Sales up 125% Profit up 141% - Hi-P · Q3 2004 Others 1% US 4% Europe 23% PRC 60% S'pore * Bill-to...

FY04 Results BriefingFebruary 16th, 2005Raffles Hotel Ballroom

Sales up 125%Profit up 141%

Full-year Strategic Review

YAO HSIAO TUNG EXECUTIVE CHAIRMAN & CHIEF EXECUTIVE OFFICER

FY04: A tremendous yearHiHi--P INTERNATIONALP INTERNATIONAL

LIMITEDLIMITED

FY04 FY03 +/-

Revenue $ 561 m $ 249 m +125%

Gross profit $ 140 m $ 66 m +112%

Operating profit $ 95 m $ 43 m +120%

Net profit $ 88 m $ 37 m +141%

Earnings/share 9.93 cts 4.93 cts +101%

Dividends/share 1.00 cts 0.50 cts +100%

Top-line surgeHiHi--P INTERNATIONALP INTERNATIONAL

LIMITEDLIMITED

S$249m

S$561m

0

100

200

300

400

500

600

FY03 FY04

+ 125%

Jump in bottom-lineHiHi--P INTERNATIONALP INTERNATIONAL

LIMITEDLIMITED

S$37m

S$88m

0

10

20

30

40

50

60

70

80

90

FY03 FY04

+ 141%

QoQ comparison …HiHi--P INTERNATIONALP INTERNATIONAL

LIMITEDLIMITED

S$44m

S$58m

S$67m

S$80m

S$111m

S$151mS$155m

S$144m

0

20

40

60

80

100

120

140

160

Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404

YoY ComparisonHiHi--P INTERNATIONALP INTERNATIONAL

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3 5 7 8 12 19 20 27 32 43

81101

143

249

561

0

100

200

300

400

500

600

FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04

S$m

CAGR 51%

+ 125%

Q4 2004

Motorola Maxtor

Gillette MEI

Seagate ZTE

Siemens Haier

Kodak Capitel

HiHi--P INTERNATIONALP INTERNATIONALLIMITEDLIMITED

Top 10 customers

FY 2004

Motorola ZTE

Gillette Maxtor

Siemens Haier

Kodak MEI

Seagate Capitel

Growth drivers in FY04HiHi--P INTERNATIONALP INTERNATIONAL

LIMITEDLIMITED

• Surge in telecom, CE, data storage– New projects from customers– Increased allocation from customers– Strong growth in end-demand– More vertical integration– Increased value-added assembly

• Continued push to relocate and outsource– China still manufacturing hub of choice– OEMs trying to tap local PRC market

Financial Highlights

PHILIP TAN CHIEF FINANCIAL OFFICER

Revenue (S$m) 143.8 155.0 (7.2) 79.6 80.8

PBT & MI (S$m) 25.2 26.3 (4.2) 12.9 95.3

PAT & MI (S$m) 25.0 24.8 0.8 11.7 113.9

*EPS for Q4 2004 and Q3 2004 calculated based on post-invitation 887,000,000 shares ** AnnualisedEPS for Q4 2003 calculated based on weighted average 761,166,667 shares outstanding

EPS (cents) * 2.82 2.79 1.1 1.54 83.1

Diluted EPS (cents) * 2.82 2.79 1.1 1.54 83.1

ROE (%)** 38.7 41.6 (7.0) 32.3 19.8

ROA (%)** 22.8 24.0 (5.0) 16.7 36.5

Q404 Q304 Var (%) Q403 Var (%)(A) (B) (A) - (B) (C) (A) - (C)


Q404 main numbers

Gearing (x) 0.08 0.10 0.25

Q4-04 Q3-04 Q4-03

Capex (S$m) 8.8 24.3 25.9

Average receivables 67 60 56turnover (Days)

Average inventory 47 41 42turnover (Days)

Average payables 87 80 74turnover (Days)

Some key metricsHiHi--P INTERNATIONALP INTERNATIONAL

LIMITEDLIMITED

Operating cashflow 23.1 29.4 29.7

Investing cashflow (13.3) (9.4) (8.3)

