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Asia Pacific Wire & Cable Corp. LTD APWC. Investor Presentation M a y 2 0 1 3. Safe Harbor Statement. - PowerPoint PPT Presentation
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Investor PresentationM a y 2 0 1 3
Asia Pacific Wire & Cable Corp. LTD
APWC
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Safe Harbor StatementSafe Harbor Statement
This 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.
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Equity Snapshot and Key Equity Snapshot and Key ffnn Metrics Metrics
APWC
Price (5/1/13): $3.95
Market capitalization: ~$55 M
Diluted shares outstanding: 13.8 M
TTM P/E: 4.8x
FY 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: $0.79 ▲ 302%
Fiscal year ends: December 31*
* Company is an Foreign Private Issuer but files similar to a fully listed public company.
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Investment HighlightsInvestment Highlights
• Nasdaq-Listed since April 29, 2011
• Taiwan-based leader wire and cable manufacturer with sales in several Asian-Pacific markets
• Growing underlying market demand in the region and for APWCC products particularly for power and telecommunication cable
• Broad geographic coverage provides diversification
• Experienced and knowledgeable in-house sales, service & technical team
• Financial performance including increased profitability
• Strong balance sheet, cash flow, and an attractive valuation
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Global Industry OverviewGlobal Industry Overview
Wire & cable growth industry growth drivers include:• Energy-related infrastructure spending• Telecom-related infrastructure spending• Construction cycles• Industrial activity
Local presence required to succeed:• High transportation costs• Products need to meet regional and local specifications• Handling and logistics
~ 80% of manufacturing cost attributable to raw materials• Pass-through pricing generally utilized for long-term agreements• About one-half of business priced short cycle
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Company OverviewCompany Overview
• Founded in 1996
• Headquartered in Taipei, Taiwan with subsidiaries in China, Thailand, Singapore and Australia
• Core business includes the manufacturing and distribution of wire and cable products throughout Asia Pacific including Australia
• Additional services: distribution of a variety of 3rd party wire and cable product lines, project engineering of Supply, Delivery and Installation (SDI) services for power cables
• Total number of employees: ~1,413
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Products and Services PortfolioProducts and Services Portfolio
Revenue ($ millions) Gross Margin
Products 2009 2010 2011 2012 2011 2012
Telecom Cable $26.0 $45.0 $28.5 $22.5 22.8% 26.2%
Power Cable 103.0 148.3 200.7 206.3 13.2% 16.6%
Enameled Wire 135.1 202.8 200.2 172.2 4.9% 2.6%
Distributed Products 28.1 26.9 25.5 54.8 11.6% 6.1%
SDI Project Engineering Services 34.0 23.6 17.0 6.5 0.3% -15.7%
Total $326.2 $446.6 $471.9 $462.3 9.3% 11.2%
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THAILAND
AUSTRALIA
CHINA
SINGAPORE
Headquarters
360
810
151
77
15
25.0%
39.1%
13.0%
11.0%
Regional Locations and Facilities Regional Locations and Facilities
Others: Distributed products of 11.9% include Singapore, Australia, and Thailand.
TOTAL HEADCOUNT: ~1,413
As of December 31, 2012
• Pacific Electric Wire & Cable (Shenzhen) Co., Ltd.• Shanghai Yayang Electric Co., Ltd.• Shandong Pacific Rubber Cable Co., Ltd.• Shangdong HuaYu Fibre Optics Cable• CCH (Crown Century Holding) Hong Kong• Ningbo Pacific Wire Co., Ltd.
• Charoong Thai Wire & Cable Public Co., Ltd.• Siam Fiber Optics Co., Ltd.• Siam Pacific Electric Wire & Cable Co., Ltd.
• Australia Pacific Electric Cables Pty., Ltd.
• Sigma Cable Co., Pte Ltd.• Sigma-Epan International Pte.,
Ltd.SDI project engineeringPower cable
Distributed productsFiber optic cableEnameled wire
Employee headcount
% Revenue contribution (2012)
Factories/op units
Electronic wire
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APWC Subsidiaries’ Operations APWC Subsidiaries’ Operations
China• Shanghai 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 Dec. 1995.• Ningbo Pacific Cable Co., Ltd. (PEWNC) re-constructed July , 2011, and began
production in March, 2012.
Australia• APEC Cables was founded in Brisbane, Australia in 1996, with a goal to become the
one of the leading electrical supply companies in Australia.
Thailand• Charoong 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.
Singapore• Sigma 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).
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APWC in ChinaAPWC in China
High Quality Enameled Wire Supply to Eastern and Southern China
Top Customers• Toolmakers and appliances makers• Mining companies
Products• Enameled wire• Rubber cable• Electronic wire
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APWC in ThailandAPWC in Thailand
One of the Top-5 Cable Producers in Thailand
Top Customers• Local electric utilities companies• Engineering companies• Contractors• Telecom carriers
Products• Telecom cable• Power cable (Al, Cu, LV, HV)• Enameled wire• Fiber-optic cable
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APWC in SingaporeAPWC in Singapore
Leading Provider of Power Cable in Singapore
Top Customers• Electrical contractors• Distributors• Public utilities Board
Products• Power cable • SDI project engineering• Distributed products
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APWC in Australia APWC in Australia
Leading provider of power and construction cables
New opportunities for distribution due to free trade agreement of south east Asian countries
Top Customers• Contractors• Distribution Centers
Products• Low-voltage power cables• Construction cables
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Growth and Expansion Strategies by MarketGrowth and Expansion Strategies by Market
China• Top growth opportunity for APWC over the next 10 to 15 years• Increase capacity to meet market demand and maximize economy scale• Drive marketing penetration into Shandong, Henan, Guangxi Sichuan, and Chongqing
city, etc.• Develop new products such as electronic wire and expand domestic market
Australia• Continue upgrading production facilities to increase efficiency and capacity• Increase product portfolio through offering imported products such as fiber optic cable
Thailand• Develop new cable products for auto, solar or other types of alternative
energy solution• Form a possible new subsidiary to meet local minimum standards• Upgrade and expand facilities for new government projects
Singapore• Re-introduce Sigma's products to Southeast Asian markets such as Vietnam and Brunei• Explore new contractors/partners in China for incremental business opportunities
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Competitive AdvantagesCompetitive Advantages
Competitive Advantages
•Reliable product supply and distribution
•Superior product quality and performance
•Excellent customer service and knowledgeable sales and technical team
•Historical long presence in key local markets
Competitive Landscape
•Competitors include both independent domestic and foreign suppliers
•Local competitors have advantages in sales, R&D spending or financial resources
•Global competitors include Draka, Furukawa, Nexans, Prysmian, etc.
