Steering ahead. FY2012 Results Briefing. 22nd June 2012. Page 2. Page 3. AGENDA. ⢠FY2012 Highlights. ⢠Business Ove
Steering ahead FY2012 Results Briefing 22nd June 2012
AGENDA • FY2012 Highlights • Business Overview • Financial and Operations Highlights • Industry Review • Outlook & Growth Strategies
FY2012 HIGHLIGHTS • Revenue up 6.7% to S$364.1m – SEA market up 5.6% to S$276.4m – South Africa grew 5.6% to S$38.3m (up 18% in local currency terms)
• Gross margin stable at 22.1% (FY2011: 23.3%) • Dividend per share of S$1.5 cent recommended, representing 36.1% payout ratio comparing (FY2011: 26.5%) • Expects FY2013 to be profitable
BUSINESS OVERVIEW • One of the largest independent tyre and wheel distributors in South East Asia • Presence in 9 countries; with 4,000 dealers • Sole distributor for major international brands:
• International export of proprietary brands
OUR BUSINESS MODEL Distribution
Manufacturing
Overseas Distribution Network
Retail Network (tyres for passenger cars, wheels, car services & accessories)
Commercial Tyres and Services (Truck and Off the Road “OTR” tyre management services)
Proprietary Brand Tyres (passenger car radial, light truck, truck bus radial)
Central warehousing and distribution in 9 countries
25 Retail Outlets in South East Asia
2 Truck Centers 3 Contract Customer Workshops 7 Mobile Fleet Service Vehicles
Export to over 90 countries
SSW Alloy Wheel (Manufacturing)
Retread of Truck and OTR Tyres
DISTRIBUTION VALUE CHAIN Over 4,000 3rd Party Retail Outlets
Major Brands
Distribution Centres
Proprietary Brands
92% of revenue derived from distribution
25 Stamford Retail Outlets 2 Truck Centers 3 Contract Customer Workshops 7 Mobile Fleet Service Vehicles
OVERSEAS DISTRIBUTION NETWORK • Links to 4,000 dealers/retailers across 9 countries India
South Africa
Thailand
Malaysia
China
Singapore
Indonesia
Australia
Hong Kong
LOCAL PRESENCE Singapore
Malaysia
Thailand
Indonesia
Hong Kong
China
Australia
India
South Africa
SOLE DISTRIBUTION AREAS OF MAJOR BRANDS Brands
Falken
Continental
Dunlop Toyo OTR and Truck
Countries Singapore, Malaysia, Thailand, Singapore, China, Malaysia, Thailand, Indonesia, South Africa, Indonesia, South Africa, Mauritius,China, Brunei, Vietnam, Mauritius,Myanmar Brunei, Vietnam, Cambodia, and India Cambodia, Myanmar India East Timor, Nepal, Newand Caledonia, Southern Africa Singapore Hong Kong, Macau, Indochina through Tyre Pacific HK Singapore, Brunei, Malaysia and Indonesia
INTERNATIONAL EXPORT OF PROPRIETARY BRANDS • Network spans more than 90 countries including Eastern Europe, Western Europe, Africa, Latin America and Middle East
STEADY SALES & GP MARGINS .0% 7 f o R CA G
S$’mln
400
23.5%
23.3%
350
23.0% 22.7%
300
22.5% 22.1%
250
22.0% 200
150
296.9
21.4% 310.2
341.4
364.1
21.5%
21.0%
100
20.5%
50
20.0%
0
FY2009
FY2010
FY2011
Revenue
FY2012
OVERSEAS EXPANSION • Growth in all key markets FY12
FY11
Change
Turnover by geographical segment
(S$'000)
%
(S$'000)
%
%
Southeast Asia
276,420
75.9
261,761
76.7
5.6
South Africa
38,255
10.5
36,231
10.6
