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8/8/2019 Corporate Presentation to KimengJan10[1]
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...Technology is a toolpeople make the difference...
Corporate Presentation
8/8/2019 Corporate Presentation to KimengJan10[1]
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24 Quarters of continuous profitability
24 Quarters of consistent growth
for 24 Quarters we delivered our Promises
...Technology is a tool
people make the difference...
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ContentsDelivering on
promises
2
FinancialHighlights
CorporateOverview
1
StrategicUpdate
3 6
ExecutiveSummary
5
ExecutiveSummary
4
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Profile of ECS Group
Listed on SingaporeStock Exchange
- ECS.SI, ECS.SP
Leading provider ofICT Products and
Enterprise Systems
Top 3 ICTdistributor
in China and ASEAN
Serving over 21,400channel partnersin China
and Southeast Asia
Delivering onpromises
Corporate Overview1
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Profile of ECS Group
42.5 million
2.79 billion
FY07
52.2 million33.6 million29.9 million25.6 millionOperating Profit
2.95 billion2.34 billion2.03 billion1.86 billionRevenue
FY08FY06FY05FY04SingDollars
Revenue Overview
EnterpriseSystems
ICT Infrastructure
IT servicesConsulting, Training,
Implementation &Maintenance
DistributionICT Products
Corporate Overview1
Regional coverage : China, Indonesia, Malaysia, Philippines, Singapore, Thailand
Over 50% of our business comes from China
Delivering onpromises
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Partnering with the best
Corporate Overview1
MAJOR VENDORS
Delivering onpromises
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Corporate Overview1Delivering on
promises
Product Picture Channel Product Picture Channel Services Channel
iPOD NotebookPost SalesMaintenance
Notebook Desktop
Training
Desktop Server
Comsultancy
Printer Printer
Implementation
Toner Network
Supplies Database
Security
Storage Storage
Microsoft
3rd Party H/W
Consumer Commercial Service
ITMa
lls,
Itsup
ermart,
Elec
tron
icS
upermartan
dRe
tailers
Sys
tem
In
tegra
tor,
App
lica
tion
Deve
loper,
MISDepartm
en
t
(Governmen
t,Te
lco,
Man
ufac
turer,e
tc)
Sys
tem
In
tegra
tor,
App
lica
tion
Deve
loper,
MISDepartm
en
t
(Governmen
t,Te
lco,
Man
ufac
turer,e
tc)
Total = 21,400 Channel Partners
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8
Board of Directors
Corporate Overview1
Group CEO - Tay Eng HoeGroup COO Foong Kam Tho
Group CFO Eddie Foo
China CEO
Mervyn Mao
Singapore CEO
Sebastian Chong
Thailand CEO
Narong Intanate
Indonesia CEO
Tantri Bisono
Philippines CEO
Jimmy Go
Malaysia CEO
Foo Sen Chin
HQ : Guangzhou Jakarta Petaling Jaya Bangkok Singapore ManilaOffices: Beijing Bandung Penang Chiangmai CebuChengdu Medan Johore Bahru Hat YaiHongkong Surabaya Kuantan Khon KaenShanghai Yogyakarta Kota Kinabalu Nakhon RatchasimaShenyang Semarang Kuching Phitsanulok
Shenzhen Bali PhuketWuhan Makasar RayongXian Palembang Surat Thani
Delivering onpromises
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Extensive Regional Network
The Group HQ
Subsidiaries
Countries for ECS futuregrowth
Singapore
Malaysia
Thailand
China
IndiaHong Kong
Philippines
Indonesia
Australia
Indo-China
Pop: 19m
Pop: 238m
Pop: 85m
Pop: 7.2m
Pop: 1.28b
Pop: 1.03b
Pop: 62m
Pop: 28m
Pop: 4.3m
Countries Channel
3621,400
22,500Philippines
93,500Indonesia
11,100Singapore
62,500Malaysia
94,500Thailand
97,300China
Offices2009
Corporate Overview1
Opportunities for expansionIndiaVietnamAustraliaSri Lanka
Delivering onpromises
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10
Consistent Profit Track Record
6.3
13.5
17.3
20.1
23.4
29.4
0
5
10
15
20
25
30
S$Mil
2003 2004 2005 2006 2007 2008
Corporate Overview1Delivering on
promises
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11
Consistent Dividends
0.3
0.8
1.4 1.5 1.5
2.7
0.0
0.5
1.0
1.5
2.0
2.5
cents
2003 2004 2005 2006 2007 2008
Corporate Overview1
Company able to pay dividends up to 35% of yearly NPAT.