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History of Revenue GrowthHistory of Revenue Growth
$192 $197$241
$211
$294$337
$468$511 $501
$327
$447$472 $462
$0
$100
$200
$300
$400
$500
$600
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
USD
mill
ion
CAGR = 8%
Growth Phase 1
Growth Phase 2
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Changes in Gross ProfitChanges in Gross Profit
0%
2%
4%
6%
8%
10%
12%
14%
-$10
$0
$10
$20
$30
$40
$50
$60
$70
2005 2006 2007 2008 2009 2010 2011 2012
USD
Milli
on
Gross Profit Inventory Adjustment Gross Margin
$36.6$57.3
$45.7
$35.9
$64.6 $57.0
$43.9
$51.8
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Changes in Net IncomeChanges in Net Income
($5.0)
$13.0
$4.8
($13.6)
$10.1
$14.1
($5.4)
$10.9
(3%)
(2%)
(1%)
0%
1%
2%
3%
4%
($20)
($15)
($10)
($5)
$0
$5
$10
$15
2005 2006 2007 2008 2009 2010 2011 2012
USD
Mill
ion
Net Income Net Margin
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Summary Income StatementSummary Income Statement
a. For 2008 through to 2011, income statements are restated to reflect SPFO operations being disposed of and excluded but grouped under Discontinued Operations
b. SP recognizes other income of Thai Baht 147.9 million (US$ 4,762K) from settlement of flood loss.
Year 12/31 (USD '000) 2010 2011 2012
Total Sales $446,594a $471,946a $462,265
Cost of Sales (389,571) (428,051) (410,450)
Gross Profit 57,023 43,895 51,815
Income from Operations 28,652 1,884 23,593b
Income Before Tax 31,832 636 27,293
Income (Loss) before taxes attributable to APWC
20,024 (2,447) 16,607
Income Taxes Expense attributable to APWC
(5,884) (2,992) (5,658)
Net Income (Loss) attributable to APWC
14,140 (5,439) 10,949
Basic and Diluted Income (Loss) per Share (USD)
$1.02 $(0.39) $0.79
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Summary Balance SheetSummary Balance Sheet
As of (USD ‘000) 12/31/2010 12/31/2011 12/31/2012
Cash and Cash Equivalents $63,217 $76,672 $72,816
Current Assets 329,461 288,697 330,208
Other Assets 57,462 48,592 59,176
TOTAL ASSETS 386,923 337,289 389,384
Bank Loans and Trust Receipts 67,351 52,813 57,845
Current Liabilities 158,808 117,741 146,494
Other Liabilities 2,403 4,859 8,279
Total Liabilities 161,211 122,600 154,773
Total Shareholders’ Equity 225,712 214,689 234,611
TOTAL LIABS and SHS’ EQUITY 386,923 337,289 389,384
Net Book Value Per Share 11.08 10.59 11.69
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Country Revenue and GP AnalysisCountry Revenue and GP Analysis
$186.0
$52.4$58.9
$132.2
$25.5 $17.0
$180.9
$44.6$60.0
$115.5
$54.8
$6.4
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
Thailand Singapore Australia China Distributed SDI
Revenue ($Mil.)
2011 2012
$21.5
$4.5
$11.0
$5.8
$3.0$0.0
$21.6
$5.0
$13.7
$4.5 $3.4
-$0.1
-$5
$0
$5
$10
$15
$20
$25
Thailand Singapore Australia China Distributed SDI
Gross Profit ($Mil.)
20112 2012
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Summary Cash FlowSummary Cash Flow
As of (USD ‘000) 2010 2011 2012
Operating Activities (2,636) 22,624 11,648
Investing Activities (6,448) (13,904) (15,755)
Financing Activities 26,413 5,621 (62)
Net Cash Flow 21,683 13,455 (3,856)
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CAPEX SummaryCAPEX Summary
As of (USD ‘000) 2010 2011 2012
Capital Expenditure $3.7M $8.9M $10.1M
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.
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Management TeamManagement Team
Andy C.C. CHENG – Chairman of the BoardMr. Andy C.C. CHENG was a member of the company’s Board of Directors from 2004 to 2005 and was re-elected in 2007. 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 2002. 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 2009. 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, 2013. 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 2000. 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.
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Contact Us
CompanyFrank Tseng, CFOPhone: +886 (2) 2712 2558 [email protected]
AuditorErnst&Young TaiwanTWTC International Trade Building9F, 333, Keelung Road, Sec. 1TaipeiPhone: +886 2 2757 8888
Investor RelationsJohn Mattio, SVP – MZ GroupMain: 212-301-7130Direct: [email protected] www.mzgroup.us
Legal Fox Horan & CameriniMichael Hagan - PartnerMain: 212-480-4800Direct: [email protected]
Contact UsContact Us