Steering aheadstamfordtyres.listedcompany.com/misc/Stamford_Tyres_FY...Investor Relations Contacts:...
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Steering ahead FY2012 Results Briefing 22 nd June 2012
Transcript of Steering aheadstamfordtyres.listedcompany.com/misc/Stamford_Tyres_FY...Investor Relations Contacts:...
Steering ahead FY2012 Results Briefing22nd 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
Overseas
DistributionNetwork
Retail
Network (tyres
for
passenger cars,
wheels, car
services &
accessories)
Commercial Tyres
and Services(Truck and Off
the Road “OTR”
tyre
management
services)
Distribution
SSWAlloy Wheel
(Manufacturing)
ProprietaryBrand Tyres(passenger
car radial,
light truck,
truck bus
radial)
Manufacturing
25 Retail Outlets
in South East
Asia
2 Truck Centers3 Contract
Customer
Workshops7 Mobile Fleet
Service Vehicles
Retread of Truck
and OTR Tyres
Central
warehousing
and
distribution in
9 countries
Export to
over 90
countries
25
Stamford Retail
Outlets
2
Truck Centers3
Contract Customer Workshops7
Mobile Fleet Service
Vehicles
DISTRIBUTION VALUE CHAIN
Over 4,000 3rd
Party Retail Outlets
Proprietary Brands
Distribution Centres
Major Brands
92% of revenue derived from distribution
OVERSEAS DISTRIBUTION NETWORK• Links to 4,000 dealers/retailers across 9 countries
Thailand China AustraliaIndia
South
Africa Hong KongIndonesiaSingaporeMalaysia
LOCAL PRESENCESingapore Malaysia Thailand
South Africa
Indonesia China
IndiaAustralia
Hong Kong
SOLE DISTRIBUTION AREAS OF MAJOR BRANDS
Brands Countries
Falken
Singapore, Malaysia, Thailand, Indonesia, China, South Africa,
Mauritius, Brunei, Vietnam, Cambodia, Myanmar and India
Continental Singapore
Dunlop Hong Kong, Macau, Indochina through Tyre Pacific HK
Toyo OTR and Truck
Singapore, Malaysia, Thailand, Indonesia, China, South Africa,
Mauritius, Brunei, Vietnam, Cambodia, Myanmar and India
Dunlop Hong Kong, Macau, Indochina through Tyre Pacific HK
Falken
Singapore, Malaysia, Thailand, Indonesia, China, South Africa,
Mauritius, Brunei, Vietnam, Cambodia, Myanmar and India
East Timor, Nepal, New Caledonia, Southern Africa
Dunlop Hong Kong, Macau, Indochina through Tyre Pacific HK
Falken
Dunlop
Continental Singapore
Toyo OTR and Truck 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
296.9 310.2341.4
364.1
22.7%
21.4%
23.3%
22.1%
20.0%
20.5%
21.0%
21.5%
22.0%
22.5%
23.0%
23.5%
0
50
100
150
200
250
300
350
400
FY2009 FY2010 FY2011 FY2012Revenue
S$’mln
CAGR of 7.0%
OVERSEAS EXPANSION
• Growth in all key markets
Turnover by geographical
segment
FY12 FY11 Change
(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 364,074 100.0 341,356 100.0 6.7
FOREX MANAGEMENT
‐5.8
2.3
‐1.2
‐2.9
‐7.0
‐6.0
‐5.0
‐4.0
‐3.0
‐2.0
‐1.0
0.0
1.0
2.0
3.0
FY2009 FY2010 FY2011 FY2012
S$’mln
FOREX MANAGEMENT
AVE FX RATE ZAR
FY10 5.38
FY11 5.40
FY12 6.01
5.000
5.200
5.400
5.600
5.800
6.000
6.200
6.400
6.600
May '10 Aug '10 Nov '10 Feb '11 May '11 Aug '11 Nov '11 Feb '12
SGDZAR 2010/11 - 2011/12
SGDZAR 2010/11 ‐2011/12
FOREX MANAGEMENT
To reduce Forex impact to Profit and Loss for South Africa, the Group is taking two steps:
Increase equity in South Africa to reduce foreign currency denominated payables
Increase local bank borrowings to reduce foreign currency denominated payables
GROUP’S NET PROFIT
1.1
9.5
13.4
9.8
0.4%
3.1%
3.9%
2.7%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
FY2009 FY2010 FY2011 FY2012
S$’mlnNet Profit & Margin
FINANCIAL RATIOS
*Payables consists of trust receipts and short-term revolving loans
0.86
Receivables Turnover 96 days 86 days
120 days
Cash Conversion Cycle 104 days 99 days
1.45
Net Gearing (X) 1.12
FY11 FY12
150 days
Current Ratio 1.42
Payables* Turnover
133 days Inventory Turnover 158 days
INCREASING VEHICLE OWNERSHIP IN SINGAPORE
Source: Land Transport Authority
799,373
851,336
894,682
925,518
945,829956,704
650,000
700,000
750,000
800,000
850,000
900,000
950,000
1,000,000
2006 2007 2008 2009 2010 2011
Passenger and Commercial Vehicles Population in Singapore
VEHICLE REGISTRATIONS IN MALAYSIA REMAINS STRONG
Source: Malaysia Automotive Association
536,905
605,156 600,123
138,544
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2009 2010 2011 2012 YTD MAR
New Passenger and Commercial Vehicles Registration
2012 Est: 615,000
INCREASING VEHICLE OWNERSHIP IN CHINA
13,645,010
18,061,90018,505,100
8,023,500
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
2009 2010 2011 YTD 2012 May
Sales of Passenger and Commercial Vehicles Population in China
Source: China Association of Automobile Manufacturers
2012 Est: 20,000,000
LOOKING BEYOND ASIA
Source: National Traffic Information System (eNaTIS)
Growing South Africa Vehicle Population
9,068,120
9,304,508
9,587,781
9,829,400
10,193,052
8,400,000
8,600,000
8,800,000
9,000,000
9,200,000
9,400,000
9,600,000
9,800,000
10,000,000
10,200,000
10,400,000
2007 2008 2009 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!Thank You!Investor Relations Contacts:Tel: +65 6438 2990Email: [email protected]
Corporate Contacts:19 Lok Yang Way,Jurong, Singapore 628635Tel: +65 6268 3111Fax: +65 6264 0148Email: [email protected]
