Corporate Presentation “Springboard to Growth in Asia Pacific’s Lubricants Industry”
2 Sponsor’s Statement This presentation has been prepared by United Global Limited (the “ Company” ) and its contents have been reviewed by the Company's sponsor (“ Sponsor ”) , SAC Advisors Private Limited, for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited (the " SGX-ST "). The Sponsor has not independently verified the contents of this presentation. The presentation has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this presentation, including the correctness of any of the statements or opinions made, or reports contained in this presentation. The contact person for the Sponsor is Ms. Lee Khai Yinn, at 1 Robinson Road #21-02 AIA Tower, Singapore 048542, telephone (65) 6532 3829. SAC Capital Private Limited is the parent company of SAC Advisors Private Limited.
Corporate Profile
4 Who We Are Established in Singapore since March 1999. Singapore-based independent lubricant manufacturer and trader. Distribution in over 30 countries, mainly in the APEC. Our in-house laboratory, with equipment to perform tests in accordance with the American Society for Testing Materials (ASTM) and the China GB Standards. An ISO9001-certified company, with a blending capacity of 44,000MT in Singapore and 80,000MT in Indonesia via our 95%-owned subsidiary PT Pacific Lubritama Indonesia. Specialist in automatic transmission fluids (“ ATF ”) with a comprehensive range of products catered to specific transmission needs.
5 Our Products
6 Awards and Certifications ISO 9001:2008 # BizSAFE level 3 #, CultureSAFE Lloyd’s Register Quality Assurance Limited Workplace Safety and Health Council Workplace safety of our lubricant blending Quality management system facility and in-house laboratory Society of Automotive Engineers (SAE)* EOLCS License Viscosity specifications American Petroleum Institute (API)* Lubricants products performance International Lubricants Standardisation and specifications Approval Committee (ILSAC)* Gear oils and crankcases performance European Automobile Manufacturers’ specifications Association (ACEA)* Lubricant products performance American Society for Testing Materials specifications (ASTM)* Testing method Japanese Engine Oil Standards Implementation Panel (JASO)* China GB Standards* Lubricant products performance Testing method specifications * We meet the standards/ specifications, or we are able to carry out tests with the standards set # We were awarded/ obtained these certifications
Competitive Strengths
8 Why Invest In Us? Profit After Tax (US$M) Established track record of growth and profitability 7.0 6.2 For more than 18 years, we have built a reputation for 5.6 6.0 reliable and responsive service in the lubricants industry. 5.0 3.4 4.0 3.3 Net profit after tax increased from US$3.3 million in 3.0 FY2013 to US$5.6 million in FY2016 (inclusion of IPO 2.0 expenses charged to P&L of US$0.6 million). 1.0 0.0 FY2013 FY2014 FY2015 FY2016 Quality products Quality management system at various stages of production to meet international standards. Tests standards set by the American Society for Testing Materials and China GB.
9 Why Invest In Us? Customised products and value-added services Able to customise products and production volume to cater to specific customers’ needs. Differentiation of product mix in accordance with the market positioning in the various countries. Value-added services – assist in certification processes, designing of packaging material, storage of lubricants, etc. Export-oriented business and wide global distribution Japan network Korea Russia China Extensive network of distributors covering more Congo Hong Kong Gabon Macau Ghana Taiwan Kenya than 30 countries. United Kingdom Australia Fiji Islands New Zealand Papua New Guinea More than 84.6% of our total revenue for FY2016 Bahrain Samoa Bangladesh Solomon Islands Cyprus Cambodia were derived from sales outside Singapore. India East Timor Iraq Indonesia Kazakhstan Malaysia Lebanon Myanmar Mauritius Philippines Pakistan Singapore Yemen Thailand Vietnam
10 Why Invest In Us? Strategic business cooperation Business cooperation with CNOOC and UNT Oil for greater access into China and Malaysia respectively. Well-established business relationships with our customers, distributors and suppliers More than 80% of revenue from FY2016 were from repeat customers. Long-standing relationships with suppliers and distributors.
11 Why Invest In Us? Strong presence in Indonesia via our subsidiary PLI 80,000MT annual blending capacity, 17,000MT storage tanks and jetty access to 12,000MT cargo capacity. Acquisition completed in July 2017. Committed, competent and experienced management team Extensive experience and knowledge of their respective fields in the lubricant and related industries.
Financial Highlights
13 Revenue and Net Profit (FY2013-16) Revenue (US$m) Profit After Tax (US$m) 140.0 7.0 6.2 118.7 120.0 6.0 5.6 102.1 99.9 100.0 5.0 91.5 80.0 4.0 3.4 3.3 60.0 3.0 40.0 2.0 20.0 1.0 0.0 0.0 FY2013 FY2014 FY2015 FY2016 FY2013 FY2014 FY2015 FY2016
14 Gross Profit Margin (FY2013-16) 24.2% 23.7% 17.8% 17.1% 5.4% 3.6% 3.3% 2.1% FY2013 FY2014 FY2015 FY2016 Manufacturing Trading
Business Developments
16 Business Developments December 2016 - United Oil entered into a 35%/65% shareholders agreement with its Taiwan distributor Jin Wei Chuang Co. Ltd to incorporate a JV in Taiwan to distribute lubricants of United Oil’s in-house brands in Taiwan and trading of third party lubricants. January 2017 - United Oil entered into a joint operation agreement with Lighthouse Enterprise, its lubricant distributor in Myanmar. United Oil will provide expertise and assist Lighthouse in promoting, marketing, distributing and selling specialised lubricant products in Myanmar for a three-year period.
17 Business Developments July 2017 - Acquired a 95% stake in PLI. PLI, with its 80,000MT annual blending capacity, 17,000MT storage tanks and jetty access, would strengthen the Group’s production capacity and export capabilities. July 2017 - Entered into MOU with M-TechX to explore setting up a JV to undertake mass production and commercialisation of nano-fibres in oil absorbents, undertake further R&D of the Technology for further commercialisation in the filter and ballast water sectors.
Thank You
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