Financing cashflow (2.1) (2.5) 77.0

Q4-04 Q3-04 Q4-03

CashflowHiHi--P INTERNATIONALP INTERNATIONAL

LIMITEDLIMITED

51 50 8 2

77 65 7 2

94 49 10 2

92 36 14 2

314 200 39 8

115 96 33 5

0 50 100 150 200 250 300 350 400 450 500 550 600

Q1 2004

Q2 2004

Q3 2004

Q4 2004

FY 2004

2003

Revenue by Business Segments (S$ Million)

Telecom Consumer Electronics & ElectricalData Storage Life Sciences / Medical / Automotive

249

155

151

111

144


Key financial highlights

561

Revenue by Business Segments Q3 2004

6% 1%

61%

32%

Telecom

ConsumerE&E

DataStorage

Life Sc/Med /Automotive

Revenue by Business Segments Q4 2004

10% 1%

64%25%

Key financial highlightsHiHi--P INTERNATIONALP INTERNATIONAL

LIMITEDLIMITED

Revenue by Activities Q3 2004

PPIM43%

MDF6%

Assembly51%

Revenue by Activities Q4 2004

Assembly43%

MDF14%

PPIM43%


LIMITEDLIMITED

Revenue by Geography* Q3 2004

Others 1%

US 4%

Europe 23%

PRC 60%

S'pore 12%* Bill-to Locations

Revenue by Geography* Q4 2004

Others 2%

US 6% Europe

19%PRC 47%

S'pore 26%


LIMITEDLIMITED

6.07.511.411.7

16.1

22.1

24.8

25

0

20

40

60

80

100

2003 2004

Profit after Tax (S$ Million)

36.6

88.0


LIMITEDLIMITED

143249

561

32 55 610100200300400500600

2002 2003 2004

Capex Revenue

Capex vs Revenue(S$ Million)


LIMITEDLIMITED

Outlook & Guidance

YAO HSIAO TUNG EXECUTIVE CHAIRMAN & CHIEF EXECUTIVE OFFICER

Growth drivers in FY05HiHi--P INTERNATIONALP INTERNATIONAL

LIMITEDLIMITED

• New projects for existing customers– Obtained projects for all SBUs– Heavy tooling loading in Q4’04 and H1’05

• Increased scope- SBU Business Model integrate SPU and SCM

provide customer one-stop solution

• Customers in M&A (e.g. P&G + Gillette)– Opportunities in wider range of products– Larger market for existing products

• PRCShanghai, Chengdu, Xiamen, Tianjin, Qingdao, Suzhou

• Singapore • Mexico

• Telecoms • Consumer Electronics• Data Storage• Life Sciences / Medical • Automotive

• Turnkey

• Assembly

• Surface finishing

• Precision metal stamping

• Molding

• Tooling

Process CapabilitiesDiversification

Product-MarketDiversification

Globalisation &Regionalisation

Three-Axis StrategyHiHi--P INTERNATIONALP INTERNATIONAL

LIMITEDLIMITED


Execution Foundation

Build Strong Organization Build Strong Organization

With Right PeopleWith Right People

Set up Effective SystemsSet up Effective Systems

& Procedures& Procedures

Establish Effective Establish Effective

Motivation Mechanism Motivation Mechanism

Inculcate Inculcate

HiHi--P CultureP Culture

ExecutionExecutionFoundationFoundation

ConsumerConsumerElectronicsElectronicsSBUSBU

SPUSPU

SCMSCM

Computing /MedComputing /MedAutomotiveAutomotive

WirelessWirelessCommunicationCommunication

ToolingTooling MetalMetalStampingStamping

SurfaceSurfaceDecorationDecoration

PCBAPCBA KeypadKeypad CameraCameraModulesModules

New SBU Business ModelHiHi--P INTERNATIONALP INTERNATIONAL

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GuidanceHiHi--P INTERNATIONALP INTERNATIONAL

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• Robust growth in FY05 revenue & profit

– Q105 to see marginal softening due to seasonal factors

– Secure new projects in all segments– More vertical integration, resulting in higher

ASPs in telecommunications segment– Expect H205 to show typical seasonal

strength– Good profit margins are expected to be

largely sustained

Sales up 125% Profit up 141% - Hi-P · Q3 2004 Others 1% US 4% Europe 23% PRC 60% S'pore * Bill-to...

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