Introduction and Outlook Public Company Limited
Presentation Agenda Company Overview Financial Performance Outlook and Expansion Activities 2
About SVI SVI is the leading provider of Electronic Manufacturing Services (EMS) in Thailand focusing on high complexity products SVI’s manufacturing footprint spans across South East Asia and Europe SVI recorded highest annual revenue in 2018 and is expected to further increase its revenue in 2019 SVI’s continued solid balance sheet provides ample room for expansion 3
What We Do Turnkey System Build Box-Build Industrial Products Niche Products Automotive and Medical Professional Audio AC/DC Power Measurement and Communication & Medical Devices & & Video Lighting Conversion control flow Networking Equipment Devices Automotive & Heating and Digital Video and Display Monitor Public Cable Harness Cooling System Office Automation Transportation 4
What we manufacture AC/DC Power Conversion Heating and Cooling System Measurement and control flow Digital Video and Office Automation Communication & Networking Professional Audio & Video Lighting Devices Automotive & Public Transportation Medical Devices & Equipment Display Monitor Cable Harness 5
Key Milestones Past perseverance paid dividend in strong revenue growth today 2019 forecast: 19,200 (Unit: THB mn) Global financial crisis 15,610 12,426 10,948 8,445 8,295 8,079 8,119 8,006 7,143 6,486 4,843 372 1989 2004 2008 2009 2010 2011 2013 2014 2015 2016 2017 2018 2019 Acquired factory at SVI recovered from SVI recovered from Bangkadi (SVI 2) regional flood a fire incident Highest revenue recorded Acquired new facility (SVI 3) New HQ production Opened Cambodia facility 40,000 SQM manufacturing Nominated as one of The Best facility & acquired Performance Award and The Best addtional CEO Award Expanding SVI 5, SVI 2 B production facilities in Slovakia Initial Public offering Expanded to Medical Acquired Seidel Electronics Group consisting of in Thailand SET Index Equipment business 3 manufacturing facilities Notes: 6 1) 2019 Forecast of USD 600 mn based on USDTHB of 32.0
Revenue Breakdown By Markets By Geography Revenue 2018: USD 485 mn Medical Devices & DACH Countries Equipment Germany Micro Electronics 3% Industrial & Austria 7% 26% Switzerland Power Electronics Photonics & Lighting USA 4% 24% 9% Vertical 7% Integration 12% ROW Professional 8% Audio & Video 10% Automotive & Scandinavia 37% Public Transportation 53% Denmark Sweden Communication & 0% Norway Networking Clean Energy 7
SVI Global Operation ▪ European Operations: Land area 82,500 sqm. / building area 16,300 sqm. SVI Denmark SVI France ▪ Asian Operations: Land area 242,700 sqm. / building area 82,400 sqm. ▪ Number of Employees: 4,300 SVI Slovenia SVI Japan SVI Austria SVI China SVI Thailand SVI Slovakia SVI Cambodia SVI Hungary 8
Presentation Agenda Company Overview Financial Performance Outlook and Expansion Activities 9
Revenue Growth Historical record revenue posted in 2018 (Unit: THB mn) 15,729 16,000 119 14,000 4,059 12,682 256 11,152 12,000 204 3,054 10,000 Other Income 2,673 8,405 8,221 110 102 8,000 Sales - Europe 6,000 11,550 4,459 4,198 9,372 Sales - Thailand 3,773 21 8,295 38 8,275 8,119 977 4,000 33 964 994 2,000 3,461 3,196 2,746 0 2014 2015 2016 2017 2018 2Q '18 3Q '18 4Q '18 Notes: 10 1) Other Income includes sales from scrap and recurring dividend income
Margins Profile Q4 ’18 Profitability was compressed due to several factors but is expected to return to normal levels Materials shortage Seidel Acquisition in 2017 and Q1 2018 ▪ One time inventory write Thai Baht strengthened down of THB 38 mn 14.0% until Q1 2018 ▪ Cambodia ramp up cost of Gross Profit 12.4% Margins THB 22 mn 11.4% 12.0% 9.9% EBITDA Margins 9.7% 11.1% 10.0% 8.8% 8.8% 10.5% 8.3% 8.0% Net Income 8.3% Margins 8.9% 8.0% 8.6% 8.0% 7.3% 7.2% 6.2% 7.0% 6.0% 6.6% 6.1% 5.1% 4.0% 4.7% Improved environment 3.9% for materials shortage 2.8% 2.0% and Thai Baht 0.0% 2014 2015 2016 2017 2018 2Q '18 3Q '18 4Q '18 Notes: 11 1) Excluded one time charges in gains from damages caused by flood and fire