Delivering onpromises
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Income Statement Highlights
Financial Highlights2Delivering on
promises
FY2008 FY2007 FY2006S$ 'MIL S$ 'MIL S$ 'MIL
Revenue 2,949.9 2,789.4 2,339.3Operating Profit 52.2 42.5 33.6
Operating Profit Margin 1.77% 1.52% 1.43%
NPATMI 29.4 23.4 20.1
Basic EPS (cents) 8.04 6.40 5.51
Cash Flow 16.4 7.2 29.9
Working Capital Days 37.4 42.0 47.6
NAV 65.1 58.2 52.3
ROCE 11.7% 10.0% 9.1
ROE 13.0% 11.6% 11.0
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13
Income Statement Highlights
13
2 Q3 09 & YTD Sep 09 Highlights
13
S$ millionActual
Q309
Actual
Q308
Actual YTD
Sep09
Actual YTD
Sep08
Revenue 885.3 751.0 17.9 % 2,359.3 2,226.3 6.0 %Gross Profit 41.3 36.1 14.3 % 111.4 111.8 (0.4) %
GP Margin 4.66% 4.81% (14.5) pp 4.72% 5.02% (30.0) pp
Operating Expenses 25.6 24.3 5.3 % 72.4 75.3 (3.9) %
Operating Expenses % 2.90% 3.24% (34.7) pp 3.07% 3.38% (31.7) pp
Operating Profit 18.2 12.9 41.2 % 43.7 39.9 9.5 %
Operating Profit Margin 2.05% 1.71% 33.9 pp 1.85% 1.79% 5.9 pp
Interest Expense 1.5 2.9 (49.9) % 3.6 8.4 (57.4) %
NPATMI 10.3 7.6 35.7 % 26.1 21.5 21.4 %
NPATMI Margin 1.16% 1.01% 15.3 pp 1.11% 0.97% 14.1 pp
Operating Cash Flow (in millions) 4.7 4.7 (0.6) % 40.7 (14.0) N.M
Working Capital Days 32.4 42.4 (10.0) days 36.0 42.6 (6.6) days
Net Gearing 0.48 0.75 (36.2) % 0.48 0.75 (36.2) %
ROE 16.7% 13.8% 21.4 % 14.3% 13.1% 9.2 %
Variance Variance
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14
562.2
482.6
400.0
430.0
460.0
490.0
520.0
550.0
580.0
Q3 2008 Q3 2009
(S$'m
illions)
Revenue
Setting the pace
Distribution Segment Q3 2009
2 Q3 09 Highlights
8.4
5.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
8.0
8.5
Q3 2008 Q3 2009
(S$'millions)
PBIT
14
Up 16.5% y-o-y, due to increase inconsumer demand for desktops andnotebooks
Up16.5%
51.9% increase in PBIT due to
higher sales for desktops ¬ebooks and lower operatingexpenses as % of sales
Up51.9%
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Setting the pace
Enterprise Systems Segment Q3 2009
9.36
6.92
5.0
5.8
6.5
7.3
8.0
8.89.5
Q3 2008 Q3 2009
(S$
'm
illions)
2 Q3 09 Highlights
261.5
315.6
200.0
215.0
230.0
245.0
260.0
275.0
290.0
305.0
320.0
Q3 2008 Q3 2009
(S$'millions)
Revenue PBIT
15
Increased 20.7% y-o-y, contributed by
higher sales for servers, networking andenterprise software
35.2% increase in PBIT due to
higher sales for servers,networking and enterprisesoftware
Up35.2%
Up20.7%
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16
North Asia
Revenue grew by 24.9% as compared
to Q3 2008 led by higher demand indesktops, notebooks and networkinghardware
Southeast Asia
Revenue from Southeast Asia
increased by 10.6% year-on-year dueto increase in sales for notebooks inIndonesia and Malaysia
Setting the pace
Revenue (by geographical segments) Q3 2009
382.6
477.8
340.0
360.0
380.0
400.0
420.0
440.0
460.0
480.0
Q3 2008 Q3 2009
(S
$m
illions)
368.4
407.5
320.0
335.0
350.0
365.0
380.0
395.0
410.0
Q3 2008 Q3 2009
(S$millions)
Up24.9%
16
2 Q3 2009 Highlights
Up10.6%
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17
North Asia
PBIT increased by 37.1% as compared to
Q3 2008 due to higher sales fornotebooks and desktop
Southeast Asia
PBIT from Southeast Asia grew
45.2% year-on-year contributed bythe higher gross margins achievedin Indonesia
Setting the pace
Profitability (by geographical segments) Q3 2009
6.4
8.7
5.0
5.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
Q3 2008 Q3 2009
(S
$millions)
6.5
9.4
5.0
5.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
Q3 2008 Q3 2009
(S$millions)
17
2 Q3 2009 Highlights
Up45.2%
Up37.1%
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1,481.2
1,381.2
1,000.0
1,100.0
1,200.0
1,300.0
1,400.0
1,500.0