5.6
North Asia
34,646
9.5
33,873
9.9
2.3
Others
14,753
4.1
9,491
2.8
55.4
Total
364,074
100.0
100.0
6.7
341,356
FOREX MANAGEMENT S$’mln 3.0 2.3 2.0
1.0
0.0 FY2009
FY2010
FY2011
FY2012
‐1.0 ‐1.2 ‐2.0
‐3.0
‐2.9
‐4.0
‐5.0
‐6.0
‐7.0
‐5.8
FOREX MANAGEMENT SGDZAR 2010/11 - 2011/12 6.600 6.400 6.200 SGDZAR 2010/11 ‐ 2011/12
6.000 5.800
AVE FX RATE ZAR 5.600
FY10
5.38
5.400
FY11
5.40
FY12
6.01
5.200 5.000 May '10
Aug '10
Nov '10
Feb '11
May '11
Aug '11
Nov '11
Feb '12
FOREX MANAGEMENT To reduce Forex impact to Profit and Loss for South Africa, the Group is taking two steps: Increase equity in South Africa to reduce foreign currency denominated payables Increase local bank borrowings to reduce foreign currency denominated payables
GROUP’S NET PROFIT Net Profit & Margin S$’mln
16.0
4.5% 3.9%
14.0
4.0% 3.5%
12.0
3.1% 2.7%
10.0
3.0% 2.5%
8.0 2.0%
13.4 6.0 9.8
9.5 4.0 2.0 0.0
1.5% 1.0%
0.4%
0.5%
1.1 FY2009
0.0% FY2010
FY2011
FY2012
FINANCIAL RATIOS FY12
FY11
158 days
133 days
96 days
86 days
Payables* Turnover
150 days
120 days
Cash Conversion Cycle
104 days
99 days
Current Ratio
1.42
1.45
Net Gearing (X)
1.12
0.86
Inventory Turnover Receivables Turnover
*Payables consists of trust receipts and short-term revolving loans
INCREASING VEHICLE OWNERSHIP IN SINGAPORE Passenger and Commercial Vehicles Population in Singapore 1,000,000
956,704 945,829
950,000 925,518 894,682
900,000
851,336 850,000
800,000
799,373
750,000
700,000
650,000 2006
2007
2008
Source: Land Transport Authority
2009
2010
2011
VEHICLE REGISTRATIONS IN MALAYSIA REMAINS STRONG New Passenger and Commercial Vehicles Registration 700,000 605,156
2012 Est: 615,000
600,123
600,000 536,905 500,000
400,000
300,000
200,000 138,544 100,000
0 2009
2010
Source: Malaysia Automotive Association
2011
2012 YTD MAR
INCREASING VEHICLE OWNERSHIP IN CHINA Sales of Passenger and Commercial Vehicles Population in China 2012 Est: 20,000,000
20,000,000 18,061,900
18,505,100
18,000,000 16,000,000 14,000,000
13,645,010
12,000,000 10,000,000 8,023,500 8,000,000 6,000,000 4,000,000 2,000,000 0 2009
2010
2011
Source: China Association of Automobile Manufacturers
YTD 2012 May
LOOKING BEYOND ASIA Growing South Africa Vehicle Population 10,400,000 10,193,052
10,200,000 10,000,000 9,829,400 9,800,000 9,587,781
9,600,000 9,400,000 9,200,000
9,304,508
9,068,120
9,000,000 8,800,000 8,600,000 8,400,000 2007
2008
2009
Source: National Traffic Information System (eNaTIS)
2010
2011
OUTLOOK & GROWTH STRATEGIES Major Brands • Expansion in South East Asia and South Africa • Value-add to tyre business of major brands by improving warehousing and distribution capabilities • Increase number of retail outlets, truck centres and Truck and Earthmover Tyre Management contracts
OUTLOOK & GROWTH STRATEGIES Entrance into new markets • Work closely with our principals to expand into new markets
Thank You!
Corporate Contacts: 19 Lok Yang Way, Jurong, Singapore 628635 Tel: +65 6268 3111 Fax: +65 6264 0148 Email:
[email protected]
Investor Relations Contacts: Tel: +65 6438 2990 Email:
[email protected] 