corporate presentation to kimengjan10[1]

8/8/2019 Corporate Presentation to KimengJan10[1]

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...Technology is a toolpeople make the difference...

Corporate Presentation


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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



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Partnering with the best

Corporate Overview1

MAJOR VENDORS



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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



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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



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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.



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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 &notebooks and lower operatingexpenses as % of sales

Up51.9%


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15

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


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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18

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


(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


(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


(

S$'millions)

Revenue PBIT

19

Up 4.6% y-o-y, due to higher sales for

networking and storage


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


(S$millions)

19.0

23.0

15.0

16.0

17.018.0

19.0

20.0

21.0

22.0

23.0


(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

corporate presentation to kimengjan10[1]

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