YTD Sep 2008 YTD Sep 2009
(S$'m
illions)
Revenue
Setting the pace
Distribution Segment YTD Sep 2009
2 YTD Sep09 Highlights
21.1
18.4
16.0
16.8
17.5
18.3
19.0
19.8
20.5
21.3
YTD Sep 2008 YTD Sep 2009
(S
$'millions)
PBIT
18
Increase 7.2% y-o-y, due to higherdemand for desktops and notebooks
Up7.2%
14.4% growth in PBIT
contributed by higher sales fornotebooks and lower operatingexpenses as % of sales
Up14.4%
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19
Setting the pace
Enterprise Systems Segment YTD Sep 2009
21.4
20.3
15.0
16.0
17.0
18.0
19.0
20.0
21.022.0
YTD Sep 2008 YTD Sep 2009
(S$
'm
illions)
2 YTD Sep 09 Highlights
818.8
856.4
700.0
720.0
740.0
760.0
780.0
800.0
820.0
840.0
860.0
YTD Sep 2008 YTD Sep 2009
(
S$'millions)
Revenue PBIT
19
Up 4.6% y-o-y, due to higher sales for
networking and storage
5.2% increase in PBIT due to
higher sales for networking andstorage
Up4.6%
Up5.2%
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21
North Asia
PBIT declined by 0.5% as compared to
Sep 2008 due to higher provisions madefor doubtful debts
Southeast Asia
PBIT from Southeast Asia grew
20.8% year-on-year contributed bythe higher gross margins achievedin Indonesia
Setting the pace
Profitability (by geographical segments) YTD Sep 2009
20.9 20.8
15.0
16.0
17.0
18.0
19.0
20.0
21.0
YTD Sep 2008 YTD Sep 2009
(S$millions)
19.0
23.0
15.0
16.0
17.018.0
19.0
20.0
21.0
22.0
23.0
YTD Sep 2008 YTD Sep 2009
(S$millions)
21
2 YTD Sep 2009 Highlights
Down0.5%
Up20.8%
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Growaccessories &retail businessGrow
Enterprise &Services
Business
Geographicand channelexpansion
Continue strengthenGroup
Financial health
STRATEGIC DIRECTIONS
PROFIT
Improve
Profitabili
ty
Focus on increasing
our revenue yield and
shareholders return
Strategy Update3Delivering on
promises
New countriesExisting country
more channelsand M&A
Improve:- working capital
turns- balance sheet
- cash flow
Source for
more highmargin products
Invest in servicebusiness
More direct/indirect
investments inretail business
Broaden accessoriesproduct offerings
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DISCLAIMERS
The views expressed byECS Holdings Limited(the External Party) on the occasion of CIMB-GK Investment seminar: Taking Stock of Technology - The Worst is Over! are the personal viewsand opinions of the External Party (the External Partys Views) and in no way reflect the views,opinions, expressions or representations of CIMB-GK Securities Pte Ltd.
CIMB-GK has no, and will not accept any, obligation to check or ensure (i) the reliability, relevancyor fairness of the External Partys Views, or (ii) the accuracy or completeness of the ExternalPartys Views. Without prejudice to or derogating from the generality of the foregoing, no
representation or assurance is given by CIMB-GK Securities Pte Ltd that the External PartysViews contain all information that an investor may require. To the extent permitted by applicablelaw, CIMB-GK Securities Pte Ltd, or any of its affiliates, or its related persons (and their respectivedirectors, associates, connected persons and/or employees) shall not be liable in any mannerwhatsoever for any consequences (including but not limited to any direct, indirect or consequentiallosses, loss of profits and damages) arising from the reliance or use of the External Partys Views
Investors are advised to make their own independent evaluation of the External Partys Views,consider their own individual investment objectives, financial situation and particular needs andconsult their own professional and financial advisers as to the legal, business, financial, tax andother aspects as investors may regard as relevant.
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Thank You