AZTECH SYSTEMS LTD...• 2 x HP3070 Series II ICT testers • Burn-In Facilities (static) • 8 x...
Transcript of AZTECH SYSTEMS LTD...• 2 x HP3070 Series II ICT testers • Burn-In Facilities (static) • 8 x...
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AZTECH SYSTEMS LTDAZTECH SYSTEMS LTDFY2004 FINANCIAL RESULTSFY2004 FINANCIAL RESULTS
Analysts and Media Briefing17 February 2005
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Contents of Presentation
• FY2004 Financial Performance
• Corporate Update
• Factory Expansion Plan
• Outlook for Year 2005
• Growth Plans & Strategies
• Q & A
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FY2004 FY2004 Financial PerformanceFinancial Performance
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Financial ResultsFinancial Results
Ø Turnover
Ø EBITA
Ø Profit from Operations
Ø Profit Before Tax
Ø Net Profit After Tax
• Depreciation & Amortization• Interest expenses
• Tax
$152.14 m
$ 13.68 m
$ 8.36 m
$ 7.21 m
$ 6.84 m
FY2004 FY2003 Change
$118.04 m
$ 9.87 m
$ 3.17 m
$ 2.91 m
$ 2.83 m
$5.85 m$0.62 m
$6.22 m$0.74 m
164%
$0.37 m $0.08 m
29%
39%
148%
142%
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TurnoverTurnover
152,135
118,042
161,113151,756
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50,000
100,000
150,000
200,000
YR 2001 YR 2002 YR 2003 YR 2004
S$'000
+29%
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Net Profit / LossNet Profit / Loss
2,828
6,841
(17,924)(18,830)(20,000)
(15,000)
(10,000)
(5,000)
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5,000
10,000
YR 2001 YR 2002 YR 2003 YR 2004
S$'000
+142%
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Product Mix
DataCommunication
62%
VoiceCommunication
2%Shiro3%
ContractManufacturing
33%
FY2004
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Turnover by Geographical SegmentTurnover by Geographical Segment
FY2004Others
3%Asia Pacific
23%
Europe40%
North andSouth
Americas34%
FY2003Others1%Asia Pacific
25%
North andSouth
Americas17%
Europe57%
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Balance SheetBalance SheetFY2004 FY2003 Change
Ø Total Current Assets
Ø Non-Current Assets
Ø Total Current Liabilities
Ø Non Current Liabilities
$ 67.25 m
$ 40.79 m
$ 44.58 m
$ 8.28 m
$ 47.36 m
$ 39.84 m
$ 30.00 m
Ø Total Assets $108.04 m $ 87.20 m 24%
42%
2%
49%
Ø Capital and Reserves
Ø Total Liabilities & equity
$ 55.18 m
$108.04 m
$ 8.81 m
$ 48.39 m
$ 87.20 m
(6)%
14%
24%
Ø Working Capital $ 22.67 m $ 17.35 m 31%
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Key Financial IndicatorsKey Financial IndicatorsProfitability FY2004 FY2003
Gross Profit Margin 16.4% 15.6%Net Profit Margin 4.5% 2.4%
Rate of return (%)ROE 12.4% 5.8%ROA 6.3% 3.2%
EPS (diluted shares) 1.70 cents 0.71 centCapital Expenditure
Property, plant and equipment $4.97 m $3.76 mR & D $2.12 m $2.96 m
Balance SheetDebtors $29.69 m $15.31 mDebtors turnover 71 days 47 days Creditors $30.12 m $24.28 mCreditors turnover 86 days 89 daysInventory $25.47 m $20.76 mInventory turnover 73 days 76 days
Liquidity ratioCurrent ratio 1.5 1.6 Quick ratio 0.9 0.9
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Corporate UpdateCorporate Update
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5 Sales Offices :5 Sales Offices :
Our Offices & FacilitiesOur Offices & Facilities
* Singapore* Hong Kong* USA, Fremont, California* Germany, Frankfurt* Malaysia, Petaling Jaya
2 factories in Dong Guan :2 factories in Dong Guan :* Aztech DG1 (Set-up in 1994) – 8,560 sq m* Aztech DG2 (Set-up in 2001) – 13,042 sq m
4 R&D 4 R&D CentresCentres ::* Singapore
* Shenzhen, China
Total employees = 1,700 people
* Hong Kong
* Dong Guan, China
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Key ProductsKey Products
Data CommunicationData Communication* 56 kbps Analog Modem
* ADSL2 + Modem
* Wireless 802.11g devices
* HomePlug
Voice CommunicationVoice Communication
* DECT Phone
* Walkie Talkie
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ADSL Ethernet Modem
Voice over IP
HomePlug
Data Communication Products Data Communication Products
Wireless ADSL Router
56K External USB Modem
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Voice Communication ProductsVoice Communication Products
SMS Colour DECT
PMR 5000 With Desktop Charger PMR 3000 R
Entry level DECT
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ADSL Router GSM/GPRS Module
Bluetooth Carkit
Powerline Modem
Video Conferencing
CPU Test Board
Contract ManufacturingContract Manufacturing
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Shiro Shiro Lifestyle ProductsLifestyle Products
MP3 Digital Audio Players Telecom Voice Products
Digital Camera Products Computer Peripherals
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Sales ChannelSales Channel
• OEM / ODM Customers
• Contract Manufacturing
* Shiro (100% Aztech Subsidiary)- Sales of Aztech Brand Products
- Shiro Lifestyle Products
• Retail Distribution
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- DG1 is located at Dong Guan Shi, Chang Ping, Jiu Jiang Shui
- Occupied land area of about 6,900 sq metres
Aztech Dong Guan (China) Aztech Dong Guan (China) –– Plant 1 & 2 Plant 1 & 2
- DG2 is located at Dong Guan
Shi, Chang Ping, Shang Keung
- Total built up area: 13,042 sq m
TL9000 + ISO 9001 – Manufacturing facilities in Dong Guan (China)
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• 21 x High Speed SMT lines
• 2 x X-Ray & SRT BGA rework station
• 5 x Manual Insertion Lines
• 5 x Teradyne 1850/1820 ICT testers
• 2 x HP3070 Series II ICT testers
• Burn-In Facilities (static)
• 8 x Test Lines w/X900, Hi-Pot
• 5 x DECT Testing Lines
• 6 x Assy & Packing Lines
Manufacturing EquipmentManufacturing Equipment
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Chip On Board (COB)Chip On Board (COB)
COB Wire Bonder
þ AC servo control Bond head
Z travel resolution 1um(0.039mil), high speed 14ms for 1mm Z travel
þ High throughput: 6 wires/sec for 80mil wire length
þ Fine Pitch cap: pad pitch 80um/3.15mil
pad size:70um/2.8 mil@1mil wire diameter
þ Large substrate: 4”x6”, multiple die device with max of 100 dice.
