2003 Interim Results Announcement 23 July 2003 2 Scope of - - PDF document

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2003 interim results announcement 23 july 2003
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2003 Interim Results Announcement 23 July 2003 2 Scope of - - PDF document

Dec 12, 2022 434 likes •555 views

1 2003 Interim Results Announcement 23 July 2003 2 Scope of Presentation Introduction Group Financial Highlights Business Segment Review & Outlook 1 3 Group Financial Highlights 4 Financial Highlights: P&L S$m 1H 2003

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2003 Interim Results Announcement 23 July 2003

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Scope of Presentation

Introduction Group Financial Highlights Business Segment Review & Outlook

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Group Financial Highlights

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Financial Highlights: P&L

S$m 1H 2003 1H 2002 % change Revenue 127.6 146.3

  • 13%

Operating Profit (Loss) (4.1) 5.3

  • 177%

Profit (Loss) before Tax & EI 9.3 27.5

  • 66%

PATMI before EI 8.9 15.8

  • 44%

PATMI 8.8 17.0

  • 48%

Earnings per share (cts) 1.6 2.9

  • 45%
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Financial Highlights: P&L (Segments)

Network Engrg Logistics Shipping Invest- ments * Total S$m 1H (03) 1H (03) 1H (03) 1H (03) 1H (03) Revenue 73.4 33.9 15.6 4.7 127.6 Operating Profit (Loss) (5.2) 3.4 1.8 (4.1) (4.1) Profit (Loss) before Tax & EI (4.4) 3.2 1.4 9.1 9.3 PATMI before EI (4.5) 5.9 1.3 6.1 8.9 PATMI (4.5) 5.6 1.3 6.4 8.8

* “Investments division” was previously known as “Telecoms division”

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Financial Highlights: Balance Sheet

S$m Jun-03 Dec-02 Jun-02 Shareholders' Funds 217.8 229.0 164.2 Net Debt 200.0 170.4 496.4 D/E Ratio (times) 0.9 0.7 3.0 ROE - annualised (%) 8.0 12.9 20.7

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Financial Highlights: Cash Flow

Cashflow from Operating Activities Operating Loss (4.1) Adjustments for non-cash items 8.6 Working capital changes (10.9) Net Interest expense and tax, etc (4.7) Restructuring expenses (2.1) Net cash used in Operating activities (13.2) Dividends received from investments 12.5 Acquisition of assets (5.3) Net cash from Investing activities 7.2 Dividends paid to shareholders & minorities (23.7) Free Cashflow (29.7)

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Business Segment Review & Outlook

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Network Engineering – Review of 1st Half

S$m 1H (03) 1H (02) Revenue 73.4 83.7 Operating Profit (Loss) (5.2) 9.2 Profit (Loss) before Tax & EI (4.4) 10.9 PATMI before EI (4.5) 4.2 PATMI (4.5) 5.0

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The telecommunications & IT industry continued to be

challenging:

  • Continued over-capacity and severe cut-backs in capital

expenditure.

  • Continued 3G rollout delays due to technical and commercial

issues.

Performance affected by:

  • Delays in projects already awarded.
  • Severe contraction of orders from a key customer.
  • Increased competition leading to margin erosion.

Network Engineering – Review of 1st Half

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Restructured the business:

  • Streamlined operations to reap greater efficiency: Consolidation of

wireless network deployment operations under Trisilco Folec to reduce operating cost base.

  • Right-sized operations to match the market environment.
  • Exited non-profitable markets and low margin activities.
  • Broadened our customer base in Europe through acquiring new

customers.

Network Engineering – Review of 1st Half

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Network Engineering – Outlook

Consolidation in telecommunications industry will continue. Significant network infrastructure rollout only expected to

commence from mid-2004.

  • 3G trials will continue but full-scale rollout not expected before 2004.

Telcos will seek incremental revenue through existing

networks by offering value-added services.

Telcos will continue to focus on Broadband access and IP

services.

Telcos will drive efficiencies through outsourcing.

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Logistics – Review of 1st Half

S$m 1H (03) 1H (02) Revenue 33.9 36.1 Operating Profit (Loss) 3.4 4.0 Profit (Loss) before Tax & EI 3.2 3.7 PATMI before EI 5.9 3.1 PATMI 5.6 3.1

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External environment was challenging:

  • Singapore business affected by economic slowdown.
  • Warehousing rates under severe pressure.
  • Operations in Foshan (China) and Hong Kong affected by SARS.

Logistics – Review of 1st Half

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Singapore business expected to continue to experience

margin pressure.

China / Hong Kong business is expected to increase in the

2nd half.

Focus will be to:

  • Divest warehouses to improve asset efficiency.
  • Expand business activities into the region.

Logistics – Outlook

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Shipping – Review of 1st Half

S$m 1H (03) 1H (02) Revenue 15.6 18.2 Operating Profit (Loss) 1.8 2.7 Profit (Loss) before Tax & EI 1.4 1.8 PATMI before EI 1.3 1.8 PATMI 1.3 1.8

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Ship-owning:

  • Charter rates improved with renewals at higher rates.

Vietnam Feeder:

  • Freight rates under pressure.
  • Operations facing greater competition with new entrants.

Shipping – Review of 1st Half

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Improving economic activity augurs well for charter rates. Vietnam Feeder volumes showing some improvement. Remain focused on divesting the ships.

Shipping – Outlook

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Investments – Review of 1st Half

S$m 1H (03) 1H (02) Revenue 4.7 8.3 Operating Profit (Loss) (4.1) (10.6) Profit (Loss) before Tax & EI 9.1 11.2 PATMI before EI 6.1 6.7 PATMI 6.4 7.2

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M1: profits improved by 20%. KT&T’s stake was reduced

from 35% to 14%, resulted in lower contribution of S$9.7m.

DataOne: reduced 1st Half losses to S$1.2m compared to

S$6.0m losses for 1st half 2002.

Netrust: reduced 1st Half losses to S$0.1m compared to

S$0.6m for 1st half 2002.

Remain focused on divesting these businesses.

Investments – Review

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External environment for Network Engineering is expected

to remain challenging.

Improvements in economic conditions will benefit logistics

  • perations, particularly in Foshan, China.

Charter rates for ships are firming. Investments division performance should improve as un-

profitable businesses are divested.

Conclusion

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