about excelpoint technology limited ... - listed company

ABOUT EXCELPOINT TECHNOLOGY LIMITED

Excelpoint Technology Ltd is a design and development engineering solutions provider serving OEMs, CMs and sub-contractors in various industries including telecommunications, consumer electronics, industrial and instrumentation electronics, automotive, computers and computer peripherals.

OUR BUSINESS MODEL

Design & Development Services

Supply Chain Management

Value Added Distribution

Field Application Services

Distribution

We are the “Solutions Partner”; providing ”One-Stop Solution” to meet customer requirement. A value chain service from product concept, development, attain international approval, manufacturing; till door-step delivery.

ClientS/W

Develop-ment

H/W Develop-

ment

Proto Develop-

mentProduct Concept

Product Test & Qual

Pre/MassProduction

Mktg & Sales

After Sales

Our Design & Development Services

OUR ROLE IN THE CUSTOMER’S VALUE CHAIN

Exc

elpo

int V

alue

Cha

in Reference Design; Design Review, Services and Applications

Production Test Plan & Systems

Pre-testing International Type Approval & Qualifications

Turnkey Project Management

Development, Prototype, Mass Production & Logistics

Marketing & Sales

A REVIEW OF OUR Q2 PERFORMANCE

AN OPERATIONAL REVIEW OF Q2

BY BUSINESS SEGMENT

• DESIGN-IN

• DISTRIBUTION

BY PRODUCTS AND SERVICES

• GSM / TELECOMMUNICATION

• BLUE TOOTH SOLUTIONS

• OTHER SOLUTIONS

AN OPERATIONAL REVIEW OF Q2

BY GEOGRAPHIC LOCATIONS

• China

• Singapore

• Malaysia

• India

• Other Asian countries

OUR BUSINESS STRATEGY

DESIGN-IN

• Leverage and complement upon the strengths of our principal’s chipset solutions.

• Focus on our value add on creating new applications, cost down, and productization.

• Differentiate by controlling software embedded into our solutions.

OUR BUSINESS STRATEGY

DESIGN-IN

• Provide risk sharing models with low Non Recurring Engineering charges (NRE) to encourage customers to adopt our solutions.

• Develop innovative reference solutions to assist our customers to differentiate themselves from their competitors.

OUR GEOGRAPHIC REACH

Excelpoint has a network of 33 subsidiaries and representative offices located across the Asia Pacific.

EXCELPOINT’S GEOGRAPHIC FOOTPRINTS

SINGAPOREHeadquarter

MALAYSIA• Kuala Lumpur • Penang

THAILAND• Bangkok

PHILIPPINES• Manila

CHINA• Beijing• Chengdu• Xian • Nanjing• Qingdao• Shanghai • Xiamen• Shenzhen

• HONG KONG

INDIA• New Delhi• Mumbai • Prune • Hyderabad• Bangalore

AUSTRALIA• Sydney

OUR FINANCIAL PERFORMANCE

REVENUE(in S$'000)

145,626

287,455

128,332258,662

0100,000200,000300,000400,000500,000600,000

2003 Rev 2004 Rev

Q1 Q2

273,958

546,117

99.3%

NET PROFIT AFTER TAX (in S$'000)

1,499

5,915

4,355

58902000400060008000

1000012000

FY 2003 FY 2004

Q1 Q2

2,088

10,270

392%

NET PROFIT AFTER TAX MARGIN (%)

0.5

1

1.7

2.1

0

0.5

1

1.5

2

2.5

Q1 FY03 Q2 FY03 Q1FY04 Q2FY04

CORE BUSINESSES

• Design-in Services

• Distribution Services Distribution Services 36%*

Design-in Services 64%* * 2Q FY 2004 BY REVENUE

REVENUE BY BUSINESS ACTIVITY (in S$'000)

71,114

184,49774,512

102,958

0

100,000

200,000

300,000

Q2 2003 Q2 2004

Design-in Distribution

36%

64%

49%

51%

REVENUE BY GEOGRAPHIC LOCATIONSQ2 2004

Others3%

China 72%

India4%

M'sia5%

S'pore 16%

S'pore M'sia India China Others

6054 49 48

81

6455 60 50

4034

32

0102030405060708090

Debtors' T/O Creditors' T/O Inventory T/O

WORKING CAPITAL MANAGEMENT(Days)

2002 2003 Q1 FY2004 HY FY2004

CASH FLOW (S$ ‘000)

Q2 2004 HY2004• Operating cash flows before

reinvestment in working capital 8,503 15,243

• Net cash flows from/ (used in) operating activities 940 (5,482)

• Net cash flows used in investing activities (366) (660)

• Net cash flows from financing activities 31,993 64,436 (Includes $34 million from IPO proceeds)

• Cash & Cash equivalents at period end 78,878 78,878

KEY FINANCIAL HIGHLIGHTS

Revenue (S$m) 287.5 145.6 97.4 546.1 274.0 99.3

Op Profit (S$m) 8.3 2.4 241.6 14.7 4.0 271.7

PAT (S$m) 5.9 1.5 194.6 10.3 2.1 392.0

EPS (cents) * 1.24 0.43 187.5 2.15 0.6 258.2

ROE (%) 8.5 7.0 21.4 14.7 9.8 50.0

FY Q2-04 Q2-03 Var.(%) 1H-04 1H-03 Var.(%)

* For comparative purposes, EPS is calculated based on profit attributable to shareholders and the weighted average post-invitation share capital of 477,955,854 (Q2, 1H 2003: 347,971,200).

OUR ROAD MAP AHEAD

THE CHALLENGES

• The temporary impact of the soft landing in China.

• Improving margins.

• Upgrading the quality of our human capital.

• Expanding R&D solutions beyond telecommunication.

• Expansion into new markets.

PROSPECTS

• Penetration into remote areas of China e.g. JiangsuProvince and North Eastern Provinces for the GSM business.

• Contributions will come from new solutions that the Group has developed. There has been market interests in these solutions for example set up box, peripherals for GSM handsets, blue tooth, high end audio video etc.

• Enlarge market penetration e.g Middle East, Pakistan and South East Asia countries e.g. Vietnam.