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Plastics Mold FabricationPlastics Mold Fabrication
• CNC machines x 2 (Maximart, Rapid 032 V-8D)• EDM x 6 (Acro II, P/ZNC S-430)• Radial Miller x 15 (Manford)• Horizontal millers x 2• Wire cutters x 4 (Gold Sun)• Drill Press x 2 (TF 750S)• Lathe x 1 (GapBed C6232A)• Grinders x 4, Saw x 1
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Plastics Injection FactoryPlastics Injection Factory
• 24 Plastics Injection Machines (80T-250T)
• Complete services
* Plastics parts injection molding
* Spray painting
* Silkscreen
* EMC coating
• Secondary services
* Industrial design
* Mechanical design
* Tooling production management
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Factory Factory ExpansionExpansion
Plan
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Aztech Dong Guan Plant 3Aztech Dong Guan Plant 3
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10 New SMT Equipment Investment10 New SMT Equipment Investment
• 10 units of DEK ELA auto-paste printers
• 25 units of UIC Advantis AC30L
• 5 units of UIC Advantis AC72
• 10 units of Vitronic-Soltec XPM2 Reflow ovens
Universal Instruments Advantis Platforms
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Outlook for Outlook for Year 2005Year 2005
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Market SituationMarket Situation
•• Components Inventory starts to ease off recently Components Inventory starts to ease off recently
* Expects rapid growth in emerging countries
•• General economy remains stable and healthyGeneral economy remains stable and healthy
* Matured ADSL countries moving into wireless, Video on Demand and VOIP
•• PPC market expects to grow 10% in FY 05 to 208 million unitsC market expects to grow 10% in FY 05 to 208 million units
•• Broadband ADSL lines expect to hit 100 million in early 2005 :Broadband ADSL lines expect to hit 100 million in early 2005 :
* More users will upgrade their analog cordless phones to DECT
* Growing demand for SMS Colour DECT Phones
•• DectDect Phone market expects to grow: Phone market expects to grow:
* Market size expects to be 40 million units in FY 2005
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New Products In FY 2005New Products In FY 2005Data CommunicationData Communication
* ADSL2 + with VoIP & 802.11g wireless Residential Gateway* ADSL2 + with 85Mbps HomePlug* 85Mbps and 200Mbps Audio/Video HomePlug* IP Set Top Box* Entering into Wireless Broadband Internet Access
(3G Modem, Wi-max)
* VOIP ATA AdaptorVoice CommunicationVoice Communication
* VOIP DECT Phone
Moving IntoMoving IntoConsumer Electronics:Consumer Electronics:
* MP3 Player* Digital Weather Station* Baby Monitor
* IP Phone
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New Products in FY 2005New Products in FY 2005
Flash MP3 Hard Disk Jukebox VoIP DECT
ADSL + Homeplug Router
IP Set Top Box ADSL + VoIP + Wireless
Baby Monitor Personal Mobile Radio
Digital Weather Station
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Growth PlansGrowth Plans& & StrategiesStrategies
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Growth Strategies in FY 2005
* Aztech DECT Phone and Walkie Talkie available in Qtr 4 2004
* Expect sales of Shiro Lifestyle Products to increase after 1 year in the market
FY 2005 : Diversify into more products and gain market share
- Expect Voice Communication to contribute higher sales in FY05* Gain more sales in Data Communication from emerging markets such as Latin
America and Eastern Europe * Expand our Contract Manufacturing customer base
FY2004
ContractManufacturing
33%
Shiro3%
VoiceCommunication
2%
DataCommunication
62%
FY2005 Forecast
ContractManufacturing
20%
Shiro5%Voice
Communication34%
DataCommunication
41%
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Challenges in FY 2005
• Increase in oil price
• Power shortage in China
• Price competition from local Chinese companies
• Strengthening of RMB
What are the challenges that we face in 2005?
• Rising manpower costs
• Shortage of manpower
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Thank You Thank You
Q & AQ & A
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