2004 Full-Year Results Briefing

Transcription

1 Venture Corporation Limited 2004 Full-Year Results Briefing 21 February 2005

2 FY04 Performance Review

3 Group Revenue S$million 3,500 FY04 vs. FY03 : 1% 3,170 3,194 3,000 2,367 2,500 2,000 1,431 1,500 1, FY4/21 Feb 05/slide 3

4 Revenue by Quarter S$million 4Q04 vs. 3Q04 : 25.2% 1, Q04 vs. 4Q03 : 15.7% , Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 FY4/21 Feb 05/slide 4

5 FY04 Revenue Analysis Flat revenue year-on on-year record 4Q revenue of S$1b; better than 3Q04 contribution from 1H04 : 43% contribution from 2H04 : 57% More balanced contribution from various product segments strong growth in networking & communications : from 8% to 19% healthy growth from test & measurement / automotive / medical / others : from 9% to 13% medical / others : from 9% to 13% printing & imaging, and computer peripherals & data storage : approximately 1/3 of total revenue each FY4/21 Feb 05/slide 5

6 Net Profit After Tax S$million FY04 vs. FY03 : 14% FY4/21 Feb 05/slide 6

7 FY04 Profit After Tax Analysis Larger proportion of high-volume business => lower margin Expenses incurred in preparation for new business introduction / new business transfer not recovered in time due to customer delays S$9m impact from weaker US$ against S$ S$6.4m specific provision for doubtful debt and inventory obsolescence Higher effective tax rate from 1.5% to 2.8% FY4/21 Feb 05/slide 7

8 Operations Review

9 Operations Highlights Expansion of customer base >10% increase in number of customers includes a number of European and Japanese customers engaged in both high-volume and high-mix business Strengthening of clusters increase in higher value-added added activities in Singapore greater customer interest in China; higher business volume from existing customers expansion of value chain activities in S. California expansion of fulfillment and R&D activities in Europe strengthening of high-mix (both high-volume and low-volume) business capabilities in Malaysia FY4/21 Feb 05/slide 9

10 Operations Highlights (cont d ) IT Infrastructure improvement Overall improvement in operation excellence Strengthening of customer relationships FY4/21 Feb 05/slide 10

11 FY04 Breakdown by Product Segments Total Revenue : S$3.19b Networking & Communications 19% Test & Measurement /Others* 13% Printing & Imaging 31% Computer Peripherals & Data Storage 37% FY03 (Total: S$3.17b) Computer Peripheral & Data Storage : 41% Printing & Imaging : 42% Networking & Communications : 8% Others* : 9% *includes medical & automotive products FY4/21 Feb 05/slide 11

12 Product Segment Analysis Networking & Communications 128% surge in revenue due to addition of new customers, and new volume business Test & Measurement / Automotive / Medical / Others 43% growth due to: - increase in higher value-added added activities in relation to instrumentation products - healthy growth momentum in demand for automotive products - addition of new customer in medical product segment FY4/21 Feb 05/slide 12

13 Product Segment Analysis (cont d ) Printing & Imaging (P&I) 17% decline - overall decrease in NPI activity for higher-end end P&I products, and lower demand for those in high volume category Computer Peripherals & Data Storage 17% decline - stable demand for low volume, high mix products, but weaker end-market demand for higher volume products FY4/21 Feb 05/slide 13

14 Summary of Other Ratios FY04 FY03 Change EPS (fully diluted) 77.3 cts 93.0 cts (17%) Net Assets per Share $ 5.96 $ % Shareholders Equity $ 1,570 m $ 1,341 m 17% Cash & Equivalents $ 602 m $ 770 m (22%) Long-Term Investments* $ 292 m $ 47 m 521% Capital Expenditure $ 53 m $ 36 m 47% * long-term investments includes approximately S$220m of fixed income instruments. FY4/21 Feb 05/slide 14

15 Proposed Dividend for FY04 (Tax exempt) FY4/21 Feb 05/slide 15

16 2005 Outlook

17 Outlook - General Outsourcing trend : towards end-to to-end solutions, high- mix business, larger portfolio of products Customers holding low channel inventory Strong Euro driving greater outsourcing interest from Europe Attractiveness of Southeast Asia viz-a-viz China rising cost of operation in China potential revaluation of renminbi political / economic climate FY4/21 Feb 05/slide 17

18 Outlook Venture (by Market Segment) Strong growth in customer base and new product introductions for networking & communications segment contribution from new customers / new products introduced towards end-04 expected to continue into 2005 Test & measurement and automotive products expected to enjoy sustained demand steady increase in market share good progress expected for medical product segment Many NPIs expected for computer peripherals & data storage, and printing & imaging product segments impact dependent on end market demand FY4/21 Feb 05/slide 18

19 Outlook - Venture Participating in larger portions of customers value chain with building up resources to do this Strengthening partnerships with customers closer partnership with customers / prospective customers as differentiating factor more resources distributed throughout the world to achieve this Greater collaboration with customers co-development activities co-investment Minimizing US currency exposure FY4/21 Feb 05/slide 19

20 Outlook - Venture Scale of operation has reach a new stage Infrastructure, organization, execution, technological expertise well in place Well-positioned to take advantage of any acquisition or market expansion opportunities FY4/21 Feb 05/slide 20

21 Venture Corporation Limited End of Presentation