Historical Net Profit Net Profit margins has improved YoY basis and is expected to continue to improve despite contracted margins in Q4 1,000 10.0% (Unit: THB mn) 7.2% 6.6% 6.1% 6.1% 5.1% 4.7% Net Income 3.9% 900 2.8% 5.0% Margins 800 0.0% 700 Net Income -5.0% 600 500 -10.0% 803 400 -15.0% 300 545 22 491 -20.0% 38 200 311 271 270 258 -25.0% 210 100 0 -30.0% 2015 2016 2017 2018 2Q '18 3Q '18 4Q '18 Inventory Cambodia Normalised writedown Ramp Up Net Income Q4 2018 Notes: 12 1) Excluded one time charges in gains from damages caused by flood and fire 2) Reported Net Profit for 2018: THB 803 mn; and for Q4 2018 THB 210 mn
Key Financial Ratios Both earnings per share and returns have continued to improved 0.50 0.45 0.37 0.40 0.32 0.35 Earnings Per 0.24 0.30 Share (THB) 0.22 0.25 0.20 0.14 0.15 0.10 0.05 0.00 2014 2015 2016 2017 2018 20.0% 17.2% ROA 18.0% 14.0% 16.0% ROE 16.5% 14.0% 10.9% 10.8% 12.0% 13.5% ROIC 10.0% 7.8% 10.0% 7.5% 11.1% 8.0% 7.2% 8.8% 6.0% 7.2% 6.4% 4.0% 5.5% 2.0% 0.0% 2014 2015 2016 2017 2018 Notes: 13 1) Excluded one time charges in gains from damages caused by flood and fire
Balance Sheet SVI has a solid balance sheet which can be leverage for expansion (Unit: THB mn) 30-Sep-18 31-Dec-18 Variance % Change Cash & Cash Equivalents 2,236 2,051 -185 -8% Receivables 3,567 3,909 342 10% Inventory 4,054 4,382 328 8% Land, Building, Equipment 2,430 2,482 52 2% Total Assets 12,905 12,380 Short term loans 216 245 29 13% Long term loans 602 539 -63 -11% Payables 3,725 4,126 401 11% Total Liabilities 5,264 4,911 487 11% Equity 7,641 7,469 Credit Statistics 0.94x 1.00x 0.85x 0.90x 0.68x 0.80x 0.70x Debt to EBITDA 0.60x 0.50x D/E 0.40x 0.25x 0.30x 0.12x 0.12x 0.11x 0.20x 0.04x 0.01x 0.10x 0.00x 2014 2015 2016 2017 2018 14
Presentation Agenda Company Overview Financial Performance Outlook and Expansion Activities 15
Revenue Guidance (Unit: USD mn) 800 750+ 700 600-640 600 Growth +32% 485 500 440 369 400 312 279 300 261 258 257 249 238 200 100 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2018 FC2019 FC2020 Original Forecast 16
Existing Customers Growth Clean Energy and Automotive expected to make greater contribution going forward Vertical Integration 100% 3% 6% 6% 7% 8% 4% Micro-Electronics 3% 3% 4% 3% 6% 1% 90% 9% 6% 6% 7% Clean Energy 11% 80% 8% 8% 10% Medical 13% 4% 5% 3% 4% Automotive 70% 3% 9% 6% 9% 8% 8% Photonics & Lighting 60% Audio / Video 25% 22% 50% 27% 25% 24% Industrial Control 40% 30% Communication & 40% 20% 39% 36% 36% 34% Network 10% 0% Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 17
>20%+ , sale 2019 Automotive & Industrial New customers $600M Existing to Industrial and customers telecommunication $640M China transfer Telecommunication and networking 18
2019 Key Focus Europe Capacity Expansion 1 ▪ Capacity in Slovakia increased by 50%, bought land and building ▪ Sales from European operations expected to increase from USD125M in 2018 to USD140M in 2019 Cambodia new factory 2 ▪ Ramping up two major customers plus qualifying two more in Cambodia ▪ Start construction of a second building, 10K sqm ▪ Estimated sales in 2019 USD45M and 2020 USD100M 3 North America Expansion ▪ Facility setup in Mexico to expand the North American market ▪ Estimated investment of USD20M with additional revenues of USD50M in 2020 4 M&A ▪ Building up financial support to acquire in key markets 19
Committed to Superior Service and Highest Quality This presentation has been prepared solely for informational purposes. It does not constitute an offer or sale or a solicitation of an offer to purchase securities. Neither this presentation nor any part of it shall form the basis of, or be relied on in connection with, or act as an inducement to enter into, any contract or commitment whatsoever. Any decision to purchase or subscribe for any securities of the Company must be made on the basis of a thorough review of publicly available information of the Company, including information made publicly available pursuant to the requirements of the Securities Exchange of Thailand and the Thai Securities Exchange Commission. Thank You SVI Public Company Limited www.SVI-HQ.com
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