1Q2012 Investor Briefing 27 April 2012 1
1Q2012 Investor Briefing 27 April 2012
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Financial
Review
2
By Mrs. Wendy Soh Chief Financial Officer
Sales Performance
138.3
S$ m
il
145.5
Note: Figures may not add up due to rounding
143.8
113.9
3
157.7
Strong 1Q12 sales growth on HDD industry recovery
Core EBIT* S$
mil
Note: Figures may not add up due to rounding
6.3 6.1
4.2
(4.0)
*Less forex & exceptional gains/losses
4
4.0
1Q12 core EBIT reversed from losses in 4Q11 to near pre-flood levels in 3Q11
1Q11 2Q11 3Q11 4Q11 1Q12
Foam Plastics 5.3% 8.3% 5.7% 6.7% 4.0%
HDD 5.2% 3.5% 4.0% -8.8% 3.3%
Non-HDD 4.1% 7.4% -11.8% -4.8% 3.5%
5.3%
8.3%
5.7%6.7%
4.0%5.2%
3.5% 4.0%
-8.8%
3.3%
4.1%
7.4%
-11.8%
-4.8%
3.5%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
Core EBIT Margin*
Note: Figures may not add up due to rounding
*Less forex & exceptional gains/losses
5
Core EBITDA* S$
mil
14.8 14.3
12.6
4.5
6
*Less forex & exceptional gains/losses
12.7
Core PATMI*
-15
-10
-5
0
5
10
1Q11 2Q11 3Q11 4Q11 1Q12
5.64.7
3.4
-4.9
2.9
1: includes both realised and unrealised forex losses/gains
(‘mil) 1Q11 2Q11 3Q11 4Q11 1Q12
PATMI (reported) 9.1 3.7 (9.9) (10.2) 15.2
Net Forex 3.5 (0.1) (13.3) 0.3 12.3
Exceptional - - - (5.6) -
7
*Less forex & exceptional gains/losses
1Q11 4Q11 1Q12
Turnover Ratio (days)
Inventory Turnover 41 63 51
Receivables Turnover 74 64 70
Payables Turnover 56 52 55
Cash Conversion Cycle 59 75 66
Net Gearing ([Total Borrowings – Cash Balance]/ Equity) 0.09 0.39 0.43
Current Ratio 1.18 1.35 1.31
Return Ratio
EPS (cents) 2.19 (1.74) 3.66
NAV (cents) 55.28 50.78 50.74
Key Ratios
8
*after accounting for 1-for-1 bonus share issue in 2011
*
*
Group Outlook
Improving Financial Performance for rest of FY2012
Expects increasing HDD orders in 2Q2012 on continued industry recovery. Allocating more programmes to Thailand and Chongqing to mitigate rising wage costs in China.
Focusing on cost control and operating efficiency to improve HDD margins.
Expects qoq improvement in Foam Plastics sales and improving performance from new
entities.
Continue to focus on streamlining and consolidating the Non-HDD operations
Exploring M&A and business opportunities to expedite Non-HDD growth
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Projected 2012 Capex S$
mil
10
S$17.5 mil in
1Q2012
2012 Capex projections are exclusive of Thailand restoration costs, which will be covered by insurance
Operational
Review
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By Mr. CH Fong Director (Business Infrastructure & Process)
HDD Shipment Trend
26.5 27.9
29.3
17.8
31.8
5.3 4.8
3.0
1.1
4.8
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
1Q11 2Q11 3Q11 4Q11 1Q12
Compart shipments (‘ mil)
ACA DSP
Compart’s ACA shipments (+20% yoy) outperformed industry shipments due to stronger customer pull in 1Q2012.
Slight drop in DSP shipment in 1Q2012 due to change in product mix.
160
143
130
135
140
145
150
155
160
165
1Q11 1Q12
Preliminary industry forecast by Trendfocus
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Foam Plastics 1Q2012 Review
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36.1
31.7
41.7
Sales segmentation by Industry cluster (S$’ mil)
1Q2012 sales +13.9% yoy with contribution from new Chongqing, Chengdu and Suzhou (Weltop) facilities
1Q2012 profitability affected by higher labour, material and energy costs ; as well as continuing losses from Chengdu and Suzhou (Weltop) as sales have yet to reach breakeven levels
Broadway Industrial Group Limited
For more information, please visit: www.bw-grp.com
These slides may contain forward looking statements that involve risks and uncertainties. Actual future performance, outcomes and
results may differ materially from those expressed in forward‐looking statements as a result of a number of uncertainties, risks and
assumptions. Representative examples of these factors include but are not limited to general market and economic conditions,
interest rate and exchange rate trends, technological changes, changes in operating expenses including employee wages and
benefits, changes in government policies, and the continued availability of financing in the amounts and terms necessary to support
future business.
You are cautioned not to place undue reliance on the forward‐looking statements in these slides, which are based on the current
view of management on future events. Information from external sources in these slides has not been independently verified by us
nor have the external sources quoted consented to the inclusion of the information.
Disclaimer
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