Presentation on theme: "Investor Presentation"— Presentation transcript:
1 Investor Presentation Asia Pacific Wire & Cable Corp. LTDAPWCInvestor PresentationM a y
2 Safe Harbor StatementThis presentation may contain forward-looking statements concerning Asia Pacific Wire & Cable Corporation. The actual results may differ materially depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology or product techniques, and various other factors beyond its control.All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. Asia Pacific Wire & Cable Corporation undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this presentation.
3 Equity Snapshot and Key fn Metrics APWCPrice (5/1/13):$3.95Market capitalization:~$55 MDiluted shares outstanding:13.8 MTTM P/E:4.8xFY 2012 Revenues:$462.3 M ▼ 2.1%FY 2012 Gross Profit:$51.8 M ▲ 18.0%FY 2012 Net income:$10.9 M ▲ 301%FY 2012 Diluted EPS:$0.79 ▲ 302%Fiscal year ends:December 31** Company is an Foreign Private Issuer but files similar to a fully listed public company.
4 Investment Highlights Nasdaq-Listed since April 29, 2011Taiwan-based leader wire and cable manufacturer with sales in several Asian-Pacific marketsGrowing underlying market demand in the region and for APWCC products particularly for power and telecommunication cableBroad geographic coverage provides diversificationExperienced and knowledgeable in-house sales, service & technical teamFinancial performance including increased profitabilityStrong balance sheet, cash flow, and an attractive valuation
5 Global Industry Overview Wire & cable growth industry growth drivers include:Energy-related infrastructure spendingTelecom-related infrastructure spendingConstruction cyclesIndustrial activityLocal presence required to succeed:High transportation costsProducts need to meet regional and local specificationsHandling and logistics~ 80% of manufacturing cost attributable to raw materialsPass-through pricing generally utilized for long-term agreementsAbout one-half of business priced short cycle
6 Company Overview Founded in 1996 Headquartered in Taipei, Taiwan with subsidiaries in China, Thailand, Singapore and AustraliaCore business includes the manufacturing and distribution of wire and cable products throughout Asia Pacific including AustraliaAdditional services: distribution of a variety of 3rd party wire and cable product lines, project engineering of Supply, Delivery and Installation (SDI) services for power cablesTotal number of employees: ~1,413
8 Regional Locations and Facilities As of December 31, 2012Pacific Electric Wire & Cable (Shenzhen) Co., Ltd.Shanghai Yayang Electric Co., Ltd.Shandong Pacific Rubber Cable Co., Ltd.Shangdong HuaYu Fibre Optics CableCCH (Crown Century Holding) Hong KongNingbo Pacific Wire Co., Ltd.CHINA36025.0%Headquarters15THAILANDCharoong Thai Wire & Cable Public Co., Ltd.Siam Fiber Optics Co., Ltd.Siam Pacific Electric Wire & Cable Co., Ltd.39.1%810151SINGAPORE11.0%Sigma Cable Co., Pte Ltd.Sigma-Epan International Pte., Ltd.Factories/op unitsEmployee headcountPower cable77SDI project engineeringDistributed productsOthers:Distributed products of 11.9% include Singapore, Australia, and Thailand.TOTAL HEADCOUNT: ~1,413Fiber optic cableAUSTRALIAEnameled wire13.0%Australia Pacific Electric Cables Pty., Ltd.Electronic wire% Revenue contribution (2012)
9 APWC Subsidiaries’ Operations ChinaShanghai Yayang is a joint venture in Shanghai incorporated in June 1998, now 100% owned by APWC.Pacific Electric Wire & Cable (Shenzhen) was established in Shenzhen in DecNingbo Pacific Cable Co., Ltd. (PEWNC) re-constructed July , 2011, and began production in March, 2012.AustraliaAPEC Cables was founded in Brisbane, Australia in 1996, with a goal to become the one of the leading electrical supply companies in Australia.ThailandCharoong Thai is a publicly-traded Thai corporation listed on the Stock Exchange of Thailand (“SET”). It was established in Thailand in 1967.Siam Pacific was established in 1988 as a joint venture between PEWC and Italian-Thai Development Plc (“Ital-Thai”), a third party, which at the time was the largest diversified construction company in Thailand, now 100% owned by CTW.SingaporeSigma Cable was established in Singapore in June 1964.Project engineering team established in 1997 to undertake Supply, Deliver and Install turnkey projects to SP PowerAssets Limited ( A member of Singapore Power in transmission and distribution of electrical energy).
10 High Quality Enameled Wire Supply to Eastern and Southern China APWC in ChinaHigh Quality Enameled Wire Supply to Eastern and Southern ChinaTop CustomersToolmakers and appliances makersMining companiesProductsEnameled wireRubber cableElectronic wire
11 One of the Top-5 Cable Producers in Thailand APWC in ThailandOne of the Top-5 Cable Producers in ThailandTop CustomersLocal electric utilities companiesEngineering companiesContractorsTelecom carriersProductsTelecom cablePower cable (Al, Cu, LV, HV)Enameled wireFiber-optic cable
12 Leading Provider of Power Cable in Singapore APWC in SingaporeLeading Provider of Power Cable in SingaporeTop CustomersElectrical contractorsDistributorsPublic utilities BoardProductsPower cableSDI project engineeringDistributed products
13 APWC in Australia Leading provider of power and construction cables New opportunities for distribution due to free trade agreement ofsouth east Asian countriesTop CustomersContractorsDistribution CentersProductsLow-voltage power cablesConstruction cables
14 Growth and Expansion Strategies by Market ChinaTop growth opportunity for APWC over the next 10 to 15 yearsIncrease capacity to meet market demand and maximize economy scaleDrive marketing penetration into Shandong, Henan, Guangxi Sichuan, and Chongqing city, etc.Develop new products such as electronic wire and expand domestic marketAustraliaContinue upgrading production facilities to increase efficiency and capacityIncrease product portfolio through offering imported products such as fiber optic cableThailandDevelop new cable products for auto, solar or other types of alternative energy solutionForm a possible new subsidiary to meet local minimum standardsUpgrade and expand facilities for new government projectsSingaporeRe-introduce Sigma's products to Southeast Asian markets such as Vietnam and BruneiExplore new contractors/partners in China for incremental business opportunities
15 Competitive Advantages Reliable product supply and distributionSuperior product quality and performanceExcellent customer service and knowledgeable sales and technical teamHistorical long presence in key local marketsCompetitive LandscapeCompetitors include both independent domestic and foreign suppliersLocal competitors have advantages in sales, R&D spending or financial resourcesGlobal competitors include Draka, Furukawa, Nexans, Prysmian, etc.
