % 2.0% 1.5% 1.0% % 1.1 FY2009 FY2010 FY2011 FY % 0.0%

21 FINANCIAL RATIOS FY12 FY11 Inventory Turnover 158 days 133 days Receivables Turnover 96 days 86 days Payables* Turnover 150 days 120 days Cash Conversion Cycle 104 days 99 days Current Ratio 1.42 Net Gearing (X) *Payables consists of trust receipts and short-term revolving loans

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23 INCREASING VEHICLE OWNERSHIP IN SINGAPORE 1,000,000 Passenger and Commercial Vehicles Population in Singapore 950, , , , , , , , , , , , , Source: Land Transport Authority

24 VEHICLE REGISTRATIONS IN MALAYSIA REMAINS STRONG 700,000 New Passenger and Commercial Vehicles Registration 600, , , , Est: 615, , , , , , , YTD MAR Source: Malaysia Automotive Association

25 INCREASING VEHICLE OWNERSHIP IN CHINA 20,000,000 18,000,000 Sales of Passenger and Commercial Vehicles Population in China 18,061,900 18,505, Est: 20,000,000 16,000,000 14,000,000 13,645,010 12,000,000 10,000,000 8,000,000 8,023,500 6,000,000 4,000,000 2,000, YTD 2012 May Source: China Association of Automobile Manufacturers

26 LOOKING BEYOND ASIA Growing South Africa Vehicle Population 10,400,000 10,200,000 10,193,052 10,000,000 9,800,000 9,829,400 9,600,000 9,587,781 9,400,000 9,304,508 9,200,000 9,068,120 9,000,000 8,800,000 8,600,000 8,400, Source: National Traffic Information System (enatis)

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28 OUTLOOK & GROWTH STRATEGIES Major Brands Expansion in South East Asia and South Africa Value-add to tyre business of major brands by improving warehousing and distribution capabilities Increase number of retail outlets, truck centres and Truck and Earthmover Tyre Management contracts

29 OUTLOOK & GROWTH STRATEGIES Entrance into new markets Work closely with our principals to expand into new markets

30 Corporate Contacts: 19 Lok Yang Way, Jurong, Singapore Tel: Fax: Thank You! Investor Relations Contacts: Tel: