Annual General Meeting Held on 18 October 2019 Background Regional - PowerPoint PPT Presentation

Presentation for Annual General Meeting Held on 18 October 2019

Background Regional Stainless Steel Distributor • Established in 1977 • Serving customers in Asia Pacific region • 2 warehouses in Singapore with total land space of 160,000 sq ft. • More than 3,000 items of stainless steel • Listed on SGX mainboard since 2007

Market Overview Regional Stainless Steel Distributor • Recovery in market conditions and demand from our customers • Price of nickel and stainless steel remains in a range • Oil price is volatile but remains in a range WTI Crude Oil Price (USD) - 3 Year Chart Source: www.lme.co.uk Source: www.macrotrends.net

Higher Revenue and Profit for FY2019 S$’000 FY2019 FY2018 % change Revenue 49,856 37,687 32% Gross profit 12,063 8,635 40% GP margin 24 % 23% Distribution & admin expenses (9,277) (8,463) 10% Other income 404 534 (24%) Impairment loss on receivables (237) (163) 45% Other costs & expenses (52) (319) (84%) Share of loss of joint venture - (26) n.m. Profit before tax 2,901 198 1365% Net profit 2,395 32 7384%

Sales revenue (S$’000) 70,000 58,947 60,000 51,432 49,856 50,000 37,687 40,000 33,130 30,000 20,000 10,000 - FY2015 FY2016 FY2017 FY2018 FY2019

Profit/(Loss) after tax (S$’000) 4,000 3,543 3,500 3,000 2,395 2,500 2,000 1,500 1,000 500 41 32 - FY2015 FY2016 FY2017 FY2018 FY2019 (274) (500)

Revenue by industry ($ million) - FY2019 25.0 FY2019 19.1 20.0 11% 16.3 14.3 15.0 33% 12.4 18% 9.0 10.0 7.2 5.5 5.0 3.8 38% - Marine and shipbuilding Marine and Oil, gas and Engineering and Trading and others Oil, gas and petrochemical shipbuilding petrochemical construction Engineering and construction Trading and others FY2019 FY2018 $49.9 million $37.7 million

Revenue by geographical segment ($ million) - FY2019 FY2019 25.0 23.2 8% 20.1 20.0 16% 15.0 46% 9.4 10.0 7.9 6.5 11% 5.8 5.5 3.9 5.0 2.8 2.5 - 19% Singapore Indonesia China Other ASEAN Others Singapore countries Indonesia China Other ASEAN countries FY2019 FY2018 Others $ 49.9 million $37.7 million

Receivables turnover improved (days) 140 120 120 103 101 98 100 75 80 60 40 20 0 FY2015 FY2016 FY2017 FY2018 FY2019

Inventory turnover improved (days) 600 543 489 500 439 400 358 327 300 200 100 0 FY2015 FY2016 FY2017 FY2018 FY2019

Financial position S$’000 FY2019 FY2018 Non-current assets 10,326 7,849 Current assets 80,393 81,692 Current liabilities 5,015 5,309 Equity 85,704 84,232

Dividend doubled in FY2019 compared to FY2018 (cents per share) 1.6 1.5 1.4 1.2 1 0.8 0.6 0.6 0.5 0.4 0.3 0.2 0.2 0 FY2015 FY2016 FY2017 FY2018 FY2019

Dividend payout (S$’000) Outlook 3,500 3,330 • Higher Revenue and profit due to improved market conditions and product demand • Recovery in oil and gas lifted business sentiments despite global trade tensions 3,000 • Global trade tensions set to continue • Global Economic outlook is depressed 2,500 • Expect conditions to be challenging but we will stay on course 2,000 Focus 1,500 1,332 1,110 1,000 666 • Remain focused on completion of our secondary facility to provide more storage 444 • Monitor and review of our business and subsidiaries 500 • Remain financially prudent • Well positioned to take advantage of any improved business conditions - FY2015 FY2016 FY2017 FY2018 FY2019

Thank you