16 History of Revenue Growth Growth Phase 1Growth Phase 2
19 Summary Income Statement Year 12/31 (USD '000)201020112012Total Sales$446,594a$471,946a$462,265Cost of Sales(389,571)(428,051)(410,450)Gross Profit57,02343,89551,815Income from Operations28,6521,88423,593bIncome Before Tax31,83263627,293Income (Loss) before taxes attributable to APWC20,024(2,447)16,607Income Taxes Expense attributable to APWC(5,884)(2,992)(5,658)Net Income (Loss) attributable to APWC14,140(5,439)10,949Basic and Diluted Income (Loss) per Share (USD)$1.02$(0.39)$0.79a. For 2008 through to 2011, income statements are restated to reflect SPFO operations being disposed of and excluded but grouped under Discontinued Operationsb. SP recognizes other income of Thai Baht million (US$ 4,762K) from settlement of flood loss.
20 Summary Balance Sheet As of (USD ‘000) 12/31/2010 12/31/2011 12/31/2012Cash and Cash Equivalents$63,217$76,672$72,816Current Assets329,461288,697330,208Other Assets57,46248,59259,176TOTAL ASSETS386,923337,289389,384Bank Loans and Trust Receipts67,35152,81357,845Current Liabilities158,808117,741146,494Other Liabilities2,4034,8598,279Total Liabilities161,211122,600154,773Total Shareholders’ Equity225,712214,689234,611TOTAL LIABS and SHS’ EQUITYNet Book Value Per Share11.0810.5911.69
22 Summary Cash Flow As of (USD ‘000) 2010 2011 2012 Operating Activities (2,636)22,62411,648Investing Activities(6,448)(13,904)(15,755)Financing Activities26,4135,621(62)Net Cash Flow21,68313,455(3,856)
23 CAPEX Summary As of (USD ‘000) 2010 2011 2012 Capital Expenditure CAPEX Purpose:Production machinery and equipment for the CTW group in Thailand and for Ningbo Pacific Cable Co., Ltd. (“NPC”) in Ningbo, China, as well as the addition of a new plant at Shenzhen for the Chinese domestic market.
24 Management Team Andy C.C. CHENG – Chairman of the Board Mr. Andy C.C. CHENG was a member of the company’s Board of Directors from 2004 to 2005 and was re-elected in From 1987 to 2003, Mr. Cheng was the Vice President of procurement and later Executive Vice President and Chairman of the Investment division, all served at PEWC. Mr. Cheng was elected Chairman of the Board of APWC in October 2009.Chun Tang YUAN – Chief Executive OfficerMr. Chun Tang YUAN also serves as Chairman of PEWC since 2004 and has been the Director of Pacific Construction Corp. Ltd since He served as the Director of Taiwan Co-generation Corp from 2005 to 2008. Mr. Yuan is also the Chairman of Taiwan Electric Wire and cable Industries Association since 2004. He has served as the Supervisor to Taipei Importers/Exporters Association as well as the Director of Chinese National Federation of Industries in Taiwan since 1998 and 2004 respectively.Frank TSENG – Chief Financial OfficerMr. Frank TSENG has served as CFO since October Before joining APWC, he was the deputy CFO for ABB Taiwan and, prior to that, the APAC regional controller for Phoenix Technologies, a Silicon Valley-based company that is publicly traded on NASDAQ. Mr. Tseng holds a Masters Degree of Accountancy from Georgia State University. He is also a CPA by the State of Illinois.William GONG – Chief Operating OfficerMr. William Gong has been appointed Chief Operating Officer effective April 1, He was first assigned to Charoong Thai Wire and Cable Pte. Co. Ltd. as Engineer, Assistant Plant Manager, and later consultant to high voltage cable division from 1991 to In April 2009 he was promoted General Manager of Sigma Cable in Singapore. Mr. Gong Wei holds a master’s degree from Asian Institute of Technology in Bangkok, Thailand.Daphne HSU – Financial ControllerMs. Daphne HSU has been Financial Controller of the Company since March of 2005, prior to which she served as Financial Controller for ten years in Taiwan and China at a Thomson SA joint venture. Daphne graduated from National of Taipei College of Business with a major in accounting.
25 Contact Us Contact Us Company Frank Tseng, CFO Phone: +886 (2) x66AuditorErnst&Young TaiwanTWTC International Trade Building9F, 333, Keelung Road, Sec. 1TaipeiPhone:Investor RelationsJohn Mattio, SVP – MZ GroupMain: Direct:LegalFox Horan & Camerini Michael Hagan - PartnerMain: Direct: